On April 30, 2015, Company acquired 10%, P100,000 bonds dated January 1, 2021 at 102. If the purchase price excludes interest, how much is the initial carrying amount of the investment? If the purchase price includes interest, how much is the initial carrying amount of the investment?
Q: Annie bought one dozen smartphones for P200,000.00 with a discount of 5%. She sold half dozen at a…
A: Ratio analysis helps to analyze the financial statements of the company. The management can take…
Q: PA2. ILO 5.1 The following selected accounts and normal balances existed at year-end. Make the four…
A: As a result, diary entries are rarely utilized to document mass-production jobs. When you make the…
Q: Problem 2. During liquidation, the Partnership of Pateno, Bautista and Apalisoc became insolvent. On…
A: At the time of liquidation of a partner due to insolvency, deficiency arising must be borne by…
Q: The following table show's a credit cardholder's transactions for his credit card with statement…
A: (a) Carry-Over Balance = Total amount due in previous statement - Payment…
Q: P Incorporated purchased 80% of The S Company on January 2, 2014, when S's book value was $800,000.…
A: In the books of P, the Investment in S will initially be measured at Cost (Transaction Value). Any…
Q: L Trading Company operates a branch in Dallas, Texas. At close of business on December 31, 2008,…
A: Debit Balance of Dallas Branch: P225,770 Office equipment amount recorded by branch: P350 Amount of…
Q: ch 1, Kimmel Company sold $ ndise costing $32,000 on JP Holdings. crec of 5 а prepappa 20 90
A: The Journal Entries for sale on credit and subsequent collection as, As per guidelines, allowed to…
Q: The book value of SA Ornirat’s equity is 106,000 euros, with a ACB of 3. The company’s cash position…
A: Market value leverage ratio: - Market value leverage is the total debt divided by the total equity…
Q: DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a vertical…
A: Vertical analysis: It is a method of analyzing the financial statement in which each item is shows…
Q: Which of the following describes disjoint events? Select one: a.Planning a picnic: Event that…
A: Disjoint events are events that never occur at the same time. These are also known as mutually…
Q: I. legal cost of acquiring the patent II. operational loss during start-up period III. massive…
A: Intangible assets are those assets which brings economic benefits to it's owners and does not have…
Q: DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a vertical…
A: Vertical analysis: It is a method of analyzing the financial statement in which each item is shows…
Q: What is ‘corporate liability’. Provide examples to illustrate your answer and refer to legislation…
A: Corporate Liability is vicariously liability where the company liable for the acts of an employees…
Q: phantom shares (cash payment equal to the value of 1,200 shares) or 1,500 shares with par value of…
A:
Q: Which statements are correct concerning goodwill I. goodwill shall not be amortized because its…
A: Correct answer = (a) Statement 1 is correct which means that goodwill is perceived to have an…
Q: Selected information from the separate and consolidated statements of financial position and…
A: The amount of intercompany sales from Pau de Arco to Kati Alis during 20X9 is…
Q: 14 If a partner has a capital deficiency and does not eliminate it,
A: As per the guidelines, only one question is allowed to be solved so I am answering the first…
Q: how do i figure out book value.
