Wildhorse Corp. offers three-year, 6% convertible bonds (par $1,120). Each $1,120 bond may be converted into 265 common shares, which are currently trading at $3 per share. Similar straight bonds carry an interest rate of 9%. 1,000 bonds are issued at par. Prepare the journal entries at the date of issuance under both IFRS and ASPE. Assume further that the company chooses to value the equity component at $0 under ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971.) Account Titles IFRS ASPE Debit Credit
Q: On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year…
A: Journal entry refers to the act or method of recording or reporting the transaction in books of…
Q: 2. Which of the following is an appropriate aggregation? A. Cash and cash equivalents (Cash in bank…
A: A balance sheet is a financial statement that provides a snapshot of a company's financial position…
Q: Find the amount to which $675 will grow under each of the following conditions. Do not round…
A: Formula : Future value = Present value x (1 + i/n)^nt where : Present value = Money invested today i…
Q: Why is it expected that the initial debit and credit totals of the income statement accounts do not…
A: Financial statements includes Income statement Balance sheet Cash flow statement Form worksheet…
Q: Robin Company reported the following costs for the current month: Direct materials used Direct labor…
A: Total manufacturing overheads are the sum of all indirect costs incurred in the process of…
Q: n regards to current annual report and balance sheet of PepsiCo, what are some major items you…
A: The latest annual report for PepsiCo is available for the year ended 2021. This corresponds to the…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: Answer:- Journal entry:- An entry is the journal serves as a record of a transaction in the…
Q: Alex Company reports variable manufacturing costs of $215 per unit and fixed overhead of $18 per…
A: A managerial accounting methodology described as "absorption costing," commonly referred to as "full…
Q: Riverbed Inc. purchased 30% of Nadal Corporation's 33,200 outstanding common shares at a cost of $15…
A: Investment in financial instruments refers to the purchase of financial assets, such as stocks,…
Q: Permabilt Corporation was incorporated on January 1, 2022, and issued the following stock for cash…
A: The financial statements of the business include the income statement and balance sheet. The…
Q: ended December 31, Southern Supply had net sales of $7,320,000, costs and other expenses (including…
A: Answer : a) Southern supply Income statement For the year ended Dec.31,Current year…
Q: Rr.23. The following information is available for Elliot Company. (c)Prepare a classified…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: The calculation of direct materials variances shows an adverse direct materials price variance of…
A: Solution: Direct materials price variance = 5,000 U Direct materials usage variance = 5,500 F
Q: This year Diane intends to file a married-joint return. Diane received $180,300 of salary and paid…
A: Adjusted gross income (AGI) refers to the amount of money gained by an entity which is further…
Q: As a high fraud-risk area, payroll data is used to conduct fraud tests. Which of the following is a…
A: Payroll is the process of calculating and disbursing employee compensation, including wages,…
Q: Swanson & Hiller, Inc., purchased a new machine on September 1 of the current year at a cost of…
A: Methods of depreciation are the various types of computing depreciation on fixed assets. Some of the…
Q: Dorothy is a true accountant: she not only likes knowing where every dollar is going, she is…
A: The purpose of preparing the Cash Budget to know the total Cash inflows and Outflows of the business…
Q: Shwonson Industries reported a deferred tax asset of $5.50 million for the year ended December 31,…
A: Solution : Income tax payable = Taxable income * tax rate Decrease in deferred tax assets = Existing…
Q: company has four purchases for the following amounts. Purchase on February 17 Purchase on May 6…
A: Cost of goods sold is amount of expenses in purchase of raw material and manufacture the products…
Q: Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income.
