Given P14 05 Given Data P14 05 Cromley Motor Products Bond I

Given P14 05given Data P14 05cromley Motor Productsbond Issue By Crom

Given P14 05given Data P14 05cromley Motor Productsbond Issue By Crom

Given P14-05 Given Data P14-05: CROMLEY MOTOR PRODUCTS Bond issue by Cromley Motor Products $ 80,000,000 Bond issue (years) 4 Bond issue interest rate 9% Bond annual yield 10% Long-term investment by Barnwell Industries $ 80,000 P14-05 Student Name: Class: Problem 14-05 Requirement 1: Cromley Motor Products Interest Principal Present value (price) of the bonds Requirement 2: CROMLEY MOTOR PRODUCTS Amortization Schedule Cash Effective Payment Interest Increase in Outstanding 4.5% 5% Balance Balance rounded BARNWELL INDUSTRIES Amortization Schedule Cash Effective Interest Interest Increase in Outstanding 4.5% 5% Balance Balance * Jack Terry: HINT: Round this cell down to bring Outstanding Balance to $80,000.

Jack Terry: Hint: Use the =Round function with the formulas in this column, rounding to zero decimal places. x: Enter appropriate data in yellow cells. Your totals will be verified. *rounded Requirement 3: General Journal Account Debit Credit February 1, 2013 (Cromley) Cash Discount on bonds payable Bonds payable February 1, 2013 (Barnwell) Bond investment Discount on bond investment Cash Requirement 4: General Journal Account Debit Credit July 31, 2013 (Cromley) Interest expense x: Enter appropriate data in yellow cells. Your entries will be verified. Jack Terry: Hint: Use the =Round function with the formulas in this column, rounding to zero decimal places. x: Enter appropriate data in yellow cells.

Your totals will be verified. Round this number to the nearest dollar. x: Enter appropriate data in yellow cells. Your entries will be verified. Jack Terry: Hint: Use the =Round function with this formula, rounding to zero decimal places. Jack Terry: HINT: Round this cell down to bring Outstanding Balance to $80,000,000.

Discount on bonds payable Cash July 31, 2013 (Barnwell) Cash Discount on bond investment Interest revenue December 31, 2013 (Cromley) Interest expense Discount on bonds payable Interest payable December 31, 2013 (Barnwell) Interest receivable Discount bond on investment Interest revenue January 31, 2014 (Cromley) Interest expense Interest payable Discount on bonds payable Cash January 31, 2014 (Barnwell) Cash Discount on bond investment Interest receivable Interest revenue July 31, 2014 (Cromley) Interest expense Discount on bonds payable Cash July 31, 2014 (Barnwell) Cash Discount on bond investment Interest revenue December 31, 2014 (Cromley) Interest expense Discount on bonds payable Interest payable December 31, 2014 (Barnwell) Interest receivable Discount on bond investment Interest revenue January 31, 2015 (Cromley) Interest expense Interest payable Discount on bonds payable Cash January 31, 2015 (Barnwell) Cash Discount on bond investment Interest receivable Interest revenue Given P16-05 Given Data P16-05: DEVILLE COMPANY Pretax accounting income $350,000 $270,000 $340,000 $380, Installment sale $50, Cash collected on installment $20,000 $25,000 $5, Interest from investments $15, Enacted tax rate 30% 30% 25% 25% P16-05 Student Name: Class: Problem 16-05 DEVILLE COMPANY Calculations Pretax accounting income Installment sales Municipal bond interest Taxable income Tax rate Income tax payable Cumulative Temporary Difference Temporary differences: x: Enter appropriate data in yellow cells.

Your answers for "Cumulative Temporary Difference" will be verified. x: Enter appropriate data in yellow cells. Your answers for "Income tax payable" will be verified. Cumulative difference Tax rate Year-end balance Previous balance Credit/(debit) DEVILLE COMPANY General Journal Account Debit Credit Journal entry at the end of 2013 Income tax expense x: Enter appropriate data in yellow cells. Your entries will be verified. x: Enter appropriate data in yellow cells. Your answers for "Credit/debit" will be verified.

Deferred tax liability Income tax payable Journal entry at the end of 2014 Income tax expense Deferred tax liability Income tax payable Journal entry at the end of 2015 Income tax expense Deferred tax liability Income tax payable Journal entry at the end of 2016 Income tax expense Deferred tax liability Income tax payable M3_A2: The following needs to be added in the assignment using the correct in text citation as well as the correct APA reference style which I have included at the end of this page. Either way, hybrid cars have been hitting the streets in greater and greater numbers. Conscious that carbon dioxide released from the burning of fossil fuels is driving global warming (Chapter 25), many drivers have opted for hybrids because their fuel efficiency makes them relatively environmentally friendly.

Others are looking to save money at the pump or want the convenience of filling up half as often. What exactly is a hybrid car and how does it work? Hybrid cars run on a combination of gasoline and electricity. They have a gasoline engine, an electric motor, and a battery that powers the electric motor. Hybrids are fuel-efficient largely because the electric motor helps to power the car.

How this happens depends on the specific hybrid. Some hybrids run purely on electricity at low speeds—the gasoline engine turns on only at higher speeds. The electric motor also provides a boost during rapid acceleration or whenever more power is needed—such as when going up a steep hill. In other hybrids the electric motor kicks in at high speeds to assist the gas engine. The beauty of the hybrid's electric motor is that its battery charges every time the car brakes—that is, as the car slows, some of the vehicle's kinetic energy is captured by the battery rather than being lost to the environment.

Gasoline can also be used to recharge the battery. Consequently, hybrids, unlike earlier generations of electric cars, never need to be plugged in. Several other hybrid features contribute to fuel efficiency. For example, the gas engine turns off during stops—this is why hybrids are eerily quiet at red lights. The engine starts up again the moment the accelerator is pressed.

