Littor Industries issued a $100,000, 4-year, 11% note at face value to Forest Hills Bank on January 1, 2005, and received $100,000 cash. The notes requires annual interest payments each December 31. Prepare Littor's journal entries to record: (a) the issuance of the note and (b) the December 31 interest payment.
S. Company exchanged 400 shares of Daily Company common stock, which Herman was holding as an investment, for equipment from West Company. The Daily Company common stock, which had been purchased by Herman for $50 per share, had a quoted market value of $58 per share at the date of exchange. The equipment had a recorded amount o
The Mars Corporation issued 2,000 shares of its $10 par value common stock for $70,000. The Mars Corporation also incurred $1,500 of costs associated with issuing the stock. Prepare The Mars Corporation's journal entry to record the issuance of the company's stock.
Tazmania Inc. had pretax financial income of $154,000 in 2007. Included in the computation of that amount is insurance expense of $4,000 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $14,000. Prepare Tazmania's journal entry to record 2007 taxes, assuming
When actual wage rate paid to direct labor worker exceeds the standard wage rate, the journal entry would included: 1-Debit to wages payable;credit to labor rate variance 2-Debit to work in process;credit to labor rate variance 3-Debit to wages payable;debit to labor rate variance 4-Debit to work in process; debit to labor
No Doubt Company includes one coupon in each box of soap powder that it packs and 10 coupons are redeemable for a premium (a kitchen utensil). In 2007, No Doubt Company purchased 8,800 premiums at 80 cents each an sold 110,000 boxes of soap powder at $3.30 per box. 44,000 coupons were presented for redemption in 2007. It is esti
Prepare the necessary general journal entries for the month of September for the Derby Company for each situation given below. Derby uses a perpetual inventory system. Oct. 5 Paid cash of $14,000 for operating expenses that were incurred and properly recorded in the previous period. 8 Purchased merchandise for $16,000
The Calvin Company uses the allowance method to account for uncollectible accounts. Prepare the appropriate journal entries to record the following transactions during 2010. You may omit journal entry explanations. May 20 The account of Larry Taylor for $950 was deemed to be uncollectible and is written off as a bad debt.
Business is booming for Dan Brown's home inspection business. He has been so busy the first month of business that he hasn't had time to keep up with his bookkeeping and has asked for your help. He has provided you with the detail regarding the following transactions: Date Transaction Dec 4 First week of inspec
Required: 1.) For direct materials: a.) Compute the direct materials price and quantity of variances. b.) Prepare journal entries to record the purchase of materials and the use of materials in production. 2.) For direct labor: a.) Compute the direct labor rate and efficiency variances.
If a company records their inventory purchases at standard cost but also records purchase price variances, what journal entry would be recorded if a purchase of 5,000 widgets were bought at $8.00 having a standard cost of $8.15? Dr Cr _________________ $ ________ _________________ $ ________ _________________ $ ________
Presented below are two independent situations. 1. Josh Car Rental leased a car to Bayfield Company for one year. Terms of the operation lease agreement call for monthly payments of $500. 2. On January 1, 2008, James Inc. entered into an agreement to lease 20 computers from Marcus Electronics. The terms of the lease agreem
Please see attached file. P5-36 Consolidation Workpaper at End of First Year of Ownership Power Corporation acquired 75 percent of Best Company's ownership on January 1, 20X8, for $96,000. At that date, the fair value of Best's buildings and equipment was $20,000 more than book value. Buildings and equipme
Can someone take a look at the below e-mail I need to send to a Sr. Director requesting help and give me suggestions/comments on how to make this email flow and sound better? Thanks. Hi Melanie, Per our conversation, each month I do an entry to accrue all costs associated with pending foreclosures. The costs used for the
Preparing the above for the following: Raw materials $53,000.00 Work in process $33,400.00 Finished goods $81,000.00 I am having trouble with where each entry needs to go and preparing the T-accounts and income statement.
