The following amortization and interest schedule is for the issuance of 10-year bonds by Marigold Corporation on January 1, 2020, and the subsequent interest payments and charges. The company’s year end is December 31 and it prepares its financial statements yearly.
| Amortization Schedule | |||||||||||
| Amount | Carrying | ||||||||||
| Year | Cash | Interest | Unamortized | Amount | |||||||
| Jan. 1, | 2020 | $5,961 | $91,039 | ||||||||
| Dec. 31, | 2020 | $8,730 | $9,104 | 5,587 | 91,413 | ||||||
| 2021 | 8,730 | 9,141 | 5,176 | 91,824 | |||||||
| 2022 | 8,730 | 9,182 | 4,724 | 92,276 | |||||||
| 2023 | 8,730 | 9,228 | 4,226 | 92,774 | |||||||
| 2024 | 8,730 | 9,277 | 3,679 | 93,321 | |||||||
| 2025 | 8,730 | 9,332 | 3,077 | 93,923 | |||||||
| 2026 | 8,730 | 9,392 | 2,415 | 94,585 | |||||||
| 2027 | 8,730 | 9,459 | 1,686 | 95,314 | |||||||
| 2028 | 8,730 | 9,531 | 885 | 96,115 | |||||||
| 2029 | 8,730 | 9,615 | 0 | $97,000 | |||||||
Determine the stated interest rate and the effective interest rate. (Round answers to 0 decimal places, e.g. 15%.)
| Stated Interest Rate | % | |
| Effective Interest Rate | % |
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List of Accounts
Based on the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Date |
Account Titles and Explanation |
Debit |
Credit |
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Jan. 1, 2020 |
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List of Accounts
Based on the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2020. (Interest is paid January 1.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
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Dec. 31, 2020 |
|||
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List of Accounts
Based on the schedule above, prepare the journal entries to
reflect the bond transactions and accruals for 2028. Marigold
Corporation does not use reversing entries. (Credit
account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select
"No Entry" for the account titles and enter 0 for the amounts.
Record journal entries in the order presented in the
problem.)
In: Accounting
Larkspur offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers presented by customers together with $2.65. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.40. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2020 and 2021 are as follows. (All purchases and sales are for cash.)
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2020 |
2021 |
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| MP3 codes purchased | 375,000 | 495,000 | ||
| Candy bars sold | 2,659,900 | 2,812,000 | ||
| Wrappers redeemed | 1,800,000 | 2,250,000 | ||
| 2020 wrappers expected to be redeemed in 2021 | 435,000 | |||
| 2021 wrappers expected to be redeemed in 2022 | 525,000 |
Part 1
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.
Prepare the journal entries that should be made in 2020 and 2021 to record the transactions related to the premium plan of the Larkspur. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 1,525.)
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Account Titles and Explanation |
Debit |
Credit |
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2020 |
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(To record the premium inventory.) |
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(To record the sales.) |
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(To record the expense associated with the sale.) |
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(To record the premium liability.) |
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2021 |
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(To record the premium inventory.) |
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(To record the sales.) |
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(To record the expense associated with the sale.) |
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(To record the premium liability.) |
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Part 2
Partially correct answer iconYour answer is partially correct.
Indicate the amounts for each accounts, and classifications of the items related to the premium plan that would appear on the balance sheet and the income statement at the end of 2020 and 2021.
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Amount |
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Account |
2020 |
2021 |
Classification |
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| Inventory of Premiums | $ | $ | Property, Plant and EquipmentLong-term InvestmentsSelling ExpenseStockholders' EquityCurrent LiabilityCurrent Asset | |||
| Premium Liability | Long-term InvestmentsProperty, Plant and EquipmentStockholders' EquitySelling ExpenseCurrent LiabilityCurrent Asset | |||||
| Premium Expense | Long-term InvestmentsSelling ExpenseStockholders' EquityCurrent AssetProperty, Plant and EquipmentCurrent Liability | |||||
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In: Accounting
Blossom Corporation Ltd. has the following capital structure at the following fiscal years ended December 31:
| 2020 | 2019 | ||||
| Number of common shares | 750,000 | 600,000 | |||
| Number of non-convertible, non-cumulative preferred A shares | 20,000 | 20,000 | |||
| Amount of 5% convertible bonds | $1,000,000 | $1,000,000 |
The following additional information is available.
| 1. | On July 31, 2020, Blossom Corporation exchanged common shares for a large piece of equipment. This was the only transaction that resulted in issuance of common shares in 2020. | |
| 2. | Income before discontinued operations for 2020 was $1,700,000, and a loss from discontinued operations of $360,000 was recorded, net of applicable tax recovery. | |
| 3. | During 2020, dividends in the amount of $4 per share were paid on the preferred A shares. | |
| 4. | Each $1,000 bond can be converted into 25 common shares. | |
| 5. | There were unexercised stock options, outstanding since 2017, that allow holders to purchase 20,000 common shares at $4.00 per share. | |
| 6. | Written warrants to purchase 10,000 common shares at $12.00 per share were outstanding at the end of 2019, and no warrants were exercised in 2020. | |
| 7. | The average market value of the common shares in 2020 was $10.00. | |
| 8. | Blossom’s tax rate is 20%. | |
| 9. | Blossom declared and paid a $5,000 dividend to common shareholders on June 1, 2020. |
Determine the weighted average number of common shares that would be used in calculating earnings per share for the year ended December 31, 2020.
