On October 1, 2021, Neon Company purchased a P2,000,000 face value 10% debt instrument paying a total of P1,977,800 and classified this as investment at fair value through profit or loss. The effective rate for this type of investment is 12%. The debt instrument pays interest semi-annually on June 1 and December 1. On December 31, 2021, the fair market value of the instruments is 97. How much is the total amount reported in Neon Company’s profit or loss in 2021?

Q: Naper Inc. manufactures power equipment. Naper has two primary products-generators and air compresso...

A: The activity-based costing (ABC) method assigns overhead and indirect expenses to connected products...

Q: A credit sale of $3,600 is made on July 15, terms 2/10, n/30, on which a return of $200 is granted o...

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

Q: On April 1, 2017 the Reba Company purchased 10%, $800,000 bonds of the Trading Up Company at par plu...

A: investment in trading securities are to be accounted as per Fair value through profit or loss accoun...

Q: The following items were deduced from the accounting records of JC Company’s income statement for th...

A: "We’ll answer the first question since the exact one wasn’t specified. Please submit a new question ...

Q: Oxmoor Corporation prepared the following adjusted trial balance.                                   ...

A: Income statement forms a part of financial statements and is prepared with a view to ascertain the n...

Q: A sole proprietor may use both cash basis and accrual basis accounting, but only when the business a...

A: Cash Method of accounting:  It is a very easy to use accounting method, where the incomes are recogn...

Q: Outline the anti-avoidance provisions as they relate to the transfer of property to a child, a trust...

A: General Anti-avoidance Rule (GAAR) is a concept which generally empowers the Revenue Authority in a ...

Q: Which statements below are true? 1. LCM and LCNRV may be applied by individual products, by prod...

A:

Q: Euclid acquires a 7-year class asset on May 9, 2021, for $80,000 (the only asset acquired during the...

A: Calculation of cost recovery deduction are as follows

Q: Case Analysis Case 1 Maria has extra money, and she is planning to buy certain income earning assets...

A: Maria wants an investment option where she gets money in parts or full, whenever she wants.  The bes...

Q: The Mendholm Company entered into the following transactions:a. Performed services on account, $21,5...

A: Sno. Transaction  Assets      =   Liabilities         +   Stockholders Equity   Cash   Accounts Re...

Q: Cullumber Markets imports and sells small bear-shaped piñatas. In planning for the coming year, the ...

A: Preparation of contribution margin income statement from above cases are as follows:

Q: Following is the shareholders' equity section of the balance sheet of the Optimum Corporation: Share...

A: A common stock dividend is the dividend paid to common stock owners from the profits of the company....

Q: Financial information is presented below: Operating Expenses $ 90,000 Sales Returns and 26,000 Allow...

A: The gross profit margin is calculated as gross profit divided by net sales revenue. Gross profit = S...

Q: Below is a summary of all transactions of Mason Furniture for the month of August 2021.           ...

A: CFS stands for Cash flow statement which is the statement that is prepared by companies in order to ...

Q: Trotman Company had three intangible assets at the end of 2019 (end of the accounting year):   Comp...

A: The question is related to Intangible Assets. The amortization in case of Intangible Assets is calcu...

Q: 3. Daniel Corp.'s trial balance reflected the following account balances at December 31, 2021: Accou...

A: Current Assets Total = Accounts Receivable + Trading Securities + Cash + Inventory + Prepaid Expense...

Q: On January 1, 2020, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial informatio...

A: Calculation of income tax expense and income tax payable in case:  if Abbey and Benjamin file a con...

Q: B1. The following information related to ABC LLC Required: (a) Case 1: Calculating dollar amount of ...

A: 1) The markup on cost is the amount added to the cost of the product to arrive at selling price Jean...

Q: Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses the perpetualinvento...

A: To keep track of financial transactions, journal entries are utilized. You enter transaction informa...

Q: What is the approximate implicit rate of return on the capital leases? Select one: а. 9.1% b. 11.7% ...

A: Solution:- Given, Initial investment - (CF0) = $25,952                                (CF1) = $12,93...

Q: iny Tots Daycare Centre provides daycare for children Mondays through Fridays. The business had $140...

A: The question is related to Marginal Costing. The Basic equation is as under  Sales = Variable Cost +...

Q: Rank the following inventory methods in terms of their record-keeping cost.  For answer choices, the...

A: LIFO stands for the last in first out, it is a method of valuing the inventory which the company is ...

