Redwood Industries owns 8% bonds with a par value of $180,000 that pay interest on July 1 and January 1. The bonds were purchased on July 1. The amount of interest accrued on September 30 (the company's quarter-end) would be
Q: ?? Financial accounting question
A: Step 1: Define Break-Even Analysis & Profit IncreaseThe Break-Even Point (BEP) is the number of…
Q: Cooper Audio Systems produces car sound systems. Estimated sales (in units) are 45,000 in April,…
A: Explanation of Sales Revenue:Sales revenue is the total amount a company earns from selling its…
Q: ??
A: Concept of Accrual Basis AccountingAccrual basis accounting records revenues when they are earned…
Q: Provide correct answer general Accounting question
A: Step 1: Define High-Low MethodThe high-low method is used to estimate variable and fixed costs from…
Q: Calculate the current book value of the machine?
A: To calculate the current book value of the machine, we'll use the straight-line depreciation…
Q: Hii expert please provide correct answer general Accounting question
A: Days sales outstanding (DSO) = (Average accounts receivable / Credit sales) x Number of days Compute…
Q: None
A: Step 1: Definition of Variable Costing MethodVariable costing is a method in which only variable…
Q: Do fast and step by step calculation with explanation for this financial accounting question
A: Step 1:a) Net Cash provided by operating activities and Net change in cash can be calculated by…
Q: Solve this financial accounting problem
A: Step 1: Define Cost of Goods Sold (COGS)The Cost of Goods Sold (COGS) represents the direct costs of…
Q: correct answer general accounting question
A: Compute the variable cost per unit using the high-low method.Variable cost per unit = (Cost of the…
Q: Using the date above
A: Concept of Gross Profit MethodThe Gross Profit Method is an estimation technique used to determine…
Q: Target leval of opereting income? Accounting
A: Step 1: Definition of Operating Leverage FactorThe operating leverage factor measures how sensitive…
Q: General accounting
A: 1.Calculate the conversion ratio: The conversion ratio is the number of shares you can receive for…
Q: Please provide problem with accounting question
A: Step 1: Definition of Net IncomeNet income is the amount a company earns after deducting all…
Q: Correct answer? ? Given general Accounting question
A: Calculation of Total Assets Total Debt Ratio = Total Debt / Total Assetsor, Total Debt = Total Asset…
Q: Yami Enterprises began the accounting period with $75,000 of merchandise, and the net cost of…
A: To calculate the cost of goods sold (COGS), we can use the following formula: COGS = Beginning…
Q: Want to this question answer general Accounting
A: Step 1: Define Dividend Payout RatioThe payout ratio stands for earnings given to owners by a firm.…
Q: On January 1, 2015, Accounts Receivable was $37,000. Sales on account for 2015 totaled $196,000. The…
A: Detailed explanation:Given:January 1, 2015, Accounts Receivable, $37,000. Sales on account for 2015,…
Q: Costing system?
A: Step 1: Calculation of overhead cost for Product V91Z under different activitiesSetting up…
Q: Financial accounting question
A: Step 1: Define Raw MaterialRaw materials inventory is the total cost of all the stock elements in…
Q: provide answer plz
A: To calculate the return on equity (ROE), we use the formula: ROE = Profit Margin × (Sales / Equity)…
Q: Please answer this question general accounting
A: Step 1: Definition of Cost of Goods Manufactured (COGM)The Cost of Goods Manufactured (COGM)…
Q: None
A: Step 1: Define Days Sales Outstanding (DSO)Days Sales Outstanding (DSO) measures the average number…
Q: Total cost of the job ? General accounting question
A: Step 1: Define Total CostThe total manufacturing cost of a product refers to different kind of…
Q: ??!!
A: Approach to solving the question:Freeform Detailed explanation: The magnitude of operating leverage…
Q: Financial Accounting
A: To calculate the accrued interest on September 30, let's break down the steps:Bond Details:Par value…
Q: Provide correct answer general Accounting question
A: Step 1: Define Total CostTotal cost is an economic factor that involves not only the initial expense…
Q: General Accounting
A: Step 1: Define Net IncomeNet income is a comprehensive indicator of profitability that shows how…
Q: General Accounting Question
A: Step 1: Define Taxable Income ReclassificationThe IRS reclassification of unreasonable compensation…
Q: Course lots using a value basis
A: Concept of Joint CostsJoint costs refer to expenses incurred in a process that benefits multiple…
Q: None
A: Here's how to calculate the total dollar amount you cleared on this investment:Calculate the total…
Q: What was the cost of goods sold for the year?
