Logan Co. purchased $500,000 of 8% bonds of Harper Co. on January 1, 2015, paying $478,500. The bonds mature on January 1, 2025; interest is payable each July 1 and January 1. The discount of $21,500 provides an effective yield of 9%. Logan Co. uses the effective-interest method and plans to hold these bonds to maturity. On July 1, 2015, Logan Co. should increase its Held-to-Maturity Debt Securities account for the Harper Co. bonds by: a. $2,752.50 b. $1,993.50 c. $1,250.00 d. $759.00
Q: I want to correct answer
A: To determine whether Duke's proposal is financially sound, we must compare the cost of not taking…
Q: not use ai please
A: Answer information:The Statement of cash flows is as follows:Statement of cash flows (Indirect…
Q: None
A: Step 1: Calculate the fixed manufacturing overhead cost per unitThe total fixed manufacturing…
Q: Prepare a narrative to describe the system depicted in the physica l
A: The customer initiates the process by placing an order. This can be done via a telephone call. The…
Q: Need help please
A: Step 1: Identify the highest and lowest levels of activity.Step 2: Calculate the change in total…
Q: Date Account Titles and Explanation July 31 July 31 (To close revenue accounts) July 31 (To close…
A: We can explain further as follows;1. Closing Revenue Accounts:Explanation:At the end of the…
Q: None
A: Step 1: Introduction to the High-Low MethodThe high-low method is an approach used to separate out…
Q: Need answer
A: To determine the Golden Gate Company's gross margin for the year, we need to calculate the cost of…
Q: Can you please give answer
A: The high-low method provides a simple way to separate the fixed and variable portions of mixed…
Q: I want to answer this question
A: Step-by-step: 1. Determine the most appropriate activity rate for moving. 2. We have the following…
Q: None
A: If you have any problem let me know in comment box.
Q: None
A: Step 1:Answer -1-The correct option is c.Posting The first step in accounting process is recording…
Q: Give true solution not use ai
A: Step 1: Introduction to the Net IncomeNet income increases the total equity balance, as it is the…
Q: The Hudson Corporation makes an Investment of $28,050 that provides the following cash flow. Year 1…
A: Step 1: Given Value for Calculation Initial Investment = i = $28,050Cash Flow for Year 1 = cf1 =…
Q: Please help with this question
A:
Q: A company purchase supplies on account for $1600. Indicate the amount of increase and decrease in…
A: Hello student! The accounting equation represents how the business financed its assets:Assets =…
Q: Need answer please
A: Detailed Solution : To determine the total amount received by Vijay in the given transaction we will…
Q: not use ai please
A: Step 1: Computation of the effect on earningsFormula:Total Expenses = Amortization Expense +…
Q: Nagy Corporation's International Division consists of two of Nagy's subsidiaries. One of the…
A: Step 1: Current Rate Method:Under the current rate method, all assets and liabilities are…
Q: No copy paste answer. need answer in details
A: Question 2: Labor Efficiency Variance CalculationGiven Information:Standard hours per generator: 20…
Q: Do not use ai don't
A: Step 1: Introduction DuPont AnalysisThe DuPont analysis is a financial approach to break down the…
Q: None
A: Note 1 ($ in thousands)PBO balance, January 1, 2024$ 0Service cost for 2024250Interest expense for…
Q: Question invoice for $15,000 terms FOB destination received entered on January 2 receiving report…
A: The fact of the matter is that on 31 December, goods were received, albeit the invoice of $ 15,000…
Q: None
A: Step 1: Introduction to the Stock ReturnsWhen a stock's return is expressed in dollars, it is called…
Q: None
A: Step 1:Computation of the variable cost per unit using the high-low method: Variable cost per unit =…
Q: Your friends just questions your intent to take an accounting tax class. They do not understand why…
A: 2. Professional Relevance:Career Opportunities: Tax knowledge is crucial for many careers, not only…
Q: mn.3 answer must be correct or i will give down vote
A: The cost of goods sold (COGS) is calculated as 80% of sales. Given that the sales for December are…
Q: not use ai please
A: Statement of Stockholders' Equity: Calculations: Net income= Retained earnings, Ending + Dividends…
Q: Give me correct answer
A:
Q: None
A: Step 1: Introduction Absorption CostingAbsorption costing is a cost accounting method that assigns…
Q: None
A: Step 1: Introduction to the High-Low MethodThe high-low method is a technique to analyze mixed costs…
Q: Need help with this question
A: Step 1: Calculate Earnings Before Interest and Taxes (EBIT):• Subtract Operating Expenses and…
Q: What amount of cash must be invested today in order to have $39,000 at the end of one year assuming…
A: The balance amount at end of one year is given by,B=A(1+100r).......equation(1) Where,B is the…
Q: How to calculate the issue price of the bonds with normal calculator?
