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 nominal yield on this bond on October 15, 2020? [To 1 decimal place.]
In: Economics
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.]
In: Economics
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.In: Accounting
Make the following journal entries in good form.
1. On January 1, 2020, Entity A sold common stock for $30,000 to investors.
2. On January 3, 2020, Entity A performed services for Entity B for $1,500 on account.
3. On January 5, 2020, Entity A performed services for Entity C for $750 and Entity C paid.
4. On January 7, 2020, Entity A purchased a new computer (office equipment) from Best Buy for $500, paying $100 down, the rest on account.
5. On January 20, Entity B paid Entity A in full (see item 2).
6. On January 30, Entity A paid Best Buy for the computer (see item 4).
7. On January 31, Entity A received its utility bill for $150 and paid it.
In: Accounting
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.
In: Accounting
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?
In: Accounting
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.
In: Accounting
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs.
|
Variable Costs per Unit |
||
|
Direct materials |
$10.20 |
|
|
Direct labor |
$4.69 |
|
|
Variable manufacturing overhead |
$7.89 |
|
|
Variable selling and administrative expenses |
$5.30 |
|
|
Fixed Costs per Year |
||
|
Fixed manufacturing overhead |
$323,000 |
|
|
Fixed selling and administrative expenses |
$285,736 |
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.)
In: Accounting
A company has the following results for the year ending December 31, 2020
| Sales Revenue | $4,995,000 |
| Cost of Goods Sold | $1,785,000 |
| Salaries and Wages Expense | $602,000 |
| Sales Commissions | $575,000 |
| Sales Discounts | $490,000 |
| Other Administrative Expenses | $307,000 |
| Depreciation of Equipment | $189,000 |
| Rent Revenue | $120,000 |
| Advertising Expense | $85,000 |
| Interest Expense | $55,000 |
| Dividend Revenue | $30,000 |
| Loss of Sale of Investments | $7,000 |
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?
In: Accounting
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.
| 2019 | 2020 | |
| Service Cost | 150,000 | 180,000 |
| Contributions to the plan | 240,000 | 285,000 |
| Benefits paid | 200,000 | 280,000 |
| Actual Return on plan assets | 420,000 | 260,000 |
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.
In: Accounting