Homework Help is Here – Start Your Trial Now!
Business
Accounting
• Goods shipped FOB destination on December 31, 20x2 from a vendor to Nichols, were received January 2, 20x3. The invoice cost was P325,000. At December 31, 20x2, what amount should Nichols report as total accounts payable? a. 7,575,000 b. 7,250,000 c. 7,235,000

• Goods shipped FOB destination on December 31, 20x2 from a vendor to Nichols, were received January 2, 20x3. The invoice cost was P325,000. At December 31, 20x2, what amount should Nichols report as total accounts payable? a. 7,575,000 b. 7,250,000 c. 7,235,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
22. Nichols Corporation's accounts payable at December 31, 20x2, totaled P4,500,000 before any necessary year-end adjustments relating to the following transactions: . On December 27, 20x2, Nichols wrote and recorded checks to creditors totaling P2,000,000 causing an overdraft of P500,000 in Nichols's bank account at December 31, 20x2. The checks were mailed January 10, 20x3. 23. On December 28, 20x2, Nichols purchased and received goods for P750,000, terms 2/10, n/30. Nichols records purchases and accounts payable at net amount. The invoice was recorded and paid January 3, 20x3. Goods shipped FOB destination on December 31, 20x2 from a vendor to Nichols, were received January 2, 20x3. The invoice cost was P325,000. At December 31, 20x2, what amount should Nichols report as total accounts payable? a. 7,575,000 b. 7,250,000 c. 7,235,000 d. 7,553, 500 The OA Company sells electrical goods covered by a one-year warranty for any defects. Of sales of P70 million for the year, the company estimates that 3% will have major defects, 5% will have. minor defects and 92% will have no defects. The cost of repairs. would be CU5 million if all the products sold had major defects and CU3 million if all had minor defects. What amount should OA recognize as a warranty provision? a. 8,000,000 b. 300,000 600,000 190,000 Items 24 to 26 are based on the following information. Efron Corp. issued P5,000,000 of 10% bonds on January 1, 20x1. The prevailing market rate of interest for similar type of securities was at 12% on the date of issue. The bonds will mature in 10 years. Interests are being paid semi-annually every July 1 and January 1. C. d. The following present value factors are taken from the present value. tables: Present value of 1 at 12% for 10 periods Present value of 1 at 6% for 20 periods Present value of an ordinary annuity of 1 at 12% for 10 periods Present value of an ordinary annuity of 1 at 6% for 20 periods ACCNTG2♥ | 5 24. What is the total proceeds from the bond issuance? a. 5,000,000 b. 4,458, 593 c. 4,426, 480 d. 4, 442, 069 25. What is the interest expense in 20x1? a. 871,534 b. 600,000 c. 532, 113 d. 500,000 0.32197 0.31180 5.65022 11.46992 26. What is the carrying amount of the bonds as of December 31, 20x1? a. 4,494, 676 b. 4,458, 593 a. 61,973 b. 60,000 c. 51,644 d. 50,000 c. 4,426, 480 d. 4,442,069 27. On July 1, 20x5, Pensatucky Trading received P1,032,880 for P1,000,000 face amount 12% bonds, a price that yields 10%. Interest. expense for the six months ended December 31, 20x5 should be
Transcribed Image Text:22. Nichols Corporation's accounts payable at December 31, 20x2, totaled P4,500,000 before any necessary year-end adjustments relating to the following transactions: . On December 27, 20x2, Nichols wrote and recorded checks to creditors totaling P2,000,000 causing an overdraft of P500,000 in Nichols's bank account at December 31, 20x2. The checks were mailed January 10, 20x3. 23. On December 28, 20x2, Nichols purchased and received goods for P750,000, terms 2/10, n/30. Nichols records purchases and accounts payable at net amount. The invoice was recorded and paid January 3, 20x3. Goods shipped FOB destination on December 31, 20x2 from a vendor to Nichols, were received January 2, 20x3. The invoice cost was P325,000. At December 31, 20x2, what amount should Nichols report as total accounts payable? a. 7,575,000 b. 7,250,000 c. 7,235,000 d. 7,553, 500 The OA Company sells electrical goods covered by a one-year warranty for any defects. Of sales of P70 million for the year, the company estimates that 3% will have major defects, 5% will have. minor defects and 92% will have no defects. The cost of repairs. would be CU5 million if all the products sold had major defects and CU3 million if all had minor defects. What amount should OA recognize as a warranty provision? a. 8,000,000 b. 300,000 600,000 190,000 Items 24 to 26 are based on the following information. Efron Corp. issued P5,000,000 of 10% bonds on January 1, 20x1. The prevailing market rate of interest for similar type of securities was at 12% on the date of issue. The bonds will mature in 10 years. Interests are being paid semi-annually every July 1 and January 1. C. d. The following present value factors are taken from the present value. tables: Present value of 1 at 12% for 10 periods Present value of 1 at 6% for 20 periods Present value of an ordinary annuity of 1 at 12% for 10 periods Present value of an ordinary annuity of 1 at 6% for 20 periods ACCNTG2♥ | 5 24. What is the total proceeds from the bond issuance? a. 5,000,000 b. 4,458, 593 c. 4,426, 480 d. 4, 442, 069 25. What is the interest expense in 20x1? a. 871,534 b. 600,000 c. 532, 113 d. 500,000 0.32197 0.31180 5.65022 11.46992 26. What is the carrying amount of the bonds as of December 31, 20x1? a. 4,494, 676 b. 4,458, 593 a. 61,973 b. 60,000 c. 51,644 d. 50,000 c. 4,426, 480 d. 4,442,069 27. On July 1, 20x5, Pensatucky Trading received P1,032,880 for P1,000,000 face amount 12% bonds, a price that yields 10%. Interest. expense for the six months ended December 31, 20x5 should be
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
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