On February 1, 2018, Sanford & Son issued 12% bonds dated
February 1, 2018, with a...
On February 1, 2018, Sanford & Son issued 12% bonds dated
February 1, 2018, with a face amount of $100,000. The bonds sold
for $117,160 and mature in 20 years. The effective interest rate
for these bonds was 10%. Interest is paid semiannually on July 31
and January 31. Sanford & Son's fiscal year is the calendar
year. Required: 1. Prepare the journal entry to record the bond
issuance on February 1, 2018. 2. Prepare the entry to record
interest...
On February 1, 2018, Strauss-Lombardi issued 10% bonds, dated
February 1, with a face amount of...
On February 1, 2018, Strauss-Lombardi issued 10% bonds, dated
February 1, with a face amount of $930,000. The bonds sold for
$855,382 and mature on January 31, 2038 (20 years). The market
yield for bonds of similar risk and maturity was 11%. Interest is
paid semiannually on July 31 and January 31. Strauss-Lombardi’s
fiscal year ends December 31. Required: 1. to 4. Prepare the
journal entry to record their issuance by Strauss-Lombardi on
February 1, 2018, interest on July 31,...
he following information is available about the entity’s
business transactions in May 2019.
May
1
Borrowed...
he following information is available about the entity’s
business transactions in May 2019.
May
1
Borrowed $300,000 from a bank.
2
Purchased inventory on credit from a supplier A/K, n/20,
$5,000.
4
Paid insurance for the next 12 months $6,000.
8
Paid the supplier A/K the full amount for inventory purchased on
2 May.
9
Owner withdrew $2,000 for personal use.
The following information is available about the entity’s
business transactions in May 2019.
May
1
Borrowed...
The following information is available about the entity’s
business transactions in May 2019.
May
1
Borrowed $300,000 from a bank.
2
Purchased inventory on credit from a supplier A/K, n/20,
$5,000.
4
Paid insurance for the next 12 months $6,000.
8
Paid the supplier A/K the full amount for inventory purchased on
2 May.
9
Owner withdrew $2,000 for personal use.
Required:
Prepare general journal entries to record the
transactions. Ignore GST.
On May 10, 2019, ABC Company purchased equipment for $12,000,
paid $5,000 cash and the remaining...
On May 10, 2019, ABC Company purchased equipment for $12,000,
paid $5,000 cash and the remaining on account. On May 15, 2019, the
company paid 40% of the amount due.
1) The credit side of May 10 entry should include: *
Equipment $12,000
Accounts Payable $7,000
Cash $2,800
All of the above
2) The entry of May 15 will include Account Payable of: *
$7,000
$4,200
$2,800
$4,800
3) What is the remaining balance due from the purchase of the...
On March 1, 2018, Stratford Lighting issued 10% bonds, dated
March 1, with a face amount...
On March 1, 2018, Stratford Lighting issued 10% bonds, dated
March 1, with a face amount of $780,000. The bonds sold for
$768,000 and mature on February 28, 2038 (20 years). Interest is
paid semiannually on August 31 and February 28. Stratford uses the
straight-line method and its fiscal year ends December 31.
Required:
1. to 4. Prepare the journal entry to record the
issuance of the bonds by Stratford Lighting on March 1, 2018,
interest on August 31, 2018,...
A Company prepares annual financial statements. On May 1, 2019,
the Company paid $60,000 in advance...
A Company prepares annual financial statements. On May 1, 2019,
the Company paid $60,000 in advance for a two-year insurance
policy. After the adjusting entry on December 31, 2019, what will X
Company's 2019 financial statements show?
Prepaid Insurance, $20,000; Insurance expense, $40,000
Prepaid Insurance, $0; Insurance expense, $60,000
Prepaid Insurance, $52,500; Insurance expense,
$7,500
Prepaid Insurance, $60,000; Insurance expense, $0
Prepaid Insurance, $40,000; Insurance expense, $20,000
Prepaid Insurance, $7,500; Insurance expense,
$52,500
X Company prepares annual financial statements. On May 1, 2019,
the Company paid $51,000 in advance...
X Company prepares annual financial statements. On May 1, 2019,
the Company paid $51,000 in advance for a two-year insurance
policy. After the adjusting entry on December 31, 2019, what will X
Company's 2019 financial statements show?
Prepaid Insurance, $6,375; Insurance expense,
$44,625
Prepaid Insurance, $44,625; Insurance expense,
$6,375
Prepaid Insurance, $34,000; Insurance expense, $17,000
Prepaid Insurance, $17,000; Insurance expense, $34,000
Prepaid Insurance, $51,000; Insurance expense, $0
Prepaid Insurance, $0; Insurance expense, $51,000
X Company prepares annual financial statements. On May 1, 2019,
the Company paid $42,000 in advance...
X Company prepares annual financial statements. On May 1, 2019,
the Company paid $42,000 in advance for a two-year insurance
policy. After the adjusting entry on December 31, 2019, what will X
Company's 2019 financial statements show?
A. Prepaid Insurance, $36,750; Insurance expense,
$5,250
B. Prepaid Insurance, $42,000; Insurance expense, $0
C. Prepaid Insurance, $28,000; Insurance expense, $14,000
D. Prepaid Insurance, $5,250; Insurance expense,
$36,750
E. Prepaid Insurance, $14,000; Insurance expense, $28,000
F. Prepaid Insurance, $0; Insurance expense, $42,000
February 1, 2017 Sold $300,000 10-year 10% bond at a yield of
8%. Interest is paid...
February 1, 2017 Sold $300,000 10-year 10% bond at a yield of
8%. Interest is paid semiannually on January 1 and July 1. Make
necessary entries for the sale of the bond as well as the interest
payments for the years 2017 through 2019. Use straight line method
of amortization.