Bonds payable (maturing in 5 equal annual installments of P400,000) 2,000,000 Reserve for contingencies Held for trading financial liabilities Income tax payable Accrued expenses Stock dividends payable 50,000 100,000 100,000 10,000 24,000 How much is the total current liabilities? а. 1,120,000 b. 1,210,000 c. 1,220,000 d. 1,238,000
Q: 15. On January 1, 20x1, P3.000,000, 10% bonds to be classified as investment measured at amortized…
A: Bond is a fixed income-based instrument, which contains low amount of risk. Organization issues…
Q: 1. A corporation sold an issue of 20-year bonds, having a total face value of P10,000,000 for…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: "Ace Company issued P100,000 face of 6%, 10 year-bonds, with interest payable semi-annually. Ace…
A: Account Titles and Explanation Debit Credit Interest Expense 3,250 Discount…
Q: At the beginning of current year, Samal Company Issued P5,000,000 8% serial bonds, to be repaid in…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: ACCT 102
A: Cash received in first year means cash received from the sale of bonds. Cash paid in the first year…
Q: Discount-Mart Issues $20 million In bonds on January 1, 2021. The bonds have a seven-year term and…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at par.…
A: One of the sources used by the business entities to raise their share capital is the issue of debt…
Q: On January 1, 20x1, Mitch Co. acquired 12%, P4,000,000 bonds at 98. Commission paid to brokers…
A: Bonds are a form of loan or debt that is being issued by the company, on which regular interest…
Q: 1. On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Question Related data of John-j Company: Face amount P2,550,000…
A: Bond: It is long-term source of finance issued by the firm to raise money. It has a fixed maturity…
Q: Q10
A: 1.Prepare amortization schedule:
Q: January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s…
A: Solution Given Face value 500000 Coupon rate 8% Issue price 475126 Life of…
Q: KCC Corporation has the following transactions for the year. Prepare all the necessary entries for…
A: Bond Valuation The valuation of bond can be either par value or discount or premium as well. There…
Q: On December 31, 2020, Dome Company issued P 4,000,000, 8% serial bonds, to be repaid in the amount…
A: The interest method of amortization of discount is the method used to amortize the discount or…
Q: If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount…
A: Solution: Cash paid for bond interest = Bond interest expense - Increase in bond payable - Decrease…
Q: 1. On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued…
A: Selling price is the price at which a commodity is sold. It includes the cost incurred for the…
Q: On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the…
A: Interest expense on December 31, 2021 = present value of the bonds x yield rate x no. of the months…
Q: On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays…
A:
Q: A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming a…
A: please like the answer your response matters Interest expense = Issue price*Market rate =…
Q: nstructions On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond…
A: Bond is a instrument which has a fixed income and is issued by the borrower, one needs the money to…
Q: The bond indenture for the 10-year, 9% debenture bonds issued January 2, 20Y5, required working…
A: Formula: Working capital = Current assets - current liabilities.
Q: (b) Issuance of $2 million, 8% bonds at face value. Complete the following table, and indicate which…
A: Required table is given below:
Q: If $1,000,000 of 10% bonds are issued at 98, the amount of cash received from the sale is: Oa.…
A: Bond refers to a promise that the borrower will pay the lender the amount of face value along with…
Q: Farmer Company issues P 20,000,000 of 10-year, 9% bonds on March 1, 2020 at 97 plus accrued…
A: Issue price of bond= 200000*97 Accrued interest= P 20000000*9%*2/12 = 300000
Q: January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…
A: A financial asset is an asset, the value of which is extracted from a contractual obligation.…
Q: An entity records on December 31, 20x1 show the following account balances: Trade accounts…
A: Liabilities are the obligations or dues which needs to be settled down or being paid by the…
Q: n January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…
A: Solution Given Face value 500000 Coupon rate 8% Issue price 475126 Life of…
Q: A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming a…
A:
Q: On July 1, 2022, bonds of P2,000,000 face amount were Interest on the bonds is payable semiannually…
A: The procedure of entering commercial transactions for the very first time in the books of accounts…
Q: On April 1, 20x1, Ronald Ryan Co. acquired 12%, P4,000,000 bonds dated January 1, 20x1 at 98…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: On January 1, 2021, a company issues $710.000 of 10% bonds, due in twelve years, with interest…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
Q: Lexy Company issued P 10,000,000 of 10-year, 9% bonds on March 1, 2020 at 97 plus accrued interest.…
A: Given that, Lexy Company issued P 1,00,00,000 face value of bonds @ 97 each Plus accrued interest.…
Q: 30. On January 1, 2023, AAA Company issued as amortized cost P5,000,000 face value,8% bonds for…
A: The bonds are issued at discount when market rate is higher than coupon rate of interest.
