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Journal Entries

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

Installment Sale Journal Entry

LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2011. In payment for the $24 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 12%. 1. Prepare the journal entry for LC

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

Max Weinberg Company: Correct errors by reversing the incorrect entry

See the attached file. Max Weinberg Company discovered the following errors made in January 2008. A payment of Salaries Expense of $600 was debited to Equipment and credited to Cash, both for $600. A collection of $1,000 from a client on account was debited to Cash $100 and credited to Service Revenue $100. T

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.

Journal Entries for Sale of Bonds and payment of Interest

Simon issues four-year bonds with a $50,000 par value on June 1, 2011, at a price of $47,974. The annual contract rate is 7%, and interest is paid semiannually on November 30 and May 31. 1. Prepare journal entries to record the first two interest payments and to accrue interest as of December 31, 2011.

Journalize Entries Equipt Disposal

Sam Company. has delivery equipment that cost $55,000 and has been depreciated $30,000. Instructions Record journal entries for the disposal under the following assumptions. (a) It was scrapped as having no value. No money was received or paid. (b) It was sold for $27,000. (c) It was sold for $15,000.

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

Transaction analysis for sale of a machine

When a machine having a net book value of $5,000 is sold for $4,000: a. current assets increase, equipment (net) increases, and net income increases. b. current assets increase, equipment (net) decreases, and net income increases. c. current assets increase, equipment (net) decreases, and net income decreases. d. cur

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 Estimated Warranty

Bombeck Company sells a product for $1,500. When the customer buys it, Bombeck provides a one-year warranty. Bombeck sold 120 products during 2010. Based on analysis of past warranty records, Bombeck estimates that repairs will average 3% of total sales. Required: 1. Prepare a journal entry to record the estimated liabilit

Journal Entry for Wage Accrual and Reversal

What is the journal entry for this: August 31 falls on a Thursday. On Friday, September 1, the part-time employee John J. Jones was paid $250 or $50 per day for a five-day work week which ended that Friday.

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

Prepare the journal entry to record the change in principle.

E12-13 AS A LONG-TERM INVESTMENT AT THE BEGINNING OF THE FISCAL YEAR, FLORISTS INTERNATIONAL PURCHASED 30 % OF NURSERY SUPPLIES INC.'S 8 MILLION SHARES FOR $56 MILLION. THE FAIR VALUE AND BOOK VALUE WERE THE SAME AT THAT TIME. DURING THE YEAR, NURSERY SUPPLIES EARNED NET INCOME OF $40 MILLION AND DISTRIBUTED CASH DIVIDENDS OF

Parent Company Entries Three Methods

Problem 4-1 Parent Company Entries, Three Methods On Jan 1,2004, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long term investment. The purchase price of $4,972,000 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following:

P2-1 Consolidation

P2-1 Consolidation Phillips Solina Current Assets $180,000.00 $85,000.00 Plant & equipment (net) $450,000.00 $140,000.00 Total Assets $630,000.00 $225,000.00 Total Liabilities $95,000 $35,000 Common Stock, $10 par value

P14-1A Carolinas Company Journal Entries

On January 1, 2010, Carolinas Corporation had the following stockholders' equity accounts. Common Stock ($20 par value, 60,000 shares issued and outstanding) - $1,200,000 Paid-in Capital in Excess of Par Value - $200,000 Retained Earnings - $600,000 During the year, the following transactions occurred. Feb. 1 - Declar