At December 31, 2021 the following balances existed on the books of Bulaga Corporation: Bonds Payable, P1,840,000 Interest Payable, P50,000 Discount on bonds payable.P31,468
Q: Bear, Inc. estimates its sales at 200,000 units in the first quarter and that sales will increase by…
A: Production for any specific period = Sales units + Ending finished goods - Beginning finished goods
Q: Mr. Smith is purchasing a $90000 hoyse. The down payment is 20% of the price of the hous He is given…
A: The question is based on the concept of Financial Management.
Q: 69 Development expenditures Group of answer choices Are always capitalized as intangible asset Are…
A: solution introduction as per the relevant accounting standard related to intangible asset research…
Q: What is life-cycle and/or full-cost accounting? IS THERE A DIFFERENCE?
A: In this question, we have to tell about life-cycle costing and full cost accounting, whether these…
Q: Insider Company has two divisions, J and K. During March, the contribution margin in J was $30,000.…
A: Segment margin equals contribution margin less traceable fixed expenses
Q: The figure shows the total product curve for the Fruit Bowl food truck. When labor increases from 1…
A: Basic Concept of relationship between labor and production.
Q: Denver, Incorporated, has sales of $27 million, total assets of $24.9 million, and total debt of…
A: Formula used: Profit margin = Net Income / net sales value
Q: g skills regarding screening and preference methods to decide on the best system for the company.…
A: Introduction: The time value of money states that the value of today's dollar in more than the value…
Q: Explain how a retailing firm would determine the cost of goods sold during an accounting period.
A: Retailing firm is an entity that is engaged in trading of goods at retail level. It is an entity…
Q: Problems 827 Wal-Mart Stores, Inc. Target Corporation Total assets Total stockholders' equity…
A: Solution:- a)1-Calculation of Current ratio as follows under:-
Q: Which one of the following represents the highest effective interest rate per yea
A: Here we will have to convert each option to its EAR i.e. effective annual rate. The compounding…
Q: Mahindra Company transfers a product from division K to division J. Variable cost of this product is…
A: Transfer price = Actual variable cost + (130% on variable cost)
Q: July 2 Purchased 1500 Gizmos from T Co. @ $3 eạ for cash July 5 Purchased 2000 Gizmos from Z Co @ $3…
A: What is meant by Journal Entries? It is the first step to record the financial transactions in the…
Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…
A: solution introduction This problem is related to the compound interest The payment is made at the…
Q: Use this information for Bonny Company to answer the question that follows. The standard costs and…
A: Except for direct materials and direct labor, factory overhead refers to all production costs. The…
Q: Apex Company sells a product for $220 per unit. The variable cost is $170 per unit, and fixed costs…
A: The Break-even point is the point where the company does not earn profit nor does it incur a loss in…
Q: Carla Vista Company is considering two different, mutually exclusive capital expenditure proposals.…
A: Net present value = Present value of cash inflow-Present value of cash outflow Profitablity index =…
Q: de Incorporated declared and paid dividends of P250,000 in 2021 and reported net income of…
A: Tan Beda acquired 10% voting shares in Taint Dude . 10% is very low amount for controlling…
Q: A loan of $11,300 is to be amortized with quarterly payments over 6 years. If the interest on the…
A: Time value of money is the concept where the value of money today is higher than the value of money…
Q: Over and Under, Inc. manufactures weaving looms. Before the period began, the company prepared the…
A: Computation of overhead cost - direct labour Variable manufacturing overhead cos / direct labour…
Q: Feinan Sports, Inc., manufactures sporting equipment, including weight-lifting gloves. A national…
A: Relevant Costing: Relevant cost is the cost for the special orders. The Relevant Cost: All the…
Q: Entries for equlty investments: 20%-50% ownership At a total cost of $1,104,000, Herrera Corporation…
A: The investment into other company by acquisition of shares is recorded as current asset into the…
Q: Required: Prepare a cost of goods manufactured statement for the year ended June 30, 2010.
A: Cost of goods sold refers to a statement or schedule which shows the total production costs for a…
Q: Scottso Division has the following results for the year: * $1,080,000 Revenues Variable expenses…
A: Net income = $1,080,000 - $440,000 - $400,000 = $240,000
Q: Selected current year-end financial statements of GENESIS Corporation follow. All sales were on…
A: Debt-to-equity ratio is a solvency ratio which measures how much equity is available against long…
Q: Estimates of future cash flows of a property, plant and equipment shall include estimated future…
A: Given statements Statement 1: Estimates of future cash flows of a property, plant and equipment…
Q: kong operates a boutique hotel in a resort area near Chenang, Langkawi. Depreciation on the hotel is…
A: This question relates to CVP analysis. Break Even Point is a point of operation at which there is no…
Q: The following items appear on the balance sheet of a company with a one year operating cycle.…
A: Current Liability- These are those liabilities which are required to be paid within a period of 12…
Q: What types of Accounting are there
A: There are following types of accounting: 1. Financial accounting 2. management accounting 3. tax…
Q: What is the total operating cost per acre? O $2.46 $76.81 $79.94 $120.66
A: Fixed cost Fixed cost refers to the cost that is independent of the changes in production. In other…
Q: The purchase of treasury share does not affect Group of answer choices total assets. the amount of…
A: The treasury stock includes the shares that are repurchased from the shareholders of the business.