Q: The records of Montana Corporation on January 1, 2020 show the following accounts: Premium on bonds…
A:
Q: P-4***On July 1,2011, SUNSHINE Company issued P2,000,000, 10% bonds, which mature in five years. The…
A: Please see Step 2 for required information.
Q: BMT Company issued P5,000,000, 12%, 20-year bonds at 102 plus accrued interest on February 1, 2021.…
A: Accrued interest on the bonds company collect from the investor on February 1, 2021 = Face value of…
Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…
A: Fair value of the Bond = P500,000 Financial asset in our question is measured at FVTPL. Any change…
Q: A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming a…
A: Date (A) Or Sr. n Interest payment (B) 2% *face value Interest expenses (C) 1.5% *previous book…
Q: On March 1, 2021, RED Corporation issued at 103 plus accrued interest, 1,000 of its 9%,₱1,000 bonds.…
A: Solution : Given : Number of bond =1000 Face value =P 1000 Issue…
Q: A P1000 000.00 issue of 3%, 15-year bonds is sold at 95%. The miscellaneous initial expense of the…
A: In order to calculate true cost company paying first calculate the issue price as follows: Issue…
Q: RNB Corporation issued ten thousand P1,000 bonds on January 1, 2018. They have a ten-year term and…
A: Bonds are a form of loan or debt issued by the business, on which regular interest payments needs to…
Q: On January 1, 20x1, Etsy Co. purchased 10%, P4,000,000 bonds for P4,171,968. The bonds are…
A:
Q: On January 1, 20x1, Sina Co. acquired 10%, ₱4,000,000 bonds for ₱3,807,853. The principal is due on…
A: In this question amount of coupon is to be find out. It can be find out by multiplying the coupon…
Q: On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally…
A: As per the indirect method of preparation of statement of cash flows, net income is adjusted for…
Q: Mara Company reported the following accounts on December 31, 2021: 50,000 180,000 Premium on bonds…
A: Introduction Bonds are investment securities that is issued by company and in which investor invest…
Q: Related data of John-j Company: Face amount…
A: Step 1 The present value of a bond is calculated by discounting the bond's future cash payments by…
Q: A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: 1. On January 1, 2020 ABC Co. issued 3-year bonds with a face value of P1,200,000 and stated…
A: Statement showing Computation of Carrying Value of the bond of ABC Co. Installment Interest @8%…
multiple choice
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for 20X3 it as follows (amounts in millions): Required: Next Level Compute the following for 20X3. Provide a brief description of what each ratio reveals about McCormick 1. return on common equity 2. debt-to-assets 3. debt-toequity 4. current 5. quick (McCormick uses cash and equivalents, short-term securities and receivables in their quick ratio calculation.) 6. inventory turnover days 7. accounts receivable turnover days 8. accounts payable turnover days 9. operating cycle (in days) 10. total asset turnover Use the following information for 14-17 and 14-18: The Hershey Company is one of the worlds leading producers of chocolates, candies, and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hersheys consolidated balance sheets for 20X2 and 20X3 follow.5. The followings ate the information about Rainbow National Bank:Report of Income Tk.Interest income 