00 plus accrued interest. The bonds pay interest annually on January 1. on December 31, 2021, the bonds have a market value of P 472,500. On February 14, 2022, the company sold these bonds for P477,500. What is the gain/loss on the sale of the debt investments.
Q: The Litton Company has established standards as follows: Direct material Direct Labor Variable…
A: Labour Rate Variance :— It is the difference between standard labour cost & actual labour cost.…
Q: Exercise 19-9 (Algo) Absorption costing and variable costing income statements LO P2 Rey Company’s…
A: 1. Income statement for the year using absorption costing2. Income statement for the year using…
Q: What amount of interest should be capitalized for the fiscal year ending December 31, 2020,…
A: Interest Capitalization According to IAS 23 which specifies the details of the calculation of…
Q: Before Action $1,269,000 $ equity $232,000 657,000 380,000 1,037,000 $1269,000 300,000 $ $ After…
A: Introduction Cash Dividend: A cash dividend is a payment made from the firm's current income or…
Q: Bellingham Company produced 2,300 units that require 16 standard pounds per unit at a $10 standard…
A: Variance is the result the amount of expected value and actual results. It can be calculated by…
Q: On October 1, 2021, Best Company purchased as debt investments at fair value through profit or loss,…
A: Accrued interest is one of the current asset being held by the business. This means interest revenue…
Q: The company has a 10% interest bearing, promissory note of 50,000, payable after 5 years. Sales…
A: The financial leverage is the ratio that helps in measuring the dependency of the entity on debt…
Q: Process costing systems are used only by companies that manufacture physical products; companies…
A: Process Costing - Process costing is a method of allocating manufacturing costs to finished goods.…
Q: In its 2017 annual report, Allen Company reports the following (in thousands): 2017 2016 Total…
A: Answer. Allen company gives the following details regarding its annual report :…
Q: The adjusted trial balance for Zahurak Company follows. Adjusted Trial Balance December 31 Account…
A: ZAHURAK COMPANY Income Statement For year Ended December 31 Plumbing fees earned $…
Q: 5. B Company reported an operating loss of $170,000 for financial reporting and had nondeductible…
A: Journal Entry - It is record of every business transaction in day to day life whether it is economic…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: The variance is the difference between standard budgeted data and actual production results of…
Q: Question 1 a) Telcom Ltd issued 2,000 15% debenture of Ghc1,000 each and Ghc2,000 each redeemable…
A: Dear student As per guidelines in case of multiple different questions we can answer only first one…
Q: Osprey Cycles, Inc. projected sales of 61,611 bicycles for the year. The estimated January 1…
A: Budgeted production (in units) = Projected sales + Beginning inventory - Ending inventory
Q: Ziegler Corporation purchased 25,000 ordinary shares of Sherman Corporation for P40 per share on…
A: When company invest in other company and purchases the shares of company than dividend received…
Q: Feedback from the control function helps managers compare actual results with planned results and…
A: Business wants to grow and check the progress every-time and for that the comparison is necessary to…
Q: In 2020, ION Corporation issued 50,000 shares of P10 par value for P100 per share. In 2021, the…
A: Reacquisition of shares means when shares of the company are being repurchased or reacquired by the…
Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…
A: Pmt means periodic payments made of inflows and outflows at each period. It can be present value or…
Q: CAPITAL BUDGETING WITH INCOME TAXES Montreal Paper Company must purchase a paper sorter to replace…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows) IRR is a rate at…
Q: How would you record the collection of a $500 debt from a customer who purchased merchandise on…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total…
A: Introduction Flexible budget or variable budget is a financial plan of estimated revenue and…
Q: The cost to produce 20,000 units is 21,000 pesos. The cost to produce 50,000 units is 34,000 pesos.…
A: Variable Cost = Change in total cost excluding increased Fixed cost of 4000/change in Units produced…
Q: On January 1, 2013, Jackie Corp. purchased 30% of the voting common stock of Rob Co., paying…
A: Initial Value (A) Life (B) Amortization (C=A/B) Amortization related to this investment (Cx30%)…
Q: Scott Corporation's production budget for the upcoming quarter reveals total manufacturing costs of…
A: Introduction: The cost of goods sold (COGS) budget is primarily a part of your operating budget. The…
Q: Prepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours only.
