Hardev A company reported that its bonds with a par value of $50,000 and a carrying value of $61,000 are retired for $64,800 cash, resulting in a loss of$3,800. The amount to be reported under cash flows from financing activities is:Multiple ChoiceО$11,000.о$(3,800)О$(11,000).O$(61,000).о $(64,800).

When the company retires bonds for cash, it's considered a financing activity. So, the amount of…

Answered: A company reported that its bonds with…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.24MCE

See similar textbooks

Similar questions

Augusta Company reported that its bonds with a face value of $62,000 and a carrying value of $56,000 are retired for $62,000 cash. The amount to be reported under cash flows from financing activities is:
MC Qu. 12-110 Augusta Company reported that its bonds. Augusta Company reported that Its bonds with a face value of $62,000 and a carrylng value of $56,000 are retired for $62,000 cash. The amount to be reported under cash flows from financing activitles is: Multiple Cholce ($68,000) ($6.000) ($62,000) $0; this is an operating activity.
GH Traders wrote off R1 750 which represented 20% of the amount owed by a debtor. The debtor settled the balance on her account by means of an electronic funds transfer. These transactions have not yet been recorded. Which of the following statements is correct in respect of the above transactions? OA. The Debtors Control account will decrease by R7 000. OB. The debtor owed R8 750. OC. The Bank account will be credited with R7 000. OD. The amount received from the debtor was R1 400.
Clayton Industries has the following account balances: Current assets Noncurrent assets The company wishes to raise $45,000 in cash and is considering two financing options: Clayton can sell $45,000 of bonds payable, or it can issue additional common stock for $45,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places. Currently If bonds are issued If stock is issued $ 22,000 Current liabilities 77,880 Noncurrent liabilities stockholders' equity Currently If bonds are issued If stock is issued Current Ratio 2.44 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Bonds Stock to 1 to 1 Debt to Assets Ratio Additional Retained Earnings $ 9,000 50,000 48,888 % % % b. Assume that after the funds are invested, EBIT…
While preparing its bank reconciliation, Maynard Company determined that its bank had collected a $650 account receivable for the company and deducted a $25 collection fee. Which of the following shows the effect of this transaction on the financial statements? Assets = A. (25) B. 625 C. (25) D. 625 Multiple Choice Balance Sheet Liabilities + N/A N/A N/A N/A Option C Option B Option A Option D Stockholders Equity (25) 625 (25) 625 Revenue N/A 650 N/A 650 Income Statement Expense = Net Income Statement of Cash Flows 25 625 OA 25 650 OA 25 650 OA 25 625 OA (25) 625 (25) 625
Baltimore Company had a long-term debt of $1,000,000. To extinguish this debt the company issued $1,000,000 of fully paid shares to the lender. This transaction would have the following impact on the cash flow statement: a. decrease cash by $1,000,000. b. nil impact. This is a non-cash transaction. c. increase cash flow from financing activities by $1,000,000. d. increase cash by $1,000,000.
Need answer
The following information is for Rainbow National Bank: Report of Income $ Interest income 2,250.00 Interest expense 1,500.00 Total assets 45,000.00 Securities losses or gains 21.00 Earning assets 40,000.00 Total liabilities 38,000.00 Taxes paid 16.00 Shares of common stock outstanding 5,000 Noninterest income 800.00 Noninterest expense 900.00 Provision for loan losses 250.00 Please calculate: ROE --------- ROA --------- Net interest margin --------- Earnings per share --------- Net noninterest margin --------- Net operating margin --------- Alternative Scenarios: Suppose interest income, interest expenses, noninterest income, and noninterest expenses each increase by 3 percent while all other revenue and expense items shown in the preceding table remain unchanged. What will happen to Rainbow ROE,…
148.29 PA10-1 (Algo) Determining Financial Effects of Transactions Affecting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio [LO 10-2, LO 10-5) Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. April 30 Received 3648,000 from Connerce Bank after signing a 12-month, 8.00 percent, promissory note. June 6 Purchased merchandise on account at a cost of $79,000. (Assune a perpetual inventory system.) July 15 Paid for the June 6 purchase. August 31 Signed a contract to provide security service to a small apartment complex starting in September, and collected six months' fees in advance, amounting to $26,000. December 31 Determined salary and wages of $44,000 were earned but not yet paid as of December 31 (ignore payroll taxes). December 31 Adjusted the accounts at year-end, relating to interest. December 31 Adjusted the accounts at year-end, relating to security service. Required: 1. For each listed transaction…
The draft statement of financial position of B at 31 March 20X8 is set out below. $ $ Non-current assets 450 Current assets: Inventory 65 Receivables 110 Prepayments 30 205 Current liabilities: Payables 30 Bank overdraft (Note) 50 80 125 575 Non-current liability: Loan (75) 500 Ordinary share capital 400 Statement of profit or loss 100 500 Note: The bank overdraft first occurred on 30 September 20X7. What is the gearing of the company? You should calculate gearing using capital employed as the denominator. A 13% B 16% C 20% D 24%
The following information is for Rainbow National Bank: Interest income $2,250.00 Interest expense 1,500.00 Total assets 45,000.00 Securities losses or gains 21.00 Earning assets 40,000.00 Total liabilities 38,000.00 Taxes paid 16.00 Shares of common stock outstanding 5,000 Noninterest income $800.00 Noninterest expense 900.00 Provision for loan losses 250.00 Please calculate: ROE ROA Net interest margin Earnings per share Net noninterest margin Net operating margin Alternative Scenarios: a. Suppose interest income, interest expenses, noninterest income, and noninterest expenses each increase by 3 percent while all other revenue and expense items shown in the preceding table remain unchanged. What will happen to Rainbow ROE, ROA, and earnings per share? b. On the other hand, suppose Rainbow interest income and expenses as well as its noninterest income and expenses decline by 3 percent, again with all other factors held constant. How would the bank’s ROE, ROA, and per-share earnings…
San Antonio Corporation’s current assets and current liabilities section of the statement of financial position as of December 31, 20x1 appear as follows: Current assets Cash Accounts receivable P5,340,000 P2,400,000 Less: Allowance for doubtful accounts 420,000 4,920,000 Inventories 10,260,000 Prepaid expenses 540,000 Total current assets P18,120,000 Current liabilities Accounts payable P3,660,000 Notes payable 4,020,000 Total current liabilities P7,680,000 The following errors in the corporation’s accounting have been discovered: January 20x2 cash disbursements entered as of December 20x1 included payment of accounts payable amounting to P2,340,000, on which a cash discount of 2%…

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting: The Impact on Decision Make…

Accounting

ISBN:

9781305654174

Author:

Gary A. Porter, Curtis L. Norton

Publisher:

Cengage Learning