1,250Interest expense 500Total assets 40,000Securities losses or gains 1,000Earning assets 30,000Total liabilities 30,000Taxes paid 1,000Shares of common stock outstanding 3,000Noninterest income 8,000Noninterest expense 6,000Provision for loan losses 2,500Calculate ROE, ROA, Net interest margin, Earnings per share, Net noninterest marginand Net operating margin.Alternative Scenarios:Suppose interest income, interest expenses, noninterest income, and noninterestexpenses each decline by 5 percent while all other revenue and expense items shown inthe preceding table remain unchanged. What will be happen to Rainbow ROE, ROA,and earnings per share?2. Calculate current ratio and Liquid/Quick ratio from the following: Sundry debtors RO 400,000 Stock RO 160,000 Marketable securities RO 80,000 Cash RO 120,000 Prepaid expenses RO 40,000 Bill payables RO 80,000 Sundry creditors RO 160,000 DebenturesRO 200,000 Outstanding Expenses RO 160,000
- From the balance sheet prepare a proforma income statement where revenues can increase by 2% and the firm can borrow at 5.5% BALANCE SHEET 2021 Cash and cash equivalents 280 Receivables 2588 Inventory 2516 Other CA 189 TOTAL CA 5573 Fixed assets 5024 TOTAL ASSETS 10597 Accounts payable 4713 Short term debt 78 TOTAL CL 4790 LT debt 921 Shareh. Equity 4886 TOTAL LIAB. AND SHARH. EQUITY 10597 INCOME STATEMENT 2021 Sales 19418 COGS 13136 Depreciations 354 SG&A 4952 EBIT 976 Interest Expenses 52 Tax 268 Net income 656 Pro-forma statement Pro Forma Forecasts Actual Projected Projected Projected Projected Projected 2021 2022 2023 2024 2025 2026 COGS/REVENUES SGA/SALES INVENTORIES/COGS OTHER CA/SALES AR/SALES AP/COGS SALES/FIXED ASSETS DEPR/ FIXED ASSETS EQUITY/INVESTED CAPITAL ST DEBT/INVESTED…BALANCE SHEETCash $ 140.0 Accounts payable $ 800 .0Accts. receivable 880 .0 Notes payable 600.0Inventories 1,320.0 Accruals 400 .0Total current assets $2,340.0 Total current liabilities $1,800.0Long-term bonds 1,000.0Total debt $2,800.0Common stock 200 .0Retained earnings 1,000.0Net plant & equip. 1,660.0 Total common equity $1,200.0Total assets $4.000.0 Total liabilities & equity $4.000.0lNCOME STATEMENTNet sales $6,000.0Operating costs 5,599.8Depreciation 100.2EBIT $ 300.0Less: Interest 96 .0EBT $ 204 .0Less: Taxes 81.6Net income $ 122.4OTHER DATAAnnual Principal and Lease Payments 0.00Shares outstanding (millions) 60 .00Common dividends (millions) $42.8Interest rate on NIP and long-term bonds 6.0 %Federal plus state income tax rate 40%Year-end stock price $30 .60 What is the firms ROE (Return on Equity)?Group of answer choices 9.45% 9.63% 9.84% 10.20%BALANCE SHEETCash $ 140.0 Accounts payable $ 800 .0Accts. receivable 880 .0 Notes payable 600.0Inventories 1,320.0 Accruals 400 .0Total current assets $2,340.0 Total current liabilities $1,800.0Long-term bonds 1,000.0Total debt $2,800.0Common stock 200 .0Retained earnings 1,000.0Net plant & equip. 1,660.0 Total common equity $1,200.0Total assets $4.000.0 Total liabilities & equity $4.000.0lNCOME STATEMENTNet sales $6,000.0Operating costs 5,599.8Depreciation 100.2EBIT $ 300.0Less: Interest 96 .0EBT $ 204 .0Less: Taxes 81.6Net income $ 122.4OTHER DATAAnnual Principal and Lease Payments 0.00Shares outstanding (millions) 60 .00Common dividends (millions) $42.8Interest rate on NIP and long-term bonds 6.0 %Federal plus state income tax rate 40%Year-end stock price $30 .60 Question 9 What is the firm's Debt Ratio? Group of answer choices 60.0% 65.0% 70.0% 75.0% Question 10 What is the firm's Inventory Turnover? 4.41 4.55 4.69 4.83 Question 11 What is the firm's DPS…
