On January 1, 2022, Fancy Co issued $100,000 in 10 year bonds. The bonds have a stated rate of 5% but are issued at a discount as the market rate is 7%. Because the market rate is higher, Fancy receives the present value which is $92,640. The coupon is paid annually on December 31st of each year. Provide the journal entries for Jan 1, 2022, and Dec 31st, 2022.

Q: SLO-5.3. If the credit terms are 2/10, n/30, the credit period is days. 010 030 02 OIndefinite

A: The term indicates that if the payee paid the amount within stipulated time then he is eligible for…

Q: XYZ company provided the following information: $30,000 Salms Accounts payable Seling expenses 3,000…

A: The gross profit is calculated as difference between sales and cost of goods sold.

Q: The following data apply to Stratford Ltd: Direct materials inventory, beginning of the year $5,500…

A: Formula: Direct materials used = Beginning Direct materials + Purchases during the period - Ending…

Q: Level of Activity 2000 units 3500 units 6000 units Revenue       Variable costs…

A: Formula: Contribution Margin = Sales - Variable costs Contribution Margin per unit = Contribution…

Q: Illustration: Cost of Purchase ABC Co., a VAT player, imported goods from a foreign supplier and…

A: cost of purchase include all the purchase costs plus the import duties and non refundable taxes and…

Q: On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the…

A: As stated in the query Phil's Pinoy Trading, which he owns and operates, was incorporated on June…

Q: Differentiate between centralized and decentralized operations. Differentiate between a profit…

A: Differentiate between centralized and decentralized operations. When decision making authority…

Q: Write a response to Cory. Explain your position.

A: Bonus is the amount which is given to the employee which is usually based on certain conditions and…

Q: Sales and Production Budgets

A: Solution;- 1)Prepare a sales budget for each quarter and for the year in total. Show sales by…

Q: SLO-1.1. The principle of Accounting that requires revenue recorded as soon as it is earned is…

A: Accounting principles means those set of standards which is followed while preparing the books of…

Q: 0 to restore in 2018. T

A: Adjustment Journal Entry Adjustment journal entry which are provided by the business entity which…

Q: Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Johnston…

A: calculation of above requirement are as follows

Q: How much cash is received from sales to customers for year 2021? Assume all the sales were made on…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Given the following information, compute the current ratic Cash $ 120,000 Accounts receivable…

A: Lets understand the basics. Current ratio indicates firm's ability to pay its short term obligation…

Q: SLO-3.3. Liabilities are reported on the OIncome Statement Ostatement of Owner's Equity Ostatement…

A: Solution 3.3 Liabilities are the present obligation as a result of past event that requires outflow…

Q: A gain or loss on disposal of a plant asset is determined by comparing the O a) book value of the…

A: Book value of plant is also called as carrying  value.  Book value  = Total cost  - Accumulated…

Q: Yeopay Plumbing Supply accepts bank credit cards and offers established plumbers charge accounts…

A: The question is based on the concept of Cost Accounting.

Q: Appendix: EPR Rachelle Razer has taken a job as production superintendent in a plant that makes,…

A: EPR is determined by taking under-root of the division of multiple of 2, annual quantity, and set up…

Q: FG Corporation has a debt to equity ratio of 1.75x compared with the industry average of 1.84x.…

A: Debt to equity ratio is a metric to measure the solvency position of the business. The long-term…

Q: The following is the adjusted trial balance of Sierra Company. Sierra Company Adjusted Trial Balance…

A: 1. Balance Sheet - This Statement shows the balance of assets liabilities and Equity as of the…

Q: American Laser, incorporated, reported the following account balances on January 1. Debit Credit…

A: Dividends are declared from the retained earnings , hence declaring of dividends decrease the…

Q: Marla Davis has a $50,000 outside basis in her partnership interest. She receives the following…

A: Solution: Outside basis - money received in the final distribution in ( payable basis). If the…

Q: on the 4. Partnership Activities. (Obj. 2) Indicate how each of the following items is reported…

A: Partnership taxable income is the one which is to be paid by the partners as per the percentage…

Q: id an advance 5,000 as the me rchased equipm he remaining ar

A: Transaction Worksheet: The Accounting Transactions worksheet includes the unadjusted Trail Balance,…

Q: 2.3 Prepare an income statement for the month using the absorption costing method.

