F Corp. has P3,000,000 worth of investment in 10%, 7-year bonds, which the company acquired in 2018. On December 31, 2020, F Corp. sold the bonds at a gain of P400,000. How much is the income tax due arising from the sale of the bonds?
Q: Answer the following questions. (1) What are the source documents for direct materials, direct…
A: 1. Source documents for Direct material = Material requisition slips For Direct labor = Time tickets…
Q: What is included in a balance sheet heading? Choose all answers that are correct. Oname of the sheet…
A: A balance sheet shows the financial condition or position of an organization.it contain assets ,…
Q: 1. The Accounting Cycle: The Mechanics of Accounting Required: Show the effects of the previous…
A: Accounting equation is one of the fundamental concept in accounting, which says that total assets…
Q: Q2: The designer of the penstock for a small hydroelectric cogeneration station has the option of…
A: Present Value Given a certain rate of return, present value (PV) is the current value of a future…
Q: What is the selling price of a dining room set at Macy's? Assume actual cost is $800 and 42% markup…
A: Formula: Profit=Selling price-Cost
Q: Prepare the necessary adjusting entries for the following independent situations. The accounting…
A: Adjusting entries Date Accounts Title debit credit Dec 31,20x2 Interest receivable To…
Q: On December 31, 2021, Piper Inc enters into a debt restructuring agreement with Nolte Company, which…
A: Given: - Reduction in the value of note receivable from $5,000,000 to $4,500,000 Reduction in the…
Q: Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs…
A: The Break-even point indicates that total units are to be sold by the business entity to recover its…
Q: The following information was extracted from the accounts of Carla Vista Co. at December 31, 2020:…
A: Retained earnings are the unallocated profits available for distribution to the shareholders. It is…
Q: Which of the following are primarily merchandising businesses? Choose all answers that are correct.…
A: Merchandising Business: It is a business in which in which person purchases finished product and…
Q: Elliott Company produces large quantities of a standardized product. The following information is…
A: The production cost report summarizes the production and cost activity within a department for a…
Q: Please identify and describe what does forensic accountants do.
A: To become a forensic accountant, one should know about investigations, accounting, and auditing. The…
Q: Single Plantwide Factory Overhead Rate Kennedy Appliance Inc.'s Machining Department incurred…
A: Pre-determined overhead rates are used to allocate the manufacturing overheads. It can be located on…
Q: Reid Company is considering the production of a new product. The expected variable cost is $27 per…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: O liabilities decrease O assets increase owner's equity decreases
A: Advertising refers to the form of presenting a product or service launched by a brand to the final…
Q: eliberate Speed Corporation 0: Accounts Payable Factory Building Cash Contributed Capital Equipment…
A: Accounting equation is as below: Liabilities + Equity = Assets
Q: ABC Company hired X as an independent contractor, whereby ABC has no power to control X's conduct.…
A: Income Tax Liability: The entire amount of unpaid taxes owing to the government by a person,…
Q: August 2022 data Work-in-process inventory, August 1, 2022 Direct materials inventory, August 1,…
A: The total manufacturing costs are calculated as sum of direct materials, direct labor and…
Q: 9. Carol babysat for 12 hours. Is she entitled to minimum wage? Explain your answer. 10. Harry works…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Required information [The following information applies to the questions displayed below.] Assume…
A: Depreciation is charged to reduce the value of the assets and this will be on the basis of the…
Q: Madison Makeup reported the following on its most recent financial statements (in $ millions). Fill…
A: Cash flow statement have three parts Cash flow from operating activities Cash flow from investing…
Q: Trace the evolution of the U.S. income tax system. In your answers note key milestones since the…
A: U.S Income Tax System The seven federal income tax brackets in the United States currently have…
Q: Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow:…
A: Days Cash on Hand : It is a measure in which a company can pay it's operating expense with available…
Q: Assume an option contract is for I underlying share. A call option on TESLA stock has a strike price…
A: The call option gives the holder the right to purchase a certain number of shares at the strike…
Q: Material price variance = (Standard price per gram - Actual price per gram) * Actual quantity of…
A: The variance is the difference between actual data and the standard output of production. The…
