Problem Set 1 Due 1.10.24-1

Question 1 Patrick Industries began construction of a warehouse on July 1, 2023. The project was completed on May 31, 2024. Patrick took out a $1,000,000 note at interest of 6% to help finance the construction. Patrick also has the following other debt outstanding throughout the construction period: $2,000,000, 8% note $5,000,000,4% bond Construction expenditures incurred were as follows: July 1, 2023 September 30, 2023 November 30, 2023 $300,000 700,000 500,000 February 1, 2024 200,000 May 31, 2024 200,000 The company's fiscal year-end is December 31 and it uses the specific interest method. Required a. Calculate the amount of interest capitalized for 2023 and 2024. b. Calculate the interest expense to be reported on the income statement for 2023 and 2024. c. Calculate the cost of the new warehouse.

PLUS Kimmel, Financial Accounting, Se Help I System Announcements RCES 10 Brief Exercise 10-12 Presented here are long-term lhability items for Windsor, Inc. at December 31, 2017. Bonds payable (due 2021) $860,000 Notes payable (due 2019) 79,000 Discount on bonds payable 33,000 Prepare the long-term liabilities section of the balance sheet for Windsor, Inc. WINDSOR, INC. Balance Sheet (Partial) %$4 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT INTERACTIVE TUTORIAL Questinh ftengits %24

Check my workCheck My Work button is now enabled1 Item 1 Item 1 1.5 points Item Skipped Tanner-UNF Corporation acquired as a long-term investment $180 million of 7.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 9% for bonds of similar risk and maturity. Tanner-UNF paid $160.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $160.0 million. Required:1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate.3. At what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet?4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the…

I need answer of this question solution general accounting

Need help with this question solution general accounting

cam Acc III-June 23 1 O:22:27 C Mc Graw Hill Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2023, all with intent to hold to maturity: 2023 1 Purchased for $427,057 a 7.0%, $420,000 Jaguar Corp. bond that matures in five years when the market interest rate was 6.6%. There was a $$125 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning June 30, 2023. Monkey Mortgage Inc. plans to hold this investment until maturity. 1 Bought 8,000 shares of Mule Corp., paying $34.50 per share. There was a $125 transaction fee included in the above-noted payment amount. May 7 Received dividends of $2.90 per share on the Mule Corp. shares. June 1 Paid $336,000 for 22,000 shares of Zebra common shares. There was a $$125 transaction fee included in the above-noted payment. June 30 Received interest on the Jaguar bond.. Jan. Mar. Aug. 1 Sold the Mule Corp. shares for $34.75 per share. Dec. 31 Received interest on the…

Question 7

PROBLEM 3 On June 30, 2018, Upton Inc. sold $3,000,000 (face value) of bonds. The bonds are dated June 30, 2018, pay interest annually on June 30, and will mature on June 30, 2021. The following schedule was prepared by the accountant for 2018. Annual Interest Period 1 Interest to be Paid $240,000 Interest Expense $263,250 Amortization $23,250 Unamortized Amount $75,000 51,750 1. What is the stated interest rate for this bond issue? 2. What is the market interest rate for this bond issue? Bond Carrying Value $2,925,000 2,948,250 Instructions On the basis of the above information, answer the following questions. (Round your answer to the nearest dollar or percent.)

Module 11 Part I: Chapter Problems B, Assignment Please complete the following item: Assume Strand Corp borrowed $200,000 from the bank on 7/1/20; Strand is a calendar year-end. Interest rate 6%. It is a 1 year note, payable at the end of 1 year. Make the necessary journal entry on 7/1/20, 12/31/20 and 6/30/21 If vou are not familiar with

ks Login Module 5- Chap 1 & Office templates & t.. - Chapter 5 i Saved Help Save & Exit On January 1, 2021, Rare Bird Ltd. purchased 15% bonds dated January 1, 2021, with a face amount of $22 million. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables pravided.) Required: Determine the price of the bonds at January 1, 2021. (Enter your answer in whole dollars.) Price of the bonds < Prev 13 of 15 Next

