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Prepare journal entries to record the 2017 transactions and closing entries. Descriptions are not necessary.
Copper Corp. obtained a $500,000 loan from Last Chance Bank on January 1, 2016. It purchased a piece of heavy equipment for $450,000 on January 2, 2016.
Prepare the partial balance sheet of North Corp. at December 31, 2018 showing the finance lease balance assuming the December 31 lease payment has been made.
Why would investors pay a premium for a corporate bond? Why would a corporation issue its bonds at a discount?
Calculate the amount of interest paid in cash during 2015 and the amount of interest expense that will appear in the 2015 income statement.
Prepare a partial balance sheet at December 31, 2017 showing how the bonds payable and the premium on bonds should be shown on the balance sheet.
How much annual interest must the corporation pay? On what amount does the corporation pay?
Does the diagram illustrate the straight-line or effective interest method of bond premium and discount amortization? How can you tell?
Prepare a partial balance sheet showing the bond liability and discount on December 31, 2015 and 2016 assuming the bonds will be redeemed on December 31, 2017.
Zenith Manufacturing Company Limited received authorization to issue $8,000,000 3-year, 12-per cent bonds.
Calculate the amount of interest expense shown in the income statement at December 31, 2015. Is this amount the same as cash interest paid by Esther?
The 9% bonds were authorized on July 1, 2015. Interest is paid semiannually on June 30 and December 31.
The bonds are issued at 106 on April 1, 2015. Prepare the journal entries to record the sale of the bonds on April 1, 2015.
On January 1, 2015, Pete's Planes Inc. was authorized to issue 5-year, $500,000, 12% bonds. Interest was payable on June 30 and December 31.
On January 1, 2015, Beacon issued $300,000 of bonds for $272,263. On this date, the market rate of interest was 16%.
Calculate the amount of interest expense shown in the income statement at December 31, 2018. Is this amount the same as cash paid by Tron in 2018?
Record all necessary entries for the period July 2, 2015 to July 2, 2016 inclusive, including December 31, 2015, the year-end of the company.
What is the balance of the Bond Discount account in the general ledger at December 31, 2015?
The bonds were authorized on April 1, 2015 but not issued until July 1, 2015. Interest is paid semi-annually on April 1 and October 1.
Paid the semi-annual interest on the issued bonds and made an entry to record straight-line amortization.
If one of management's objectives is to maximize 2016 net income, what method should be adopted?
Calculate the cost of the machine that remains to be depreciated at January 1, 2018 based on the new estimates.
The computer software has an estimated useful life of three years and no residual value. It will be amortized using the double-declining balance method.
Smith Corporation purchases merchandize on account from a supplier on June 30, 2016 for $4,000 plus GST (5%).
Jan. 8 Sold $8,000 of paint to a customer on credit and added GST. Cost of the pain sold was $3,000. Latex uses the perpetual inventory method.