Q: Raw materials on hand, December 31 Work in process, December 31 Finished goods, December 31 Factory…
A: For unadjusted trial balance, we need to know the debit and credit of each ledger. Assets and…
Q: Rio Company pays time and a half for hour in excess of 40 hours per week. An individual is paid…
A: Employee earning is a combination of regular earning and overtime earnings. The overtime earning is…
Q: Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three…
A: Formula used: Contribution margin ratio=Sales-Variable expensesSales×100 Break-even point in dollars…
Q: What happens when an owner withdraws cash for personal use? Onothing, because the cash is not for…
A: Basic accounting equation is Total assets = Total liabilities + Owners equity
Q: R GLO401 (Algo) - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following…
A: Schedule of Receivables - Schedule of Receivables includes the ledgers of all the receivables.…
Q: E3.4 (LO 1, 2, 3) Luong Corporation encounters the following situations: 1. Luong collects $1,300…
A: In business, adjusting entries are recorded for correct reporting of all incomes, expenses, assets…
Q: Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack…
A: Overheads means all type of indirect costs being incurred in business. These costs can not be…
Q: 7.1. Calculate the annual depreciation over five years on a vehicle that had a purchase price (cost…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: 1. Using the data presented below: Sales Cost of Goods Gross Profit Big Rock Candy Mountain Mining…
A: Answer - Cashflow Statement - The Cash flow statement sum up movement of cash and cash…
Q: Work-in-process inventory, August 1, 2022 Direct materials inventory, August 1, 2022 Direct…
A: DIRECT MATERIAL OF INVENTORY DIrect material Inventory are those Direct Material which is left…
Q: weeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It…
A: Calculation of unit product cost if job P includes 20 units
Q: Which of the following are service businesses? Choose all answers that are c car dealership clothing…
A: Service busines means A service business is an organisation made up of a professional or team of…
Q: In your calculations, round the variable rate per employee hour to the nearest cent. If required,…
A: High low method is one of the method used for cost estimation under which variable costs and fixed…
Q: Using a compound interest of 8%, find the equivalent uniform annual cost for a proposed machine that…
A: Computation of present value of future cash flows\ Year Purchase/ salvage Annual maintenance cost…
Q: (Refer to Southern Industries inventory records.) A table of the end-of-the-year inventory valuation…
A: INVENTORY Inventory include Raw Material, Work in process & Finish Goods Which is held by the…
Q: Jen purchased a vehicle for 35,000. She put a 20% down and finaced the rest at 7.5% for five years.…
A: Finance Charge - It is the additional amount paid on the additional time give for repayment of…
Q: Prepare a journal entries for the following transaction
A: Journal entries are being recorded as initial step of accounting cycle process. Under this, atleast…
Q: A job order cost sheet for Wildhorse Company is shown below. Job No. 92 Beg. bal. Jan. 1 8 12 25…
A: Introduction: The overall costs charged for certain work are listed on a job order cost sheet. It is…
Q: Employment Income Income (Loss) From Business Rental Income (Loss) Taxable Capital Gains Allowable…
A: Total income refers to the gross income that is earned from various sources after deducting all…
Q: P3.1 (LO 1, 2, 3) (Multiple-Step Statement, Retained Earnings Statement) The following infor- mation…
A: Multi Step income statement is one of the financial statement which shows all incomes and all…
Q: Ona is an automobile salesperson who receives a salary of $1,500 per week plus a commission of 3% on…
A: Earnings of Ona consist of two components – fixed weekly salary and commission based on sales.…
Q: Please show solution in each number Needs for Adjusting -Depreciation -Bad Debts/Doubtful…
A: Adjusting entries are those type of journal entries which are passed at the end of accounting…
Q: All the numbers are in millions. Please calculate the debt ratio and time interest earned ratio year…
A: According to the given question, we are required to compute the debt ratio and time interest earned…
Q: Discussion Question The table below shows monthly data collected on production costs and on the…
A: Introduction: The phrase "production costs" refers to all of the direct and indirect costs incurred…
Q: During the month of August, Baesa Corporation produced 12,000 units and sold them for P20 per unit.…
A: Variable Cost :— Variable Cost are Constant at Per Unit Basis. Variable costs are costs that change…
F Corp. has P3,000,000 worth of investment in 10%, 7-year bonds, which the company acquired in 2018. On December 31, 2020, F Corp. sold the bonds at a gain of P400,000. How much is the income tax due arising from the sale of the bonds?
