Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year, the investee distributed 50,000 stock rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130 and each right had a market value of P20 on the date of issue. What amount should be debited to the investment account if the rights were not accounted for separately?
Q: Choose a company that creates a product or offers a service that you are familiar. Using the company...
A: Answer with explanation are s follows.
Q: Question 21, Warm-Up 1-6 (algorithmic) For 2020, Ross Corporation had pretax ordinary income of $501...
A: Calculation of Tax Liability For Calculating the tax liability which is consider the fact of the tax...
Q: 1. Russia Company provided the following information on December 31, 2021: Jan. 15, 2022 - P3,000,00...
A: Adjusting Entry: It is journal entry prepared at the end of the accounting year to adjust reven...
Q: before-tax yearly income of $203,000 and has no debt outstanding. Expanding Hemingway Corporation is...
A: The formula to calculate tax liability is - Tax liability = EBT * Tax rate where, EBT is Earning bef...
Q: Problem 4. Masagana Corporation has a PI,500,000 credit balance of Accumulated Profits (Losses) in 2...
A:
Q: Al's Advertising Company trades in a red vehicle which had originally cost the Company $22,000 for a...
A:
Q: Worldwide Fuels, a public limited company, is preparing its financial statements for the year ending...
A: Calculation of above requirement with proper explanation are as follows.
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per un...
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary wit...
Q: ABC Corporation’s liability account balances at June 30, 2018, included a 10% notes payable in the a...
A: What amount should be recorded as accrued interest for this note:- Accrued interest:- = outsta...
Q: The cost of discounts missed on credit terms 2/10, n/50 is (use 360 days)
A: Cost of Discounts missed = [{1 + Discount % / (1 - Discount %)}^(360 / Days Past Discount)] - 1 Here...
Q: Frito-Lay, Inc., manufactures snack foods. Production of Doritos occurs in four steps: cleaning, mix...
A: The question is based on the Cost Accounting.
Q: Interest versus dividend income Depot Logistics Inc. has declared pretax income from its operations ...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...
Q: Describe the difference between a sole proprietorship, a partnership, and a corporation?
A: Ownership- Ownership is the condition or fact of legal control and control over possessions, which m...
Q: Elegance Esthetics Wholesalers Corporation sells various esthetics treatment tools, esthetic and spa...
A:
Q: A, keepers of garage, whose gross receipts in year 2017 totaled P 3,050,000. In year 2018, the total...
A: Common carriers tax is similar to percentage tax. Percentage tax includes the threshold limit, beyon...
Q: ABC Company is an operator of service equipments for overseas communications / calls. During the 3rd...
A: Percentage tax due is the indirect tax which is calculated on the gross receipts or gross sales. Per...
Q: 2022 Formula One World Championship pre-season testing session just started and due to the porpoisin...
A: WORKING FOR CALCULATION OF GOODWILL PARTICULARS AMOUNT (In Php) PURCHASE CONSIDERATION P...
Q: On December 31, 2016, ABC Corp. issues $50,000,000 of 5%, 25-year, convertible bonds for total proce...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tat...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: Using accrual accounting and the preceding values, show the firm's net proft for the past year in th...
A: Please See Step 2 for the Statement as required.
Q: 1) know the difference between a service business and a manufacturing business. 2) What does journa...
A: I am answering the first 3 questions as per bartleby guidelines. Please re-submit the remaining ques...
Q: On the first day of the current fiscal year, $1,500,000 of 8%, 10-year bonds, with interest payable ...
A: Journal entries are the initial reporting of the transactions in the books of an entity.
Q: Required information [The following information applies to the questions displayed below.] Complete ...
A: Calculation of depreciation and other necessary requirement are as follows.
Q: Indicate if assessable income has been derived and when it was derived in the following situations....
A: The employee received = $1500 on 29th June. Assessable income will be derived in the period in which...
Q: he Distribution Point plans to save $2,000 a month for the next 3 years for future emergencies. The ...
A: In this question, we will calculate the future value of an annuity 1. Annuity: this is used in case...
Q: arter 2, 43,400 bags. Selling price i re requires 4 pounds of Gumm at a
A: Direct materials Budget - Gumm : CRANE FARM SUPPLY COMPANY Direct materials Budget - Gu...
Q: Which of the following statements is true? You intend to purchase a 10-year, $1,000 face value bond...
A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value Present...
Q: 1. Define and site and example of a Savings and Mortgage Banking. 2. Site and Example of a Long Term...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: In July, Zinger Corp. purchased 52,000 gallons of Numerol for $158,600 to use in the production of p...
