FAR 5 Questions

Under the book value method of exchanging converible bonds for stock the book value of the bonds is reallocated tothe par value and the additional paid in capital accounts of the common stock.  Thus stockholders equity is ---------------------.

Under the ------------------------- of exchanging converible bonds for stock the book value of the bonds is reallocated tothe par value and the additional paid in capital accounts of the common stock.  Thus stockholders equity is increased.

Under the book value method of exchanging converible bonds for stock the book value of the bonds is ---------------------- tothe par value and the additional paid in capital accounts of the common stock.  Thus stockholders equity is increased.

on march 31 ashley inc bondholders exchanged their converible bonds for  common stock.  The carrying amount of these bonds on ashleys books was less then the markdet value but greater than the par value of the common stock issued.  If ashley used the book value method of accounting for the conversion, what was the effect?

Bond issue cost are recorded as ------------ charges over the life of the related debt.

Bond issue cost are recorded as defferred charges over the ------- of the related debt.

Bond issue cost are recorded as defferred charges over the life of the related ------.

When purchasing a bond the present value of the bonds expected net future cash inflows discounted at the market rate of interest provides what information about the bond

Current maturites of long term debt in the balance sheet should include amounts ------------------------ within 12 months of the balance sheet date

Current maturites of long term debt in the balance sheet should include amounts due and payable within ---------------- of the balance sheet date

When using a new bond to retire an old bond, the long term liabilities will ------------ by the differance between the old bond and the newer bond.

When using a new bond to retire an old bond, the --------------------------- will increase by the differance between the old bond and the newer bond.

operating lease payments to a lessor that should be deferred include --------------------, -----------------------, and the unamortized potion of ---------------------------- to the lessor for leasehold modifications.

US GAAP -- any profit or loss o a sale/leaseback classified as a ---------------- shall be deferred and amortized in proportion to depreciation taken on the leased back asset.