The adjusted trial balance for Vaughn Corp. at the end of the current year, 2018, contained the following accounts. 5-year Bonds Payable 8% $1480000 Interest Payable 51000 Premium on Bonds Payable 148000 Notes Payable (3 mo.) 42000 Notes Payable (5 yr.) 150000 Mortgage Payable ($10000 due currently) 300000 Salaries and Wages Payable 22000 Taxes Payable (due 3/15 of 2019) 21000 The total long-term liabilities reported on the balance sheet are $1920000. $2078000. $2068000. $1930000 2QUE S. Lamar performed legal services for E. Garr. Due to a cash shortage, an agreement was reached whereby E. Garr. would pay S. Lamar a legal fee of approximately $13600 by issuing 3400 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $3.70 per share. Given this information, the journal entry for E. Garr. to record this transaction is: Organization Expense 13600 Common Stock 13600 Organization Expense 13600 Common Stock 3400 Paid-in Capital in Excess of Par – Common 10200 Organization Expense 12580 Common Stock 12580 Organization Expense 12580 Common Stock 3400 Paid-in Capital in Excess of Par – Common 9180
The adjusted trial balance for Vaughn Corp. at the end of the current year, 2018, contained the following accounts. 5-year Bonds Payable 8% $1480000 Interest Payable 51000 Premium on Bonds Payable 148000 Notes Payable (3 mo.) 42000 Notes Payable (5 yr.) 150000 Mortgage Payable ($10000 due currently) 300000 Salaries and Wages Payable 22000 Taxes Payable (due 3/15 of 2019) 21000 The total long-term liabilities reported on the balance sheet are $1920000. $2078000. $2068000. $1930000 2QUE S. Lamar performed legal services for E. Garr. Due to a cash shortage, an agreement was reached whereby E. Garr. would pay S. Lamar a legal fee of approximately $13600 by issuing 3400 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $3.70 per share. Given this information, the journal entry for E. Garr. to record this transaction is: Organization Expense 13600 Common Stock 13600 Organization Expense 13600 Common Stock 3400 Paid-in Capital in Excess of Par – Common 10200 Organization Expense 12580 Common Stock 12580 Organization Expense 12580 Common Stock 3400 Paid-in Capital in Excess of Par – Common 9180
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The adjusted
| 5-year Bonds Payable 8% | $1480000 |
| Interest Payable | 51000 |
| Premium on Bonds Payable | 148000 |
| Notes Payable (3 mo.) | 42000 |
| Notes Payable (5 yr.) | 150000 |
| Mortgage Payable ($10000 due currently) | 300000 |
| Salaries and Wages Payable | 22000 |
| Taxes Payable (due 3/15 of 2019) | 21000 |
The total long-term liabilities reported on the balance sheet are
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$1920000. |
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$2078000. |
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$2068000. |
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$1930000 |
2QUE
S. Lamar performed legal services for E. Garr. Due to a cash shortage, an agreement was reached whereby E. Garr. would pay S. Lamar a legal fee of approximately $13600 by issuing 3400 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $3.70 per share. Given this information, the
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