Step by step
Solved in 2 steps
- On January 1, 2020, EF company purchased P1,000,000, 12% bonds for P1,065,000, a price that yields 10%. The bonds pay interest semi-annually every January 1and July 1. At December 31, 2020, each bonds is selling at P1,055.If the debt investments is classified as at amortized cost, what is the interest revenue from the bond investment for the year 2020?On June 1, 2020, LM company purchased debt investment at amortized cost, 8,000 of P1,000 face value bonds for P7,383,000. The bonds were purchased to yield 10%. Interest is payable semi-annually on December 1 and June 1. On June 1, 2021, LM sold the bonds for P7,850,000. This amount includes the appropriate accrued interest. How much is the gain or loss on the sale of the debt investment?On January 1, 2021, Panama Company purchased P3,000,000 face amount, 9% bonds. The bonds were purchased to yield 8% interest. The bonds mature on January 1, 2026, and pay interest annually on December 31. The entity used 2 decimal places for the PVF. If measured at amortized cost, how much is the carrying amount of investment in bonds on December 31, 2021?
- On January 1, 2020, EF company purchased P1,000,000, 12% bonds for P1,065,000, a price that yields 10%. The bonds pay interest semi-annually every January 1and July 1. At December 31, 2020, each bonds is selling at P1,055. If the debt investments is classified as FVPL, what is the interest revenue from the bond investment for the year 2020?On July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8% bonds for P455,000 plus accrued interest. The bonds pay interest annually on January 1. on December 31, 2021, the bonds have a market value of P 472,500. On February 14, 2022, the company sold these bonds for P477,500. What is the gain/loss on the sale of the debt investments. a.) P5,000 gain b.) P12,500 loss c.) P40,000 gain d.) P0On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA Company for ₱4,270,600. The bonds will mature on January 1, 2025 and pay interest semi-annually on January 1 and July 1. Bonds effective interest rate is 8%. HIBISCUS has a business model of collecting all the contractural cash flows related to the instrument. How much should HIBISCUS report as interest income for the year ended December 31, 2020 on the bonds?
- On January 1, 2021, RUDOLPH Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price that yields 10%. The bonds pay interest semi-annually. The entity elects the fair value option for valuing financial liabilities. On December 31, 2021, the fair value of the bond is determined to be ₱106,460. The entity recognized interest expense of ₱12,000 in the 2021 income statement. What was the gain or loss recognized in the income statement to report this bond at fair value? (IF gain, leave the numerical figure as is; if LOSS, put a negative (-) sign before the numerical figure)On July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8% bonds for P455,000 plus accrued interest. The bonds pay interest annually on January 1. on December 31, 2021, the bonds have a market value of P 472,500. On February 14, 2022, the company sold these bonds for P477,500. What is the gain/loss on the sale of the debt investments. P5,000 gain P12,500 loss P40,000 gain P0On July 1, 2021, Rebecca Company, a medium-sized entity, purchased P3 million face, 8%, 5-year bonds for P3,251,880. The effective rate o the bon is 6%. The bonds are dated July 1, 2021 and pays interest every June 30. The company has a business model of buying and selling in order to make profits for all debt securities. What is the total interest income to be recognized by Rebecca in its December 31, 2021 profit or loss?
- CSUN Corporation purchased 1,000 Diamond Corporation bonds in 2018 for $500 per bond and classified the investment as securities available-for-sale. The value of the Diamond investment was $600 per bond on December 31, 2019, and $650 per bond on December 31, 2020. During 2021, CSUN sold all of its Diamond investment at $700 per bond. If CSUN records unrealized holding gains and losses up to the moment of sale, what would be the amount of reclassification adjustment that CSUN would record upon sale? A credit of $150,000. A debit of $200,000. A debit of $150,000. A credit of $200,000.Titania Co. sells $ 400,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021, Titania buys back $ 120,000 worth of bonds for $ 126,000 (includes accrued interest). Give entries through December 1, 2022.What is the calculation of gain on redemption?On June 30, 2020, Kikiam Inc. had outstanding 8%, P3,000,000 face amount, 15-year bonds maturing on June 30, 2027. Interest is payable on June 30 and December 31. The unamortized balances of bond discount as of June 30, 2020 is P105,000. Kikiam re-acquired all its bonds at 94 on June 30, 2020 and retired them. Ignoring income taxes, how much is the gain should Kikiam report on this early extinguishment of debt? A. 45,000 B. 75,000 C. 180,000 D. 105,000