What is the estimated amount available for preferred claims and unsecured creditors out of assets pledged with fully secured cre
Q: Required: 1. Prepare the entry for the preceding transaction 2. Based on the result of your audit,…
A: Bond sinking fund: Bonds sinking funds are the restricted funds that were set aside for the purpose…
Q: Maymay Company trial balance has the following selected accounts: Cash (includes P100,000 in bond…
A: Concept : Current assets Current assets means the assets which are…
Q: ABC Corporation is a financially distressed corporation with the following financial information on…
A: Estimated Recovery Percentage For calculating the estimated recovery percentage to taken up the…
Q: 2. Edwards Company began business in February of 2021. During the year, Edwards purchased the three…
A: Based on the prevailing market fair value and the cost of securities, the unrealized profit/loss in…
Q: 1. Use the following information for the next three questions: On January 1, 20x1, ABC Co. acquired…
A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: Prepare the journal entries that were recorded by Church to record the sale of the investment and…
A: Working: Calculation of cash received on sale of investment: Carrying…
Q: The balance sheets for Sports Unlimited for 2021 and 2020 are provided below.SPORTS UNLIMITED…
A: The vertical analysis is as follows: The result will be:
Q: The following information is also available: 1. Current assets include cash P3,800, accounts…
A: SOLUTION- LIABILITIES ARE LEGALLY BINDING OBLIGATIONS THAT ARE PAYABLE TO ANOTHER PERSON AND…
Q: The following selected account balances were taken from the balance sheet of Quitting Corp. as of…
A: Before paying any amount to the unsecured creditors all the dues to the fully secured are paid out…
Q: Kern Company purchased bonds with a face amount of €400,000. Kern purchased the bonds at 397,000 and…
A: Answer Cost of Investment include cost of Investment plus transaction cost like brokerage,…
Q: General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the…
A: Answer:- Bond meaning:- Bonds basically allow an organization to raise money and meet the…
Q: Required” a) “Prepare a Consolidated…
A: The Consolidated Balance Sheet stands as a financial document that amalgamates the assets,…
Q: The financial statements of the company for the past two years are summarised below: Particulars…
A: The objective of the question is to calculate the following ratios for the years 2020 and 2021:…
Q: compute for the total amount of items that meet the definition of financial asse
A: Financial assets refer to those liquid assets of the company on which company have ownership right…
Q: At December 31, 2020 the following balances existed on the books of Kingsley Ltd.: Bonds Payable…
A: If the carrying value of the bonds is more than the redemption value, then there will be gain on…
Q: The Murdock Corporation reported the following balance sheet data for 2024 and 2023: 2024 2023…
A: The question is based on the concept of Cash Flow Statement.Statement of cash flows :It is the…
Q: Using the data given below, compute for the total amount of items that meet the definition of…
A: Financial Assets means: Cash Investment in Equity instruments Right to receive cash or any…
Q: The following information relates to non-current investments that Dragon Company placed in trust as…
A: Non-current investments are the long-term asset of the company for which the full value will not be…
Q: MW Company had the following activities in 2019 issuance of bonds OMR65000 , Bank loan repaid…
A: Cash from financing activities includes cash from Loans taken, Proceeds from the issue of shares and…
Q: Below is the Statement of Financial Position for Rafah Islamic Bank: RAFAH ISLAMIC BANK STATEMENT OF…
A: Zakat Payment It is an important part in Islamic culture to pay portion of income which are donated…
Q: Prepare the Statement of Financial Position as of 31 December 2019, for TT Resources Berhad. Account…
A: Balance sheet is also known as the statement of financial position. It shows the assets, liabilities…
Q: The following list of balances obtained from Agro Trading as at 31 July 2020. PARTICULARS RM Cash in…
A: Balance sheet represents the financial position of the company by showing assets owned and…
Q: The following information relates to non-current investments placed in trust by XX Company. This…
A: The year-end balance for the bond sinking fund is the sum of its beginning balance plus any…
Q: General Investment Co. (GIC) purchased bonds on January 1, 2021. GIC's accountant has projected the…
A: Answer:- Bond meaning:- Bond basically allows an organization to raise money and meet the…
Q: During Year 1, Anthony Company purchased debt securities and holds the securities as…
A: The loss on the securities that will appear on Anthony's balance sheet as a component of…
Q: Kiley Corporation had these transactions during 2025. Analyze the transactions and indicate whether…
A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…
Q: Rogers Corporation carries an account in its general ledger called Investments, which contained the…
A: Available for sale securities are the securities purchased with an intent to sell before their…
Q: On January 1, 2021, PHILIPPINE COMPANY acquired 5-year, 15%, $8,000,000 H-bonds. The investments…
A: Given data: Principal amount = $8,000,000 Annual Coupon = 15% Market rate = 14%
Q: range Company’s ledger revealed the following account balances as of December 31, 2020: Unamortized…
A: Intangible assets: Intangible assets are the long-term assets having no physical existence. However,…
Q: Assume that the following balance sheets are stated at book value. The fair market value of James's…
A: Goodwill = Purchase consideration - Net assets Net Assets = ( Total current assets + Total fixed…
Q: Following are selected transactions in chronological order of Bayombong Company and its trustee in…
A: Sinking Fund: It is a fund containing money reserved to pay off a debt or bond.
