Suspect Company issued pay interest semiannually
Q: PROBLEM I - UPSTREAM AND DOWNSTREAM SALES OF INVENTORY AND FIXED ASSETS On January 1, 2014, P…
A: In consolidation of financial statements, inter company inventory transfered at above the cost of…
Q: How many year and how many days
A: The formula for calculation of future value is as under FV = P (1+ RT) P= Principal R = Rate of…
Q: Acquisition Cost On January 1, 2017, Ruby Company purchased a piece of equipment with a list price…
A: Acquisition cost of equipment:— It is the purchase cost of equipment less discount plus any capital…
Q: DO IT! 13.1a (LO 1), C Indicate whether each of the following statements is true or false. If false,…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: If Kevin works off the clock, then he will sacrifice family time and responsibilities. This is an…
A: Answer:- Ethical reasoning meaning:- Ethical reasoning is a sort of critical thinking that involves…
Q: What is reformatting in Restating Foreign Financial Statements to U.S. GAAP? Discuss it.
A: Introduction: The Generally Accepted Accounting Principles (GAAP or US GAAP) are a set of widely…
Q: Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per…
A: Introduction: The concept of contribution margin can be tailored to individual items, product lines,…
Q: Major medical complexes and their service providers continue to move toward advanced health…
A: Depreciation- Depreciation is the term used in accounting to describe how an asset's value…
Q: Machinery was purchased on January 1 for $52,000. The machinery has an estimated life of 7 years and…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: What are the characteristics and importance of the budget?
A: In the context of the given question, we are required to explain the characteristics and importance…
Q: Question 5 Witherspoon Inc. has compiled the following data in order to put together their first…
A: As per the given information: Sales (units)January - 55,000February - 48,000March - 41,000April -…
Q: The Stake Technology Inc. company has the following purchases and sales during the year ended…
A: Perpetual inventory system is that inventory system under which all transactions related to purchase…
Q: Highland Company produces a lightweight backpack that is popular with college students. Standard…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: 4. PV ratio 5. The number of clients needed to break-even 6. The number of clients needed if Parkway…
A: CVP analysis is a method of management accounting that shows the impact that varying levels of costs…
Q: 2. A retailer purchased repair equipment for RM 36,000. If the estimated life of the equipment is 12…
A: Depreciation is the outlay which is reported in the books to report the regular wear and tear on an…
Q: A RWB Inc each will pay a dividend of $3.65 next year. The growth rate in dividends for all three…
A: Formula to calculate price of a share. P = D1 / (Ko - g) Where, P = Price D1 = Dividend for next…
Q: Jan7,2018 business purchased inventory $3550 from Caroline enterprise the money will be paid in…
A: All the transactions (known as events) are to recorded in the books of accounts. The entries are…
Q: Ina Corp. sold equipment costing P1,200,000 for P2,500,000. Old equipment was accepted as down…
A: Here discuss about the details of realized gross profit which are incurred to the sale of the…
Q: a. How much would Phoebe have to invest today, in one lump sum, to end up with $45,000 in seven…
A: Time Value of Money (TVM) concept is used to find out the Present Value or Future Value of the given…
Q: A company bought land one year prior to start-up for 100,000$. Total capital investment spent at the…
A: Price is that amount which is paid to buy any product or service. In another word, the price is the…
Q: Instructions: 1. Prepare the journal entry at the date of the bond purchase. 2. Prepare the first 3…
A: Bond :— A bond is loan from an investor to a borrower such as a company or government. It's…
Q: If a fixed asset, such as a computer, were purchased on January 1st for $2,482 with an estimated…
A: Depreciation is charged on the depreciable fixed assets based on their useful life. Salvage value…
Q: Presented below is information related to copyrights owned by Fielding Company at December 31, 2020.…
A: 1) Loss on Impairment Dr. $1,430,000 To Copyrights A/c $1,430,000 (Being…
Q: Ruby company produces a chair that requires 6 yds. of material per unit. The standard price of one…
A: Variance is an important concept in accounting. It refers to the difference between a budgeted or a…
Q: QUESTION 1 Ginobili has forecast sales to be $120100 in February, $151200 in March, $162700 in…
A: Budgeted cash receipts refer to the cash that is received as cash and expected to collect on the…
Q: he Pacific Division of Cullumber Industries reported the following data for the current year. Sales…
A: Return on investment is one of the profitability ratio which is being used in business. This shows…
Q: What is the effect of an entry to record the purchase of inventory on account under the perpetual…
A: Under the perpetual inventory system, purchases are directly debited to the "Inventory account". And…
Q: Determine the second-year depreciation using the straight-line method.
