The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n)

Answers

Answer 1

Answer:

Answer:

Operating Activity

Explanation:

The Indirect method, reconciles the Operating Profit to the Operating Cash Flow by adjusting the following items (1) Non Cash flow items previously added or deducted from Operating Profit and (2) Changes in Working Capital items.

Amortization of bond premium is an item of non-cash flow that was previously deducted from Operating Profit and needs to be added back.

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On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buck Ltd issued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of Eldorado Ltd. The costs of issuing the shares by Quick Buck Ltd cost $1,600. At this date the statement of financial position of Eldorado Ltd was as follows: Carrying amount Fair value Machinery $40,000 $67,000 Fixtures & fittings 60,000 68,000 Vehicles 35,000 35,000 Current assets 10,000 12,000 Current liabilities (16,000) (18,000) Total net assets $129,000 Share capital (80,000 shares at $1.00 per share) $80,000 General reserve 20,000 Retained earnings 29,000 Total equity $129,000 Required: Prepare the journal entries in the records of Quick Buck Ltd at 1 July 2019 for the acquisition. (10 marks)

Answers

Answer and Explanation:

The journal entries are shown below:

1. On July 1 2019

Machinery Dr $67,000

Fixture & Fittings Dr $68,000

Vehicles Dr $35,000

Current assets Dr $12,000

Goodwill Dr $28,000

To Current liabilities $18,000

To Share Capital (80,000 × $1 ) $80,000

To Paid in capital in excess of par 112,000 {80,000 × ($2.40 - $1)}

(Being the acquisition is recorded)

For recording this we debited all assets as it increased the values of assets and credited the liabilities and stockholder equity as it also increased

2. On July 1 2019

Paid in capital in excess of par $1,600

To Cash $1,600

(Being the share issuance cost is recorded)

For recording this we debited the paid in capital as it reduced the stockholder equity and credited the cash as it reduced the assets

Working notes:

For goodwill amount

= Purchase consideration - net identifiable assets

= $192,000 - $164,000

= $28,000

The net identifiable asset come from

= $67,000 + $68,000 + $35,000 + $12,000 - $18,000

= $164,000

Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: January February March Budgeted production (in units) 94,000 ? 80,000 Budgeted raw materials purchases (in pounds) 213,800 239,800 295,800 Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 26,000 pounds of raw materials on hand on January 1. Budgeted production for February should be: rev: 10_27_2016_QC_CS-67319 191,800 units 48,000 units 96,000 units 137,000 units

Answers

Answer:

137,000

Explanation:

Jan Feb March

Units produced 94000 80000

Raw materials 26,000

Raw materials 213800 239800 295800

Ratio of raw material to a product is 2:1

Ending inventory = 30% of next month production

Represent budgeted production in February by F

239800=2F + (80000*2*30%)-(2F*30%)

239800 = 2F +48000 =0.6F

239800-48000=2F-0.6F

191800=1.4F

F= 191800/1.4 =137000

Hagar Corporation has municipal bonds classified as a held-to-maturity at December 31, 2017. These bonds have a par value of $800,000, an amortized cost of $800,000, and a fair value of $720,000. The company believes that impairment accounting is now appropriate for these bonds.Required:
Prepare the journal entry to recognize the impairment.

Answers

Explanation:

The journal entries are as follows

On December 31,2017

Loss on impairment Dr $80,000

To Debt investment - available for sale $80,000

(Being the loss on impairment is recorded)

It is computed below:

= $800,000 - $720,000

= $80,000

On December 31, 2017

Fair value adjustment- available for sale Dr $80,000

To Unrealized holding gain or loss - equity $80,000

(Being the fair value adjustment is recorded)

Answer:

Dr Allowance for Doubtful Accounts $80,000

Cr Debt Investments 80,000

Explanation:

Impairment = Cost - Fair Value = 800,000 - 720,000 = 80,000

Companies should use the CECL model to record the impairment of debt investments similar to receivables.

In evaluating the securities, Hagar now determines that it is probable that it will not collect all amounts due. In this case, it records a debit to allowance for doubtful accounts. Hagar includes this amount in income and records the impairment as shown above.

The admission of a new partner to an existing partnership: a. May be accomplished only by investing assets in the partnership.
b. Causes a legal dissolution of the existing partnership.
c. Requires purchasing the interest of one or more existing partners.
d. Is almost always accompanied by the liquidation of the business.

Answers

Answer:

The correct answer is letter "B": Causes a legal dissolution of the existing partnership.

Explanation:

A Partnership is an organization that operates a business with two or more owners. They share the profits in proportion to their partnership interest in percentage terms. There are two types of partnerships: general partnerships (unlimited liability) and limited partnerships (passive members who are responsible depending on how much money they contribute to the company).

Every time one of the partnership members passes away, retires, or another partner will be added, the existing partnership legally dissolves creating a new entity.

Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow: 20Y9 20Y8 Cash (end of year) $25,720 $24,945 Short-term investments (end of year) 8,200 9,420 Operating expenses 60,020 64,325 Depreciation expense 13,300 11,400 Determine the days’ cash on hand for 20Y8 and 20Y9. Assume 365 days in a year.

Answers

Answer:

The correct answer is 265 Days and 237 Days.

Explanation:

According to the scenario,m the computation of the given data are as follows:

First we calculate the Days cash on hand by using following formula:

Days cash on hand = Cash and cash equivalent ÷ [(operating expenses - Depreciation expense) ÷ 365 ]

So, For the year 20Y8

Days Cash on hand = ( $25,720 + $8,200) ÷ [( $60,020 - $13,300) ÷ 365]

= $33,920 ÷ 128

= 265 days

So, For the year 20Y9

Days Cash on hand = ( $24,945 + $9,420) ÷ [( $64,325 - $11,400) ÷ 365]

= $34,365 ÷ 145

= 237 days

The cost of speeding relates crashed in 2008 accounted for per second

Answers

Answer:

Thanks for the fact

Explanation:

Can I have brainliest pls?

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