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Journal Entries

Accounting - Financial Reporting

ACCT 731 P22 Equipment that cost $80,000 and has accumulated depreciation of $63,000 is exchanged for similar equipment with a fair value of $35,000 and $15,000 cash is received. The exchange lacked commercial substance. Directions: Respond to these questions on a separate Excel spreads

Requirements depreciation, Bonds with journal entries

Problem Two (Chapter 11): On January 1, 2011, Morrow Inc. purchased a spooler at a cost of $40,000. The equipment is expected to last eight years and have a residual value of $4,000. During its eight-year life, the equipment is expected to produce 250,000 units of product. In 2011 and 2012, 42,000 and 76,000 units respectively

Siburo Company: Prepare journal entries

*E11-19 Siburo Company issued $300,000, 11%, 10-year bonds on January 1, 2008, for $318,694. This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable semi-annually on July 1 and January 1. Siburo uses the effective-interest method to amortize bond premium or discount. Instructions: Prepare

Detailed analysis on the journalization of payroll transactions.

Kelsey Gunn is the only employee of Arsenault Company. His pay rate is $23.00 per hour with an overtime rate of 1 and 1/2 times for hours over 40 in a work week. For the week ending March 31,2010, he worked 48 hour. Calculate the gross pay for the week using the overtime premium approach to calculate gross pay. Since rthe compa

Analyzing and Journalizing Payroll Transaction

On December 31, 2010 Karmansky Co. needed to record its accrued wages for year-end. December 31 is a Tuesday, and Karmansky Co. must account for two days of wages. The company operates on a five-day workweek, the prior week's gross pay(December 26 payday) was $32,650, and the net pay was $21,330. Journalize the adjusting entry

Journalize Herington's admission to the firm of kasper and herington

E12-4 F. Calvert and G. Powers have capital balances on January 1 of $50,000 and $40,000 , respectively. The partnership income-sharing agreement provides for (1) annual salaries of $20,000 for Calvert and $12,000 for Powers, (2)interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by

Job Cost Journal Entries and T-Account

20-11 Shown below are the job cost related accounts for the law firm of Barnes, King, and Morton and their manufacturing equivalents: Law Firm Accounts Manufacturing Firm Accounts Supplies Raw Materials Salaries Payable Factory Wages Payable Operating Overhead Manufacturing Overhead Work

Entries for Stock Dividends and Stock Splits: Lawrence Company

The stockholder's equity accounts of Lawrence Company have the following balance on December 31, 2010. Common stock, $10 par, 274,000 shares issued and outstanding $2,740,000, Paid-in capital in excess of par $1,200,000, Retained Earnings $5,600,000. Shares of Lawrence Company stock are currently selling on the Midwest Stock Ex

E17-12 (Journal Entries for Fair Value and Equity Methods)

E17-12 (Journal Entries for Fair Value and Equity Methods) Situation 1 Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2007. On June 30, Martinez declared and paid a $75,000 cash dividend. On December 31, Martinez reported net income of

Allocated vs. Actual Overhead Directly to Cost of Goods Sold

Jacobs Company manufactures refrigerators. The company uses a budgeted indirect-cost rate for its manufacturing operations and during 2005 allocated $1,000,000 to work-in-process inventory. Actual overhead incurred was $1,100,000. Ending balances in the following accounts are: Work in Process $100,000 Finished Goo

Business Accounting

Ex 14-19 Ingalls Company. sells $300,000 of 10% bonds on February 1, 2003. The bonds pay interest on August 1 and February 1. The due date of the bonds is August 1, 2006. The bonds yield 12%. The company has a year end of December 31. Show the journal entries required on the following dates: a. February 1, 2003 b. August 1

Issuance of Bonds with Stock Warrants

On May 1, 2007, Friendly Company issued 2,000 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 98, but the market value of the warrants cannot be determined. a. Prepare the entry to record the issuance of the bonds and warrants. b. Assume

Preferred Stock Entries and Dividends

ABC Corporation has 10,000 shares of $100 par value, 8%, preferred stock and 50,000 shares of $10 par value common stock outstanding at December 31, 2008. a. If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2005, what are the dividends in arrears that should be reported

Need help getting this paper started (i.e. resources)

Prepare a paper discussing the case and incorporating answers to the questions below. It is important to address each of the questions presented. Use the APA format in writing course papers. Therefore, the APA rules for formatting, quoting, paraphrasing, citing, and listing of sources are to be followed. The Reference List is no

Effect of an Adjusting Entry and Debit Entry

Please choose the right answer and explain in a few words why: 1. The effect of an adjustment is: a.To correct an entry that was not in balance. b.To increase the accuracy of the financial statements. c.To close the books. d. To record transactions not previously recorded. 2. A debit entry to an account will:

Sanborn Tobacco, Inc. Journal Entry

On January 2, 2011, Sanborn Tobacco, Inc., bought 5% of Jackson Industry's capital stock for $90 million as a temporary investment. Sanborn realized that these securities normally would be classified as available-for-sale, but elected the fair value option to account for the investment. Jackson Industry's net income for the year

Journal entry exercise

Prepare the entry to record the interest earned. Prepare the journal entry to record collection of the note and interest at maturity. Agrico, Inc., accepted a 10-month, 13.8% (annual rate), $4,500 note from one of its customers on June 15; interest is payable with the principal at maturity. Prepare the entry to record the in

Prepare the journal entries for Kissick Co.

See attached file. Write the journal entry, for each of the following transactions that occurred during the first year of operations at Kissick Co. (Omit the "$" sign in your response.) a. Issued 250,000 shares of $6-par-value common stock for $1,500,000 in cash. b. Borrowed $500,000 from Oglesby National Bank and signed

Collins Corporation Journal Entry

P 11-11 Collins Corporation purchased office equipment at the beginning of 2009 and capitalized a cost of $2,000,000. This cost figure included the following expenditures: The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to deter

Prepare journal entry to record sale of lathe

E 11-32 Howarth Manufacturing Company purchased a lathe on June 30, 2007, at a cost of $80,000. The residual value of the lathe was estimated to be $5,000 at the end of a five-year life. The lathe was sold on March 31, 2011, for $17,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Parti

Preparing journal entries for transactions

** Please see the attached file for the complete problem description ** Chapter 12 The City of Wetteville has a fiscal year ending June 30. Examine the following transactions for Wetteville: (A) On 6/1/10, Wetteville enters into a 5-year lease on a copying machine. The lease meets the criteria of a capita

Prepare journal entries for hedge contracts: Norton Co and Car Corp

See problems in attached Excel file. Problem 1 Norton Co., a U.S. corporation, sold inventory on December 1, 2007, with payment of 10,000 British pounds to be received in 60 days. The pertinent exchange rates were as follows: SPOT RATE December 1, 2007 $1.7241 December 31, 2007 $1.8182 January

Journalize Transactions for Entries

Presented here are selected transactions for Lulu Corporation for 2010. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2000. The machine cost $71,000 on that date and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2007. The computer cost

Bond journal entries.

Crow Co. issued 493,000 of 10%, 20 yr. bonds on Jan, 1, 2010, at face value. Interest is payable annually on Jan. 1. I need to prepare journal entries to record the last of the following events: (I finished most of this; but stuck on these questions). I need to understand this for my timed test tomorrow. a) Jan 1 ~

Journal Entry for Bond Redemption

BE10-7 The balance sheet for Reading Company reports the following information on July 1, 2010. READING COMPANY Balance Sheet (partial) Long-term liabilities Bonds payable $2,000,000 Less: Discount on bonds payable 30,000 $1,970,000 Reading decides to redeem these bonds at 102 after pay