Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 14, Problem 3JC
To determine
The way in which the company should account for financial instrument on the balance sheet under IFRS.
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During the course of your examination of the financial statements of Sunland Corporation for the year ended December 31, 2025, you
found a new account, "Investments." Your examination revealed that during 2025, Sunland began a program of investments, and all
investment-related transactions were entered into this account. Your analysis of this account for 2025 follows:
Date-2025
Feb. 14
July
26
Sept.
28
Apr.
Oct. 28
30
Sunland Corporation
Analysis of Investments Account
For the Year Ended December 31, 2025
(a)
Blossom Company Common Stock
Purchased 3,900 shares @ $66 per share.
Received 390 shares of Blossom Company common stock as a stock dividend.
(Memorandum entry in general ledger.)
Sold the 390 shares of Blossom Company common stock received July 26 @ $70 per
share.
(b)
Daniel Inc. Common Stock
Purchased 18,100 shares @ $42 per share.
Received dividend of $1 per share.
Debit
$257,400
$760,200
Credit
$27,300
$18,100
MSI Inc -(ALL ENTRIES FOR MSI ONLY)
KEY for Accounting Component
Assets = A
Liabilities = L
Stockholders' Equity = SE
Accounting
Component
On July 1st 2019, MSI Inc issued $800,000, 3%, 10 year bonds at 103. The bonds pay interest annually. Prepare the
Debit (DR)
Credit (CR)
Account
3
journal entry to record the issuance of the bonds. What is the total cost of borrowing?
TOTAL COST OF BORROWING =
On January 1st 2020, MSI Inc issues $500,000 4%, 6 year bonds at face value. Prepare the entry to record the
issuance of the bonds.
On December 31st 2020, MSI Inc does an adjusting entry to record the accrual of interest for #4 above.
On January 1st, 2020, MSI pays the accrued bond interest and calls the bonds at 101 (refer to #4 above). Record the
payment of interest and redemption of the bonds.
Subject :- ADVANCED FINANCIAL ACCOUNTING (FIN611)
Question # 2:XYZ Limited has the following loans outstanding as at December 31, 2020. Calculate the Capitalization RateLoan – A @ 8% (taken at January 01, 2020) Rs. 600,000Loan – B @ 5% (taken at July 01, 2020) Rs.400,000Loan – C @ 9% (taken at September, 01 2020) Rs.300,000The company spent following amounts on construction of an asset.March 01, 2020. Rs. 500,000August 01, 2020. Rs. 400,000December 1, 2020 Rs. 400,000
Note:- Solve these question and please explain in detail in such a way that i will get full marks.
Chapter 14 Solutions
Intermediate Accounting
Ch. 14 - What conditions or terms does a note payable...Ch. 14 - If the market rate of interest exceeds the face or...Ch. 14 - What is included in bond issue costs and how...Ch. 14 - Prob. 14.4QCh. 14 - When a bond is issued at a discount, will its...Ch. 14 - Prob. 14.6QCh. 14 - Prob. 14.7QCh. 14 - Under IFRS, how do firms account for convertible...Ch. 14 - Prob. 14.9QCh. 14 - Can companies reclassify short-term debt expected...
Ch. 14 - Under IFRS, can companies reclassify short-term...Ch. 14 - Do companies always reclassify long-term debt that...Ch. 14 - Prob. 14.13QCh. 14 - Prob. 14.14QCh. 14 - Prob. 14.15QCh. 14 - Prob. 14.16QCh. 14 - Prob. 14.1MCCh. 14 - Prob. 14.2MCCh. 14 - Prob. 14.3MCCh. 14 - Prob. 14.4MCCh. 14 - Prob. 14.5MCCh. 14 - Clothes Horse Corp. (CHC) Issued 500,000 bonds due...Ch. 14 - Prob. 14.7MCCh. 14 - Prob. 14.8MCCh. 14 - Prob. 14.9MCCh. 14 - Prob. 14.10MCCh. 14 - Prob. 14.11MCCh. 14 - Prob. 14.1BECh. 14 - Notes Payable. Using the information provided in...Ch. 14 - Prob. 14.3BECh. 14 - Prob. 14.4BECh. 14 - Prob. 14.5BECh. 14 - Prob. 14.6BECh. 14 - Bond Terminology. Match each term with its...Ch. 14 - Bond Pricing. Fill in the missing items for each...Ch. 14 - Prob. 14.9BECh. 14 - Bond Issue Price. Using the information from...Ch. 14 - Prob. 14.11BECh. 14 - Prob. 14.12BECh. 14 - Prob. 14.13BECh. 14 - Prob. 14.14BECh. 14 - Prob. 14.15BECh. 14 - Prob. 14.16BECh. 14 - Prob. 14.17BECh. 14 - Prob. 14.18BECh. 14 - Bonds Issued between Interest Payment Dates. For...Ch. 14 - Prob. 14.20BECh. 14 - Prob. 14.21BECh. 14 - Prob. 14.22BECh. 14 - Prob. 14.23BECh. 14 - Prob. 14.24BECh. 14 - Prob. 14.25BECh. 14 - Prob. 14.26BECh. 14 - Prob. 14.27BECh. 14 - Prob. 14.28BECh. 14 - Prob. 14.29BECh. 14 - Prob. 14.30BECh. 14 - Prob. 14.31BECh. 14 - Prob. 14.32BECh. 14 - Prob. 14.33BECh. 14 - Prob. 14.34BECh. 14 - Prob. 14.35BECh. 14 - Prob. 14.36BECh. 14 - Prob. 14.37BECh. 14 - Prob. 14.1ECh. 14 - Prob. 14.2ECh. 14 - Prob. 14.3ECh. 14 - Prob. 14.4ECh. 14 - Prob. 14.5ECh. 14 - Prob. 14.6ECh. 14 - Prob. 14.7ECh. 14 - Prob. 14.8ECh. 14 - Prob. 14.9ECh. 14 - Prob. 14.10ECh. 14 - Prob. 14.11ECh. 14 - Prob. 14.12ECh. 14 - Prob. 14.13ECh. 14 - Prob. 14.14ECh. 14 - Prob. 14.15ECh. 14 - Prob. 14.16ECh. 14 - Warrants. DHC Associates issued 2,100 of its...Ch. 14 - Prob. 14.18ECh. 14 - Prob. 14.19ECh. 14 - Prob. 14.1PCh. 14 - Prob. 14.2PCh. 14 - Prob. 14.3PCh. 14 - Prob. 14.4PCh. 14 - Prob. 14.5PCh. 14 - Prob. 14.6PCh. 14 - Prob. 14.7PCh. 14 - Prob. 14.8PCh. 14 - Prob. 14.9PCh. 14 - Prob. 14.10PCh. 14 - Prob. 14.11PCh. 14 - Prob. 14.12PCh. 14 - Prob. 14.13PCh. 14 - Prob. 1JCCh. 14 - Prob. 2JCCh. 14 - Prob. 3JCCh. 14 - Prob. 1FSCCh. 14 - Prob. 1SSCCh. 14 - Surfing the Standards Case 2: Bonds with...Ch. 14 - Prob. 1BCC
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