User Account

All Pages

Make the entries on raffy for years

Assignment Help Accounting Basics
Reference no: EM132822940

On June 1, 2020, Raffy Company purchased for P5,353,150 (including transaction costs) plus accrued interest P5,000,000, 12% bonds of Blessie Corporation. Raffy's business model for managing debt investment is both collecting cash flows that are payment for principal and interest and selling the instruments when opportunity arises. Raffy did not exercise its option to recognize the change in fair value in profit or loss. The bonds, which mature on December 31, 2024 pay interest annually on December 31. The yield is computed at 10%.

On September 1, 2023, Raffy Company sold P3,000,000 of the bonds at 103 plus accrued interest. The bonds are quoted in the market at the following prices, at selected dates.

June 1, 2020 106
December 31, 2022 104
December 31, 2020 107
September 1, 2023 103
December 31, 2021 105
December 31, 2023 102

Required:

Problem 1. Prepare the amortization table.

Problem 2. Prepare the entries on Raffy for years 2020 through 2023 as a result of the forgoing. (Raffy Company reports on a calendar year basis)

Reference no: EM132822940

Questions Cloud

Inputs for the productivity improvements : Analyze the trade-offs between inputs for the productivity improvements.
What the amount recorded for the paid-in capital : On February 05, 2020, corporation issued 1,800 shares of $3 par value common stock for $8,100 cash. What the amount recorded for the "paid-in capital
Which is not an element of well-designed source document : Effectively captured if the source documents are well designed. Which of the following is NOT an element of a well-designed source document?
Discuss what organizational behavior is : -Discuss what organizational behavior is. What is its focus? Why is it important to know and understand human behavior in an organization?
Make the entries on raffy for years : Make the entries on Raffy for years 2020 through 2023 as a result of the forgoing. (Raffy Company reports on a calendar year basis)
Explain the content of proposal based on the points : First identify a research based article (Specialization HR) from a management journal of your choice and then formulate a research proposal that the author migh
Compute the cost of units completed and transferred : Compute the cost of units completed and transferred to the testing department. Compute the cost of the ending Work-in-Process.
How would he record the entry : Based on accrual accounting, which month should Henry record the inventory purchase (January or February)? How would he record the entry
Characteristics of effective teams : Based on your knowledge from a past or present job, explain the difference between a group and a team.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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