1 and July 1. The discount in connection with the issue was $120,000, which is being amortized monthly on a straight-line basis.The bonds are convertible after one year into 15 shares of Volker Inc.'s $1 par value common stock for each $1,000 of bonds.On October 1, 2021, $600,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bo
Q: Prepare the following The Statement of Owner’s Equity for the Month The Balance sheet for Shop…
A: Statement of owner's equity is a statement which shows the amount belongs to the owner's of the…
Q: Req 4 Req 5 >
A: Gross profit refers to the sum value of money gained by an entity through its business activities…
Q: accrual accounting?
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Assess the accounting function within the organization in the context of regulatory and ethical…
A: Accounting Function - It refers to various operational processes in an organisation which include -…
Q: Mr Cruz, procured a tract of timber for P65,000. The worth of the land was established to be P17,000…
A: The depletion represents the accounting technique that has been used in order to calculate the cost…
Q: SolMfg Company purchased a new machine for $200,000 on March 1, 2020. It is estimated that the…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: Marginal costing and absorption costing are two product costing methods used in the manufacturing…
A: a) Overheads are the expenditure which cannot be conveniently traced to or identified with any…
Q: Why is property and equipment not reported on the balance sheet at fair value?
A: A financial statement called a balance sheet lists an organization's assets, liabilities, and…
Q: John makes and sells a product which has a variable cost of £60 and sells for £80 per unit. Budgeted…
A: The break-even point is the point at which total cost and total income are equal, meaning that your…
Q: Assume that due to a recession, Polaski Company expects to sell only 41,000 Rets through regular…
A: Lets understand the basics. When special order condition arise the management needs to calculate the…
Q: If the accumulated value of an investment that is growing at 3.38% compounded quarterly is…
A: Comment; We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Cardinal Corporation reported pretax book income of $3.300.000 During the curent year, the reserve…
A: Introduction Income Tax An individual or corporation's taxable profit is subject to income taxes,…
Q: Below are several transactions for the Academy Paper Company for the month of June; record the…
A: Date Particular Debit ($) Credit ($) June 2 Cash 10,500 James Adams, Capital 10,500…
Q: During the year, Mr. A incurred $526 to purchase airline tickets for travel to client sites on…
A: Travel expenditures (airline, bus, train, or taxi fares), hotel stays, and meals are all allowable…
Q: Direct labour cost (R1 800 000), Variable overhead costs (765 000), Fixed manufacturing overhead…
A: The contribution margin is the excess amount of sales revenue over the total variable costs of the…
Q: Required information [The following information applies to the questions displayed below.] In 2024,…
A: In construction contracts, the revenue is recognized over the period. So profit is recognized on the…
Q: Assume a tax rate of 6.2% on $142,800 for Social Security and 1.45% for Medicare. No one will reach…
A: Tax refers to the amount charged by the government from the organizations and individuals on the…
Q: 28
A: Generally, the Company purchases another company's business by giving the purchase price to the…
Q: On January 1, 20x1, Yoga Co. issued 1,000, P4,000 face amo bonds for P3,807,852. The bonds mature on…
A: The discount on a bond is the difference between the par value of the bond and the proceeds received…
Q: Renaldo Inc. wishes to acquire Messi Corporation but is uncertain which would be the best method to…
A: Answer:- Asset purchase method meaning:- When one assets or a collection of assets is bought while…
Q: TLF Ltd wishes to sell 28,000 units of its product, which has a variable cost of £30 to make and…
A: Lets understand the basics. Sale price is a price at which product is going to get sold to the…
Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: Answer:- Gross profit meaning:- The profit a company makes after deducting all of the expenses…
Q: For each transaction, (1) analyze the transaction using the accounting equation, (2) record the…
A: JOURNAL ENTRIES Journal entries is the Process of Recording all Financial & Non Financial…
Q: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the…
A: Relevant Cost :— These are the cost that affects decision making. It is calculated as follows :—…
Q: Please answer questions 4 and 5 in their entirety. There is an image included to reflect my exact…
A: Contribution Margin A net or per-unit basis might be used to express the contribution margin. It…