A: Note: To understand better, let us explain the book value in another format as provided by you.…
Q: Aaker Corporation, which has only one product, has provided the following data concerning its most…
A: Product cost includes all the variable manufacturing expenses such as direct expenses, direct labor,…
Q: Wildhorse Company expects to have a cash balance of $52,100 on January 1, 2022. These are the…
A: Budgets are made to forecast the incomes and expenses during a particular period. Cash budget shows…
Q: Notre Company transfers a product from division N to division R. Variable cost of this product is…
A: A transfer price is based on market prices in charging another division, subsidiary, or holding…
Q: When calculating the number of shares for diluted earnings per share: Select all that apply. The…
A: The formula for Diluted EPS: Diluted EPS=Net Income-Preferred DividendsWeighted Average Number of…
Q: 1. Initial amount of the investment 2. Carrying value of the investment at the end of 2026. 3.…
A:
Q: Solutions Ltd. has prepared three forecasted demand quantities for the next period for a timber…
A: sales xxxx - variable cost xxxx contribution xxxx - fixed cost xxxx profit xxxx BEP sales…
Q: son bonit erers uotes includes the 12 % VAT and 2 Food's selling price. At what A. P700 B. P800 C.…
A: here we have to calculate sales which is not inclusive of service tax and taxes which will be the…
Q: Diversity Ltd. produces and sells a product called Star. The company is currently selling 9,560…
A: The question is related to Marginal Costing and Cost Volume Profit Analysis. The income statement as…
Q: please show given and required Determine the number of souvenir coins that must be sold per year to…
A: Break Even point: It is the situation where there is no profit or loss for the company and total…
Q: What is the net cash provided by operating activities? a. P1,100,000 b. 1,850,000 C. P2,350,000 d.…
A: The cash flow statement is the statement that depicts the inflow and outflow of cash and cash…
Q: At Jaqueline, SRL, the monthly fixed selling and administrative expenses are $259,000 and the…
A: Variable selling and administrative expense = 4500 units ×$4 =$18000 Assuming depreciation expense…
Q: nts for next six years if beginning at end
A: Calculating the present value of four equal annual deposits of $1000.
Q: What is Accounting? Bookkeeping vs. Accounting Purpose of Accounting Generally Accepted Accounting…
A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…
Q: Peter Senen Manufacturing Company has just completed its production activities for February 2019.…
A: Production Cost Report:
Q: Activities Date January 1 Beginning inventory January 8 Units Acquired at Cost 360 units @ $18=…
A: Periodic inventory system means where day to day in or out of goods is not recorded and value of…
Q: 1 A company purchased factory equipment on April 1, 2022 for $160,000. It is estimated that the…
A: Since you have posted a multiple questions, we will solve first question for you. if you want any…
Q: (a) Jabilo's basis in his partnership interest is $300,315. What is the purchase price for his…
A: Here, the net assets would be determined to find out the fair value of jabilo's share in the…
Q: True or False 1. The EUP will be the same under FIFO method and weighted average method if there is…
A: Equivalent units means where the some goods remain incomplete at the end of process and we need to…
Q: The quick ratio is 2.50 while the current ratio is 3.00. The only items presented as current assets…
A: >Financial ratios are the analysis ratios used to analyze the Financial Statement data.…
Q: The direct method as used is one method that can be used to re-assign service department cost.…
A: Overhead refers to continuing business expenses that are not directly related to the production of a…
Q: 1) Company "Y" has two service departments, DA and DB, and two production departments, P1 and P2..…
A: The department costs can be allocated to other departments using various methods as direct method,…
Q: A printing machine initially costs ₱158,000. It can be sold for ₱15,000 at the end of its 10-year…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: On December 31, 2022, Funny retired 20,000 shares of P30 par value ordinary shares held in treasury…
A:
Q: Pierre Corporation manufactures a single product that it sells for $122 per unit. The company had…
A: Introduction: Product costs refer to all expenses incurred by the company in order to generate the…
Q: Compute for the consolidated net income.
A: Particulars Quail Savannah Unrealized gain Adjustment onUnrealised gain * Consolidated Amount…
Q: she Company was organized on January 1, 2015 with authorized share capital of 100,000 shares of P20…
A: In case issue of shares for acquisition of asset or for obtaining services then the fair value of…
Q: Consider the information below for an individual: Home valued at $250,000 . Mortgage balance of…
A: Note: “As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…
Q: Quinze Seize Corp. reported the following amounts in its statement of financial position at each…
A: Cash flow statement means the statement which shows the movement of cash in the business. It include…
Q: Christina Reis is a photographer who owns Lola Lemon Photography. This is the first month of…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: 10. STU Company provided the following information for the current year: • Purchased a building for…
A: >Statement of Cash flows is one of the financial statements, and is prepared for a particular…
Q: he gross
A: Lock box is a system where that can be utilized to reduce the time between customer sending a check…
Q: A machine costs P7,000, last 8 years and has a salvage value at the end of life of P350. Determine…
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
On April 30, 2015, Company acquired 10%, P100,000 bonds dated January 1, 2021 at 102.
