I have a little issue with one accounting assignment where they ask to calculate the WACC. However, in the financial statement provided, there are two types of long-term liabilities: long-term debt and other penalties. When calculating the Weight of long-term debt, should I use the total long-term liability or only the section indicated long-term debt?
Q: Cash Accounts Receivable Merchandise Inventory Land Building P ? 80,000 100,000 P 380,000 240,000…
A: Capital = Total Assets Contributed - Liabilities
Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months $84,000…
A: FICA tax consists of two parts one is social security and another is medicare and that is necessary…
Q: price variance (usage basis) S price variance (purchase basis) S S S S terials terials terials…
A: Variance analysis is the process under which the difference between the actual cost and the budgeted…
Q: 03: annual rates of pay (in dollars) Effee
A: Employees become red circled whenever their pay rate is above the maximum salary identified for…
Q: Apple Ltd makes and sells a single product, for which variable costs are follows: Direct materials…
A: A variable cost is a recurring cost whose value varies according to variables such as sales revenue…
Q: a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the…
A: First-in-first-out and last-in-first-out is a inventory management method. FIFO method under which…
Q: Charles has AGI of $39,000 and has made the following payments related to (1) land he need o and (2)…
A: Answer:- Itemized deduction meaning:- Every taxpayer is legally able to lower their income tax…
Q: eila inherited 300 shares of stock, 100 shares of Magenta and 200 shares of Purple. She has a…
A: There earning from the shares if you invest in the share market but there are taxes to be paid on…
Q: Sales Cost of goods sold Accounts receivable 2021 $ 511,648 253,158 24,815 2020 $ 332,239 164,397…
A: Trend analysis is the analysis of the pattern which is created by comparing the financial…
Q: I have all the same workings as you for the double declining depreciation method but I am unsure how…
A: Depreciation Expense - Depreciation Expense is charged on the fixed assets of the company.…
Q: Which of the following items is not being considered in the computation of recovery percentage of…
A: Secured creditors are those liabilities which are being secured by some property or assets of the…
Q: Oriole Manufacturing Co.'s operates 3 profit centers. The clothing center's static budget at 6800…
A: As per the given information: Static budget - 6800 units of productionDirect labor - $34000Direct…
Q: Calvin reviewed his canceled checks and receipts this year (2022) for charitable contributions,…
A: If you itemize your deductions, you have the ability to deduct charitable gifts of money or property…
Q: AB Ltd. had $3,602 in outstanding cheques at the end of July and half of that amount in deposits in…
A: A bank reconciliation statement aligns an organization's bank account with its financial documents…
Q: The liquidation of the partnership of Cheska, Darryl and Eunice resulted in a deficiency in Cheska’s…
A: Deficit partner refer to the partner who is having debit balances in the company after receiving…
Q: Catanduanes Corporation is under court-supervised liquidation due to its insolvency. The court-…
A: The estimated recovery percentage of unsecured creditors without priority is calculated by dividing…
Q: EJ-2 Presented below is the subsidiary Accounts Receivable account of Martha Nott. Date 2017 Sept. 2…
A: Subsidiary Accounts Receivable Account is the details of a particular customer's account balance…
Q: Sales volume (units) Revenue Variable costs Direct materials Direct labor Contribution margin Fixed…
A: Allocation of cost is one of the most important activities in cost accounting. It enables…
Q: Arrow Co. entered into a contract with a customer for $340,000. The contract is for the delivery of…
A: The first step in the accounting process is the identifying whether a transaction is financial or…
Q: Under the goodwill method,
A: The goodwill method is used to determine the amount of goodwill that should be recorded when two…
Q: Ramakrishna has a property whose municipal valuation is ₹ 2,50,000 p.a. The fair rent is ₹ 2,00,000…
A: The question deals with computation of income from house property. House property may be self…
Q: Exercise 21-25 (Algorithmic) (LO. 15) Sweeney originally contributed $266,000 in cash for a…
A: A company, firm, or individual invests money in the company and purchases some shares of the…
Q: High-low method Ziegler Inc. has decided to use the high-low method to estimate the total cost and…
A: Variable cost is the one which varies with the variation in the production level whereas fixed cost…
Q: On January 31, 2020, Courtenay Sports Cars issued 14-year, 7% bonds with a face value of $160,000.…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Minden Company is a wholesale distributor of premium European chocolates. The company’s balance…
