a)

On January 1, 2020, Franklin Inc. acquired $ 120,000 (face value) 10% bonds of Machu Corporation at 102. The bonds were dated January 1, 2020, and mature on December 31, 2023, with interest payable each June 30 and December 31. Franklin Inc. incurred $1,500 in transaction costs to purchase the bonds. The bonds will be held to maturity. Assuming the amortized cost model is used, the entry to record the purchase of the bonds on January 1, 2020 is

b)

he following information is available for ABC Corp for 2020:

Payment for goods during year $312,000

Accounts payable, beginning 42,000

Inventory, beginning 84,000

Accounts payable, ending 37,800

Inventory, ending 48,600

Cost of goods sold for 2020 is

c)

Bale Inc. is a TSX-listed company and has a December 31 year-end. On January 1, 2020, the company purchased $10 million of 5-year, 4% bonds of Real Madrid Company. Interest is payable annually on December 31. On January 1, 2020, the market interest rate was 6%. Bale Inc. classified the bonds as an FV-OCI (fair-value-through-other-comprehensive-income) investment.

On December 31, 2020, the fair value of the bonds was $9,200,000.

How much interest revenue should Bale Inc. recognize on December 31, 2021? (Note: Find the nearest amount.)

d)

Portland Ltd. estimates the cost of its physical inventory at March 31 for use in its interim financial statements. The rate of markup on cost is 25%. The following account balances are available:

Inventory, March 1 $200,000

Purchases 168,000

Purchase returns 7,000

Sales during March 350,000

What is the estimated dollar value of the inventory at March 31?