Karen Company showed the following accounts on December 31, 2020. 5,000,000 250,000 Bonds payable Premium on bonds payable
Q: Concord Corporation issues 10, 10- year, 8%, $1000 bonds dated January 1, 2020, at 98. The journal…
A: Given that, the corporation issued 10 bonds. value of bonds issued = $1000 issue price of bond = $98…
Q: The December 31, 2021, statement of financial position of Bordeaux Corporation includes the…
A:
Q: At December 31, 2020, Crane Corporation has the following account balances: Bonds payable, due…
A: Bonds payable are referred to long-term debts of the business, issued to various lenders known as…
Q: What amount should be recognized as gain or loss on bond retirement on June 30, 2022?
A: Gain or loss on the retirement of the bonds depends upon at which price the bonds have been retired…
Q: On March 15, 2022, Red Company issue financial statements. Its fiscal year ends December 31, 2021.…
A: Red Company Bonds issued after the balance sheet is a common occurrence that requires no disclosure…
Q: Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…
A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…
Q: Medow corporation issued 3000 7%, 5 year, P1,000 bonds on January 1 2022 at face value. Inter paid…
A: The procedure of entering commercial transactions for the first time in the books of accounts is…
Q: Anya Company disclosed the following accounts on December 31, 2020: 12% Bonds Payable- Due…
A: The adjusting entries on December 31 2020 is as follows :
Q: On April 1, 2011, Gina Company issued at 99 plus accrued interest, 2,000 of its 8% P1,000 face value…
A: Net cash received from bonds issue = Issue price of the bonds + Accrued interest on the bonds where,…
Q: On July 1, 2022, Mercurial Company issued at 98 plus accrued interest 2,500 of its 11%, P1,000 face…
A: Solution : Given Face value of bond =P1000 Issue price =98%…
Q: Jordan Company issues €50,000,000, 7.8%, 20-year bonds to yield 8% on July 1, 2018. Interest is paid…
A: Bonds are the debt security which is offered or issued by the corporates or the government to…
Q: At December 31, 2020, Hyasaki Corporation has the following account balances: Bonds payable, due…
A: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
Q: Fountain Limited sells $300,000 of 10% bonds on March 1,2020. The bonds pay interest on September 1…
A: Bonds payable is a liability account. Adjusting entry should be made for accrued interest at the end…
Q: Sealy Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2021, at 97. The journal…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: On January 1, 2021, a company issues 3-year bonds with a face value of $230,000 and a stated…
A: Given, Effective interest rate = 5% Therefore, Interest expense to be charged to Profit and loss…
Q: Dixon Corp issued 5,000, 9%, 5-year, P1,000 bonds dated January 1, 2020, at P100 1. Prepare the…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: he Colson Company issued $300.000 bonds at 98 on January 1. 2017 The bonds are due January 1, 2022,…
A: Given information is: Face value of bonds = $300,000 Issue price = 98
Q: Crane Corporation issued 3,200, 6%, 5-year, $ 1,000 bonds dated January 1, 2022, at 100. Interest is…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January I, 2022, at face value.…
A: A journal entry is being used to record a commercial transaction in the accounting records of a…
Q: On June 30, 2021, Arlington Company issued $2,100,000 of 10-year, 3% bonds, dated June 30, for…
A: The bonds are the financial instruments that are used to raise money from the market.
