On March 1, 2019, Ford Co. issued $1,000,000, 12% bonds at a price to yield 10%. The bonds pay interest semi-annually on September 1 and March 1. Bond issue costs of $30,000 were incurred and expensed by Ford Co. The bonds mature on March 1, 2025. The company has a September 30 year-end date.
Show the income statement and balance sheet presentation for the related bond accounts at September 30, 2019 for Ford Co.
Issue price of the bonds
n = 12 6 years x 2 i/y= 5 PMT = - 1,000,000 x 12% x 6/12 60,000 -
FV = 1,000,000 - PV= $1,088,633
May I have the full step by step calculation for the Amortization schedule?
In: Accounting
Respond to the following in a minimum of 175 words:
As the full-time bookkeeper, your job is to make any corrections to the general ledger accounts. Each correction needs the reason for the change and the effect on each account, whether it is an increase or decrease.
For the third time this month, a co-worker has recorded a cash receipt twice and wants you to record a correcting entry that will reverse the mistakes. The correcting entry will record a credit to the Cash account and a debit to the Sales account. Your co-worker has offered to buy you dinner for fixing this mistake.
What should you investigate before making a decision about the correcting entry? What is happening to the Cash account? Would you accept a dinner offer from your co-worker for fixing the mistake?
In: Accounting
I have some chemistry questions. please get all the answers correct ;)
a) Calculate the standard cell potential for the following cell
Zn (s) | Zn2+ (aq) (1M) || Co2+ (aq) (1M) | Co (s)
answer = __________V
b) The following cell was constructed and found to produce a voltage of 1.08 V.
Co (s) | Co2+ (aq) (1M) || Ag+ (aq) (1M) | Ag (s)
Calculate the standard reduction potential for Ag+ (aq) | Ag (s)
answer = _______V
c) Which of these species is the best oxidising agent?
| Co2+(aq) | Zn2+(aq) | Ni2+(aq) | Cu2+(aq) |
Standard Reduction Potentials
Cu2+ | Cu +0.34V
Ni2+ | Ni �0.24V
Co2+ | Co �0.28V
Fe2+ | Fe �0.44V
Zn2+ | Zn �0.76V
Mg2+ | Mg �2.36V
In: Chemistry
Customer return and refund
On December 28, 20Y3, Silverman Enterprises sold $19,000 of merchandise to Beasley Co. with terms 2/10, n/30. The cost of the goods sold was $11,100. On December 31, 20Y3, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $3,800 and the merchandise originally cost Silverman Enterprises $2,400.
a. Journalize the entries by Silverman Enterprises to record the December 28, 20Y3 sale, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank.
| 20Y3 Dec. 28 | |||
| 20Y3 Dec. 28 | |||
b. Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 20Y4. If an amount box does not require an entry, leave it blank.
| 20Y4 Jan. 3 | |||
| 20Y4 Jan. 3 | |||
c. Journalize the entry to record the receipt of the amount due by Beasley Co. on January 7, 20Y4. If an amount box does not require an entry, leave it blank.
| 20Y4 Jan. 7 | |||
In: Accounting
Cola Inc. and Soda Co. are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions).
| Cola Inc. | Soda Co. | ||||||||||||||||||
| Fiscal Year Ended: | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||
| Net Sales | $ | 31,719 | $ | 27,190 | $ | 28,444 | $ | 53,948 | $ | 39,732 | $ | 39,751 | |||||||
| Accounts Receivable | 4,408 | 3,743 | 3,071 | 6,397 | 4,644 | 3,714 | |||||||||||||
| Allowance for Doubtful Accounts | 41 | 48 | 44 | 137 | 83 | 63 | |||||||||||||
| Accounts Receivable, Net of Allowance | 4,367 | 3,695 | 3,027 | 6,260 | 4,561 | 3,651 | |||||||||||||
Required:
Calculate the receivables turnover ratios and days to collect for Cola Inc. and Soda Co. for 2015 and 2014. (Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.)
Which of the companies is quicker to convert its receivables into cash?
Soda Co.
Cola Inc.