A: Depreciation is a periodical expenses charged to the profit and loss account over the asset life.…
Q: On December 31, Strike Company traded in one of its batting cages for another one that has a cost of…
A: Introduction: A transaction is a commercial occurrence that results in a monetary impact on the…
Q: Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method.
A: Organizations follow different types of inventory accounting based on the industry and the products…
Q: Old Victrola, Inc., produces top-quality stereos and uses process costing. The manufacture of…
A: Introduction: Process costing is used when manufacturing vast quantities of identical commodities…
Q: Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In…
A:
Q: The following are comparative balance sheets for Concord Company. Assets Cash Accounts receivable…
A: Introduction: A cash flow statement is one of the financial statements issued by a company that…
Q: st Company uses a normal, process costing system to determine product cost. The company es the…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: On January 1, 2012, Horizon Group sold property carried in inventory at a cost of P1,470,000 for…
A: installment method is method of revenue recognition in which gross profit is deffered until the…
Q: On June 1, 2022, City Car Sales sells a new car costing P4,726,400 for P6,804,000. A used car is…
A: According to the given question, we are required to compute the net income for City Car Sales. Net…
Q: During Year 1, China Enterprises experienced the following events. (1) Earned $13,400 of revenue on…
A: We will use the concept of accounting equation here. The accounting equation states that a company’s…
Q: output-specifically, to 3. Assign costs to the department's the units transferred out and to the…
A: In this Case, the company is using weighted average process costing and it has two production…
Q: Cullumber Industries Inc. manufactures dorm furniture in separate processes. In each process,…
A: The total cost of producing a product, including raw materials and operating costs, is detailed in a…
Q: Thomas Martin receives an hourly wage rate of $18, with time and a half for all hours worked in…
A: Introduction: The sum of an employee's paycheck that is left over after payroll deductions such as…
Q: On July 1, 2020, Molly's Greenhouse purchased a new delivery truck for $96,000. She paid a $20,000…
A: The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This…
Q: b) Bigger n Better Pty Ltd has just acquired the Tiny Tots business. The fair value of Tiny Tots'…
A: Goodwill means the amount of purchase consideration paid by the acquirer company in excess of the…
Q: Wefald Company sold bonds with a face value of $608,000 for $562,000. The bonds have a coupon rate…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: What is causing the volatility for this company? Is anything in this statement unusual or concerning…
A: when analysing the company financials it is important to consider the every variables as it affect…
Q: Sales Cost of goods sold 2021 $ 80,000 67,500 Required A Required B Sales Cost of goods sold 2020 $…
A: Trend Percentages can be calculated using the formula: Percentage change = {(Current year amount -…
Q: [The following information applies to the questions displayed below.] Astro Company sold 22,500…
A: The contribution margin is calculated as difference between sales and variable costs. The break…
Q: During the current year ended December 31, clients paid fees in advance for accounting services…
A: Unearned Service Revenue :— It is revenue that is not accrued but cash for the revenue is received…
Q: Superior Company provided the following data for the year ended December 31 (all raw materials are…
A: The statement of cost of goods manufactured includes the total cost of goods that are manufactured…
Q: Lohan company uses plant wise predetermined overhead rate of $23.40 per direct labour hour. This…
A: Manufacturing overheads means the overheads incurred on the manufacture or production of the goods.…
Q: Required information [The following information applies to the questions displayed below.] National…
A: Allocation of cost :— It means distribution of cost to their cost object on the basis of allocation…
Step by step
Solved in 2 steps with 2 images
- 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?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?Eli Inc. issued $100,000 of 8% annual, 5-year bonds for $103,000. What is the total amount of interest expense over the life of the bonds?
