Reference a) b) c) d) e) f) Date Transactions - December 20X2 12/1/20X2 Close out November's revenue and expense activity to retained earnings (Note - November's Net Income was $13,933). 12/2/20X2 Received cash payment of $67,500 from a customer for payment of 15 tables sold to the customer in November. In November, a customer paid Bengal cash of $3,200 to provide restoration services (accounted for in November). On December 3, Bengal completed the restoration project and returned the refurbished furniture to the customer. 12/3/20X2 12/3/20X2 Sold 50 tables to a local business for $4,500 per table. The customer paid cash of $25,000 on the date of purchase, with payment of the remaining balance due in 30 days. Bengal originally purchased the inventory for $142,000. In addition, Bengal agreed to make any needed repairs for free for the first 90 days after purchase, a perk Bengal provides for all of their customers at no additional charge. 12/8/20X2 On December 8, a local hotel paid Bengal $90,000 for a package deal. The deal includes the purchase of a variety of furniture (delivered to the hotel on December 8th), and a one-year restoration service agreement to repair the rest of the furniture at the hotel. The restoration work will begin in 2023. The furniture (inventory) originally cost Bengal $20,000 when they purchased it earlier this year. If Bengal were to sell the furniture on it's own, the price would be $65,000. The restoration services would normally be priced at $85,000. Record all necessary journal entries on December 8th. 12/1/20X2 To increase available capital, Bengal issued 1,000 bonds with a stated interest rate of 5% and face value of $10,000 per bond. The bonds will make monthly interest payments at the end of each month and mature in 5 years. The market rate of interest for similar bonds at the time of issuance was 6%. Calculate the bond issuance price, and record the sale/issuance of all 1,000 hud
Reference a) b) c) d) e) f) Date Transactions - December 20X2 12/1/20X2 Close out November's revenue and expense activity to retained earnings (Note - November's Net Income was $13,933). 12/2/20X2 Received cash payment of $67,500 from a customer for payment of 15 tables sold to the customer in November. In November, a customer paid Bengal cash of $3,200 to provide restoration services (accounted for in November). On December 3, Bengal completed the restoration project and returned the refurbished furniture to the customer. 12/3/20X2 12/3/20X2 Sold 50 tables to a local business for $4,500 per table. The customer paid cash of $25,000 on the date of purchase, with payment of the remaining balance due in 30 days. Bengal originally purchased the inventory for $142,000. In addition, Bengal agreed to make any needed repairs for free for the first 90 days after purchase, a perk Bengal provides for all of their customers at no additional charge. 12/8/20X2 On December 8, a local hotel paid Bengal $90,000 for a package deal. The deal includes the purchase of a variety of furniture (delivered to the hotel on December 8th), and a one-year restoration service agreement to repair the rest of the furniture at the hotel. The restoration work will begin in 2023. The furniture (inventory) originally cost Bengal $20,000 when they purchased it earlier this year. If Bengal were to sell the furniture on it's own, the price would be $65,000. The restoration services would normally be priced at $85,000. Record all necessary journal entries on December 8th. 12/1/20X2 To increase available capital, Bengal issued 1,000 bonds with a stated interest rate of 5% and face value of $10,000 per bond. The bonds will make monthly interest payments at the end of each month and mature in 5 years. The market rate of interest for similar bonds at the time of issuance was 6%. Calculate the bond issuance price, and record the sale/issuance of all 1,000 hud
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Write out the
Transcribed Image Text:Reference
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
1)
m)
n)
o)
Date
Transactions - December 20X2
12/3/20X2
12/1/20X2 Close out November's revenue and expense activity to retained earnings (Note - November's Net Income was $13,933).
12/2/20X2 Received cash payment of $67,500 from a customer for payment of 15 tables sold to the customer in November.
In November, a customer paid Bengal cash of $3,200 to provide restoration services (accounted for in November). On
December 3, Bengal completed the restoration project and returned the refurbished furniture to the customer.
Sold 50 tables to a local business for $4,500 per table. The customer paid cash of $25,000 on the date of purchase, with
payment of the remaining balance due in 30 days. Bengal originally purchased the inventory for $142,000. In addition, Bengal
agreed to make any needed repairs for free for the first 90 days after purchase, a perk Bengal provides for all of their
customers at no additional charge.
12/3/20X2
12/8/20X2 On December 8, a local hotel paid Bengal $90,000 for a package deal. The deal includes the purchase of a variety of furniture
(delivered to the hotel on December 8th), and a one-year restoration service agreement to repair the rest of the furniture at
the hotel. The restoration work will begin in 2023. The furniture (inventory) originally cost Bengal $20,000 when they
purchased it earlier this year. If Bengal were to sell the furniture on it's own, the price would be $65,000. The restoration
services would normally be priced at $85,000. Record all necessary journal entries on December 8th.
12/1/20X2 To increase available capital, Bengal issued 1,000 bonds with a stated interest rate of 5% and face value of $10,000 per bond.
The bonds will make monthly interest payments at the end of each month and mature in 5 years. The market rate of interest
for similar bonds at the time of issuance was 6%. Calculate the bond issuance price, and record the sale/issuance of all 1,000
bonds.
12/10/20X2
12/12/20X2
12/31/20X2
Purchased 10,000 shares of Apple stock as an investment when the stock was trading at $125.00 per share. Bengal plans to hold the
shares for the long-term, but will use the fair value method to account for the investment.
Record any necessary year-end adjusting entries for the Apple stock investment. The stock is trading for $143.00 per share as
of December 31, 20X2.
A former client his filed a lawsuit against Bengal, suing for damages of $2,500,000 related to an incident in which the former
client was injured while trying to sit down in a chair Bengal had previously worked on. Bengal's attorney believes the case is
frivolous and will be thrown out by the judge, and assess the liklihood of Bengal having to pay anything at "remote".
12/31/20X2
Bengal pays rent for their office facilities on a monthly basis. December's rent of $5,100 was paid in cash in November (and
that payment was recorded in November). Record any necessary month-end adjustments for December's rent.
Paid $5,500 in cash for January's rent.
12/31/20X2
12/30/20x2 Employee gross wages due for the month of December were $16,000. Bengal withheld cash for payroll liabilities consisting of FICA
taxes of $1,250, and employee income taxes of $1,100. The remaining net cash due to the employees was paid to the employees on
December 30th. Record two journal entries, #1 for December's wage expense, and #2 for December's payroll tax match.
12/31/20X2 Bengal remitted (paid) the cash withheld for all payroll tax liabilities to the appropriate government agency (paying cash
withheld from November's pay, cash withheld from December's pay, and November & December's FICA matching
requirements.
12/31/20X2 Depreciation on the Equipment for the month of December totaled $2,000.
12/31/20X2 Record the first interest payment made on the bonds issued in transaction "f".
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