A: The question is based on the concept of Cost Accounting.
Q: Brent Wells is single and lives alone. During 2021 he earned employment income of $133,000. His empl...
A: The standard deduction for single filer in Canada for 2021 is $ 13,808 ...
Q: Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year,...
A: The correct answer calculation is given in the following steps.
Q: Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct la...
A:
Q: Problem 4. Masagana Corporation has a PI,500,000 credit balance of Accumulated Profits (Losses) in 2...
A:
Q: data in the first quarter of 2018: Accounts receivable, beginning Accounts receivable, ending Trade ...
A: Professional tax is the tax which is applicable on the person who is not registered under VAT. This ...
Q: At the start of the current year, Violet Company held 30% of ABC Company’s 150,000 outstanding share...
A: From ABC Company DEF Company No of share held by Violet 45,000 10,000 ...
Q: The simple interest rate charged on a $8,600 loan is two-thirds of 1% per month. If the principal an...
A: Simple Interest Rate = 1% x 12 x 2 / 3 = 8% Interest = Principal x Interest Rate x No. of Years Here...
Q: For 2020, Ross Corporation had pretax ordinary income of $501,000 and sold for $149,000 an asset pur...
A: Lets understand the basics. This question deals with the USA taxation as per currency symbol. For ta...
Q: P company bought 60% of common stock of S company on January 1, 20x4. On January 1 20x5, there was a...
A: Net income means deducting all the expenses (Costs) allowances and taxes of an individual are known ...
Q: The Dec. 31, 2016, statement of financial position of Leon Company showed Accounts Receivable of P50...
A: Bad debts are also known as doubtful debts. The bad debts expenses estimated for a particular period...
Q: A bond pays a coupon of $39 twice a year. What is the coupon rate? Answer as a percent.
A: Coupon rate = total coupon amount paid in a year/face value of the bond
Q: The DEF Corp has $3,000 of accumulated E&P and $18,000 of current E&P. It distributed $5,000 on Febr...
A: A company has two Earnings & Profit accounts: Current earnings and profit (E&P) – for curren...
Q: Accrual income versus cash flow for a period. Thomas Book Sales, Ic., supplies textbooks to college ...
A: Under Accrual Basis , Net Income = Sales revenue - Cost of goods sold Under Cash basis , Net cash fl...
Q: Shown below are the unit information and a summary of the costs charged to a production department o...
A: To ascertain the costs of finished goods and ending work-in-progress, we need to calculate the equiv...
Q: 5. For common-size statement of comprehensive income , _______________ is set 100% a. Net Sales b....
A: Common size statement shows vertical analysis of the items of financial statements with respect to o...
Q: company has accounts payable of P5,000,000 with terms of 2% discount within 15 days, net 30 days (2/...
A: 1. 2/15, net 30 means if payment is made within 15 days, company will get 2% discount. 2. In this q...
Q: Zachary Company has 600,000 shares of common stock outstanding. Perette Corporation purchases 168,00...
A: Formula: Percentage of Outstanding Zachary stock Perette own = Perette Corporation purchased shares ...
Q: 7
A: We know that in order to avail tha cash discount we need to settle the amount on or before that due ...
Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays semiann...
A: Solution:- Given, Company issues =$500,000, 8%, 10-year bond that semiannual Interest = $20,000 ($5...
Q: Cashan Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 1.5 kilograms ...
A: Production need for October month = Budgeted production for October x raw material required per unit...
Q: Identifying agency problems, costs, and resolutions You are the CEO of Nelson Corporation, and the c...
A: Takeover is a situation in which one company purchase the other company by paying consideration. We ...
