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Journal Entries

bond sale journal entry

Lakeland Homebuilders recently sold $400,000 worth of 8% semiannual bonds at 95 to J. Ferguson Underwriting. What would the journal entry look like to record the sale of the bonds? Entry Account&Description DEBIT CREDIT 1. Bonds Payable 400,000 Cash 400,000 2. Cash 380,000 Discount on

Barton Industries recently received an almost new semi-truck

See attached word document for the breakdown. Barton Industries recently received an almost new semi-truck and trailer valued at $165,200 in exchange for 4,130 shares of no-par common stock. Previously issued no-par common stock by Barton is currently trading in the open market for $30 per share. Which of the following would

Orange Pitt, Co. equity method journal entries

Orange Pitt, Co. purchased 22,000 shares of Greenline, Inc. common stock for $187,000 plus a 3% brokers fee of $5,610 on September 14, 2011. Greenline has 50,000 shares of common stock outstanding and its policies would be significantly influenced by Orange Pitt, Co. following the purchase. On November 15, 2011 Greenline declar

Governmental and not-for-profit accounting

Sales taxes should be recognized when the underlying event takes place. A state requires ''large'' merchants (i.e., those with sales over a specified dollar amount) to report and remit their sales taxes within fifteen days of the end of each month. It requires ''small'' merchants to report and remit their taxes within fifteen

accounting journal entries

Laughter Landscaping has the following independent cases at the end of the year on December 31, 2014. a. Each Friday, Laughter pays employees for the current week's work. The amount of the weekly payroll is $7,000 for a five-day workweek. This year December 31 falls on a Wednesday. a. Details of Prepaid insurance are shown in

closing temporary accounts; debits and credits; internal control; depreciation

1. At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required and (2) provide an example of the closing of an expense account, Rent Expense in the form of a journal entry. 2, One must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explai

Shares journal entries and Shareholder's equity

Primary Company was organized on January 2, 2010. It was authorized to issue 300,000, no-par value common shares and 150,000 shares of $1.50 no-par value cumulative preferred. During 2010, 100,000 common and 50,000 preferred shares were issued, but no dividends were declared. The following account balances were extracted from

Mickel's Shops" journal entry to correct the cut-off error

The auditor of Mikel's Shops obtained the following information when performing cut off testing procedures during their observation of Mikel's physical inventory count at December 31, 2009. Bill of Lading number 1235 1236 1237 1238 Date 12/31/09 12/31/09 1/2/10 1/2/10 Sales Price $12,000 $4,500 $18,000 $16,000 Cost of Goo

Redemption of bonds

Prepare journal entries for redemption of bonds. The situations presented here are independent of each other. Instructions For each situation prepare the appropriate journal entry for the redemption of the bonds. a. Thunder Corporation retired $130,000 face value, 12% bonds on June 30, 2007, at 102. The carrying value of t

This post addresses recording the disposal of an asset.

On January 1, 2004, Skyline Limousine Co. purchased a limousine at an acquisition cost of $28,000. Skyline depreciated the vehicle by the straight-line method using a 4-year service life and a $4,000 salvage value. The company's fiscal year ends on December 31. Instructions: Explain what you found to be the most challengin

Journal Entries to Correct Accounts

In reviewing the books of Unger Retailers inc., the auditor discovered certain errors that had occurred during 2013 and 2014. No errors were corrected during 2013. The errors are summarized below. (a) Beginning merchandise inventory (January 1, 2013) was understated by $8,640. (b) Merchandise costing $2,400 was sold for

depot and the asset retirement obligation

Acme Company purchases an oil tanker depot on January 1, 2012, at a cost of $828,000. Acme expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $96,600 to dismantle the depot and remove the tanks at the e

Fenton Company: Calculating imputed interest on non-interest-bearing note

On December 31, 2011, Fenton Company sold equipment to Denver, Inc., accepting a $275,000 noninterest-bearing note receivable in full payment on December 31, 2014. Denver, Inc., normally pays 12% for its borrowed funds. The equipment is carried in Fenton's perpetual inventory records at 65% of its cash selling price. 1.) Pre