A: A budget is a statement of quantitative data. it contains estimated data related to future expenses…
Q: Activity-based costing can be used to allocate period costs to various products that the company…
A: Activity-Based Costing: Activity-based costing, or ABC for short, is a way of allocating overhead…
Q: Required information [The following information applies to the questions displayed below.] Victory…
A: Under weighed average method of process costing , opening inventory is considered as 100℅ completed…
Q: Journalize the 2022 transactions. (Record journal entries in the order presented in the problem.…
A: Journal Entries Date Particulars Debit ($) Credit ($) Jul-01 Cash 10840 Dividend…
Q: Please help me to solve this problem
A: Here discuss about the accrual basis accounting treatment of the vacation payable liability which…
Q: On December 31, 2020, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,100. The bonds…
A: PREPARATION OF BOND DISCOUNT SCHEDULE
Q: X, resident citizen, had the following information for the year 2022: Gain from sale of office…
A: According to the given question, we are required to compute the total capital gains tax. Capital…
Q: Intemal Growth Rate (IGR) Net Income ($) Total dividend paid ($) Retention ratio (%) Total assets…
A: Internal Growth Rate (IGR) The purpose of calculating the Internal growth Rate is the maximum rate…
Q: Given the following, calculate the net price of the purchase by a customer who buys 1,000 cases of…
A: Cost of product = $75.00 per case Total cost = $75 x 1000 = $75,000 Trade discount = $5 x 1000 =…
Q: Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the…
A:
Q: Xanax Corp has the following budgeted data: Cash, beginning, is 100,000; Cash, ending, is 80,000.…
A: Cash Flow statement :— Cash flow statement is a statement that provides the aggregate data of cash…
Q: ABC Corporation reported a profit of P7,500,000 as of December 31, 2022. The company has the…
A: Earnings per share is one of the important calculation in business. It shows how much net income or…
Q: Why are discounted cash flow methods of making capital budgeting decisions superior to allother…
A: Discounted cash flow: it is a valuation method. This method helps in determining the Value of a…
Q: ABC Corporation reported a profit of P7,500,000 as of December 31, 2022. The company has the…
A: According to the given question, we need to compute the earnings per share. Earning per share:…
Q: On June 1, 2020, Golden Warriors Corporation declared a share capital dividend entitling its…
A: The dividend is declared to the shareholders from the retained earnings of the business. The…
Q: Carla Vista Garage Co. accepts the following forms of payment: Visa, MasterCard, the Carla Vista…
A: Journal entries recording is the initial step of accounting cycle process, under which atleast one…
Q: D ASAP. Solve correctly and show your computations. ABC Corporation earned P540,000 during the…
A: Earning per share is income available against the each common shareholder that much they can take…
Q: Prior to the split, Zebra Corp. had 200,000 shares of P30 par value share. On December 31, Zebra…
A: Introduction:- A par value for a stock is its per-share value decided by the company. It is used for…
Q: Mason Corporation had $1,096,000 in invested assets, sales of $1,237,000, income from operations…
A: The residual income is the amount of profit earned even after the completion of the work that was…
Q: 2) A 40 year, $100, 000 loan with effective annual interest i = 4% is paid by making payments of K…
A:
Q: 2,500,000.00 5,400,000.00 3,700,000.00 11,600,000.00
A: In the partnership there is fixed exchange ratio between the partners and profit or loss is shared…
Q: Required information [The following information applies to the questions displayed below.] Listed…
A: Product costs are costs related with the production or manufacturing of goods. It includes direct…
Q: On July 1, 2021, Matiyaga Company purchased 1,000 shares of Masipag Corp. P100 par ordinary shares…
A: In the context of the given question, we are required to compute the carrying value of Matiyaga's…
Q: At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year…
A: A lease is an agreement where one party provides the right to use the asset in exchange for periodic…
Q: The present value index for this investment is Oa. 0.95 Ob. 1.00 Oc. 1.05 Od. 1.25
A: Present Value Index (PVI) is the ratio of the net present value to the initial expenditure required…
Q: Juztine Company produces a single type of necklace being sold for P 25 per unit. The following…
A: The productivity ratio depicts the connection between output produced and input utilized to create…
Step by step
Solved in 2 steps
- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossRefer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.Irving Inc. sold bonds with a $50,000, 10% interest, and 10-year term at $52,000. What is the total amount of interest expense over the life of the bonds?
- Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What is the total amount of interest expense over the life of the bonds?Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018, the balance in the Discount on Bonds Payable account is $5,000. This years balance sheet will show a net liability of ________. A. $200,000 B. $180,000 C. $195,000 D. $205,000
- Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.Refer to the information in RE13-5. Assume that on June 30, Aggie received interest on the Smith Corporation bonds. Prepare the June 30 journal entries to record the receipt of the interest. On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-years bonds with a face value of 12,000 at par plus four months of accrued interest. Prepare the April 30 journal entry to record the purchase of these available-for-sale securities.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?
- Investments On October 4, 2019, Collins Company purchased 100 bonds of Steph Company for 6,400 as a short-term investment in securities classified as available for sale. On December 31, 2019, the bonds had a fair value of 6,300, and on February 8, 2020, Collins sold the bonds for 6,700. Required: In journal entry form, prepare the spreadsheet entries to record these transactions for Collins Companys 2019 and 2020 statement of cash flows.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 amortizationParilo Company acquired 170,000 of Makofske Co., 5% bonds on May 1, 2016, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 2016, Parilo Company sold 50,000 of the bonds for 96. Journalize entries to record the following: a. The initial acquisition of the bonds on May 1. b. The semiannual interest received on November 1. c. The sale of the bonds on November 1. d. The accrual of 1,000 interest on December 31, 2016.