- BALANCE SHEETCash $ 140.0 Accounts payable $ 800 .0Accts. receivable 880 .0 Notes payable 600.0Inventories 1,320.0 Accruals 400 .0Total current assets $2,340.0 Total current liabilities $1,800.0Long-term bonds 1,000.0Total debt $2,800.0Common stock 200 .0Retained earnings 1,000.0Net plant & equip. 1,660.0 Total common equity $1,200.0Total assets $4.000.0 Total liabilities & equity $4.000.0lNCOME STATEMENTNet sales $6,000.0Operating costs 5,599.8Depreciation 100.2EBIT $ 300.0Less: Interest 96 .0EBT $ 204 .0Less: Taxes 81.6Net income $ 122.4OTHER DATAAnnual Principal and Lease Payments 0.00Shares outstanding (millions) 60 .00Common dividends (millions) $42.8Interest rate on NIP and long-term bonds 6.0 %Federal plus state income tax rate 40%Year-end stock price $30 .60 Question 5 What is the firm's EBITDA coverage? Group of answer choices 3.51 3.69 3.88 4.17 Question 6 What is the firms DSO (Days Sales Outstanding)? Group of answer choices 51.30 days 52.80 days 53.50…Use the financial ratios of company A and company B to answer the questions below. Company A Company B Yr t+1 Year t Yr t+1 Year t Current ratio 0.55 0.59 0.56 0.55 Accounts receivable turnover 6.22 6.25 5.06 4.87 Debt to total assets 40.5% 40% 67.8% 65.9% Times interest earned 8.80 30.6 5.97 6.33 Free cash flows (in millions) ($3,819) $3,173 $168 $550 Return on stockholders’equity 7.7% 7.7% 26.6% 23.3% Return on assets 4.3% 4.3% 8.9% 7.9% Profit margin…Data pertaining to the current position of Forte Company follow:Cash $412,500Marketable securities 187,500Accounts and notes receivable (net) 300,000Inventories 700,000Prepaid expenses 50,000Accounts payable 200,000Notes payable (short-term) 250,000Accrued expenses 300,000 Instructions1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios in parts b through j to one decimal place.2. List the following captions on a sheet of paper:Transaction Working Capital Current Ratio Quick Ratio Compute the working capital, the…
- Accounting Equation The total assets and total liabilities (in millions) of ThriftShop, Inc. and Bullseye Corporation are shown below. ThriftShop Bullseye Assets $10,577 $14,490 Liabilities 2,010 1,159 Determine the stockholders' equity of each company. ThriftShop, Inc. stockholders' equity $fill in the blank 1 million Bullseye Corporation stockholders' equity $fill in the blank 2 millionIn column A, identify the account to which element it belongs whether Current Asset (CA), Noncurrent Assets (NCA), Current Liabilities (CL), Noncurrent liabilities (NCL) or Shareholders’ equity (SHE). In column B, indicate the line item to which the account belongs. Column A Column B1. Share Capital2. Accounts Payable 3. Plant Expansion Fund4. Trading Securities 5. Employees income tax payable6. Goodwill 7. Raw Materials8. Share Premium 9. Advances from customers 10. Serial bonds not collectible currently 11. Investment in Bonds 12. Notes Payable 13. Prepaid Insurance 14. Income Tax Payable 15. LandAnalyse the effect of the actions below on the debt/equity ratio. Assume current debt/equity ratio is 0.5. (v) Issuing new equity (vi) Account receivable collected (vii) Sell goods on book value, on cash basis (viii) Pay off the company’s long term bank loan