C11-1 (Algo) Financial Reporting of Depreciation, Write-off, Bond Issuance and Common Stock Issuance, Purchase, Reissuance, and Cash Dividends [Chapters 4, 8, 9, 10, and 11) [LO 4-2, 4-5, 8-2, 9-3, 10-3, 11-2, 11-3] Bender Industries, reported the following account balances on January 1. Credit Accounts Receivable Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Buildings Cash Common Stock, 10,000 shares of $1 par Notes Payable (long-term) Retained Earnings Treasury Stock TOTALS Debit $ 5,000 249,000 10,500 0 $ 264,500 $ 30,000 92,000 2,000 0 10,000 10,500 120,000 $ 264,500 The company entered into the following transactions during the year. January 15 Issued 6,000 shares of $1 par common stock for $52,000 cash. January 31 Collected $3,000 from customers on account. February 15 Reacquired 3,020 shares of $1 par common stock into treasury for $33, 220 cash. March 15 Reissued 2,020 shares of treasury stock for $24,220 cash. August 15 Reissued 600 shares of treasury stock for $4,600 cash. September 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. October 1 Issued 100, 10-year, $1,020 bonds, at a quoted bond price of 101. October 3 Wrote off a $1,500 balance due from a customer who went bankrupt. December 29 Recorded $232,000 of service revenue, all of which was collected in cash. December 30 Paid $202,000 cash for this year's wages through December 31. (Igno re payroll taxes and payroll deductions.) December 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.)
C11-1 (Algo) Financial Reporting of Depreciation, Write-off, Bond Issuance and Common Stock Issuance, Purchase, Reissuance, and Cash Dividends [Chapters 4, 8, 9, 10, and 11) [LO 4-2, 4-5, 8-2, 9-3, 10-3, 11-2, 11-3] Bender Industries, reported the following account balances on January 1. Credit Accounts Receivable Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Buildings Cash Common Stock, 10,000 shares of $1 par Notes Payable (long-term) Retained Earnings Treasury Stock TOTALS Debit $ 5,000 249,000 10,500 0 $ 264,500 $ 30,000 92,000 2,000 0 10,000 10,500 120,000 $ 264,500 The company entered into the following transactions during the year. January 15 Issued 6,000 shares of $1 par common stock for $52,000 cash. January 31 Collected $3,000 from customers on account. February 15 Reacquired 3,020 shares of $1 par common stock into treasury for $33, 220 cash. March 15 Reissued 2,020 shares of treasury stock for $24,220 cash. August 15 Reissued 600 shares of treasury stock for $4,600 cash. September 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. October 1 Issued 100, 10-year, $1,020 bonds, at a quoted bond price of 101. October 3 Wrote off a $1,500 balance due from a customer who went bankrupt. December 29 Recorded $232,000 of service revenue, all of which was collected in cash. December 30 Paid $202,000 cash for this year's wages through December 31. (Igno re payroll taxes and payroll deductions.) December 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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C11-1 (Algo) Financial Reporting of Depreciation, Write-off, Bond Issuance and Common Stock Issuance,
Purchase, Reissuance, and Cash Dividends [Chapters 4, 8, 9, 10, and 11) [LO 4-2, 4-5, 8-2, 9-3, 10-3, 11-2,
11-3]
Bender Industries, reported the following account balances on January 1.
Credit
Accounts Receivable
Accumulated Depreciation
Additional Paid-in Capital
Allowance for Doubtful
Accounts
Bonds Payable
Buildings
Cash
Common Stock, 10,000 shares
of $1 par
Notes Payable (long-term)
Retained Earnings
Treasury Stock
TOTALS
Debit
$ 5,000
249,000
10,500
0
$
264,500
$
30,000
92,000
2,000
0
10,000
10,500
120,000
The company entered into the following transactions during the year.
January 15 Issued 6,000 shares of $1 par common stock for $52,000 cash.
January 31 Collected $3,000 from customers on account.
February 15 Reacquired 3,020 shares of $1 par common stock into treasury for $33, 220
View transaction list
$
264,500
cash.
March 15 Reissued 2,020 shares of treasury stock for $24,220 cash.
August 15 Reissued 600 shares of treasury stock for $4,600 cash.
September 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding
share of common stock.
October 1 Issued 100, 10-year, $1,020 bonds, at a quoted bond price of 101.
October 3 Wrote off a $1,500 balance due from a customer who went bankrupt.
December 29 Recorded $232,000 of service revenue, all of which was collected in cash.
December 30 Paid $202,000 cash for this year's wages through December 31. (Ignore
payroll taxes and payroll deductions.)
Date
December
31
December 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore
accrual adjustments for interest and income taxes.)
General General Trial Balance Debt to
Journal Ledger Balance Sheet Assets
Require...
Prepare the journal entries to record each transaction. Review the accounts as shown in the
General Ledger and Trial Balance tabs. (Do not round intermediate calculations.
required for a transaction/event, select "No journal entry required" in the first account field.)
no entry is
Show less A
Journal entry worksheet
< 1
6 7 8 9 10 11 12 13
Prepare a closing journal entry for the income statement
accounts, assuming the events on December 29-31
were the only transactions to affect income statement
accounts. Record the transaction.
Note: Enter debits before credits.
General Journal
Debit
Credit
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Transcribed Image Text:S
C11-1 (Algo) Financial Reporting of Depreciation, Write-off, Bond Issuance and Common Stock Issuance,
Purchase, Reissuance, and Cash Dividends [Chapters 4, 8, 9, 10, and 11) [LO 4-2, 4-5, 8-2, 9-3, 10-3, 11-2,
11-3]
Bender Industries, reported the following account balances on January 1.
Credit
Accounts Receivable
Accumulated Depreciation
Additional Paid-in Capital
Allowance for Doubtful
Accounts
Bonds Payable
Buildings
Cash
Common Stock, 10,000 shares
of $1 par
Notes Payable (long-term)
Retained Earnings
Treasury Stock
TOTALS
Debit
$ 5,000
249,000
10,500
0
$
264,500
$
30,000
92,000
2,000
0
10,000
10,500
120,000
The company entered into the following transactions during the year.
January 15 Issued 6,000 shares of $1 par common stock for $52,000 cash.
January 31 Collected $3,000 from customers on account.
February 15 Reacquired 3,020 shares of $1 par common stock into treasury for $33, 220
View transaction list
$
264,500
cash.
March 15 Reissued 2,020 shares of treasury stock for $24,220 cash.
August 15 Reissued 600 shares of treasury stock for $4,600 cash.
September 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding
share of common stock.
October 1 Issued 100, 10-year, $1,020 bonds, at a quoted bond price of 101.
October 3 Wrote off a $1,500 balance due from a customer who went bankrupt.
December 29 Recorded $232,000 of service revenue, all of which was collected in cash.
December 30 Paid $202,000 cash for this year's wages through December 31. (Ignore
payroll taxes and payroll deductions.)
Date
December
31
December 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore
accrual adjustments for interest and income taxes.)
General General Trial Balance Debt to
Journal Ledger Balance Sheet Assets
Require...
Prepare the journal entries to record each transaction. Review the accounts as shown in the
General Ledger and Trial Balance tabs. (Do not round intermediate calculations.
required for a transaction/event, select "No journal entry required" in the first account field.)
no entry is
Show less A
Journal entry worksheet
< 1
6 7 8 9 10 11 12 13
Prepare a closing journal entry for the income statement
accounts, assuming the events on December 29-31
were the only transactions to affect income statement
accounts. Record the transaction.
Note: Enter debits before credits.
General Journal
Debit
Credit
>
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