1. On October 1, 2020, how much should TRUE recognize as gain or loss on extinguishment?2. How much should TRUE recognize as interest expense for the year ended, December 31, 2021? Due to the covid-19 pandemic, TRUE has experienced extreme financial pressure and has been in default in meetinginterest payment on a long term note of P6,000,000 due on October 1, 2021. The interest rate is 12% payable everyOctober 1. The accrued interest payable on October 1, 2020 is #720,000. In an agreement with PITY, the creditor, theentity obtained the following changes in the terms of note:The accrued interest on October 1, 2020 is forgivenThe principal is reduced by P500,000v The new interest rate is 9% payable every October 1The new date of maturity is October 1, 2025The present values are as follow:@ 9%@ 12%PV of 1 for 5 periods0.64990.5674PV of an ordinary annuity for 5 periods3.88973.6048

If debtor can not pay the interest as well as principal due from him and defaults in the payment,…

Answered: Due to the covid-19 pandemic, TRUE has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The information that follows pertains to Esther Food Products: a. At December 31, 2024, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation Prepaid expenses Warranty expenses b. No temporary differences existed at the beginning of 2024. c. Pretax accounting income was $46,000 and taxable income was $9,000 for the year ended December 31, 2024. d. The tax rate is 25%. Required: Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024. Complete this question by entering your answers in the tabs below. Calculation General Journal $ 32,000 11,000 (6,000) Complete the following table given below to record income taxes for 2024. Note: Amounts to be deducted should be entered with a minus sign. Description Pretax accounting income Permanent differences Income subject to taxation Temporary Differences Income taxable in current year $ Amount 46,000 X Tax Rate = x X Recorded as:
Any past service costs should be included in the a) pension expense of past periods. b) pension expense of the current period. c) pension expense of current and future periods. d) plan assets.
Based upon this information, how would I make the following journal entries? Record annual pension expense. Record the change in plan assets. Record the change in the PBO. Record the cash contribution to plan assets. Record the retiree benefits paid.
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.
Permanent adjustments on Schedule M-1 (Form 1065) include: Premiums paid for life insurance policies on key employees, lobbying expenses, and tax exempt interest. Start up costs, depletion, and inventory costs. Section 179 expensing, uniform capitalization adjustments, and expenses related to tax exempt income. Depreciation, amortization, and depletion.
Vishal
NCLCO is allowed as deduction from ordinary income for the next succeedingyear only a.true b.false
Guidelines: Construct a statement of comprehensive income for the years 2019 and 2020. Given is the 2-period Adjusted Trial Balance
Bridgeport Inc. has two temporary differences at the end of 2019. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Bridgeport’s accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows. 2020 2021 2022 2023 Taxable amounts $41,300 $50,000 $61,200 $72,600 Deductible amounts (14,000 ) (18,300 ) $41,300 $36,000 $42,900 $72,600 As of the beginning of 2019, the enacted tax rate is 34% for 2019 and 2020, and 20% for 2021–2024. At the beginning of 2019, the company had no deferred income taxes on its balance sheet. Taxable income for 2019 is $548,000. Taxable income is expected in all future years. (a) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019. (Credit account…
CHOOSE THE LETTER OF THE CORRECT ANSWER What is the employee benefit expense for the current year? a. 1,180,000b. 2,100,000c. 1,850,000d. 1,050,000 What is the remeasurement gain or loss on plan assets on Dec. 31? a. 670,000 gainb. 670,000 lossc. 650,000 gaind. 650,000 loss
In 2020, Schedule 1 of Form 1040 is used to report: a.Salary income. b.Unemployment compensation. c.Capital gains and losses. d.Withholding on wages.
3. How much from the pension expense is recognized in the 2021 other comprehensiveincome or loss?4. What is the prepaid(accrued) pension expense as of December 31, 2021?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS