b. 2,150,000c. 1,800,000d. 2,000,000с.Problem 5-17 (IAA)Aye Company is authorized to issue P5,000,000 of 6%,10-year bonds dated July 1, 2020 with interest payments onJune 30 and December 31. When the bonds are issued onNovember 1, 2020, the entity received cash of P5,150,000including accrued interest.What is the discount or premium from the issuance of thebonds?150,000 bond premiumb. 50,000 bond premium150,000 bond discountd. No bond premium and discounta.с.Problem 5-18 (AICPA Adapted)On Novomber 1 2020. Mason Company issued P4,000,000 of

The right answer is option b. 50,000 bond premium

Answered: A) is authorized to issue ated July 1,…

Business

Accounting

A) is authorized to issue ated July 1, 2020 with in ecember 31. When the b 20 th entity received

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Problem 2: The following selected post-retirement benefit accounts were lifted from the 2021…

Q: 1a. Prepare a 2020 pension worksheet 1b. Prepare the journal entries at December 31, 2020, to…

A: Pension refers to an amount that is paid to the employees after their retirement. The pension…

Q: what was austal limited 2019 assest

A: Austal limited is a company involved in business of shipbuilding.

Q: Per the CREATE, proprietary educational institutions and non-profit hospitals shall enjoy an income…

A: Proprietary educational institutions are the private schools which are run and monitored by…

Q: AJUMA Farms operates a farm with various plants and a herd of animals. On January 1, 2021, it had…

A: The fixed assets which are biologically living or has natural life enabling them grow are called…

Q: Which statement is correct if the debt instrument is classified as FA@FVTOCI? a. The net amount to…

A: The financial asset which are measured as per FVTOCI or ACM method are to be adjusted for expected…

Q: hich of the following statement about expected vesting period agrees with IFRS 2?

Q: On December 31, 2017, Entity Z acquired Lumangyao Corporation's P1,000,000 notes P927,880. The…

A: In order to recognize the impairment loss on December 31,2019 we need to determine the book value of…

Q: result of the termination benefits in 2020? 2. What amount should be recognized in profit or loss as…

A: The pension benefit is the amount that the individual receives after retirement from employment at…

Q: Vaughn's assets on December 31, 2020 are $200200. O $302000. O$170600. O $259100.

A: Assets = Equipment + Cash + Supplies + Accounts Receivable

Q: Water Insurance Co issues a group of insurance contracts an Dec. 19, 20x1. On that day, the entity…

A: The following calculations are done in the records of Water Insurance Corporation.

Q: Which of the following temporary differences results in a deferred tax asset in the year the…

Q: On January 1, 2021, BEZOS COMPANY acquired 10%, 3-year bonds with face value of $ 2,000,000.…

A: Bond Investments: These are fixed income instruments to raise money by borrowing from investors…

Q: How will this transaction be classified?

A: Given information is: During year 13, Quo determined that an insurance premium paid and entirely…

Q: From the information given below Calculate the amount to be maintained as Legal Reserve for the year…

A: In general, reserve accounting refers to the company's accumulated profits throughout the time that…

Q: New Corporation amends its pension plan on 1/1/20. The following information is available: 1/1/20…

A: Past service cost as a result of this amendment = (Projected benefit obligation after amendment -…

Q: In 2022, which of the following miscellaneous deductions are not subject to the 2 percent of AGI…

A: Miscellaneous deductions refer to eligible expenses incurred by taxpayers that don't fit into…

Q: Determine the carrying amount of the investment in associate on December 31, 2020

A: Carrying value is an accounting store of worth that bases the worth of an asset or firm on the…

Q: An association has applied for registration with the BIR. After submission of the requirements, it…

A: Bureau Of Internal Revenue :(B I R ) is an agency of the Department of Finance of Philippines. BIR…

Q: Provide your comment about the accounting treatment for additional investment made by Ruby on 31st…

A: Additional investment made by the owner into the business increase the overall capital of the…

Q: what us the 2021 general entry?

A: An employer agrees to provide employees with a predetermined amount of retirement benefits upon…

Q: What is the contract revenue for 2020? 2. What amount should be reported as deferred contract…

A: Formula: Deferred contract revenue on December 31, 2020 = Sales revenue - Contract revenue

Q: Sheridan Corporation initiated a defined benefit pension plan for its 50 employees on January 1,…

A: Plan Assets- Plan assets are assets/investments supposed by a long-term employee advantage fund for…

Q: Pesto Corporation acquired 80 percent of Sauce Corporation's common stock on January 1, 20X7, for…

A: A consolidated balance sheet is a document that, without dividing the companies, compiles all of the…

Q: Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the year…

A: Answer: C.1,000,000 Accrued liabilities are such liabilities which have not yet been paid during an…

Q: a) Based on the above information, calculate the non-controlling interest as at 30 June 2019. b)…

Q: AJUMA Farms operates a farm with various plants and a herd of animals. On January 1, 2021, it had…

A: Biological assets available at the end of the year (December 31, 2021): 2-year old animals = 10 - 3…

Q: 7. For nonprofit entities, reclassifications from net assets with donor restrictions to net assets…

A: Introduction: Net assets with donor restriction - The portion of a not-for-profit entity's net…

Q: insured who wants to verify the deductible on Section I of their Homeowners policy should look at…

A: insurance policy is considered to be contract between the policy holder and the insurance this…

Q: Explain the purpose and use of Form W 4 from 2020 or later

A: The internal revenue service (IRS) Form W-4 is a tax document that employees use to inform their…

Q: period? wer. t be deposted nto the brokeragers commission urt within 24hours of recept Funds must be…

A: Real estate and brokers act refers to the act which specifies all the desired set of rules and…

Q: Question 20. The amount of provisions that should be recognized at December 31, 2021 is?

A: Provisions in Accounting Provisions which are made in the accounting is to make the estimation in…

Q: SPI Matthew Co. includes one coupon in each bag of dog fo coupons, customers receive a leash. The…

A: Liabilities are accumulated financial obligations that result from past events that are expected to…

Q: how do an annual bonus paid at year end be treated under IAS34 and how does this treatment differ…

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: Entries, Balance Sheet, Statement of Revenues, Expenditures, and Changes in Fund Balance LO 8 The…

A: An adjusted trial balance is a list of ending balances in all accounts, with entries made after…

Q: W13-4 Funny Company received the following selected information from its pension plan trustee…

A: Formulas:

Q: 1. How does the GASB define extraordinary and special items? Compare the definitions and recognition…

A: The GASB defines extraordinary and special items as those of FASB that is unusual and infrequent but…

Q: P9.3 (LO 1) (LCNRV-Cost-of-Goods-Sold and Loss) Malone Company determined its ending inventory at…

A: Journal entries are the foremost reporting of transactions in the books of accounts.

Q: Received interest revenue of RO. 7525. In the Interest revenue ledger

A: Interest revenue is the profit earned by a company from any investments it makes or the debt it…

Q: Which of the following would not be reported as required supplementary information? A.) Budget B.)…

A: The information provided in addition to the financial statements is known as supplementary…

Q: Moreton Ltd contributes to a defined benefit superannuation plan for its employees. The following…

A: The question is based on the concept of Financial Accounting.

Q: The Wes Trust reports $93,600 of AMT income before the annual exemption. Round any computations and…

A: A tax is a payment that a government levies on citizens, companies, or other organisations in order…

Q: The Claims Made Policy Form will pay for looses that occur at which of the following times? After…

A: Claim made policy is referred to as an insurance policy, which helps in providing the coverage at…

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

b. 2,150,000
c. 1,800,000
d. 2,000,000
с.
Problem 5-17 (IAA)
Aye Company is authorized to issue P5,000,000 of 6%,
10-year bonds dated July 1, 2020 with interest payments on
June 30 and December 31. When the bonds are issued on
November 1, 2020, the entity received cash of P5,150,000
including accrued interest.
What is the discount or premium from the issuance of the
bonds?
150,000 bond premium
b. 50,000 bond premium
150,000 bond discount
d. No bond premium and discount
a.
с.
Problem 5-18 (AICPA Adapted)
On Novomber 1 2020. Mason Company issued P4,000,000 of

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

1. How to find out the acturial gains and losses on the defined benefit obligation and the defined benefit plan assets for the year. Give an example.
6. What amount should be recorded as pension liability on December 31, 2021? ₱ 45,000 ₱ -0- ₱ 20,000 ₱ 25,000
please answer it with a solution. REQUIRED: COMPUTE THE CONSOLIDATED TOTAL LIABILITIES ON JANUARY 1, 2020.
On December 31, 2018, an entity paid $300,000 contribution to a defined contribution plan. Of this amount, P250,000 is in part exchange for services performed by the employees in December 2017, and the balance of P50,000 is in respect of services to be performed in 2018. What is the journal entry of the defined contribution plan made on December 2017?
The following information relates to the defined retirement benefit plan of Integrity Company as of December 31, 2021: Net actuarial gain due to remeasurement of benefit obligation and plan assets taken to OCI - P123,000 Prior service cost due to amendment of plan included in retirement benefit expense - P443,000 Fair value of plan assets - P2,557,000 Accrued benefit obligation - P2,800,000 What amount should be shown in the statement of financial position at December 31, 2021 as Prepaid or Accrued Retirement Benefit Cost? a. P243,000 accrued b. P563,000 accrued c. P323,000 prepaid d. P77,000 prepaid
how do an annual bonus paid at year end be treated under IAS 34 and how does this treatment differ from what is required under U.S GAAP?
The premium liability at December 31, 2021 is *see attached a. P 16,875b. P 31,875c. P 33,750d. P 63,750
What is the fair value of the plan assets at December 31?
how much Loss on Repayment of the Grant will be recorded on January 1, 2022?
Is a non-profit corporation also required to submit annual reports to SEC?
When researching retirement obligations in the FASB Accounting Standards Codification you would look under section 210 310 410 510
What amount was recognized as actuarial gain on PBO during the year? 100 000 200 000 240 000 0 What is the benefit expense for 2019? 500 000 795 000 295 000 195 000