3. Keeper Co. has the following liabilities on De Trade and other payables 2,000,000 6,000,000 Note payable (issued 3 yrs. ago, maturing on Dec. 31, 20x2) Serial bonds payable (next annual principal installment of PS00,000 due July 1,20x2) 5,600,000 On February 28, 20x2, Keeper Co. entered into a non-cancelable agreement with the lender to refinance the note payable on a term basis, on readily determinable terms that have not yet been implemented. Keeper Co.'s 20x1 financial statements were authorized for issue on March 31, 20x2. What amount of current liabilities should Keeper Co. report in its 20x1 statement of financial position? a. 2,000,000 long- b. 2,800,000 c. 8,800,000 d. 13,600,000

3. Keeper Co. has the following liabilities on De Trade and other payables 2,000,000 6,000,000 Note payable (issued 3 yrs. ago, maturing on Dec. 31, 20x2) Serial bonds payable (next annual principal installment of PS00,000 due July 1,20x2) 5,600,000 On February 28, 20x2, Keeper Co. entered into a non-cancelable agreement with the lender to refinance the note payable on a term basis, on readily determinable terms that have not yet been implemented. Keeper Co.'s 20x1 financial statements were authorized for issue on March 31, 20x2. What amount of current liabilities should Keeper Co. report in its 20x1 statement of financial position? a. 2,000,000 long- b. 2,800,000 c. 8,800,000 d. 13,600,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sheridan Corporation retires its $540000 face value bonds at 104 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $560223. The entry to record the redemption will include a O debit of $1377 to Loss on Bond Redemption. O credit of $21627 to Premium on Bonds Payable. O debit of $21600 to Premium on Bonds Payable. O credit of $1377 to Loss on Bond Redemption.
On Janury 1, 20x1, an entity issues bonds with face amount of P8,000,000 for P8,600,000. The bonds mature on December 31, 20x4 and pay annual interest of 11% every December 31. The entity incurs transactions costs of P81,645. The effective interest rate adjusted for transaction costs is 9%. Requirement: Prepare all the journal entries during the term of the bonds. Other Given values: Initial carrying amount of bonds = P8,518,355 Net premium from the issuance on initial recognition = P518,355 Periodic interest payment = P880,000 periodic interest expense = P766,382
N6. Account
Lewis Corporation issued $520,000 of 7%, 10-year bonds payable at a price of 93. The market interest rate at the date of issuance was 8%, and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the effective-interest amortization method is OA OB. O C. Date Date Date Accounts and Explanation Interest Expense Discount on Bonds Payable Cash Accounts and Explanation Interest Expense Discount on Bonds Payable Cash Cach Accounts and Explanation Interest Expense Discount on Bonds Payable Debit 21,944 Debit 23,348 Debit 20,748 Credit 1,144 20,800 Credit 2,548 20,800 Credit 2,548 18 200 4 Next
On January 1, $834,000, 5-year, 10% bonds, were issued for $808,980. Interest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, what is the semiannual amortization amount? Select the correct answer. $5,004 $2,502 $41,700 O $25,020
On January 1, $954,000, 5-year, 10% bonds, were issued for $925,380. Interest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, what is the semiannual amortization amount? Select the correct answer. $47,700 $5,724 $28,620 $2,862
15. On Januory 1,2020, Auro Compony purchased bonds with foce voue of P5,000000 for P4,766000. the stated rate on the bonds is 10% but the bonds are aCcuired to yield 12%. The bonds mature of the rote of P1.000,000 annuoly every December 31 and the interest is payable annually also every December 31. The entity uses the effective interestmethod of omortizing disCount. Aura Compony shouid report the held to maturity bond investment on December 31,2020 at a. 4,766,000 b. 3694080 C. 4,837,920. d. 3837,920
Bee Inc. issues P 3,000,000, 9%, bonds for P 2,817,000. The market interest rate for these bonds is 10%. Interest is payable annually on December 31. The company uses effective-interest method in amortization. At the end of the second year, Bee, Inc should report unamortized bond discount of:a. P 164,700b. P 171,300c. P 158,430d. P 154,830
On the first day of the fiscal year, a company issues a $621,000, 11%, 10-year bond that pays semiannual interest of $34,155 ($621,000 × 11% × 1/2), receiving cash of $652,050. Required: Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles. Chart Of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds…
Visno
Franklin Corporation issues $83,000, 10%, 5-year bonds on January 1 for $86,700. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is a. $3,690 b. $6,640 c. $3,780 Od. $3,320
On October 1,2021 Steve Company borrowed $500,000 from its parent, Pam Company, at an annual interest rate of 5%, with interest payable semiannually on March 31 and September 30. The note’s principle is due in 5 years. Required; a. What balances appear in the December 31, 2021 trial balances of Pam Company and Steve Company with respect to this intercompany loan? b. What balances should appear on the consolidated financial statements of Pam Company and Steve Company with respect to this intercompany loan? c. Prepare the December 31, 2021 elimination entries needed for this intercompany loan.