At the beginning of the current year, ABC Corporation issued 6,000, 5-year bonds, face value 1,000 each at 105. The bonds has a conversion privilege that provides for an exchange of a 1,000 bond for 20 shares of capital, par 50. Without such conversion privilege, the bonds would only sell at 98. Prepare the entries in connection with the issuance of the bonds and the conversion of the bonds at the end of the current year. U :=
Q: 1.How much is the carrying amount of property, plant and equipment as of December 31, 2020? a.…
A: Depreciation Methods: Straight Line Method: Under this method of depreciation, same amount of…
Q: erty and paid no W
A: The QBI deduction is only accessible to owners of pass-through firms, even if you choose the…
Q: On January 1, 2020, Billy Company sold equipment that originally cost $5,000,000 to Selecta Company.…
A:
Q: A wastewater treatment facility is planning to purchase a new sludge dryer equipment to replace its…
A:
Q: The condensed financial statements of Carla Vista Co. for the years 2021 and 2022 are presented…
A: The question is related to the Ratio Analysis. Ratio is the indicated quotient of two mathematical…
Q: On January 2, 2017, RM Company purchased equipment costing P1,500,000. The estimated useful life of…
A: Depreciation per annum of old machinery = (P1500000-P50000)/8. = P181250 per annum Depreciation for…
Q: Identifying Operating Income Componehts Following is the income statement information from Apollo…
A: Operating components in the financial statements are those which occurs for the concerned business…
Q: Department A had 4,100 units in Work in Process that were 69% completed at the beginning of the…
A: Solution... Units completed and transferred out = Beginning inventory + units started in -…
Q: the sole proprietor of a consulting busines ting business and 6 days vacationing. His - fare dging…
A: If we have partly business expenses along with personal expenses , then divide the total cost…
Q: On January 1, 2021, Aston Inc. has a Class 8 UCC balance of $800,000. During 2021, additional Class…
A: UCC: UCC stands for undepreciated cost of capital which means the capital cost remains for further…
Q: PROBLEMS ON COMPANY FINAL ACCOUNTS Premier Co. Ltd has an authorised capital of P 6,00,000 in equity…
A: The term balance sheet refers to a financial statement that reports a company's assets, liabilities,…
Q: On August 1, a firm assigned $220,000 of its $580,000 of accounts receivable. The finance company…
A:
Q: Venture capital (VC) firms are pools of private capital that typically invest in small, fast-growing…
A: Ownership Business- The state of owning something, possession of something, and the right to own…
Q: ard machine-hours (MHs). The company has provided the following data for the most recent month:
A: The total cost of production of a good comprises of the total fixed cost of production and the total…
Q: Zigwell Manufacturing spent an average of $18 per order to issue 30,000 purchase orders last year.…
A: Formula for total purchasing cost Average cost per order × Number of orders
Q: ABC Company operates a production process to convert a single material into three separate items,…
A: The net realizable value approach is a method to allocate joint cost. Under this approach, the joint…
Q: On March 15, 2022, Red Company issue financial statements. Its fiscal year ends December 31, 2021.…
A: Red Company Bonds issued after the balance sheet is a common occurrence that requires no disclosure…
Q: 1 Record the above four transactions in general journal. 3.2. Define marketable securities. What…
A: Marketable securities are those securities which are the financial securities or instruments which…
Q: A vendor specializing in outdoor gear offers customers three ways to place orders for home delivery.…
A: Given Information: Of the total, one half i.e., 1/2 orders are made online. One quarter i.e., 1/4…
Q: On January 1, 2021, Apollo Company acquired P4,000,000 of 12% face amount bonds for P3,767,000 to be…
A: Bonds are the financial securities issued in order to raise funds from the market.
Q: The following is the Summarised balance sheet of carol co. Itd as at 31.12.2004. Liabilities Amount…
A: The term balance sheet refers to a financial statement that reports a company's assets, liabilities,…
Q: Units Setups Inspections Assembly (dlh) mall table lamps 3,800 3,700 8,250 42,400 esk lamps 7,800…
A: In every organization, there are indirect overheads, which are not directly attributable to any…
Q: Aila Company has cash sales of P2,500,000 and net sales of P3,450,000, total assets of P1,240,000…
A: Times interest ratio is one of the solvency ratios and measures whether a company will be able to…
Q: Mr. and Mrs. Lapigo, made the following donations during 2022: Date: Feb 14 Particulars: Land…
A: In Florida, There are buyers and sellers of real estate , who are familiar of documentary stamp tax…
Q: hourly
A: In this question, we have to find out the hourly production rate and numbers of workers required .