Q: Data from different sources linked together to find the intrinsic value hidden beneath is which…
A: Data are collected, processed, analyzed, and stored by the business. There are different phases of…
Q: Ralph Collins founded Collins Consignment Sales Company and the company was operated from his home.…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: A company uses LIFO to account for its bike inventory. It has 10 bikes on hand on 1-1-22 that cost…
A: Lifo method of inventory valuation is last in first out method. Under this method the units…
Q: Gemilang Bhd has share capital of RM1 million in shares of 25 sen each. At 31 May 2022 shares had a…
A: TERP =Right Issue Shares×Right Issue Price + Base Shares×Market PriceRight Shares + Base Shares
Q: The following data pertain to 2020 financial information of The Press Company. Direct materials and…
A: Manufacturing Cost :— It is the sum of direct material used, direct labour used and manufacturing…
Q: 8 0:31:03 Nebraska Furniture Mart is a home furnishing store in North America. Nebraska Furniture…
A: Formula: Acid-test ratio=Total current assets-Inventory+Prepaid expensesTotal current liabilities
Q: shades of the Caribbean design and manufactur ecords of the business reflect the following data a…
A:
Q: group of companies decided to acquire a state-of-the-art production machine that will cost…
A: Depreciation :— It is decrease in the value of asset due to continuos use of assets. Accumulated…
Q: 5. The following information pertains to a by-product called Moy: Sales in 2018 5,000 units Selling…
A: The question is based on the concept of Cost Accounting.
Q: Given the following partial financial statement data for Middleton Clinic, calculate Days in…
A: The question is based on the concept of Financial Ratios.
Q: Requirement: Journalize each transaction in the general journal referring to the following chart of…
A: Introduction: Journal entries are separate bits of writing that will take up and fill up a journal…
Q: Prepare a consolidated account for the group that ended 28th February 2020
A: A Consolidated account is the account which is actually the financial statements which are required…
Q: Carbon Company provides the following information about resources: Unused Resources Capacity Cost…
A: Introduction: The revenue recognition principle governs how and when revenue is recorded and…
Q: Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years…
A: The percentage method is used to estimate the revenue recognized during the period on the basis of…
Q: Financial information is presented below: Operating expenses Sales returns and allowances Sales…
A: Net Sales :— It is gross sales revenue less sales discount less sales return and allowances.…
Q: Question 1 You are the accountant for Emma's Electronics Ltd., a brand new company and have been…
A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…
Q: Which of the following best describes an accelerated depreciation method? A. A method by which an…
A: Solution: Depreciation is charged on fixed assets to accounts for its reduction in value due to…
Q: typewritten for upvote skip if you already did this otherwise downvote
A: Compound Interest - It is the Interest on principle plus Interest, it can be computed as follows.…
Q: Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full…
A:
Q: In the current year, Ms. Patel is provided with a vehicle leased by her employer, Everex Ltd. The…
A: Option C) $4373
Q: Where did you get the 1.60 from? And the 200,000 in #4?
A: The word "percentage" in English comes from the Latin expression "per centum," which means "by the…
Q: The frequency of new car models introduced by a particular car manufacturing company for each of…
A: Cumulative Frequency: The cumulative frequency is calculated by adding each frequency in the…
Q: During 2018, LeBron Corporation accepts the following notes receivable. a. On April 1, LeBron…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Prepare the operating activities section as it would appear in the Statement of Cash Flows of TMJ…
A: There are a few advantages of using the direct method to prepare a cash flow statement. One…
Q: During the fiscal year ended September 30, 2023, Worrell Incorporated had a 4-for-1 stock split and…
A: Earnings per share is the portion of a company's profits that is distributed to shareholders and…
Jaenda Inc. issued $5,000,000 of convertible 5-year bonds on July 1, 2020. The bonds provide for 6% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $120,000, which is being amortized monthly on a straight-line basis.The bonds are convertible after one year into 15 shares of Volker Inc.'s $1 par value common stock for each $1,000 of bonds.On October 1, 2021, $600,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash.
Instructions
Prepare the
a. October 1, 2021. (Assume the book value method is used.)
b. October 31, 2021.
c. December 31, 2021, including closing entries for end-of-year.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?Sweet Inc. issued $3,000,000 of convertible 10-year bonds on July 1, 2020. The bonds provide for 11% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $56,400, which is being amortized monthly on a straight-line basis.The bonds are convertible after one year into 9 shares of Sweet Inc.’s $100 par value common stock for each $1,000 of bonds.On August 1, 2021, $300,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash.Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) August 1, 2021. (Assume the book value…Kingbird Inc. issued $2,100,000 of convertible 10-year bonds on july 1,2020. The bonds provide for 12% interest payable semiannually on January 1 and july 1. The discount in connection with the issues was $51,600, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 9 shares of Kingbird Inc's $100 par value common stock for each $1000 of bonds. On August (1,2021,$210,000 of bonds were returned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization and interest in connection with the bonds as of the following dates. (a) August 1,2020. ( Assume the book value method is used). (b) August 31, 2021. (c) December 31,2021, including closing entries for the end of year.
- Volker Inc. issued $2,500,000 of convertible 10-year bonds on July 1, 2020. The bonds provide for 12% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $54,000, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 8 shares of Volker Inc.'s $100 par value common stock for each $1,000 of bonds. On August 1, 2021, $250,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Instructions Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Round to the nearest dollar.) a. August 1, 2021. (Assume the book value method is used.) b. August 31, 2021. c. December 31, 2021, including closing entries for end-of-year.Splish Inc. issued $5,250,000 of convertible 5-year bonds on July 1, 2025. The bonds provide for 6% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $108,000, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 15 shares of Splish Inc.'s $1 par value common stock for each $1,000 of bonds. On October 1, 2026, $630,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)…Sarasota Inc. Issued $4,200,000 of convertible 5-year bonds on July 1, 2025. The bonds provide for 6% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $102,000, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 15 shares of Sarasota Inc.'s $1 par value common stock for each $1,000 of bonds. On October 1, 2026, $504,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit…
- Bonita Inc. issued $2,280,000 of convertible 10-year bonds on July 1, 2025. The bonds provide for 12% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $48,000, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 8 shares of Bonita Inc.'s $100 par value common stock for each $1,000 of bonds. On August 1, 2026, $228,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)…Larkspur Inc. issued $5,550,000 of convertible 5-year bonds on July 1, 2025. The bonds provide for 6% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $117,000, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 15 shares of Larkspur Inc.'s $1 par value common stock for each $1,000 of bonds. On October 1, 2026, $666,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit…Kingbird Inc. issued $3,000,000 of convertible 10-year bonds on July 1, 2025. The bonds provide for 11% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $56,400, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 9 shares of Kingbird Inc's $100 par value common stock for each $1,000 of bonds. On August 1, 2026, $300,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash. Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the…
- On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of $160 million. The bonds were priced at $142.50 million (plus accrued interest) to yield 12%. The price if issued on January 1 would have been $139.75 million. 13 . W Interest is paid semiannually on June 30 and December 31. Baddour's fiscal year ends September 30. Required: 1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and statement of cash flows for the year ended September 30, 2024? Note: Enter your answers in whole dollars. Negative mounts should be Indicated by a minus sign. Answer is complete but not entirely correct. Balance sheet: Bonds payable (net) Interest payable Income statement: Interest expense Statement of cash flows: Financing activities Operating activities >> S 143,341,500 4,000,000 S 12,841,500 142,500,000 (8,000,000)On January 1, 2022, Aaron Incorporated issued $1,530,000 par value, 6%, 7-year bonds (i.e., there were 1,530 of $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1. The issue price of the bonds based on a 12% market rate of interest is $1,103,360. Prepare the amortization table for the first 2 years, assuming Aaron uses the straight-line method. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the table.) Date January 1, 2022 July 1, 2022 January 1, 2023 July 1, 2023 January 1, 2024 Cash Interest Straight-Line Interest Discount/Premium Amortization Carrying ValueOn January 1, 2021, Silay Company issued 2,000 convertible bonds. The bonds have a 3 year term and are issued at 110 with a face value of P1,000 per bond, giving total proceeds of P2,200,000. Interest is payable annually in arrears at a nominal annual interest rate of 6%. Each bond is convertible at any time up to maturity into 25 shares of capital with par value of P20. 60% of the bonds were converted on December 31, 2021. When the bonds are issued, the prevailing market rate for similar bonds without conversion privilege is 9%. 1. What is the carrying amount of the bonds as of December 31, 2022: