69=9.81% Based on information from Exhibit3 (Balance sheet) Book value of stockholders’ equity= 3494.5 And according to our text book‚ capital must be provided by investors- interest bearing debt‚ preferred stock and common equity‚ accounts payable and accrued should be deducted.
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they were assayed. Annotation of those transactions is a little difficult to understand as far as whether they are annotated as either debts or credits. Calculating and recording interest revenue from the value of bonds times the interest rate times the portion of the year the bond is outstanding is another area that would be very helpful to cover and reinforce our understanding. Trading
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total of $1‚200‚000 bonds payable plus accrued interests of $140‚000 by issuing 1‚200‚000 shares of common stock. There are two potential treatments for the transaction: conversion debt to equity and extinguishment of debt. Conversion of Debt to Equity Conversion of Debt exchanges convertible bonds for preferred or common stocks depending on predetermined features at issuance. The accounting treatment of this approach is using book value method‚ $1‚200‚000 bonds payable and $140‚000 accrued
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Acct. 353 1. Blue Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company’s assets in that country. If the likelihood of expropriation is remote‚ a loss contingency should be A. Disclosed but not accrued as a liability. B. Disclosed and accrued as a liability. C. Accrued as liability but not disclosed. D. Neither accrued as a liability nor disclosed. 2. When a material gain contingency is probable and the amount of gain can be reasonably estimated
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governments pay bond interest that is partly or fully tax free. Munis is a catch-all term for municipal bonds sold by state and local governments. The interest munis pay is generally exempt from federal tax and is usually exempt from state and local taxes for residents of the locality where the bond is issued. If you sell munis for a profit‚ however‚ you may owe capital gains tax. And‚ in some cases‚ the interest may be subject to the alternative minimum tax (AMT). Municipal bonds‚ like other investments
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existing resources properly classified as current assets‚ or the creation of other liabilities. Accounts Payable or trade accounts payable‚ are balances owed to others for goods‚ supplies‚ or services purchased on open account. Notes Payable are written promises to pay a certain sum of money on a specified future date and may arise from purchases‚ financing‚ or other transactions. The portion of bonds‚ mortgage notes‚ and other long-term indebtedness that matures within the next fiscal year is reported
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availability of tax shelter provided by things other than debt‚ such as __________. 10) Preferred stock payment obligations are typically 11) If the yield to maturity for a bond is less than the bond’s coupon rate‚ then the market value of the bond is __________. 12) Assume that the par value of a bond is $1‚000. Consider a bond where the coupon rate is 9% and the current yield is 10%. Which of the following statements is true? 13) Certain countries have restrictions. In practice‚ U.S. investors
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Does it mean that black parents are very negligent? Or the fact that they are very poor? This reading tells us about a book by Dorothy Roberts titled Shattered Bonds: The Color of Child Welfare. This book tells us that poverty is the leading cause of children being put in foster care. We see that poverty led to women losing their children as a result of lack of healthcare‚ inadequate housing and an inability to
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Brands Land Buildings Other net assets RM’million 20 5 10 50 30 40 The recoverable value of the unit is estimated at RM85 million. The technology is worthless‚ following its complete failure. The other net assets include inventory‚ receivables and payables. It is considered that the book value of other net assets is a reasonable representation of its net realisable value. Required: Show the impact of the impairment on 1 January. Topic 5 Topic Review Questions Question 1 Butler Berhad has a year
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0.14_$500‚000 $70‚000 Unused credit 0.08_$300‚000 24‚000 $94‚000 (b) Effective interest rate ¼ interest proceeds ¼ 0:20 _ $500‚000 $500‚000 _ $94‚000 ¼ $100‚000 $406‚000 ¼ 24:6% Average Loan Balance. Wise Corporation borrows $70‚000 payable in 12 monthly installments. The interest rate is 15 percent. (a) What is the average loan balance? (b) What is the effective interest rate? SOLUTION (a) Average loan balance ¼ $70‚000 2 ¼ $35‚000 (b) Effective interest rate ¼ 0:15 _ $70‚000
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