A: Solution:- Preparation of Income statement using absorption costing as follows under:-

Q: SLO-4.2. A necessary element of internal control is ODatabase OSystems design. OSystems analysis.…

A: Internal control is a set of procedures followed to achieve efficiency and effectiveness in the…

Q: SLO-2.2. are necessary at the end of an accounting period because some account balances do not show…

A: Solution:- 2.2)the following are necessary at the end of accounting period because some account…

Q: On January 1, 2011, Mormont Company issued 9% bonds in the face amount of P2,500,000 which mature on…

A: Face Value of Bonds = P 2,500,000 Annual rate of interest = 9% Period = 10 years Interest Frequency…

Q: Tanner-UNF Corporation acquired as a long-term investment $200 million of 6% bonds, dated July 1, on…

A: During the course of economic activities of a company, it generally comes across, on occasions,…

Q: 1. Which of the following statements concerning financial ratios is incorrect? A. Accounting…

A: Financial ratios are one of the most important and powerful indicators of the measurable metrics of…

Q: Alicia has been working for JMM Corporated for 32 years. Alicia participates in JMM’s defined…

A: she is to receive 2 percent of the average salary of her three highest consecutive calendar years of…

Q: Which of the following methods of computing depreciation is variable in nature? a) Straight-line Ob)…

A: Solution: Depreciation method that is variable in nature is considered to be the method which ensure…

Q: Selling price (per unit) Units in opening inventory Units manufactured Units sold Units in closing…

A: Marginal costing method: It is also called the Variable costing method. In this method, all the…

Q: On January 1, 2015, Tyrion Company issued P4,000,000 maturity value, 12% bonds for P4,000,000 cash.…

A: Total liabilities = Maturity value of bonds + Accrued interest where, Accrued interest = Face value…

Q: The Verry Place (VP), open 365 days a year, consists of 100-room hotel with a 50-seat restaurant…

A: 1. Determination of forecast for room sale in June 20X1   A B C D A×B×C×D Type No of rooms…

Q: Hazel Gird's products come with a one-year warranty. In 2014, sales totaled 2,500 units. It is…

A: As per the accrual method of accounting, the expenditure which is related to a particular year…

Q: Sales revenue Cost of goods sold Salaries and wages expense Depreciation expense 120,000 $ 60,000…

A: Introduction: Gross profit : Deduction of Cost of goods sold from Sales revenue derives the Gross…

Q: An S corporation distributes inventory with a basis of $30,000 and a value of $60,000 to its three…

A: Introduction S Corporation is required to compute both stock and debt basis based on increase or…

Q: $ millions Total assets Total liabilities Total equity Apple Current Year $ 338,516 248, 028 90, 488…

A: The debt to equity ratio represents the availability of debt held in hands of the company as…

Q: 2. Compute for the selling price for the product Banana Loaf whose total cost is P625.00 which can…

A: Markup is the additional Profits charged over the cost to get the selling Price. Markup = (Selling…

Q: Which of the following is true about the partnership's allocation of loss?

A: As per our protocol we provide solution to the one question only but as you have asked two questions…

Q: Montello Inc. purchases a delivery truck for $14,000. The truck has a salvage value of $2,000 and is…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Prepare a letter to Kwame advising him of: (a) The advantages and dis-advantages of operating as a…

A: The letter advising Kwame Lee on the advantages and disadvantages of operating as a partnership, the…

Q: EMC began operations during 2004.  Taxable income in 2005 was $829,000.  Basis differences as of…

A: Temporary Difference is nothing but difference between Carrying amount of Assets and its tax basis.

Q: Post to general ledger

A: General ledger is the ledger book in which all the respective accounts of parties as well as the…

Q: January 1 Issued 40,000 ordinary shares at P130 per share. February 1 Issued 30,000 ordinary for…

A: In simple or easy terms shares refers to ownership in the company.The people or investors who hold…

Q: Listen Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1. Givens Brick…

A: ADJUSTING ENTRIES REFERS TO A SET OF JOURNAL ENTRIES RECORDED TO HAVE AN UPDATED AND ACCURATE…

Q: Suppose you own a mutual fund which has 13,000,000 shares outstanding. If its total assets are…

A: Calculation of net assets value are as follows

Q: The following data apply to Stratford Ltd: Direct materials inventory, beginning of the year $5,500…

A: Formula: Direct materials used = Beginning Direct materials + Purchases - Ending Direct materials

Q: 1) Tappa Corp.'s current liabilities at December 31, 2020, totaled P1,600,000 before any necessary…

A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…