On 1 January 20X1 Bakti Bhd borrowed RM1.5m to finance the production of its plant, which was expected to take a year to build. Work started during 20X1. For the first quarter of 20X1, only RM700,000 was required for the construction of the plant. The remaining RM800,000 was only required from 1 April 20X1 onwards. Hence, from 1 1 Jan to 31 March 20X1, Bakti invested the remaining RM800,000 temporarily to earn some interest income. The loan rate was 7% and Bakti Bhd can invest surplus funds at 3%. Required Compute the borrowing costs which may be capitalised and consequently cost of the plant as at 31 December 20X1. MERS 123
Q: The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenan...
A: Introduction:- Calculation of Accounting Department's cost allocated to Department A using the step ...
Q: Modern growth theories are more optimistic than neoclassical growth theories because the former emph...
A: Modern growth theories are more optimistic than Neoclassical growth theories because the former emph...
Q: Cornet Products, Inc., summarizes the following data for the first year of operations Sales (# of ...
A: The variable costing includes the variable costs in the product cost and absorption costing includes...
Q: You are shopping around to determine which bank account yields the highest return. You have three ch...
A: Future Value = Present Value x (1 + r)^n
Q: Given the building layout for Store A, Store B, Store C, and Store D, what portion of the shared $75...
A: Total area of the Building (All stores) = Area of (Store A + Store B + Store C + Store D) = 2,500 ft...
Q: Which of the following account is disclosed in income statement? a) Expenses paid in advance b) Dep...
A: Income statement consists of revenue and expenses and net income.
Q: Provide examples of critical customer and operational performance metrics that may be included in an...
A: Introduction: The performance measures discussed have exclusively relied on financial accounting mea...
Q: GameGirl, Incorporated, has the following transactions during August. August 6 Sold 88 handheld game...
A: Under perpetual inventory system, inventory and cost of goods sold are updated for each sale/purchas...
Q: Use the following information for the Quick Studies below. (Algo) [The following information applies...
A: Depreciation: It implies to a reduction in the book value of fixed asset because of continuous usage...
Q: Depreciation for Partial Periods Storm Delivery Company purchased a new delivery truck for $45,000 ...
A: 1) The straight-line method of depreciation: The straight-line method of depreciation is a technique...
Q: Lemony Lemonade has 3,200 gallons of lemonade in WIP Inventory, with 76% of materials already add...
A: Equivalent units for conversion costs = No. of units in WIP inventory*Degree of completion
Q: Problem 9.4A (Static) Preparing a bank reconciliation statement and journalizing entries to adjust t...
A: The bank reconciliation statement records the cash balance as per book and as per bank statement and...
Q: Dec. 6 Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is...
A: Journal entry is the process of recording the transactions. The transactions in the question took pl...
Q: Journalize the corrections for the following transactions: 1. A cash sale of $1,000,000 has been re...
A:
Q: Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash bu...
A: The cash budget is prepared to record the cash collection and cash disbursements made during the pei...
Q: A company has the following budgeted and actual cost data for manufacturing 2,000 Product X units: D...
A: Calculation of gross profit for 15 product are as follows
Q: How much is the gross estate under Absolute Community of Property? * Mr. J. Chavez died leaving the ...
A: The Conjugal partnership of gains is a proposition that helps in the determination of the gross esta...
Q: BluStar Company has two service departments, Administration and Accounting, and two operating depart...
A: The service department costs can be allocated to operating departments using various methods as dire...
Q: come statement
A: In this question, we have to make an income statement Reducing expenses, gross profit from sales rev...
Q: Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contributio...
A: Total breakeven point = Total fixed costs / Weighted average contribution margin per unit where, Wei...
Q: Multiple Choice S1 = $105,000 + 0.20S3. S1 = $105,000 + 0.80S2 + O.20S3. S1 = $105,000 + 1.00S3. S1 ...
A: The reciprocal method uses simultaneous equations to allocate the costs incurred by service departme...
Q: b. Ir all direct materials are placed in process at the beginning of production, determine the direc...
A: The equiavlent units are the units completed during the period.
Q: Identify methods for using and analysing working capital cycles ( max. 300 words )
A:
Q: A partially owned subsidiary sold a machine to its parent at a gain. In the year subsequent to the y...