| Weighted average number of common shares | Enter your answer in accordance to the question statement shares |
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Starting with the heading “Income from Continuing Operations,” prepare the bottom portion of the income statement for the year ended December 31, 2020. Assume that Blossom Corporation discloses all applicable earnings per share data on the face of the income statement. (Round Earnings Per Share amounts to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| Blossom
Corporation Partial Income Statement December 31, 2020For the Year Ended December 31, 2020For the Month Ended December 31, 2020 |
||
| Income from Discontinued OperationsLoss from Discontinued OperationsLoss from Continuing OperationsNet Income / (Loss)Income from Continuing Operations | $ | |
| Net Income / (Loss)Loss from Discontinued OperationsIncome from Continuing OperationsLoss from Continuing OperationsIncome from Discontinued Operations | ||
| Loss from Discontinued OperationsLoss from Continuing OperationsNet Income / (Loss)Income from Discontinued OperationsIncome from Continuing Operations | $ | |
| Basic earnings per share: | ||
| Loss from Discontinued OperationsNet Income / (Loss)Loss from Continuing OperationsIncome from Continuing OperationsIncome from Discontinued Operations | $ | |
| Loss from Discontinued OperationsLoss from Continuing OperationsIncome from Continuing OperationsNet Income / (Loss)Income from Discontinued Operations | ||
| Income from Continuing OperationsLoss from Discontinued OperationsIncome from Discontinued OperationsLoss from Continuing OperationsNet Income / (Loss) | $ | |
| Diluted earnings per share: | ||
| Income from Discontinued OperationsIncome from Continuing OperationsLoss from Continuing OperationsNet Income / (Loss)Loss from Discontinued Operations | $ | |
| Income from Continuing OperationsIncome from Discontinued OperationsNet Income / (Loss)Loss from Continuing OperationsLoss from Discontinued Operations | ||
| Loss from Discontinued OperationsLoss from Continuing OperationsIncome from Continuing OperationsNet Income / (Loss)Income from Discontinued Operations | $ | |
In: Accounting
Crane Corporation Ltd. has the following capital structure at the following fiscal years ended December 31:
| 2020 | 2019 | ||||
| Number of common shares | 510,000 | 360,000 | |||
| Number of non-convertible, non-cumulative preferred A shares | 50,000 | 50,000 | |||
| Amount of 6% convertible bonds | $1,000,000 | $1,000,000 |
The following additional information is available.
| 1. | On July 31, 2020, Crane Corporation exchanged common shares for a large piece of equipment. This was the only transaction that resulted in issuance of common shares in 2020. | |
| 2. | Income before discontinued operations for 2020 was $1,300,000, and a loss from discontinued operations of $300,000 was recorded, net of applicable tax recovery. | |
| 3. | During 2020, dividends in the amount of $4 per share were paid on the preferred A shares. | |
| 4. | Each $1,000 bond can be converted into 25 common shares. | |
| 5. | There were unexercised stock options, outstanding since 2017, that allow holders to purchase 20,000 common shares at $4.00 per share. | |
| 6. | Written warrants to purchase 10,000 common shares at $7.00 per share were outstanding at the end of 2019, and no warrants were exercised in 2020. | |
| 7. | The average market value of the common shares in 2020 was $5.00. | |
| 8. | Crane’s tax rate is 20%. | |
| 9. | Crane declared and paid a $10,000 dividend to common shareholders on June 1, 2020. |
Determine the weighted average number of common shares that would be used in calculating earnings per share for the year ended December 31, 2020.