Q: Great (Pty) Ltd started off producing a single product, called 'A' Price and cost details per unit…
A: Variable costs are costs which changes with change in activity level. Fixed costs do not change with…
Q: Department A had 4,600 units in work in process that were 80% completed as to labor and overhead at…
A: Beginning inventory: No material was applied on the beginning inventory because it was 100% complete…
Q: NSF Lube is a fast-growing chain of oil-change stores. The following data are available for last…
A: Cost Variance- Cost variance is the procedure of evaluating the fiscal performance of your task.…
Q: A notice of levy which is ISsued four years afte ssment is validation of the bureau.
A: A taxpayer refers to a person or institution or business who is obliged to pay taxes to the federal,…
Q: The performance of the company and individual stores in June 2018 is typical of average monthly…
A: Variable costs are those costs which changes with change in activity level. Contribution margin is…
Q: The Schitt Company borrowed $900 on January 1, 2020 at an annual rate of interest of eight percent.…
A: Interest Expense - Interest Expense is the amount payable on the borrowed money. It is the expense…
Q: Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to…
A: Total administrative expense = Salaries + Insurance + Depreciation + Accounting services
Q: DDD Corporation, a domestic manufacturing corporation, had gross sales of P100,000,000 for fiscal…
A: Net Income is the calculation of the measure of profitability of the business. This is calculated by…
Q: Which of the following statements is incorrect with respect to the ethical branch of stakeholder…
A: Stakeholder theory is the theory which states how well an organization can do better in their…
Q: The following is the Balance Sheet of Lila Ltd. as on .31.12.2814. Amount ($) Assets Amount ($)…
A: The term balance sheet refers to a financial statement that reports a company's assets, liabilities,…
Q: If a retiring partner agrees to withdraw less than the book value of his/her interest, the effect of…
A: Solution: If a retiring partner agrees to withdraw less than the book value of his/her interest, it…
Q: Facts for Questions 19-21 Gould Beverages Company ("GBC") began the month of March with 600 cases of…
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…
Q: Direct Materials Purchases Budget: Direct Labor Budget Crescent Company produces stuffed toy…
A: Calculation of Desired ending inventory October: Ending inventory of October = (units to be produced…
Q: e following balance sheet is for X Company: Balance Sheet January 1, 2021 Assets Equities Cash…
A: Assets include the tangible and intangible rights of a business enterprise which is carried the…
Q: Below are accounts were taken from the books of Enrique Hill Cross School Security Services for…
A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…
Q: Concord, Inc. is unsure of whether to sell its product assembled or unassembled. The unit cost of…
A: Given information, •Un-assembled product: Cost= $13 Selling price= $54 •Assembled product:…
Q: 19,000, would have a useful life o at the investment has been in ope 11 years (including the year…
A: NPV= present value of cash flow- Intial Investment when the NPV is greater than $ 0 , accept the…
Q: Which of the following would be the best choice for CFC to do to raise the money it needs?
A: As per our protocol we provide solution to only one question if in case of multiple questions and…
Q: Presenting EPS in Financial Statements Lee Corp. had 120,000 weighted-average common shares…
A: GIVEN Presenting EPS in Financial Statements Lee Corp. had 120,000 weighted average common shares…
Q: A small coffee shop currently offers a cup of cafe latte for P109. The variable costs are P60 per…
A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…
Q: Which of the following statements is true? a debit to at least one T-account and a credit to (A)…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Edward is married and files a joint return. He reports the following items of income and loss for…
A: The annual gross income of the company is the income before deducting any deduction. This income is…
Q: 1) PEI Distributors purchases inventory in crates of merchandise. Assume the company began July with…
A: 1. FIFO Method - Under FIFO Method, Inventory purchased first is sold first.
Q: Questlon 5. Orange, Inc. is a corporation listed on the New York Stock Exchange (NYSE). Which of the…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Aballa and baligod agreed to admit cabasag to their partnership. Cabasag will purchase one-half of…
A: Partnership is a form of arrangement between two or more than two persons, in which they invest…
Step by step
Solved in 2 steps
- On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What is the total amount of interest expense over the life of the bonds?On July 2, 2018, McGraw Corporation issued 500,000 of convertible bonds. Each 1,000 bond could be converted into 20 shares of the companys 5 par value stock. On July 3, 2020, when the bonds had an unamortized discount of 7,400 and the market value of the McGraw shares was 52 per share, all the bonds were converted into common stock. Required: 1. Prepare the journal entry to record the conversion of the bonds under (a) the book value method and (b) the market value method. 2. Compute the companys debt-to-equity ratio (total liabilities divided by total shareholders equity, as described in Chapter 6) under each alternative. Assume the companys other liabilities are 2 million and shareholders equity before the conversion is 3 million. 3. Assume the company uses IFRS and issued the bonds for 487,500 on July 2, 2018. On this date, it determined that the fair value of each bond was 930 and the fair value of the conversion option was 45 per bond. Prepare the journal entry to record the issuance of the bonds.
