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The Accounting Cycle

Calculate interest expense; prepare journal entries

Please show your steps. Spring Water Company Ltd. needed to raise $5.8 million of additional capital to finance the expansion of its bottled water company. After consulting an investment banker and the company's VP Finance, it decided to issue bonds. The bonds had a maturity value of $5.8 million and an annual interest rate o

Journal Entries for Chung and Seneca for accounts receivable assigned

On October 1, 2010, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National Bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Chung and Seneca.

Equity Method - Journal entries for Holding Company

Sims Company owns 80% of the common stock of Allied Company. In 2006, Allied reported $200,00 net income and paid cash dividends of $80,000. In 2007, Allied reported a $40,000 net loss and paid $10,000 of dividends. What are the above journal entries for the above on Sims' books assuming use of the equity method of accou

Journal entries for Bad debt expense; net AR at end of 2008

Belkou Company began operations on January 1, 2007. Its first year's sales were $1,140,000, which were 70% on credit. During the year, $740,000 was collected from customers on account, and the company wrote off accounts worth $2,600. At the end of the year, management estimated that 0.5% of all credit sales would probably be unc

Sampress Company fixed compensatory share option plan: Schedule, journal entries

On Januray 1, 2010, Sampress Company adopts a compensatory share optiom plan for its 50 excutives The plan allows each executive to purchase 200 shares of its $2 par common stock for $39 per share after completing a three-year service period. Sampress estimates the value of each option to be $14 on the grant date. It has had a

Questions

16. Which statement best describes the accounting cycle of a business? a. It's set by the securities & exchange commission and is an average of all business cycles. b. It corresponds with the natural business cycle running from one low point in the cycle to the next low point. c. it begins with the recording of the first

Identifying Journal Transactions

Selected transactions for D. Reyes, Inc., an interior decorating firm, in its first month of business, are as follows. January 2: Invested $10,000 cash in the business in exchange for common stock. 3: Purchased a used car for $4,000 cash for use in the business. 9: Purchased supplies on account for $500. 11: Billed custome

Edmond Company and Rosen Corporation Journal Entries for Exchange of Equipment

Edmond Company exchanged machinery with an appraised value of $1,755,000, a recorded cost of $2,700,000 and accumulated depreciation of $1,350,000 with Rosen Corporation for machinery Rosen owns. The machinery has an appraised value of $1,695,000, a recorded cost of $3,240,000, and accumulated depreciation of $1,782,000. Rosen a

Journal Entries for Payable Balances Due

REQUIREMENT #1: During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions: Oct. 1 Began business by making a deposit in a company bank account of $12,000, in exchange for 1,200 shares of $10 par value common stock.

Journal Entries for Partnership Profits

Chang and Danos share partnership profits and losses at 60% and 40%, respectively. The partners agree to admit Flint into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Flint are: Chang (60%) $ 300,000 Danos (40%) $ 300,000 Total $ 600,000

Journal Entries of the Kramer Corporation

1. Kramer Corporation had the following long-term investment transactions. Jan 2 Purchased 5,000 shares of Optic, Inc. for $42 per share plus $7,000 in fees and commission. These shares represent a 35% ownership of Optic. Oct 15 Received Optic, Inc. cash dividend of $2 per share. Dec 31 Optic reported a n

Debit credit

Selected transactions for D. Reyes, Inc. an clothing industry, in it's first month of business are as follows. Jan. 2 Invested $10,000 cash in business in exchange for common stock 3 Purchased used car for $4,000 cash for use in business 9 Purchased supplies on account for $500 11 Billed customers $1,800 for

General journal and ledger with explanation

The following is a list of transactions from Danny and Mary Jane's first month of business: May 1 Danny and Mary Jane deposited $50,000 into business checking account May 1 Rented theater building for shows - paid 6 months rent up front - $24,000 May 1 Purchased six-month insurance policy to cover rented building and cust