In: Finance
Q3: Capital budgeting and cost of capital
Reno Co is considering a project that will cost $ 26,000 and result in the following cash flows:
|
Years |
1 |
2 |
3 |
4 |
|
Project Cash flow |
10,000 |
11,500 |
12,600 |
14,800 |
The views of the directors of Reno Co are that all investment projects must be evaluated over four years of operations using net present value. You have given the information below to assist you to calculate the appropriate discount rate:
Required:
In: Finance
Question: (Equity Securities) Lexington Co. has the following securities outstanding on December 31, 2017 (its first year of operations).
Cost Fair Value
Greenspan Corp. stock $20,000 $19,000
Summerset Company stock 9,500 8,800
Tinkers Company stock 20,000 20,600
$49,500 $48,400
During 2018, Summerset Company stock was sold for $9,200, the difference between the $9,200 and the “fair value” of $8,800
being recorded as a “Gain on Sale of Investments.” The market price of the stock on December 31, 2018, was Greenspan Corp.
stock $19,900; Tinkers Company stock $20,500.
Instructions
(a) What justification is there for valuing equity securities at fair value and reporting the unrealized gain or loss as part of
net income?
(b) How should Lexington Co. report this information in its financial statements on December 31, 2017? Explain.
(c) Did Lexington Co. properly account for the sale of the Summerset Company stock? Explain.
(d) Are there any additional entries necessary for Lexington Co. on December 31, 2018, to reflect the facts on the financial
statements in accordance with generally accepted accounting principles? Explain
In: Accounting
Q3: Capital budgeting and cost of capital
Reno Co is considering a project that will cost $ 26,000 and result in the following cash flows:
|
Years |
1 |
2 |
3 |
4 |
|
Project Cash flow |
10,000 |
11,500 |
12,600 |
14,800 |
The views of the directors of Reno Co are that all investment projects must be evaluated over four years of operations using net present value. You have given the information below to assist you to calculate the appropriate discount rate:
Required:
In: Finance
Use the following information to answer questions 33 – 34: JNR Co. signs a contract to provide three different products to a customer for a total transaction price of $750,000. Each product represents a separate performance obligation. JNR Co. only sells two of the three products on an individual basis so it must estimate the standalone selling price for the third product. JNR Co.’s cost accountants are able to forecast the cost of each product. JNR Co. has also scanned its competitors’ prices to determine their prices. The information about these three products is provided in the following table:
|
Product |
Standalone Selling Price |
Forecasted Cost |
Market Competition Price |
|
A |
$250,000 |
$125,000 |
$240,000 |
|
B |
$450,000 |
$200,000 |
$365,000 |
|
C |
Not Available |
$50,000 |
$100,000 |
|
Total |
$375,000 |
$705,000 |
What is the standalone selling price of product C using the expected cost plus margin approach?
Group of answer choices
$100,000
$50,000
$106,383
$25,000
None of the above.
What is the standalone selling price of product C using the market assessment approach?
Group of answer choices
None of the above.
$25,000
$50,000
$100,000
$106,383
In: Accounting
Question: (Equity Securities) Lexington Co. has the following securities outstanding on December 31, 2017 (its first year of operations).
Cost Fair Value
Greenspan Corp. stock $20,000 $19,000
Summerset Company stock 9,500 8,800
Tinkers Company stock 20,000 20,600
$49,500 $48,400
During 2018, Summerset Company stock was sold for $9,200, the difference between the $9,200 and the “fair value” of $8,800
being recorded as a “Gain on Sale of Investments.” The market price of the stock on December 31, 2018, was Greenspan Corp.
stock $19,900; Tinkers Company stock $20,500.
Instructions
(a) What justification is there for valuing equity securities at fair value and reporting the unrealized gain or loss as part of net income?
(b) How should Lexington Co. report this information in its financial statements on December 31, 2017? Explain.
(c) Did Lexington Co. properly account for the sale of the Summerset Company stock? Explain.
(d) Are there any additional entries necessary for Lexington Co. on December 31, 2018, to reflect the facts on the financial
statements in accordance with generally accepted accounting principles? Explain
In: Accounting