How much is the estimated recovery percentage?
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How much is the estimated recovery percentage?
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- Gil Corporation has current assets of $90,000 and current liabilities of $180,000. Required: Compute the effect of each of the following independent transactions on Gil's current ratio: 1. Refinancing a $30,000 long-term mortgage with a short-term note. 2. Purchasing $50,000 of merchandise inventory with short-term accounts payable. 3. Paying $20,000 of short-term accounts payable. 4. Collecting $10,000 of short-term accounts receivable.On December 1, 2022, Telon Corp. engaged the following transactions: •The company pledge P600,000 of its accounts receivable as a security for a P500,000 loan with Yupy Bank. •Factored P1,300,000 of accounts receivable without recourse on a notification basis with Yalong Finance Company. Yalong Finance charged a factoring fee of 10% of the amount of receivable factored and withheld 15% of the receivable factored. •A customer's P700,000, 7-month, 5% note receivable dated August 1, 2022 was discounted with Yummy Bank at 8% discount rate on a with recourse basis. How much is the total cash received from the financing of receivables?Pax Limited showed the following assets and liabilities in its financial statements at 31 December 2018. DETAILS CARRYING AMOUNT FAIR VALUE PPE 10,000,000 14,000,000 Inventory 4,200,000 4,400,000 Long Term Loans (3,500,000) (3,500,000) Account Payable (2,500,000) (2,500,000) 8,200,000 12,400,000 The current market rate for similar transactions is 8.5% per annum. Chelsea Limited planned to acquire all the assets and liabilities of Pax Limited on 1 July 2018 and agreed to pay R13,400,000 in cash on 1 July 2019 in full settlement of the acquisition. Required: Calculate the purchase consideration. Calculate the goodwill or bargain purchase for this transaction. Prepare the journal entries required in the books of Chelsea Limited relating to this transaction.
- A bank loan of $800,000 was obtained byPWP Ltd on 1 August 2020 to purchase itsbusiness office, warehouse and factory andan upfront establishment fee of $8,000 waspaid on that date. The period of the loan waseight years and the bank charged interest atthe rate of 10 percent. 1.Explain what deductions are available to PWP for2020/21 in relation to the establishment fee andinterest paid on the bank loan. 2.What deductions would be available if PWP repaidthe $500,000 loan in full-on 30 June 2022?The entity has an unsecured overdraft of R20000 at prospect Bank that carries an interest rate of 22% per annum. In which one of the following statement will this item be shown? A.Statement of financial position as a current liability B.Statement of financial position as a non current liability C.Statement of income and expenditure as finance costs C.Statement of financial position as current assetUse the following information for the following questions: Smooth Pass Corp. has three sources of borrowings in an accounting period: Outstanding Liabilities Interest Change Seven-year loan 8,000,000 1,000,000 25-year loan 12,000,000 1,000,000 Bank overdraft 4,000,000 600,000 QUESTIONS: If all of the borrowing are used to finance the production of a qualifying asset, but none of the borrowings relate to a specific qualifying asset, what is the capitalization rate? a. 9.67% b. 10%. c.10.83% d.11.33 % 2. If the seven-year loan is an amount which can be specifically identified with a qualifying asset, what is capitalization rate? a. 9.67%. b. 10%. c. 10.83% d. 11.33%
- Mondesto Company has the following debts: $ 236,000 116,000 Unsecured creditors Liabilities with priority Secured liabilities: Debt 1, $222,000; value of pledged asset Debt 2, $186,000; value of pledged asset Debt 3, $126,000; value of pledged asset 186,000 106,000 152,000 The company also has a number of other assets that are not pledged in any way. The creditors holding Debt 2 want to receive at least $158,800. For how much do these free assets have to be sold so that the creditors associated with Debt 2 receive exactly $158,800? Selling value of free assets MacBook ProOrange Company’s ledger revealed the following account balances as of December 31, 2020: Unamortized discount on bonds payable P120,000; Organization costs P100,000; Losses in early years of company P450,000; Trademarks P750,000 Patents P150,000; Amount set up by BOD as goodwill P300,000. How much should be presented as intangible assets shown In the statement of financial position? * P1,300,000 P1,000,000 P900,000 P0 answer not given5. The following list of balances obtained from Agro Trading as at 31 July 2020. PARTICULARS RMCash in hand 100Cash at bank 9,000Account receivable 12,840Inventory as at 1 June 2019 26,500Motor vehicles 14,000Plant and machinery 50,000Long term investment 10,000Freehold premises 147,500Account payable 16,50010% Mortgage on freehold premises 34,000Capital 219,840Purchases 128,900Wages and salaries 70,300Rates and taxes 1,000Interest on mortgage 1,700General expenses 2,000Carriage outwards 21,000Insurance premium 3,000Drawings 7,400Carriage inwards 600Advertising expenses 14,000Sales 250,000Sales returns 1,000Purchases returns 500Discount received 600Discount allowed 800Allowance for doubtful debt 200Inventory at 31 July 2020 was RM30,000.Required: i. Statement of Profit and Loss and Others Comprehensive Income for the year ended 31 July 2020.ii. Statement of Financial Position as 31 July 2020
- Company Z has a deposit with ABC Bank. It obtained a loan from ASAP Financing Corp. in connection with the operation of its business. For the year 2021, assume the following:Company Z’s Net Income before Interest Expense (subject to 25%), P2,500,000Interest Income (from ABC Bank, gross of FWT), P480,000FWT on Interest Income, P96,000Interest Expense, P200,000How much is the taxable income of Company Z for 2021 after deducting interest expense?Wood Incorporated factored €150,000 of accounts receivable with Engram Factors Inc., Without guarantee. Engram assesses a 2% finance charge of the amount of accounts receivable Retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entry for Wood Incorporated and Engram Factors to record the factoring of the accounts receivable to Engram.On. Nov. 14, 20x1, Athena Co. sold its P30,000 loan receivable from Zevrek Co. to Devin Bank for P28,000. The sale agreement requires Athena Co. to repurchase the loan at a future date for P28,000 plus interest based on the current market rate on repurchase date. Requirement: Provide the journal entry on Nov. 14, 20x1.
