To determine: Finding the recent 10Q (quarterly) and 10K (annual) forms, balance sheet to find the book value of debt and equity for TSLA.
Introduction:
The
The cost of debt is the effective interest rate of cost which a business earns on their current debts. Debt involves in the formation of capital structure. As the debt is considered as deduction expenditure, the cost of debt is usually determined as after-tax cost in order to formulate similar to the cost of equity.
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CORPORATE FINANCE- ACCESS >C<
- PREPARE JOURNAL ENTRIES AND T-ACCOUNTS PROBLEM 1: You were assigned to audit the shareholders’ equity of Glory Inc. for the year endedDecember31, 2019. Glory Corp. was incorporated in early 2018 when it was authorized by SEC to issue500,000 ordinary shares (P10 par) and 100,000 convertible preference shares (P20 par). The followingschedule reflects the company’s capital balances as of December 31, 2018:Ordinary shares, 100,000 shares issued during the company’s P 1,400,000incorporation in exchange of a land with a fair value of P1.4 M.Preference shares, 50,000 shares issued during the company’s 2,500,000incorporation at P50 per share. Each preference share is convertibleto four ordinary sharesRetained earnings, which is the company’s net income in 2018 540,000Total shareholders’ equity P 3,440,000Your inquiries and investigation revealed the following transactions, which occurred in 2019:a. On January 15, the company reacquired 20, 000 ordinary shares (from the 2018 issue) at P22…arrow_forwardSHOW THE JOURNAL ENTRY FOR EACH TRANSACTION!arrow_forwardSHOW THE JOURNAL ENTRY OF G AND H! SHOW THE JOURNAL ENTRY OF G AND H!arrow_forward
- You are engaged to perform the first audit of the Torrents Company for the year ended December 31, 2022. You find the following account balances related to shareholders' equity: Preference shares, P100 par P3,000,000 Ordinary Shares, P10 par 6,500,000 Capital Surplus (1,640,000) Retained Earnings 15,000,000 Due to the antiquated terminology and negative balance, you examine the Capitak Surplus account first and find in it the following entries: Credit/(Debit) Premium on Ordinary Shares P2,710,000 Capital from donated land 1,600,000 Treasury shares (50,000 ordinary shares at cost) (750,000) Premium on Preference Shares 300,000 Appropriation for contingencies 2,500,000 Share dividend issued (50%) (2,000,000) Prior period adjustment (net of income taxes) (1,200,000) Loss from the fire (uninsured), 2022 (1,800,000) Property dividend distributed (600,000) Cash dividends declared to be paid in 2023 (2,400,000) Balance (P1,640,000) Your examination of…arrow_forwardYou are engaged to perform the first audit of the Torrents Company for the year ended December 31, 2022. You find the following account balances related to shareholders' equity: Preference shares, P100 par P3,000,000 Ordinary Shares, P10 par 6,500,000 Capital Surplus (1,640,000) Retained Earnings 15,000,000 Due to the antiquated terminology and negative balance, you examine the Capitak Surplus account first and find in it the following entries: Credit/(Debit) Premium on Ordinary Shares P2,710,000 Capital from donated land 1,600,000 Treasury shares (50,000 ordinary shares at cost) (750,000) Premium on Preference Shares 300,000 Appropriation for contingencies 2,500,000 Share dividend issued (50%) (2,000,000) Prior period adjustment (net of income taxes) (1,200,000) Loss from the fire (uninsured), 2022 (1,800,000) Property dividend distributed (600,000) Cash dividends declared to be paid in 2023 (2,400,000) Balance (P1,640,000) Your examination of…arrow_forwardWhat four financial statements can be found in a firm’s 10-K filing? What checks are there on the accuracy of these statements? **Select all that apply**arrow_forward
- The founder of Erenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Erenza, The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions. 1(a). Prepare journal entries to record the issuance of Frenza bonds on January 1, Year 1. 1(b). Prepare journal entries to record the first and second interest payments on June 30, Year 1, and December 31, Year 1. 1(c). Prepare journal entries to record the maturity of the bonds on December 31, Year 3. 2. Frenza needs to raise money to purchase new equipment. The founder is concerned about losing ownership control of her company. Which of the following ways to raise money would we recommend? 3. Erenza needs to raise money to purchase more inventory. The founder is concerned…arrow_forwardYou will enter the Topic, Subtopic, Section, Paragraph in a fill in the blank question and your overall conclusion to this case. Example: ASC 100-10-45-4 (you do not need to enter what the guidance content) Research Case #2: Ricci Corporation is preparing their financial statements for the year ending September 30, 2021. Ricci Corporation has two categories of stock; Preferred and Common. On September 25, 2021 Ricci Corporation declared dividends on the preferred stock which will be paid on October 18, 2021. In order to calculate EPS the staff accountant had the following information: 2021 Net Income: $4,000,000 Preferred Dividends Declared in September 25, 2021 $ 500,000 but not paid until October 18, 2021 Weighted Average Number of Common Shares Outstanding 125,000 shares The staff accountant has determined…arrow_forwardThe Daily Corporation, a company whose securities are publicly traded, prepares monthly, quarterly, and annual financial statements for internal use but disseminates to external users only the annual financial statements. Agree or Disagree with the above statement?arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning