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E8-7 ‘The December 31, 2024, year-end preliminary inventory balance (i.c., unadjusted balance) of the Almond Corporation is $210,000. You have been asked to review the following transactions to determine if they have been correctly recorded. 1. Goods shipped to Almond f.o.b. destination on December 26, 2024, were received on January 2, 2025. The invoice cost of $30,000 is included in the preliminary inventory balance. 2. Atyear-end, Almond held $14,000 of inventory on consignment from the Hardgrove Company. This inventory is included in the preliminary inventory balance. 3. On December 29, inventory costing $6,000 was shipped to a customer f.0.b. shipping point and arrived at the customer’s location on January 3, 2025. The inventory is not included in the preliminary inventory balance. 4. Atyear-end, Almond had inventory costing $15,000 on consignment with the Juniper Corporation. The inventory is nof included in the preliminary inventory balance. Required: Determine the correct inventory amount to be reported in Almond’s 2024 balance sheet. Inventory balance before additional transactions Add: 4. Merchandise on consignment with Juniper Corp. Deduct: 1. Merchandise shipped to Almond f.0.b. destination on December 26 2. Merchandise held on consignment from the Hardgrove Company Correct inventory balance E- Various methods of calculating ending inventory and COGS Beginning inventory 4,000 units @ $5 January 10: Sold 2,000 units January 17: Purchased 1000 units @S6 March 22: Purchased 3,000 units @ $7 April 15: Sold 1,500 units October 15: Purchased 3,000 units@ $8 November 20: Sold 3,000 units

. What is the cost of goods available for sale for the period? . What s the ending inventory in units? . What s the cost of goods sold using FIFO periodic inventory system? Total units sold = COGS under FIFO periodic = . What s the cost of goods sold using FIFO perpetual inventory system? COGS under FIFO Periodic is always equal to COGS under FIFO Perpetual.

BE 13-10n October 1, Eder Fabrication borrowed $60 million and issued a nine-month, 12% promissory note. Interest was payable at maturity. Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period. BE 13-7 In Lizzie Shoes” experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for 18,000 during August 2024. $4,000 of cards were redeemed in September 2024, 53,000 in October, $2,500 in November, and 52,000 in December 2024. In 2025 an additional $1,000 of cards were redeemed in January and $500 in February. How much gift card revenue associated with the August 2024 gift card sales would Lizzie get to recognize in 2024 and 20257

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. /-2 Delta Automotive LOrporation nas tne following assets listed In its 12/31/ 2024 trial baiance: Cash in bank—checking account $22,500 U.S. Treasury bills (mature in 60 days)* 5,000 Cash on hand (currency and coins) 1,350 U.S. Treasury bills (mature in six months)* 10,000 Undeposited customer checks 1,840 *Purchased on 11/30/2024 Required: 1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2024 balance sheet. 2. For each of the items not included in your answer to requirement 1, select the correct classification of the item. The $10,000 in 6-month treasury bills should be classified as a Note: if a company has any restricted cash for specific purpose or future projects, such restricted cash is not a part of cash and cash equivalents. BE: Gross vs net method of recording sales :Harwell Company manufactures automobile tires. On July 15, 2024, the company sold 1,300 tires to the Nixon Car Company for $70 each. The terms of the sale were 2/10, n30. Harwell uses the gross method of accounting for cash discounts. All Journal entries (JEs) in the answer are in the books of Harwell Company (the seller).

Net Method

‘The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $300.000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in the allowance for uncollectible accounts. 3. What s the net accounts receivable reported at the end of the year?

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E 13-27 Lee Financial Services pays employees monthly. Payroll information s listed below for January 2024, the first month of Lee’s fiscal year. Assume that none of the employees exceeded any relevant base of pay, such that all benefit percentages apply to the entire $500,000 payroll. Salaries $ 500,000 Federal income taxes to be withheld 100,000 Federal unemployment tax rate 0.60% State unemployment tax rate 5.40% Social security tax rate 6.20% Medicare tax rate 1.45% Caleulate the income and payroll taxes for the January 2024 pay period. Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the January 2024 pay period. Salaries are not yet paid.

E 14-3 The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January 1,2024. « The bonds mature on December 31, 2033 (10 years). « For bonds of similar risk and maturity, the market yield s §%. o Interestis paid semiannually on June 30 and December 31 1. Determine the price (or issue price or selling price) of the bonds at January 1, 2024. 2. Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2024, interest on June 30, 2024 (at the effective rate) and interest on December 31, 2024 (at the effective rate). 1. Price of the bonds on January 1, 2024 2. January 1,2024 June 30,2024 December 31, 2024 On January 1, 2024, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $523,000 by Elmira on December 31, 2026. The effective interest rate is 6%. Prepare journal entries to record the sale of ‘merchandise on January 1, 2024 (omit any entry that might be required for the cost of the goods sold), as well as any other entries necessary in the books of Wright Transport for fiscal years 2024, 2025, and 2026.

BE 18-11 The sharcholders' equity of MLS Enterprises includes $200 million of no par common stock and $400 million of 6% cumulative preferred stock. The board of directors of MLS declared cash dividends of $50 million in 2024 after paying $20 million cash dividends in both 2023 and 2022. What s the amount of dividends common sharcholders will receive in 20247 Preferred Common 2022 203 2024 BE 14-2 A company issued 5%, 20-year bonds with a face amount of $80 million. The market yield for bonds of similar risk and maturity is 4%. Interest is paid semiannually. At what price did the bonds sell? Interest Principal Present value (price) of the bonds What s the journal entry at issuance? How much amount will be amortized each interest period if the issuer follows straight-line amortization method?

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E 10-9 On January 1, 2024, Byner Company purchased a used tractor. Byner paid $5,000 down and signed a noninterest-bearing note requiring 525,000 to be paid on December 31, 2026. The fair value of the tractor is not determinable. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. The company’s fiscal year-end is December 31. Required: 1. Prepare the journal entry to record the acquisition of the tractor. 2. How much interest expense will the company include in its 2024 and 2025 income statements for this note? 3. What is the amount of the liability the company will report in its 2024 and 2025 balance sheets for this note? Requirement | Requirement 2 2024: Interest expense 2025: Interest expense Requirement 3 2024: 2025:

E 13-15 Cupola Awning Corporation mtroduced a new line of commercial awnings 1 2024 that carry a two-year warranty against manufacturer’s defects. Based on their experience with previous product introductions, warranty costs are expected to approximate 3% of sales. Sales and actual warranty expenditures for the first year of selling the product were: Sales Actual Warranty Expenditures $5,000,000 $37,500 Required: 1. Does this situation represent a loss contingency? 2. Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2024.

E724 Mountain High Ice Cream Company transferred $60,000 of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10%. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,000) less a 2% fee (2% of the total factored amount). Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale eriteria are met. E725 Mountain High Ice Cream Company transferred $60,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Mountain High anticipates a $3,000 recourse obligation. Prudential remits 90% of the factored amount to Mountain High and retains 10%. ‘When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,000) less a 2% fee (2% of the total factored amount). Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale eriteria are met. 2. Guragai and Driskill inc. issued 5% bonds with a face amount of $41 million, together with 8 million shares of its $1 par common stock, for a combined cash amount of $78 ‘million. The fair value of its stock cannot be determined. The bonds would have sold for $39 million if issued separately. What is the journal entry for the sale of common stock and bond?

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3+ A company purchased equipment on January 1, 20: year service life and $100,000 residual value. using double declining method, straight line m for $1,700,000, estimating a five- What is the depreciation expenses for 2024 nethod, and sum of year digit method? Jote payable for $100,000 due in two i st-bearing nd N e eyl te isition of the assets? Use PPE accou asset is acqui caring ! ::als ‘What i the journal entry at the time of acq 9% discount rate. 1o record assets, if any. Assume 6% discoun

9. Gi iskil »regai and Driskill company collected $15,000 on o What is the journal entry to record this e previously written off account. 4 of credit sales. 1€ coupess 11 Calistoga Produce esimates bad debt expense at 0.607% o_i ]c:: T ot recevable and allowance for uncollcible 080 BE T b/ oy Sresore e Desember 31,2023, During 2024, Calisoges 0Ly S0 e 313,000, respectvely, and S1820 1 ACO0 0 Ly e, S\imul s the accounts receivable (net) s oF December L2024, s were written of ; 2llppoerce 10. Poodle Corporation was organized on January 3, 2024. The firm was authorized to issue 88,000 shares of $5 par comnion stock. During 2024, Poodlc had the following transactions relating to shareholders' equity: Issued 32,000 shares of common stock at $6.50 per share. Reported net income of $102,000. Paid dividends of $50,000. What is total paid-in capital at the end of 20242

