Professional Documents
Culture Documents
8-
The trustee may generally confirm bond transactions directly. The trustee's response
should include a complete description of the bonds, including maturity dates and
interest rates; bonds that were retired, purchased for the Treasury, or converted into
stock during the year; bonds that were outstanding at the balance sheet date; and
sinking fund transactions and balances.
Exercise 2
C
Pine, Inc.
Obligation under Capital Leases, 2006
December 31, 2006
D
Audit adjustments:
(1)
Lease Property 3,467,215
Interest Expense 307,869
Obligation under Capital Lease 3,325,084
Rent Expense 450,000
(2)
Depreciation Expense 346,721
Accumulated Depreciation 346,721
(3)
Interest Expense 99,753
Interest Payable 99,753
Exercise 5
C-
(c) December 31, 20x6
Cash 80,000
The reason why we debit the asset retirement obligation is that we paid for the liability with
the estimate we have for the cost of dismantling the depot but the actual amount of cost
exceed the amount we estimated so we will also recognize a cost
Problem 2
C - Determine that the restriction is properly disclosed in the financial statement notes
D - Vouch president and vice president salaries. Determine that any such payments in sum
do not exceed the total
Problem4
D- H, Treasury Stock