A: Answer:- Differential analysis:- The differential impacts on income are calculated with the help of…
Q: Castillo Corporation, a manufacturer, reports costs for the year as follows: Direct Materials…
A: Period costs are the costs relating to selling and administrative expenses. These do not include…
Q: Thomas Corporation has provided the following data from its activity-based costing accounting…
A:
Q: Three years ago, Louise bought a rental house for $450,000. Last year, she built a small addition…
A: The adjusted basis of the rental house is = Bought a rental house for = $450,000 Add…
Q: On December 31, 2020, Berclair Inc. had 440 million shares of common stock and 8 million shares of…
A: Earnings per share (EPS) is a financial metric that measures a company's net profit divided by its…
Q: Demonstrate how the credit risk management issue(s) in the Washington Mutual case can be resolved…
A: Due to excessive credit risk exposure, Washington Mutual, Inc. (WaMu), a sizable US savings and loan…
Q: At the end of 2023, Monty Corporation owns a licence with a remaining life of 10 years and a…
A: Impairment loss should be recognised when assets carrying value is higher than recoverable amount.…
Q: Eddy's Fishing Hole has the following transactions related to its top-selling Shimano fishing reel…
A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: For the next fiscal year, you forecast net income of $52,000 and ending assets of $503,400. Your…
A: The Ending Assets = $503,400. Therefore ending liabilities = $503,400. Retained Earing's = Net…
Q: KHR Ltd acquired a business consisting of 3 cash-generating units: HNE, DGH and ATR. There is no…
A: Impairment of Goodwill The worth of a corporate name, reputation, customer connections, and other…
Q: Given a 7.2 % simple interest investment for 251 days, calculate the initial amount required to…
A: Simple Interest = P * R * TMaturity Value = P + (P * R * T)Where P = Principal (Initial amount)R =…
Q: January 1, 2021, Novak Ltd. paid $316,289.83 for 12% bonds of Variation Ltd. with a maturity value…
A: Debt securities are the financial instrument which provides a fixed amount of interest to the…
Q: Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $25 million and…
A: Solution: Income taxes payable = Taxable income * Tax rate Income tax expense = Income tax payable -…
Q: Kappa Limited paid $10,000 to purchase computer applications software (Class 12) on January 31,…
A: The tax treatment of computer applications software (Class 12) is eligible for a 100% deduction…
Q: The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following…
A: The overhead budget predicts the overhead costs including variable and fixed costs to be incurred…
Q: Your examination of the records of a company that follows the cash basis of accounting tells you…
A: Net income is the amount of income earned by an entity by deducting the expenses from the revenues.…
Q: How did you get 5500 units of static budget?
A: Static budget: It implies to a budget that is prepared based on the expected or estimated values…
Q: Agata Bertina wants to open a new factory in New Jersey. The company can either purchase or lease…
A: Option 1: Present Value = $700,000 Option 2: Present Value = $395,374.90 Calculated using excel as…
Q: Helm Corporation uses an activity-based costing system with three activity cost pools. The company…
A: Calculation of How much cost, in total, would be allocated in the first-stage allocation to the…
Q: Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021.…
A: A lease is an arrangement where a lessor agrees to allow a lessee to control the use of the asset…
Q: Beckenworth had the following purchases and sales during the first week of June: Activities Units…
A: Solution: Units in ending inventory = Units available for sale - Units sold Under LIFO method,…
Q: The following is the adjusted trial balance data for Emma's Alterations as of December 31, 2019.…
A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…
Q: Required: Using the weighted-average interest method, answer the following questions: 1. Calculate…
A: 1. Calculation of Weighted average interest rate of the debt: Debt type Amount ($) Interest…
Q: The production manager of Rordan Corporation has submitted the following quarterly production…
A: Lets understand the basics. Management prepares budget in order to estimate future profit and loss…
Q: What is the purpose of the accounting cycle, and what are the different steps involved in it?
A: The accounting cycle is a systematic process used by businesses to record, classify, and summarize…
Q: On September 1, Bridgeport Ltd. purchased $76,200 of five-year, 8% bonds for $67,584, resulting in…
A: Although, only part d is asked but here part a,b and c is also answered to give a complete answer…
Q: Current Attempt in Progress The Smelting Department of Wildhorse Company has the following…
A: Equivalent units of production is a term used in accounting and refers to a way of measuring the…
Q: Obtaining a “Sufficient” Understanding of Internal Control. The 12 partners of a regional public…
A: Answer:- Internal control:- Internal control is a procedure for ensuring that an corporation's…
Q: Calculate the change in monthly take-home pay when the following tax-deferred contribution is made.…
A: Tax deferred savings plan can be referred to a savings plan which help the tax payer in lowering the…
Q: Montoure Company uses a perpetual inventory system. It entered into the following calendar-year…
A: Under FIFO method the oldest products in inventory have been sold first. Under LIFO method the…
Q: Walters Audio Visual Inc. offers and incentive stock option plan to its regional managers. On…
A: The journal entry is used to record business transactions in the business books. The entity enters…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Enviro Company issues 12.00%, 10-year bonds with a par value of $460,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 9.00%, which implies a selling price of 128.625. The straight-line method is used to allocate interest expense. What are the issuer's cash proceeds from issuance of these bonds? What total amount of bond interest expense will be recognized over the life of these bonds? What is the amount of bond interest expense recorded on the first interest payment date?On January 1, 2020, Blossom Ltd. issued 820 5-year, 11% convertible bonds at par of $1,000, with interest payable each December 31. Each bond is convertible into 100 common shares, and the current fair value of each common share is $6. Similar straight bonds carry an interest rate of 13%. Calculate the PV of the debt component by itself. Calculate using any of the following methods: (1) factor tables, (2) a financial calculator, or (3) Excel function PV. QUESTION: 1) PV of the debt component 2) How should Blossom record the issuance if it follows IFRS? Use the amount you arrived at in part (a) using a financial calculator or Excel. Date Account Titles and Explanation January 1 enter an account title enter an account title January 1 enter an account title Date Account Titles and Explanation enter an account title Debit 3) How should Blossom record the issuance if it follows ASPE? enter an account title enter a debit amount enter a credit amount Credit enter a debit amount enter a credit…Your company sells $41,000 of one-year, 12% bonds for an issue price of $39,500. The journal entry to record this transaction will include a credit to Bonds Payable in the amount of: Multiple Choice $39,500. $41,000. $44,420. $45,920.
