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3 years ago

During 2016, Burr Co. made the following expenditures related to the acquisition of land and the construction of a building:

Business

1 answer:

Colt1911 [192]3 years ago

8 0

Answer:

$64,000 and $358,000

Explanation:

The computation is shown below:

For land:

= Purchase price of land + Legal fees for contracts to purchase land + Demolition of old building on site - Sale of scrap from old building

= $60,000 + $2,000 + $5,000 - $3,000

= $64,000

For building:

= Construction cost of new building (fully completed) + Architects’ fees

= $350,000 + $8,000

=$358,000

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Riverbed Corporation issued 1,900 shares of $10 par value common stock upon conversion of 950 shares of $50 par value preferred

masya89 [10]

Answer:

The answer is given below;

Explanation:

Preference stocks 950*50 Dr.$47,500

Paid in capital in excess of par-preference shares Dr.$ 13,300

(64-50)*950

Common Stocks 1,900*10 Cr.$19,000

Paid in capital in excess of par-common stocks Cr.$41,800

(64*950)-(1900*10)

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2 years ago

When weighing your employment options, consider _____. employee benefits pay period taxes taxable income

kkurt [141]

When weighing your employment options, these are very important to consider:
- Employee Benefits
- Pay period
- Taxes taxable income.
Thus, all of these are very important to consider before accepting the job offer.

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3 years ago

Read 2 more answers

The capital account records Question 2 options:

Paraphin [41]

Answer:

c. transactions involving foreign investment in the United States and U.S investment abroad.

Explanation:

The capital account provides the record of foreign investment transactions occurring between a country and another country. It gives an idea of money coming in and out of the state. A surplus in the capital account record is indicative of the inflow of money in the country, while a deficit indicates the loss of money.

Debt accrued by a country, banking, loans and investment are all reflected in the capital account record. So, for a person to determine a nations assets and liabilities, the capital account would provide an accurate insight to that information.

3 0

2 years ago

Why is it important to understand that the amount cash paid for taxes is different than the amount of income tax expense?

GarryVolchara [31]

Answer: To know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

Explanation:

Income tax expense could be described as what is calculated that the company owes in taxes according to accounting rules. They are reported on the income statement.

While Income tax payable is described as the actual amount the company owes in taxes based on the rules of tax code. They appear on the balance sheet of the company accounting documents until the bills are cleared off or paid.

The reason for understanding the difference is to know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

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2 years ago

Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $830 million on January 1, 2021. The bonds sold

Semmy [17]

Answer:

discount on bonds payable 18,383,020.48 debit

other comprehensive income 18,383,020.48 credit

--to adjust Bonds at 12/31/2021 market value --

other comprehensive income 4.739.000‬ debit

discount on bonds payable 4.739.000‬ credit

--to adjust Bonds at 12/31/2022 market value --

Explanation:

We solve for the book value at year-end using effective rate

First year:

First payment

830,000,000 x 5.5% = 45,650,000

767,557,868 x 6.0% = 46,053,472.08

Amortization 403,472.08

Second Payment

830,000,000 x 5.5% = 45,650,000

(767,557,868 + 403,472.08) x 6.0% = 46,077,680.4

Amortization 427680.4

Carrying value at year-end

767,557,868 + 403,472.08 + 427,680.40 = 768,389,020.48

We need to recognize a deferred gain for the difference between these and the 750,000,000 market value at December 31th

which is $ 18,383,020.48 as these as not been realized it will be part of other comprehensive income

We will increase the discount to adjust the bonds payable account net balance.

Second year:

We repeat the process

First Payment:

830,000,000 x 5.5% = 45,650,000

Interest expense 750,000,000 x 6% = 45,000,000

Amortization 650000

Carrying value 750,000,000 + 650,000 = 750,650,000

Second Payment:

830,000,000 x 5.5% = 45,650,000

750,650,000 x 6% = 45,039,000

Amortization 611000

Carrying Value 750,650,000 + 611,000 = 751,261,000

Wer now compare this with the 756,000,000

as now the debt of the company has increased we are going to decrease the discounttand recognize a deferred loss through other comprehensive income as it wasn't realized

756,000,000 - 751,261,000 = 4.739.000‬

7 0

3 years ago