Financial Accounting Guess Paper
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Q.No: 3
A) WBar Harbor Gas electric obtain authorization to issue 90 million face value of 10 % 20 years bonds. Dated may 1 2001/ interest payment dates were November 1, and may I issuance of the bonds did not take dates were November 1, and may 1. issuance of the bonds did not take place until august 1 2001. on this date all the bonds were sold at a price of 100 plus three months accrued interest.
Instructions:
Prepare the necessary entries in general form on:
a) august 1, 2001 to record the issuance of bonds.
b) November 1 2001 to record the first semi annual interest payment on the bond issue
c) December 1 2001 to accrue bond interest exp through the year end
d) May 1 2001 to record the sec semi annual interest payment
B) On 31 march B corporation received authorization to issue Rs 30 million of 12 % 30 years bonds, interest payment rates were 31 march and 30 September. The bonds were all issued at per on 30 april, one month after the interest date printed on the bonds.
a) prepare the journal entry at 30 april to record the sale of bonds
b) prepare the journal entry at 30 September, to record bond interest accrued since 30 september.
c) Discuss the issues related to bond financing.
Q.No: 4
A) Explain the application of international accounting standard in a specific public limited company.
B) Ahmed health center purchase special X ray machine for the operating room. The machine which cost Rs 147360 was expected to last tern years with an estimate residual value of Rs 1136. After two years of operation it become evident that the X ray machine would last a total of seven years. At that time estimated residual value would remain the same.
Required:
Calculate the deprecation under cash of the following independent assumptions before and after the decision.
? Straight line deprecation method used.
? Double declining balance method used
? Sum of year digit method used
