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    Journal Entries

    Correcting entry to fix a direct writeoff mistake for bad debts

    J8) A company inappropriately used the direct writeoff method to book bad debts expense. Accounts written off and charged to expense were 150 in 2003, 250 in 2004 and 350 in 2005. Credit sales were 10,000 in 2003, 11,000 in 2004 and 12,000 in 2005. At Dec 2005, the company realizes it should have followed the allowance method an

    Long Term Contracts and Percentage-of-Completion Method

    Sloane Company contracted on 4/1/03 to construct a building for $2,700,000. The project was completed in 2005. Additional data follow: 2003 2004 2005 Costs incurred to date $ 600,000 $1,200,000 $1,860,000 Estimated cost to complete 1,000,000 600,000 ? Billings to date 500,000 1,900,000 2,700,000 C

    Leeds and Faster intercompany transactions

    Scenario: Scenario A Emily and Richard are majority shareholders and President and Vice President respectively of Leeds Holding Company Incorporated. A holding company is set up to own other companies and provide management and expertise. Recently, Emily and Richard have invested in Faster Distribution Company Incorporated,

    Aramis Company Recording Bad Debts: journal entry for write off, NRV

    At the end of 2007, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2008, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be collected, and management authorized its write-off. (a) Prepare the journal entry for Aramis

    Explanation of the business event

    For each journal entry, prepare an explanation of the business event that is being represented: a. Loan payable $35,000 Cash $7,000 Car $28,000 b. Accounts payable $13,450 Cash $13,450

    Journal Entries for the Given Transactions

    See attachment file. Common Stock Issue Based on the following data, prepare the journal entries for the issue of common stock under five scenarios: (1) Stock issued for cash at par value. (2) Stock issued for cash at stated value equal to par value. (3) Stock issued for cash with no par or stated value. (4) Stock issued i

    Preparing a Journal Entry: Devs Autoparts Company

    On August 31, 2008, Devs Autoparts Company sold $8,000 worth of parts to Metro Repair Company. The terms of the sale were n/90. Devs receivable policy is to start charging interest of 9% (annually) on all balances over 90 days. Interest is accrued monthly. It is now December 31, 2008, and Metro Repair Company has not paid the

    Accounting : Journal Entries

    1. Josh Beach contributed land, inventory, and $24,000 cash to a partnership. The land had a book value of $65,000 and a market value of $114, 000. The inventory had a book value of $60,000 and a market value of $56,000. The partnership also assumed a $50,000 note payable owed by Beach that was used originally to purchase the la

    Director of Accounting and Executive Director

    You are a Director of Accounting and your Executive Director has asked you to put together a training handout that will help non-finance department directors understand the accounting cycle. A really good strategy to use is to explain the accounting cycle, from start to finish.

    Littor Industries: Annual Interest Payaments

    Littor Industries issued a $100,000, 4-year, 11% note at face value to Forest Hills Bank on January 1, 2005, and received $100,000 cash. The notes requires annual interest payments each December 31. Prepare Littor's journal entries to record: (a) the issuance of the note and (b) the December 31 interest payment.

    Exchange Shares- Journal Entry

    S. Company exchanged 400 shares of Daily Company common stock, which Herman was holding as an investment, for equipment from West Company. The Daily Company common stock, which had been purchased by Herman for $50 per share, had a quoted market value of $58 per share at the date of exchange. The equipment had a recorded amount o

    The Mars Corporation: Journal Entries

    The Mars Corporation issued 2,000 shares of its $10 par value common stock for $70,000. The Mars Corporation also incurred $1,500 of costs associated with issuing the stock. Prepare The Mars Corporation's journal entry to record the issuance of the company's stock.

