In January 1 20x1 abc company issued a 1000000 10 year bond with a stated interest rate of 9% payable annually every December 31st the market interest rate is 7% the bonds price is 1140160.
Q: Kathleen contributes 3% of her $45,000 of annual earnings into an RRSP. As part of her total…
A: It is the plan that helps the employee to earn certain income after his retirement. This plan…
Q: Phil took $60,000 coronavirus -related distribution from his qualified retirement plan in 2020…
A: Any person who withdraws funds from coronavirus related distribution from a qualified retirement…
Q: Using the following information: a. Beginning cash balance on March 1, $82,000. b. Cash receipts…
A: Cash Receipt :— It is the cash collection from customer against sale of goods. Cash Disbursement…
Q: Text World, Inc., reported sales revenue of $450,000, net income of $54,000, and average total…
A: Return on assets : Return on assets is a financial ratio which indicats that how mauch a company is…
Q: Imagine that you’ve been asked to explain 1 of the major accounting ratios to a group of high school…
A: Current Ratio: In simple words, current ratio indicates how a business can maximize the liquidity of…
Q: Thomson's PP&E information and depreciation methods are summarized below. Fixed Asset and…
A: The depreciation expense is charged on fixed assets on the basis of usage and time spent on the…
Q: Rodrigo and Harry are both owners of an existing single proprietorship businesses. They agreed to…
A: The assets invested by partners in the partnership firm are recorded at fair market value of those…
Q: Long-Term Performance Report Nabors Company had actual quality costs for the year ended June 30,…
A: The flexible budget is a dynamic budget which can be adjusted according to the changes in volume.…
Q: Beau who just turned 33 works for Textile Industries and makes an annual income of $50,200.…
A: CPP or Canada Pension Plan is a contributory income-related social program which takes a part of…
Q: What do you think are the top cyber threats targeting accounting firms?
A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…
Q: A division can sell externally for $75 per unit. Its variable manufacturing costs are $42 per unit,…
A: Optimal transfer price for the transferer division would be the minimum transfer price that the…
Q: An employee receives an hourly rate of $45, with time and a half for all hours worked in excess of…
A: Payroll tax is the tax that is withheld, charged or levied on the payroll of the employer. This will…
Q: Question 3: As at 31 May 20X1 and 31 May 20X2 Castle ple had the following summarised figures…
A: A cash flow statement is defined as one of the financial statements that shows the flow of cash…
Q: Account titles Cash Account Receivable Supplies Prepaid Insurance THAO COMPANY Adjusted Trail…
A: INCOME STATEMENT Income Statement is one of the Important Financial Statement of the Company.…
Q: Statement 1: The owner's personal withdrawals for the year cause a decrease in profit. Statement 2:…
A: Since you have posted multiple questions, as per the guidelines only the first question will be…
Q: 2. Compute the July 31 balances of the inventory accounts. Materials Work in Process-Making…
A: Production cost includes direct materials, direct labor and overhead applied. Once the products are…
Q: A bond has a face value of $100,000 and a price of $90,000. The journal entry at the date of…
A: Solution... Face value = $100,000 Issue price = $90,000
Q: Comparitive balance sheet of Hillard Co. as of Dec 31, Assets 2020 2021 Cash Accounts Receivable…
A: A cash flow statement indicates cash inflow and cash outflow information for a particular time…
Q: Assume a company has two divisions, Division B and Division C. Division B has provided the following…
A: Transfer price is the price where related parties will transact with each other, during the trade of…
Q: The financial year of Abi Sy ends on December 31 each year. On May 30, 2022, Abi Sy received an…
A: The answer should be first option which is P250,000 should be treated as unearned revenues. PER…
Q: PR 4-1A Financial statements and closing Lamp Light Company maintains and repairs warning ligh radio…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 139. On January 1st, 20x12, ABC Inc. agrees to a futures contract to buy 1,000 shares of DEF Inc.…
A: JOURNAL ENTRIES OF ABC Inc. January 1st, 20x12 Derivative Financial Asset A/c...Dr. $4000…
Q: es Navarre Energy Research specializes in developing and commercializing new products. It is…
A: The purpose of economic value added (EVA), which is often referred to as economic profit, is to…
Q: Required information Four years ago, Sierra Instruments of Monterey, California, spent $200,000 for…
A: The question has asked to compute the cash flow after tax. According to the IRS, the depreciation…
Q: 3. Laura Company carried a provision of P2,000,000 in the draft financial statements on December 31,…
A: As per Indian Accounting Standard (Ind AS) 37 - Provisions, Contingent Liabilities and Contingent…
Q: Which of the following is the most commonly used method for assignment of joint costs? a. Relative…
A: The joint cost is cost that is incurred for the production of the two or more the goods.this joint…
Q: 139. On January 1st, 20x12, ABC Inc. agrees to a futures contract to buy 1,000 shares of DEF Inc.…
A: Accounting for Derivative Instrument Future is a derivative which is contract and value which is…
Q: T-Account Postings Amounts: Input Totals ($) Debits Total: 751,000 Credits Total: 751,000 Assets…
A: Net Income Before Tax, Income Tax and Net Income are items in income statement.
