An entity issued 1 500 debentures with face value of R20 000 each. The coupon rate on the debentures is 12% paid annually in arrears. In order to speed the sale of the debentures, the directors decided to issue them at 10% discount. What amount would be recorded by the entity in its statement of financial position under non-current liabilities? Select one: a. R20 000 b. R15 000 000 c. R30 000 000 d. R27 000 000
Q: In an audit of Ingenious Company for the year ended December 31, 2013, the entity took its annual…
A: Inventory refers to the raw materials utilised in manufacturing as well as the finished goods that…
Q: ABC Company manufacturers high end-whole electronic systems. The company provides a one-year…
A: ABC Company reported liability for estimated warranty costs of P6.5 million at the beginning of this…
Q: ABC Company is in financial difficulties and was not able to pay the 10% interest of P100,000 due on…
A: One of the source used by the business entities so as to raise the funds and meet the financial…
Q: 4. If Aika's goal is to be able to withdraw P30,000 by January 1, 2023, and then another P30,000 on…
A: Bank: It is a financial institution that accept deposits from and provide loan to public. This…
Q: Calculate Cost of Goods sold from the following? Opening stock OMR 20000, Carriage outwards OMR…
A: Formula used: Cost of goods sold = Opening stock + Net purchases - closing stock
Q: What is the most valuable knowledge gained from innovative business courses?
A: The term company refers to an organization or entity engaged in commercial, industrial, or…
Q: In 2020, Al-Nawras Company sold 1,200,000 units of its product at a selling price of 32 dollars per…
A: The contribution margin per unit is calculated as difference between selling price and variable cost…
Q: prepare an income statement for the current year using the functional presentation with supporting…
A: Income Statement (Functional View) Note Amount Amount Net Sales 1 7700000 Less: Cost of…
Q: Oct. 1 Lia Berge begins business as a real estate agent with a cash investment of $3 2 Paid rent,…
A:
Q: Presented below are shareholders' equity accounts of Minzy Company: 2017 2016 Common stock, 22,000…
A:
Q: In 2020, Al-Nawras Company sold 1,200,000 units of its product at a selling price of 32 dollars per…
A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…
Q: H Company acquires 100% of the voting stock of R Company on January 1, 2021 for P400,000 cash. A…
A: Under the acquisition method, contingent consideration obligations are recognized as part of the…
Q: Accounting At the end of January, $4,800 of accounts receivable are past due, and the company…
A: The bad debt expense for the period can be estimated on the basis of credit sales or account…
Q: The management of Unter Corporation; an architectural design firm, is considering an investment with…
A: Payback period is the period during which the investment in a project will be recovered from annual…
Q: Compare and contrast the early historical accounting for postretirement health care and life…
A: Historical cost accounting is an important technique that records assets on a statement of financial…
Q: 7. The following table show's a credit cardholder's transactions for his credit card with statement…
A: The answer is stated below:
Q: Msibi Limited purchased machinery at R500 000 on 30 June 2013. It is the company’s policy to…
A: The question is related to Impairment of Assets. Impairment means heavy loss to asset other than…
Q: The following trial balance was extracted from the books of xulu at the close of business on 29…
A: Income statement is prepared by the business organizations so as to know how much amount of Gross…
Q: In the statement of cash flows for the current year, what amount should be reported as net cash used…
A: Cash flow from financing activity includes the cash raised through financing activity by issue of…
Q: their warranty claims in 2023 was $320,000; $180,000 for parts and $240,0 2,890,000. heir warranty…
A: Warranty payable account is an provision account recorded under current liabilities. It estimates…
Q: Refer to the AccuTax Incorporated exhibit One of the partners is planning to retire at the end of…
A: An Estimate is the process of calculation or judgement of the value, number, quantity.It is a kind…
Q: P Company acquired 90% of S Corporation on January 1, 2014 for $2,250,000. S had net assets at that…
A: The net income increases the balance of retained earnings. Whereas, the dividend decreases the…
Q: of a cooperative shall be allowed if the same in intended to defraud creditors. 29. Merger and…
A: Merger includes two or more than two companies which companies through takeover as well as emergence…
Q: Garrison Co. produces three products - X, Y, and Z - from a joint process. Each product may be sold…
A: Joint cost means the cost incurred to produce more than one units and then joint cost need to be…
Q: Problem 3-3 (Algo) Given the following history, use a three-quarter moving average to forecast the…
A: Introductions:- Forecasting means is the process of using current and historic data to predict…
Q: CPLF borrows P2,500,000 from Bank DAAE at 11% interest to be paid at the end of each year for 15…
A: A term loan is a type of credit vehicle in which an amount is lent to another party in exchange for…
Q: Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency.…
A: Labor rate variance= (Standard rate - actual rate) actual hours Labor quantity variance: (Standard…
Q: 66.7% ▾ The following is an extract of some of the transactions for the month PRODUCT COST NO…
A:
Q: The following data relate to Department no. 3 of Tsing Corporation: Segment contribution margin…
A: Formula: Contribution margin = Sales - variable expenses Variable expenses = Sales + Contribution…
Q: The president expects sales to increase by 20% next year. By wha peso amount should net operating…
A: As per the guidelines, only one question is allowed to be solved. Please resubmit the questions…
Q: cule dhanas Select the images below to enlarge. Balance Sheet Balance Sheet December 31 2021 Current…
A: Formula: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory =…
Q: Determine the net income attributable to Pakito Corporation.
