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Journal Entries

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

Bond Entries for Held-to-Maturity Securities

E17-3 (Entries for Held-to-Maturity Securities) On January 1, 2006, Hi and Lois Company purchased 12% bonds, having a maturity value of $300,000, for $322,744.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2006, and mature January 1, 2011, with interest receivable December 31 of each year. Hi a

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

Journal entries for leases

On January 1, year 1, a firm agrees to lease equipment on the following terms: 3 annual payments of $4,000 due on December 31, of each year Assume the market interest rate is 10% Required: Prepare entries to record the above transaction as follows: a.) as if a capital lease: 1) signing of contract 2) Dec

Depreciation/ journal entries

Need help with this problem, would appreciate detail step by step instructions. Thank You Attached is what I started not sure if correct. PROBLEM # 2 LTB4-2: The Overly Complex Company uses the composite method of depreciation on the following assets: Asset A Asset B Asset C Asset D Asset E Original Co

Non monetary Exchange

Non monetary exchange. Martin Co. had a sheet metal cutter that cost $96,000 on January 5, 2002. This old cutter had an estimated life of ten years and a salvage value of $16,000. On April 3, 2007, the old cutter is exchanged for a new cutter with a market value of $48,000. The exchange lacked commercial substance. Martin also

Preparing a Journal Entry: Salaries and Payroll Taxes

Please explain how to prepare the journal entries. Payroll Entries Total payroll of Bennett Co. was $920,000, of which $160,000 represented amounts paid in excess of $90,000 to certain employees. The amount paid to employees in excess of $7,000 was $720,000. Income taxes withheld were $225,000. The state unemployment tax i

Journal entries for estimated bad debts and allowance

Please explain how to prepare these entries: Entries for bad debt expense The trial balance before adjustment of Suarez Company reports the following balances: Dr. Cr. Accounts receivable $100,000 Allowance for doubtful accounts $2,500 Sales (all on credit)

Journal Entries

During the past year, a company completed the following transactions related to the acquisition of property and the construction thereon of a new factory: A. Paid $200,000 to landscape the property. The landscaping is considered permanent in nature. B. Paid $70,000 to have an old building removed from the property. C.

PlayWorld, Inc Journalized Transactions

See attached file. The accounts with identification letters for PlayWorld, Inc. are listed below. During 2010, the company completed the transactions given below. You are to indicate the appropriate journal entry for each transaction by giving the account letter and amount. Some entries may need three letters. The first t

Accounting - dividends & journal entry (Rocklin Corporation)

** See attached PDF for details... ** Rocklin Corporation reports the following components of stockholders' equity on December 31, 2009. Common stock-$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $1,125,000 Paid-in capital in excess of par value, common stock 60,000 Retain

Accounting - interest & journal entry (Montag Company)

** See PDF for better description... ** [The following information applies to the questions displayed below.] Montag Co. entered into the following transactions involving short-term liabilities in 2008 and 2009. 2008 Apr. 20 Purchased $48,250 of merchandise on credit from Locust, terms are 1/10, n/30. Montag use

Provisions for PepsiCo

The will of Kate Tweed had the following provisions: $195,000 in cash went to Victor Vickery. All shares of PepsiCo went to Duchess Cash. The residence went to Louis Tweed. All other estate assets were to be liquidated with the resulting cash going to the Sacred Church of Liberty, Missouri. The executor of this estate d

Constructing a T-Account

Construct a T-account representing the account impacted by the transaction in 3-12. Post all of the journal entries to these T-accounts. Compute the ending balance in each account. Assume that the beginning balance in the T-account is zero. Journal Entries Refer to PE 3-2. Make the journal entry necessary to record the trans

Journal entry for trade in

June 22 journal entry Traded the old company truck for a new truck issuing a check to Commercial Truck Sales and Repairs.The cost of the old truck is 10,000 and on March 31, the end of the previous quarter it had depreciated $7,530 (at $60 a month). The new truck has a list price of $14,000 and a trade-in allowance of $2,800

Prepare a journal entry required on Battery's books on May 1

On May 1, Battery, Inc. factored $800,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Battery was to handle disputes concerning service, and Quick Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Quick Finance assessed a finance charg

Prepare the Journal entries that Fortune for Transactions

Listed below are transactions dealing with various stock benefit plans of Fortune-Time Corporation during the period 2009-2011. The market price of the stock is $45 at January 1, 2009. a.On Jan. 1,09, the company issued 10 million common shares to divisional managers under its restricted stock award plan. The shares are subj

Adjusting journal entries for year end

McCallister & Speass Plowing Company is completing the accounting process for the year ending December 31, 2009. The transactions during 2009 have been journalized and posted. The following data with respect to adjusting entries was available. Please record the required adjusting entries for December 2009. a. Two plowing j

Preparing a Journal Entry for Kusmaul Electric

Kusmaul Electric sold $500,000, 10%, 10-year bonds on January 1, 2008. The bonds were dated January 1 and paid interest on January 1 and July 1. The bonds were sold at 104 Prepare the journal entry to record the issuance of the bonds on January 1, 2008. (List multiple debit/credit entries in descending order of amount.) At

Post entries, prepare a retained earnings & stockholders' equity

The stockholders' equity accounts of Hashmi Company at January 1, 2008, are as follows. Preferred Stock, 6%, $50 par $600,000 Common Stock, $5 par 800,000 Paid-in Capital in Excess of Par Value-Preferred Stock 200,000 Paid-in Capital in Excess of Par Value-Common Stock 300,000 Retained Earnings 800,000 There were n


Milner Corporation has been authorized to issue 20,000 shares of $100 par value, 10% noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2007, the ledger contained the following balances pertaining to stockholders' equity.

Accounting Principles - Payroll Tax, Depreciation Method

Problem C - II Yount and Lance have a partnership agreement which includes the following provisions regarding sharing net income and net loss: 1. Since Yount will work only part time in the partnership, he will be allocated a salary allowance that is one half the salary allowance allocated to Lance. Lance's salary allowance

Errors in accounts

Before preparing financial statements for the current year, the chief accountant for Reynolds Company discovered the following errors in the accounts. -The declaration and payment of $50,000 cash dividend was recorded as a debit to Interest Expense $50,000 and a credit to Cash $50,000. -A 10% stock dividend (1,000 shares

Calculate allowance for doubtful accounts; prepare journal entry

Please find attached the XCEL file containing the questions. Grayson Group showed the following unadjusted account balances, each with a normal balance, at December 31, 2007: Accounts Receivable $374,000 Allowance for Doubtful Accounts $2,200 Sales (all on credit) $1,125,000 Sales Discounts

Julie Hartsack error analysis and correcting entries

(Error Analysis; Correcting Entries) A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2008. Dr. Cr. Supplies on hand $ 2,700 Accrued salaries and wages $ 1,500 Interest receivable on investments 5,100 Prepaid insurance 90,000 Unearned rent -0- Accr

E22-19 Julie Hartsack error analysis and correcting entries

(Error Analysis; Correcting Entries) A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2008. Dr. Cr. Supplies on hand $ 2,700 Accrued salaries and wages $ 1,500 Interest receivable on investments 5,100 Prepaid insurance 90,000 Unearned rent -0- Accr

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