Chapter 3 Exercises i1On May 1, Year 1, a company paid an $19,800 premium on a 36-month insurance policy for coverage beginning on that date Refer tothat policy and fill in the blanks in the following table.ebook41PinenesATfogGrewFORBalance SheetPrepaid InsuranceDecember 31, Year 1December 31, Year 2December 31, Year 3December 31, Year 4Accrual Basis Cash Basiss19.800 S0Year 10 Year 2Year 3Year 4TotalIncome StatementInsurance ExpenseAccrual Basis Cash Blasis$Search0$01SavedPrevtusNost >

Accrual basis of accounting, is income and expense are recorded in the period in which they…

Chapter 3 Exercises i 1 On May 1 Year 1, a company paid an $19,800 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the following table. Pens Balance Sheet Prepaid Insurance December 31, Year 1 December 31, Year 2 December 31 Year 3 December 31, Year 4 Accrual Basis Cash Basis 14 19.800 Your t Your 2 Year 3 Year 4 Total Income Statement Insurance Expense Accrual Basis Cash Besis $ Seve IS

Chapter 3 Exercises i 1 On May 1 Year 1, a company paid an $19,800 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the following table. Pens Balance Sheet Prepaid Insurance December 31, Year 1 December 31, Year 2 December 31 Year 3 December 31, Year 4 Accrual Basis Cash Basis 14 19.800 Your t Your 2 Year 3 Year 4 Total Income Statement Insurance Expense Accrual Basis Cash Besis $ Seve IS

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter11: Liabilities: Bonds Payable

Section: Chapter Questions

Problem 11.15EX: Amortize premium by interest method Shunda Corporation wholesales parts to appliance manufacturers....