If the purchase price excludes interest, how much is the initial carrying amount of the investment?
If the purchase price includes interest, how much is the initial carrying amount of the investment?
Step by step
Solved in 4 steps
- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossParilo Company acquired 170,000 of Makofske Co., 5% bonds on May 1, 2016, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 2016, Parilo Company sold 50,000 of the bonds for 96. Journalize entries to record the following: a. The initial acquisition of the bonds on May 1. b. The semiannual interest received on November 1. c. The sale of the bonds on November 1. d. The accrual of 1,000 interest on December 31, 2016.On January 1, 2019, Brewster Company issued 2,000 of its 5-year, 1,000 face value, 11% bonds dated January 1 at an effective annual interest rate (yield) of 9%. Brewster uses the effective interest method of amortization. On December 31, 2023, Brewster extinguished the 2,000 bonds early through acquisition in the open market for 1,980,000. On July 1, 2022, Brewster issued 5,000 of its 6-year, 1,000 face value, 10% convertible bonds dated July 1 at an effective annual interest rate (yield) of 12%. The bonds are convertible at the option of the investor into Brewsters common stock at a ratio of 10 shares of common stock for each bond. Brewster uses the effective interest method of amortization. On July 1, 2023, an investor in Brewsters convertible bonds tendered 1,500 bonds for conversion into 15,000 shares of Brewsters common stock, which had a market value of 105 per share at the date of the conversion. Required: 1. Using the information about Brewster, answer the following questions: a. Were the 11% bonds issued at par, at a discount, or at a premium? Why? b. Is the amount of interest expense for the 11% bonds using the effective interest method of amortization higher in the first or second year of the life of the bond issue? Why? 2. Using the information about Brewster, explain the following: a. How is a gain or loss on early extinguishment of debt determined? Does the early extinguishment of the 11% bonds result in a gain or loss? Why? b. How does Brewster report the early extinguishment of the 11% bonds on the 2023 income statement? 3. Based on the information provided about Brewster, answer the following questions: a. Does recording the conversion of the 10% convertible bonds into common stock under the book value method affect net income? What is the rationale for the book value method? b. Does recording the conversion of the 10% convertible bonds into common stock under the market value method affect net income? What is the rationale for the market value method?
- Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.Refer to the information in RE13-5. Assume that on June 30, Aggie received interest on the Smith Corporation bonds. Prepare the June 30 journal entries to record the receipt of the interest. On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-years bonds with a face value of 12,000 at par plus four months of accrued interest. Prepare the April 30 journal entry to record the purchase of these available-for-sale securities.
- Mills Company had five convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight-line method) and dividends on each security during 2019. Each convertible security is described in the following table. The corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which the securities would be included in the diluted earnings per share computations.Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortizationOn July 2, 2018, McGraw Corporation issued 500,000 of convertible bonds. Each 1,000 bond could be converted into 20 shares of the companys 5 par value stock. On July 3, 2020, when the bonds had an unamortized discount of 7,400 and the market value of the McGraw shares was 52 per share, all the bonds were converted into common stock. Required: 1. Prepare the journal entry to record the conversion of the bonds under (a) the book value method and (b) the market value method. 2. Compute the companys debt-to-equity ratio (total liabilities divided by total shareholders equity, as described in Chapter 6) under each alternative. Assume the companys other liabilities are 2 million and shareholders equity before the conversion is 3 million. 3. Assume the company uses IFRS and issued the bonds for 487,500 on July 2, 2018. On this date, it determined that the fair value of each bond was 930 and the fair value of the conversion option was 45 per bond. Prepare the journal entry to record the issuance of the bonds.
