p25 how much is the interest expense for the year ended December 31, 2020?P132,825P150,000P144,900P137,500 On September 30, 2020, ChowFan Company issued P5,000,000 face value, 5-year bonds at 102.Each P1,000 bond was issued with 20 detachable share warrants, each of which entitled thebondholder to purchase one share of P5 par ordinary share at P25. At time of issuance, there wasno available market value for the warrant. The stated interest rate on the bonds is 11% payableannually every September 30. However, the prevailing market rate of interest for similar bondswithout warrants is 12%. The present value of 1 at 12% for 5 periods is 0.57 and the present valueof an ordinary annuity of 1 at 12% for 5 periods is 3.60. ChowFan Company's accounting yearends on December 31.

solution : Given : Coupon rate =11% Market interest rate =12 % Interest payable annually…

Answered: P132,825 P150,000 P144,900 P137,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

6) Year Project A Project B Difference 0 -75000 -75000 0 1 26300 24000 2300 2 29500 26900 2600 3 45300 51300 -6000 Crossover rate 14.60% Hi I need help with the following question! Thank you! Are you going to accept project A or project B? Why?
Dete for Utuyox735, a large merchandiser, is below Sales are budgeted at $307,000 for November, $327,000 for December, and $227,000 for January . Collections are expected to be 60% in the month of sale and 40% in the month following the sale The cost of goods sold is 75% of sales . Utuyoz735 desires to have an ending merchandise Inventory at the end of each month equal to 90% of the next month's cost of goods soid. Payment for merchandise is made in the month flowing the purchase Other monthly expenses to be paid in cash are $22,800. Monthly depreciation is $29,500 . Ignore taxes. . (D#38127) Annet Cash Balance Sheet October 31 Accounts receivable. Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity Q) What are the accounts payable for Utuyoz735 at the end of December? Multiple Choice F 35,000 85,500…
00 FI 96 R %24 JAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Print Item Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated revenue producing life of 4 years. Falkland has a cost c capital of 12%. The patent is expected to generate the following amounts of annual income and cash flows: Year 1 Year 2 Year 3 Year 4 Net income $5,100 $6,500 $6,300 Operating cash flows 18,400 18,200 (Click here to see present value and future value tables) 006' A. What is the NPV of the investment? Round your present value factor to three decimal places and final answer to the nearest dollar. 24 B. What happens if the required rate of return increases? If the required rate of return increases, Previous Check My Work 3:54 PM 5/3/2022 dy insert prt sc f8 91 backspa & 7. 4. 5.
Exercise 12A-6 (Algo) Basic Present Value Concepts [LO12-7] The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr. Ormsby won the week's grand prize totaling $1.34 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $67,000 each. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: 1. If Mr. Ormsby can invest money at a 9% rate of return, what is the present value of his winnings? (Enter your answer in dollars and not in millions of dollars.) Present value
Assume a merchandising company provides the following information from its master budget for the month of May: Sales $ 121,000 $ 97,000 Cost of goods sold Selling and administrative expenses $ 31,000 Accounts receivable, May 1st $ 17,000 Accounts receivable, May 31st $ 24,500 If all of the company's sales are on account, what is the amount of cash collections from customers included in the cash budget for May?
None

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

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