The following information applies to the questions displayed below.] A company incurred the following transactions: a. Recorded the financing (capital) lease of a truck. The present value of the lease payments is $72,000; the total of the lease payments to be made is $85,000. . Recorded the company's payroll for the month. Gross pay was $8,600, net pay was $5,800, and various withholding liability accounts were credited for the difference. . Issued $28,000 of bonds payable at a price of 104. 1. Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $4,900. e. Retired $15,700 face amount of bonds payable with a carrying value of $15,500 by calling them at a redemption value of 102. f. Accrued estimated annual health care costs for retirees; $21,500 is expected to be paid within a year, and $162,000 is expected to be paid in more than a year.
The following information applies to the questions displayed below.] A company incurred the following transactions: a. Recorded the financing (capital) lease of a truck. The present value of the lease payments is $72,000; the total of the lease payments to be made is $85,000. . Recorded the company's payroll for the month. Gross pay was $8,600, net pay was $5,800, and various withholding liability accounts were credited for the difference. . Issued $28,000 of bonds payable at a price of 104. 1. Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $4,900. e. Retired $15,700 face amount of bonds payable with a carrying value of $15,500 by calling them at a redemption value of 102. f. Accrued estimated annual health care costs for retirees; $21,500 is expected to be paid within a year, and $162,000 is expected to be paid in more than a year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Do not give solution in image format Otherwise I will downvote.
![Required information
[The following information applies to the questions displayed below.]
A company incurred the following transactions:
a. Recorded the financing (capital) lease of a truck. The present value of the lease payments is $72,000; the total of the
lease payments to be made is $85,000.
b. Recorded the company's payroll for the month. Gross pay was $8,600, net pay was $5,800, and various withholding
liability accounts were credited for the difference.
c. Issued $28,000 of bonds payable at a price of 104
d. Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $4,900.
e. Retired $15,700 face amount of bonds payable with a carrying value of $15,500 by calling them at a redemption value
of 102.
f. Accrued estimated annual health care costs for retirees; $21,500 is expected to be paid within a year, and $162,000 is
expected to be paid in more than a year.
Required:
a-1. Show the effect, if any, of each transaction/adjustment on the appropriate balance sheet category or on net income by selecting
for each category affected the account name and amount, and indicating whether it is an addition (+) or a subtraction (-). Items that
affect net income should not also be shown as affecting stockholders' equity.
Transaction/
Adjustment
a.
b.
C.
d.
e.
f.
Current Asset
Non-Current Asset
Current Liabilities
Non-Current Liabilities
Stockholders' Equity
Net Income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faaae2147-9264-47d1-984e-b2380e2f6ae6%2F2244b21c-7cf2-4b75-b69d-6882ed5e0f50%2Fux6i0ro_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
A company incurred the following transactions:
a. Recorded the financing (capital) lease of a truck. The present value of the lease payments is $72,000; the total of the
lease payments to be made is $85,000.
b. Recorded the company's payroll for the month. Gross pay was $8,600, net pay was $5,800, and various withholding
liability accounts were credited for the difference.
c. Issued $28,000 of bonds payable at a price of 104
d. Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $4,900.
e. Retired $15,700 face amount of bonds payable with a carrying value of $15,500 by calling them at a redemption value
of 102.
f. Accrued estimated annual health care costs for retirees; $21,500 is expected to be paid within a year, and $162,000 is
expected to be paid in more than a year.
Required:
a-1. Show the effect, if any, of each transaction/adjustment on the appropriate balance sheet category or on net income by selecting
for each category affected the account name and amount, and indicating whether it is an addition (+) or a subtraction (-). Items that
affect net income should not also be shown as affecting stockholders' equity.
Transaction/
Adjustment
a.
b.
C.
d.
e.
f.
Current Asset
Non-Current Asset
Current Liabilities
Non-Current Liabilities
Stockholders' Equity
Net Income
![Required information
[The following information applies to the questions displayed below.]
A company incurred the following transactions:
a. Recorded the financing (capital) lease of a truck. The present value of the lease payments is $72,000; the total of the
lease payments to be made is $85,000.
b. Recorded the company's payroll for the month. Gross pay was $8,600, net pay was $5,800, and various withholding
liability accounts were credited for the difference.
c. Issued $28,000 of bonds payable at a price of 104.
d. Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $4,900.
e. Retired $15,700 face amount of bonds payable with a carrying value of $15,500 by calling them at a redemption value
of 102.
f. Accrued estimated annual health care costs for retirees; $21,500 is expected to be paid within a year, and $162,000 is
expected to be paid in more than a year.
. Record the journal entries to show each transaction/adjustment. (If no entry is required for a transaction/event, select "No
rnal entry required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
Recorded the financing (capital) lease of a truck. The present value of the
lease payments is $72,000; the total of the lease payments to be made is
$85,000.
Transaction
a.
3 4 5 6
Note: Enter debits before credits.
General Journal
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faaae2147-9264-47d1-984e-b2380e2f6ae6%2F2244b21c-7cf2-4b75-b69d-6882ed5e0f50%2Fxe0fzyk_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
A company incurred the following transactions:
a. Recorded the financing (capital) lease of a truck. The present value of the lease payments is $72,000; the total of the
lease payments to be made is $85,000.
b. Recorded the company's payroll for the month. Gross pay was $8,600, net pay was $5,800, and various withholding
liability accounts were credited for the difference.
c. Issued $28,000 of bonds payable at a price of 104.
d. Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $4,900.
e. Retired $15,700 face amount of bonds payable with a carrying value of $15,500 by calling them at a redemption value
of 102.
f. Accrued estimated annual health care costs for retirees; $21,500 is expected to be paid within a year, and $162,000 is
expected to be paid in more than a year.
. Record the journal entries to show each transaction/adjustment. (If no entry is required for a transaction/event, select "No
rnal entry required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
Recorded the financing (capital) lease of a truck. The present value of the
lease payments is $72,000; the total of the lease payments to be made is
$85,000.
Transaction
a.
3 4 5 6
Note: Enter debits before credits.
General Journal
Debit
Credit
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