Determine the estimated amount payable to the holder of the bonds.
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- A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data (assets are shown at net realizable values):Assets pledged with fully secured creditors . . . . . . . . . . . . . . . . $220,000Fully secured liabilities .. . . . 160,000Assets pledged with partially secured creditors . . . . . . . . . . . . . . . 390,000Partially secured liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510,000Assets not pledged . . . . . . 310,000Unsecured liabilities with priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,800Accounts payable (unsecured) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000a. This company owes $13,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect?b. This company owes $120,000 to a bank on a note payable that is secured by a security interest attached to property with an…The following information is provided concerning the accounts of Jazzy Ltd .You are asked to identify how each of these items is shown in the financial statements. (a) gain on revaluation of available-for-sale investments (b) dividends paid during the year (c) revaluation gain on building (not reversing any previous revaluation) (d) transfer to dividend equalisation reserve (e) Unsecured notes issuedWhich method should be used to account for a 16 % ownership in another company's voting stock , assuming the company buying the stock wants to control the decisions of the other company ? Equity Trading Held - to - maturity Available - for - sale How should a company classify debt securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses that are included in long - term investments ? trading debt securities never - sell debt securities Oheld - to - maturity debt securities available - for - sale debt securities Under the equity method of accounting for investmentswhat must the company purchasing the shares record each period? percentage of net income ) reported and dividends paid Its percentage of estimated earnings and dividends declared The change in market value of the shares owned NothingNo entries are made in the equity method except at the time of purchase. What effect will transferring investments from the…
- Kindly analyze the following ratios: Debt-to-Equity RatioAsset-to-Equity RatioAsset-to-Liability RatioInterest Rate Coverage RatioEarnings per share (EPS) RIZAL COMMERCIAL BANKING CORPORATION AND SUBSIDIARIES Consolidated Parent Unaudited Audited Unaudited Audited 31-Mar-22 31-Dec-21 31-Mar-22 31-Dec-21 Return on Average Assets (ROA)* 1/ 0.9% 0.8% 0.9% 0.9% Return on Average Equity (ROE)* 2/ 8.0% 6.7% 8.0% 6.7% Risk-based Capital Adequacy Ratio (CAR) 14.8% 15.2% 14.5% 14.9% Common Equity Tier 1 Ratio 11.7% 12.2% 11.3% 11.8% Non-Performing Loans (NPL) Ratio* 3/ 3.2% 3.3% 3.1% 3.2% Non-Performing Assets (NPA) Ratio*4/ 2.6% 2.7% 2.5% 2.6% Net Interest Margin (NIM) 4.1% 4.1% 4.0% 4.1% Cost-to-Income Ratio 59.4% 61.9% 58.6% 61.4% Loans-to-Deposit Ratio* 5/ 76.6% 76.3% 75.3% 74.9% Current Ratio 0.5 0.6 0.5 0.6…Using the following information, prepare a properly classified Statement of Financial Position REPORT FORM 0ther current liabilities 125,890 Bonds payable 5,000,000 Cash 2,500,000 Current income tax payable 589,660 Intangible assets 2,654,700 Investment in associate 1,890,600 Investment in equity securities 3,650,400 Investment property 1,968,740 Long-term notes payable 2,000,000 Merchandise inventory 2,789,000 Office supplies 400,000 Other noncurrent assets 600,000 Other noncurrent liabilities 750,000 Owner's Equity 18,211,250 Prepayments and other current assets 385,000 Property, plant, and equipment 9,856,250 Short-term notes payable 320,000 Accounts payables 1,562,890 Account receivables 1,865,000Boulter, Incorporated, began business on January 1, 2024. At the end of December 2024, Boulter had the following investments in debt securities: Trading Available-for-Sale Cost $ 60,000 $ 110,000 Fair value 54,000 107,500 All declines in value are deemed to be temporary in nature. How should the corresponding losses be reflected in the financial statements at December 31, 2024? Income Statement Accumulated Other Comprehensive Income in Shareholders' Equity a. $ 8,500 $ 0 b. $ 0 $ 8,500 c. $ 6,000 $ 2,500 d. $ 2,500 $ 6,000
- The par value of common stock represents a. the estimated fair value of the stock when it was issued. b. the liability ceiling of a shareholder when a company undergoes bankruptcy proceedings. c. the total value of the stock that must be entered in the issuing corporation’s records. d. the amount that must be recorded on the issuing corporation’s record as paid-in capital.A statement of financial affairs created for an insolventcorporation that is beginning the process of liquidation disclosesthe following data (assets are shown at net realizable values): Assets pledged withfully secured creditors $ 220,000 Fully securedliabilities 160,000 Assets pledged withpartially secured creditors 390,000 Partially securedliabilities 510,000 Assets notpledged 310,000 Unsecuredliabilities with priority 182,800 Accounts payable(unsecured) 400,000 a. This company owes $13,000 to an unsecured creditor (withoutpriority). How much money can this creditor expect to collect? b. This company owes $120,000 to a bank on a note payable that issecured by a security interest attached to property with anestimated net realizable value of $90,000. How much money can thisbank expect to collect?If share warrants were exercised by the holder of compound financial instrument, liability would be derecognize a debit to the equity account related to share warrants will be done a credit to the equity account related to share warrants will be done share warrants outstanding account will not be affected. The proceeds from a bond issued with conversion feature should be accounted for entirely as bonds payable entirely as shareholders’ equity partially as unearned revenue and partially as bonds payable partially as shareholders’ equity and partially as bonds payable
- Company S has no long-term marketable securities. Assume the following scenarios:Case AAssume that P Company paid $128,640 cash for 100% of the net assets of S Company. S COMPANY Assets Current Assets Long-lived Assets Liabilities Net Assets Book Value $13,850 $87,400 $18,520 $82,730 Fair Value 19,030 118,200 29,860 107,370 Case BAssume that P Company paid $112,410 cash for 100% of the net assets of S Company. S COMPANY Assets Current Assets Long-lived Assets Liabilities Net Assets Book Value $13,850 $87,400 $18,520 $82,730 Fair Value 29,490 84,700 20,640 93,550 Case CAssume that P Company paid $15,750 cash for 100% of the net assets of S Company. S COMPANY Assets Current Assets Long-lived Assets Liabilities Net Assets Book Value $13,850 $87,400 $18,520 $82,730 Fair Value 19,440 39,110 37,280 21,270 Complete the following schedule by listing the amount…Describe the accounting for bonds payable, including bonds issued at face amount, bonds issued at a discount, and bonds issued at a premium? Describe how bonds are reported on the balance sheet? Describe how the times interest earned ratio is used to evaluate a company’s financial condition? Describe the advantages and disadvantages of the corporate form of business ownership? Describe the characteristics of corporate stock, the classes of stock, and the accounting entries for stock issuance? Search entries or author .Management informed the auditor that they erroneously charged the acquisition of SMC shares to the account “Marketable Securities” when they never had any intention to dispose of this when in need of cash. These shares should be treated as securities @ FVOCI – noncurrent. The company recorded a 20,000 decline in market value of these shares and charged this to operating expenses. Requirement: Prepare adjusting entries