Use the information given from Arlon Manufacturers to prepare the Cash Budget for each of the first three months of operations (i.e. January, February, and March 2024). Use separate monetary columns for each month.
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Use the information given from Arlon Manufacturers to prepare the
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- asap Benson Limited is constructing a Power Plant which was completed on 31st December 2019. The company obtained a bank loan of R1,000,000 at a rate of 15% per annum to construct the Power Plant on 1st January 2019. As of 31st December 2019, Benson Limited also had the following loans outstanding: I. 18% 5-year loan Note of R1,500,000 II. 14% Debentures of R1,000,000 Expenditures on the project were made as follows: I. On the 31st March 2019, R600,000 was incurred; II. R800,000 was incurred on 30th June 2019; III. The final expenditure incurred was R300,000 on 31st December 2019. During the year Benson Limited invested R400,000 of the bank loan for 2 months at an interest of 9% per annum. Required: Determine the amount of borrowing costs to be capitalized and expensed.Benson Limited is constructing a Power Plant which was completed on 31st December 2019. The company obtained a bank loan of R1,000,000 at a rate of 15% per annum to construct the Power Plant on 1st January 2019. As of 31st December 2019, Benson Limited also had the following loans outstanding:I. 18% 5-year loan Note of R1,500,000II. 14% Debentures of R1,000,000Expenditures on the project were made as follows:I. On the 31st March 2019, R600,000 was incurred;II. R800,000 was incurred on 30th June 2019;III. The final expenditure incurred was R300,000 on 31st December 2019.During the year Benson Limited invested R400,000 of the bank loan for 2 months at an interest of 9% per annum.Required: Determine the amount of borrowing costs to be capitalized and expensed.Benson Limited is constructing a Power Plant which was completed on 31st December 2019. The company obtained a bank loan of R1,000,000 at a rate of 15% per annum to construct the Power Plant on 1st January 2019. As of 31st December 2019, Benson Limited also had the following loans outstanding: 18% 5-year loan Note of R1,500,000 14% Debentures of R1,000,000 Expenditures on the project were made as follows: On the 31st March 2019, R600,000 was incurred; R800,000 was incurred on 30th June 2019; The final expenditure incurred was R300,000 on 31st December 2019. During the year Benson Limited invested R400,000 of the bank loan for 2 months at an interest of 9% per annum. Required: Determine the amount of borrowing costs to be capitalized and expensed. I. II. I. II. III.
- a. Abc Investment Ltd., plans to borrow Ghc100,000 for a 90-day period from Lloyds Finance Company. Abc investment would repay the principal amount plus Ghc5,000 interest at maturity. Determine and calculate the Annual Percentage Rate of the credit to Abc Company Ltd. b. Belinda Limited has annual credit sales of Ghc5 million and cost of sales of GHC1.8 million. The company’s current assets consist of inventory and trade receivables. Current liabilities consist of accounts payables and an overdraft facility with an average interest rate of 10% per annum. The company gives 60 days credit to its customers and is allowed an average of 30 days credit by trade suppliers. The company has an operating cycle of 90 days. Other relevant information: Current ratio of Ait Ltd 1.5:1 Cost of long-term finance to Ait Ltd is 12% per annum Required: Calculate the, (i) Size of the overdraft of Ait Ltd (ii) Net working capital of the company (iii) Total cost of financing its current assets c.…On January 1, 2020, the India Inc. issued P3,000,000, 13% promissory note for an equipment purchased. The note is to be paid on December 31, 2020. Interest is payable annually. The effective interest at the time of issuance of this note is 12%. (Use 4-decimal places for the PV factor)How much is the carrying value of the note on December 31, 2020?Mat Ltd borrows $360 000 from Place Ltd on 1 July 2022 with an interest rate of 6% p.a. The loan is for 5 years. The interest is to be paid monthly, starting on 1 July 2022. Gon Ltd owns all the share capital of Dola Ltd. Sean Ltd borrows $800 000 from Gon Ltd on 31 December 2022 with an interest rate of 6% p.a. The interest is to be paid annually in advance, starting on 31 December 2022. Required: In relation to the above intragroup transactions: Prepare adjusting journal entries for the consolidation worksheet at 30 June 2023.
- Entei Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on the loan is 8% payable semi-annually. The loan matures in three years on December 31, 2022. The effective interest rate on the loan is 10%. How much is the total interest income to be presented on the statement of comprehensive income for 2020?On 01/09/20x1 the company received an interest-bearing loan of 12000 euros for a period of 8 months. The interest rate was agreed at 8% per annum and the total interest will be paid at the end of the loan together with the capital.On 1 January 2017, a company which prepares financial statement to 30 June each year buys € 400,000 of 5% loan notes for € 411,225. Interest will be received half-yearly on 30 June and 31 December and the loan notes will be repaid at a premium of 10% on 31 December 2020. The effective rate of interest is 3.5% per half year and the company intends to hold this investment until maturity. Calculate the amount of interest income that should be recognised in the company's financial statements for each of the years to 30 June 2017, 2018, 2019. Also calculate the amount at which the loan notes should be shown in the statement
- No. One Benson Limited is constructing a Power Plant which was completed on 31st December 2019. The company obtained a bank loan of R1,000,000 at a rate of 15% per annum to construct the Power Plant on 1st January 2019. As of 31st December 2019, Benson Limited also had the following loans outstanding: I. 18% 5-year loan Note of R1,500,000 II. 14% Debentures of R1,000,000 Expenditures on the project were made as follows: I. On the 31st March 2019, R600,000 was incurred; II. R800,000 was incurred on 30th June 2019; III. The final expenditure incurred was R300,000 on 31st December 2019. During the year Benson Limited invested R400,000 of the bank loan for 2 months at an interest of 9% per annum. Required: Determine the amount of borrowing costs to be capitalized and expensed.A Ltd issued a 5% loan note on 1 April 2012 at its face value of K25 million. Direct costs of the issue were K1,500,000. the loan note will be redeemed on 31 March 2015 at a substantial premium. The effective interest rate applicable is 10% per annum. Explain the accounting treatment of the above instrumentCarriageways Co had the following bank loans outstanding during the whole of 2023 which form the company’s general borrowings for the year: £m 9% loan repayable 20X9 15 11% loan repayable 20Y2 24 Carriageways Ltd began construction of a qualifying asset on 1 April 2023 and withdrew funds of £6 million on that date to fund the construction. On 1 August 2023 an additional £2 million was withdrawn for the same purpose. Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 2023.