A: Cash Budget is prepared to get an estimate of cash inflows and outflows of a business over a period…
Q: Barb Company has provided information on intangible assets as follows: A patent was purchased from…
A: Intangible Assets: The assets that are not physical in nature, and add value to business in the…
Q: P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S…
A: Acquirer is the company which invest in the equity of the other company. It is also written as…
Q: An all-equity firm will spend $1,500,000 to expand the business. It has $100,000 in cash, can borrow…
A: Solution We are provided with the following information Expansion Cost = $ 1,500,000 Financing with…
Q: Cost pool pool 1 pool 2 pool 3 Total cost in cost pool $58,200 $18,000 $7,500 $63,000 $88,500…
A: Allocation of cost is one of the most important activities in cost accounting. It enables…
Q: The following is the Balance Sheet of Sipchem Corporation for the years 2020 and 2019 SIPCHEM…
A: Vertical analysis is one of the method of financial statement analysis under which all the line…
Q: White Company owns 60% of Cody Company. Separate tax returns are required. For 2020 White's…
A: The deferred income taxes are paid on which when the income is received from the subsidairy or…
Q: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable game…
A: Lets understand the basics. There are generally one of the two inventory system follow by the…
Q: Dix Company reported operating income (loss) before income tax in its first three years of…
A: The entire amount of taxes that are owed to federal, state, and local governments by people and…
Q: Sales volume Sales price Unit VC Input price for DL Input quantity per unit for DL 100 units $50 per…
A: Input price variance for DL measures the variance in the actual rate of direct labor versus the…
Q: Requirement 1. Suppose Parisian Cuisine's processor charges a 6% fee and deposits sales net of the…
A: Journal entry A journal entry is the act of keeping or making records of any economic or…
Q: Aa.58. how did you find retained earnings and treasure stock
A: Retained earnings are net income remaining after paying all fixed expenses and dividends if any.…
Q: ss segment, net of tax siness segment, net of ta
A: Answer :Prepare the December 31 year end Income statement :
Q: 1. Northstar Resources is now involved in a class action suit brought about by the farmers. They are…
A: According to accounting principles, Provision should be recorded for the liability that has a higher…
Q: Calvin’s AGI is $110,000 and Hobbs is private no operating foundation. What is the charitable…
A: Individual taxpayers can deduct charitable contributions to qualifying charity organisations. The…
Q: d) With the current cost structure, including fixed costs of $266,000, what dollar sales volume is…
A: Contribution margin ratio = Contribution/ total sales Contribution= Sales - Variable cost
Q: Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are…
A: In order to make the decision between processed further or selling the product as it is, additional…
Q: Acme Company's production budget for August is 19,300 units and includes the following component…
A: Variance arises when actual costs differs from budgeted costs. When the actual costs is more than…
Q: Based on the following information: State of Economy Recession Normal Boom Probability of State of…
A: RETURN ON STOCK Profit that is Gain from the Stock investment in a Particular Time Period. Return…
Q: an of 190,000 at ordinary interest of 8% if the amount of interest is 3,800 what would be the the…
A: Given Principal = 190,000 Rate =8% per annum Interest =3,00 Time period = x ( to be calculated)
Q: d sales
A: Answer : answer is Input price = F; Input efficiency = F
Q: The following information relates to Best Digital Net sales(all on credit) Cost of goods Sold…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: ROI and Margin Arbus Company provided the following information: Turnover Operating assets Operating…
A: Return on Investment (ROI) : A measure used in order to assess the efficiency of an investment.…
Q: LO 5-1 Exercise 5-3A Allocating product cost between cost of goods sold and ending inventory:…
A: FIFO Method :— It means first in first out. Under this method, beginning inventory and old purchases…
Q: The inventory policy is to have ending inventory equal to 20% of next month's sales. Desired ending…
A: Budgeted production means units to be produced during a specific period to meet the expected sale…
Q: aig Company uses two different types of labor to manufacture its product. The types of labor,…
A: LABOUR COST VARIANCE Direct Labour Cost Variance (also termed Direct Wage Variance) is the…
I have a little issue with one accounting assignment where they ask to calculate the WACC. However, in the financial statement provided, there are two types of long-term liabilities: long-term debt and other penalties.
When calculating the Weight of long-term debt, should I use the total long-term liability or only the section indicated long-term debt?
Step by step
Solved in 2 steps
- In accounting for short-term debt expected to be refinanced to long-term debt: a. GAAP uses the authorization date to determine classification of short-term debt to be refinanced. b. IFRS uses the authorization date to determine classification of short-term debt to be refinanced. c. IFRS and GAAP use the financial statement date to determine classification of short-term debt to be refinanced. d. GAAP uses the date of issue, but only for secured debt, to determine classification of short-term debt to be refinanced.In accounting for short-term debt expected to be refinanced to long-term debt:(a) GAAP uses the authorization date to determine classification of short-term debt to be refinanced. (b) IFRS uses the authorization date to determine classification of short-term debt to be refinanced. (c) IFRS uses the financial statement date to determine classification of short-term debt to be refinanced. (d) GAAP uses the date of issue, but only for secured debt, to determine classification of short-term debt to be refinanced.The current portion of long-term debt should Select one: a. be reclassified as a current liability. b. be classified as a long-term liability. C. not be separated from the long-term portion of debt. d. be paid immediately.
- Which of the following is stated correctly? a. Current liabilities follow non-current liabilities on the statement of financial position under GAAP but non-current liabilities follow current liabilities under IFRS. b. IFRS does not treat debt modifications as extinguishments of debt. c. Bond issuance costs are recorded as a reduction of the carrying value of the debt under GAAP but are recorded as an asset and amortized to expense over the term of the debt under IFRS. d. Under GAAP, bonds payable is recorded at the face amount and any premium or discount is recorded in a separate account. Under IFRS, bonds payable is recorded at the carrying value so no separate premium or discount accounts are used.One of the most effective ways to determine the overall reasonableness of interest bearing debt is to examine the relationship between recorded _____________________ and the average principal amount of debt outstanding during the year.Which of the following statements is true? a. If any portion of a non-current liability is to be paid in the next year, the entire debt should be classified as a current liability. b. "Current maturities of non-current debt” refers to the amount of interest on notes payable that must be paid in the current year. c. Even though current and non-current debt must be shown separately on the statement of financial position, it is not necessary to prepare a journal entry to recognize this. d. A non- current liability is an obligation that is expected to be paid within one year.
- Which of the following is not a liability? A. Notes payable. B. Current portion of long-term debt. C. Deferred revenue. D. An unused line of credit.1. Define and briefly discuss a loss contingency. 2. What are the similarities and differences of the accounting treatment and financial statement reporting of a loss contingency between U.S. GAAP and IFRS? 3. As a manager, would you like to report a debt as a current or non-current liability if you had a choice? Explain. And under what kind of circumstances could a short-term obligation be reported as a non-current liability?Gains or losses from the early extinguishment of debt that is refunded can theoretically be accounted for in three ways: 1. Amortized over the life of old debt 2. Amortized over the life of the new debt issue 3. Recognized in the period of extinguishment Required: A. Discuss the supporting arguments for each of the three theoretical methods of accounting for gains and losses from the early extinguishment of debt. B. Which of the three methods would provide a blance sheet measure that reflects the present value of the future cash flows discounted at the interest rate that is comensurate with the risk associated with the new debt issue? why? C. Which of the three methods is generally accepted and how should the appropriate amount of gain or loss be shown in a company's financial statements?
- which of the followings is considered as long term liability :Select one .a mortgage payable .b current portion of long term liability .C bank overdraft .d unearned revenuesSelect one of the following short-term (current) liabilties and describe some of the accounting requirements for recognizing/accounting for it: Accounts Payable Notes Payable Payroll Contingent Liabilites Then describe how working capital, current ratio and quick ratio can be useful in making economic decisions. Who would be making these decisions?A long-term liability should be reported as a current liability in a classified balance sheet if the long-term debt: A) Is callable by the creditor. B) Is secured by adequate collateral. C) Will be refinanced with stock. D) Will be refinanced with debt.