on April 1 2018, company sold 10,000 bonds ($1,000 face value) at 11% semi-annually. they are due April 1 2028.
proceeds from the bonds were 9,156,946 and their coupon dates are april 1 and october 1
on april 1 2020 , the company bough back 6,000 bonds for 5,331,000 cash.
- prepare journal entries for the bonds from sale (april 1, 2018 to the end of year 2020 (12/31/20)
- what are the 12/31/20 balances in the related bonds, discount, and interest payable (from T accounts)
- what amounts related to the bonds will appear in the income statement for 2020 and how will they be reported/classified?
In: Accounting
On December 31, 2020, an analysis of the accounts for a company reveals the following:
$100,000 loss on disposal of discontinued operations, before tax
$6,000 gain on sale of investments, before tax
$10,000 depreciation expense understatement in 2018 due to error, before tax
$20,000 cumulative understatement of net income of prior years from changing inventory valuation method in 2020, before tax
$168,000 income from operations, before tax
$4,000 dividends declared
The applicable income tax rate is 40% for all tax-related items. Retained earnings on December 31, 2019 were reported as $600,000.
What is ending retained earnings on December 31, 2020?
In: Accounting
QUESTION 2
The government of Ghana through the Minister of Finance presented
the 2020 Budget statement to Parliament in November 2019.The
Coronavirus Disease 2019 (COVID -19) pandemic that has hit the
world has impacted on global economy including Ghana, thus
affecting our macroeconomic targets in the budget statement
presented in November 2019. The Minister of Finance presented a
statement to Parliament on the economic impact of COVID – 19
pandemic on the economy of Ghana and the way forward at the end of
March, 2020.
Discuss five (5) key impact of the COVID-19 on the achievement of
our fiscal policy targets for the year 2020 by comparing the
original budget statement to the one presented after COVID- 19.
In: Economics
The government of Ghana through the Minister of Finance
presented the 2020 Budget statement to Parliament in November
2019.The Coronavirus Disease 2019 (COVID -19) pandemic that has hit
the world has impacted on global economy including Ghana, thus
affecting our macroeconomic targets in the budget statement
presented in November 2019. The Minister of Finance presented a
statement to Parliament on the economic impact of COVID – 19
pandemic on the economy of Ghana and the way forward at the end of
March, 2020.
Discuss five (5) key impact of the COVID-19 on the achievement of
our fiscal policy targets for the year 2020 by comparing the
original budget statement to the one presented after COVID- 19.
In: Economics
The government of Ghana through the Minister of Finance presented the 2020 Budget statement to Parliament in November 2019.The Coronavirus Disease 2019 (COVID -19) pandemic that has hit the world has impacted on global economy including Ghana, thus affecting our macroeconomic targets in the budget statement presented in November 2019. The Minister of Finance presented a statement to Parliament on the economic impact of COVID – 19 pandemic on the economy of Ghana and the way forward at the end of March, 2020. Discuss five (5) key impact of the COVID-19 on the achievement of our fiscal policy targets for the year 2020 by comparing the original budget statement to the one presented after COVID- 19.
In: Economics
The government of Ghana through the Minister of Finance presented
the 2020 Budget statement to Parliament
in November 2019.The Coronavirus Disease 2019 (COVID -19) pandemic
that has hit the world has impacted
on global economy including Ghana, thus affecting our macroeconomic
targets in the budget statement
presented in November 2019. The Minister of Finance presented a
statement to Parliament on the economic
impact of COVID – 19 pandemic on the economy of Ghana and the way
forward at the end of March, 2020.
Discuss five (5) key impact of the COVID-19 on the achievement of
our fiscal policy targets for the year 2020
by comparing the original budget statement to the one presented
after COVID- 19.
In: Economics
La Extended, S.A. sold specialized equipment at a price of $ 900,000 each, with a unit cost of $ 400,000. On March 1, 2020, it sold 2 pieces of equipment on credit that include a one-year warranty for defects in their components, with the commitment to replace those that present failures. It is estimated that $ 120,000 could be claimed for defects in these components. Both clients took the extended warranty offered and handed in $ 30,000 in cash each to cover an extra year. On March 25, 2020, one of the customers claimed that the equipment's system was not working properly. La Extended, S.A. replaced the component that had failures, which had a cost of $ 20,000 and discarded the previous one. On October 20, 2021, the other client claimed equipment failures, so La Extended, S.A. discarded the failed component and replaced it with a new one at a cost of $ 8,000.
a. The record (s) corresponding to the month of March 2020 will increase Net Income by:
b. The record (s) corresponding to the month of March 2020 will increase Net Income by:
In: Accounting
On January 1, 2020, ABC Co. paid $800,000 to acquire common shares of XYZ Co., which
represented 30% of XYZ Co.’s shares outstanding. The value of XYZ’s net assets was
$1,850,000 on that date. The excess of the purchase price over ABC’s share of XYZ’s net assets
is attributed to unrecorded intangibles with a 20-year life. XYZ earned net income and
comprehensive income of $400,000 in 2020 and paid dividends of $80,000. The investment in
XYZ had a fair value of $1,025,000 at December 31, 2020. XYZ incurred a net loss and
comprehensive loss of $425,000 in 2021 and paid no dividends. At December 31, 2021, the fair
value of the investment was $720,000 and the recoverable amount was $765,000. Assume that
ABC follows IFRS.
Prepare all the journal entries that ABC is required to make related to the XYZ shares in
2020 and 2021, assuming ABC has no significant influence over XYZ, and uses the FV-NI
model for the investment
Prepare all the journal entries that ABC is required to make related to the XYZ shares in
In: Accounting
On January 1, 2020, Bristol Corporation issued one 3-year, 10% (stated rate), $20,000 bond at a price which would yield the purchaser an 9% return. Payment of interest is made on December 31. The year end is December 31. The company uses the ‘effective interest’ method to account for bond interest.
In: Accounting
Stevens Ltd is the leading retailer of Gym equipment. The following information occurred during May 2020. Stevens Ltd had an opening inventory balance of $8,400,000.
May:
1 Returned to the suppliers $80,000 of the opening inventory and received cash.
12 Purchased additional inventory on credit from the supplier for $12,000,000.
18 Sold inventory for $6,000,000 cash (Cost price to Stevens Ltd $2,400,000).
19 Paid the suppliers the account from 12 May.
31 The closing stocktake at year-end revealed an inventory balance of $17,800,000.
Required:
In: Accounting