Questions -
Q1. Oxford Inc. issues $5.83 million, 5-year, 10% bonds at 103, with interest payable on January 1. The straight-line method is used to amortize bond premium.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2014.
(b) Prepare the journal entry to record interest expense and bond premium amortization on December 31, 2014, assuming no previous accrual of interest.
Q2. RL Photography reported net income of $190,700 for 2014. Included in the income statement were depreciation expense of $12,014, patent amortization expense of $7,628, and a gain on disposal of plant assets of $6,865. RL's comparative balance sheets show the following balances.
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12/31/14
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12/31/13
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Accounts receivable
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$40,047
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$51,489
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Accounts payable
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17,544
|
11,442
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Calculate net cash provided by operating activities for RL Photography.