Sept. Dec. 30 31 31 9.2%. Received interest on the Trust bond. Received interest on the Hanna and Trust bonds. The fair values of the bonds on this date equalled the fair values. Required: . For each of the bond investments, prepare an amortization schedule showing only 2020 and 2021. (Round your intermediate and final answers to the earest whole dollar amount. Enter all the amounts as positive values.) 2. Prepare the entries to record the transactions described above. (Enter all the amounts as positive values. Do not round intermediate calculations and round your final answers to the nearest dollar.)
Q: Income statements and balance sheets data for Virtual Gaming Systems are provided below. Net sales…
A: Ratio are a measure of analyzing the financial statements of an entity. These are metrics which…
Q: wo years ago, Bethesda Corporation bought a delivery truck for $30,000 (not subject to the luxury…
A: According to Section 1245 codified in the United States Code (USC) at Title 26-Internal Revenue Code…
Q: strategy for accounrting firm to adopt digital transformation
A: Firms must get over their reservations about the digital, cloud-based world of today. The more…
Q: QUESTION 9 Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the…
A: Solution:- Given, Natalie Owns a condominium near Cocoa Beach in Florida. Natalie rented out the…
Q: The authorized capital stock of Quarantine Corporation is P50,000,000 and the par value per share is…
A: As per Phillipines law, a company is required to prove that a specific percentage of authorised…
Q: Which expenses are associated with the risk of disability?
A: Disability refers to being abnormal from others i.e the person is incapable in a or few aspects from…
Q: Prepare the journal entry to record the accrual of interest on December 31, 2022. (Credit account…
A: A bond is issued by the company for raising finance for the business working. The bond contains a…
Q: 2.2 Arundel Company disclosed the following information for its recent calendar year. Income…
A: A cash flow statement is the one under which the cash movement from and in the business is recorded…
Q: Best Shingle's budgeted manufacturing costs for 50,000 squares of shingles are: Fixed manufacturing…
A: Variable Manufacturing Cost :— Variable Manufacturing Cost Vary per unit Basis. It is the one of the…
Q: OMalley's standard labor cost of producing one unit of Product A is 1.7 hours at a rate of $11.4 per…
A: Variances are difference between actual and standard cost. Labor rate variance ( standard rate -…
Q: Sanchez Trucking has been experiencing delays at its warehouse operations. Management hired a…
A: 1. total hours per crew = no of members in a crew x full time hours per member 2. required crews =…
Q: Pastner Brands is a calendar-year firm with operations in several countries. As part of its…
A: Compensation Cost :— It is the multiplication of number of share vested and fair value per option.…
Q: The Dunbar Zoo operates a drive-through tourist attraction in Hamilton. The selected accounts…
A: Introduction: To correctly allocate the income and spending amounts for each accounting period, an…
Q: Which of the following would be considered a capital expenditure? (A 22) O Making a payment on…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Archer's margin of safety percentage (MoS %) %.
A:
Q: 3.2 Equipment with a book value of $83,500 and an original cost of $162,000 was sold at a loss of…
A: Cash Flow from Investing Activities means cash inflow or outflow as a result of purchase or sale of…
Q: What is the Weighted Average Cost of capital?