A: In case of inter-company transaction, the sales made to each other would be cancelled out and thus…
Q: Colby Company makes cases for cell phones of all sizes and types for sale through specialty…
A: Customer margin is total revenue a from a customer less the total cost to acquire
Q: The planned production for July is 120,000 cars. Sales are forecasted at 90,000 toy cars for June…
A:
Q: True or False 25. A cooperative duly-registered consistent with the Philippine Cooperative Code…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Tala Nicole Dimaapi Valdez made a 3-month advance rent payment and a 1-month security deposit to…
A: Given: - Adjusted balance for rent= 17,777 Rental income recognized for= 3 months Advance of = 2…
Q: TASK 4 Calculate the cost per km of owning a truck. Cost price ife span pportunity cost of capital…
A:
Q: Part I A portion of the Stockholders' Equity section of Cailey Corporation's balance sheet as of…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: Oriole, Inc. reported net income of $2.60 million in 2022. Depreciation for the year was $166,400,…
A: The cash flow from operating activities includes the cash flow from day to day transactions of the…
Q: Use the information below to answer question 36- 43. KSB wants to run a new programme. Estimated…
A: Ans. Contribution refers to the total revenue minus variable cost.
Q: or the next two (2) questions: The following account balances relate to the stockholders' equity…
A: The cash flow statement is prepared to record the cash flow from various activities such as…
Q: The following are balances of a partnership between Shoe and Lace as at 2021 December 31: DR CR…
A: Partnership Account - Partnership Account includes two or more individual form together for the…
Q: s, so he will onl
A: Stocks refer to the equity instruments where there is high risk as well as high return. Bonds…
Q: Calculate COGS from the following? Opening stock - OMR 12,000 Closing stock - OMR 8,000 Purchases -…
A: Formula: Cost of goods sold = Beginning stock + Net purchases - Ending stock
Q: Suppose that Australians in 2017 expect inflation to equal 7 percent in 2018, but, in fact, prices…
A: A lower rate of inflation will help the lender of a fixed interest rate loan. Inflation means the…
Q: Management accountants are frequently asked to analyze various decision situations including the…
A: Sunk Costs are the costs which are already incurred in past. These costs are not relevant in…
Q: How to establish budget planning and control system for department stores?
A: budget is considered to be an document in the business that is used to track the income and expenses…
Q: 1.1 You have just joined Pandemic Limited as a director. You then noted that your co- directors know…
A: Answer:- Director meaning:- A director is basically an elected official who is in charge of a…
Q: Your company operates a theme park, which has the latest rides and an annual attendance of over 10…
A: Here discuss about the claim settlement process and account treatment which are included with the…
Q14
An entity issued 1 500 debentures with face value of R20 000 each. The coupon rate on the debentures is 12% paid annually in arrears. In order to speed the sale of the debentures, the directors decided to issue them at 10% discount.
What amount would be recorded by the entity in its
Step by step
Solved in 3 steps
- Asap An entity issued 1 500 debentures with face value of R20 000 each. The coupon rate on the debentures is 12% paid annually in arrears. In order to speed the sale of the debentures, the directors decided to issue them at 10% discount. What amount of interest will be paid annually to an investor who bought 100 debentures?An entity issued 1 500 debentures with face value of R20 000 each. The coupon rate on the debentures is 12% paid annually in arrears. In order to speed the sale of the debentures, the directors decided to issue them at 10% discount. What amount of interest will be paid annually to an investor who bought 100 debentures?Do not copy from bartleby An entity issued 1 500 debentures with face value of R20 000 each. The coupon rate on the debentures is 12% paid annually in arrears. In order to speed the sale of the debentures, the directors decided to issue them at 10% discount. What amount of interest will be paid annually to an investor who bought 100 debentures?
- Q16 An entity issued 1 500 debentures with face value of R20 000 each. The coupon rate on the debentures is 12% paid annually in arrears. In order to speed the sale of the debentures, the directors decided to issue them at 10% discount. How much cash will the entity receive if all the debentures are fully subscribed and paid for?Pacific Filght PLC has in issue K500,000 10% irredeemable debentures. Investors currently require 8% return per annum. What will be the market value of the debt?Mr. X has a limited cash balance of P1,000,000.00. (b) The buying price of the stock is P10 per share (c) Mr. X wants to purchase 150,000 shares (d) The broker wants to lend Mr. X the deficit in exchange of 3% simple interest per month. (e) the transaction cost in buying the shares is 0.10 per share Variable rate plus P20,000 Fixed rate. (f) On September 1, 2021, Mr. X purchased 150,000 shares at 10 per share. Using the above details, Assuming on October 1, 2021, Mr. X wants to sell the 150,000 shares to Mr. Y for 9.80 per share with a corresponding transaction cost of 0.05 per share Variable Rate plus P10,000 Fixed rate. What is the net income/loss of Mr. X in selling the stocks to Mr. Y? If you were the Financial Advisor of Mr. X, would you advise him to sell the stocks to Mr. Y?