4. On September 1, 2024, Sam's Shoe Com Pay interest semiannually on J 106. How much cash did S pany issued $500,000 of 9% bonds. The bonds anuary | and July 1 of each year. The bonds were sold at amss receive upon sale of the bonds? On July 15, 2024, the Niche Car Company purchased 1,000 tires from the Treadwell Company for $50 each. The terms of the sale were 2/10, n/30. Niche uses a perpetual inventory system and the gross method of accounting for purchase discounts. Required: 1. Prepare the journal entries to record the purchase on July 15 and payment on July 23, 2024. and Net Method

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BE 8-12 Salt and Mineral (SAM) began 2024 with 200 units of its one product. These units were purchased near the end of 2023 for $25 each. During the month of January, 100 units were purchased on January 8 for $28 each and another 200 units were purchased on January 19 for $30 each. Sales of 125 units and 100 units were made on January 10 and January 25, respectively. There were 275 units on hand at the end of the month. SAM uses a perpetual inventory system. Average Cost perpetual and periodic

E 11-4 On January 1, 2024, the Allegheny Corporation purchased equipment for $115,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 220,000 units during its life. Calculate depreciation for 2024 and 2025 using each of the following methods. 1. Sum-of-the-years” digits: Sum-of-the-digits is 2024 2025 2. One hundred fifty percent declining balance: Straight-line rate is 2024 2025 3. Now assume the equipment was purchased on October 1, 2024, Calculate the depreciation for 2024 and 2025 using Sum-of-the-years’ digits and one hundred fifty percent declining balance approaches: Sum-of-the-digits is {[10 (10 + 1)]/2} =55 2024 2025 One hundred fifty percent declining balance: Straight-line rate is 10% (1 + 10 years) x 1.5 = 15%rate 2024

E 10-6 On March 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 6,000,000 $ 7,500,000 Property, plant, and equipment 11,000,000 14,000,000 Other assets 1,000,000 1,500,000 4,000,000 4,000,000 Long-term liabilities 6,000,000 5,500,000 Calculate the amount paid for goodwill. On January 1, 2024, a Company adopted the dollar-value LIFO method for its one inventory pool. The pool’s value on this date was $660,000. The 2024 and 2025 ending inventory valued at year-end costs were $690,000 and $760,000, respectively. The appropriate cost indexes are 1.04 for 2024 and 1.08 for 2025. Calculate the inventory value at the end of 2024 and 2025 using the dollar-value LIFO method.

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BE 10-3 Falcon Waste Management purchased land and a warehouse for $600,000. In addition to the purchase price, Falcon made the following expenditures related to the acquisition: broker’s commission, $30,000; title insurance, $3,000; miscellaneous closing costs, $6,000. Assume that Falcon decides to use the warehouse rather than demolish it. An independent appraisal estimates the fair values of the land and warehouse at $420,000 and $280,000, respectively. Determine the amounts Falcon should capitalize as the cost of the land and the building. Total capitalized cost: ‘The total must be allocated to the land and building based on their relative fair values: Percent of Total Iniial Asset Fair Value Fair Value Valuation Land Building BE 10-4 Smithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs totaled $5.6 million. After the silver is extracted in approximately five years, Smithson is obligated to restore the land to its original condition, including constructing a wildlife preserve. The company’s controller has provided the following three cash flow possibilities for the restoration costs: (1) $300,000, 20% probability; (2) $550,000, 45% probability; and (3) $630,000, 35% probability. The company’s credit-adjusted, risk-free rate of interest is 6%. What is the initial cost of the silver mine?

