Recent Question

Hibbett Company does not segregate sales Ex. 1 English Company billed its customers a total of $1,890,000 for the month of November. The total includes a 5% state sales tax. Instructions (a) Determine the proper amount of revenue to report for the month. (b) Prepare the general journal entry to record the revenue and related liabilities for the month. Ex. 2 Hibbett Company does not segregate sales and sales taxes on its cash registe ...

Other / Other 20 Apr 2016

Describe how the market interest rate, relative to the contractual interest rate S-A E 1 Bonds are frequently issued at amounts greater or less than face value. Describe how the market interest rate, relative to the contractual interest rate, affects the selling price of bonds. Also explain the rationale for requiring an investor to pay accrued interest when a bond is purchased between interest payment dates. S-A E 2 When a bond sel ...

Other / Other 20 Apr 2016

The bonds pay semiannual interest and the interest payment due on June 30 Ex. 1 Presented below are three independent situations: (a) Howell Corporation purchased $350,000 of its bonds on June 30, 2011, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $339,500. The bonds pay semiannual interest and the interest payment due on June 30, 2011, has been made and recorded. (b) Justice, Inc. purc ...

Other / Other 20 Apr 2016

A method of amortizing bond discount or premium that allocates an equal amount each period 1. If a $1 million, 10%, 10-year bond issue was sold at 97, the cash proceeds from the issuance of the bonds amounted to $________________. 2. The ________________ of bonds is the face value of the bonds adjusted for bond discount or bond premium amortized up to the redemption date. a 3. The market price of a bond is obtained by discountin ...

Other / Other 20 Apr 2016

Determine the effect on net income and earnings per share Ex. 1 United Health is considering two alternatives for the financing of some high technology medical equipment. These two alternatives are: 1. Issue 50,000 ordinary shares with a $10 par value at $50 per share. 2. Issue $2,500,000, 10%, 10-year bonds at par. It is estimated that the company will earn $900,000 before interest and taxes as a result of acquiring the medical equ ...

Other / Other 20 Apr 2016

Prepare the current liability section of Howell Company's statement Ex. 1 Howell Company has the following selected accounts after posting adjusting entries: Accounts Payable € 55,000 Notes Payable, 3-month 80,000 Accumulated Depreciation—Equipment 14,000 Salary Payable 27,000 Notes Payable, 5-year, 8% 30,000 Estimated Warranty Liability 34,000 Salary Expense 6,000 Interest Payable 3,000 Mortgage Payable 200,000 S ...

Other / Other 20 Apr 2016

Prepare the entry to record the sale BE 1 Putman Company had cash sales of $81,375 (including taxes) for the month of June. Sales are subject to 8.5% sales tax. Prepare the entry to record the sale . BE 2 On January 1, 2011, Beltway Enterprises issued 9%, 5-year bonds with a face amount of €700,000 at par. Interest is payable semiannually on June 30 and December 31. Instructions Prepare the entries to record the issuance o ...

Other / Other 20 Apr 2016

Prepare the journal entries to record the mortgage loan on December 31 Ex. 1 Downey Corporation issues a ₤3,000,000, 12%, 20-year mortgage note payable on December 31, 2011, to obtain needed financing for the construction of a building addition. The terms provide for semiannual installment payments of ₤199,386 on June 30 and December 31. Instructions (a) Prepare the journal entries to record the mortgage loan on December 3 ...

Other / Other 20 Apr 2016

Prepare the entries on Markowitz’s books to record the sale BE 1 On December 1, Gilman Corporation borrowed $10,000 on a 90-day, 6% note. Prepare the entries to record the issuance of the note, the accrual of interest at year end, and the payment of the note. BE 2 During December 2011, Markowitz Publishing sold 2,500 12-month annual magazine subscriptions at a rate of $30 each. The first issues were mailed in February 2012. Pr ...

Other / Other 20 Apr 2016

Kentwood Company issued bonds with a face value BE 1 On January 1, 2011, Kentwood Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1 and July 1. Instructions a. Prepare the journal entry for the issuance assuming the bonds are issued at 97. b. Prepare the journal entry for the issuance assuming the bonds are issued at 102. BE 2 Delta Company issued bonds with a ...

Other / Other 20 Apr 2016