Answered: FAM & Co. Ltd issued 2,000 15%…

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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On December 31, 2025, Blue Inc. rendered services to Beghun Corporation at an agreed price of $106,641, accepting $41,800 down and agreeing to accept the balance in four equal installments of $20,900 receivable each December 31. An assumed interest rate of 11% is imputed. (a1) Prepare an amortization schedule. Assume that the effective-interest method is used for amortization purposes. (Round answers to O decimal places, e.g. 5,275.)
luxco acquires participation on Aprin 1, 2012 for 1000000. This investment is financed by (a) share premium for 100.000é (b) an interest-free shareholder loan for 250000€ and (c) bank loan bearing interest at 5% per annum for the balance. the interest on the bank mentioned above are payable on the last day of each civil quarter (March 31...). Any unpaid accrued interest bear also interest at 5% per annum starting from the day after their due date (from Aprin 1 for interest payable on March 31). Assuming that Luxco does not pay its interest on June 30, 2012, please detail the accounting entries in relation with the booking of interest as Jube 30, 0210 and September 30, 2012 Make the journal entries only for the interest
On 1 July 2021, Mel Ltd took control of the assets and liabilities of Syd Ltd. At this date the statement of financial position of Syd Ltd was as follows: Required Prepare the journal entries in the records of Mel Ltd at 1 July 2021 in each of the following situations, assuming the costs of issuing the shares by Mel Ltd cost $1600. Mel Ltd issued 80 000 shares having a fair value of $2.40 per share in exchange for the net assets of Syd Ltd Mel Ltd issued 80 000 shares having a fair value of $2.00 per share in exchange for the net assets of Syd Ltd. Mel Ltd acquired the shares of Syd Ltd. The agreement was that Mel Ltd would pay the shareholders of Syd Ltd one share in Mel Ltd for every two shares held in Syd Ltd plus $1 in cash for each share held in Syd Ltd. Shares in Mel Ltd have a fair value of $1.80 per share.

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FAM & Co. Ltd issued 2,000 15% debenture of Ghc1,000 each and Ghc2,000 each redeemable in 10 years. All applications were accepted and subsequently allotted. Journalize this transaction