A: Referencehttps://www.investopedia.com/terms/b/bond-valuation.asp
Q: Q2Jenny's adjusted gross income (AGI) is $120,000 a year and she owns a real estate property that…
A: Step 1 - Total Gross Income Calculation AGI: $120,000 Rental Income: $10,000 Total Gross Income =…
Q: Provide correct solution
A: Step 1: Introduction to the InventoriesIn accounting, inventories are considered current assets and…
Q: At the beginning of the current year, Poplock began a calendar-year dog boarding business called…
A: Poplock, who began a calendar-year dog boarding business called Griff's Palace at the start of the…
Q: Baxter Company sold 8,600 units at $130 per unit. Normal production is 9,000 units. Standard: 5…
A: To solve this problem, we will follow these steps:1. Calculate total sales revenue.2. Calculate the…
Q: Do not use AI
A: he calculation and the result are correct. Let's break it down again:Net Income: $12 millionShares…
Q: Need help with this question
A: To calculate the interest expense for Sideways Movers on December 31, 2009, we need to follow these…
Q: Provide correct answer this question
A: Step 1: Calculate Total Debt using the Debt-Equity Ratio.Step 2: Calculate Total Assets by adding…
Q: None
A: To calculate the gross profit and operating income using absorption costing, we'll follow these…
Q: 4. Given the following information, calculate the inventory turnover for a Company. Evaluate the…
A: To calculate the inventory turnover ratio for the company in both 2020 and 2021, we can use the…
Q: Need help
A: To get the total value of the company's ending inventory using the lower of cost or market method,…
Q: not use ai please
A: Step 1: STEP BY STEP The tax filing process commences with the initiation event. Next, gather and…
Q: Do not use Ai
A: Jan. 4Accounts Receivable - Anchorage Furniture Store: $15,000 Sales Revenue: $15,000…
Q: I want to correct answer
A: Sum up the value of everything he received to calculate Vijay's amount received in this…
Q: Provide correct answer
A: To calculate the manufacturing cost markup needed to obtain a target profit of $100,000, we need to…
Q: Part 1: Net Present Value (NPV) First, we need to calculate the annual cash flow. The net income is…
A: Answer:
Q: Provide correct answer
A:
need answer please provide it
Step by step
Solved in 2 steps
- On January 1, 2019, Brewster Company issued 2,000 of its 5-year, 1,000 face value, 11% bonds dated January 1 at an effective annual interest rate (yield) of 9%. Brewster uses the effective interest method of amortization. On December 31, 2023, Brewster extinguished the 2,000 bonds early through acquisition in the open market for 1,980,000. On July 1, 2022, Brewster issued 5,000 of its 6-year, 1,000 face value, 10% convertible bonds dated July 1 at an effective annual interest rate (yield) of 12%. The bonds are convertible at the option of the investor into Brewsters common stock at a ratio of 10 shares of common stock for each bond. Brewster uses the effective interest method of amortization. On July 1, 2023, an investor in Brewsters convertible bonds tendered 1,500 bonds for conversion into 15,000 shares of Brewsters common stock, which had a market value of 105 per share at the date of the conversion. Required: 1. Using the information about Brewster, answer the following questions: a. Were the 11% bonds issued at par, at a discount, or at a premium? Why? b. Is the amount of interest expense for the 11% bonds using the effective interest method of amortization higher in the first or second year of the life of the bond issue? Why? 2. Using the information about Brewster, explain the following: a. How is a gain or loss on early extinguishment of debt determined? Does the early extinguishment of the 11% bonds result in a gain or loss? Why? b. How does Brewster report the early extinguishment of the 11% bonds on the 2023 income statement? 3. Based on the information provided about Brewster, answer the following questions: a. Does recording the conversion of the 10% convertible bonds into common stock under the book value method affect net income? What is the rationale for the book value method? b. Does recording the conversion of the 10% convertible bonds into common stock under the market value method affect net income? What is the rationale for the market value method?On January 1, 2020, Apple Co. purchased held-for-collection and sales bonds par value $2,000,000, 9% paying $1,920,000. The bonds mature on January 1, 2025, and pay interest on July 1 and January 1. Apple Co. sells these bonds on January 1, 2023, for €2,025,000, after the interest has been received. If the carrying value of the bonds at the selling date was €1,966,500. Apple Co. uses effective interest amortization (100% effective interest rate). The gain on the sale is: A. €80,000. B. €25,000. C. €58,500. D. €33,500.On January 1, 2017, Pearl Company purchased 12% bonds, having a maturity value of $284,000, for $305,531.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Pearl Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2017 $303,400 $292,200 2018 2019 (a) (b) (c) $291,200 2020 2021 $293,200 $284,000 Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to record the interest revenue and recognition of fair value for 2017. Prepare the journal entry to record the recognition of fair value for 2018.
