FAM & Co. Ltd issued 2,000 15% debenture of Ghc1,000 each and Ghc2,000 each redeemable in 10 years. All applications were accepted and subsequently allotted. Journalize this transaction
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FAM & Co. Ltd issued 2,000 15% debenture of Ghc1,000 each and Ghc2,000 each
redeemable in 10 years. All applications were accepted and subsequently allotted.
Journalize this transaction?
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- Concord Corp. issued 3 million 8% Debentures of par value $100 at adiscount of 6% redeemable at a premium of 5% after 3 years. The wholeamount is collected on application. Prepare the necessary journal entries ofapplication, allotment and 1st year interest paidOn October 1, Dennis Company purchased ₱200,000 face value, 12% bonds at 98 plus accrued interestand brokerage fees and classified them as amortized cost assets. Interest is paid semiannually on January1 and July 1. Brokerage fees for this transaction were ₱700. At what amount should this acquisition ofbonds be recorded?On January 1, 20X1 Blu Corporation acquired a building for P10M. The entity paid P1M down and signed a non-interest bearing note for the balance. Note is payable in 3 equal annual installment every Dec 31. Prevailing rate for the note of this type is 12%. REQUIRED: Journal entries to record the purchase of the building up to the settlement of the note. Prepare an amortization table. How should the note be presented in the statement of financial position at Dec 31, 20X1?
- On Jan. 1, 2010, ABC entered into an insurance contract covering the life of its founder. The P100,000 annual insurance premium is payable at the start of the year. By the end of the fifth year, the insurance will have a cash surrender value and it was as follows for the following years:Year Cash Surrender Value2014 P80,0002015 100,0002016 130,0002017 180,000 Continuing from the previous number and assuming further that P3,000,000 was received from the insurance, what is the journal entry to record the gain on settlement and make the final adjustment to the insurance expense?On January 1, 20X1 Red Company acquired a building for P10M. The entity paid P1M down and signed a non-interest bearing note for the balance. Note is payable in 3 equal annual installment beginning Jan 1, 20X1. Prevailing rate for the note of this type is 12%. REQUIRED: Journal entries to record the purchase of the building up to the settlement of the note. Prepare an amortization table. How should the note be presented in the statement of financial position at Dec 31, 20X1?On January 1, 20X1 Grin Corporation acquired a building for P10M. The entity paid P1M down and signed a 3-year non-interest bearing note for the balance. Note is payable on due date. Prevailing rate for the note of this type is 12%. REQUIRED: Journal entries to record the purchase of the building up to the settlement of the note. How should the note be presented in the statement of financial position at Dec 31, 20X1?
- On January 1, 20x1, T Co. purchase a patent from B Inc. for P500,000. Blue has held this patent for 5 years. T estimates that the patent has a remaining useful life of eight years. How much is the patent amortization in 20x1? Please present in good accounting form.The following pertains to an entity's acquisitions of PPE during the year: (a) Purchased a new printing machine on Dec. 2 at an invoice price of P4,000,000 with terms 2/10, n/30. On Dec. 15, the entity paid the required amount for the machine. (b) Acquired an equipment by issuing P800,000, five-year 6% note. The entity's incremental borrowing rate is 14%. The annual payment of principal and interest on the note is to be P189,930. The asset has a cash price of P651,460. (c) Acquired a machine on Dec. 30 by issuing noninterest bearing note requiring three payments of P1,000,000. The first payment was made on the date of purchase, and the others are due annually on Dec. 30. The prevailing rate of interest for this type of note at date of issuance was 12%. The present value of an ordinary annuity of 1 at 12% is 1.69 for two periods and 2.40 for three periods. (d) The entity has a machine with a carrying amount of P450,000. Another entity has a delivery vehicle with a carrying…On October 31 , 20x4 , Mr . Cruz bought property from D'Vision Heights which had earlier cost the latter P250,000 . The company received a down payment of P100.000 and a P400,000 mortgage note payable in twenty equal semiannual installments plus 16 % interest per annum on unpaid principal . Assuming the gross profit is recognized in the period of sole of gross profit to be recognized by D'Vision Heights in 20x6 would be :
- On January 1, 20x8, Jolybee Corporation sold a franchise to Mr. AMG for P10,000,000 for the right to operate as a franchisee of Jolybee Corporation. Terms of the franchise contract were: 1. The initial franchise fee of P1,000,000 is payable in cash, when the contract is signed and the balance in five equal instalment every december 31, evidenced by a 12% promissory note. 2. The franchisor will assist in locating the site, supervise construction activity and training of management and employees. On December 31, 20x8 direct cost of services rendered to the franchisee amounted to P2,000,000. Assuming that there is substantial performance of services required in the contract and the collectability of the note receivable is not reasonably assured, using the instalment method how much net income is to be recognized by Jolybee on December 31, 20x8?On 1 January 2019, Company P purchased 80% of the equity of Company S. The following transactions arose at the acquisition date. Issue of P’s shares - 1,200,000 shares [Note b] Immediate cash payment - $400,000 Deferred cash payment - $1,000,000 payable 2 years later Due diligence fees paid to lawyers - $20,000 Equipment transferred - $40,000 (fair value=book value) Note: P’s effective interest rate was 5% per annum. P’s share price is $1.25 The fair value of non-controlling interests at acquisition date was $640,000. Share capital and Retained earnings of S were $1,000,000 and $900,000 respectively on 1 January 2019. On the same day, there was an intangible asset carried in S at $500,000 but the fair value of it was $700,000. Required: a. Determine the fair value of the consideration transferred on 1 January 2019 in accordance with IFRS 3 Business Combinations. Round to the nearest integer. Prepare the journal entries in P’s books on 1 January 2019.…On 1 January 2019, Company P purchased 80% of the equity of Company S. The following transactions arose at the acquisition date. Issue of P’s shares - 1,200,000 shares [Note b] Immediate cash payment - $400,000 Deferred cash payment - $1,000,000 payable 2 years later Due diligence fees paid to lawyers - $20,000 Equipment transferred - $40,000 (fair value=book value) Note: P’s effective interest rate was 5% per annum. P’s share price is $1.25 The fair value of non-controlling interests at acquisition date was $640,000. Share capital and Retained earnings of S were $1,000,000 and $900,000 respectively on 1 January 2019. On the same day, there was an intangible asset carried in S at $500,000 but the fair value of it was $700,000. Required: b. Discuss the three qualitative factors set out in IFRS 10 Consolidated Financial Statements to determine the existence of “Control”.