- Mr. X has a limited cash balance of P1,000,000.00. (b) The buying price of the stock is P10 per share (c) Mr. X wants to purchase 150,000 shares (d) The broker wants to lend Mr. X the deficit in exchange of 3% simple interest per month. (e) the transaction cost in buying the shares is 0.10 per share Variable rate plus P20,000 Fixed rate. (f) On September 1, 2021, Mr. X purchased 150,000 shares at 10 per share Using the above details, Assuming on October 1, 2021, Mr. X wants to sell the 150,000 shares to Mr. Y for 10.90 per share with a corresponding transaction cost of 0.05 per share Variable Rate plus P10,000 Fixed rate. What is the net income/loss of Mr. X in selling the stocks to Mr. Y after deducting transaction costs and interest payment to the broker? If you were the Financial Advisor of Mr. X, would you advise him to sell the stocks to Mr. Y? Using the above details, Assuming on October 1, 2021, Mr. X wants to sell the 150,000 shares to Mr. Y for 10.10 per share with a…Mr. X has a limited cash balance of P1,000,000.00. (b) The buying price of the stock is P10 per share (c) Mr. X wants to purchase 150,000 shares (d) The broker wants to lend Mr. X the deficit in exchange of 3% simple interest per month. (e) the transaction cost in buying the shares is 0.10 per share Variable rate plus P20,000 Fixed rate. (f) On September 1, 2021, Mr. X purchased 150,000 shares at 10 per share. Using the above details, Assuming on October 1, 2021, Mr. X wants to sell the 150,000 shares to Mr. Y for 9.80 per share with a corresponding transaction cost of 0.05 per share Variable Rate plus P10,000 Fixed rate. What is the net income/loss of Mr. X in selling the stocks to Mr. Y? If you were the Financial Advisor of Mr. X, would you advise him to sell the stocks to Mr. Y? Why or why not? Using the above details, Assuming on October 1, 2021, Mr. X wants to sell the 150,000 shares to Mr. Y for 9.80 per share with a corresponding transaction cost of 0.05 per share Variable…Mr. X has a limited cash balance of P1,000,000.00. (b) The buying price of the stock is P10 per share (c) Mr. X wants to purchase 150,000 shares (d) The broker wants to lend Mr. X the deficit in exchange of 3% simple interest per month. (e) the transaction cost in buying the shares is 0.10 per share Variable rate plus P20,000 Fixed rate. (f) On September 1, 2021, Mr. X purchased 150,000 shares at 10 per share. * Assuming on September 1, 2021, Mr. X purchased only 100,000 shares at 10.00 per share and sold the same stocks to Mr. Y at 9.80 per share. What is the net income/loss of Mr. X in selling the stocks to Mr. Y? (Transaction cost in buying and selling stocks is the same in the given data above).
- On 1st July 2002, Midget Ltd. acquired some corporate bonds issued by Farrelly Ltd. These bonds cast $ 2,277,220 and had a life of four years. They had a 'face value' of $ 2 million and offered a coupon rate of 10 per cent paid annually ($ 200,000 per year, paid on 30th June) The bonds would repay the principal of $ 2 million on 30th June 2026. At the time, the market required a rate of return on 6 per cent on such bonds. Midget Ltd. operates within a business model where government bonds are held in order to collect contractual cash flows and there is no intention to trade them. Assume there were no direct costs associated with acquiring the bonds. Needs answers to the following; a) Explain why the company was prepared to pay $ 2,277,220 for the bonds given that, apart from the interest, they expect to receive only $ 2 million back in four years c) Calculate the amortised cost of the bonds as at 30th June 2023, 2024, 2025 and 2026. d) Provide the accounting journal entries for the…A company issues GHS 1,000,000 12% debentures of par value of GHS 100 each. The debentures are redeemable after the expiry period of 7 years. The company is in the 35% tax bracket.Required (i)Calculate the cost of debt after tax, if debentures are issued at: • Par • 10% Discount • 10% Premium (ii) Based on the relationship between coupon interest rate and cost of debt, explain why debenture may be issued at par, discount and premium.a) What factors should be considered in determining the issue price of a debenture? b) On 1 July 2018 Bombo Ltd issues $2 million in six-year debentures that pay interest every sixmonths at a coupon rate of 8 percent. At the time of issuing the securities, the market requires arate of return of 6 percent. Interest expense is determined using the effective-interest method.Required:(i) Determine the issue price of the debenture. (ii) Provide the journal entries at: 1 July 2018, 30 June 2019, & 30 June 2020.