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Chapter 10 Liabilities: Current, Installment Notes, Contingencies blems: Series A PR 10-1A Liability transactions Obj, 1,5 The following items were selected from among the transactions completed by Sherwood c during the current year: GENERAL LEDGER Mar. 1. Purchased merchandise on account from Kirkwood Co., $175,000, terms n/30. 31. Issued a 30-day, 6% note for $175,000 to Kirkwood Co., on account. Apr. 30. Paid Kirkwood Co. the amount owed on the note of March 31. June 1. Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 5% note. July 1. Purchased tools by issuing a $45,000, 60-day note to Poulin Co., which discounted the note at the rate of 7 16. Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6% note for $400,000. (Journalize both the debit and credit to the notes payable account) Aug. 15. Paid Triple Creek Bank the amount due on the note of July 16. 30. Paid Poulin Co. the amount due on the note of July 1. 1.…
Amortize premium by interest method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued 22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of 23,829,684. Interest is payable semiannually. Shundas fiscal year begins on January 1. The company uses the interest method. A. Journalize the entries to record the following: 1. Sale of the bonds. 2. First semiannual interest payment, including amortization of premium. (Round to the nearest dollar.) 3. Second semiannual interest payment, including amortization of premium. (Round to the nearest dollar.) B. Determine the bond interest expense for the first year. C. Explain why the company was able to issue the bonds for 23,829,684 rather than for the face amount of 22,000,000.
Saved Exercise 9-4 Interest-bearlng notes payable with year-end adjustments LO P1 Keesha Co. borrows $235,000 cash on November 1 of the current year by signing a 90-day, 11%, $235,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Req 4 What is the amount of interest expense in the current year and the following year from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.) es Interest Total through maturity Interest Expense Current Year Expense Following Year Principal Rate (%) Time Total interest
Question 6 On Octobel 31, 2020, Tarling Company neguiated a one year 100.000-eanc loan kon a f n bank at an intert rate of 3% per yea tont paymen e mae s on Odb 31, nd peincipal wilf be repaid on October 31 2021 Tarling prepares US dolla financial tatoments and han a Deconber 31 year end Date ranc Rate October 31, 2020 30 49 December 31, 2020 S0 55 October 31, 2021 50 65 Required: Assuming the above information Prepare all jounal entries related to thi foreign orency bonowing
Question 9 On 1 Dec. 2020, Segma Trading Co. borrowed $300,000 for 90 days at 5% by signing a note payable on the same amount Required: Select the right journal entry to record the payment of the note at its maturity date. O Dr. Note Payable $300,000 Dr. Interest Payable $2,500 Dr. Interest Expence $1,250 O Dr. Cash Cr. Cash $303,750 Cr. Note Payable $300,000 Cr. Interest Expence $2,500 Cr. Interest Payable $1,250 O Dr. Note Payable $300,000 Dr. Interest Expence $2,500 Dr. Interest Payable $1,250 Cr. Cash $303,750 O Dr. Note Payable $300,000 Dr. Interest Expence $3,750 Cr. Cash $303,750 $303,750
Question Content Area A $36,000, 60-day, 5% note, dated May 1, is received from a customer on account. Assume a 360-day year, the maturity value of the note is a. $36,000 b. $36,300 c. $37,800 d. $300
Question 31 Nelsie Corporation has an outstanding 60- day 6% note receivable armounting to P 15.000 dated December 1 of the current yoar. The company is using the calendar yoar in preparing its financial statomonts. What account should be creditod and what is the amount? Interest Income, P 75 Interest Income, P 900 Oc Accrued Interest Income, P 150 Unearmed Interest Income, P150
Exerclse 9-4 Interest-bearlng notes payable with year-end adjustments LO P1 Keesha Co. borrows $235,000 cash on November 1 of the current year by signing a 90-day, 11%. $235,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 and 3 Req 4 Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. (Use 360 days a year. Do not round internmediate calculations.) No Transaction General Journal Debit Credit (a) Cash 235,000 O Notes payable 235,000 O (b) Interest expense 4,308 O Interest payable 4,308 O 3 (c) Interest payable 2,154 X Interest expense 4,308 X Notes…
Question Content Area Assuming a 360-day year, when a $15,586, 90-day, 7% interest-bearing note payable matures, total payment will be a.$1,091 b.$16,677 c.$15,859 d.$273
Question 2 The capital balance in a sole proprietorship was R800 000 on 29 February 2020, the end of the financial year. The net profit and drawings for the year ended 29 February 2020 amounted to R300 000 and R100 000 respectively. The capital balance on 01 March 2019 was Select one: a. R1 000 000 b. R400 000 c. R600 000 d. R1 200 000
Please continue assisting with questions 4,5 6 Problem #1 Hillside issues $4,000,000, 6%, 15-year bonds dated January 1, 2023. The bonds pay interest semi-annually on June 30 and December 31. The bonds were issued at $3,456,400. Record the journal entry to issue the bonds on January 1, 2023. a. Record the journal entry to pay the semi-annual interest payment and amortize the discount on June 30, 2023. Record the journal entry to pay the semi-annual interest payment and amortize the discount on Dec. 31, 2023. On March 31, 2029, Hillside calls the bonds at 101. Record the journal entry to call the bonds. What is the total interest expense for the bonds for: One full year? The entire 15-year life of the bond? (if the bond had been held until maturity) What is the carrying value of the bonds on: December 31, 2023? December 31, 2024?
Please assist with 7,8,9,10 Problem #1 Hillside issues $4,000,000, 6%, 15-year bonds dated January 1, 2023. The bonds pay interest semi-annually on June 30 and December 31. The bonds were issued at $3,456,400. Record the journal entry to issue the bonds on January 1, 2023. a. Record the journal entry to pay the semi-annual interest payment and amortize the discount on June 30, 2023. Record the journal entry to pay the semi-annual interest payment and amortize the discount on Dec. 31, 2023. On March 31, 2029, Hillside calls the bonds at 101. Record the journal entry to call the bonds. What is the total interest expense for the bonds for: One full year? The entire 15-year life of the bond? (if the bond had been held until maturity) What is the carrying value of the bonds on: December 31, 2023? December 31, 2024?