- On January 1, 2022, Lenore Corp. purchased $400,000 of 6% bonds for $427,750, which they are classifying as available for sale. Interest is payable annually on December 31. The bonds mature on December 31, 2024. Premium or discount amortization is recorded when interest is received by the straight-line method. The market value of the bonds at December 31, 2022 is 424,000. Required: Prepare the entry to record the acquisition on January 1, 2022. Prepare the entry to record the December 31, 2022 interest payment. Prepare the entry to adjust the investment to fair value at December 31, 2022. The bonds are sold on January 1, 2023 for 430,000. Prepare any entries necessary to record the sale.Presented below are two independent situations.(a) Waterway Co. sold $1,950,000 of 12%, 10-year bonds at 106 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Waterway uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020. (Round answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded $ (b) Wildhorse Inc. issued $570,000 of 9%, 10-year bonds on June 30, 2020, for $471,929. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Wildhorse uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded $Swiss Inc. sold 20-year bonds with a total face amount of $401,000 and a stated rate of 7.5%. The bonds sold for $425,000 on January 1, 2024, and pay interest semiannually on June 30 and December 31. Required: 1. Prepare the entry to recognize the sale of the bonds. If an amount box does not require an entry, leave it blank. 2024 Jan. 1 (Record issuance of bonds at premium.). 2. Determine the amount of the semiannual interest payment required by the bonds. Round your answer to the nearest whole dollar and use the same in subsequent calculations. 3. Prepare the journal entry made by Swiss at June 30, 2024, to recognize the interest expense and an interest payment. If an amount box does not require an entry, leave it blank. 2024 June 30 88 (Record interest expense.) 4. Determine the amount of interest expense for 2024. 5. Conceptual Connection: If Swiss issued bonds with a variable interest rate, would you expect the market rate of interest (i.e., yield) to increase, decrease, or stay…
- Presented below are two independent situations. (a) Pharoah Co. sold $1,890,000 of 12%, 10-year bonds at 105 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Pharoah uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020. (Round answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $ (b) Novak Inc. issued $570,000 of 9%, 10-year bonds on June 30, 2020, for $471,929. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Novak uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $On January 1, 20x6, SAM COMPANY. issued 3-year bonds with a face value of P3,000,000 for P2,850,756. The bonds carry an interest of 8% per year payable annually on December 31. On the date of issuance, the company incurred and paid commission to underwriters of P15,000. The bonds are to be properly classified as financial liabilities at fair value through profit or loss. On December 31, 20x6, the bonds are quoted at 103%. Assume that there are no changes due to credit risk. On January 1, 20x7, the bonds are retired at 104%. How much is the interest expense for 20x6?On October 1, Qilan Ltd. purchased 7% bonds with a face value of $1,000 for trading purposes, accounting for the investment at FV - NI. The bonds were priced at 1.044 to yield Qilan 6% and pay interest annually each October 1. Qilan has a December 31 year end, and at this date, the bonds' fair value was $1,055. Assuming Qilan applies IFRS, prepare Qilan's journal entries for (a) the purchase of the investment, (b) the December 31 interest accrual, and (c) the year - end fair value adjustmen Assuming Qilan applies ASPE, uses the effective interest method, and reports interest income separately, prepare Qilan's journal entries for (d) the December 31 interest accrual, and (e) the year-end fair value adjustment. Round amounts to two
- Tamarisk Ltd. issued a $1,076,000, 10-year bond dated January 1, 2023. The bond was sold at 98.8% interest was payable on the bond on January 1 and July 1 each year. The company's year-end was December 31, and Tamarisk followed ASPE, and chose to use the straight-line amortization method. Prepare the journal entries for the given dates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date || | | Account Titles and Explanation Debit Credit ||On January 1, 20x8, James Corporation issued $500,000, 10%, 5-year bonds, at 98. The bonds pay semiannual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a calendar year end. The journal entry on December 31, 20x8, would include which of the following? Select one: a. Credit to Bonds Interest Payable for $26,000 b. Credit to Bonds Interest Payable for $25,000 c. Debit to Discount on Bonds Payable for $25,000 d. Credit to Discount on Bonds Payable for $25,000Presented below are two independent situations.(a) Bramble Co. sold $1,930,000 of 12%, 10-year bonds at 106 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Bramble uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020. (Round answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded $ (b) Sunland Inc. issued $610,000 of 9%, 10-year bonds on June 30, 2020, for $505,047. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Sunland uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded $