Hardev A company reported that its bonds with a par value of $50,000 and a carrying value of $61,000 are retired for $64,800 cash, resulting in a loss of$3,800. The amount to be reported under cash flows from financing activities is:Multiple ChoiceО$11,000.о$(3,800)О$(11,000).O$(61,000).о $(64,800).

When the company retires bonds for cash, it's considered a financing activity. So, the amount of…

Answered: A company reported that its bonds with…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company reported that its bonds with a par value of $50,000 and a carrying value of $64,000 are retired for $68,400 cash, resulting in a loss of $4,400. The amount to be reported under cash flows from financing activities is: Multiple Choice $(68.400). $(4.400). $14,000. 3/2
MC Qu. 12-110 Augusta Company reported that its bonds. Augusta Company reported that Its bonds with a face value of $62,000 and a carrylng value of $56,000 are retired for $62,000 cash. The amount to be reported under cash flows from financing activitles is: Multiple Cholce ($68,000) ($6.000) ($62,000) $0; this is an operating activity.
Maymay Company trial balance has the following selected accounts: Cash (includes P100,000 in bond sinking 500,000 fund for long term bond payable) Accounts receivable 200,000 Allowance of uncollectible accounts 50,000 Deposits received from customers 30,000 Merchandise inventory 70,000 Unearned rent 10,000 Investment at fair value to profit or loss 20,000 What amount should Mumay Company report as total current assets in its statement of financial position? O 740,000 640,000 720,000 O 670,000
At the end of the reporting period, Michael Scott Company reports the following selected accounts and balances: Cash, $50,000 · Accounts Receivable, $42,000 Inventory, $28,000 Allowance for Doubtful Accounts, $12,000 Equipment (net of A/D), $100,000 Accounts Payable, $20,000 • Common Stock, $55,000 Premium on Bonds Payable, $16,000 Using the above information, answer the following questions: A) What is the company's current ratio? (Select] B) What is the company's quick (acid-test) ratio [Select)
Clayton Industries has the following account balances: Current assets Noncurrent assets The company wishes to raise $45,000 in cash and is considering two financing options: Clayton can sell $45,000 of bonds payable, or it can issue additional common stock for $45,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places. Currently If bonds are issued If stock is issued $ 22,000 Current liabilities 77,880 Noncurrent liabilities stockholders' equity Currently If bonds are issued If stock is issued Current Ratio 2.44 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Bonds Stock to 1 to 1 Debt to Assets Ratio Additional Retained Earnings $ 9,000 50,000 48,888 % % % b. Assume that after the funds are invested, EBIT…
ABC Company provided the following account balance on December 31, 2020:Accounts payable and accruals 700,000Bonds payable 3,500,000Stock dividends payable, issuance in 2021 250,000Provisions 700,000Further analysis of ABC Company’s accounts revealed the following: Accounts payable and accruals included the following: Bank overdraft – BPI account, ₱40,000; ABC Company does not have any other account in BPI. Accrued expenses for utilities, ₱90,000. Bonds payable included the following: 6% term – bonds, maturity date January 1, 2021. 8% serial bonds, ₱2,000,000 of which 250,000 matures every December 31. 10%, term – bonds, maturity date January 1, 2026, recorded at face amount of ₱1,000,000; the bondswere issued on December 31, 2020 at a discount of ₱120,000 giving it a yield rate of 12% and wasrecorded as expense. PRELIM – ACT17 | M. MANAYAO,CPA 3 Provisions included the following: ₱500,000 representing the estimated cost to clean up a small lake due to contamination caused by…
LOL Company assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5%loan with a bank. The entity was also assessed by the bank a finance charge of 6% on thetransaction and is paid up front. What amount should be recorded as a gain or loss on thetransfer of accounts receivables? A. PO B. P240,000 loss C. P100.000 gain D. P150,000 gain
19. Ebasan Company have the following account balances: Cash (net of overdraft of P100,000) Accounts receivable Accounts payable Notes payable Loans payable Income tax payable Warranty obligations Deferred revenue Cumulative, redeemable preference shares at the option of the holder Non-cumulative, non-redeemable preference shares What is the total amount considered as financial liabilities? A. 4,620,000 B. 3,620,000 C. 4,600,000 D. 4,500,000 P300,0000 450,000 1,200,000 500,000 1,800,000 120,000 180,000 240,000 1,000,000 2,000,000
BSO, Inc., has assets of $600,000 and liabilities of $450,000, resulting in a debt-to-assets ratioof 0.75. For each of the following transactions, determine whether the debt-to-assets ratio willincrease, decrease, or remain the same. Each item is independent.a. Purchased $20,000 of new inventory on credit.b. Paid accounts payable in the amount of $50,000.c. Recorded accrued salaries in the amount of $100,000.d. Borrowed $250,000 from a local bank, to be repaid in 90 days.
Osco Ltd uses the allowance method of accounting for bad and doubtful debts. Bad and doubtful debts expense shown in the statement of financial performance is $10 000 and the amount of bad debts actually written off is $8 000. If sales are $220 000 and accounts receivable have increased by $12 000 over the period, the amount to be shown in the statement of cash flows for receipts from customers is: O $240 000 O $200 000 O $210 000 O $220 000
The latest statement of financial position for Malorie Limited is summarized below: GH¢'000 GHc '000 GH 000 Non-current assets (NBV) 5.700 Current assets Inventory 3.500 Receivables 1.800 5.300 Current liabilities Unsecured payables 4.000 Unsecured Bank overdraft 1.600 5.600 (300) Total assets less current liabilities 5.400 Non-Current Liabilities 10% secured debentures (13.000 Net assets 2,400 Financed by: Stated capital Income Surplus 4.000 (1.600) 2.400 Malorie's stated capital consists of 4.000.000 ordinary shares issued at GHel.00 and fully paid. The non-current assets comprise freehold property with a book value of GH¢3.000.000 and plant and machinery with a book value of GHc2,700,000. The debentures are secured on the freehold property In recent years the company has suffered a series of trading losses which have brought it to the point of liquidation. The directors estimate that in a forced sale the assets will realize the following amounts. GHSFreehold premises Plant and…
A company has $1,364 in inventory, $4,809 in net fixed assets, $652 in accounts receivable, $290 in cash, $610 in accounts payable, and $5,404 in equity. What is the company's long-term debt? Multiple Choice O $1,711 $1,138 O$1,280 $1,669

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