On January 1, 2022, Kristine Compar transaction cost of P100,000. The mature on January 1, 2027 and pay
Q: During your audit of the books of Antigua Corporation for the year ended December 31, 2021, you disc...
A:
Q: Which of the following is not a counterbalancing error? O Omission of accrued interest expense at ye...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: After a year of operation, they suffered a big loss and decided to terminate their business and as o...
A: Corporation is the business which is formed or started by group of individuals. The owner of corpora...
Q: MLBC Corp. manufactures a particular product component. Manufacturing costs per unit for 10,000 unit...
A: Total manufacturing cost = Prime cost + Variable overhead + Fixed overhead Fixed overhead = Avoidabl...
Q: s and used the house for personal purposes for 12 days. Rental income was $65,00 =xpenses were $67,0...
A: The answer is stated below:
Q: What rate compounded monthly was charged on a loan of ₱3500.00 repaid in monthly installments of ₱10...
A: Interest rate refers to the rate that is charged by the lender on the amount blended by them to the ...
Q: As per the accrual concept of accounting, any financial or business transaction should be recorded: ...
A: The correct answer for the above question is given in the following steps for your reference.
Q: The following data taken from the books of the taxpayer are for th Revenues P2,000,000 Hotel rooms D...
A: In this question, we have to find output vat for the quarter, Creditable VAT for the quarter, and VA...
Q: Review of internal control system is very important for the auditor as the effectives of internal co...
A: Review of Internal Control is done by the auditor to check the extent of effectiveness of these inte...
Q: The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $6...
A: Answer 1) Calculation of Break-even point in rooms Break-even point in rooms = Total Fixed cost per ...
Q: Gregor's Gewgaws provides the following income statement information for this fiscal year: Revenues ...
A: Return on investment is one of the profitability ratio which shows how much net income has been earn...
Q: ARR Inc. produces at 9 variable cost and 4 fixed cost a product that is selling at 20. Currently, th...
A: In case of special orders, the minimum price to be charged will be the variable cost of the product ...
Q: The COSO Enterprise Risk Management Framework ___ A. stresses that effective risk management is com...
A: Risk Assessment: A risk assessment is the consolidated exertion of recognizing and examining potenti...
Q: on-recording of purchases during the current and the non-inclusion of the goods purchased in ending ...
A: Errors in accounting are the mistakes conducted while entering the accounting transactions in the bo...
Q: On December 31, 2021, Cullumber Company had 1,290,000 shares of $6 par common stock issued and outst...
A: As on 31.12.2021 Common Stock 1290000 share of $6 per Share $ 77,40,000 1290000 shar...
Q: Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided...
A: Standard costing means where standard is set for various cost element and actual cost is then compar...
Q: Juana, a Filipina died in Ukraine left the following properties House and lot in Ukraine 1,500,000 V...
A: The correct answer is given in the following steps for your reference
Q: Which of the following statements regarding accounting change is correct? a. Change in depreciation...
A: Accounting changes means when there is some change in the process and methodologies related to accou...
Q: Hongtao is single and has a gross income of $92,700. His allowable deductions for adjusted gross inc...
A: Solution Taxable income refers to any individual's or business compensation that is used to determin...
Q: Princess company began operations on January 1, 2020 by issuing at 15 per share one-half of the 950,...
A: given Princess company began operations on January 1, 2020 by issuing at 15 per share one-half of ...
Q: ABC Inc. follows IFRS for financial reporting purposes and has established a defined benefit pension...
A: Pension Benefit Obligation The calculation of pension benefit obligation to added up the service co...
Q: On May 31, RDC Company had a cash balance per books of $13,022. The bank statement from City Bank on...
A: Bank reconciliation statement is represented in a tabular format, that shows the differences between...
Q: What is the carrying amount of the loan receivable on December 31, 2021?
A: Carrying amount of the loan receivable is the amount of loan which is due and the present value of t...
Q: The key accounting considerations relating to accounts payable are: Determining their existence and ...
A: Accounts payable is a current liability. As per IAS 1, Presentation of financial statements, Curren...
Q: Upon inspection of the records of Eisenhower Company in connection to its financial statement audit ...
A: * Prepaid insurance for 3 months of 2022 is adjusted as they are paid in advance * Opening inventory...
Q: Business that are exempt from output VAT but entitle to input VAT are A. Vat Exempt Persons B. Vat...
A: Value Added Tax is a novel form of levying tax on goods and services. It is paid to the credit of go...