On 12/31/07 Joe Smith Company acquired a computer from Louis Corporation by issuing a $400,000 zero-bearing note payable in full on 12/31/11. Joe Smith Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a %50,000 salvage value. A.) Pre
I need this information. I need to see how it would look posted in a journal that i provide because i do not know how to input the information. I keep getting it wrong please help!!! Business is booming for Dan Brown's home inspection business. He has been so busy the first month of business that he hasn't had tome to ke
A proper journal entry (without numbers) to record the adjustment of overapplied overhead to Cost of Goods Sold would be what? Use accounts: Cost of Goods Sold Work in Progress Manufacturing overhead
(Journalize Various Accounts Receivable Transactions) The balance sheet of Antonio Vivaldi Company at December 31, 2007, includes the following. Notes receivable 36,000 Accounts receivable 182,000 Less: Allowance for doubtful accounts 17,300 200,800 Transactions in 20
On July 1, 2006, Orlow Co. pays $12,000 to Pizner Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Orlow Co., journalize and post the entry on July 1 and the adjusting entry on December 31.
Prepare entries to record the following transactions using the allowance method for uncollectible accounts. a. The firm assumes that approximately 1% of total sales on account will prove uncollectible. Sales for Year 1 are $1,000,000. All sales are on account. b. On July 7, Year 2, it is determined that an account of $2,000
Please explain the following problem. Any examples would be greatly appreciated. On August 1, 2007, a company issues bonds with a par value of $600,000. The bonds mature in 10 years, and pay 6% annual interest, payable each February 1 and August 1. The bonds sold at $632,000. The company uses the straight-line method of amor
On January 1, 2003, ABC co. purchased a building and machinery that have the following useful lives, salvage value, and costs Building, 25-year estimated useful life, $4,000,000 cost, $400,000 salvage value........ -Machinery, 10 year estimated useful life, $500,000 cost, no salvage value. The building has been depreciate
Can you help me get started with this assignment? The accounting records of Longacre Nursery, Inc., for Year 2 and Year 3 reveal the following: Year 2 Year 3 Income before income taxes per books $250,000 $400,000 Timing differences (30,000) 20,000 Permanent differences 5,000 (6,000) Taxable income $225
On March 1, Year 1, a firm issues $475,000 bonds at par value plus accrued interest. The stated rate on the bonds was 12% and the bonds pay interest semi-annually on June 30 and December 31. Prepare the entries necessary to record a. the issuance of the bonds on March 1, Year 1 b. the payment of interest on June 30, Year 1
On January 1, Year 1, Jayco purchased a machine for $6,000. It had an estimated salvage value of $1,200 and a life of six years. The straight-line method of depreciation was used. At, midyear in Year 4, Jayco sold the machine for $4,500 cash. Required: a. What is the book value of the machine at the time of the sale? b. G
Sullivan Co.'s accounts receivable show the following balances by age: Age of Receivable Balance 0-30 days $600,000 31-60 days 175,000 61-120 days 70,000 more than 120 days 10,000 The credit balance in the allowance for uncollectible accounts is $2,500. Sullivan Co. uses the following percentages to compute the estimat
Can you help me get started with this assignment? Presented below is information related to major Department stores, Inc. pension plan for 2008 Accumulated benefit obligation (at year -end) $600,000 Service cost 520,000 Funding contribution for 2008
Journal Entry The following are the transactions relating to the formation of Cardinal Mowing Services, Inc. and its first month of operations. Write journal entry(ies) for the following transactions: a) The firm was organized and owners invested cash of $600 b) The company borrowed $900 from a relative of the owners, a sh
The following are the transactions relating to the formation of Cardinal Mowing Services, Inc. and its first month of operations. Write journal entry(ies) for the following transactions: a) The firm was organized and owners invested cash of $600 b) The company borrowed $900 from a relative of the owners, a short-term note was