Q: Requirements: 1. How much is the total assets? 2. How much is the total liabilities? 3. How much is…
A: In order to find the required answers, we need to prepare the income statement, statement of…
Q: Ruben Company purchased $100,000 of Evans Company bonds at 100. Ruben later sold the bonds for…
A: (1) Debit what comes in, Credit what goes out.(2) Debit all expenses and losses, Credit all incomes…
The following selected account balances were taken from the
Trading Securities P 300,000
Inventories 110,000
Land 150,000
Building 400,000
Additional information:
• Trading Securities have a present market value of P320,000. These securities have been pledged to secure notes payable of P280,000.
• The estimated worth of inventories is P70,000. However, inventories with a book value of P50,000 have been pledged to secure notes payable of P60,000. The realizable value of the inventories pledged is estimated to be P40,000.
• Land and building are estimated to have a total realizable value of P450,000. This property is pledged to secure the mortgage payable of P250,000. 18.
What is the estimated amount available for preferred claims and unsecured creditors out of assets pledged with fully secured creditors?
A. 840,000
B. 770,000
C. 240,000
D. 810,000
Step by step
Solved in 2 steps with 1 images
- The following selected account balances were taken from the balance sheet of Quitting Corp. as of December 31, 2020, immediately before the take over of the trustee: Marketable securities P300,000 Inventories 110,000 Land 150,000 Building 400,000 Additional information: • Marketable securities have present market value of P320,000. These securities have been pledged to secure notes payable of P280,000. • The estimated worth of inventories is P70,000. However, inventories with book value of P50,000 have been pledged to secure notes payable of P60,000. The realizable value of the inventories pledged is estimated to be P40,000. • Land and building are estimated to have a total realizable value of P450,000. This property is pledged to secure the mortgage payable of P250,000. What is the estimated amount available for preferred claims and unsecured creditors out of the assets pledged with fully secured creditors?a. P240,000b. P840,000c. P770,000Present the solution!Please answer it in a good accounting form. Thank you! The following selected account balances were taken from the balance sheet of Quitting Corp. as of December 31, 2020, immediately before the take over of the trustee:Marketable securities P300,000Inventories 110,000Land 150,000Building 400,000Additional information:• Marketable securities have present market value of P320,000. These securities have been pledged to secure notes payable of P280,000.• The estimated worth of inventories is P70,000. However, inventories with book value of P50,000 have been pledged to secure notes payable of P60,000. The realizable value of the inventories pledged is estimated to be P40,000.• Land and building are estimated to have a total realizable value of P450,000. This property is pledged to secure the mortgage payable of P250,000.What is the estimated amount available for preferred claims and unsecured creditors out of the EXCESS assets pledged with fully…
- *Inventories is 110,000 a. 240,000b. 870,000c. 300,000d. 480.000The following accounts are extracted from the books of X Inc. on December 31, 2020: Account Receivable Se0.000 Aocounts Payable e 75,000 Accumulated Dpreciation: Land Improvement 160.000 Allowance for Doubtful Accounts 26,000 Aeerued Liahilities 204.000 Bonds Payable 373,000 Hond Sinking Fund 220,000 Cash 140,000 lavestment in Stock 132.000 Common Stock 414,000 Goodwill laventory 322,000 Land 260,000 Land held for spelation 88,000 Land Improvement 700,000 Mortgage Payable 176,000 Premium on Bonds Payable 36,000 Promium on Common Stock 276,000 Prepaid Insuranee (24 months) 40,000 Retained Eamings 440,000 Supplies 16,000 Trading Securities, originally purchased at S70,000, are raded at a fair Valae of S88,000 Treasury Stock Uncamed Service Revenue ?? Based on the data above, current assets were: * $582,000 $600,000 $626,000 None of the aboveThe following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1, 2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securities that is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be held until their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costing P29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, and treasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bond retirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds…
