Companies cannot as a general rule reduce the capital of the business. However, there may be a class of capital which can be redeemed. Explain the accounting treatment necessary in a redemption of share capital. Illustrate your answer with your own numerical example.

Q: every six months, mahmood deposit $800 into an account paying 6% compounded semiannually. find the…

A: Present value (PV) = $800 Rate (r) = 6% or 0.06 Semiannually rate (r) = 0.0.3 (0.06/2) Time (n) = 30…

Q: A city needs a new pedestrian bridge over a local stream. The city uses an interest rate of 5%, and…

A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)

Q: Unfavorable materials quantity variances may be partially explained by favorable materials price…

A: Lets understand the basics. Material quantity variance indicates the variance between the standard…

Q: Sales revenue $74,800 Inventory (Mar. 31, 2021) $1,200 Advertising expense 5,900 Insurance expense…

A: Formula: Net income = Revenues - Expenses

Q: Direct Materials Purchases Budget Lorenzo's Frozen Pizza Inc. has determined from its production…

A: Raw Material required for production = Raw material required per unit * Units produced  Raw material…

Q: [The following information applies to the questions displayed below.] On January 1, Year 1, the…

A: Particulars Debit Credit Cash 27500   Accounts Receivable 15400   Allowance for Uncollectible…

Q: Jacques Ltd purchased a truck for $45,000 on 1 July 2018. It had an estimated useful life of three…

A: Depreciation means the reduction in the value of an asset over the life of the assets due to wear…

Q: reipts: an from John ings

A: Jean Smith Profit and Loss A/c for the Year ended 31-03-206…

Q: Roberto Designers was organized on January 1, 2021. The firm was authorized to issue 180,000 shares…

A: Stockholders equity = Common stock + Paid in capital in excess of par + Retained earnings - Treasury…

Q: Instructions: ldentify each of the following accounts as an asset, Liability or Equity. ACCOUNTS…

A: An equity is residual interest in net assets of the organization.

Q: What is accounting standard and how does Sime Darby Malaysia follows accounting standards ?

A: Answer:-  Accounting standards:- A collection of different different techniques and regulations used…

Q: Rafiel, Reyson, and Leanne are partners sharing profits and losses equally. The partnership is being…

A: The insolvency of one partner would be borne by remaining partners in profit loss sharing ratio.

Q: Swing Ltd uses FIFO for its inventory, which is valued at $21,000. It is considering a change to…

A: Inventory should be valued at cost or Net realisable value.

Q: The following transactions and adjusting entries were completed by Robinson Furniture Co. during a…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Scattergraph Method, High-Low MethodDeepa Dalal opened a free-standing radiology clinic. She had…

A: The scatter graph (or scatter graph) technique is a visual tool used in accounting to separate the…

Q: office.com received an $8000 invoice dated April 10. Terms were 2/10, 1/15, n/60. On April 14,…

A: Note: 2/10, 1/15, n/60: Here, 2 represents the discount rate if payment is made within ten days. 1…

Q: Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are…

A: Formula used: Profit margin=Net incomeNet sales×100 Asset turnover=Net salesAverage total assets…

Q: Quirk Corporation issued a 100% stock dividend of its common stock which had a par value of $10…

A: Since the shares have been issued a dividend which is::100% of par value.. The amount to be…

Q: The John and John Corporation has ordinary income of $250,000 for 2021, including dividends of…

A: Under USA Taxation rules, if the corporates are receiving any dividend from the other body…

Q: On January 1, 2022 Romano Company purchased a machine for $180,000. It is estimated that the machine…

A: Depreciation means the reduction in the value of an asset over the life of the assets due to the…

Q: Appropriation of retained earnings is necessary when the corporation reacquires its own share…

A: Acquisition of own share capital means purchase of corporate's own shares from the investors either…

Q: Using the information in AA8, how much is the total amount of Retained Earnings? P 150,000 P 100,000…

A: Retained earnings means the amount that is left after paying all the expenses and amount that…

Q: D. Theresa Company purchased for P4,500,000 a tract of land as a factory site. An old building was…

A: The actual costs of purchasing, installation, and commissioning assets are referred to as the cost…

Q: Problem 24-8 (IFRS) Preposterous Company received a government grant of P2,000,000 related to a…

A: Government grant means the amount received from government free of cost . It is received by…

Q: Accounts that normally have a credit balance are… lag stion © A. Expenses, capital & liabilities B.…

A: The normal balance is the balance side that increases the value of an item. And the opposite side of…

Q: Calculate the missing values and express the answers rounded to two decimal places. Rate of Amount…

A: Markup refers to an amount added to the cost price to ascertain the selling price of the product.

Q: Nike uses a job order cost system and applies factory overhead to production orders on the basis of…

A: Total manufacturing cost indicates the sum of the direct and indirect costs related to the…

Q: Haver Company currently pays an outside supplier $19 per unit for a part for one of its products.…

A: The question is based on the concept of Cost Management. When any method or project is to be…

Q: Gallant Sports is considering the purchase of a new rock-climbing facility. The company estimates…

A: Net present value = Present value of cash inflows - present value of cash outflows Net present value…

Q: Assuming the taxpayer is a CORPORATION, how much is the OSD and net taxable income using OSD?

A: Tax Tax refers to the compulsory payment made by individuals or corporations to the government.…

Q: Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory,Activity-Based Costing Lacy,…

A: I am answering the first 3 sub-parts of the question as per bartleby guidelines. Please re-submit…

Q: Production and Direct Labor Cost Budgets Two-Leg Company manufactures slacks and jeans under a…

A: The question is based on the concept of Cost Accounting.

Q: Peroni Company paid wages of $170,900 this year. Of this amount, $114,000 was taxable for net FUTA…

A: When a company doesn't even have enough liquid cash to meet its liabilities, it has cash flow…

Q: Record all transactions in appropriate T-accounts (costs by nature), close all accounts and  prepare…

A: Income Statement: An income statement is an accounting report that shows a company's net…

Q: IT Solutions Ltd. has a cash-settled SARS program for employees. These employees will receive a cash…

A: Journal book: Journal is the most important book of company as it is the beginning point of…

Q: What is SAVANT Framework and what do you understand about it?

A: SAVANT stands for strategy, anticipation, value-adding, negotiating, and transforming. It was…

Q: The Reading states that in a takeover bid, management is permitted to take defensive action provided…

A: The question is related to the effects on the company in case of a takeover Bid.   Generally, the…

Q: Mimi Company revealed the following account balances on December 31, 2020 Accounts payable.…

A: Introduction: Balance sheet: All assets and liabilities are shown in balance sheet. It tells the net…

Q: Required information [The following information applies to the questions displayed below.] Hans runs…

A: Ordinary gain = Non recapture 1231 losses of previous  5 years which are offset by 1231 gain during…

Q: During the reporting year the company's commodity output amounted cost - 12 million rubles,…

A: For many years, the Company earned significant cash from operations and has a strong credit capacity…

Q: During October, Rover Industries produced 37,000 units of product with costs as follows:   Direct…

A: Lets understand the basics. Variable costing is also known as margin costing. As per variable…

Q: On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a goodwill…

A: In the context of the given question, we are required to compute the non-controlling interest's net…

Q: Required Information Problem 7-42 (LO 7-2) (Algo) [The following information applies to the…

A: Capital gain is the increase in the value of asset and is realized when it is sold. The minimization…

Q: During February 2022, the following occurred in the business of Nam-Tura Trading, a general dealer:…

A: The amount paid by customer is calculated as total balance minus discount provided.

Q: and has the following inventory transactions for the half year ending 31 December 2020:   Units…

A: Weighted average method   Under this method average rate is calculated to value the inventory.…

Q: Prepare adjusting entry for October 31. Show computation. A bank loan amounting to P100,000 was…

A: Formula used: Interest amount = Loan amount x Interest rate

Q: The bank reconciliation shows the following adjustments: Deposits in transit: $862 Notes receivable…

A: Bank reconciliation (BRS): BRS is drawn up by the business to verify the cash book balance as per…

Q: Allocating payments and receipts to fixed asset accounts The following payments and receipts are…

A: Note: As per our guidelines, only the first three subparts must be answered.   1. Item Land Land…

Q: Y Inc. is a wholly owned subsidiary of P Corporation. The following are excerpts from the 2019…

A: Net income attributable to p corporation is the total net income after taxes which belongs to the p…

Q: Garcia Company has 11,500 units of its product that were produced at a cost of $172,500. The units…

A: In decision-making questions of Scrap or Rework analysis, the decision will be made on the basis of…