Question P10-22-B

2021 Question 5 of 17 -/1 E View Policies Current Attempt in Progress On January 2, 2020, a calendar-year corporation sold 5% bonds with a face value of $3180000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2916000 to yield 7%. Using the effective- interest method of computing interest, how much should be charged to interest expense in 2020? O $159000. O $222600. O $204120. O $204910. Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air

Question Content Area The following information relates to the Davensmith Company: Interest payable, beginning of period $ 60 Bond discount amortization, end of period 40 Interest payable, end of period 10 Total interest expense reported on the income statement 850 Bond discount amortization, beginning of period 70 What was the amount of interest paid? $820 $870 $830 $850

Problem 9-95AReporting Long-Term Debt Fridley Manufacturing's accounting records reveal the following account balances after adjusting entries are made on December 31, 2018: Accounts payable   $ 62,500 Bonds payable (9.4%, due in 2025)   800,000 Lease liability*   41,500 Bonds payable (8.7%, due in 2021)   50,000 Deferred tax liability*   133,400 Discount on bonds payable (9.4%, due in 2025)   12,600 Income tax payable   26,900 Interest payable   38,700 Installment note payable (8% equal installments due 2019 to 2022)   120,000 Notes payable (7.8%, due in 2023)   400,000 Premium on notes payable (7.8%, due in 2023)   6,100 Zero coupon note payable, $50,000 face amount, due in 2024 (net of discount)   31,900 * Long-term liability   Required: Prepare the current liabilities and long-term debt portions of Fridley's statement of financial position at December 31, 2018. Provide a separate line item for each issue (do not combine separate bonds or notes…

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Problem 6-7 As the chief financial officer of Adirondack Designs, you have the following information: Next year's expected net income after tax but before new financing Sinking-fund payments due next year on the existing debt Interest due next year on the existing debt Common stock price, per share Common shares outstanding Company tax rate $ 46 million $ 21 million $16 million $ 31.0 26 million 30% a. Calculate Adirondack's times-interest-earned ratio for next year assuming the firm raises $56 million of new debt at an interest rate of 4 percent. b. Calculate Adirondack's times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal $5.5 million. c. Calculate next year's earnings per share assuming Adirondack raises the $56 million of new debt. d. Calculate next year's times-interest-earned ratio, times-burden-covered ratio, and earnings per share if Adirondack sells 2.1 million new shares at $27 a share instead of raising new debt.. Note:…

Financial Accounting Question please need help

Problem 6-7 As the chief financial officer of Adirondack Designs, you have the following information: Next year's expected net income after tax but before new financing Sinking-fund payments due next year on the existing debt Interest due next year on the existing debt Common stock price, per share Common shares outstanding Company tax rate $ 46 million $ 21 million $ 16 million $ 31.0 26 million 30% a. Calculate Adirondack's times-interest-earned ratio for next year assuming the firm raises $56 million of new debt at an interest rate of 4 percent. b. Calculate Adirondack's times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal $5.5 million. a. Times interest earned i b. Times burden covered c. Earnings per share d. Times interest earned d. Times burden covered d. Earnings per share c. Calculate next year's earnings per share assuming Adirondack raises the $56 million of new debt. d. Calculate next year's times-interest-earned ratio,…

Financial Accounting Question please find correct value

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QUESTION 2: GENERAL BORROWINGS Acruni Co had the following loans in place at the beginning and end of 20X6. General boro wings 31 December 1 January 20X6 20X6 RM'm RM'm 120 10% Bank loan repayable 20X8 9.5% Bank loan repayable 20X9 8.9% debenture repayable 20X7 120 80 80 150 The 8.9% debenture was issued to fund the construction of a qualifying asset (a piece of mining equipment), construction of which began on 1 July 20X6. On 1 January 20X6, Acruni Co began construction of a qualifying asset, a piece of machinery for a hydroelectric plant, using existing borrowings. Expenditure drawn down for the construction was: RM30m on 1 January 20X6, RM20m on 1 October 20X6. Required Calculate the borrowing costs that can be capitalised for the hydro-electric plant machine.