A: Cost Of Capital :— Cost of capital represents the return a company needs to achieve in order to…
Q: 8. The equity sections for Atticus Group at the beginning of the year (January 1) and end…
A: Net Income - Net Income is the amount earned by the company after deducting all the expense whether…
Q: A building acquired at the beginning of the year at a cost of $93,200 has an estimated residual…
A: Depreciation is the expense which is reported in the income statement under the expenses head. It is…
Q: The long-term asset account group is used for which of the following funds? Enterprise Capital…
A: Introduction: Long-term assets are investments in a firm that will benefit it for a long time.…
Q: 31, 2021, Tesla's fair value per share is $1,050 and Alphabet's is $145. John has negligible…
A: Investments are assets held by an enterprise for earning income by way of dividends, interest, and…
Q: Pepper Corporation owns 90% of the outstanding voting stock of Salt Company and Nike Corporation…
A: Financial statements are those which an entity prepares to indicate its financial health. The income…
Q: From the following balances of Maryam Plc., as at 31.12.18 a) Format Motor vehicles (cost)…
A: In the context of the given question, we should prepare and present the financial statements.…
Q: Stark Company's most recent balance sheet reported total assets of $1,840,000, total liabilities of…
A: Total Assets: $1,840,000 Total Liabilities: $830,000 Total Equity: $1,010,000 Debt to equity ratio:…
Q: Question 1: The following information relates to Grimsley Company: ey ny A DEPARTMENTS Units:…
A: Direct Material Cost - Direct materials costs are the expenses incurred on the raw materials…
Q: Community Assist for Refugees (CAR) is a not-for-profit organization that assists refugees with…
A: In the deferral method, donations are received and revenues will only be recognized if the money is…
Q: If Account Based Costing (ABC) is so great, why do such a small percentage of companies use it? Why…
A: Activity based costing is a type of Costing in which the overhead or the indirect cost are…
Q: Compute the following ratios for 2022. (Round Earnings per share, Current ratio and Asset turnover…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Ratio…
Q: $8.35 During the current month, the following levels of activities were incurred Car Seats $ 51,060…
A: Activity Rate :— It is calculated by dividing total estimated overhead cost by total activity cost…
Q: Required: 1. What is the standard labor-hours allowed (SH) to prepare 7,300 meals? 2. What is the…
A: Labor Variance is calculated by the Business Entity to check the difference between the standard…
Q: The following table includes quarterly working capital levels for your firm for the next year.…
A: Wokriing capital :— Working capital is a financial metric which represents operating liquidity…
Q: a. Journalize the entry to record the issuance of the installment notes. If an amount box does not…
A: The journal entries are prepared to record the day-to-day transactions of the business on regular…
Q: The amount of compensation subject to OASDI tax is correctly defined as Select one: a. all amounts…
A: OASDI (Old Age, Survivors, and Disability Insurance program) tax is a tax levied by IRS on all…
Q: amine critically the many uses of the conventional costing technique
A: There are many uses of conventional costing technique. Some of them are listed as below: - Using…
Q: What is the future value of $4,500 that you put into an account at 5% interest for 15 years?…
A: Future value = it the Part of Time value of money. Future value is the value of asets as on the…
Q: Cash book (Bank column only) – July 2022 Date 2022 Details Amount N($) Date 2022 Details…
A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…
Q: Compute Rome’s regular hourly and overtime rates.
A: Sometimes Business Entities have shortage of time and they have to fulfill the given order within…
Q: 1. A company declared a cash dividend on its ordinary shares in December 2020 payable in January…
A: Hi student Since there are multiple questions, we will answer only first question. Dividend is the…
Q: Entries for notes payable Bennett Enterprises issues a $684,000, 30-day, 6%, note to Spectrum…
A: Note payable :— Note Payable is Liability in nature. It represent Under Current Liabilities in the…
Q: How does the payback period approach capital budgeting? Examples of 1 advantage and 1 disadvantage?
A: Pay back period approch in capital budgeting is use to analysis two or more projects. The project…
Q: Black Limited sells inventory to its parent, White Limited at cost price plus 125% mark-up. •…
A: Inventory is the merchandise that is acquired, or manufactured to be sold in the ordinary course of…
Q: Note: answer it " all " correctly. Justify your answer by showing solution of your choice If not I…
A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Low Heel Trading's financial year ends on 30 June. The owner of the business, Nancy, provided the…
A: The journal entries are prepared to record the day-to-day transactions of the business on regular…
Q: The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot…
A: Variance is the variation or difference between the budgeted or actual costs. Here, the variance…
Q: How is activity-based costing different from traditional costing systems? If a restaurant decided to…
A: Basis Traditional Costing Activity Based Costing Assignment Costs are assigned to cost units i.e.…
Q: Prepare a monthly flexible selling expenses budget for Stone Company for sales volumes of $300,000,…
A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…
Q: 9.7 Corporate Taxes Sheridan 3D printing company has had $145,000 in revenue for 2020 but also had…
A: There taxes on the income earned by the corporate in the country. But the expenses are to be…
Q: Giannini Inc., which produces and sells a single product, has provided the following contribution…
A: In accounting contribution format income statement is a special income statement which segregates…
Q: Financial information is presented below: Operating Expenses $ 90000 Sales Returns and Allowances…
A: Gross profit is the earnings from the net revenue generated by the company after meeting the costs…
Q: Kingbird Corporation has the following information available concerning its postretirement benefit…
A: Many forms of costs that an employer provides to its retirees are known as postretirement costs.…
Step by step
Solved in 3 steps with 5 images
- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossFollowing are the non-strategic Investment transactions of Corona Inc.: 2023 Jan. 1 Purchased for $91,145 an 8.58, 586,000 bond that matures in 20 years from anna Corporation when the market interest rate was 7.98. There was a $50 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning June 30, 2023. The acquisition vas made with intention to hold to maturity. June 30 Received interest on the bond. July 1 Paid $126,633 for a Trust Inc. bond with a par value of $131,000 and a fifteen-years ters. The bond pays interest quarterly beginning September 30, 2023, at the annual rate of 8.38; the market interest rate on the date of purchase was 8.7%. There was a $50 transaction fee included in the above-soted payment amount. Sept. 30 Received interest on the Trust bond. Dec. 31 Received interest on the lanna and Trust bonds. 31 The fair values of the bonds on this date equalled the fair values. Required: 1. For each of the bond investments, prepare an…On January 1, 2020, A Corp. had the following investments: Classification Investment MarketValue MaturityValue Cost Trading K Inc. bonds $1,900 $1,800 Trading S Co. bonds 3,100 3,000 Held-to-maturity G Inc. bonds (due 12/31/2022) $10,000 9,700 During the year, A Corp. acquired M Co. bonds for $1,000 and classified it as trading. At year-end, the M Co. bonds have fair market value of $1,200. The K Inc. investment on December 31 had a fair market value of $2,500. The S Co. investment had a December 31 market value of $3,500, and the G Inc. bonds had a December 31 market value of $9,850. Required: Indicate the balance sheet classification and where unrealized holding gains/losses would appear on the December 31, 2020 financial statements for each investment. Classification Balance SheetValuation : Trading Securities (at fair value) $fill in the blank 2 : Held-to-maturity (amortized cost) $fill in the blank 4
- On January 1, 2019, Ola Company paid $388,900 for a $400,000 face value 3% corporate bond yielding 4%, interest paid annually on December 31, and classified it as held-to-maturity. Ola's reporting year ends December 31. On its 2020 balance sheet, Ola reports the investment at: Select one: O A. $396,154 B. $398,231 C. $397,296 4 D. $395,981Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2023, all with intent to hold to maturity: 2023 Jan. 1 Purchased for $414, 441 a 9.5%, $408,000 Jaguar Corp. bond that matures in five years when the market interest rate was 9.1%. There was a $$60 transaction fee included in the above - noted payment amount. Interest is paid semiannually beginning June 30, 2023. Monkey Mortgage Inc. plans to hold this investment until maturity. Mar. 1 Bought 6, 700 shares of Mule Corp., paying $33.20 per share. There was a $60 transaction fee included in the above-noted payment amount. May 7 Received dividends of $1.60 per share on the Mule Corp. shares. June 1 Paid $323,000 for 21,350 shares of Zebra common shares. There was a $$60 transaction fee included in the above-noted payment. June 30 Received interest on the Jaguar bond. Aug. 1 Sold the Mule Corp. shares for $33.45 per share. Dec. 31 Received interest on the Jaguar bond. Dec. 31 The fair value of the…On January 1, 2020, A Corp. had the following investments: Classification Investment MarketValue MaturityValue Cost Trading K Inc. bonds $1,900 $1,800 Trading S Co. bonds 3,100 3,000 Held-to-maturity G Inc. bonds (due 12/31/2022) $10,000 9,700 During the year, A Corp. acquired M Co. bonds for $1,000 and classified it as trading. At year-end, the M Co. bonds have fair market value of $1,200. The K Inc. investment on December 31 had a fair market value of $2,500. The S Co. investment had a December 31 market value of $3,500, and the G Inc. bonds had a December 31 market value of $9,850. Required: Indicate the balance sheet classification and where unrealized holding gains/losses would appear on the December 31, 2020 financial statements for each investment.