Q: On March 1, 2021 Lesley Company issued at 103 plus accrued interest 4,000 of 9% P1,000 face value…
A: Solution: Accrued interest on Bond = 4,000*P1,000*9%*2/12 = P60,000 Proceed from issue of bond =…
Q: crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…
A: Cash received = 2,100 bonds x $1,000 per bond x 100% = $2,100,000
Q: On May 1, 2021, Ligertwood Co. issued P5,000,000, 10%, three-year bonds to yield 8%. The bonds pay…
A: Bond is a debt security which carries a fixed interest rate. The fixed interest rate is known as…
Q: Lasa Corporation issued 5,000, 9%, 5-year, RM1,000 bonds dated January 1, 2020, at 100 (a) Prepare…
A: Journal entries are accounting transactions used to record various accounting transactions in the…
Q: On January 1, 2020, Marigold Corp. issued $5100000, 10-year, 4% bonds at 102. Interest is payable…
A: When a bond is issued at premium, the amount received excess of fair value should be recorded under…
Q: Compute the total cost of borrowing for these bonds
A:
Q: The following are four independent situations. a. On March 1, 2021, Wilke Co. issued at 103 plus…
A: Step 1: a. Compute the net amount of cash received as follows:
Q: Presented here are long term liabity tema for Marin ne. at December 31, 2017. S70,000 Bonds payable…
A: Balance sheet is an financial statements which contains assets, liabilities, shareholders equity,…
Q: On October 1, 2020, Shane Company issued 5,000 12% bonds with face amount of P1,000 per bond at 110.…
A: Note: As per the policy, we are supposed to solve one question at a time. Kindly repost the further…
Q: On March 1, 2020, WHITE Corporation purchased bonds with face amount of P5,000,000. The entity paid…
A: Coupon Interest on the bonds: White Corporation purchased the bonds on 1st March 2020 and held the…
Q: Mara Company reported the following accounts on December 31,2021: Premium on bonds payable 50,000…
A: Bond refunding refers to when higher-cost bonds are paid off with debt that has a lower net cost to…
Q: JR Company showed the following balances in connection with its noncurrent liabilities on December…
A: Bond Payable: Bonds payable are the long term debt ,the amount owed to bond holders by the issuer…
Q: The records of Montana Corporation on January 1, 2020 show the following accounts: Premium on bonds…
A:
Q: andings Glassware Company issues $1,066,000 of 16%, 10- year bonds at 94 on February 28, 2025. The…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: Show your solution in good accounting form On April 1, 2021, ORANGE Inc. issued at 97 including…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: Folgers Inc. reported bond interest expense of $12,000 during 2020. The balance in Bond Interest…
A: Increase (decrease) in Bond Interest Payable = Ending in Bond Interest Payable - Beginning in Bond…
Q: Un July 1, Kwek-kwek Company issued 600 of bonds at 99 plus accrued interest. The bonds are dated…
A: A trader aims to make short-term profits by repeatedly buying and selling stocks, whereas an…
Q: On December 31, 2020, Reyes Company issued P2,000,000, 12% serial bonds to be repaid in the amount…
A: Annual interest payment = face value of bonds x rate of interest x no. of months/12 = P2,000,000 x…
Q: Kitkat Company issued a P5,000,000, 10% 10-year bonds on July 1, 2021 for 113 when the effective…
A: Issue value of bonds = Face value of bonds x issue price/100 = P5,000,000 x 113/100 = P5,650,000
Q: The following section is taken from Bramble Corp.’s balance sheet at December 31, 2021. Current…
A: Accrual of interest on December 31, 2022 = Face value of bonds x rate of interest x period =…
Q: The December 31, 2021, statement of financial position of Bordeaux Corporation includes the…
A: Bonds payable is a form of liability for the business, on which regular interest payments needs to…
Q: The Colson Company issued $300 000 bonds at 98 on January 1. 2017 The bonds are due January 1, 2022,…
A: Bonds refer to the borrowed security issued by the company in order to raise funds that are payable…
Q: The Colson Company issued $300,000 bonds at 103 on January 1, 2017. The bonds are due January 1,…
A: Bonds are investment where business earn in long run with interest expense.