A: Explanation of Direct Materials: Direct materials are the raw materials that can be directly traced…
Q: Hy expert give me solution
A: Step 1: Definition of Net Realizable Value of Accounts ReceivableNet realizable value (NRV) of…
Q: Hii expert please provide correct answer general Accounting question
A: Step 1: Define Rate Of ReturnThe expected rate of return on a stock includes the potential capital…
Q: hello teacher plz help me this question
A: Step 1: Definition of CVP Analysis and Contribution MarginCost-Volume-Profit (CVP) Analysis: A…
Q: Answer? ? Financial accounting question
A: Step 1: Define Days Sales Outstanding (DSO)Days Sales Outstanding (DSO) measures the average number…
Q: hi expert please solve questions
A: To calculate the Return on Equity (ROE), use the formula: ROE =Net Income/Common Equity ×100…
Q: General Account
A: The cash collected from customers is calculated as follows: Cash collected from customers = Accounts…
Q: Accounting question
A: Step 1: Define Margin in Variable CostingThe Contribution Margin (CM) is the difference between…
Q: Answer? ? General Accounting
A: Step 1: Define Profit MarginThe profit margin is a financial metric that expresses a company's net…
Q: Precision Industries Incorporated is a manufacturer of electronic components. When a purchase order…
A: a. A sales order number lower than the last number.Since the sales orders are issued sequentially, a…
Q: I need answer
A: 1. When should cross-dimensional analysis replace single-focus review? Solution:Cross-dimensional…
Q: Ans ? Financial accounting question
A: Step 1: Define Rate Of ReturnThe expected rate of return on a stock will usually include two…
Q: Abc ? Accounting
A: Step 1: Definition of Break-even AnalysisBreak-even analysis helps businesses determine the point…
Q: Total manufacturing costs added during accounting question
A: Step 1: Definition of Total Manufacturing CostsTotal manufacturing costs refer to the sum of direct…
Q: Dawson manufacturing companys accounting records reflect the following inventories
A: Explanation of Cost of Goods Manufactured (COGM):Cost of Goods Manufactured (COGM) refers to the…
Q: Hello tutor please solve this question
A:
Q: Answer
A: Step 1: Definition of Contribution Margin RatioThe contribution margin ratio is the proportion of…
Q: At the end of Everest Manufacturing Ltd's first year of operations... Please answer the general…
A: Absorption costing includes both variable and fixed manufacturing costs in the cost of inventory,…
Q: Provide answer
A: Explanation of Contribution Margin Per Unit:Contribution margin per unit is the amount of money left…
General Accounting
Step by step
Solved in 2 steps
- Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What is the total amount of interest expense over the life of the bonds?On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
- Irving Inc. sold bonds with a $50,000, 10% interest, and 10-year term at $52,000. What is the total amount of interest expense over the life of the bonds?Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare adjusting entries for the end of the fiscal year December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight line method of amortization b. effective interest method of amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
- Hambelton Ltd. issued $3,750,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Price of Bond $ 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Date Opening 1 2 3 4 5 6 7 3,918,281 Interest Payment Interest…On October 1, Qilan Ltd. purchased 7% bonds with a face value of $1,000 for trading purposes, accounting for the investment at FV - NI. The bonds were priced at 1.044 to yield Qilan 6% and pay interest annually each October 1. Qilan has a December 31 year end, and at this date, the bonds' fair value was $1,055. Assuming Qilan applies IFRS, prepare Qilan's journal entries for (a) the purchase of the investment, (b) the December 31 interest accrual, and (c) the year - end fair value adjustmen Assuming Qilan applies ASPE, uses the effective interest method, and reports interest income separately, prepare Qilan's journal entries for (d) the December 31 interest accrual, and (e) the year-end fair value adjustment. Round amounts to twoHambelton Ltd. issued $4,600,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required:1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "0" wherever required.) 3.Prepare journal entries to record the issuance of the bonds, payment of…
- On January 1, 2021, Carrow Company issued 11% bonds in the face amount of P1,000,000 that mature on December 31, 2030. The bonds were issued for P886,000 to yield 12%, resulting in bond discount of P114,000. The entity used the interest method of amortizing bond discount. Interest is payable on June 30 and December 31. For the year ended December 31, 2021, what amount should be reported as bond interest expense?Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Premium Amortization Interest Interest Unamortized Net Bond Date Payment Expense Premium Liability Opening 1 2 4 7Webber Corp. issued $5,000,000 of 5% bonds on May 1 at par value. The bonds were dated January 1. The company pays interest on June 30 and December 31 each year. How much will the buyer need to pay the company in accrued interest at purchase and how much will the buyer receive in interest on June 30? Group of answer choices pay May 1 $125,000; receive June 30 $125,000 pay May 1, $0; receive June 30 $125,000 pay May 1 $125,000; receive June 30 $83,333 pay May 1 $83,333; receive June 30 $125,000