- On 1/1/23, Jeckle Technologies Inc. paid $4, 792, 085 to acquire $5,000,000 in bonds that mature in 5 years. The bonds pay interest semi - annually at 6% per annum on 6/30 and 12/31. The fair value of the bonds at 12/31/23 was $4, 930, 392. Required: • Prepare the 2023 journal entries if the investment is classified as (i) HTM or (ii) AFS. • Assume Jeckle sold the bond investment on 7/1/24 for $4,890,000. Prepare the required journal entries assuming the bond is classified as (i) HTM or (ii) AFS.Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2020 2020 Jan. 1 Purchased for $409,686 a 7.5%, $403,000 Jaguar Corp. bond that matures in five years when the market interest rate was 7.1%. Interest is paid semiannually beginning June 30, 2017. Monkey Mortgage Inc. plans to hold this investment until maturity. Mar. 1 Bought 6,300 shares of Mule Corp., paying $32.80 per share. May 7 Received dividends of $1.20 per share on the Mule Corp. shares. June 1 Paid $319,000 for 21,150 shares of Zebra common shares. June 30 Received interest on the Jaguar bond. Aug. 1 Sold the Mule Corp. shares for $33.05 per share: Dec. 31 Received interest on the Jaguar bond. Dec. 31 The fair value of the Zebra shares on this date was $15.00 per share. Assume the fair value of the bonds equalled the carrying value. 2021 Jan. 14 Sold the Zebra shares for $14.80. Required: 1. Prepare an amortization schedule for the Jagd showing only 2020 and 2021. (Enter all the…On January 1, 2021, the company purchased 8% bonds in the face amount of P8,000,000. The bonds mature on January 1, 2026 and were purchased for P8,328,128 to yield 7%. Interest is payable annually every December 31. The business model for this investment is to collect contractual cash flows and to sell the bonds in the open market. Fair value Effective rate December 31, 2021 7,740,000 9% December 31, 2022 7,230,000 10% December 31, 2023 7,030,000 11% On December 31, 2023, the entity changed the business model to collect contractual cash flows only. On January 1, 2024, the fair of the bonds did not change. At what amount will the Financial asset-FVOCI be reclassified to Investment in bonds on January 1, 2024?
- Requirement 3. Prepare a comprehensive income statement for Thyme Investments for year ended December 31, 2018. Assume net income was $320,000. (Use a minus sign or parentheses to enter a loss.) 2018 Jan. 5 Purchased Vince Company's $525,000 bond at face value. Thyme classified the investment as available-for-sale. The Vince bond pays interest at the annual rate of 6% on June 30 and December 31 and matures on December 31, 2021 Management's intent is to keep the bonds for several years . June 30 Received an interest payment from Vince Dec.31 Received an interest payment from Vince. Dec.31 Adjusted the investment to its current market value of $518.500 .The following information relates to non-current investments placed in trust by XX Company. This investment is in compliance with the requirements of an issue of P4,000,000 bonds by XX. Bond sinking fund, Jan. 1, 2019 P2,250,000 Additional investments to the fund during 2019 450,000 Dividend revenue on equity securities investments 75,000 Interest revenue on debt securities investments 150,000 Administration costs 25,000 What amount should XX Company in its December 31, 2019 statement of financial position related to its non-current investments for bond sinking fund?On January 1, 2020, the Widner Company acquired 12% bonds with a face value of $350,000 and classified them as held-to-maturity. The bonds pay interest on June 30 and December 31, and mature on December 31, 2029. Required: a. Assume the bonds were acquired for $312,921 to yield 14%. Prepare an investment discount amortization schedule for the first year of the investment, using the effective interest method. Assume a 360-day year. Round all calculations to the nearest dollar. Investment Carrying Value of Interest in Debt Investment Cash Income Securities in Debt Date (Debit) (Credit) (Debit) Securities 01/01/20 06/30/20 12/31/20 b. Assume the bonds were acquired for $393,618 to yield 10%. Prepare an investment premium amortization schedule for the first year of the investment using the effective interest method. Assume a 360-day year. Round all calculations to the nearest dollar. Investment Carrying Value of Interest in Debt Investment Cash Income Securities in Debt Date (Debit)…