Question:1 Presented is information related to Rogers Co. for the month of January 2010. Ending inventory per perpetual records $21,520 Ending inventory actually on hand Cost of goods sold 21,000 210,000 Freight out Insurance expense Rent expense 7,068 12,300 20,500 Salary expense 62,100 Sales discounts 10,500 Sales returns and allowances 13,700 Sales 350,000 Instructions: (a) Prepare the necessary adjusting entry for inventory. (b) Prepare the necessary closing entries. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Question:2 bad debt expense is $25,000. Allowance for doubtful accounts has a beginning balance of $12,000 and an ending balance of $10,000. What is the book-tax difference associated with bad debt expense? A. $2,000 favorable. B. $2,000 unfavorable. C. $7,000 favorable. D. $7,000 unfavorable. E. None of the above. Question:3 On June 30, 2020, Kingbird Company issued $3,120,000 face value of 15%, 20-year bonds at $3,824,160, a yield of 12%. Kingbird uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entry to record the following transaction: The issuance of the bonds on June 30, 2020.
Question:1 Presented is information related to Rogers Co. for the month of January 2010. Ending inventory per perpetual records $21,520 Ending inventory actually on hand Cost of goods sold 21,000 210,000 Freight out Insurance expense Rent expense 7,068 12,300 20,500 Salary expense 62,100 Sales discounts 10,500 Sales returns and allowances 13,700 Sales 350,000 Instructions: (a) Prepare the necessary adjusting entry for inventory. (b) Prepare the necessary closing entries. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Question:2 bad debt expense is $25,000. Allowance for doubtful accounts has a beginning balance of $12,000 and an ending balance of $10,000. What is the book-tax difference associated with bad debt expense? A. $2,000 favorable. B. $2,000 unfavorable. C. $7,000 favorable. D. $7,000 unfavorable. E. None of the above. Question:3 On June 30, 2020, Kingbird Company issued $3,120,000 face value of 15%, 20-year bonds at $3,824,160, a yield of 12%. Kingbird uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entry to record the following transaction: The issuance of the bonds on June 30, 2020.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 10E: Discounts Nelson Company bought inventory for 50,000 on terms of 2/15, n/60. It pays for the first...
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Transcribed Image Text:Question:1
Presented is information related to Rogers Co. for the month of January 2010.
Ending inventory per perpetual records $21,520
Ending inventory actually on hand
Cost of goods sold
21,000
210,000
Freight out
Insurance expense
Rent expense
7,068
12,300
20,500
Salary expense
62,100
Sales discounts
10,500
Sales returns and allowances
13,700
Sales
350,000
Instructions:
(a) Prepare the necessary adjusting entry for inventory.
(b) Prepare the necessary closing entries. (For multiple debit/credit entries, list
amounts from largest to smallest eg 10, 5, 3, 2.)
Question:2
bad debt expense is $25,000. Allowance for doubtful accounts has a beginning balance
of $12,000 and an ending balance of $10,000. What is the book-tax difference
associated with bad debt expense?
A. $2,000 favorable.
B. $2,000 unfavorable.
C. $7,000 favorable.
D. $7,000 unfavorable.
E. None of the above.
Question:3
On June 30, 2020, Kingbird Company issued $3,120,000 face value of 15%, 20-year bonds
at $3,824,160, a yield of 12%. Kingbird uses the effective-interest method to amortize
bond premium or discount. The bonds pay semiannual interest on June 30 and
December 31. Prepare the journal entry to record the following transaction: The
issuance of the bonds on June 30, 2020.
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