BE 10-5 Refer to BE 10-4 (the previous example). What is the book value of the asset retirement liability (or ARO) at the end of year one? Assuming that the actual restoration costs incurred after five years are $596,000, what amount of gain or loss will Smithson recognize on retirement of the Tiability? E 11-13 On March 31, 2024, management of Quality Appliances committed to a plan to sell equipment. The equipment was available for immediate sale, and an active plan to locate a buyer was initiated. The equipment had been purchased on January 1, 2022, for $260,000. The equipment had an estimated six-year service life and residual value of $20,000. The equipment was being depreciated using the straight-line method. Quality’s fiscal year ends on December 31. 1. Calculate the equipment’s book value as of March 31, 2024. (Hint: Depreciation for 2024 would include up to March 31.) 2. By December 31, 2024, the equipment has not been sold, but management expects that it will be sold in 2025 for $150.000. For what amount is the equipment reported in the December 31, 2024, balance sheet? Requirement 1 Straight-line depreciation: $260,000 - $20,000 = 540,000 per year 6 years 2022 2023 2024 Book value as of March 31,2024 =

BE 18-12 Adams Moving and Storage, a family-owned corporaton, declared a property dividend of 1,000 shares of GE coummon stock that Adaus had purchased in Tebruary for 537,000 s an investment. GE’s shares had a market value of $35 per share on the declaration date. Preparethe journalentrics o record the property dividend on the declaration and payment. dates. Declaration date yment date. BE 18-13 On June 13, the board of dicctors of Siewert Incorporated declared a 5% stock dividend on its 60 million, $1 par, common shares, 0 be disributed on July 1. The masket price of Siewert common stock was $25 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock dividend.

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Chapter 18 Exercise Packet E 185 During is fist year o operations, Eastern Data Links Corporation entered into the following transactions relating t0 shareholders’ equity. The artcles of incorporation authorized the issue of § milion common shares, $1 par per share, and 1 million preferred shares, $50 par per share. February 12 Sold 2 million common shares, for $9 per share February 13 Issued 40,000 common shares 1o attorneys in exchange for legal services. February 13 Sold 80,000 ofits common shares and 4,000 preferred shares for a total of 5945,000. November 15 Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,685,000. Prepare the appropriate journal entris to record each transaction. February 12 Cash (2 million shares x 59 per share). 18,000,000 ‘Common sock (2 million shares x $1 par). 2,000,000 Paid-in capital —excess of par (difference). 16,000,000 February 13 February 13 November 15

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BE: Coupons and Promotions: During 2024, Deluxe Leather Goods issued 500,000 coupons ‘which entitles the customer to a $3.20 cash refund when the coupon is submitted at the time of any future purchase. Deluxe estimates that 70% of the coupons will be redeemed. 220,000 coupons had been processed during 2024. Deluxe recognizes coupon expense in the period coupons are issued. What are the journal entries related to coupons in 20247 BE Large stock dividend On June 13, the board of directors of Siewert Incorporated declared a 50% stock dividend on it 60 million, S1 par, common shares, o be disributed on July 1. The market price of Sewert common stock was $25 on June 13. Prepare a journal catry that summarizes the declaration and distibution of th stock dividend.

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BE_extra: Driskillindustris issued $55 million bond at 103 on October 1, 2023. Bond interest ‘paymenis are made on January 1 and July 1. What i the journal eny at issuance of bond? E 1810 Borner Communications” atiles of incorporation authorized the issuance of 130 million common sharcs. The transactions deseribed below effected changes in Borner's outstanding shares. Prior 0 the ransactions, Borner’s shareholders” equity included the following: Sharcholders Equity (8 in milons) Common stock, 100 millionshares at 1 par s100 Paidin capital - exces of par 0 210 Retained carnings ‘Assuming that Bomer Communications eties shares it eacaires (restores their status to that of ‘authorized but unissued shares), record the appropriate journal enry for each of th following transactions: 1. On January 7, 2024, Borner reacquired 2 million shares at $5 per shre. 2. On Augst 23,2024, Bomer reacquired 4 millon shares at $3.50 per share. 3. On July 25, 2025, Bomer sold 3 million common shares at $6 per share

