On May 1, 2020 Setup Inc, sold an issue of 5%, 1000 bonds dated January 1, 2020, to yield 5%. The bonds p Provide journal entries to be made by Setup Inc at each of the following dates May 1, 2020, bond issuance 2 june 30, 2020, first interest payment Note List multiple debits or credits (when applicables in alphabetical order. Note Round your answer to the nearest whole dolar. Bate May yeres every june 30 and December 31, and mature December 31, 2024 indicate the amount of interest expense to be recorded in the income statement of Setup inc for the six months ended June 30, 2020.

Q: John and Saah met at law school and decide to start a small law practice after graduation. They…

A: There are several legal forms from which a business can select as the form it wants to take for…

Q: Corporation owns a residential house with a fair market value of $10,000,000 and a carrying amount…

A: Fringe benefits tax refers to the tax levied by the authoritative government over the perks received…

Q: Accountants refer to an economic event as a

A: The accountant is the person that keeps a record of all transactions of the company. The accountant…

Q: Kapoor Corporation uses the following activity rates from its activity-based costing to assign…

A: It is a method used to assign the manufacturing overhead cost to the finished goods. It assign cost…

Q: Using the Exhibit below, assume that the balance of Merchandise Inventory was $170,000 at the…

A: Increase…

Q: Which of the following is not recorded as a business transaction of a sole trader who uese an…

A: The business transactions that are recorded in the book of accounts are the transactions that can be…

Q: Ending inventory Cost of goods sold $ $

A: First-in-First-out (FIFO) The FIFO method requires that what comes in first goes out first. FIFO…

Q: Construct a material usage and purchases budget of the Bara Enterprise.

A: A material usage and purchases budget is a statement of estimation of a material required to produce…

Q: Current information for the Healey Company follows: Beginning raw materials inventory Raw material…

A: Cost of goods manufactured includes the total cost of goods that are finished during the period.…

Q: Solaris Company Limited , makers of solar water heaters, uses a perpetual inventory system. The…

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

Q: Loreal-American Corporation purchased several marketable securities during 2021. At December 31,…

A: Unrealized loss is =   Short term loss - long term gain   =  $45000 - $20000   = $25000

Q: Len Kumar started his own consulting firm, Kumar Consulting, on June 1, 2017. The trial balance at…

A: In the context of the given question, we are required to prepare the ledger in the books of Kumar…

Q: ABC Company reported net income and retained earnings for a two-year period as follows: 2020 2021…

A:

Q: March 1 Invested OMR 10,000 as capital March 3 Purchased office furniture for OMR 3,000 from Blossom…

A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…

Q: Q4: Company XYZ has a choice of two machines to purchase. They both make the same product which…

A: INTRODUCTION: The break-even point is the point at which the firm's entire cost equals total income.…

Q: following table lists data from the budget of Ritewell Publishers. Half the company’s sales are for…

A: Working note

Q: er type of account name for gift card lia

A: Gift card liability refers to the concept that reflects that the company has the obligation to…

Q: An entity provided the following data for the current year: Net Income – P 4,000,000 Ordinary…

A: Calculating Diluted EPS  48000 stock options would increase the number of outstanding shares by…

Q: Urban Window Company had gross wages of $370,000 during the week ended July 15. The amount of wages…

A: Journal Entry :- The purpose of preparing the journal entry to segregate the transaction which are…

Q: Statement 1: Goal congruence will more likely occur if management can establish the performance…

A: The performance measurement of the managers is very important for the company because it needs to…

Q: An investor buys a five-year, 7.5% annual coupon bond priced to yield 5%. The investor plans to sell…

A: Macaulay duration=∑Present Value of Time-Weighted Cash Flows∑Present Value of Cash Flows

Q: An entity provided the following data for the current year: Net Income – P 4,000,000 Ordinary…

A: Basic EPS = net income/ No. of Shares Outstanding = 4000000/250000 = P 16

Q: A client owns a bakery that has been in business for three years. he has reached out to you, her…

A: When the taxpayers are able to deduct extra depreciation equal to a huge percentage of the cost of…

Q: Current Attempt in Progress The cost of goods sold computations for Flint Company and Pina Colada…

A: INTRODUCTION: The investment turnover ratio informs investors about how well a firm uses its…

Q: On January 1, 2021, Watermelon Company issued 3,000 of its 10%, 5-year P1,000 face value bonds with…

A: On 1st January 2021, Watermelon Company has issued 3000 10% 5 year bonds with detachable warrants.…

Q: Question 18: Which statement is incorrect regarding filters? Answer: A. B. C. D. O Records not…

A: When a filter in excel is applied, the auto filter button in the associated column heading displays…

Q: ABC Company reported net income and retained earnings for a two-year period as follows: 2020 2021…

A: The adjusted net income for any accounting year is equal to the net income adjusted for al the…

Q: > Doraville Inc. intends to reduce its collection by modifying the collection procedures. Its plan…

A: Average collection period means that by the said period the amount of the credit sales will be…

Q: Using the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of…

A: Statement of Cash Flow - In the indirect method of cash flow it starts with Net income and adding…

Q: Using accrual accounting rules, XYZ Co. places an order with ABC Co. on January 4, 2022. Does ABC…

A: Cash basis of accounting states that the revenues and expenses would be recorded when the cash is…

Q: From the following, calculate the cost of ending inventory and cost of goods sold for the LIFO…

A: LIFO Method - Under FIFO Method of Inventory valuation inventory purchased latest will be sold first…

Q: QUESTION 1: Identify the right answer for the following statements. The salary of the director of a…

A: The sum of all expenses incurred in producing an item or service that has been sold is known as the…

Q: ion to answer the following 4 questions. Accounts payable 20,000 Cash 55,000 Interest Expense…

A: Current assets to those investments or assets bought by a company that can be easily converted into…

Q: Martin Services Company provides its employees vacation benefits and a defined contribution pension…

A: INTRODUCTION: After retiring, the company makes a specified recurring payment to the employee. The…

Q: When preparing the Statement of Cash Flow using the indirect method for the current year, which of…

A: Cash Flow From Investing Activities Cash flow from investing activities refers to cash inflow and…

Q: Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On…

A: Annual Depreciation-Straight line=Cost of the asset-Residual valueUseful life

Q: 4. Start with the Wednesday balance sheet for The Friendly Bank shown below (page 322 in the text).…

A: The balance sheet of the fed and the banks is dependent on the amount of reserves kept by the bank…

Q: Jasin Company projected operating income ( based on sales of 450,000 units ) for the coming year as…

A: Break-even is the point wherein the entity is in a situation of a no profit and no loss. The entity…

Q: ILLUSTRATIVE EXAMPLE Record the following credit purchases transactions in the Creditors Journal of…

A: Creditors- A creditor is a legal entity, a corporation, or an individual who has provided goods,…

Q: Shellhammer Company's inventory records show the following data for the month of Sept Inventory,…

A: Cost of goods sold= Opening inventory + purchase - closing inventory Under FIFO method,we assume…

Q: i 5 Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs and…

A: Selling price = Manufacturing cost + (Manufacturing cost×20%)

Q: REQUIRED (a) (b) Prepare the statement of financial performance for the year ended 30 November 2019.…

A: Financial statements are prepared at the end of accounting period for review of profitability and…

Q: indirect method of reporting cash flows from operating activities focuses on the differences between…

A: Cash flow statement is a financial statement that shows how changes in balance sheet accounts and…

Q: Statement 1: Examples of period costs include payments to lawyers for litigation expenses related to…

A: Period costs are costs incurred or expensed in the particular period. It includes selling and admin…

Q: Required: a) Enter the opening balances from the August 2021 balance sheet into the general ledger…

A: Post Closing Trial Balance While preparing the post closing Trial balance first to close the revenue…

Q: 1. How much overhead cost would be assigned to Product J00A using the company's activity-based…

A: Activity-Based Costing An organization's activities can be identified using the activity-based…

Q: Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the…

A: Variance is the result of the amount of expected value and actual results. It can be calculated by…

Q: During May,the Friendly Resort had income of $10,000 and expenses of $4000.The owner withdrew $800…

A: Owner equity represents the owner's investment in the business minus withdrawal from the business…

Q: For each of the transactions in items 2 through 5, indicate the two (or more) effects on the…

A: Accounting Equation: According to the accounting equation, the total assets of a corporation are…

Q: What is the asset turnover for 2021

A: Assets Turnover:— It is the Ratio between net sales of the company and Total Assets of the Company.

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.