Q: XYZ Company borrowed $100,000 at a 9% interest rate on May 1, 20X1 for one year with interest and…
A: The interest Payable is the amount of interest expense due for payment but not yet paid. The…
Q: Cycle Time and Conversion Cost per Unit Hatch Manufacturing produces multiple machine parts. The…
A: Conversion costs are combination of costs of direct labor and overhead costs which is required to…
Q: ected net 37,750 an adjusted trial bal PR 3-6A Adjusting entries and errors At the end of April, the…
A: The adjustment entries are prepared to adjust the revenue and expenses for the current period. The…
Q: Prepare journal entries to record the following transactions for Emerson Corporation. (If no entry…
A: Dividends are paid in two types Stock dividends and Cash dividends. Stock dividend means a payment…
Q: After-Tax Cash Flows Below is a list of aspects of various capital expenditure proposals that the…
A: After tax cash flow is a measure of financial performance that shows a co.'s ability to generate…
Q: key Stone Incorporated, a U.S. corporation, received the following so fy the source of each item as…
A: Corporation - A company is a separate legal entity from its shareholders. Many of the same legal…
Q: 1. A small business owner Borrowed Php8,500.00 at 9% for 18 months. How much interest will be repaid…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Jordan Company is considering investing in two new vans that are expected to generate combined cash…
A: (a) CALCULATION OF NET PRESENT VALUE (NPV) A Present Value of Cash Inflows ( Van Combined…
Q: On January 1, 20X1 ABC Company issued a $1,000,000 10-year bond with a stated interest rate of 9%…
A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…
Q: as het cash flows from operating activities of $425,000 and net cash flows used for investing…
A: Solution... Cash flow from operating activities = $425,000 Cash flow from investing activities…
Q: The balance in the Prepaid Insurance account before adjustment at the end of the year is P7,200…
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…
Q: Required information [The following information applies to the questions displayed below.] Clothing…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: In the current year, Company A made the following cash purchases: 1. The exclusive right to…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…
Q: Are the following statements true or false? 1) Life cycle costing assesses a product's profitability…
A: Life cycle costing: Life cycle costing is a system that identifies and accumulates, the actual costs…
Q: TB Problem 21-167 (Algo) The Murdock Corporation reported the following balance sheet data for 2021…
A: Cash flow statement is the financial statement that records the cash inflow and cash outflow…
Q: Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct…
A: The standard against which actual costs are assessed is the anticipated cost of a typical…
Q: Sam Smith is a citizen and bona fide resident of Great Britain (United Kingdom). During the current…
A: NOTE- IN THIS CASE WE HAVE SAM SMITH IS THE CITIZEN AND RESIDENT OF GREAT BRETAIN U.K. BUT THE…
Q: QUESTION 15 Which of the following segment performance measures will decrease if there is an…
A: AN INCREASE OR DECREASE IN THE INTEREST EXPENSES DOES NOT AFFECT THE RETURN ON INVESTMENT AND…
Q: y , U21, Music AT d exchange for a new machine. The note is to be paid in four equal payments of…
A: Installment notes are defined as liabilities. Installment note requires that they are to be repaid…
Q: Grace manufactures and sells miniature digital cameras for $160 each. Sales in May were 2,600 units,…
A: Sales Budget and Production budget :The sales budget is prepared to show the number of units to be…
Q: Markat, a publicly listed company has a March 31st year-end. On 1 April 20X5 Markat issued $20…
A: Basic EPS can be diluted if the company has the following capital structure: a) Convertible…