- Suspect Company issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation purchased $400,000 of Suspect’s bonds from the original purchaser on January 1, 20X5, for $396,800. Prime owns 60 percent of Suspect’s voting common stock. Note: Assume using straight-line amortization of bond discount or premium. a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X5. Bond Payable Debit $400,000 Premium on Bond Debit $9,000 Interest Income Debit $______ Investment in Suspect Bond Credit $397,000 Interest Expense Credit $_________ Gain on Bond Retirement Credit $ _________ Interest Payable Debit $18,000 Interest Receivable Credit $18,000 b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the…Suspect Company issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation purchased $400,000 of Suspect's bonds from the original purchaser on December 31, 20X5, for $397,000. Prime owns 60 percent of Suspect's voting common stock. Note: Assume using straight-line amortization of bond discount or premium. Required: a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X5. b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X6. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond…Suspect Company Issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay Interest semiannually on January 1 and July 1. Prime Corporation purchased $400,000 of Suspect's bonds from the original purchaser on December 31, 20X5, for $397,000. Prime owns 60 percent of Suspect's voting common stock. Note: Assume using straight-line amortization of bond discount or premium. Required: a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership In preparing consolidated financial statements for 20X5. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) Answer is complete and correct. No Event A 1 Bonds payable Premium on bonds payable Accounts Debit Credit 400,000 9,000 Investment in Suspect Company bonds Gain on bond retirement 397,000 12,000 B 2 Interest payable Interest receivable 18,000 18,000 b. Prepare the…
- Suspect Company issued $1,110,000 of 8 percent first mortgage bonds on January 1, 20X1, at 104. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation purchased $740,000 of Suspect’s bonds from the original purchaser on December 31, 20X5, for $736,000. Prime owns 70 percent of Suspect’s voting common stock. Required:a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X5 b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X6.Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $150,000 par value, 6 percent first mortgage bonds to Stick for $156,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Note: Assume using straight-line amortization of bond discount or premium. Required: a. Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel's bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the investment in the bonds of Pretzel Corporation. Note: Enter debits before credits. Date January 1, 20X2 General Journal Debit Credit Record entry View general journal Clear entry > b. Prepare the journal entries for 20X2 for Pretzel related to the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account…On January 1, Sharp Company purchased $90,000 of Sox Company 5% bonds, at a time when the market rate was 6%. The bonds mature on December 31 in five years, and pay interest semiannually on June 30 and December 31. Sharp plans to and has the ability to hold the bonds until maturity. Assume that Sharp uses the effective interest method to amortize any premium or discount on investments in bonds. At June 30, the bonds are quoted at 98. Note: When answering the following questions, round answers to the nearest whole dollar. a. Prepare the entry for the purchase of the debt investment on January 1. Date Jan. 1 Account Name Date June 30 Investment in HTM Securities Interest Receivable To record the purchase of investment. b. Prepare the entry for the receipt of interest on June 30. Account Name Debit 83,375 0 To record the receipt of interest. Debit 0 0 0 Credit 0 x 83,375 x Credit 0 x 0x 0x c. Record the entry to adjust the investment to fair value on June 30, if applicable. Note: If a…
- On January 1, 2021, Kaye Ltd. purchased $250,000 of Danford Co.'s 4%, 8-year bonds. The market rate was 5%, and Kaye purchased the bonds for $233,681. The bonds pay interest semi-annually, on June 30 and December 31. Kaye uses the amortized cost model and the effective-interest method to recognize interest income on bond investments. Rounding values to the nearest dollar (if necessary), the entry to recognize receipt of the December 31, 2021 interest payment will include: Question 1 options: DR Cash $5,863 DR Cash $5,842 CR Interest income $5,842 CR Interest income $5,8637) ABC Company purchased $1,200,000 of 7%, 5-year bonds from XYZ, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1,249,896 at an effective interest rate of 6%, and were held as available for sale. Record the entry to purchase the bonds. 2. Prepare the following schedule for the first two periods using the effective interest method of amortization. Date Cash rec’d Interest rev Premium amortization Carrying value 1/1/21 1,249,896 7/1/21 1/1/22 1. At 12/31/21, the bonds had a fair value of $1,250,000. Prepare the journal entry for the fair value adjustment.On January 1, 2022, Gorski Corp. purchased $1,000,000, 10% bonds for $1,040,000. These bonds were to mature on January 1, 2032, but were redeemable at 101 any time after December 31, 2025. Interest was payable semiannually on July 1 and January 1. On July 1, 2027, Gorski sold all of the bonds. Bond premium was amortized on a straight-line basis. Gorski’s gain or loss in 2027 was: Select one: a. $30,000 loss b. $12,000 loss c. $10,000 gain d. $8,000 loss e. $12,000 gain