The writer is very fast, professional and responded to the review request fast also. Thank you.
Presentation/PPT
27/08/2022
On August 1, 2016 the following entry was made:
Dr. Capital assets $300,000
Cr. Accounts payable $300,000
Hint: You will need to calculate depreciation and future taxes. Remember you need to present both fiscal 2016 and fiscal 2017 calculations.
Question 4 (10 marks):
On May 1, 2016 123 Inc. issued 600, ten-year 8% bonds for $1,000 each. The bonds pay interest annually on April 30. These bonds can be converted by the bondholders into common shares at a rate of 25 common shares for each bond converted (so far no bonds have been converted).
Required:
You have been asked to calculate what impact these bonds had on the earnings per share. Net income for 2016 was $2 million and there are 500,000 common shares (and no preference shares) outstanding. Assume a tax rate of 20%.
Question 5 (10 marks):
123 acquired 25% of the outstanding common shares of another public company, Alphabet Soup Inc. on November 1, 2015. The purchase price was $2.5M for 125,000 shares. Alphabet declared and paid a $1.50 per share cash dividend on January 15, and again on August 15, 2016. Alphabet reported net income of $1,040,000 on its October 31, 2016 financial statement. The fair market value of Alphabet’s shares was $20.25 per share at October 31, 2016.
Required
Given the complex circumstances of this acquisition it is unclear whether 123 can exercise significant influence over Alphabet. Accordingly you have been asked to prepare two sets of journal entries depending on whether 123 must use the equity method of accounting or FV-OCI.
Indicate which method of accounting will result in a higher level of net income and explain why that occurred.
Show more
The writer is very fast, professional and responded to the review request fast also. Thank you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more