- Garcia Company issues 8.0%, 15-year bonds with a par value of $290,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6.0%, which implies a selling price of 114 3/4. Prepare the journal entry for the issuance of these bonds for cash on January 1. View transaction list Journal entry worksheet < Record the issue of bonds with a par value of $290,000 at a selling price of 114 3/4. Note: Enter debits before credits. Date January 01 Record entry General Journal Clear entry Debit Credit He View general JournalWaterway Ltd. issued a $1,062,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Waterway followed IFRS. Using 1.factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to 0 decimal places eg. 58,971.) Proceeds from sale of bond on bond Date $ $ Prepare the journal entries for above transactions. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.…Enviro Company issues 8.50%, 10-year bonds with a par value of $260,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 5.50%, which implies a selling price of 123.625. The straight-line method is used to allocate interest expense. 1. What are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 X Answer is not complete. What is the amount of bond interest expense recorded on the first interest payment date? Note: Round your final answer to nearest whole dollar amount. Bond interest expense Required 2 Required 3 >
- Enviro Company issues 12.50%, 10-year bonds with a par value of $470,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 9.50%, which implies a selling price of 128.875. The straight-line method is used to allocate interest expense. 1. What are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What are the issuer's cash proceeds from issuance of these bonds? (Round your final answer to nearest whole dollar amount.) Cash proceedsThe Gonzalez Group issued $890,000 of 9% bonds on June 30, 2024, for $978,079. • The bonds were dated on June 30 and mature on June 30, 2044 (20 years). . The market yield for bonds of similar risk and maturity is 8%. . Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gonzalez Group on June 30, 2024, interest on December 31, 2024 and interest on June 30, 2025 (at the effective rate). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 2 3 Date June 30, 2024 Cash June 30, 2025 Answer is complete but not entirely correct. December 31, 202 Interest expense General Journal Bonds payable Premium on bonds payable Premium on bonds payable Cash Interest expense Premium on bonds payable Cash 333 333 Debit 978,079 35,520 X 1,520 X 35,520 1,520 X Credit 890,000 88,079 37,040 37,040 XMetlock Ltd. issued a $791,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Metlock followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places e.g. 58,971.) Proceeds from sale of bond Discount on bond Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the…
- Enviro Company issues 8%, 10-year bonds with a par value of $200,000 and semiannual interest payments. On the Issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 12. The straight-line method is used to allocate interest expense. 1. What are the issuer's cash proceeds from Issuance of these bonds? 2. What total amount of bond Interest expense will be recognized over the life of these bonds? 3. What is the amount of bond Interest expense recorded on the first interest payment date? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Answer is complete but not entirely correct. Required 3 What total amount of bond interest expense will be recognized over the life of these bonds? Note: Round final answers to the nearest whole dollar amount. payments of Par value at maturity Total Bond Interest Expense Over Life of Bonds: Amount repaid: 20 $ 168,000 $ 3,360,000 200,000 3,560,000 Total repayments Less amount…Wildhorse Ltd. issued a $1,159,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Wildhorse followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places e.g. 58,971.) Proceeds from sale of bond on bond Date $ $ Prepare the journal entries for above transactions. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O…Enviro Company issues 11.00%, 10-year bonds with a par value of $310,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.00%, which implies a selling price of 124.875. The straight-line method is used to allocate interest expense. 1. What are the issuer’s cash proceeds from issuance of these bonds?2. What total amount of bond interest expense will be recognized over the life of these bonds?3. What is the amount of bond interest expense recorded on the first interest payment date?