Q: On January 1, 2019, Ellison Co. issued 3-year, 10%, $200,000 face value bonds. The bonds were issued…
A: Date Cash Amount Paid Interest Expense Amortization Premium Balance Amount…
Q: SIGE NA Company has the following book balances at Dec.31,2020 Bonds Payable Discount on Bonds…
A: Loss on redemption on bonds = Unamortized Discount on bonds + Unamortized bond issue costs + Premium…
Q: On January 1, 2021, Sheffield Corporation issued $6400000, 10-year, 9% bonds at 103. Interest is…
A: Here issue proceeds =( $ 6400000/100 )×103 =$6592000
Q: Mara Company reported the following accounts on December 31, 2021: 50,000 180,000 Premium on bonds…
A: Introduction Bonds are investment securities that is issued by company and in which investor invest…
Q: Dixon Corp issued 5,000, 9%, 5-year, P1,000 bonds dated January 1, 2020, at P100 1. Prepare the…
A: Formula: Interest amount = Bond issued value x Interest rate
Q: (a)Prepare the journal entry to record the sale of these bonds on January 1, 2022. (b)Prepare the…
A:
Q: On January 1, 2019, Grant Corporation issued $4,000,000, 10-year, 8% bonds at 102. Interest i…
A: Cash received = 4000000×102% $4080000
Step by step
Solved in 2 steps
- 1. The following balances were obtained from the books of The Hartland Ltd as at December 31, 2015:DETAILS DR CRPremises800,00010% Mortgage250,000Retained earnings40,000Goodwill100,000Debtors110,000Creditors65,000General reserves30,000Management fees30,000Ordinary shares @ $0.50200,0005% Preference shares @ $1200,000Share premium50,000Motor vehicle80,000Prov. for depreciation on motor vehicle12,00010% Debenture120,000Mortgage interest7,000Debenture interest5,000Cost of sales750,000Closing stock80,000Insurance20,000Wages & salaries60,000Interim ordinary shares dividend2,000Bank53,000Sales1,100,000Commission received4,0002,084,0002,084,000Notes:a. Provide for depreciation on motor vehicle at 5% on the reducing balanceb. Insurance is prepaid by $4,000 while wages and salaries is owing by $20,000c. The goodwill should be written down by 25%d. Transfer $25,000 from profits to the general reservese. Corporation tax is estimated at $30,000f. The…29/4/2021 https://translate.googleusercontent.com/translate_f P12-14 Share repurchase : The following financial information is available on the Bond Recording Company: Earnings available to $ 800,000 common shareholders Number of common shares outstanding 400,000 Earnings per share ($ 800,000 +400,000) $ 2 Market price per share $ 20 Price / Earning Ratio (P / E) ($ 20 + $ 2) 10 The company is currently contemplating whether to use $ 400,000 of its earnings to pay cash dividends of $ 1 per share or to buy back shares at $ 21 per share. About how many shares can the company buy back at the price of $ 21 per share using the funds that would be used to pay the dividend in cash? а. b. Calculate EPS after repurchase. Explain your calculations. С. If the shares are sold at a price 10 times higher than the earnings, what will the market price be after the buyback? Compare the positions of the shareholders under the dividend payment and share buyback alternatives. What are the tax implications…II. The following is a comparative balance sheet of ABC Co. for December 31, 2022 and 2021: Cash and cash equivalents Accounts receivable Inventories Investment in bonds at amortized cost Equipment Accumulated depreciation Total Assets Accounts payable Bonds payable, due 2025 Ordinary stock, P20 par Share premium Retained earnings Total Liabilities and Equity Additional information: . 2022 250,000 327,600 822,000 0 . 2,400,000 (700,000) 3,099,600 359,000 0 1,800,000 280,000 660,600 3,099,600 2021 220,000 356,000 780,000 200,000 2,040,000 (760,000) 2,836,000 • Net income for 2022, P545,600. Depreciation reported on income statement, P140,000. Fully depreciated equipment, no salvage value, was scrapped. Equipment was purchased for P560,000. Bonds of P400,000 were retired at their face value. 281,000 400,000 1,600,000 200,000 355,000 2,836,000 10,000 shares of ordinary stock were issued for cash of P28 per share. Cash dividends declared and paid, P240,000 Investment in bonds with carrying…
