ermoy Ltd, an ASX listed entity, intends to make a public issue of $50m of debentures. Required: Explain the meaning of the term 'debentures, and the legal disclosure requirements that apply to the proposed fundraising
Q: During 2021, ROME Company engaged in the following transactions: • Sales to key employees who are…
A: sale to related parties =P540000
Q: Mikasa Enterprises needs additional funding and intends to sell its shares in the stock market thru…
A: Private enterprises seeking to obtain cash by issuing securities have two options: selling…
Q: (Based on Appendix B) LTV Corporation grants SARs to key executives. Upon exercise, the SARs…
A: Stock appreciation rights (SARs): Stock appreciation rights are the compensation plans provided in…
Q: An entity's retirement benefit plan provides for an annual contribution of P2,000,000 to a fund held…
A: Employees contribute towards the separate fund which has been created for the retirement of the…
Q: The owners are desirous of comparing serval financial transactions and possible outcomes to assist…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: ,500,000 of
A: Income Statement: The requirement is to compute the total adjustment amount of events. The loss due…
Q: f the corporation when formed sets a par value for its shares low and issue common stock for a…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: Cabramurra Ltd, a listed company, organises major sporting events. It acquires crowd control…
A: In this case, the given transaction is considered as the equity-settled share based payment. In this…
Q: On January 1, 2020, Nun Company had ordinary and preference shares outstanding, The incorporators or…
A:
Q: Which of the following is not exempt from registration with the SEC under the Securities Act of…
A: Securities Exchange Commission (SEC): This is the government agency governs the working of financial…
Q: Given that institutional investors such as insurance companies, mutual funds, and pension funds are…
A: An initial public offering (IPO) is the process of raising capital from public investors or offering…
Q: As part of its stock-based compensation package, on January 1, 2016, International Electronics…
A: 1.
Q: A bidders disclosure statement under the Williams Amendment must be submitted when the bidder:…
A: William Amendment is there to protect the shareholders who might become target of hostile takeover.…
Q: Bramble Corporation owns shares of Klank Ltd that are classified as part of Bramble's trading…
A: Property dividend refers to the earnings distributed to the shareholders of the company in the form…
Q: Note: This is a variation of E 19–29, modified to allow settlement in cash.)As part of its…
A: 1.
Q: On December 30, 2018, Ethnic Museum, a not-for-profit organlzation, recelved a P3,000,000 donation…
A: A non-profit organization (NPO) is one that is not motivated by financial gain. They are not formed…
Q: Sheldon Ltd required additional equity funding and decided to issue a renounceable rights offer. To…
A: Company means the form of business where management is separately from owner and have perpetual…
Q: A corporation decides to sell its newly issued bonds to pension funds and insurance companies, what…
A: A corporate bond is a debt instrument that a company issues and sells to investors. The company…
Q: On December 30, 2017, Leigh Museum, a not-for-profit entity, received a $7,000,000 donation of Day…
A: Option c. The amount that should be shown as the temporarily restricted net assets is $500,000.
Q: A sinking fund can be set up in one of two ways:● The corporation makes annual payments to the…
A: A sinking fund is a provision of issuing bonds, which provide the retirement of part of issued bonds…
Q: Sousa Caterers, Inc. was organized on May 13, 2019 and the articles stipulated the following…
A: Subscribed Share Capital-: Subscribed Share Capital is that portion of issued share wealth for which…
Q: The owners are desirous of comparing serval financial transactions and possible outcomes to assist…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: LO6. On January 2, 2021, for past services, Marigold Corp. granted Nenn Pine, its president, 29,200…
A: As compensation has not been recognized it will be done by deducting the initial stock price from…
Q: BigTech, Inc. included the following disclosure note in an annual report: Share-Based Compensation…
A: Stock options: A stock option gives a right to the option holder (investor) to exercise an option of…
Q: LTV Corporation grants SARs to key executives. Upon exercise, the SARs entitle executives to receive…
A: Definition: Stock appreciation rights (SARs): Stock appreciation rights are the compensation plans…
Q: Fiesta Corporation intends to come up with capital through making a public offering of its…
A: Solution:- A corporation can raise money either through public offering or through private…
Q: Capricorn, Inc., is planning to “go public” by offering its common stock, which previously had been…
A: The analysis of case is,C company is planning to go public through offering common stocks owned by…
Q: Glass S.A. offered to the public 500,000 ordinary shares fully paid at $3.5 each and the shares were…
A: Introduction When shares are issued, company gets capital money from investors. When a company…