Q: 20. Selecta Corp manufactures ice creams; magnum and cornetto. The following are the information for...
A: Introduction:- Calculation of Per pool cost as follows under:- Activity pool Activity Base Budge...
Q: Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget ...
A: Static budget = Actual Results +/- Variances Flexible budget are calculated on the basis of the unit...
Q: Examine some of the limitations of financial statements and suggest ways to overcome them.
A: Financial Statements are organised summaries of detailed information about financial position and pe...
Q: Depreciation of equipment during 2021 was overstated by P 16,000. What would be the adjusting entry ...
A: An adjusting journal entry is a journal entry made in a company's general ledger at the end of an ac...
Q: Find the future value of the ordinary annuity. Interest is compounded annually. R=8000; i=0.07; n=15...
A: Future value of ordinary annuity = P x [(1 + i)^n - 1]i where, P = Annuity amount i = rate of inte...
Q: to set up a fund for his son's edu the beginning of every 3 months ounded semi-annually, what amo
A: Annual percentage rate (APR) refers to the annual interest rate which is implied on the principal va...
Q: Splish Brothers Inc. reports a $24000 increase in inventory and a $6000 decrease in accounts payable...
A: The question is based on the concept of Cost Accounting.
Q: PROBLEM 1: The following events and transactions relate to the shareholder's equity accounts of the ...
A: 1)On Jan 1 Ordinary shares issued at P15 means share premium of P10 Preference share issued at P60 ...
Q: In year 2022, payment of rent for the month is debited to Rent Income. What is the effect of the err...
A: Solution Concept When the expense is not recorded the effect is understatement of the expenses and i...
Q: Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made th...
A: Organizational expenses are those which are directly related to the formation of the firm. If the co...
Q: Businesses that are exempt from output and input VAT are
A: VAT is value added tax which is paid at each stage of supply chain. The input tax is paid when there...
Q: On January 1, 2021, SMC decided to dispose of an item of plant that is carried in its records at a c...
A: Impairment loss is the difference between the carrying value of asset and the recoverable amount of ...
Q: AJ Construction is in the process of closing its operations. It sold its five-year-old Caterpillar 2...
A: Answer) Calculation of Book Value at the end of 5th year Book value at the end of 5th year = Origina...
Q: Prepare the journal entries to record the pension expense and the company's funding of the pension p...
A: Journal entry is the first step in recording financial transactions in the books of company. It must...
Q: What is the effect of omission of accrued expenses in expenses during year 2 after the year of error...
A: Answer) The correct Option is UNDERSTATED Justifications: If the accrued expenses for year 1 are not...
Q: Ana, Roro, Reiji, Rnold, Gina and Harold are wondering what form of business they are going to put u...
A: Here Six Owners/ founder want to start business with the contribution of capital in the form of asse...
Q: beginning inventory and purchases of EZslide snowboards during September. During the same month 103 ...
A: Solution: Computation of COGS and ending inventory - Periodic FIFO Particulars Cost of goods av...
Q: A serious exposure in the revenue cycle is customer dissatisfaction. What is the related threat and ...
A: In this question we tell about a serious exposure in the revenue cycle is customer dissatisfaction.W...
Q: If a bank has the following ratios, it can pay up to of its earnings as dividends. Tier 1 leverage =...
A: In this question we will find Earning as dividend Given, Tier 1 leverage = 4.7 % Tier 1 common equit...
Q: I woud like to know what is the formula for accumulated deficit and cash and cash equivalents (the p...
A: In this question we write formula for accumulated deficit and cash and cash equivalents.
Q: Vaasa Chemicals makes a product by way of two processes - Mixing & Refining. Its process costing sys...
A: Answer ; Given that : Units : Work in progress inventory, July = 0 Started production = 50,000 Compl...
Q: True or False A NY LLC owned solely by a NY nonresident individual is sold during the tax year. ...
A: The following are subject to tax on NY source income: Non-resident individual Estate Trust Part-yea...
Q: PROBLEM #2 BizKid Company's adjusted trial balance on August 31, 2011, its fiscal year-end, follows....
A: Financial statements are those statements which are prepared at the end of accounting period for the...
Q: For the month of December, the records of ABC Corporation show the following information: Gross sale...
A: Gross sales = cash sales + credit sales Credit sales = Gross sales - cash sales = P120,000 - P60,00...
Step by step
Solved in 2 steps with 1 images
- 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?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.