AB 116

AB 116 WEEK 5 Talkington Electronics issues a 429500 10 10year mortgage note on December 31 2013 The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for semiannual installment payments, exclusive of real estate taxes and insurance, of $34,464. Payments are due June 30 and December 31. Prepare the entries for (1) the loan and (2) the first two installment payments. (Credit account titles

5 Other / Other strayer university / AB 116 30 Oct 2015

AB 116 WEEK 5 On July 1 2014 Flanagin Corporation issued 1800400 10 10year bonds at 2,045,086. This price resulted in an effective-interest rate of 8 on the bonds. Flanagin uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1. Prepare the journal entry to record the issuance of the bonds on July 1, 2014. (Credit account titles are automatically indented when amount is ent

6 Other / Other strayer university / AB 116 30 Oct 2015

AB 116 WEEK 5Problem 15 1A On May 1 2014 Herron Corp. issued 457200 6 5year bonds at face value. The bonds were dated May 1, 2014, and pay interest semiannually on May 1 and November 1. Financial statements are prepared annually on December 31. 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 Debi

5 Other / Other strayer university / AB 116 30 Oct 2015

AB 116 WEEK 4 Problem 11 5A Your answer is correct. For the year ended December 31 2014 Denkinger Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries $215,000 Electricians’ wages 351,000 Total $566,000 Deductions: FICA taxes $38,215 Federal income taxes withheld 183,000 State income taxes withheld (3%) 14,716 United Fund contri

6 Other / Other strayer university / AB 116 29 Oct 2015

AB 116 WEEK 4 Problem 11 3A Mann Hardware has four employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2014, are presented below. Employee Hours Worked Hourly Rate Federal Income Tax Withholdings United Fund Ben Abel 40 $15 $? $5.00 Rita Hager 41 16 ? 5.00 Jack Never 44 13 60.00 8.00 Sue Perez 46 13 61.00 5.00

6 Other / Other strayer university / AB 116 29 Oct 2015

AB 116 WEEK 4 Problem 11 1A On January 1 2014 the ledger of Accardo Company contains the following liability accounts. Accounts Payable $51,130 Sales Taxes Payable 7,920 Unearned Service Revenue 15,850 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $22,680, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $10,180. (Credit Serv

6 Other / Other strayer university / AB 116 29 Oct 2015

AB 116 WEEK 3 Problem 10 2A In recent years Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized as follows. Bus Acquired Cost Salvage Value Useful Life in Years Depreciation Method 1 1/1/12 $ 99,000 $ 7,600 4 Straight-line 2

3 Other / Other strayer university / AB 116 29 Oct 2015

AB 116 WEEK 3 Problem 10 5A At December 31 2014 Grand Company reported the following as plant assets. Land $ 4,113,000 Buildings $28,150,000 Less: Accumulated depreciation-buildings 11,175,000 16,975,000 Equipment 48,658,000 Less: Accumulated depreciation-equipment 4,577,000 44,081,000 Total plant assets $65,169,000 During 2015, the following selected cash transactions occurred. April 1 Purchased land for $2,028,00

7 Other / Other strayer university / AB 116 29 Oct 2015

AB 116 WEEK 3 Problem 10 7A The intangible assets section of Sappelt Company at December 31 2014 is presented below. Patents ($61,600 cost less $6,160 amortization) $55,440 Franchises ($44,600 cost less $17,840 amortization) 26,760 Total $82,200 The patent was acquired in January 2014 and has a useful life of 10 years. The franchise was acquired in January 2011 and also has a useful life of 10 years. The following cash transactions

6 Other / Other strayer university / AB 116 29 Oct 2015

AB 116 WEEK 3 Ceda Co. has equipment that cost 76 480 and that has been depreciated 50130. Record the disposal under the following assumptions. (a) It was scrapped as having no value. (b) It was sold for $18,280. (c) It was sold for $29,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

3 Other / Other strayer university / AB 116 29 Oct 2015