Question
In: Accounting
Ulting Ltd. owes Sleazy Finance Co. $150,000 for a 3-year, 10% note, issued at par and...
Ulting Ltd. owes Sleazy Finance Co. $150,000 for a 3-year, 10% note, issued at par and due on December 31, 2021. Interest was paid annually each December 31. Ulting Ltd. is now in financial difficulties, so Sleazy Finance Co. agrees to extend the note’s maturity date to December 31, 2023, reduce the principal to $130,000, and reduce the interest rate to 9%. The market rate is currently 5%. Both companies follow IFRS. Required:
Prepare all related journal entries for Ulting Ltd. for 2021, 2022, and 2023
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Ahmed Co. owes SAR 433,000 to Merando Inc. The debt is a 10-year, 11% note. Because...
Ahmed Co. owes SAR 433,000 to Merando Inc. The debt is a
10-year, 11% note. Because Ahmed Co. is in financial trouble,
Merando Inc. agrees to accept some property and cancel the entire
debt. The property has a book value of SAR 150,000 and a fair value
of SAR 230,000. Prepare the journal entry on Ahmed 's books for
debt settlement.
* no hand writing or pics
* course name is Financial accounting
* be sure of answers
In February 2019 a corporation issued a 10,000,000, 10 year, 3% installment note to purchase a...
In February 2019 a corporation issued a 10,000,000, 10 year, 3%
installment note to purchase a building. ( Ricky's Store August
2019). The note had payments of $2,500,000 due on February 20 of
each year for the next 15 years.
1) Prepare the adjusting journal entry to accrue interest on
November 20, 2019.
2) Show the correct account(s) and correct amount(s) and where
it will appear on a multiple-step income statement for the year
ending November 20, 2019.
3) Show...
In February 2019 a corporation issued a 10,000,000, 10 year, 3% installment note to purchase a...
In February 2019 a corporation issued a 10,000,000, 10 year, 3%
installment note to purchase a building. ( Ricky's Store August
2019). The note had payments of $2,500,000 due on February 20 of
each year for the next 15 years.
1) Prepare the adjusting journal entry to accrue interest on
November 20, 2019.
2) Show the correct account(s) and correct amount(s) and where
it will appear on a multiple-step income statement for the year
ending November 20, 2019.
3) Show...
NA Co. issued note receivable in January, 2017. The terms of the note are a two-year,...
NA Co. issued note receivable in January, 2017. The terms of the
note are a two-year, $100,000, 10% interest rate. Assuming the
market interest rate is 8% per annum and NA Co. use the effective
interest method for an amortization, how much would NA Co. amortize
discount (or premium) on the note receivable on the end of 2017?
(The present value of $1 for one and two period at 8% is 0.92593
and 0.85734. The present value of $1 for...
On January 2, 2016, Revolution Co. issued 150,000 new shares of its $1 par value common...
On January 2, 2016, Revolution Co. issued 150,000 new shares of
its $1 par value common stock valued at $16 a share for all of
Founders, Inc.’s outstanding common shares. The fair value and book
value of Founders’ identifiable assets and liabilities were the
same. Summarized balance sheet information for both companies just
before the acquisition on January 2, 2016, is as follows:
Revolution
Founders
Cash
$ 250,000
$ 180,000
Inventories
$ 320,000.00
$ 600,000.00
Other Current Assets
$ 600,000.00...
On January 2, 2016, Revolution Co. issued 150,000 new shares of its $1 par value common...
On January 2, 2016, Revolution Co. issued 150,000 new shares of
its $1 par value common stock valued at $16 a share for all of
Founders, Inc.’s outstanding common shares. The fair value and book
value of Founders’ identifiable assets and liabilities were the
same. Summarized balance sheet information for both companies just
before the acquisition on January 2, 2016, is as follows:
Revolution
Founders
Cash
$ 250,000
$ 180,000
Inventories
320,000
600,000
Other Current Assets
600,000
400,000
Land
350,000...
Skysong Corp. owes $280,000 to Concord Trust. The debt is a 10-year, 12% note due December...
Skysong Corp. owes $280,000 to Concord Trust. The debt is a
10-year, 12% note due December 31, 2020. Because Skysong Corp. is
in financial trouble, Concord Trust agrees to extend the maturity
date to December 31, 2022, reduce the principal to $225,000, and
reduce the interest rate to 6%, payable annually on December
31.
(b)Prepare the journal entries on Concord
Trust’s books on December 31, 2020, 2021, 2022.
Swifty Corp. owes $269,000 to Nash Trust. The debt is a 10-year, 12% note due December...
Swifty Corp. owes $269,000 to Nash Trust. The debt is a 10-year,
12% note due December 31, 2020. Because Swifty Corp. is in
financial trouble, Nash Trust agrees to extend the maturity date to
December 31, 2022, reduce the principal to $215,000, and reduce the
interest rate to 7%, payable annually on December 31.
(a)
Prepare the journal entries on Swifty’s books on December 31,
2020, 2021, 2022.
(b)
Prepare the journal entries on Nash Trust’s books on December
31,...
On January 1, 2019, Rubin Co. issued a 3-year non-interest-bearing note of $250,000 in exchange for...
On January 1, 2019, Rubin Co. issued a 3-year
non-interest-bearing note of $250,000 in exchange for a custom-made
machine for which there is no obvious market value. The appropriate
discount rate is 5%. Prepare the journal entry to purchase this
machine.
Looking at the transaction above, how much interest expense
would be recorded in 2019 by Rubin Co.?
At the beginning of the year, the company issued $500,000 10-year bonds at par. The holder...
At the beginning of the year, the company issued $500,000
10-year bonds at par. The holder of the bonds can convert $10,000
in bonds into cash based on the performance of the company.
Specifically, each $10,000 bond can be converted into cash at the
rate of 10% of net income. Draft financial statements reveal net
income of $250,000. prepare a report to the board of
directors that discusses the recognition, measurement, and
presentation of the financial instruments issued.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Parallel Arrays This question is in MindTap Cengage Summary In this lab, you use what you...
- 5. You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella...
- JAVA Write a test program that prompts the user to enter a series of integers and...
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
- In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted...
ADVERTISEMENT