A: The question is related to Consolidation. In the given case subsidiary company sold a machine to its...
Q: The following data are available for the Cash in bank of a company for February of the current year:...
A: Bank Reconciliation Statement In the bank reconciliation statement the primary aim to reconcile the ...
Q: For May, Young Company has budgeted its cash receipts at P125,000 and its cash disbursements at P138...
A: Cash borrow during the month = Desired cash balance - Actual cash available where, Actual cash avail...
Q: 2. If P500.00 is deposited in an account at the beginning of each year for 6 years at an annual inte...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: Sam and Devon agree to go into business together selling college-licensed clothing. According to the...
A: In this case, the applicable section is Section 351 as Sam will get 80 percent of the stock in the c...
Q: Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs...
A: Computere service costs allocated to the Division B = Computer time in hours od Division B x Compute...
Q: The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:...
A: Introduction: Bank reconciliation statement: To reconcile the difference between cash and pass book ...
Q: Which of the following is wrong? A. If the seller is a non-VAT registered seller, the government sha...
A: Seller A person who provides goods, products, or services to their customers is known as a seller. I...
Q: At the start of the year, the balance on Sara's capital account was $55.689. During the year Sara ma...
A: Lets understand the basics. For calculating ending balance of capital account, we will need to use b...
Q: The numerator for the quick ratio is calculated by: Select one: a. Deducting inventory and prepaid e...
A: The question is related to Ratio Analysis. The Quick Ratio is sometimes called the "acid-test" ratio...
Q: In September 2021, Geralds Autoparts sold P1,000,000 (VAT exclusive) worth of goods to the governmen...
A: As a rule, government or any of its political sub division, instrumentalities, or agencies, includin...
Q: Keri & Nick Consulting’s partners’ equity accounts reflected the following balances on August 31, 20...
A: Entries are used to record financial transactions. To generate a journal entry, you enter transactio...
Q: Which of the following shall be exempt from value-added-tax? I. Sales by agricultural cooperatives t...
A: The correct answer for the above mentioned question is given in the following steps for your referen...
Q: O what will be the general entry?
A: Journal entry is a recording phase of business transactions.
Q: Which of the following is correct? a. A person with vatable sales or receipts not exceeding the...
A: Value-added tax: The value-added tax refers to an indirect tax or sales tax that lived on the consum...
Q: The net income for the year ended on January 31, 2020 for SC Corporation was $139,000. Additional da...
A: An increase or decrease in cash from operating activities means the flow of cash into or from the bu...
Q: Carlos, a non-resident citizen, died abroad intestate (without a last will and testament) during the...
A: The correct answer for the above question is given in the following steps for your reference.
Q: Consider the following four debt securities, which are identical in every characteristic except as n...
A: Explanation: Bond X : The bond with the highest risk is BBB bond. A BBB bond is rated at higher ris...
Q: Exercise 8-23 (Algo) LIFO liquidation [LO8-4, 8-6] The Churchill Corporation uses a periodic invento...
A: LIFO assumes that inventory purchased latest is sold first. In the closing inventory 9,900 units are...
Q: 3. Give an example of CVP and Compute BEP, Changes in Net Income, Margin of Safety, and Degree of Op...
A: The CVP Analysis is the analysis of the cost accounting i.e. the a way to find out how changes in va...
Q: Sipan Retail Company was recently created with a beginning cash balance of $12,000. The owner expect...
A: Solution Concept In preparation of the cash budget the cash inflow and outflow are to be considered ...
Q: Sales Mix Unit Contribution Margin Lawnmowers 20 % $32 Weed-trimmers 50 % $24 Chainsa...
A: In Cost accounting the concept of marginal costing help in finding the contribution margin of each p...
Q: Borrowings that are contracted to be paid after 36 months us classified as non-current liabilities S...
A: Borrowings - Borrowings is the amount borrowed from the lender for some specific purpose to be repai...
Q: Assets Liabilities and Owners' Equity Reserves $200 Deposits $1,600 Loans $800 Debt $250 Securities ...
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...
Q: For Sheridan Company, sales is $2000000, fixed expenses are $900000, and the contribution margin rat...