| Weighted average number of common shares | Enter your answer in accordance to the question statement shares |
eTextbook and Media
Starting with the heading “Income from Continuing Operations,” prepare the bottom portion of the income statement for the year ended December 31, 2020. Assume that Crane Corporation discloses all applicable earnings per share data on the face of the income statement. (Round Earnings Per Share amounts to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| Crane
Corporation Partial Income Statement December 31, 2020For the Year Ended December 31, 2020For the Month Ended December 31, 2020 |
||
| Net Income / (Loss)Income from Discontinued OperationsLoss from Discontinued OperationsIncome from Continuing OperationsLoss from Continuing Operations | $ | |
| Loss from Continuing OperationsNet Income / (Loss)Income from Discontinued OperationsLoss from Discontinued OperationsIncome from Continuing Operations | ||
| Net Income / (Loss)Income from Discontinued OperationsIncome from Continuing OperationsLoss from Discontinued OperationsLoss from Continuing Operations | $ | |
| Basic earnings per share: | ||
| Loss from Continuing OperationsIncome from Discontinued OperationsIncome from Continuing OperationsNet Income / (Loss)Loss from Discontinued Operations | $ | |
| Loss from Discontinued OperationsLoss from Continuing OperationsNet Income / (Loss)Income from Discontinued OperationsIncome from Continuing Operations | ||
| Loss from Continuing OperationsLoss from Discontinued OperationsIncome from Continuing OperationsIncome from Discontinued OperationsNet Income / (Loss) | $ | |
| Diluted earnings per share: | ||
| Loss from Continuing OperationsIncome from Discontinued OperationsLoss from Discontinued OperationsNet Income / (Loss)Income from Continuing Operations | $ | |
| Income from Continuing OperationsNet Income / (Loss)Loss from Continuing OperationsIncome from Discontinued OperationsLoss from Discontinued Operations | ||
| Loss from Continuing OperationsLoss from Discontinued OperationsIncome from Discontinued OperationsIncome from Continuing OperationsNet Income / (Loss) | $ | |
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In: Accounting
Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married to Michele R. Albert (Social Security number 123-45-6789). The Alberts live at 512 Ferry Road, Newport News, VA 23601. They file a joint return and have two dependent children, Charlene, age 17, and Jordan, age 18. Charlene’s Social Security number is 123-45-6788, and Jordan’s Social Security number is 123-45-6787. In 2020, Martin and Michele had the following transactions:a.Martin received $120,000 in salary from Red Steel Corporation, where he is a construction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: 3$7,049($113,700 6.2%) for Social Security and 3$1,740($120,000 1.45%) for Medicare. Martin worked in Mexico from January 1, 2019, until February 15, 2020. His $120,000 salary for 2020 includes $18,000 he earned for January and one-half of February 2020 while working in Mexico.b.Martin and Michele received $400 interest on Montgomery County (Virginia) school bonds.c.Martin received $2,300 interest from a Bahamian bank account.d.Michele received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Michele received them, and she did not have the option of receiving cash.e.Martin and Michele received a $1,200 refund on their 2019 Virginia income taxes. Their itemized deductions in 2019 totaled $34,000 and included state taxes of $7,400.f.Martin paid $6,600 alimony to his former wife, Rose T. Morgan (Social Security number 123-45-6786). The divorce was finalized in 2016" "Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married to Michele R. Albert (Social Security number 123-45-6789). The Alberts live at 512 Ferry Road, Newport News, VA 23601. They file a joint return and have two dependent children, Charlene, age 17, and Jordan, age 18. Charlene’s Social Security number is 123-45-6788, and Jordan’s Social Security number is 123-45-6787. In 2020, Martin and Michele had the following transactions:a.Martin received $120,000 in salary from Red Steel Corporation, where he is a construction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: 3$7,049($113,700 6.2%) for Social Security and 3$1,740($120,000 1.45%) for Medicare. Martin worked in Mexico from January 1, 2019, until February 15, 2020. His $120,000 salary for 2020 includes $18,000 he earned for January and one-half of February 2020 while working in Mexico.b.Martin and Michele received $400 interest on Montgomery County (Virginia) school bonds.c.Martin received $2,300 interest from a Bahamian bank account.d.Michele received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Michele received them, and she did not have the option of receiving cash.e.Martin and Michele received a $1,200 refund on their 2019 Virginia income taxes. Their itemized deductions in 2019 totaled $34,000 and included state taxes of $7,400.f.Martin paid $6,600 alimony to his former wife, Rose T. Morgan (Social Security number 123-45-6786). The divorce was finalized in 2016"
1)What is the 2020 Adjusted Gross Income for Martin
and Michele Albert?
2)What is the 2020 taxable income for Martin and Michele Albert?
3)What is the tax due (refund) for Martin and Michele
Albert for 2020?
In: Accounting
Businesses invest in Information Technology Projects because ITPs
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support explicit business objectives. |
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support implicit business objectives. |
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support management decision making. |
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all of the above. |
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only a and c. |
In: Economics
Please read the following article to reflect on the ethical challenges with providing some of your own professional and personal experiences: https://www.useoftechnology.com/5-ethical-challenges-information-technology/ NO SCREENSHOTS. NO PLAGIARISM
In: Computer Science
A) Identify and discuss interventions/approaches that can be adopted by the healthcare industry to enhance the quality of life in view of the emergence and effects of the Coronavirus pandemic. In your answer, refer to the use of technology to achieve efficiency?
In: Nursing
Given v′(t)=2ti+j, find the arc length of the curve v(t) on the interval [−2,3]. You may use technology to approximate your solution to three decimal places.
In: Math
Explain the meaning of technology and discuss the effect of technological progress on economic growth.
In your answer, carefully explain the effect on real GDP, real GDP per capita and average labour productivity.
In: Economics