    Income Taxes Journal Entry

    Tazmania Inc. had pretax financial income of $154,000 in 2007. Included in the computation of that amount is insurance expense of $4,000 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $14,000. Prepare Tazmania's journal entry to record 2007 taxes, assuming

    Wage payable

    When actual wage rate paid to direct labor worker exceeds the standard wage rate, the journal entry would included: 1-Debit to wages payable;credit to labor rate variance 2-Debit to work in process;credit to labor rate variance 3-Debit to wages payable;debit to labor rate variance 4-Debit to work in process; debit to labor

    Premium Entries for No Doubt Company

    No Doubt Company includes one coupon in each box of soap powder that it packs and 10 coupons are redeemable for a premium (a kitchen utensil). In 2007, No Doubt Company purchased 8,800 premiums at 80 cents each an sold 110,000 boxes of soap powder at $3.30 per box. 44,000 coupons were presented for redemption in 2007. It is esti

    Jackson Company: Accounts & Notes payable. Prepare journal entries

    Described below are certain transactions of Jackson Company for 2007: a. On May 10, the company purchased goods from Hickory Company for $55,000, terms 2/10, n/30. Purchases and accounts payable are recorded at gross amounts. The invoice was paid on May 18. Jackson uses the periodic method for inventory purchases. b. On Ju

    Journal Entries for Purchased Merchandise

    Prepare the necessary general journal entries for the month of September for the Derby Company for each situation given below. Derby uses a perpetual inventory system. Oct. 5 Paid cash of $14,000 for operating expenses that were incurred and properly recorded in the previous period. 8 Purchased merchandise for $16,000

    Journal Entries

    The Calvin Company uses the allowance method to account for uncollectible accounts. Prepare the appropriate journal entries to record the following transactions during 2010. You may omit journal entry explanations. May 20 The account of Larry Taylor for $950 was deemed to be uncollectible and is written off as a bad debt.

    Analyze the effect of business transactions on the basic accounting equation.

    Business is booming for Dan Brown's home inspection business. He has been so busy the first month of business that he hasn't had time to keep up with his bookkeeping and has asked for your help. He has provided you with the detail regarding the following transactions: Date Transaction Dec 4 First week of inspec

    Direct Materials and Labor Variances

    Required: 1.) For direct materials: a.) Compute the direct materials price and quantity of variances. b.) Prepare journal entries to record the purchase of materials and the use of materials in production. 2.) For direct labor: a.) Compute the direct labor rate and efficiency variances.

    Journal entry for variance

    If a company records their inventory purchases at standard cost but also records purchase price variances, what journal entry would be recorded if a purchase of 5,000 widgets were bought at $8.00 having a standard cost of $8.15? Dr Cr _________________ $ ________ _________________ $ ________ _________________ $ ________

    Prepare entries for operating lease and capital lease

    Presented below are two independent situations. 1. Josh Car Rental leased a car to Bayfield Company for one year. Terms of the operation lease agreement call for monthly payments of $500. 2. On January 1, 2008, James Inc. entered into an agreement to lease 20 computers from Marcus Electronics. The terms of the lease agreem

    Greeve Corporation

    Greeve Corporation had the following stockholders' equity accounts on January 1, 2006: Common Stock ($1 par) $400,000, Paid-in Capital in Excess of Par Value $500,000, and Retained Earnings $100,000. In 2006, the company had the following treasury stock transactions. Mar. 1 Purchased 5,000 shares at $7 per share. June 1

    Adjusting and Reversing Entries

    The following list of accounts and their balances represents the unadjusted trial balance of Bly Company at December 31, 2007: Cash $ 30,890 Short-term Investment

    Journal entries - bond issuance, interest payment & amortization

    On July 1, 2006, Kingston Satellites issued $3,600,000 face value, 9%, 10-year bonds at $3,375,680. This price resulted in an effective-interest rate of 10% on the bonds. Kingston uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1. Instructions (Rou

    P5-36 Power Corporation Consolidation of Best Co after One Year of Ownership

    Please see attached file. P5-36 Consolidation Workpaper at End of First Year of Ownership Power Corporation acquired 75 percent of Best Company's ownership on January 1, 20X8, for $96,000. At that date, the fair value of Best's buildings and equipment was $20,000 more than book value. Buildings and equipme

    Thomas Company: journal entries for disposition of assets including depreciation

    Presented below are selected transactions at Thomas Company for 2006. Jan. 1 Retired a piece of machinery that was purchased on January 1, 1996. The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2003.The computer cost $35,