Q: Erie Company reported the following comparative balance sheets:                                     ...

A: Statement of cash flows forms a part of financial statements and is prepared with a view to ascertai...

Q: Johnson Corporation’s bank statement for October reports an ending balance of $22,381,whereas Johnso...

A: A bank reconciliation statement reconciles an entity's bank account with its financial records by su...

Q: Find the earings of Mr.toun as Merricks multiple piece rate

A: Wage rate is the rate of labor which has been earned by the labor by working to manufacture a produc...

Q: A company shows the following balances: $2,500,000 Sales Revenue Sales Returns and 450,000 Allowance...

A: Gross profit is the amount of profit earned by an entity after spending on all the expenses to earn ...

Q: Which of the following is true about the operating cycle concept? It causes the distinction between...

A: Operating Cycle: The operating cycle is the time required for a company's cash to be put into its op...

Q: amounted to P126,700. The foods and drinks b nightclub are being served by Tiberio, a non-VA uring t...

A: Amusement tax refers to the form of tax levied on any source of commercial entertainment services pr...

Q: Partners Mel and Jay each have 200K capital balance and share profit and loss in a ratio of 3:2 resp...

A: The liquidation is a situation where existing partnership comes to an end.

Q: Bank of China has the following items on its balance sheet. Require reserves of $150 billion Excess...

A: The balance of payments for a country or nation is comparable to a balance sheet for a company or bu...

Q: During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours ...

A: Total Labor Cost = Total Labor Cost for Job 200 + Total Labor Cost for Job 305 Total Labor Cost for ...

Q: Assume an investor purchases bonds at a premium the bonds are to be held as a long-term investment w...

A: When a Bond is issued at premium, the interest revenue is always less than periodic amount of cash r...

Q: 81 Which of the following is correct? I.      Direct origination costs – added to principal II.    ...

A:  Origination Fees: It is the fees charged by the bank against the borrower for the creation of loan....

Q: 2. The following items were deduced from the accounting records of JC Company's income statement for...

A: Answer:-  Administrative expenses definition:- Administrative expenses are those expenses which are ...

Q: Perfect Co. discovered the following errors in 2022. Identify the error that Perfect will not need ...

A: Inventory refers to the goods held by an entity for the purpose of production or sale. Inventory may...

Q: On October 1, 2021, Neon Company purchased a P2,000,000 face value 10% debt instrument paying a tota...

A: A profit and loss statement is a financial statement that shows a company's income and expenses over...

Q: Dexter company manufaturing costd were as follows: Direct material and Direct Labor P 100,000 Depr...

A: Lets understand the meaning of prime cost. Prime cost is a cost incurred to manufacture the product ...

Q: merchandise to

A: Given: Accounts receivable $109,000 doubtful accounts $10,000

Q: Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit. The sales...

A: Formula: Sales revenue = Sales price per unit x Number of units sold

Q: A credit sale of $4,000 is made on April 25, terms 2/10, n/30, on which a return of $250 is granted ...

A: Here terms 2/10, n/30 means 2% discount will be given if payment is made within 10 days.  And final ...

Q: For Dingle Corporation, the following amortization table was prepared when $400,000 of 5-year, 7% bo...

A: Solution Journal is the company's primary book in which all business transactions are recorded accor...

Q: Which of the following transactions would cause the current ratio to increase (assumingthe current r...

A: The current ratio is frequently used to assess a company's capacity to meet current obligations. A c...

Q: Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers...

A: 1 ) Contingent liability is a liability that happen to occur on happening of an event or incident .A...

Q: he following information is from Bluff Run Golf Courses. The company runs three courses and the July...

A: The Income Statement for the month ending July 31st, 2018 is given. 

Q: A credit sale of $3.600 is made on July 15, terms 2/10, n/30, on which a return of $200 is granted o...

A: Formula: Cash received = Sales amount - Discount amount

Q: 16. Revenue cannot be recognized unless delivery of goods has occurred or services have been rendere...

A: Since you have posted multiple questions we will do the first one for you.  To get the other questio...

Q: 2. Daniel Corp.'s trial balance reflected the following account balances at December 31, 2021: Accou...

A: Current Assets = Accounts Receivable + Trading Securities + Cash + Inventory + Prepaid Expenses

Q: 52 Gains or losses on changes in fair value of debt investment classified as amortized cost: Group ...

A: As accounting standard Following is the correct answer

Q: Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value ...

A: Solution: Under dollar value LIFO method of inventory valuation base year costs of Inventories are u...