Q: Cameron Co. established a $182 petty cash fund on January 1, 2020. One week later, on January 8, the…
A: Petty Cash Fund: It is common for small businesses to keep a modest amount of money on hand (for…
Q: Q2. You are a managerial accountant who has become privy to information about a takeover bid by your…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The COVID-24 Food Kitchen provides hot meals to homeless and low-income individuals and families. It…
A: Non-profit organization are those business entities who work for the betterment of the society by…
Q: inception is $100,000. Assume that the present value of lease payments discounted at a 10% interest…
A: An operating lease tends to have a shorter duration than a capital lease, and the lessee does not…
Q: Cash, Php19.000; Prepaid Rent, Php500, Equipment. Php5,000 and Accounts Payable Php2,000. By the end…
A: Formula: Net income =Total revenues - Total Expenses
Q: create a sources and use of funds statement with the following information Startup cost: $900…
A: The fund flow statement is prepared to define the sources of funds and the application of funds. The…
Q: _______ This statement reveals the financial position of the firm.
A: A balance sheet is a financial statement that displays a corporation's assets, liabilities, and…
Q: San Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct…
A: For evaluation of Make or Buy decision, relevant costs of making the component will be compared with…
Q: Minnesota Company has no beginning and ending inventories, and has the following data about its only…
A: Any special order in the capacity of the business do not affect the fixed cost. So accepting special…
Q: The following information has been gathered for a company wanting to adopt the EOQ method: Annual…
A: EOQ=2×Annual Demand×Ordering cost per purchase orderAnnual unit carrying cost
Q: 26 A probable loss contingency is reasonably estimated within a range of possible amounts. No…
A: A per IRS, the companies has to convervatism principle where when it comes to losses the estimation…
Q: Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has…
A: Journal is the book of original entry in which all the financial transactions of the business are…
Q: Cobb Co. can further process Product X to produce Product Y. Product X is currently selling for $30…
A: Using differential costing we will take decisions for a new proposal and it will compare additional…
Q: A. Paid $22,000 cash on bonds payable. B. Collected $12,600 cash for a note receivable. C. Declared…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Preference decisions rank alternatives emerging from the screening process to help make the final…
A: Preference decision means selecting the best alternative from the competitive courses of action/…
Q: 22) Maker Company purchased a varnishing machine for P450,000 on January 1. 2023. The company…
A: As Given on January 1, 2023, the manufacturer firm acquired a varnishing equipment for P 450.000. In…
Q: pany transfe Variable cost of this product is anticipated to be P40 a unit and total fixed costs…
A: The costs incurred in the production are classified as variable cost and fixed cost. The variable…
Q: Mary spent $21,500 for an executive development course at the Harvard Business School (including…
A: As an employee, you can claim your work-related training as a miscellaneous, itemized deduction,…
Q: ERCISE 6-12 Target Profit and Break-Even Analysis; Margin of Safety; CM Ratio 6, LO7] enlo Company…
A: Disclaimer : “Since you have posted a question with multiple sub-parts, we will solve first three…
19
At December 31, 2021 the following balances existed on the books of Bulaga Corporation:
Bonds Payable, P1,840,000
Interest Payable, P50,000
Discount on bonds payable.P31,468
If the bonds are retired on January 1, 2022, for P2,040,000, what will Bulaga report as a loss on extinguishment?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018, the balance in the Discount on Bonds Payable account is $5,000. This years balance sheet will show a net liability of ________. A. $200,000 B. $180,000 C. $195,000 D. $205,000Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.
- At December 31, 2020 the following balances existed on the books of Kingsley Ltd.: Bonds Payable $1,840,000 Interest Payable 50,000 If the bonds are retired on January 1, 2021, for $2,040,000, what will the company report as a loss on redemption? Select one: a. $150,000 O b. $100,000 O c. $200,000 d. $250,000On January 1, 2019, Assarain Concrete issued bonds with a face value of OMR 100,000 at 97, due in January 1, 2029. On January 1, 2025, the entire issue was retired at 100 and cancelled. How much is the gain or loss from retirement of bonds? a. Loss RO 900 b. Loss RO 1,200 c. Gain RO 1,200 d. Gain RO 900Cullumber Corporation issues $512,000 of 9%, 5-year bonds on January 1, 2022, at 105. Assuming that the straight-line method is used to amortize the premium, what is the total amount of interest expense for 2022
- On January 1, 2021, Aruba Company reported bonds payable of P5,000,000 and a related unamortized discount of P275,000. On that day, the entity retired bonds of 2,500,000 of the outstanding bonds at face amount plus a call premium of P80,000. How much is the loss on the early retirement of bonds in 2021?On April 30, 2021, one year before maturity, a Corporation retired $500,000 of 6% bonds payable at 102. The book value of the bonds on April 30 was $492,500. Bond interest was last paid on April 30, 2021. What is the gain or loss on the retirement of the bonds? A. $17,500 loss B. $7,500 loss C. $17,500 gain D. $7,500 gainCagney 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 4
- Ma2. on January 1 2020, marin incorporated redeemed bonds prior to their maturity date of january 1, 2021. the face value of the bonds was $510,000, and the redemption was performed at 97. as at the redemption date, the unamortized premium was $8,780. prepare the corporation's journal entry to record the redemption of the bonds.Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and paid interest annually on January 1. The bonds were sold at 98. At December 31, 2022, $12,480 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2022. (Enter account name only and do not provide descriptive information.) Crane ElectricBalance Sheet (Partial)choose the accounting period select an opening section name enter a balance sheet item $enter a dollar amount select between addition and deduction : enter a balance sheet item enter a dollar amount $enter a subtotal of the two previous amountsAt December 31, 2025, Cullumber Corporation has the following account balances: Bonds payable, due January 1, 2034 Discount on bonds payable Interest payable $1,400,000 76,000 71,000 Show how the above accounts should be presented on the December 31, 2025, balance sheet, including the proper classific CULLUMBER CORPORATION Balance Sheet (Partial) LA