- On January 1, 2025, Hummer Company purchased 5% bonds, having a maturity value of $500,000 for $428,938. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2025, and mature January 1, 2035, with interest receivable June 30 and December 31 of each year. Hummer Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows. 2025 $430,000 2026 2027 (a) (b) (c) 425,000 420,000 2028 $450,000 2029 470,000 Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to record the interest received and recognition of fair value Prepare the journal entry to record the recognition of fair value for 2026.On January 1, 2023, Ayayai Limited pays $110,522 to purchase $125,000 of Chan Corporation 7% bonds. The market rate of interest at the time was 10%. Ayayai accounts for this investment at amortized cost using the effective interest method. The bonds mature on January 1, 2028, and interest is payable each July 1 and January 1. Note that the bond is acquired on an interest payment date and there is therefore no accrued interest for Ayayai to pay on January 1. Ayayai has an August 31 year end. (a) How was the price determined? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to O decimal places e.g. 58,971.) Present value of maturity value Present value of interest payments Price of the bonds $ $ $On January 1, 2023, Pronghorn Limited pays $105,753 to purchase $110,000 of Chan Corporation 9% bonds. The market rate of interest at the time was 10%. Pronghorn accounts for this investment at amortized cost using the effective interest method. The bonds mature on January 1, 2028, and interest is payable each July 1 and January 1. Note that the bond is acquired on an interest payment date and there is therefore no accrued interest for Pronghorn to pay on January 1. Pronghorn has an August 31 year end (a) * Your answer is incorrect. Calculate the amortization of the discount per month using the straight-line method. (Round answer to 2 decimal places, eg 125.55) SUPPOR
- On January 1, 2020, Wildhorse Company purchased 6% bonds, having a maturity value of $550,000 for $475,253. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2027, with interest paid on June 30 and December 31 of each year. Wildhorse Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $476,000 2023 2021 $471,000 2024 $466,000 2022 (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. (c) Prepare the journal entry to record the recognition of fair value for 2021. (Round answers to 2 decimal places, eg. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for…On January 1, 2020, Cheyenne Company purchased 4% bonds, having a maturity value of $420,000 for $357,515. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2020, and mature January 1, 2027, with interest paid on June 30 and December 31 of each year. Cheyenne Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $359,000 2021 2022 (a) (b) (c) 2023 $354,000 2024 $349,000 $379,000 $399,000 Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. Prepare the journal entry to record the recognition of fair value for 2021. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,…On January 1, 2020, Marin Company purchased 6% bonds, having a maturity value of $550,000 for $475,253. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2027, with interest paid on June 30 and December 31 of each year. Marin Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $476,000 2023 $496,000 2021 $471,000 2024 $516,000 2022 $466,000 (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. (c) Prepare the journal entry to record the recognition of fair value for 2021. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is…
- On January 1, 2025, Crane Company purchased 6% bonds, having a maturity value of $530,000 for $457,971. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2025, and mature January 1, 2035, with interest receivable June 30 and December 31 of each year. Crane Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows. 2025 2026 2027 (a) (b) (c) No. (a) $459,297 454,297 2029 (b) 449,297 (Round answers to O decimal places, e.g. 2,525. Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) Date 2028 Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to record the interest received and recognition…On January 1, 2020, Hummer Company purchased 5% bonds, havinga maturity value of $500,000, for $428,938. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2020, and mature January 1, 2030, with interest receivable June 30 and December 31 of each year. Hummer Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.(a) Prepare the journal entry at the date of the bond purchase.(b) Prepare the first 3 years of a bond amortization schedule.(c) Prepare the journal entries to record the interest received and the amortization for 2020.No. (a) (b) (c) Date Account Titles and Explanation (To record interest received) (To record fair value adjustment) Debit == Credit