In addition, hybrids have been designed to be aerodynamically efficient so as to reduce the energy loss to air drag. The end result is that hybrids get 50, 60, even close to 70 miles per gallon for some models—a lot more than the 20 or 30 miles per gallon you get with nonhybrids and a huge increase over gas-guzzlers like SUVs (they have gas mileages in the teens). To encourage consumers to go with environmentally friendly, fuel-efficient hybrids, the federal government offers a tax deduction for all hybrid purchases (although this will be phased out after 2006). Some state and city governments have also started to offer incentives. In Los Angeles, San Jose, and Albuquerque, you can park your hybrid without feeding the meter.

Connecticut waives sales tax on hybrid purchases, and several other states offer income tax credits. A number of states also allow solo hybrid drivers to use high occupancy vehicle—“carpool‗lanes. IN TEXT CITATION: (Hewitt, Lyons, Suchocki, & Yeh, 2006, p. 492) REFERENCE: Hewitt, P. G., Lyons, S.

A., Suchocki, J. A., & Yeh, J. (2006). Ecosystems and Environment. In Conceptual Integrated Science [VitalSource Bookshelf version] (p. 492). doi:

Paper For Above instruction

Analysis of Bond Issues, Tax Implications, and Hybrid Car Technologies

This comprehensive paper addresses three interconnected financial and environmental topics: the valuation and accounting treatment of bond issues by Cromley Motor Products, the tax implications associated with Deville Company’s temporary differences, and the technological and environmental advantages of hybrid vehicles. Each section provides an in-depth analysis supported by relevant financial principles, accounting standards, and environmental science literature.

Part 1: Bond Issue by Cromley Motor Products

The bond issue undertaken by Cromley Motor Products involves an issuance of $80 million over a four-year period at an interest rate of 9%, with an annual yield of 10%. The difference between the coupon rate and the yield indicates that the bonds are likely issued at a discount, which affects their present value. The valuation process involves calculating the present value of future cash flows, considering the market yield, and adjusting for the bond's premium or discount.

Using present value formulas, the price of the bonds is computed by discounting the annual interest payments and the principal repayment at the market rate of 10%. The interest payment each year is 9% of $80,000,000, equaling $7.2 million. The present value of these payments, along with the present value of the principal amount, determines the bond's issue price. Accounting for amortization of the bond discount over the life of the bonds aligns with standard accounting practices under GAAP (Financial Accounting Standards Board [FASB], 2014).

Part 2: Amortization Schedules and Journal Entries

The amortization schedules for both Cromley and Barnwell Industries illustrate how interest expense and cash payments are recorded over time. For Cromley, the interest expense is calculated using the effective interest method, which ensures that interest expense reflects the yield at issuance. The amortization of discounts increases the book value of the bonds toward the face amount.

The journal entries for bond issuance, interest payments, and amortization involve debiting cash for received amounts, crediting bonds payable for the principal amount, and recognizing interest expense adjusted for the amortized portion of discounts or premiums. For Barnwell’s investment, the purchase at a discount is recorded as an investment asset, with subsequent adjustments based on amortization schedules.

Part 3: Tax Implications and Temporary Differences

Deville Company’s tax accounting reflects complexities such as installment sales, municipal bond interest, and various temporary differences, which lead to deferred tax liabilities and assets. The calculation involves identifying temporary differences between book income and taxable income, applying applicable tax rates, and recording deferred taxes accordingly (Kieso, Weygandt, & Warfield, 2019).

The cumulative temporary differences influence the deferred tax accounts, affecting the journal entries for each fiscal year. As temporary differences reverse, the deferred tax liability decreases, and current income tax payable is adjusted to reflect the taxable income for that period (Gibson, 2018).

Part 4: Hybrid Cars – Technological and Environmental Aspects

Hybrid vehicles represent a significant advancement in environmentally friendly transportation technology. They operate on a combination of gasoline and electric power, capturing and utilizing kinetic energy through regenerative braking systems, which charge the battery (Hewitt, Lyons, Suchocki, & Yeh, 2006). Hybrids enhance fuel efficiency by shutting down the internal combustion engine during stops and aiding power during acceleration, contributing to miles per gallon (MPG) ratings that sometimes reach 70 MPG—substantially better than conventional vehicles.

The design considerations include aerodynamic efficiency, power management systems, and battery technology. Government incentives, such as tax credits and high-occupancy vehicle lane access, further encourage adoption. The environmental benefits of hybrids are notable: they reduce CO2 emissions, decrease reliance on fossil fuels, and foster sustainable transportation practices (Hewitt et al., 2006). Their ability to recharge through braking and engine-driven means means they do not require external charging, making them practical for everyday use.

Conclusion

This integrated analysis illustrates the importance of sound financial practices in bond issuance and investment, the significance of understanding comprehensive tax strategies for companies, and the transformative role of hybrid vehicle technology in achieving environmental sustainability. The convergence of accounting principles, environmental science, and technological innovation highlights the interconnectedness of modern financial and ecological systems. As businesses and consumers increasingly prioritize sustainability and fiscal responsibility, mastery of these domains becomes essential for future decision-making.

References

• Gibson, C. H. (2018). Financial Reporting & Analysis (13th ed.). Cengage Learning.
• Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2019). Intermediate Accounting (16th ed.). Wiley.
• Financial Accounting Standards Board (FASB). (2014). Accounting Standards Codification (ASC) 835: Interest — Overall. FASB.
• Hewitt, P. G., Lyons, S. A., Suchocki, J. A., & Yeh, J. (2006). Ecosystems and environment. In C. I. Science, Conceptual integrated science (pp. 492). Wiley.