Q: 8% has mature December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield…
A: Bonds are said to be issued at discount when the contract rate or stated interest rate is less than…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Considera put contract onaT bondwith an exercise price of $101 16/32. The contract represents $1,000,000 of bond principal and had a premium of $750. The actual T bond price falls to $95 16/32 at expiration. What is the gain or loss on the position?14. If bonds are redeemed on maturity date, any premium or discount * a. Is carried forward and written off in the same manner as that used prior to the maturity date. b. Should be used to calculate the O gain or loss resulting from the maturity of the bonds. c. Should be written off directly to a O bond retirement account as the bond will be redeemed. d. Will be fully amortized as its amortization period is designed to coincide with the life of the bond issue.When a bond sells at a discount, the carrying value ________ after each amortization entry.A. increasesB. decreasesC. stays the sameD. cannot be determined
- When bonds are retired at maturity, ________. A. the carrying value always equals the face value B. the carrying value equals the face value plus the unamortized premium or less the unamortized discount C. the bondholders are paid the face value plus the unamortized premium or less the unamortized discount D. the entry to retire the bonds may include a gain or loss on retirement of bonds1. How much is the amortization of discount for 2021? 2. How much is the carrying value of the bonds payable as of December 31, 2021?1) Define liabilities. Provide three examples. 2) Define bond discounts and premiums. Is 2022 a good time to purchase interest-sensitive securities? Please explain. 3) Distinguish between the straight line and effective interest methods. Which is acceptable under GAAP?
- Which of the following is a current liability? Select one: O a. A long-term debt maturing currently, which is to be paid with cash in a sinking fund O b. A long-term debt maturing currently, which is to be converted into ordinary shares O c. None of these O d. A long-term debt maturing currently, which is to be retired with proceeds from a new debt issue10) Given the following Bond Amortization Table, answer the multiple choice question below the Table. Interest Unamortized DATE PMT Expense Amortization Amortization Carrying Value 1/1/2018 $ 45,242 $ 654,758 6/30/2018 $ 28,000 $ 12/31/2018 $ 28,000 $ 6/30/2019 $ 28,000 $ 12/31/2019 $ 28,000 $ 6/30/2020 $ 28,000 $ 40,505 $ 35,530 $ 32,738 $ 4,738 $ 659,495 4,975 $ 5,224 $ 32,975 $ 664,470 33,224 $ 33,485 $ 30,306 $ 669,694 5,485 $ 24,822 $ 675,178 33,759 $ 5,759 $ 19,063 $ 680,937 34,047 $ 34,349 $ 13,016 $ 6,667 $ 0.00 $ 12/31/2020 $ 28,000 $ 6,047 $ 686,984 6/30/2021 $ 28,000 $ 6,349 $ 693,333 12/31/2021 $ 28,000 $ 34,667 $ 6,667 $ 700,000 Question: If this bond were retired on January 1, 2021 at $690,000, then the journal entry on January 1, 2021 would show: A. Credit to Discount on Bond Payable in the amount of $3,016 B. Debit to Discount on Bond Payable in the amount of $3,016 C. Gain in the amount of $3,016 D. Loss in the amount of $3,016True or false. If the straight-line method of amortization is used, the amount of unamortized premium on bonds payable will decrease as the bonds approach maturity.
- Is a two-year term bond considered a short-term debt instrument?What would happen to the bond’s value ifinflation fell and rddeclined to 7%? Would wenow have a premium or a discount bond?q13. The market price of a bond issued at a premium is the present value of its principal amount at the effective interestA. plus the present value of all future interest payments at the effective interest rate.B. plus the present value of all future interest payments at the stated interest rate on bond.C. minus the present value of all future interest payments at the effective interest rate.D. plus total amount of all future interest payment.