Share
Explore BrainMass

Journal Entries

What journal entry must PharmGen use to record this 5% stock dividend

PharmGen, a pharmaceutical company, was founded two years ago. Like most pharmaceutical campanies, PharmGen did not make any profits in its first two years of operations since the company spent heavily on research and development to create new drugs. However, in order to continue to attract investors, the company would like to i

Preparing the journal entry for the scrapping of the jukebox

A rowdy spring break guest damages a jukebox that had been purchased in 1995 for $800. The jukebox had a useful of ten years, with an estimated salvage value of $75. The company decided to scrap the jukebox after the incident. Prepare the journal entry recording the scrapping of the jukebox My answer is: Debit - accumu

Error correction for Bailey's $50,000 of expensed equipment

In 2010, Bailey Corporation discovered that equipment purchased on January 1, 2008, for $50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Bailey's 2010 journal entry to correct the error.

Prepare the journal entry for the Unearned rent adjustment

Unearned rent at 1/1/10 was $7,300 and at 12/31/10 was $8,000. The records indicate cash receipts from rental sources during 2010 amounted to $40,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. Please indicate DR (debit ) or CR (credit) to the left of the account t

Adjusting Entry for Prepaid rent

Prepaid rent at 1/1/10 was $20,000. During 2010 rent payments of $123,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $122,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not ma

Journal Entries for Jimenez Co. bonds

Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Jimenez Co.: March 1 Issued $800,000 face value Jimenez Co. second mortgage, 8% bonds for $872,160, including accrued interest. Interest is payable semiannually on December 1 and June 1 with the bonds mat

Installment Notes - Norwood

On November 1, 2007, Norwood borrows $540,000 cash from a bank by signing a six-year installment not bearing 9% interest. The note requires equal total payments each year on October 31. 1. Compute the total amount of each installment payment. Use the present value table 2. Compute an amortization table for this installme

Journal entries for bonds.

Please use Excel. On January 1, 2010, Parabolic Company issued 8% bonds with a face amount of $72.9 million, dated January 1. The bonds mature in 2025 (15 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually. Required: 1. Assume the market rate was 7%. Determine the pri

Revenue Recognition where right of return exists-Journal Entries

Uddin Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms f.o.b. shipping point, and payment is due 60 days after shipment. The retailer may return a maximum of 30% of an order at the retailer's expense. Sales are made only to retailers who

Journalize the adjusting entry needed on December 31

P3_28a questions P3-28a Journalize the adjusting entry needed on December 31, the end of the current accounting year, for each of the following independent cases affecting Wisconsin alps. No other adjusting entries have been made for the year. A- Prior to making the adjusting entry on December 31, the balance in Prepaid I

County of Maxnell: Sanitation Department Journal Entries

See attached file. The County of Maxnell decides to create a sanitation department and offer its services to the public for a fee. As a result, county officials plan to account for this activity within the enterprise funds. Make Journal entries for this operation for the following 2008 transactions as well as necessary ad

Journal Entries for Transactions

Problem 1: 1. On December 3, Rebecca Company sold $48,000 of merchadise to Simonis Co.,2/10 ,n/30, FOB shipping point. The cost of the merchadise sold was $350,000. 2. On December 8, Simmons Co. was granted an allowance of $27,000 for merchadise purchased on December 3. 3. On December 13, Rebecca Company received the balan

Prince and Smithtown Corporations: Computations and Entries

Prince Corporation purchased 960,000 shares of Smithtown Corporation's common stock (an 80% interest) for 21,200,000 on January 1, 2006. The 2,000,000 excess of investment cost over book value acquired was allocated to goodwill On January 1, 2008, Smithtown sold 400,000 previously unissued shares of common stock to the public

Journal Entry transactions for Ming, Chantay, Maxil, Clinton

9-2A Ming Company began operations on January 1, 2008. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. 2008 a. Sold $1,347,700 of merchandise (that had cost $982,500) on credit,

Journal Entry - Stock Dividend

PharmGen, a pharmaceutical company, was founded two years ago. Like most pharmaceutical companies, PharmGen did not make any profits in its first two years of operations since the company spent heavily on research & Development to create new drugs. However, in order to continue to attract investors, the company would like to iss

Prepare Journal Entry to Record the Retirement of Bonds

A company previously issued $2,000,000, 10% bonds, receiving a $120,000 premium. On the current year's interest date, after the bond interest was paid and after 40% of the total premium had been amortized, the company purchased the entire bond issue on the open market at 98 and retired it. Prepare the journal entry to record the

Journal Entries - Equity Method of Accounting

On January 1, 2009, Frederich Corporation purchased 7,500 shared of SportTech, Inc. as a Long-term investment for a total of $235,000.The 7,500 shares represent 30% of the outstanding (25,000) shares of SportTech. Prepare the journal entries for Frederich to record the following transactions and events: December 31, 2009: Sp

Preparing General Journal Entries: Bookkeeping

Prepare a general journal entries to record these transactions: 1 Mar - Brooks invested 180,000 cash along with 30,000 of office equipment in the company. 2 Mar - The company prepaid 8,000 cash for 6 months rent for an office (Hint: Debit Prepaid Rent for 8,000). 3 Mar - The company made credit purchases of office equipment

Preparing Journal Entries for Hawn and Larson Companies

1) During 2006, Hawn Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the

Olson Corporation

Question 23 Olson Corporation constructs new homes. Assume that Olson uses a job costing system. During May 2010, the following transactions occurred: Olson purchased $4,500 of lumber on account. Olson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour. Depreciation of $1,50

Journal Entry Preparation

A truck was acquired on July 1, 2004 at a cost of $216,000. The truck had a 6 year useful life and an estimated salvage value of $24,000. The straight line method of depreciation was used. On January 1, 2007 the truck was overhauled at a cost of $20,000 which extended the useful life of the truck by two years beyond the original

General Journal Entry: Albatross Corporation

On November 19, 2007, Albatross Corporation purchased 30,000 shares of ABC Corporation stock for $480,000, and 10,000 shares of Milken Corporation stock for $250,000. The Albatross Corporation's management intends to hold all 40,000 shares for a short period of time. On December 31, 2007, the price of ABC Corporation's stock was

Nonmonetary Exchange

Hello, I need your help with this to double check my work with a professional...Please put in excel..Thank you. Please see attached. Santana Company exchanged equipment used in its manufacturing operations plus $2,00 in cash for similar equipment used in the operations of Delaware Company. The following information pertains t

Longer Liability journal entries for accounts

Scenario is as follows: A company issued $200,000 of its 10 percent bonds payable on April 1, 2030. The bonds were issued at face value. Interest is payable semi-annually, on October 1 and April 1. Give the journal entries to issue the bonds and pay each of the first two interest payments to bondholders

Journal Entries for Installment Sale: Effective Interest Method

On December 31, 2008 Company A rendered services to Company B at an agreed price of $91,844.10 (do not round), accepting $36,000 down and agreeing to accept the balance in four equal installments of $18,000 receivable each December 31. An assumed interest rate of 11% is imputed. Prepare the entries that would be recorded by

Journal entry for Allowance for bad debts

Battle Tank, Inc. had net sales in 2004 of $1,200,000. At December 31, 2004, before adjusting entries, the balances in selected accounts were: Accounts Receivable $250,000 debit, and Allowance for Doubtful Accounts $2,100 credit. If Battle Tank estimates that 2% of its net sales will prove to be uncollectible, prepare t