Step by step
Solved in 2 steps
- Nakeeta company owned 50,000 ordinary shares which were purchased for P120 per share. During the year, the investee distributed 50,000 stock rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130, and each right had a market value of P20 on the date of issue. What amount should be debited to the investment account upon exercise of the share rights if the rights were not accounted for separately? 2,250,000 3,250,000 3,050,000 5,500,000Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year, the investee distributed 50,000 stock rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130 and each right had a market value of P20 on the date of issue. What amount should be debited to the investment account if the rights were not accounted for separately?Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year, the investee distributed 50,000 stock rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130 and each right had a market value of P20 on the date of issue. What amount should be debited to the investment account if the rights were not accounted for separately? Present solution in good accounting form
- Aldous Corporation owned 50,000 ordinary shares held for trading. These 50,000 shares were purchased for P120 per share. During the year, the investee distributed 50,000 share rights to its investor. The investor was entitled to buy a one new share for P90 cash and two of these rights. Each share had a market value of P130 and each right had a market value of P20 on the date of issue. 15. What total cost should be recorded for the new shares that are acquired by exercising the rights? a. 2,250,000 c. 3,050,000 b. 3,250,000 d. 5,500,000Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for E13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At year-end, Sherman shares were selling for £34.50 per share. How much total revenues (all revenues) should be recognized from this investment during the year? Select one: Oa. $1900 Ob. $700 OC $1300 Od. $600Shell product decided to raise additional financing by issuing common stock. The company received OMR6400 in exchange for OMR 1500 shares of OMR 1 par value common stock. By what amount should the additional paid-in capital account increase as a result of this transaction? Select one: a. OMR7900 O b. None of the options c. OMR3000 O d. OMR4900
- ABC Co holds 20,000 shares of XYZ Inc as investment in equity security measured at FVOCI. The investment has carrying amount of P500,000. On October 1, 20x1, ABC Co receives 20,000 stock rights to subscribe for new shares @ P10 per share for every 5 rights held. The fair value per stock right if P5. On November 2, 20x1 15,000 stock rights were sold @ 4 per right. On December 1, 20x1 remaining stock rights have expired. Requirement: Prepare Journal Entries on October 1, November 2 and December 1, 20x1.Fblue acquired land with a fair value of P10,500,000 and paid for it in full by issuing P50 par value, 50,000 preference shares with a 10% rate and 40,000 shares of its ordinary shares, par P100. The ordinary shares were selling at P115 per share in the open market and the preference shares were selling at 108 per share. What amount should Fblue record share premium from the issuance of the ordinary shares in this transaction?Virma Corporation sold to a subscriber 500 shares of its P30 par value common stock at P32 per share receiving a 30% down payment. In recording this transaction, A. Ordinary share will be credited in the amount of P15,000 B. Ordinary share will be credited in the amount of P16,000 C. Subscribed share capital will be credited in the amount of P15,000 D. Share premium will be credited in the amount of P4,500 Leon Corporation sold 500 shares of its P40 par value preferred stock for cash at P50 per share. In recording this transaction, there would be a A. Credit to preference share capital for P25,000 B. Credit to preference share capital for P20,000 C. Credit to subscribed preference share capital for P20,000 D. Credit to share capital in excess of stated value for P5,000 Luningning Corporation sold for cash 400 shares of preferred stock with a par value of P50 per share at P56 per share. Also, 600 shares of common stock with no…
- b) East Company issued 1,000 shares with P5 par to Howe as compensation for services. By what amount should the share premium accoùnt increase as a result 1. Answer the following questions: a) Ivy Company provided the following accounts at year-end: Preference Share Capital, P100 par P5,000,000 Ordinary Share Capital, P10 par Subscribed Preference Share Capital Subscribed Ordinary Share Capital Subscriptions Receivable - Ordinary Subscriptions Receivable -Preference Share Premium – Preference Share Share Premium – Ordinary Share 2,000,000 1,800,000 1,000,000 180,000 190,000 300,000 220.000 680,000 Treasury Share - Preference (700 shares at cost) Share Premium - Preference Treasury Share 850,000 Retained Earnings 2,000,000 How much is total shareholders' equity at yearend? b) East Company issued 1,000 shares with P5 par to Howe as compensation fo. 1.000 hours of legal services performed. Howe bills P160 per hour for his loet services. By what amount should the share premium accoùnt…10. Temporcal Company owned P50.000 ordinary shares. These 50000 shores were purchased for P120 per shoare. On Augusi 30, 2020, the investee dis fributed 50,000 stock rights to the investor. The investor was entitied to buy one new share for P90 cash and tw o of these rights. On Augusi 30,2020, ecach share hasamarket value of P130 and each right had a market value of P20. VWhattotai cost should be recorded for the new shares fhat are acquired by exercising the rights? 2250.000 b. $250/00 3.050.000 d. 5,500,000 11. Horem Company invesied in shares of Silangan Company acquired as foilows: 2018 2019 Number of Shores 20.000 40,000 Cost 2.000.000 3,500,000on 1/1/20, ABC Corp bought 500 shares of XYZ Corp for $10,000. XYZ Corp has 25,000 shares outstanding. on 6/1/20, XYZ pays a $100,000 cash dividend to all shareholders. On 12/31/20, XYZ is trading at $22/share and during 2020 XYZ reported net income of $250,000. What is the total effect on net income for ABC from this investment? Assume ABC reports annually on a calendar year basis.