Journal Entries for Transactions

On September 1, Howe Office Supply had an inventory of 30 calculators at a cost of $18 each.The company uses a perpetual inventory system. During September, the following transactions occurred. Sept 6: Purchased 80 calculators at $20 each from DeVito Co. for cash. Sept 9: Paid freight of $80 on calculators purchased from DeVit

4% Stock Dividend

Issued 410 shares of $80 par value preferred stock at par. Issued 640 shares of $80 par value preferred stock in exchange for land that had an appraised value of $81,600. Issued 21,000 shares of $4 par value common stock for $10 per share. Purchased 5,200 shares of common stock for the treasury at $10 per share. Sold 2,100 s

Entries for Stock Dividends and Stock Splits

1) (Entries for Stock Dividends and Stock Splits) The stockholders' equity accounts of G.K. Chesterton Company have the following balances on December 31, 2008. Common stock, $10 par, 310,000 shares issued and outstanding $3,100,000 Paid-in capital in excess of par 1,200,000 Retained earnings 5,6

Journal Entry to Record the Issuance of the Bonds

On July 1, 2011, Atwater Corporation issued $2,000,000 face value, 10%, 10-year bonds at $2,271,813. This price resulted in an effective-interest rate of 8% on the bonds. Atwater uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1. Prepare entries to

Write the journal entry for each transaction or adjustment.

Record transactions and adjustments. Prepare an answer sheet with the column headings shown aftr the following list of transactions. Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name and amount and indicating wh

Record entries & compute retained earnings

Johnston, Inc. engaged in the following transactions involving treasury stock: Feb. 10 Purchased for cash 17,000 shares of treasurey stock at a price of $25 per share. June 4 Reissued 6,000 shares of treasurey stock at a price of $33 per share. Dec. 22 Reissued 4,000 shares of treasure stock at a price of $22 per share.

Leonard Matson Determine the Segment Return on Assets

5. Leonard Matson completed these transactions during December of the current year: Prepare general journal entries to record these transactions. 9. A company allows its customers to use bank credit cards to charge purchases. When customers use the credit cards, the net amount is deposited in the company's checking account

Research any industry, business, or professional practice.

Research any industry, business, or professional practice. Write an Executive Summary discussing the business entity structure (for example, the advantages and disadvantages of the structure, liability issues and risks against which the business must protect itself against). Compare and discuss the difference of the company'

Prepare Income Statements of Flexibly Designed

This project should be completed using Excel (with formulas and linked data). The parameters of the project are below: 1. Prepare an Income Statement for the year ended 2011. This statement should be flexibly designed (formulas in cells). This should be a multi-step income statement (see video and/or exhibit 4.1 on pg. 4-5

Direct Costs for Trenton Glass Works

The following information pertains to Trenton Glass Works for the year just ended. Budgeted direct-labor cost: 70,000 hours (practical capacity) at $16 per hour Actual direct-labor cost: 80,000 hours at $17.50 per hour Budgeted manufacturing overhead: $997,500 Actual selling and administrative expenses: 432,0

Journal Entries When Factoring Receivables

Gipson Furniture factors $400,000 of receivables to Kwik Factors, Inc. Kwik Factors assesses a 3% service charge on the amount of receivables sold. Gipson Furniture factors its receivables regularly with Kwik Factors. What journal entry does Gipson make when factoring these receivables? A) B) C) D) An ana

Events occur for The Underwood Corporation

The following events occur for The Underwood Corporation during 2012 and 2013, its first two years of operations 12-Jun-12 Provide services to customers on account for $35,000. 17-Sep-12 Receive $20,000 from customers on account 31-Dec-12 Estimate that 40% of accounts receivable at

Journal entry for bad debt expense

1. A company had a normal balance of $10,000 in its Accounts Receivable account, and a normal balance of $500 in its Allowance for Doubtful Accounts account. During the year it had $500,000 in sales. At the end of the year it determined that 3.5% of sales would be uncollectible. Required: a. Prepare the adjusting entry t