ACC 318 Project One Appendix The following events occurred during the first half of the year. Book the entries necessary for the corresponding transactions that have occurred. January 22: Issued $75,000 of 6% term bonds due on January 1, 2025 (10 periods) with interest payable each June 30 and December 31. Investors require an effective interest rate of 8%. Record the entries for issuance of the bond. February 28: A new long-term lease is entered into for extra storage space for the new praduct line of ink cartridges. The net present value of the future lease payments is $120,400. The lease is for two year at $5,000 per month beginning March 1. March 6: A long-term note for $60,000 was taken out from the bank. The loan is for two years with an interest rate of 6% repayable at maturity. April 22: New equipment was purchased to make printers for $55,000. Use straight line depreciation assuming a 4-year life, with no residual value. Use full year's depreciation for the first year- April 17: 200 shares of common stock with a $1 par value were sold for $20 per share. May 5: Paid cash dividends to stockholders of $22,500. June 22: Purchased 50 shares of the compary's stack at $25 per share. June 30: Book the depreciation for the first half of the year on the printer equipment purchased April June 30: Book the interest for the first half of the year on the loan you took out on March 6. June 30: Book the interest payment and amortization on discount for bond. June 30: Paid the rent expense for the first half of the year in cash. June 30: Book the service revenue of $100,000 for the first half of the year paid in cash. ?
ACC 318 Project One Appendix The following events occurred during the first half of the year. Book the entries necessary for the corresponding transactions that have occurred. January 22: Issued $75,000 of 6% term bonds due on January 1, 2025 (10 periods) with interest payable each June 30 and December 31. Investors require an effective interest rate of 8%. Record the entries for issuance of the bond. February 28: A new long-term lease is entered into for extra storage space for the new praduct line of ink cartridges. The net present value of the future lease payments is $120,400. The lease is for two year at $5,000 per month beginning March 1. March 6: A long-term note for $60,000 was taken out from the bank. The loan is for two years with an interest rate of 6% repayable at maturity. April 22: New equipment was purchased to make printers for $55,000. Use straight line depreciation assuming a 4-year life, with no residual value. Use full year's depreciation for the first year- April 17: 200 shares of common stock with a $1 par value were sold for $20 per share. May 5: Paid cash dividends to stockholders of $22,500. June 22: Purchased 50 shares of the compary's stack at $25 per share. June 30: Book the depreciation for the first half of the year on the printer equipment purchased April June 30: Book the interest for the first half of the year on the loan you took out on March 6. June 30: Book the interest payment and amortization on discount for bond. June 30: Paid the rent expense for the first half of the year in cash. June 30: Book the service revenue of $100,000 for the first half of the year paid in cash. ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please give me answer step by step
Transcribed Image Text:ACC 318 Project One Appendix
The following events occurred during the first half of the year. Book the entries necessary for the corresponding transactions that have occurred.
January 22: Issued $75,000 of 6% term bonds due on January 1, 2025 (10 periods) with interest payable each June 30 and December 31. Investors require an effective
interest rate of 8%. Record the entries for issuance of the bond.
February 28: A new long-term lease is entered into for extra storage space for the new praduct line of ink cartridges. The net present value of the future lease payments is
$120,400. The lease is for two year at $5,000 per month beginning March 1.
March 6: A long-term note for $60,000 was taken out from the bank. The loan is for two years with an interest rate of 6% repayable at maturity.
April 22: New equipment was purchased to make printers for $55,000. Use straight line depreciation assuming a 4-year life, with no residual value. Use full year's
depreciation for the first year-
April 17: 200 shares of common stock with a $1 par value were sold for $20 per share.
May 5: Paid cash dividends to stockholders of $22,500.
June 22: Purchased 50 shares of the compary's stack at $25 per share.
June 30: Book the depreciation for the first half of the year on the printer equipment purchased April
June 30: Book the interest for the first half of the year on the loan you took out on March 6.
June 30: Book the interest payment and amortization on discount for bond.
June 30: Paid the rent expense for the first half of the year in cash.
June 30: Book the service revenue of $100,000 for the first half of the year paid in cash.
?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education