Rochelle Co. owes $199,800 to Simmons Inc. The debt is a
10-year, 11% note. Because Rochelle...
Rochelle Co. owes $199,800 to Simmons Inc. The debt is a
10-year, 11% note. Because Rochelle Co. is in financial trouble,
Simmons Inc. agrees to accept some land and cancel the entire debt.
The land has a book value of $90,000 and a fair value of $140,000.
Prepare the journal entry on Rochelle books for debt
settlement.
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. Ahmed Co. owes SAR 433,000 to Merando Inc. The debt is a
10-year, 11% note....
. Ahmed Co. owes SAR 433,000 to Merando Inc. The debt is a
10-year, 11% note. Because Ahmed Co. is in financial trouble,
Merando Inc. agrees to accept some property and cancel the entire
debt. The property has a book value of SAR 150,000 and a fair value
of SAR 230,000. Prepare the journal entry on Ahmed 's books for
debt settlement.
Monty Corporation sells DVD players. The corporation also offers
its customers a 4-year warranty contract. During...
Monty Corporation sells DVD players. The corporation also offers
its customers a 4-year warranty contract. During 2020, Monty sold
20,000 warranty contracts at $81 each. The corporation spent
$169,000 servicing warranties during 2020, and it estimates that an
additional $845,000 will be spent in the future to service the
warranties.
Prepare Monty’s journal entry for the sale of contracts. Assume
the service costs are inventory costs. (If no entry is
required, select "No Entry" for the account titles and enter...
Marin Company owes $225,000 plus $20,200 of accrued interest to
Headland State Bank. The debt is...
Marin Company owes $225,000 plus $20,200 of accrued interest to
Headland State Bank. The debt is a 10-year, 10% note. During 2020,
Marin’s business deteriorated due to a faltering regional economy.
On December 31, 2020, Headland State Bank agrees to accept an old
machine and cancel the entire debt. The machine has a cost of
$317,000, accumulated depreciation of $174,350, and a fair value of
$202,000.
a) Prepare journal entries for Marin Company and Headland State
Bank to record this...
On October 1, 2020, Monty Equipment Company sold a
pecan-harvesting machine to Valco Brothers Farm, Inc....
On October 1, 2020, Monty Equipment Company sold a
pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a
cash payment Valco Brothers Farm gave Arden a 2-year, $144,800, 10%
note (a realistic rate of interest for a note of this type). The
note required interest to be paid annually on October 1. Monty’s
financial statements are prepared on a calendar-year basis.
Assuming Valco Brothers Farm fulfills all the terms of the note,
prepare the necessary journal entries for...
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...
Marin Company owes $225,000 plus $20,200 of accrued interest to
Headland State Bank. The debt is...
Marin Company owes $225,000 plus $20,200 of accrued interest to
Headland State Bank. The debt is a 10-year, 10% note. During 2020,
Marin’s business deteriorated due to a faltering regional economy.
On December 31, 2020, Headland State Bank agrees to accept an old
machine and cancel the entire debt. The machine has a cost of
$317,000, accumulated depreciation of $174,350, and a fair value of
$202,000.
a) Prepare journal entries for Marin Company and Headland State
Bank to record this...
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...
Monty Corporation began operations in 2020 and reported pretax
financial income of $228,000 for the year....
Monty Corporation began operations in 2020 and reported pretax
financial income of $228,000 for the year. Monty’s tax depreciation
exceeded its book depreciation by $38,000. Monty’s tax rate for
2020 and years thereafter is 30%. Assume this is the only
difference between Monty’s pretax financial income and taxable
income.
Prepare the journal entry to record the income tax expense,
deferred income taxes, and income taxes payable.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually....