User Account

All Pages

How much is the interest income to be recognized by sure

Assignment Help Accounting Basics
Reference no: EM132772503

On April 1, 2014, SURE Inc. acquired bonds securities of PNB dated January 1, 2014. The bonds have face value of P1,000,000 payable at the end of its four-year term. Interest of 10% is payable every December 31. The effective interest rate of the bonds on January 1, 2014 is 15%. The objective of the business model of SURE Inc. is to hold assets in order to collect contractual cash flows from principal and interest. On January 1, 2016, SURE Inc. sold the PNB bonds for 110 less disposal cost of P150,000.

Problem 1: Using the same data in number 48, how much is the interest income to be recognized by SURE Inc. for the year 2014?

a. P100,000
b. P128,588
c. P96,441
d. P133,410

Reference no: EM132772503

Questions Cloud

What amount will smith record as a lease liability : Smith used an interest rate of 5% relating to this lease. What amount will Smith record as a lease liability at the inception of the lease
How much is the gain in the disposal of bonds on january : How much is the gain or (loss) in the disposal of bonds on January 1, 2016? On April 1, 2014, SURE Inc. acquired bonds securities of PNB dated January 1, 2014.
Where would you categorize the telomere aging theory : From the list of aging theories above (Stochastic & Non-Stochastic Theories), where would you categorize the "telomere aging theory"? Would it be a Stochastic.
Does warranty accrual recommendation create ethical dilemma : Denise Bunch is the sales manager for a tractor supply company. Does the warranty accrual recommendation create an ethical dilemma for Bunch
How much is the interest income to be recognized by sure : How much is the interest income to be recognized by SURE Inc. for the year 2014? On April 1, 2014, SURE Inc. acquired bonds securities of PNB dated January
Products or services to increase productivity : What are some of the factors that cause organizations to redesign their products or services to increase productivity?
What are the side effects of antipsychotic medications : Mention some barriers for psychiatric patients for complaint with medication treatment. Comment about the best treatment for the first psychotic episode.
What is the total amount of cash paid by sure inc : What is the total amount of cash paid by SURE Inc. to PNB on April 1, 2014 to acquire the bonds? On April 1, 2014, SURE Inc. acquired bonds securities of PNB
What is the firm inventory turnover : Consider a firm with net income of $160 million, revenue of $420 million, and cost of goods sold of $175 million. What is the firm inventory turnover

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which is incorrect with regards to the admission

Which is incorrect with regards to the admission of a new partner? Admission of a new partner needs the consent of each of the old partners

  Compute the depreciation amount for this period

The rate of depreciation is 20%. Assume ABC Ltd. applies the reducing balance method, compute the depreciation amount for this period

  If instead the noncontrolling interests acquisition-date

on january 1 2012 pierson corporation exchanged 1710000 cash for 90 percent of the outstanding voting stock of steele

  What is the total amount of the cash dividend

A company's board of directors votes to declare a cash dividend of $1.10 per share of common stock. What is the total amount of the cash dividend?

  What is the unit cost

Required - What is the unit cost below which Forever Ready Company should not go in bidding on the government contract

  What is the amount of additions to property

What is the amount of additions to property, plant and equipment account during fiscal year 2020 (Please note that some PPE is not paid with cash)?

  What is the net effect of these transactions in the

the following transactions apply to x companysold merchandise for cash2119paid wages3377purchased new equipment for

  Abc company began operations in april 2007 by selling

abc company began operations in april 2007 by selling common stockto owners in exchange for 70000. during 2007 abc

  Prepare a cost of goods sold budget for Andrews Company

The variable overhead rate is $1.20 per direct labor hour, Prepare a cost of goods sold budget for Andrews Company

  Compute the total payroll tax expense for Baltimore Company

Baltimore will withhold $220 federal income taxes. Use this information to compute the total payroll tax expense for Baltimore Company

  The mixing department is a cost center an analysis of the

data concerning manufacturing overhead for analina industries are presented below. the mixing department is a cost

  What is the total paid into the fund by ace machinery

Ace Machinery wants to provide for replacement of equipment seven years from now, What is the total paid into the fund by Ace Machinery?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd