Question

Question 3: Liabilities (11 marks) The following event took place in 2019: On 2 January, Survivor...

Question 3: Liabilities

The following event took place in 2019:

On 2 January, Survivor Ltd issued a prospectus to invite applications for 2,000 $250 6% debentures for 8 years, Interest payable half-yearly. The debentures were payable in full on application. All debentures were applied for by 31 March. Allotment took place on 15 April.

At 31 December 2019 Survivor Ltd's employees earned wages of $20,000. Payroll deductions related to these wages were $1,400 for a health fund, $1,900 for PAYG withheld tax, and $1,800 for superannuation. Assume that wages earned during December 2019 will be paid during January 2020.

Required

  1. Prepare the general journal entries to record the event on 15 April 2019.
  1. Prepare the general journal entries to record the redemption of the debentures at maturity on 16 April 2027.

  1. Prepare the adjusting journal entries to record wages expense at 31 December 2020.

Homework Answers

Answer #1

ANSWER:

=================

DEAR STUDENT,

IF YOU HAVE ANY QUERY PLEASE ASK ME IN THE COMMENT BOX,I AM HERE TO HELP YOU.PLEASE GIVE ME POSITIVE RATING..

****************THANK YOU******************

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 3: Liabilities (11 marks) The following event took place in 2019: On 2 January, Survivor...
Question 3: Liabilities The following event took place in 2019: On 2 January, Survivor Ltd issued a prospectus to invite applications for 2,000 $250 6% debentures for 8 years, Interest payable half-yearly. The debentures were payable in full on application. All debentures were applied for by 31 March. Allotment took place on 15 April. At 31 December 2019 Survivor Ltd's employees earned wages of $20,000. Payroll deductions related to these wages were $1,400 for a health fund, $1,900 for PAYG...
Question 1 (7 marks) (Note this question is from the Week 2 Tutorial) ABC Ltd was...
Question 1 (Note this question is from the Week 2 Tutorial) ABC Ltd was registered on 30 June 2019. The next day the directors issued a prospectus inviting applicants for 400,000 ordinary shares with an issue price of $2. The shares were payable in full on application. By 31 July 2019, the company had received 500,000 applications, together with the application monies. The directors allotted 400,000 shares on 1 August 2019 and returned the money for additional applications. Required: (a)...
ABC Ltd purchases equipment for $1,000,000 on January 2, 2019. The equipment has a useful life...
ABC Ltd purchases equipment for $1,000,000 on January 2, 2019. The equipment has a useful life of five years, is depreciated using the straight‐line method of depreciation, and its residual value is zero. ABC chooses the revaluation model for its equipment over the life of equipment. The fair value of equipment at 31 December 2019 (the end of reporting period of ABC Ltd) is $950,000. The fair value of equipment at 31 December 2020 is $570,000. Indicators of impairment were...
Example #3, On January 1, 2019 a company issues 100 bonds, each for $1,000, for par,...
Example #3, On January 1, 2019 a company issues 100 bonds, each for $1,000, for par, as the interest rate on the bond (stated/coupon rate) is 4% and the market rate is also 4%.  They then used this cash to purchase an automobile for $100,000 cash.  The bond is to be paid in at the end of THREE years (December 31, 2021). PREPARE THE JOURNAL ENTRIES FOR 2019: Date Account Name Debit Credit 1/1/2019 12/31/2019 PREPARE THE JOURNAL ENTRIES FOR 2020: Date...
On January 1, 2019, The Pangborn Company issued $100,000 of its ten-year, 6% bonds payable at...
On January 1, 2019, The Pangborn Company issued $100,000 of its ten-year, 6% bonds payable at $108,000 to yield a market rate of 5%. The bonds were dated January 1, 2019, and interest is paid semiannually on each June 30 and each December 31. The effective interest method is used for amortization and no adjusting journal entries were made during the year. Prepare the journal entry for the sale of the bonds. Prepare the journal entry to record the first...
On 1 January Petal Ltd issued $98,000 9% unsecured notes at face value. Interest is payable...
On 1 January Petal Ltd issued $98,000 9% unsecured notes at face value. Interest is payable half-yearly on 1 July and 1 January. Interest is not accrued on 30 June. Petal Ltd's year-end is 31 December.    Required Prepare journal entries to record these events: (a) the issue of the unsecured notes.(b) the payment of interest on 1 July. (c) After paying interest for the year, Petal Ltd redeemed $134,000 face value, 13% debentures on 30 June 2016 at 103The...
Stadium Manufacturing has the following data available for its September 30, 2019, payroll: Wages earned $246,000...
Stadium Manufacturing has the following data available for its September 30, 2019, payroll: Wages earned $246,000 * Federal income taxes withheld 62,200   * All subject to Social Security and Medicare matching and withholding of 6.2% and 1.45%, respectively. Federal unemployment taxes of 0.80% and state unemployment taxes of 1.20% are payable on $231,000 of the wages earned. Paychecks won’t be written until Oct 5. 1.Prepare the Sept 30 journal entry for wages and withholdings . 2. Prepare the Sept 30...
On January 1, 2019, Mancunian Corp. purchased 10% bonds, with a $200,000 face value, for $218,492.52....
On January 1, 2019, Mancunian Corp. purchased 10% bonds, with a $200,000 face value, for $218,492.52. This price implies an 8% yield to Mancunian. The bonds pay interest on December 31 of each year. Mancunian uses the effective-interest method and classifies the bonds as available for sale securities. The fair value of the bonds on December 31, 2019 equals $217,200. The fair value of the bonds on December 31, 2020 equals $208,340. Prepare the journal entries to: 1. Record the...
On January 2, 2016, Prebish Corporation issued $1,500,000 of 10% bonds to yield 11% due December...
On January 2, 2016, Prebish Corporation issued $1,500,000 of 10% bonds to yield 11% due December 31, 2025. Interest on the bonds is payable annually, each December 31. The bonds are callable at 101 (i.e., at 101% of the face amount) and on January 2, 2019, Prebish called $1,500,000 face amount of the bonds and retired them. (100 POINTS) Instructions Determine the price of the Prebish bonds, when issued on January 2, 2016. Prepare an Amortization Schedule for 2016-2020 for...
On January 1, 2017, Eagle borrows $31,000 cash by signing a four-year, 8% installment note. The...
On January 1, 2017, Eagle borrows $31,000 cash by signing a four-year, 8% installment note. The note requires four equal payments of $9,360, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. Prepare the journal entries for Eagle to record the loan on January 1, 2017, and the four payments from December 31, 2017, through December 31, 2020.    No Date General Journal Debit Credit 1 Jan 01, 2017 Cash 31,000 31,000 2...