What is the annual effective interest rate on the bonds?
Q: Required information [The following information applies to the questions displayed below.] Trey…
A:
Q: could you please give me the specific calculation process of calculating EBITDA? Thank you so much
A: EBITDA (earnings before interests, taxes, depreciations and amortizations) is also called operating…
Q: Prepare the journal entries on January 1, 2025, and December 31, 2026, assuming that Bramble issued…
A: Given in the question: Number of shares issued = 4,100 Par value per share = $4 Fair Value on…
Q: Required information [The following information applies to the questions displayed below.] Diego…
A: Solution. Direct material= $25 Direct labor = $20 Variable overhead = $2 Fixed overhead=…
Q: Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information…
A: An activity-based depreciation system is a method of calculating the depreciation expense for an…
Q: Required information [The following information applies to the questions displayed below.]…
A: The cash receipts schedule is prepared to estimate the total cash collection during the current…
Q: Prepare a balance sheet in report form as of December 31, 20Y8
A: A balance sheet is an accounting report that shows a corporation's assets liabilities, and…
Q: Incorrect Question 2 Which one of the following is excluded when calculating firm's free cash flow?…
A: Free cash flows are net cash flow after adjustment of all non cash items. For calculation of free…
Q: Brewery Ipana Oy also drafts a plan where all other values remain the same as initially estimated,…
A: Cost volume profit analysis is called CVP ANALYSIS. Contribution margin is sales - variable cost.
Q: How did you find the depreciation rate to be 16.67%
A: Depreciation is used to allocate capital expenditure on assets over the use of life of an asset.…
Q: Calculate the Average Collection period for 2018 and 2017 for the Better Books Company. Assuming…
A: Average collection period is the period required to get amount of money from customers that they…
Q: 3. Suppose that, at the end of the year, a bill of exchange for $160,000.00 is owed in favor of our…
A: Interest expense refers to the cost of borrowing money from a lender, such as a bank or other…
Q: Belle Company reports the following information for the current year. All beginning inventory…
A: The cost of a product refers to the total amount of expenses incurred to produce or acquire a…
Q: Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The…
A: The depreciation expense is charged on the fixed assets as the decrease in the value of fixed assets…
Q: Preston, Incorporated, manufactures wooden shelving units for collecting and sorting mail. The…
A: The direct materials budget is the budget that is prepared to estimate the total material required…
Q: The following information is provided to assist you in evaluating the performance of the production…
A: Variance analysis is the study of deviations of actual behaviour versus forecasted or planned…
Q: 4. A firm produces and sells a product with a contribution margin of $32 per unit. The firm is…
A: Lets understand the basics. Break even point is a point at which no profit and loss arise. In other…
Q: XYZ Ltd, a British Columbia employer, awards Theresa Ray a $1,950.00 bonus that will be paid out…
A: CPP stands for Canada Pension Plan, which is a national social insurance program in Canada. CPP is…
Q: An audit report states that the auditing standards require auditors to... Perform audit procedures…
A: An auditor's report is a written letter from the auditor containing their opinion on whether a…
Q: Blossom Company issued $550,000, 15-year, 8% bonds at 96. (a) Prepare the journal entry to record…
A: Bonds are the securities issued by the entity for the purpose of raising funds from the market.…
Q: Don Juan, a single taxpayer, is the sole owner of DJ's Incorporated, an S Corporation. In 2021, DJ's…
A: Answer:- Business loss:- When the company's expenses exceed its income during an accounting period,…
Q: an, a single taxpayer, has a net long-term capital gain for the year and it is all made up of 25%…
A: Capital gains are applied when any asset is held for more than one year and they are held for more…
Q: Quantity discounts offered by suppliers of large shipments of inventory are not always recorded…
A: Quantity discounts are price reductions that are offered to customers who purchase larger quantities…
Q: Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and…
A:
Q: Two individuals who are forming a partnership ask you how they should divide the income and losses…
A: A partnership is a type of business structure in which two or more individuals own and operate a…
Q: Trey Monson starts a merchandising business on December 1 and enters into the following three…
A: Specific Identification method of inventory valuation: in this method Every unit of inventory is…
Q: Lew's Auto Repair has cash of $18,600, accounts receivable of $34,500, accounts payable of $28,900,…
A: MARKET VALUE OF FIRM ASSETS Market Value Of Firm Assets is the total Value of Assets Received when…
Q: Assume that it is January 1, 2022, and that the Mendoza Company is considering the replacement of a…
A:
Q: Chuck Wagon Grills, Incorporated, makes a single product-a handmade specialty barbecue grill that it…
A: Unit Product Cost, Uses Variable Costing = (Direct Materials + Direct Labor + Variable…
Q: The following are selected unadjusted account balances as at December 31, the year end of Joseph's…