- The following information relates to non-current investments placed in trust by XX Company. This investment is in compliance with the requirements of an issue of P4,000,000 bonds by XX. Bond sinking fund, Jan. 1, 2019 P2,250,000 Additional investments to the fund during 2019 450,000 Dividend revenue on equity securities investments 75,000 Interest revenue on debt securities investments 150,000 Administration costs 25,000 What amount should XX Company in its December 31, 2019 statement of financial position related to its non-current investments for bond sinking fund?On January 1, 2018, an entity purchased bonds with face amount of P5,000,000. The entity paid P4,500,000 plus transaction cost of P168,600. The bonds mature on December 31, 2020 and pay 6% interest annually on December 31 of each year with 8% effective yield. The bonds were quoted at 105 on December 31, 2018 and 110 on December 31, 2019.The business model in managing the financial asset is to collect contractual cash flows that are solely payments of principal and interest and also to sell the bonds in the open market. The entity has not elected the fair value option. On December 31, 2019, the entity changed its business model to collect only contractual cash flows. On December 31, 2020, the bonds are quoted at 115 and the market interest rate is 10%. find the following: 1. What amount of unrealized gain should be reported as component of OCI in the statement of comprehensive income for 2018? 2. What amount of unrealized gain should be reported as component of OCI in the statement of…The following information relates to non-current investments that Dragon Company placed in trust as required by underwriter of its bonds: Bond sinking fund balance, January 1, 2018, P2,000,000; Additional investment during 2018, P500,000; Interest revenue, P20,000; Administrative costs, P15,000,Carrying value of bonds payable, P3,000,000. What amount should Dragon Company report in its December 31, 2018 balance sheet related to its non-current investment for bond sinking fund requirements?
- Cagney Company sold $248,000 of bonds on January 1, 2024. A portion of the amortization table follows. Period CashPayment(Credit) InterestExpense(Debit) Discounton BondsPayable(Credit) Discounton BondsPayableBalance CarryingValue At issue $8,000 $240,000 06/30/24 $12,000 $12,800 $800 7,200 240,800 12/31/24 12,000 12,800 800 6,400 241,600 06/30/25 ? ? ? ? ? Required: 1. Determine the stated interest rate on these bonds. Round your answer to the nearest whole number.fill in the blank 1 % 2. Calculate the interest expense and the discount amortization for the interest period ending on June 30, 2025. Interest expense $fill in the blank 2 Discount amortization $fill in the blank 3 3. Calculate the liability balance shown on a balance sheet after the interest payment is recorded on June 30, 2025.$fill in the blank 4During Year 1, Anthony Company purchased debt securities and holds the securities as available-for-sale. Pertinent data are as follows: Security A B C Cost $20,000 40,000 90,000 $150,000 O $11,000. O $1,000. O $3,000. O $13,000. Fair value at 12/31/Y1 $17,000 30,000 92,000 $139,000 Anthony appropriately carries these securities at fair value, and the decline in value of Security B is attributed to credit loss. The change in value of securities A and C is considered to be due to factors other than credit loss. The amount of loss on these securities that will appear on Anthony's balance sheet as a component of "Accumulated other comprehensive income" at 12/31/Y1 should beOn January 1, 2023 AAA Company acquired BBB Company 10%, P600,000 bonds for P621,300. The bonds which pays interest on every June 30 and December 31. The bond will mature on January 1, 2028 and were purchased to yield 9%. The business model of the AAA Company in managing investment is to hold the asset in order to collect the contractual cash flows. 1. how much is the interest income in 2023 2.how much is the carrying amount of the bonds at december 31,2023 3.how much is the unamortized portion of premium on december 31, 2024 4. how much cash to be debited on december 31,2024