On October 5, 2019, you purchase a $11,000 T-note that matures on August 15, 2031 (settlement occurs two days after purchase, so you receive actual ownership of the bond on October 7, 2019). The coupon rate on the T-note is 4.875 percent and the current price quoted on the bond is 105.75 percent. The last coupon payment occurred on May 15, 2019 (145 days before settlement), and the next coupon payment will be paid on November 15, 2019 (39 days from settlement). a. Calculate the accrued interest due to the seller from the buyer at settlement. b. Calculate the dirty price of this transaction. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Fortune Cookie Inc. (FCI) issued $10 million of 10-year, 5% convertible bonds on April 1, Year 5 at 102.5 Coupons are payable on April 1 and October 1. Bonds without conversion privileges would have sold at 101.5. FCI’s fiscal year-end is December 31. Please assume that FCI follows IFRS.

(1) On October 1, Year 10, 30% of these bonds were converted to common shares right after the payment of interest. Determine the amount to be assigned to common shares at the time of conversion. [7 marks]

(2) On December 31, Year 10, additional 30% of these bonds were converted to common shares. Accrued interest was paid at the time of conversion. Determine the amount to be assigned to common shares at the time of conversion.

A company has a fiscal year-end of December 31: (1) on October 1, $14,000 was paid for a one-year fire insurance policy; (2) on June 30 the company lent its chief financial officer $12,000; principal and interest at 6% are due in one year; and (3) equipment costing $62,000 was purchased at the beginning of the year for cash.

Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
  

1. On October 1, $14,000 was paid for a one-year fire insurance policy.

2. On June 30 the company lent its chief financial officer $12,000; principal and interest at 6% are due in one year.

3. Equipment costing $62,000 was purchased at the beginning of the year for cash.

Pacific Ink had beginning work-in-process inventory of $894,960 on October 1. Of this amount, $375,100 was the cost of direct materials and $519,860 was the cost of conversion. The 64,000 units in the beginning inventory were 25 percent complete with respect to both direct materials and conversion costs.

During October, 134,000 units were transferred out and 46,000 remained in ending inventory. The units in ending inventory were 75 percent complete with respect to direct materials and 35 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,446,500 for direct materials and $4,291,200 for conversion.

Compute the cost of goods transferred out and the cost of ending inventory using the FIFO method.

Is the ending inventory higher or lower under the weighted-average method compared to FIFO?

September october November December January

sales (units) 8000 12000 13000 16000 15000

Direct manufacturing labours

hour per unit 1.79 1.75 1.70 1.65 1.60

Direct manufacturing labour rate per unit $15.75 $16.00 $16.50 $17.50 $17.50

Ending inventory required is the next month sales , plus one half the following months sales

The ending inventory in august was 15000 units

Each employee is required to contributed to canada pension plan in the order of 4.9% of wages, this is matched by the employer

Workers compensation expenses are 1.9% of the wage total

Employment insurance is 1.85% of wages and the employer pays 1.4 times the rate charged to the employee.

Required :

prepare a labour budget showing production requirements, labour hours and costs for the month of october

Digital Solutions Inc. uses flexible budgets that are based on the following data:

Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)

On 1 September 2019, PANDEKA Bhd used its receivables totalling RM 350,000 as collateral on a 250,000, 15% note from Intelligent Bank. PANDEKA Bhd will continue to collect the assigned receivables. Intelligent Bank will charge 2% as a finance charge which will be deducted in advance on the 250,000 value of the note. Collections of receivables for September is RM100,000, less cash discounts of RM800. On 1 October, PANDEKA Bhd paid to the bank the amount owed for September collection plus accrued interest. During October, PANDEKA Bhd collected the remaining accounts except for RM550 written off as uncollectible. On 1 November, PANDEKA Bhd paid to Intelligent Bank the remaining account owed plus accrued interest.

REQUIRED:

Prepare the journal entries necessary for both PANDEKA Bhd and Intelligent Bank.

On March 1, 2018, the Miner Company received authorization to issue $160,000 in debentures. The bonds have a stated interest rate of 6%, and they mature in ten years. Interest is payable each February 28^th and August 31^st. On October 31, 2021, Miner issued 90 of the bonds and received cash from the lender in the total amount of $98,500.

Then, on May 1, 2025, the bondholders converted the bonds into 8,800 shares of Miner’s $10 par common stock. Miner paid all interest due to May 1^st in cash.

Miner has a fiscal year-end that ends on each June 30^th. Prepare ONLY those journal entries that the company would make with relating to the bonds on MARCH 1, 2018, OCTOBER 31, 2021, FEBRUARY 28, 2022, and MAY 1, 2025.

Bellamy Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.20 per customer served. Wages and salaries should be $21,000 per month plus $0.80 per customer served. Supplies should be $0.70 per customer served. Insurance should be $5,300 per month. Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.

The company reported the following actual results for October:

Customers served 22,000

Revenue $ 73,300

Wages and salaries $ 40,400

Supplies $ 16,100

Insurance $ 5,500

Miscellaneous expense $ 7,400

Required:

Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U).

RCK Ltd issues a prospectus inviting the public to subscribe for 90 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment.

Applications are received for 108 million shares during July 2018. The directors allot 90 million shares on 15 August 2018. All applicants receive shares on a pro rata basis. The amounts payable on allotment are due by 20 September 2018. By 20 September 2018 the holders of 18 million shares have failed to pay the amounts due on allotment. The directors forfeit the shares on 30 September 2018.

The shares are resold on 15 October 2018 as fully paid. An amount of $2.00 per share is received. The balance of forfeited shares is refunded on 20 October 2018.