Investment Journal Entries

Hobson acquires 40% of the outstanding voting stock of Stokes Company on January 1, 2008,for $210,000 in cash. The book value of Stokes' net assets on the date was $400,000, although one company's buildings, with a $60,000 carrying value, was actually worth $100,000. This building had a 10-year remaining life. Stokes owned a roy

Lindsay Corporation Journal Entries of Stock Transaction

17. The following transactions relate to the stockholders' equity transactions of Lindsay Corporation for its initial year of existence. (a) Jan. 7 Articles of incorporation are filed with the state. The state authorized the issuance of 10,000 shares of $50 par value preferred stock and 200,000 shares of $10 par value common

Prepare journal entries for land, stock exchange, capital costs

S10-1 Following is activity related to Overland Company: 1. Land was given to the company by the State of Florida to use as a manufacturing facility site. The market value of the land at the time of the donation was $102,000. 2. Addition land and buildings were acquired in exchange for 15,000 shares of company stock.

Notes Receivable Journal Entries: Menachem Inc and Begin Corporation

On December 31, 2008, Menachem Inc. rendered services to Begin Corporation at an agreed price of $$91,844.10, 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 M

Estefan Inc: Compute bad debts and prepare journal entries

The trial balance before adjustment of Estefan Inc. shows the following balances Accounts Receivable 80,000 debit Allowance for Doubtful Accounts 1,750 debit Sales( all on credit) 580,000 credit Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% o

Blue Collar Company: Journal Entries for payroll and related taxes

I5-1: The following information is available concerning The Blue Collar Company's payroll for November, 2009: Employee Date of Hire October Year to Date Earnings November Earnings Federal Income Tax Withheld State Income Tax Withheld Z. Allen 1/6/2002 $104,000 $10,600 $3,200 $250 G. Burns 9/1/2009 6,000

Prepare the necessary journal entries to record the transactions...

Need help with these questions, would appreciate step by step instructions. Thank You I4-3: A company formed on January 1 of the current year and entered into the following transactions: A. Paid $15,000 for transportation and other expenses for incorporators' meetings. B. Paid $10,000 attorney fees to form the corpor

Transactions, Financial Statements - Service Company

I really need help with this problem. Please give detailed explanations and please put answers in excel. See attached for problem. Listed below are the transactions of Yasunari Kawabata, D.D.S., for the month of September. Sept. 1 Kawabata begins practice as a dentist and invests $20,000 cash. 2 Purchases furniture

Journal entries and notes

A company entered into the following material contracts at the beginning of the year: Contract 1: The Company agreed to purchase 200,000 sprockets during the next 4 years at a price of $20 per sprocket. The contract is not cancellable. As of the end of the year, the market price for a sprocket was $22. Contract 2: The

Applying Overehead, T-accounts, and Journal entries

Harwood Company uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would incur $192,000 in manufacturing overhead cost and work 80,000 machine-hours. 1. Compute the company's predetermined overhead rate. 2.

Dillon Products: Applying Overhead, Journal Entries, and T-accounts

Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to the jobs on the basis of machine-hours. At the beginning of the year, it was estimated that the company would work 240,000 machine-hours and incur $4,800,000 in manufacturing

Journal Entries for Sales

Assume that a company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. A sales return for credit on account would be recorded in the: Answer sales journal. general journal. cash receipts journal. accounts receivable ledger. Martha Company h

Journal entries (Warners Company and more...)

Please help me with these journal entries. Thank you. Journalize the following transactions. A) Issued 100,000 shares of $1 par common stock for $10 per share. B) Issued 300 shares of $25 par preferred stock with a fair value of $30 per share to an attorney in payment of legal fees for organizing the corporation C) Decla

Preparing journal entries

1. The Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 1% of net credit sales will eventually be uncollectible. Selected account balances at December 31, Year 1, and December 31, Year 2, appear below: 12/31/Year 1 12/31/Year 2 Net Credit Sales $400,000 $

Accounting cycle, closing entries, post-closing trial balance

I need help with providing brief answers to each of the following questions: 1. Why is the accounting cycle called a "cycle"? 2. Could closing entries be made without using the income summary accounts? 3. Why does a post-closing trial balance contain only balance sheet accounts?