ACME Incorporated has a $3.1 million dollar, 9% loan, annual interest payments,with RBC maturing on December 31, 2025. Due to decrease revenues caused by thepandemic, the company is experiencing solvency and cash flow issues that havenegatively impacted the its ability to make its interest and principal payments.Assume that ACME's year end is December 31, and the company reports under IFRS.On January 01, 2021, the bank agreed to extend the maturity date to 2035 (Thecurrent market rate is 10%).Required:Round interim calculations to four decimals and final answers to the nearest dollar.Conclude on the appropriate accounting treatment and show calculations to supportyour conclusion.

Present Value-Present value is the concept that states that an amount of money today is worth more…

Answered: Required: Round interim calculations to…

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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The matching principle Select one: a. Determines whether the normal balance of an account is a debit or credit b. requires that the dollar amount of debits equal the dollar amount of credits on a trial balance c. states that the revenues and related expenses should be reported in the same period d. addresses the relationship between the journal and the balance sheet
Which of the following are items which are likely to need an accrual adjustment at the year end? Select one: A. Motor vehicles B. Bank O C. Interest received O D. Sales
Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases only one column may be affected because all of the specific accounts affected by the transaction are included in that category. a. Accrued interest revenue of $30 on a note receivable. b. Determined that the Allowance for Bad Debts account balance should be decreased by $7,200 because expense during the year had been overestimated. c. Wrote off an account receivable of $2,600. d. Received cash from a customer in full payment of an account receivable of $2,500 that was paid within the 2% discount period. A Cash Discount…
(b) Prepare the journal entry required, if any, to record the adjustment from cost to net realizable value. (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 debit entry before credit entry.) Account Titles Debit Credit
After the closing entries have been journalized and posted, but prior to the next accounting period, which of the following accounts would have a balance? a. Fund Balance--Unassigned b. Appropriations c. Other Financing Uses d. Revenues
Which of the following statements is incorrect concerning the adjusted trial balance? A. THE ADJUSTED TRIAL BALANCE IS PREPARED AFTER THE ADJUSTING ENTRIES HAVE BEEN JOURNALIZED AND POST B.THE ADJUSTED TRIAL BALANCE LIST THE ACCOUNT BALANCES SEGREGATED BY ASSETS AN LIABILITIES. C. AN ADJUSTED TRIAL BALANCE PROVES THE EQUALITY OF TGE TOTAL DEBIT BALANCES ANS THE TOTAL CREDIT BALANCE IN THE LEDGER AFTER ALL ADJUSTMENT ARE MADE. D. THE ADJUSTED TRIAL BALANCE PROVIDES THE PRIMARY BASIS FOR THE PREPARATIONOF FINANCIAL STATMENTS
Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases only one column may be affected because all of the specific accounts affected by the transaction are included in that category. a. Accrued interest revenue of $30 on a note receivable. b. Paid $9,300 in cash as an advance rent payment for a short-term lease that covers the next three months. c. Recorded an adjustment at the end of the first month (in b) to show the amount of rent "used" in the month. d. Inventory was acquired on account and recorded for $4,810. Perpetual inventory is maintained. e. It was later determined…
Required information [The following information applies to the questions displayed below.] Execusmart Consultants has provided business consulting services for several years. The company has been using the percentage of credit sales method to estimate bad debts but switched at the end of the first quarter this year to the aging of accounts receivable method. The company entered into the following partial list of transactions. a. During January, the company provided services for $270,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $135,000 of accounts receivable. d. On February 15, the company wrote off a $500 account receivable. e. During February, the company provided services for $220,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $14,000 to an employee, who signed a 9% note due in 3 months. h. On March 15, the…
Multiple choice: 1. The steps in the journalazing process include all of the following EXCEPT A. Enter the balance B. Enter the debit C. Enter the date D. Enter the credit 2. The simplest form of journal is one with A. Four columns B. Three columns C. Two columns D. One column
compare the current year balance in prepaid insurance and insurance expense with the prior year's balances considering any changes in operations. You said that you would examine reconciliation of the account and segregation of duties, can you give an example as to why?
If the top five accounts listed on a firm’s trial balance all represent asset accounts, then which of the following statements is MOST likely accurate? Select answer from the options below 1.The values for all five accounts will appear in the debit column. 2.All five accounts should instead be listed at the bottom of the trial balance. 3.The values for all five accounts will appear in the credit column. 4.Some of the values for these accounts will appear in the debit column, while others will appear in the credit column.
Please correct answer and don't use hend raiting

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Required: Round interim calculations to four decimals and final answers to the nearest dollar. Conclude on the appropriate accounting treatment and show calculations to support your conclusion.