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E 10-1 0n March 1, 2024, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2024. Costs incurred during this period are listed below: $4,000 Architect’s fees (for new building) 12,000 Legal fees for title investigation of land 2,000 Property taxes on land (for period beginning March 1, 2024) 3,000 Construction costs 500,000 Interest on construction loan 5,000 Salvaged materials resulting from the demolition of the old building were sold for $2,000. Determine the amounts that Beldon should capitalize as the cost of the land and the new building. Capitalized cost of land. Capitalized cost of building

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E 13-21 The following selected circumstances relate to pending lawsuits for Erismus, Incorporated Erismus’s fiscal year ends on December 31. Financial statements are issued in March 2025. Erismus prepares its financial statements according to U.S. GAAP. Indicate the accounting treatment of each of the following independent situations. 1. Erismus s defending against a lawsuit. Erismus's management believes the company has reasonable possibility of losing in court, and that if it loses, the judgment will be $1,000,000. 2. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court. If it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court. If it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. Erismus is a plaintiff in a lawsuit. Erismus's management believes it s probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000.

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Value of the equipment given up were $20,000 (original cost of $65,000 less accumulated depreciation of $45,000) and $17,000, espectivly. Assume Calaveras paid $8,000 in cash and the exchange has commercial substance. (1) At what smount will Calaveras vaiue the pickup trucks? (2) How much gain or loss will the company recognize on the exchange? 2. Gain or loss to recognize on the exchange: BE 10-15 Calaveras Tire exchanged equipment for two pickup trcks. The book value and fair value of the equipment given up were $20,000 (original ot of $65,000 less accumulated depreciation of $45,000) and $24,000, espectively. Assume Calaveras paid $8,000 in cash and the exchange has commercial substance. (1) At what smount will Calaveras vaiue the pickup trucks? (2) How much gain or loss will the company recognize on the exchange? 2. Gain or loss to recognize on the exchange: BE 10-16 Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $20,000 (original ost of $65,000 less accumulated depreciation of $45,000) and $24,000, espectively. Assume Calaveras paid $8,000 in cash and the exchange lacks commercial substance. (1) At what amount will Calaveras value the pickup trucks? (2) How much gain or loss will the company recognize on the exchange? 8

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E 1031 Early in 2024, the Excalibur Company began developing new software package to be d. The project was completed in December 2024 at a cost of $6 million. Of this amount, on was spent before technological feasibility was established. Excalibur expects a useful ars for the new product with total revenues of $10 million. Prepare a journal entry 10 record the 2024 development costs and expenses. E 113 On October 1, 2024, the Allegheny Corporation purchased equipment for $115,000. The estimated service life of the equipment s 10 years and the estimated residual value is $5,000. ‘The equipment is expected to produce 220,000 units during its life. Calculate depreciation for 2024 and 2025 using (1) Straight-line (2) Double-declining balance (3) Units- of- Production (units produced in 2024, 10,000 units; units produced in 2025, 25000 units). 1. Straight-line: 2024 2025 2. Double-declining balance: 2024 2025 3. Units-of-production: 2024 2025

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E 11-20 On January 2, 2024, David Corporation purchased a patent for $500,000. The remaining legal life is 12 years, but the company estimated that the patent will be useful only for eight years. In January 2026, the company incurred legal fees of $45,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life. Prepare journal entries related to the patent for 2024, 2025, and 2026.

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BE 11-14 At the beginning of 2022, Robotics Incorporated acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2022 and 2023 was calculated using the straight-line method, a 25-year useful life, and a S1 million residual value. In 2024, the estimates of useful life and residual value were changed to 20 total years and $500,000, respectively. What is depreciation on the building for 20247 BE 11-16 At the beginning of 2022, Robotics Incorporated acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2022 and 2023 was caleulated using the straight-line method, a 25-year useful life, and a $1 million residual value. Assume that 2022 depreciation was incorrectly recorded as $32.000. This error was discovered in 2024. (1) Record the journal entry needed in 2024 to correct the error. (2) What is depreciation on the building for 2024, assuming no change in estimate of useful life or residual value? [0} (2) Depreciation for 2024 would be

