Reference no: EM132968968
Question -
Q1. The transactions given below relate to a sinking fund for retirement of long term bonds of Red Company.
1. In accordance with the terms of bond indenture, cash in the amount of P2,000,000 is transferred at the end of the first year, from the regular cash account to the sinking fund. The entity administer the fund.
2. The sinking fund cash is used to acquired AB Company 12% bonds of P500,000 face value, maturing in five years, for P450,000.
3. The sinking fund cash is used to acquired 10% P100 par value CD 5,000 preference share, at P80 per share.
4. Annual interest is received on the AB bonds. The discount on the bonds is amortized accordingly using straight line method.
Required - Prepare journal entries to record transaction.
Q2. Following are selected transaction in chronological order of ABC Company and its trustee in connection with a sinking fund.
1. Cash contribution to the sinking fund, P1,000,000.
2. Acquisition of securities at par by trustee, P700,000.
3. The trustee receives interest on the securities, P60,000.
4. The trustee pays expenses of P30,000.
5. The trustee sells the securities for P800,000 plus accrued interest, P10,000.
6. The trustee renders a report to the entity.
7. The trustee pays bonds payable of P1,000,000 and interest of P100,000
8. The trustee remits the remaining cash to ABC Company.
Required - Prepare journal entries on the books of ABC Company to record the transactions.
Determine the firm cost of equity capital
: The return on the market 12% percent, and the risk-free rate is 6 percent the firm's last dividend was $1.20 per share, Determine firm cost of equity capital
|
Calculate predetermined overhead allocation rates
: Pukalani Manufacturing Company expects annual manufacturing overhead to be $792,000. Calculate predetermined overhead allocation rates
|
What is the total extended list price of the order
: The wholesaler offered the supermarket a 39% trade discount. What is the total extended list price (in $) of the order
|
What is the present value of this investment
: What is the accumulated sum of the following stream of payments? $22,138 every year at the beginning of the year for 10 years, at 9.03 percent, compounded
|
Prepare journal entries on the books of abc company
: Cash contribution to the sinking fund, P1,000,000. Prepare journal entries on the books of ABC Company to record the transactions
|
Australia for the hospitality industries
: List five (5) key features of the external labour supply available in Australia for the hospitality industries
|
Evaluate etihad record on sustainability and business ethics
: 1. At the Etihad website, click on About Us section, go through its Corporate Responsibility section, and evaluate Etihad's record on sustainability and busines
|
How about wall street regulations-deregulation
: If you are the president of the United States, you have a supermajority in the house and the senate, and you are the president of the Federal Reserve
|
Six vintages of rade restrictions in business world
: What are six vintages of rade restrictions in business world
|