OGOYA Ltd is a fast-growing company in need of new financing to fund its expansion plans. It is hoping to raise $10 million dollars from a debt issuance. It is considering the following options:
A Issue 2-year 8% debentures at par on January 1, 2019. Interest payments are made annually at the end of each year. The debenture matures on December 31, 2020.
B Issue 2-year 4% convertible debentures at par on January 1, 2019. The debentures can be converted into 10 million $1 shares at maturity on December 31, 2020. Interest payments are made annually at the end of each year. Without the conversion feature, the debenture would be priced the same as option A.
Question show the journal entries for A and B from 1 january 2019 to 31 December 2020 the face value 10 million
In: Accounting
OGOYA Ltd is a fast-growing company in need of new financing to fund its expansion plans. It is hoping to raise $10 million dollars from a debt issuance. It is considering the following options:
A Issue 2-year 8% debentures at par on January 1, 2019. Interest payments are made annually at the end of each year. The debenture matures on December 31, 2020.
B Issue 2-year 4% convertible debentures at par on January 1, 2019. The debentures can be converted into 10 million $1 shares at maturity on December 31, 2020. Interest payments are made annually at the end of each year. Without the conversion feature, the debenture would be priced the same as option A.
Question show the journal entries for A and B from 1 January 2019 to 31 December 2020 the face value 10 million
In: Accounting
#45 — LO.6 Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a “specified services” business) that generates qualified business income of $300,000. The proprietorship pays W–2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $386,600 (this is also their modified taxable income).
a. Determine Scott and Laura’s QBI deduction, taxable income, and tax liability for 2020.
b. After providing you with the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December 2020 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura’s QBI deduction, taxable income, and tax liability for 2020.
c. What is the marginal tax rate on Scott’s bonus?
In: Accounting
On October 1st American Company purchased this 1,000,000 peso CD when the peso was worth 10 cents
This 2 year CD pays interest at 12% with interest paid each April 1st and October 1st
American Company purchased this 1,000,000 peso CD when the peso was worth 10 cents
On December 31st The peso was worth 8 cents
On April 1st 2020 the peso was worth 9 cents
On October 1st 2020 the peso was worth 11 cents
On December 1st 2020 the peso was worth 10 cents
On April 1st 2021 the peso was worth 8 cents
On October 1st 2021 the peso was worth 9 cents
REQUIRED: MAKE ALL THE JOURNAL ENTRIES AMERICAN MAKES IN CONNECTION WITH THIS CD
DON'T FORGET THE INITIAL PURCHASE OF THE CD AND THE NECESSARY ADJUSTING ENTRIES AT YEAR END
In: Accounting
ABC Ltd acquired a machine for $750 000 on 1 July 2018. The machine had a useful life of five years and was depreciated on a straight-line basis with no disposal value. ABC Ltd adopts the cost model for accounting for assets in this class. ABC Ltd makes the following estimates of the value of the machine: Date Net selling price Value in use Fair Value 30 June 2019 $550 000 520 000 590 000 30 June 2020 $460 000 420 000 490 000 Indicators of impairment were identified on 30 June 2019, while indicators of a reversal of impairment were found on 30 June 2020.
REQUIRED: Prepare journal entries relating to this asset from 30 June 2019 to 30 June 2020. Show the steps of impairment (or reversal of impairment) tests. Show all working (step by step).
In: Accounting
ABC Ltd acquired a machine for $750 000 on 1 July 2018. The machine had a useful life of five years and was depreciated on a straight-line basis with no disposal value. ABC Ltd adopts the cost model for accounting for assets in this class. ABC Ltd makes the following estimates of the value of the machine:
| Date | Net selling price | Value in use | Fair Value |
| 30 June 2019 | $550 000 | 520 000 | 590 000 |
| 30 June 2020 | $460 000 | 420 000 | 490 000 |
Indicators of impairment were identified on 30 June 2019, while indicators of a reversal of impairment were found on 30 June 2020.
REQUIRED: Prepare journal entries relating to this asset from 30 June 2019 to 30 June 2020. Show the steps of impairment (or reversal of impairment) tests. Show all working (step by step).
In: Accounting
Novak Inc. charges an initial franchise fee of $66,000. Upon the
signing of the agreement (which covers 3 years), a payment of
$26,400 is due. Thereafter, 3 annual payments of $13,200 are
required. The credit rating of the franchisee is such that it would
have to pay interest at 9% to borrow money. The franchise agreement
is signed on May 1, 2020, and the franchise commences operation on
July 1, 2020.
Click here to view factor table.
Prepare the journal entries in 2020 for the franchisor under the
following assumptions.
| (a) | No future services are required by the franchisor once the franchise starts operations. | |
| (b) | The franchisor has substantial services to perform, once the franchise begins operations, to maintain the value of the franchise. | |
| (c) | The total franchise fee includes training services (with a value of $2,600) for the period leading up to the franchise opening and for 2 months following opening. |
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(c) |
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In: Accounting
1. On February 1, 2018, Ellison Co. issued eight-year bonds with a face value of $10,000,000 and a stated interest rate of 7%, payable semiannually on July 1 and January 1. The bonds were sold to yield 8%. The bonds are callable at 101 and convertible.
2. Using the information above, assume that the bonds issued by Ellison Co. are convertible with each $1,000 convertible into 25 shares of common stock. Assume that Ellison converts $5,000,000 of bonds on July 1, 2020 into common stock. Prepare the following entries:
a. Entry at February 1, 2018 for issuance of the convertible bonds
b. Entry at July 1, 2020 for the conversion of $5,000,000 of bonds.
3. Using the information above, assume that the remaining bonds are called on December 31, 2020.
In: Accounting
Question Workspace
Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 - T)] for 2020 is expected to
be $700 million. Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent. $ |
In: Finance
ABC Ltd acquired a machine for $750 000 on 1 July 2018. The machine had a useful life of five years and was depreciated on a straight-line basis with no disposal value. ABC Ltd adopts the cost model for accounting for assets in this class. ABC Ltd makes the following estimates of the value of the machine: Date Net selling price Value in use Fair Value 30 June 2019 $550 000 520 000 590 000 30 June 2020 $460 000 420 000 490 000 Indicators of impairment were identified on 30 June 2019, while indicators of a reversal of impairment were found on 30 June 2020.
REQUIRED: Prepare journal entries relating to this asset from 30 June 2019 to 30 June 2020. Show the steps of impairment (or reversal of impairment) tests. Show all working (step by step).
In: Accounting