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E 11-31 In 2022, Alliant Corporation acquired Centerpoint Incorporated for $300 million, of which $50 million was allocated to goodwill. At the end of 2024, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Incorporated $220 million Book value of Centerpoint’s net assets (excluding goodwill) 200 million Book value of Centerpoint’s net assets (including goodwill) 250 million 1. Determine the amount of the impairment loss reported in the 2024 income statement. Measurement of impairment loss: 2. Determine the amount of goodwill reported in the year-end 2024 balance sheet. Goodwill = 3. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $270 million. E 147 Universal Foods issued 10% bonds, dated January 1, with a face amount of $150 million on January 1,2024, ‘The bonds mature on December 31, 2038 (15 years). ‘The market rate of interest for similar issues was 12% Interest is paid semiannually on June 30 and December 31 Universal uses the straight-Jine method. Determine the price of the bonds at January 1, 2024, Prepare the journal entries o record ther issuance by Universal Foods on January 1, 2024, interest on June 30, 2024 and interest on December 31, 2031. How much interest expenses will be reported by Universal Foods for the fiscal year ended December 31, 20247

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BE 149 On January 1, 2024, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year, $14,000,000, 6% note. Interest was payable annually on December 31 Prepare the journal enries for both firms to record nterest i Decerber 31, 2024.

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BE 14-10 On January 1, Snipes Consiruction paid for carth-moving equipment by issuing a 5300,000, 3-year note that specified 2% inerest o be paid on December 31 of each year. The quipment’ reail cash price was unknown, but it was determined tht a reasonable interest rate was $%. At what amount should Snipes record the equipment and the note? What journal eniry should it record forthe transaction? Interest Principal Present value (price) of the note BE 14-11 On January 1, a company borrowed cash by issuing a $300,000, 5% intallment note 10 be paid i three equal paymens at the end of each year beginning December 31. What would be the amount of each installment? Prepare an amortization table for the installment note. Prepare the journal eniry for the second installment payment.

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BE 14-12 A company retied S60 million o ts 6% bonds at 102 before their scheduled maturity. Atthe time, the bonds had a remaining discount of $2 million. Prepare the journal enty to record the redempion of the bonds. BE 14-14 Hoffiman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was convertibl into one share of 1 par common stock. Ifthe bond did not have ‘convertible feature, it would have sold for 99. Prepare the journal entry to record the issuance of the bonds, BE 14-13 Hoffiman Corporatin issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was issued with 10 detachable stock warranis, cach of which enitled the ‘bondholder to purchase, for $20, one share of $1 par common stock. At th time of sale, the market value of the common stock was $25 per share and the market value of each warrant was. 5. Prepare the journal enty (0 record the ssuance of the bonds.

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E 1813 At December 31,2023, the balance sheet of Meca International included the following sharcholders’equity accouns: Sharcholders’ Equity S o mitons) Common stck. 60 millonshares at S1 par s Paidin capital—excess of par w Retained carnings a0 Assuming that Meca International views s share buybacks as reasury stock, record the ‘appropriate journal entry for ach of the following transactions: 1. On February 12, 2024, Meca reacquired | million common shares at $13 per shar. 2. On June 9, 2025, Meca reacquired 2 million common shares at 10 per share 3. On May 25, 2026, Meca sold 2 million reasury shares at SIS per share. Determine cost as the weighted-average costof treasury sharcs. BE 18-10 Following is a recent Target press release: MINNEAPOLIS, March 12, 2020 /PRNewswire/—The board of diectors of Target Corporation (NYSE:TGT) has declared a quarterly dividend of 66 cents per common share. The dividend is payable June 10, 2020, to shareholders of record at the close of business May 20, 2020. Prepare the journal eniries Target used to record the declaration and payment of the cash dividend for its 520 million issued shares (assume 20 million of the 520 million are treasury shares).

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E 1817 The shareholders” equity of ILP Industres includes the items shown below. The board of directors of ILP declared cash dividends of S8 million, $20 million, and $150 million n its first three years of operation—2024, 2025, and 2026, respectivly. (S millons) Common stock s100 Paidin capital—xcessof par, common 950 Preferred stock, 8% 200 Paidin capital—excess of par, prefered sss Determine the amount o dividends to be paid o preferred and common sharcholders in each o the three years (1) Assuming the preferred stock is cumulative and nonparticipating: Preferred Common (2) Assuming the preferred stock is noncumulative and nonparticipating: Preferred Common 204 205 206

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