Purse Corporation owns 70 percent of Scarf Company's voting shares. On January 1, 20X3, Scarf sold bonds with a par value of$600,000 at 98. Purse purchased $400,000 par value of the bonds; the remainder was sold to nonaffiliates. The bonds mature in fiveyears and pay an annual interest rate of 8 percent. Interest is paid semiannually on January 1 and July 1.Required:a. What amount of interest expense should be reported in the 20X4 consolidated income statement? (Do not round yourintermediate calculations. Round your final answer to nearest whole dollar.)Answer is complete but not entirely correct.Interest expense $ 16,800 x b. Prepare the journal entries Purse recorded during 20X4 with regard to its investment in Scarf bonds. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Roundyour final answers to nearest whole dollar.)NoABNo123DateJanuary 1, 20X4July 1, 20X4CashEvent1Interest receivable2CashDecember 31, 20X Interest receivableInvestment in Scarf Company bondsInterest incomeBonds payableInterest incomeAnswer is not complete.General JournalInterest payableInvestment in Scarf Company bondsBond discountInterest expenseInterest receivable3 3c. Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparingconsolidated financial statements for 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in thefirst account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)Answer is complete but not entirely correct.Accounts< Prev✓3 of 6 ⠀>0 0 0 0 0→→DebitNext >16,000✔16,00016,000Debit400,000✔ⓇCredit16,000✔16,0001 xCredit395,200✔1 x1 xReturn to question16,000✔

A journal entry records a business transaction in the accounting system of a company. Journal…

event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) No 1 2 3 Date January 1, 20X4 July 1, 20X4 Cash Interest receivable Cash Answer is not complete. December 31, 20X Interest receivable General Journal Investment in Scarf Company bonds Interest income Debit 16,000 16,000 16,000 Credit 16,000 1 1 X X Return to questi Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing onsolidated financial statements for 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the

event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) No 1 2 3 Date January 1, 20X4 July 1, 20X4 Cash Interest receivable Cash Answer is not complete. December 31, 20X Interest receivable General Journal Investment in Scarf Company bonds Interest income Debit 16,000 16,000 16,000 Credit 16,000 1 1 X X Return to questi Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing onsolidated financial statements for 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the

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 Required: Complete the following table by computing the missing amounts for the following independent cases. (Do not round intermediate calculations. Round "Annual Interest Rate" to 1 decimal place.) Principal Amount on Notes Annual Interest Time Period Rate Interest Earned Receivable ok a S 65,000 11.4 % 6 months b. $ 43,000 % 9 months $ 3,483 C. 9.3 % 12 months $ 3,069 nces
Required: Complete the following table by computing the missing amounts for the following independent cases. (Do not round intermediate calculations. Round "Annual Interest Rate" to 1 decimal place.) a. b. C. Principal Amount on Notes Receivable $ $ 50,000 40,000 Annual Interest Rate 12.0% % 9.0 % Time Period 6 months 9 months 12 months Interest Earned $ $ 3,600 2,700
Assuming that the market price as of December 31, 2020, is $2.97, record the journal entry. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, eg. 6,225.) Date Account Titles and Explanation Debit Credit Dec. 31 Unrealized Holding Gain or Loss - Income 12540 Estimated Liability on Purchase Commitments 12540 eTextbook and Media List of Accounts Attempts: 1 of 1 used (c2) Give the entry in January 2021, when the 38,000-gallon shipment is received, assuming that the situation given in (b2) above existed at December 31, 2020, and that the market price in January 2021 was $2.97 per gallon. Prepare the journal entry for when the materials are received in January 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the…
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Account Type Opening Deposit Rate(APR) APY Checking – Variable Rate $0 0.25% 0.25% Money Market – Variable Rate $250.00 1.00% 1.01% Summer Cash - Variable Rate $0 0.99% 1.00% Holiday Cash – Variable Rate $0 0.75% 0.75% 6 Months – Fixed Rate $250.00 1.00% 1.00% 12 Months – Fixed Rate $250.00 1.00% 1.00% 18 Months – Fixed Rate $250.00 1.00% 1.00% 24 Months – Fixed Rate $250.00 1.00% 1.00% 30 Months – Fixed Rate $250.00 1.00% 1.00% 36 Months – Fixed Rate $250.00 1.25% 1.25% 48 Months – Fixed Rate $250.00 1.50% 1.50% 60 Months – Fixed Rate $250.00 1.50% 1.50% Use the table above: For the “Summer Cash Variable Rate” and “Money Market Variable Rate” check the APY. Do both of these appear t be printed correctly? a) Summer Cash - Variable Rate: APY = % (round to 2-decimal point in percent) b) Money Market - Variable Rate: APY = % (round to…
Entries for discounted note payable A business issued a 30-day note for $57,000 to a bank. The note was discounted at 7%. Assume a 360 days in a year. a. Journalize the entry to record the issuance of the note. If an amount box does not require an entry, leave it blank. If necessary, round your answers to one decimal place. 88 Cash Interest Expense Notes Payable Feedback Check My Work a. Why is the company issuing the note? What type of note is being issued (interest-bearing or discounted)? How much will the company. owe on the maturity date? b. Journalize the entry to record the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Notes Payable Cash
View Policies Current Attempt in Progress Vaughn Bikes Ltd. reports cash sales of $6,600 on October 1. (a) Record the sales assuming they are subject to 13% HST. (b) Record the sales assuming they are subject to 5% GST and 9.975% QST. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) No. Date Account Titles and Explanation Debit Credit (a) Oct. 1 (b) Oct. 1 eTextbook and Media List of Accounts
Notes Payable issued a 90-day, 9% note for 37,000 to a creditor on account the effects on the accounts and financial statements of recording () the issuance of the note and (b) the paymen at maturityincluding interest no account or activity is affected, select No effectfrom the dropdown list and leave the corresponding number entry box blankEnter account decreases and cash as negative amounts a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note
4. Interest Rate Oliver has the following outstanding balances: Balance ($) Form of Credit Bank Loan Credit Card A Credit Card B a. 6686.98 765.39 1028.14 7.2% compounded monthly 20.99% compounded daily 17.5% compounded daily Monthly Payment $300 Minimum payment of $50 Minimum payment of $30 Length to Pay off Use the last column to determine how long it will take for Oliver to pay of each balance if he pays the (minimum) monthly payment. Show relevant calculations below. b. Suppose Oliver consolidates his loan and credit card balance by using a line of credit to pay off each debt. The line of credit has an interest rate of 7.5%, compounded monthly. If Oliver makes payments of $380, how long will it take to be debt free? c. How much interest would he save by consolidating his debt?
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