A: The adjustment entries are prepared at end of the accounting period to adjust the revenue and…
Q: What is her medical expense deduction assuming the phase-out for medical expenses is 7.5% of…
A: Given in the question: Adjusted Gross Income = $50,000 Health Insurance company reimbursed = $8,000…
Q: PA2.) Record journal entries for the following transactions of Barrera Suppliers. A. May 12: Sold 32…
A: Journal entries for the transaction of Barrera Suppliers are as follows: Date Accounts title…
Q: Tobias owns a bowling alley which was completely destroyed this year by a tornado. The fair market…
A: Recognized gain refers to the amount of gain which is made after selling the asset and these are…
Q: Neef Corporation has provided the following data for its two most recent years of operation: Selling…
A: Fixed manufacturing overhead per unit = Fixed manufacturing overhead / no. of units produced =…
Q: Taxes on cigarette would be considered an economic consideration. A True B False (Personal note, I…
A: Tax income is an important source of revenue for governments. Taxes are levied on individuals,…
Q: Pink Company has beginning inventory of 24 units at a cost of $12.00 each on May 1. On June 5, it…
A: In case of LIFO method latest goods will be sold first. Thus ending inventory consists of goods…
Q: Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement.…
A: Information on cost per unit is required in order to determine price which should be charged from…
Q: Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: Gage Co. purchases land and constructs a service station and car wash for a total of P540,000. At…
A: Lease is defined a contractual agreement incorporated between two business entities where one entity…
Q: Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, calculate the amount…
A: The practice of identifying and disclosing lease transactions in a company's financial statements is…
Q: Discuss fully how to analyze cash flow statement.
A: A cash flow statement is a financial statement that provides information about a company's cash…
Q: BRALIRWA Ltd sells four products Following information was available at the year-end (December 31,…
A: Inventory is a key component of many businesses, and as such, it is typically presented on the…
Q: salvage value. The depreciation schedule for GAAP and tax purposes follows. Year GAAP Depreciation…
A: Solution: Journal entries : Year 1 : Date General Journal Debit $ Credit $ Dec.31,Year 1…
Q: Question 2 Tropical Fruit Partnership is a calendar year general partnership with the following…
A: Given, Note payable, BIg bank = $555,000 Note payable, pineapple ( individual ) = $370,000 Coconut…
Q: Bruce is single and has adjusted gross income for the current year of $90,000 before any deduction…
A: Passive income is income that is earned from rental property, limited partnership, or other sources…
Q: Falco owns 70% of teller. In 2021 teller sells inventory cost 77,000 to Falco for 110,000. Of this…
A: Non-controlling interest refers to the portion of a subsidiary's equity ownership that is not held…
Q: Goldberg Company is a retail sporting goods store that uses an accrual accounting system. Facts…
A: Budgeted cash collection:— It is the estimated amount of collection expected from customer during…
Q: A corporation had the following transactions involving stock investments with insignificant…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Ethan Coleman, the president and CEO of High-Tech Inc., recently stated: We are in the business of…
A: A management control system is a set of processes, tools, and techniques that an organization uses…
Q: Teall Corporation has a standard cost system in which it applies manufacturing overhead to products…
A: The total cost of production of a good comprises of the total fixed cost of production and the total…
Please do not give solution in image format thanku
Step by step
Solved in 2 steps with 2 images
- Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare 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. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 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 amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.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 amortizationVolunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premium
- On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premiumDisclosure of Debt On May 1, 2019, Ramden Company issues 13% bonds with a face value of 2 million. The bond contract calls for retirement of the bonds in periodic installments of 200,000, starting on May 1, 2020, and continuing on each May 1 thereafter until all bonds are retired. Required: How would the preceding information appear in Ramdens balance sheets on December 31, 2019, and 2020?
- On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?Short-Term Debt Expected to Be Refinanced On December 31, 2019, Excello Electric Company had 1 million of short-term notes payable due February 7, 2020. Excello expected to refinance these notes on a long-term basis. On January 15, 2020, the company issued bonds with a face value of 900,000 for 882,000. On January 22, 2020, the proceeds from the bond issue plus additional cash held by Excello on December 31, 2019, were used to liquidate the 1 million of short-term notes. The December 31, 2019, balance sheet is issued on February 12, 2020. Required: Prepare a partial balance sheet as of December 31, 2019, showing how the 1 million of short-term notes payable should be disclosed. Include an appropriate footnote for proper disclosure.
