ACC291 Week3 E9-7 E10-5 E10-10 E10-11 E10-15 E10-18 P10-5A
P10-9A
Exercise E9-7
Exercise E10-5
Exercise E10-10
Exercise E10-11
Exercise E10-15
Exercise E10-18
Problem P10-5A
Problem P10-9A
ACC291 Week 3
E9-7 E10-5 E10-10 E10-11 E10-15 E10-18 P10-5A P10-9A
E9-7 Brainiac Company purchased a delivery truck for $30,000 on
January 1, 2011.The truck has an expected
salvage value of $2,000, and is expected to be driven 100,000 miles over its
estimated useful life of 8 years.Actual miles driven were 15,000 in 2011 and
12,000 in 2012.
Instructions
(a) Compute
depreciation expense for 2011 and 2012 using (1) the straight-line method, (2)
the units-of-activity method, and (3) the double-declining balance method.
(b) Assume
that Brainiac uses the straight-line method.
(1) Prepare
the journal entry to record 2011 depreciation.
(2) Show
how the truck would be reported in the December 31, 2011, balance sheet.
E10-5 Don Walls’s gross earnings for the week were $1,780, his
federal income tax withholding was $301.63, and his FICA total was $135.73.
Instructions
(a)
What was Walls’s net pay for the week?
(b)
Journalize the entry for the recording of his pay in the general journal. (Note:
Use Salaries Payable;
not Cash.)
(c)
Record the issuing of the check for Walls’s pay in the general journal.
E10-10 On January 1, Neuer Company issued $500,000, 10%,
10-year bonds at par. Interest is on January 1, Neuer Company issued
$500,000, 10%, 10-year bonds at par. Interest is payable semiannually on July 1
and January 1.
Instructions
Present
journal entries to record the following.
(a)
The issuance of the bonds.
(b)
The payment of interest on July 1, assuming that interest was not accrued on
June 30.
(c) The accrual of interest on December
31.
E10-11 On January 1, Flory Company issued $300,000, 8%,
5-year bonds at face value.
On January 1, Flory Company issued $300,000, 8%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1.
On January 1, Flory Company issued $300,000, 8%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1.
Instructions
Prepare
journal entries to record the following events.
(a)
The issuance of the bonds.
(b)
The payment of interest on July 1, assuming no previous accrual of interest.
(c)
The accrual of interest on December 31.
E10-15 Leoni Co. receives $240,000 when it issues a $240,000,
10%, mortgage note payable to
Leoni Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2011. The terms provide for semiannual installment payments of $20,000 on June 30 and December 31.
Leoni Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2011. The terms provide for semiannual installment payments of $20,000 on June 30 and December 31.
Instructions
Prepare
the journal entries to record the mortgage loan and the first two installment
payments.
*E10-18 Hrabik Corporation issued $600,000, 9%, 10-year bonds
on January 1, 2011, for
Hrabik Corporation issued $600,000, 9%, 10-year bonds on January 1, 2011, for $562,613.This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable semiannually on July 1 and January 1. Hrabik uses the effective-interest method to amortize bond premium or discount.
Hrabik Corporation issued $600,000, 9%, 10-year bonds on January 1, 2011, for $562,613.This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable semiannually on July 1 and January 1. Hrabik uses the effective-interest method to amortize bond premium or discount.
Instructions
Prepare
the journal entries to record the following. (Round to the nearest dollar.)
(a) The
issuance of the bonds.
(b) The
payment of interest and the discount amortization on July 1, 2011, assuming
that interest was not accrued on June 30.
(c) The
accrual of interest and the discount amortization on December 31, 2011.
P10-5A Fordyce Electronics issues a $400,000, 8%, 10-year
mortgage note on December 31,
Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2010. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for semiannual installment payments, exclusive of real estate taxes and insurance, of $29,433. Payments are due June 30 and December 31.
Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2010. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for semiannual installment payments, exclusive of real estate taxes and insurance, of $29,433. Payments are due June 30 and December 31.
Instructions
(a)
Prepare an installment payments schedule for the first 2 years.
(b)
Prepare the entries for (1) the loan and (2) the first two installment
payments.
(c)
Show how the total mortgage liability should be reported on the balance sheet
at December 31, 2011.
*P10-9A Elkins Company sold $2,500,000, 8%, 10-year bonds on
July 1, 2011.The bonds were
Elkins Company sold $2,500,000, 8%, 10-year bonds on July 1, 2011.The bonds were dated July 1, 2011, and pay interest July 1 and January 1. Elkins Company uses the straight-line method to amortize bond premium or discount. Assume no interest is accrued on June 30.
Elkins Company sold $2,500,000, 8%, 10-year bonds on July 1, 2011.The bonds were dated July 1, 2011, and pay interest July 1 and January 1. Elkins Company uses the straight-line method to amortize bond premium or discount. Assume no interest is accrued on June 30.
Instructions
(a)
Prepare all the necessary journal entries to record the issuance of the bonds
and bond interest expense for 2011, assuming that the bonds sold at 104.
(b)
Prepare journal entries as in part (a) assuming that the bonds sold at 98.
(c)
Show balance sheet presentation for each bond issue at December 31, 2011.
TUTORIAL PREVIEW
E10-5 Don Walls’s gross earnings for the week were $1,780, his
federal income tax withholding was $301.63, and his FICA total was $135.73.
(a)
What was Walls’s net pay for the week?
(a) Net pay = Gross
pay – FICA taxes – Federal income tax
Net pay = $1,780 –
$135.73 – $301.63
Net pay = $1,342.64
File name: ACC291 Week3.doc File type: doc PRICE: $30
