1. On January 1,2020, Kooky Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with a yield of 12%. The bonds is payable after five years and interests is payable annually starting December 31,2020. Assuming 1/4 of the bonds were retired at 102 on December 31,2022 after payment of periodic interest, how much is the gain or loss on retirement of the bonds? (For present value factors, do not round off) 2. The following are the balances of the liability accounts of IKARIS Company as of December 31,2021: Accounts payable - P 1,000,000(recognized for purchase of inventories, including a debit balance in the suppliers account of P 150,000) The following are not yet reflected in the balance of accounts payable above: - Upon receipt of the goods on January 1,2022 costing P 175,000, the accounting staff of IKARIS Company recorded the purchase in the accounts. It was determined that the goods were shipped Shipping point on December 31,2021. -Goods with invoice cost of P 255,000 which were shipped FOB Destination on December 31,2021 from a vendor were lost in transit. On January 2, 2022, vendor filed a claim against the shipping company. Notes payable - P 1,500,000, composed of the following: - 10% , P 750,000 interest bearing note , issuance date: Jan.1,2019 ; due: December 31,2023 ( interest is payable annually) - 12%,P 750,000, interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2024 (equal annual installments and interest are to be paid annually) What amount of accounts payable should IKARIS Company report as of December 31,2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. On January 1,2020, Kooky Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with a yield of 12%. The bonds is payable after five years and interests is payable annually starting December 31,2020. Assuming 1/4 of the bonds were retired at 102 on December 31,2022 after payment of periodic interest, how much is the gain or loss on retirement of the bonds? (For present value factors, do not round off) 2. The following are the balances of the liability accounts of IKARIS Company as of December 31,2021: Accounts payable - P 1,000,000(recognized for purchase of inventories, including a debit balance in the suppliers account of P 150,000) The following are not yet reflected in the balance of accounts payable above: - Upon receipt of the goods on January 1,2022 costing P 175,000, the accounting staff of IKARIS Company recorded the purchase in the accounts. It was determined that the goods were shipped Shipping point on December 31,2021. -Goods with invoice cost of P 255,000 which were shipped FOB Destination on December 31,2021 from a vendor were lost in transit. On January 2, 2022, vendor filed a claim against the shipping company. Notes payable - P 1,500,000, composed of the following: - 10% , P 750,000 interest bearing note , issuance date: Jan.1,2019 ; due: December 31,2023 ( interest is payable annually) - 12%,P 750,000, interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2024 (equal annual installments and interest are to be paid annually) What amount of accounts payable should IKARIS Company report as of December 31,2021?

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