A: Solution: Fixed expenses = $900,000 Target net income = $700,000 Contribution margin ratio = 36%
Q: Ridley Corporation i a sponsors a defined ben to the plan on January
A: Notes : According to Generally Accepted Accounting Principles (GAAP), net pension spending in the Un...
Q: A number of issues are faced in the area of financial reporting. Select four issues that you conside...
A: Solution Financial reporting is used to disclose the financial information and performance of a comp...
Step by step
Solved in 2 steps
- QUESTIO 1 Benson Limited is constructing a Power Plant which was completed on 31st December 2019. The company obtained a bank loan of R1,000,000 at a rate of 15% per annum to construct the Power Plant on 1st January 2019. As of 31st December 2019, Benson Limited also had the following loans outstanding: I. 18% 5-year loan Note of R1,500,000 II. 14% Debentures of R1,000,000 Expenditures on the project were made as follows: I. On the 31st March 2019, R600,000 was incurred; II. R800,000 was incurred on 30th June 2019; III. The final expenditure incurred was R300,000 on 31st December 2019. During the year Benson Limited invested R400,000 of the bank loan for 2 months at an interest of 9% per annum. Required: Determine the amount of borrowing costs to be capitalized and expensed.quest 1 Benson Limited is constructing a Power Plant which was completed on 31st December 2019. The company obtained a bank loan of R1,000,000 at a rate of 15% per annum to construct the Power Plant on 1st January 2019. As of 31st December 2019, Benson Limited also had the following loans outstanding: I. 18% 5-year loan Note of R1,500,000 II. 14% Debentures of R1,000,000 Expenditures on the project were made as follows: I. On the 31st March 2019, R600,000 was incurred; II. R800,000 was incurred on 30th June 2019; III. The final expenditure incurred was R300,000 on 31st December 2019. During the year Benson Limited invested R400,000 of the bank loan for 2 months at an interest of 9% per annum. Required: Determine the amount of borrowing costs to be capitalized and expensed.QUESTION 7 A company receives a 5-year $100 million loan commitment from Wells Fargo at a fixed rate of 4.5%. The up-front commitment fee is 40 basis points and the unused portion of the loan is charged 15 basis points. The bank borrows a total of $45 million at the beginning of the year and none thereafter. The following is true, except: The interest paid on the drawdown amount for the full year is $2,025,000. The interest rate paid on the drawdown amount for the full year is 4.90% The fee for the loan commitment for the full year is $400,000. The fee for the unused portion of the loan commitment for the full year is $82,500 QUESTION 8 A bank agrees to buy three-month forward €500,000 at $1.14/€ from its client and simultaneously sells three-month €500,000 at…
- (1) On 31/12 / 20Χ0 the company V Corporation acquired a machine on credit. For the repayment, the company will pay an amount of € 7,000 on 31/12 / 20X0, an amount of € 5,000 on 31/12 / 20X1 and an amount of € 5,000 on 31/12 / 20X2.The usual credit terms are the full repayment of the price with the purchase. The annual market rate for these cases is 14%. Relevant calendar entries are requested assuming that V Corporation complies with IAS.Question 3 You have been appointed as a financial consultant by the directors of Cochin Holdings. They require you to calculate the cost of capital of the company. The following information is available on the financing of the company: · R10 000 000, financial lease due in 5 years and the current yield-to-maturity is 10%. Prepare a loan amortization schedule Hint: the annuity factor is 3.7908Q1 Benson Limited is constructing a Power Plant which was completed on 31st December 2019. The company obtained a bank loan of R1,000,000 at a rate of 15% per annum to construct the Power Plant on 1st January 2019. As of 31st December 2019, Benson Limited also had the following loans outstanding: I. 18% 5-year loan Note of R1,500,000 II. 14% Debentures of R1,000,000 Expenditures on the project were made as follows: I. On the 31st March 2019, R600,000 was incurred; II. R800,000 was incurred on 30th June 2019; III. The final expenditure incurred was R300,000 on 31st December 2019. During the year Benson Limited invested R400,000 of the bank loan for 2 months at an interest of 9% per annum. Required: Determine the amount of borrowing costs to be capitalized and expensed.
