Coronado Limited issued 10-year, 7% debentures with a face value of $2.18 million on January 1, 2010

Coronado Limited issued 10-year, 7% debentures with a face value of $2.18 million on January 1, 2010. The proceeds received were $1.90 million. The discount was amortized on the straight-line basis over the 10-year term. The terms of the debenture stated that the debentures could be redeemed in full at any point before the maturity date, at a price of 105 of the principal. There was no requirement for a sinking fund.On January 1, 2017, Coronado issued a mortgage at 101 with a principal of $3.3 million secured by land and building. The mortgage had a 25-year amortization period, with interest payable at 8%. Upon issuance of the mortgage, Coronado used the proceeds to redeem the 7% debentures. Coronado prepares financial statements in accordance with ASPE.Additional Information for ASPEASPE—CPA Canada Handbook, Part II, Sections 1510, 1521, and 3856There is specific guidance on measuring related party transactions.Subsequent to initial recognition, liabilities are generally measured at amortized cost using the effective interest or other method (unless measured at fair value under the fair value option or because it is a derivative).Where the fair value option is used, credit risk is incorporated into the measurement and resulting gains/losses are booked through net income.Normally the balance sheet is segregated into current/non-current; however, this may not be appropriate for certain industries.Refinanced long-term debt may be classified as long-term where refinanced by date of issue of financial statements.1. Prepare the journal entry to record the issuance of the 8% mortgage January 1, 2017.2. Prepare the journal entry to record the retirement of the 7% debentures on January 1, 2017.3. Indicate the income statement treatment of the gain or loss on redemption of debentures. Assume that 2017 income before taxes and before any gain or loss on redemption of debentures is $1.90 million, the income tax rate is 19%, and the weighted average number of common shares outstanding is 1.30 million.4.Calculate earnings per share.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

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.

Money-back guarantee

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 more

Zero-plagiarism guarantee

Each 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 more

Free-revision policy

Thanks 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 more

Privacy policy

Your 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 more

Fair-cooperation guarantee

By 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

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Order your essay today and save 25% with the discount code: THANKYOUPlace Order
+