On December 31, 2016, Wesley Inc. granted 4,000 share appreciation rights (SARS) toits employees. When exercised, each SAR paid out the current market price of thecommon shares less $34 (the market price of the common shares on the date of theSAR grant). The vesting period ended on December 30, 2018, and the exercise periodended on December 31, 2019.Information on Wesley Inc.'s plan is as follows:Average cashpaid out onexerciseEstimatedFair value perSARnumber ofSARS vestingNumber ofYear endSARS exercised$ 8Dec 31, 2016Dec 31, 2017Dec 31, 2018Dec 31, 201990%1593%2292% (actual)$182,100141,580Required:Prepare all journal entries for the years ended December 31, 2017, throughDecember 31, 2019, inclusive. (

Journal entry is the process of recording business transactions in the books of accounts for the…

Answered: On December 31, 2016, Wesley Inc.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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World diabetes day company was incorporated on January 1, 2019 with proceeds from issuance of 7.5M in shares and borrowed funds of 1.1M. During the first year of operations, revenue from sales amounting to 820,000 and expenses totaled 640,000. On that year, dividends have been declared worth 30,000 but scheduled to be paid next year (2020). The liabilities at the end of the year 2019 have increased to 1,200,000. Assume other things held constant, how much is the total asset at the end of 2019?
Able Inc. borrowed $60,000 on October 1, 2019 and agreed to pay back $75,000 on October 1, 2022. How much did Able show in interest payable and interest expense in its annual financial statements at December 31, 2021? O Interest expense $5,000; interest payable $11,250 Interest expense $5,000; interest payable $3,750 O Interest expense $5,000; interest payable $5,000 Both interest expense and interest payable $11,250 O Interest expense is $11,250 and interest payable is $5,00O
On July 1, 2020, Thomas Company, which follows calendar year accounting, issued $240.000 note to be repaid over four years in monthly installments of $5,000. What would be the proper balance sheet presentation of this transaction at December 31, year 2020. Show it: The Current Portion of the Long-Term Debt and the Long-Term Debt.
On December 31, 2024, L Incorporated had a $3,000,000 note payable outstanding, due July 31, 2025. L borrowed the money to finance construction of a new plant. L planned to refinance the note by issuing long-term bonds. Because L temporarily had excess cash, it prepaid $650,000 of the note on January 23, 2025. In February 2025, L completed a $4,500,000 bond offering. L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2025. On March 13, 2025, L issued its 2024 financial statements. What amount of the note payable should L include in the current liabilities section of its December 31, 2024, balance sheet? Multiple Choice A. $0 B. $650,000 C. $2,350,000 D. $3,000,000 Please don't provide answer in image format thank you
Included in Sauder Corp.'s liability account balances at December 31, 2009 were the following: 1. 7% note payable issued October 1, 2009, maturing September 30, 2010 in the amount of $250,000 2.8% note payable issued April 1, 2009, payable in six equal annual installments of $150,000 beginning April 1, 2010 in the amount of $600,000 Sauder's December 31, 2009 financial statements were issued on March 31, 2010. On January 15, 2010, the entire $600,000 balance of the 8% note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on March 10, 2010, Sauder consummated a noncancelable agreement with the lender to refinance the 7%, $250,000 note on a long term basis, on readily determinable terms that have not yet been implemented On the December 31, 2009 balance sheet, the amount of the notes payable that Sauder should classify as short-term obligations is: $0 O $50,000 $125.000 $175.000
A Bingo Corporation's board of drectors decdared a P950,000 cash dividend on March 1, 2018, payable on June 1, to shareholders of record on March 15. Prepare all appropriate entries needed on the declaration, record, and payment dates.
On December 31, 2018, L Inc. had a $1,600,000 note payable outstanding, due July 31, 2019. L borrowed the money to finance construction of a new plant. L planned to refinance the note by issuing long-term bonds. Because L temporarily had excess cash, it prepaid $510,000 of the note on January 23, 2019. In February 2019, L completed a $3,100,000 bond offering. L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2019. On March 13, 2019, L issued its 2018 financial statements. What amount of the note payable should L include in the current liabilities section of its December 31, 2018, balance sheet? Multiple Choice $1,090,000. $1,600,000. $510,000. $0. Please don't provide answer in image format thank you
On January 1, 2020, a company issued P10,000,000 bonds that will mature in 5 years. The management decided to set up a separate fund for the retirement of these bonds. The fund is to be placed in a separate account to be maintained in the company's depository bank.In a board resolution, it was decided that deposits of equal amounts will be made every June 30 and December 31, starting June 30, 2020 up to December 31, 2024. The company expects to earn an average interest of 10%, net of tax, on this investment. How much is the required semi-annual deposit that will accumulate P10,000,000 at the end of five years? A. P1,637,975 B. P1,295,052 C. P1,000,000 D. P 795,045
ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The prospectus specified that $3.50 was payable on application, a further $1.25 was payable on allotment and the final $1.25 was payable at call. On 31 January 2019 ABC issued 300,000 shares. On 31 May 2019, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2019. At 30 June 2019, the call on 30,000 shares remained unpaid. Instructions: a) Prepare the journal entries to account for the issue of shares for ABC and ( ... b) The Share Capital that would appear in the Balance Sheet of ABC Co. .--
The following selected transactions relate to liabilities of Chicago Glass Corporation for 2024. Chicago's fiscal year ends on December 31. On January 15, Chicago received $7,400 from Henry Construction toward the purchase of $70,000 of plate glass to be delivered on February 6. On February 3, Chicago received $7,100 of refundable deposits relating to containers used to transport glass components. On February 6, Chicago delivered the plate glass to Henry Construction and received the balance of the purchase price. First quarter credit sales totaled $740,000. The state sales tax rate is 4% and the local sales tax rate is 2%. Required: Prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
During the financial year ending May 31, 2020 the Board of Directors of Chung Sa Corporation authorised the write off of a $3,000 two-year debt belonging to a previous customer Jap Inc. On July 2, 2020 Chung Sa Corporation received an electronic funds transfer from Jap Inc. in the amount of $3,000. Required: Prepare all necessary journal entries to record this transaction.
Transactions during 2020 follow: Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable. Purchased equipment for $18,000 cash on July 1, 2020. Sold 10,000 additional shares of capital stock for cash at $0.50 market value per share at the beginning of the year. Earned $70,000 in revenues for 2020, including $14,000 on credit and the rest in cash. Incurred $27,000 in wages expense and $8,000 in miscellaneous expenses for 2020, with $7,000 on credit and the rest paid with cash. Note: Wages are paid in cash. Purchased additional small tools, $3,000 cash. Collected accounts receivable, $8,000. Paid accounts payable, $11,000. Purchased $10,000 of supplies on account. Received a $3,000 deposit on work to start January 15, 2021. Declared a cash dividend on December 1, $10,000; paid on December 31. Data for adjusting entries: Supplies of $4,000 and small tools of $8,000 were counted on December 31, 2020 (debit Miscellaneous Expenses). Depreciation for 2020,…

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