On January 1, 2020, Pina Co. enters into a contract to sell a
customer a wiring...
On January 1, 2020, Pina Co. enters into a contract to sell a
customer a wiring base and shelving unit that sits on the base in
exchange for $2,800. The contract requires delivery of the base
first but states that payment for the base will not be made until
the shelving unit is delivered. Pina identifies two performance
obligations and allocates $1,120 of the transaction price to the
wiring base and the remainder to the shelving unit. The cost of...
Splish Company uses special strapping equipment in its packaging
business. The equipment was purchased in January...
Splish Company uses special strapping equipment in its packaging
business. The equipment was purchased in January 2016 for
$12,500,000 and had an estimated useful life of 8 years with no
salvage value. At December 31, 2017, new technology was introduced
that would accelerate the obsolescence of Splish’s equipment.
Splish’s controller estimates that expected future net cash flows
on the equipment will be $7,875,000 and that the fair value of the
equipment is $7,000,000. Splish intends to continue using the
equipment,...
Presented below is information related to equipment owned by
Whispering Company at December 31, 2017.
Cost...
Presented below is information related to equipment owned by
Whispering Company at December 31, 2017.
Cost
$10,350,000
Accumulated depreciation to date
1,150,000
Expected future net cash flows
8,050,000
Fair value
5,520,000
Assume that Whispering will continue to use this asset in the
future. As of December 31, 2017, the equipment has a remaining
useful life of 4 years.
Prepare the journal entry (if any) to record the impairment of
the asset at December 31, 2017. (If no entry is
required,...
Presented below is information related to equipment owned by
Cullumber Company at December 31, 2017. Cost...
Presented below is information related to equipment owned by
Cullumber Company at December 31, 2017. Cost $10,440,000
Accumulated depreciation to date 1,160,000 Expected future net cash
flows 8,120,000 Fair value 5,568,000 Cullumber intends to dispose
of the equipment in the coming year. It is expected that the cost
of disposal will be $23,200. As of December 31, 2017, the equipment
has a remaining useful life of 5 years. Prepare the journal entry
(if any) to record the impairment of the...
Presented below is information related to equipment owned by
Ivanhoe Company at December 31, 2017.
Cost ...
Presented below is information related to equipment owned by
Ivanhoe Company at December 31, 2017.
Cost $10,080,000
Accumulated depreciation to date
1,120,000
Expected future net cash flows
7,840,000
Fair value 5,376,000
Ivanhoe intends to dispose of the equipment in the coming year.
It is expected that the cost of disposal will be $22,400. As of
December 31, 2017, the equipment has a remaining useful life of 5
years.
Prepare the journal entry (if any) to...
Exercise 5-8
Presented below is information related to Pina Colada Corp. for
the month of January...
Exercise 5-8
Presented below is information related to Pina Colada Corp. for
the month of January 2019.
Ending inventory per
Insurance expense
$11,460
perpetual records
$22,890
Rent expense
20,190
Ending inventory actually
Salaries and wages expense
55,580
on hand
22,190
Sales discounts
12,350
Cost of goods sold
218,370
Sales returns and allowances
14,760
Freight-out
6,860
Sales revenue
419,300
a. Prepare the necessary adjusting entry for inventory.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually....
On January 1, 2019, Metlock, Inc. issued $554,500, 14%, 10-year
bonds at face value. Interest is...
On January 1, 2019, Metlock, Inc. issued $554,500, 14%, 10-year
bonds at face value. Interest is payable annually on January
1.
(a)
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1
(b)
Prepare the journal entry to record the accrual of interest on
December 31, 2019. (Credit account titles are
automatically indented when amount is...
On January 1, 2019, Metlock, Inc. issued $554,500, 14%, 10-year
bonds at face value. Interest is...
On January 1, 2019, Metlock, Inc. issued $554,500, 14%, 10-year
bonds at face value. Interest is payable annually on January
1.
(a)
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1
(b)
Prepare the journal entry to record the accrual of interest on
December 31, 2019. (Credit account titles are
automatically indented when amount is...
Oriole Company issued $640,000, 10%, 10-year bonds on December
31, 2019, for $570,000. Interest is payable...
Oriole Company issued $640,000, 10%, 10-year bonds on December
31, 2019, for $570,000. Interest is payable annually on December
31. Oriole Company uses the straight-line method to amortize bond
premium or discount.
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2019
Prepare the journal entry to record the payment of interest and
the discount...
The following amortization schedule is for Monty Ltd.’s
investment in Spangler Corp.’s $77,500, five-year bonds with...
The following amortization schedule is for Monty Ltd.’s
investment in Spangler Corp.’s $77,500, five-year bonds with a 8%
interest rate and a 6% yield, which were purchased on December 31,
2016, for $84,029:
Cash
Received
Interest
Income
Bond Premium
Amortized
Amortized Cost
of Bonds
Dec. 31, 2016
$84,029
Dec. 31, 2017
$6,200
$5,042
$1,158
82,871
Dec. 31, 2018
6,200
4,972
1,228
81,643
Dec. 31, 2019
6,200
4,899
1,301
80,342
Dec. 31, 2020
6,200
4,821
1,379
78,963
Dec. 31, 2021
6,200...