How much should hibiscus report as interest income

Assignment Help Accounting Basics
Reference no: EM132973007

Problem - On January 1, 2020, HIBISCUS Company purchased 4,000 of P1,000 face value, 10% bonds of IXORA Company for P4,270,600. The bonds will mature on January 1, 2025 and pay interest semi-annually on January 1 and July 1. Bonds effective interest rate is 8%. HIBISCUS has a business model of collecting all the contractural cash flows related to the instrument. How much should HIBISCUS report as interest income on the bonds?

Reference no: EM132973007

Questions Cloud

Prepare the statement of changes in equity for magic carpets : The retained earnings on April 1, 2021 was $48,600. Prepare the statement of changes in equity for Magic Carpets Limited for the month ended April 30, 2021
Advantages and disadvantages of a f2f interview : What are the advantages and disadvantages of a F2F Interview?
Calculate the company total weekly gross profit : Calculate the company's total weekly gross profit assuming the table cleaner is processed further. Sandhill Industrial Products Inc. is a diversified industrial
Describe the traditional approach to portfolio management : a. Analyze Walt s argument and explain why a mutual fund investment may be overdiversified. Also explain why one does not necessarily have to have hundreds of t
How much should hibiscus report as interest income : HIBISCUS has a business model of collecting all the contractural cash flows related to the instrument. How much should HIBISCUS report
List three major educational changes : List three major educational changes over the past 100 years that have positively influenced students. Explain why these changes were influential.
Provide examples of accounting estimates : Provide examples of accounting estimates, accounting judgments, and structured transactions that the lender should examine closely
What makes nick graham a good entrepreneur : What makes Nick Graham a good entrepreneur? What makes Nick Graham's enterprise a business?
Discuss the importance of data cleansing : 1. Discuss the importance of data cleansing. What are the pros and cons of data cleansing?

Reviews

Write a Review

Accounting Basics Questions & Answers

  One rule of professional ethics adopted by cpas is that a

discuss with your team dq 4 in your lt forum and submit the final lt response by saturday under this thread. responses

  Calculate the average annual dividend per share for each

love theatre inc. owns and operates movie theaters throughout new mexico and utah. love theatre has declared the

  What amount of loss does Celeste recognize

Celeste's tax basis in the Supply Chain stock was $1,315,000. What amount of loss does Celeste recognize in the exchange

  Calculate the annual break even point in unit sales

Mrs Mac sells burgers and is considering whether to open a second outlet. Calculate the annual break even point in unit sales

  Calculate the postretirement benefit expense

The service cost is $3,500,000. The appropriate interest rate is 8%. Calculate the postretirement benefit expense for 2015

  How much income should be recorded

The contract price was $700,000. Assuming the company properly recorded income in 2010, how much income should be recorded in 2011

  Determine respectively the total exclusion in gross income

Mr. Kabacan surrendered his life insurance policy and received a cash surrender value of P800,000. Determine respectively the total exclusion in gross income

  Colen corporation produces and sells a single product in

colen corporation produces and sells a single product. in january the company sold 1700 units. its total sales were

  Compute departmental overhead rates

The company does not break overhead into fixed and variable components. Using machine hours, compute departmental overhead rates

  What are the equivalent units of production for materials

massey corporation uses a process cost system and the weighted-average cost flow assumption. production begins in the

  What is the amount of each transferor recognized gain

What is the amount of each transferor's recognized gain or loss? What is Alice's basis for her PP stock? What is Chuck's basis for his PP stock

  Is berry required to report the amounts

Berry Plastics is a manufacturer. Berry has inventory consisting of raw materials, work in process and finished goods totaling $24 million.

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!

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