On October 15, 2016, Koala, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $60. [We are assuming that the 2020 coupon has just been redeemed.]

• Initially, the bond was sold for the premium price of $1,025.

• On October 15, 2020, this bond was selling for only $975.

• The market rate of interest for a riskless corporate bond, of this maturity, was 4.5% on October 15, 2016, which reflects market expectations about future rates of inflation.

• The market rate of interest for a riskless corporate bond, of this maturity, was 4.0% on October 15, 2020, which reflects market expectations about future rates of inflation.

Question- What was the current yield on this bond on October 15, 2020?  [To 2 decimal place.]

ABC, Inc. acquired 15% of EFG Corporation on January 1, 2019, for $125,000 when the book value of EFG's net assets was $950,000. During 2019, EFG reported net income of $530,000 and paid dividends of $40,000. On January 1, 2020, ABC purchased an additional 15% of EFG for $550,000. Any excess of cost over book value was attributable to goodwill (No amortization). On that same date, ABC changed to the equity method. During 2020, EFG reported net income of $730,000 and paid dividends of $90,000.

Required:

A. What type and amount of income(s) did ABC record from EFG in 2019?

B. What type and amount of income(s) did ABC record from EFG in 2020?

C. What was the balance in the Equity Investment in EFG account at December 31, 2020?

The following information was taken from the accounting
records of CJTR Company as of December 31, 2020:

Accounts Payable ..........       ?
Accounts Receivable .......   $44,000
Building ..................   $68,000
Cash ......................   $17,000
Common Stock ..............   $56,000
Cost of Goods Sold ........   $41,000
Dividends .................      ?
Equipment .................   $79,000
Interest Revenue ..........   $40,000
Inventory .................   $63,000
Land ......................   $82,000
Notes Payable .............   $67,000
Rent Expense ..............   $23,000
Retained Earnings .........      ?
Salaries Expense ..........   $52,000
Salaries Payable ..........   $34,000
Sales Revenue .............   $94,000
Supplies ..................   $23,000
Trademark .................   $10,000

Additional information:
1)  At January 1, 2020, CJTR Company reported total
    assets of $223,000; total liabilities of $118,000;
    and common stock of $40,000.

2)  20% of CJTR’s 2020 net income was paid to stockholders
    as dividends.

Calculate the balance in the accounts payable account at
December 31, 2020.

Prepare a lease schedule and journal entries for the leased motor vehicle. Useful life = 8 years, no residual value.

18 Feb 2020, entered a lease agreement $42,000

Lease term 5 years, the number of monthly lease payments is 60 months (134 days from 18 Feb 2020 to 30 June 2020), the year 2020 = 366 days

The first lease payment of $660 is made in advance, hence no interest on the first payment.

Thereafter, 59 monthly lease payments are due on the 18th day of each. The final payment is due on 18 Jan 2025.

In the final payment, the company also has to make the guaranteed lease residual payment of $10,000, the company intends to pay out the guaranteed lease residual in 5 years time and take full legal possession.

please use word

QUESTION 5 (16 minutes; 9 marks):  

Queenstown Corporation issues 4,000, $4 cumulativepreferred shares at $80 each and 12,000 common shares at $18 at the beginning of 2020. Each preferred share is convertible into four common shares. During the years 2020 and 2021, the following transactions affected Queenstown Corporation’s shareholders’ equity accounts:

2020

Dec. 10      Declared and paid $12,000 of annual dividends to preferred shareholders.

2021

Dec. 10      Declared and paid the annual dividend to preferred shareholders and a $4,000 dividend to common shareholders.

Dec. 21      The preferred shares were converted into common shares.

Required:

a)         Journalize each of the 2020 and 2021 transactions.

b)         After the preferred shares are converted, what is the total number of common shares issued?

On January 1, 2020, Sunland Manufacturers had 342,000 common shares outstanding. On April 1, the corporation issued 34,200 new common shares to raise additional capital. On July 1, the corporation declared and distributed a 10% stock dividend on its common shares. On November 1, the corporation repurchased on the market 9,900 of its own outstanding common shares to make them available for issuances related to its key executives’ outstanding stock options.

a) Calculate the weighted average number of shares outstanding as at December 31, 2020

b) Assume that Sunland Manufacturers had a 1-for-10 reverse stock split instead of a 10% stock dividend on July 1, 2020. Calculate the weighted average number of shares outstanding as at December 31, 2020.

Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs.

Siren Company sells the fishing lures for $34.00. During 2020, the company sold 81,000 lures and produced 95,000 lures.

Assuming the company uses variable costing, calculate Siren’s manufacturing cost per unit for 2020. (Round answer to 2 decimal places, e.g. 10.50.)

1. Manufacturing cost per unit $
2. Prepare a variable costing income statement for 2020.

A company has the following results for the year ending December 31, 2020

On September 1, 2020, the company decided to eliminate a division. During 2020, losses relating to the eliminated division total $253,000. The above results in the table do not include this amount.

The company's income tax rate is 40%. All given amounts are pre-tax figures.

What is the company's net income or loss from 2020?

P20.1 (LO2,4,5) (2-Year Worksheet) On January I, 2019, Harrington SA has the following defined benefit pension' plan balances.

Defined Benefit Obligation €4,500,000

Fair Value of plan assets 4,200,000

The interest rate applicable to the plan is 10%. On January 1, 2020, the company amends its pension agreement so that past service costs of €500,000 are created. Other data related to the pension plan are as follows.

Instructions

a. Prepare a pension worksheet for the pension plan for 2019 and 2020.

b. For 2020, prepare the journal entry to record pension-related amounts.

On December 31, 2019, Ayayai Inc. borrowed $3,720,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $446,400; June 1, $744,000; July 1, $1,860,000; December 1, $1,860,000. The building was completed in February 2021. Additional information is provided as follows. 1. Other debt outstanding 10-year, 14% bond, December 31, 2013, interest payable annually $4,960,000 6-year, 11% note, dated December 31, 2017, interest payable annually $1,984,000 2. March 1, 2020, expenditure included land costs of $186,000 3. Interest revenue earned in 2020 $60,760 (a) Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.