- Abc comonay has obtained a bank of RS.20 million on 01st april 2016 at the interest rate of 15% per annum to construct a plant.the construction of the manufacturing plant has been started on 01 st may 2016 and completed on 31st march 2107.the un-used amount of the bank loan was temporarily invested and earned an interest income of RS.300,000/- during the yer ended 31st march 2017 You are required to:compute the borrowing cost that could be capitalized on the new manufacturing plant as at 31 st march 2017.Question 6 The following events occurred during the year ended 30 June 2020 for Electrical Limited. On 1 June 2020, Electrical Ltd. signed a three-month 11% per annum note payable to purchase a new equipment costing $72,000. Interest and principal are paid at maturity. On 29 June 2020, Electrical Ltd. received deposit in advance of $11,000 from a construction company for completing the electrical work for a new project during the next 6 months. Electricity charges of $46,000 from 24 April to 23 June are payable on 10 July. Electrical’s main product is backed by warranty. Sales of this product for the year totalled $445,000. The opening balance of provision for warranty claims was $12,720. During the year, Electrical’s warranty expense was $38,040 and claims paid to customers totalled $30,240. June sales totalled $312,000. Electrical Ltd. collected GST of 10% on this amount. This is due to be paid to the tax office by the seventh day of the following collection. On 30 June 2020,…Problem 21-02 b-f On January 1, 2020, Bridgeport Company contracts to lease equipment for 5 years, agreeing to make a payment of $145,088 at the beginning of each year, starting January 1, 2020. The leased equipment is to be capitalized at $605,000. The asset is to be amortized on a double-declining-balance basis, and the obligation is to be reduced on an effective-interest basis. Bridgeport’s incremental borrowing rate is 6%, and the implicit rate in the lease is 10%, which is known by Bridgeport. Title to the equipment transfers to Bridgeport at the end of the lease. The asset has an estimated useful life of 5 years and no residual value. Prepare the journal entries that Bridgeport should record on January 1, 2020 Date Account Titles and Explanation Debit Credit January 1, 2020 enter an account title To record the lease enter a debit amount enter a credit amount enter an account title To record the lease…
- Problem 21-02 b-f On January 1, 2020, Bridgeport Company contracts to lease equipment for 5 years, agreeing to make a payment of $145,088 at the beginning of each year, starting January 1, 2020. The leased equipment is to be capitalized at $605,000. The asset is to be amortized on a double-declining-balance basis, and the obligation is to be reduced on an effective-interest basis. Bridgeport’s incremental borrowing rate is 6%, and the implicit rate in the lease is 10%, which is known by Bridgeport. Title to the equipment transfers to Bridgeport at the end of the lease. The asset has an estimated useful life of 5 years and no residual value. What amounts will appear on the lessee’s December 31, 2020, balance sheet relative to the lease contract? BRIDGEPORT COMPANYBalance Sheet (Partial) December 31, 2020 Assets select an opening section name Current Assets Current Liabilities Intangible Assets Long-term Investments Noncurrent Liabilities Property, Plant and Equipment…QUESTION THREE On 1 January 2011, Godson Ltd entered into a GHC11,000,000 contract for the construction of an office complex in Kumasi. The building was completed at the end of December 2011. During the period, the following payments were made to the contractor; Payment Date Amount (GHC'000) 1 January 2011 1,000 31 March 2011 3,000 30 September 2011 6,000 31 December 2011 1,000 Total 11,000 Godson's borrowings as at its year end of 31 December 2011 were as follows ; 10% 4 years Loan Note with simple interest payable annually, which relates specifically to the building project; debts outstanding at 31 December 2011 amounted to GHC3,500,000. Interest of GHC325,000 was incurred on these borrowing during the year, and interest income of GHC100,000 was earned on these funds while they were held in anticipation of payment.12.5% Five-year Loan Note with Simple interest payment annually; debt outstanding at 1 January 2011 amounted to GHC5,000,000 and remained unchanged during the year.10%…38 . China Banking Corporation granted a loan to a borrower on January 1, 2020. The interest rate on the loan is 10% payable annually starting December 31, 2020. The loan matures in five years on December 31, 2025. The data related to the loan are: Principal amount 6,000,000 Direct origination cost 92,250 Origination fee received from borrower 525,000 Indirect origination cost 100,000 The effective rate on the loan after considering the direct origination cost and origination fee received is 12%. What is the carrying amount of loans receivable on December 31, 2021?