- Reference is made to the 2022 Balance Sheet of Tran-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets 1,000,000.00 ii. 12,000,000.00 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000,00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 50,000,000.00 Additional Information: 1. The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share. iii. iv. V. Preferred shares have a book value of $100 per share. These shares are currently selling at $120 per share and pays dividends of 6% per annum on book value. The dividend growth rate is expected to be 3%, and dividend for 2823 is projected to be $5.00 per share. The…Assignment Q. = Ken recieved 30000 of interest from corporate bonds and money market accounts. Ans & what line on form 1040?The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value.Required:a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is…
- l-Itihad Corporation Balance SheetDecember 31, 2019AssetsLiability & EquityCurrent AssetsCurrent LiabilityCash$5,000Accounts payable22,000Short term securities10,000Accrual Account8,000Account Receivables30,000Short term debt6,000Inventory32,000Total Current Liability36,000Long-term debt40,000Total Current Assets77,000TotalLiability76,000Long term AssetsEquityNet Property & equipment70,000CommonStocks64,000Retained earnings17,000Total Equity81,000Total Liability and Equity157,000Other assts 10000Total Assets157,000Sur Corporation Income StatementDecember 31, 2019Other Financial information of Sur corporation December 31, 2019Net sales (revenue)$150,000· Average Number of Common shares outstanding 16,000 Shares· Market price of Common share $3.5Cost of goods sold80,000Gross profit70,000Operating expenses30,000EBIT- (Operating profit)40,000Interest expense10,000EBT- ( Earnings before taxes)30,000Income tax 10,000Net Income (net profit)20,000You have to find the following ratios…If $945,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale is Oa. $945,000 Ob. $1,039,500 Oc. $970,988 Od. $708,750If $1,012,000 of 12% bonds are issued at 102 1/2, the amount of cash received from the sale is Oa. $1,037,300 O b. $1,012,000 O c. $759,000 O d. $1,133,440
- Problem 7-6 (IAA) Kareń Company showed the following accounts on December 31, 2020. 5,000,000 250,000 Bonds payable Premium on bonds payable Share capital – 250,000 shares authorized and 200,000 shares issued, P50 par Share premium -issuance Share premium - conversion privilege Retained earnings 10,000,000 2,000,000 500,000 2,500,000 The bonds are convertible into 10 shares of capital for every P1,000 bond. On December 31, 2020, the entire bond issue was converted and on this date, the market value of the share is 120 and the market value of the bonds is 103. The entity paid P200,000 as a result of the bond conversion. Required: Prepare journal entries for the conversion of the bonds on December 31, 2020.Cullumber Company's equity securities portfolio which is appropriately included in current assets is as follows: Catlett Corp. Lyman, Inc. O O $-7440. O $-20400. O $0. O $-130740. December 31, 2021 Cost O $23000 loss. O $14000 loss. - $0. O $9000 gain. $150000 Cash $296000 146000 Cash Ignoring income taxes, what amount should be reported as a charge against income in Cullumber's 2021 income statement if 2021 is Cullumber's first year of operation? Debt Investments Premium on Bonds Cash Current Attempt in Progress Sunland Company purchased $2700000 of 9%, 5-year bonds from Cheyenne, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $2830740 at an effective interest rate of 8%. Using the effective-interest method, Sunland Company decreased the Available-for-Sale Debt Securities account for the Cheyenne, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $10020 and $10380, respectively. Debt Investments Eair Value $127000…Reference is made to the 2022 Balance Sheet of Tram-Ropes limited.Tram-Ropes Limited Balance Sheet 2022Cash 1,000,000.00 Accounts Payable 8,000,000.00Acc. Receivable 12,000,000.00 Notes Payable 8,500,000.00Marketable securities 3,000,000.00 Long-term Debt 20,000,000.00Inventories 7,500,000.00 Common stock 7,500,000.00Fixed Assets 26,500,000.00 Preferred Stock 6,000,000.00Total Assets 50,000,000.00 Total Liabilities and Equity 50,000,000.00Additional Information:i. The Long-Term debt consists of 8% annual coupon bonds, with15 years to maturity and are currently selling for 95% ofpar.ii. The company’s common shares which have a book value of $20per share are currently selling at $25 per share.PREPARED BY THE CI, MGMT2023 4iii. Preferred shares have a book value of $100 per share. Theseshares are currently selling at $120 per share and paysdividends of 6% per annum on book value.iv. The dividend growth rate is expected to be 3%, and dividendfor 2023 is projected to be $5.00 per…