Q: Velasco Corporation should report cash equivalents in its December 31, 2019 statement of financial…
A: Cash and Cash equivalents: This item is to be reported as a current asset on the balance…
Q: OFIA had investments in equity securities costing P1,000,000 that were classifies as investment in…
A: When Investments are reclassified at fair value through profit and loss which were earlier…
Q: An accounting policy requiring a corporation to capitalize any asset over $5,000 in value would be…
A: Accounting principles are the rules and guidelines that companies must follow when reporting…
Q: Section 11(b) of the Securities Act of 1933 provides that individuals can be sued and maybe liable…
A: Given: The individuals can be sued and may be liable for investors provided by Section (11b) of the…
Q: Hong Banjang was incorporated on January 1, 2020. The following were the transactions during the…
A: Particulars Amount Mortgage on the land and building ₱20,000 Net payment made on the…
Q: On December 1, 2020, Sakura Corporation received a donation of 2,000 shares with P 50 par value from…
A: Shares represents the capital of the company and the shareholders are considered as the owners of…
Q: The trust for APA, Inc. prepares a statement of affairs which shows that unsecured creditors whose…
A: Employees are treated as priority creditors and need to be paid before any payment is made to…
Q: Which of the following statement is True for Preference shares? a. The company cannot raise funds…
A: Which of the following statement is True for Preference shares:: option d is correct... Other…
Q: Dambrossio Investments is an entity in the mutual funds industry, which provides a group of mutual…
A: Planning materiality is the maximum value set by the auditor for the misstatements. These are set to…
Q: mittee decided to purchase marketable securities, the sale and acquisition of investments were…
A: chief operating officers consider to be second in command for the business. they are responsible for…
Q: Choose the correct. Which of the following is not exempt from registration with the SEC under the…
A: Securities and Exchange Commission (SEC): The board which set rules for the companies for…
Q: The owners are desirous of comparing serval financial transactions and possible outcomes to assist…
A: Equity Statement: When a company closes its books at the end of the fiscal year, it is required to…
Q: Pearl Inc. owns shares of Martinez Corporation stock. At December 31, 2020, the securities were…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Indigo Corporation owns shares of Raccoon Company that are classified as part of Indigo's trading…
A: Change in fair value is recognized as unrealized gain or loss
Q: On December 30, 2017, Leigh Museum, a not-for-profit entity, received a $7,000,000 donation of Day…
A: Workings: The Museum is to sell shares valued at $ 5000000 The museum is to retain shares valued at…
Q: Ashleigh, a public limited company, has granted share options to its employees with a fair value of…
A: Step 1 Journal is the Part of book keeping.
Q: Sheffield Inc. owns shares of Tamarisk Corporation stock. At December 31, 2020, the securities were…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Fermoy Ltd, an ASX listed entity, intends to make a public issue of $50m of debentures. Required: Explain the meaning of the term 'debentures, and the legal disclosure requirements that apply to the proposed fundraising.
Step by step
Solved in 2 steps
- On December 30, 2017, Leigh Museum, a not-for-profit entity, received a $7,000,000 donation of Day Co. common stock shares with donor-stipulated requirements as follows:The museum is to sell shares valued at $5,000,000 and use the proceeds to erect a public viewing building.The museum is to retain shares valued at $2,000,000 and use the dividends to support current operations.As a consequence of its receipt of the Day Co. shares, how much should Leigh report as temporarily restricted net assets on its 2017 statement of financial position? Choose the correct.a. $–0–b. $2,000,000c. $5,000,000d. $7,000,000On December 30, 2017, Leigh Museum, a not-for-profit entity, received a $7,000,000 donation of Day Co. common stock shares with donor-stipulated requirements as follows: The museum is to sell shares valued at $5,000,000 and use the proceeds to erect a public viewing building. The museum is to retain shares valued at $2,000,000 and use the dividends to support current operations. As a consequence of its receipt of the Day Co. shares, how much should Leigh report as temporarily restricted net assets on its 2017 statement of financial position? $–0– $2,000,000 $5,000,000 $7,000,000Following are selected transactions in chronological order of Bayombong Company and its trustee in connection with a sinking fund. a. Cash contribution to the sinking fund, P1,000,000. b. Acquisition of securities at par by the trustee, P700,000. c. The trustee receives interest on the securities, P60,000. d. The trustee pays expenses of P30,000. e. The trustee sells the securities for P800,000 plus accrued interest of P10,000. f. The trustee pays bonds payable of P1,000,000 and interest of P100,000. g. The trustee remits the remaining cash to Bayombong Company. How much was remitted by the trustee to Bayombong Company?
- On January 1, 2024, Vijay Communications granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $12 per share on the grant date. At the date of grant, Vijay anticipated that 6% of the recipients would leave the firm prior to vesting. On January 1, 2025, 5% of the RSUs are forfeited due to executive turnover. Vijay chooses the option to account for forfeitures when they actually occur. Required: 1. to 3. Prepare the appropriate journal entries to record compensation expense on December 31, 2024, December 31, 2025, and December 31, 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as…XYW Corp., a Domestic Corporation, registered in 2010 made available the following financial information for taxable year 2021: Balance Sheet: Asset - Php 500,000 Liability - Php 100,000 Stockholders' Equity - Php 400,000 Income Statement: Gross sales - Php 100,000,000 Cost of sales – Php 60,000,000 Operating Expenses - Php 30,000,000 How much is the excess MCIT which can be carried forward in 2022? Consider CREATE Law Choices: Php 800,000 Php 2,100,000 Php 400,000 Php 0The following selected account balances were taken from the balance sheet of Q Corp. as of December 31, 2021, immediately before the take over of the trustee: Marketable securities P300,000; Inventories P110,000; Land P150,000; Building P400,000. Marketable securities have present market value of P320,000. These securities have been pledged to secure notes payable of P280,000. The estimated worth of inventories of P70,000. However, inventories with book value of P50,000 have been pledged to secure notes payable of P60,000. The realizable value of the inventories pledged estimated to be P40,000. The land and building are estimated to have a total realizable value of P450,000. This property was pledged to secure the mortgage payable of P250,000. What is the amount available for preferred claims and unsecured creditors out of assets pledged with fully secured creditors?
- The following selected account balances were taken from the balance sheet of Q Corp. as of December 31, 2021, immediately before the take over of the trustee; Marketable securities P300,000; Inventories P110,000; Land P150,000; Building P400,000; Marketable securities have present market value of P320,000. These securities have been pledged to secure notes payable of P280,000. The estimated worth of inventories of P70,000. However, inventories with book value of P50,000 have been pledged to secure notes payable of P60,000. The realizable value of the inventories pledged estimated to be P40,000. The land and building are estimated to have a total realizable value of P450,000. This property was pledged to secure the mortgage payable of P250,000. What is the amount available for preferred claims and unsecured creditors out of assets pledged with fully secured creditors? Please provide a solution. Thank you!The Watson Foundation, a private not-for-profit entity, starts 2024 with cash of $100,000; contributions receivable (net) of $200,000; investments of $300,000; and land, buildings, and equipment (net) of $200,000. Net assets without donor restrictions were reported as $400,000, the same figure as the net assets with donor restrictions. Of the restricted net assets, $300,000 was purpose restricted, whereas the other $100,000 had to be held permanently, although the subsequently earned income is without restriction. Fifty percent of the purpose-restricted net assets had to be used to help pay for a new building. The remainder was restricted to the payment of officer salaries. Donors made no stipulations about the eventual reporting of buildings and other long-lived assets when acquired. Watson has one program service (health care) and two supporting services (fundraising and administrative). During the current year, Watson Foundation has the following transactions: Computes interest of…Able Corporation decided to make a public offering of bonds to raise needed capital. On June 30, 2022, it publicly sold $2.5 million of 12% debentures in accordance with the registration requirements of the Securities Act of 1933.The financial statements filed with the registration statement contained the unqualified opinion of Baker & Co., CPAs. The statements overstated Able’s net income and net worth. Through negligence Baker did not detect the overstatements. As a result, the bonds, which originally sold for $1,000 per bond, have dropped in value to $700.Ira is an investor who purchased $10,000 of the bonds. He promptly brought an action against Baker under the Securities Act of 1933. If Will prevails on his claim under the Securities Act of 1933, what are the reasons he does?
- The following selected account balances were taken from the balance sheet of Quitting Corp. as of December 31, 2020, immediately before the take over of the trustee: Marketable securities P300,000 Inventories 110,000 Land 150,000 Building 400,000 Additional information: • Marketable securities have present market value of P320,000. These securities have been pledged to secure notes payable of P280,000. • The estimated worth of inventories is P70,000. However, inventories with book value of P50,000 have been pledged to secure notes payable of P60,000. The realizable value of the inventories pledged is estimated to be P40,000. • Land and building are estimated to have a total realizable value of P450,000. This property is pledged to secure the mortgage payable of P250,000. What is the estimated amount available for preferred claims and unsecured creditors out of the assets pledged with fully secured creditors?a. P240,000b. P840,000c. P770,000The governing board of a private not-for-profit entity votes to set $400,000 in cash aside in an investment fund so that this money and future interest will be available in five years, when a new building is scheduled for construction. Which of the following is not true? Multiple Choice The investments are reported on the statement of financial position as net assets without donor restrictions. The acquisition of the investments is not reported on the statement of activities. Board-designated funds will appear in the net asset section of the statement of financial position as net assets with donor restrictions. Income earned by these investments appears on the statement of activities under net assets without donor restrictions.Prepare journal entries for the following selected transactions of the Marvel Cares Foundation, which uses the restricted fund method and has an operating fund, a capital fund and an endowment fund: - Pledges totalling $325,000 were received of which $65,000 applies to the operations of the following year. It is estimated that 3% of the pledges will be uncollectible - The foundation purchased office equipment at a cost of $5,100 - Pledges of $285,000 were collected and pledges totalling $3,750 were written off as uncollectible - Air time with a value of $7,200 was donated by a local radio station - Interest and dividends received were $13,700 on endowment fund investments. Endowment fund earnings are unrestricted - Depreciation for the year amounted to $35,600