Horngren's Financial & Managerial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780133851267
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 12, Problem 12.41BP
Analyzing and journalizing bond transactions
On January 1, 2016, Technicians Credit Union (TCU) issued 7%, 20-year bonds payable with Face value of $100,000. The bonds pay interest on June 30 and December 31. The issue price of the bonds is 108.
Journalize the following bond transactions:
a. Issuance of the bonds on January 1, 2016.
b. Payment of interest and amortization on June 30, 2016.
c. Payment of interest and amortization on December 31, 2016.
d. Retirement of the bond at maturity on December 31, 2035.
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L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Now assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots?
The following data were taken from the records of Splish Brothers Company for the fiscal year ended June 30, 2025.
Raw Materials Inventory 7/1/24
$58,100
Accounts Receivable
$28,000
Raw Materials Inventory 6/30/25
46,600
Factory Insurance
4,800
Finished Goods Inventory 7/1/24
Finished Goods Inventory 6/30/25
99,700
Factory Machinery Depreciation
17,100
21,900
Factory Utilities
29,400
Work in Process Inventory 7/1/24
21,200
Office Utilities Expense
9,350
Work in Process Inventory 6/30/25
29,400
Sales Revenue
560,500
Direct Labor
147,550
Sales Discounts
4,700
Indirect Labor
25,360
Factory Manager's Salary
63,400
Factory Property Taxes
9,910
Factory Repairs
2,500
Raw Materials Purchases
97,300
Cash
39,200
SPLISH BROTHERS COMPANY
Income Statement (Partial)
$
Chapter 12 Solutions
Horngren's Financial & Managerial Accounting, Student Value Edition (5th Edition)
Ch. 12 - Flipco signed a 10-year note payable on January 1,...Ch. 12 - Daniels's bonds payable carry a stated interest...Ch. 12 - A bond that matures in installments at regular...Ch. 12 - Prob. 4QCCh. 12 - Nicholas Smith Fitness Gym has 700,000 of 20-year...Ch. 12 - Prob. 6QCCh. 12 - Prob. 7QCCh. 12 - The debt to equity ratio is calculated as a. Total...Ch. 12 - Mike Gordon wishes to have 80,000 in five years....Ch. 12 - Prob. 10BQC
Ch. 12 - Prob. 1RQCh. 12 - What is an amortization schedule?Ch. 12 - What is a mortgage payable?Ch. 12 - What is a bond payable?Ch. 12 - What is the difference between the stated interest...Ch. 12 - When does a discount on bonds payable occur?Ch. 12 - When does a premium on bonds payable occur?Ch. 12 - When a bond is issued, what is its present value?Ch. 12 - Why would a company choose to issue bonds instead...Ch. 12 - Prob. 10RQCh. 12 - Prob. 11RQCh. 12 - What is the normal balance of the account Discount...Ch. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16RQCh. 12 - Prob. 17RQCh. 12 - Prob. 18ARQCh. 12 - Prob. 19ARQCh. 12 - Prob. 20ARQCh. 12 - Prob. 21BRQCh. 12 - Prob. 12.1SECh. 12 - Prob. 12.2SECh. 12 - Determining bond prices Bond prices depend on the...Ch. 12 - Prob. 12.4SECh. 12 - Determining bond amounts Quick Drive-Ins borrowed...Ch. 12 - Prob. 12.6SECh. 12 - Prob. 12.7SECh. 12 - Prob. 12.8SECh. 12 - Prob. 12.9SECh. 12 - Prob. 12.10SECh. 12 - Prob. 12.11SECh. 12 - Computing the debt to equity ratio Richards...Ch. 12 - Prob. 12.13SECh. 12 - Prob. 12.14SECh. 12 - Prob. 12.15SECh. 12 - Prob. 12.16SECh. 12 - Accounting for long-term notes payable...Ch. 12 - Prob. 12.18ECh. 12 - Prob. 12.19ECh. 12 - Prob. 12.20ECh. 12 - Prob. 12.21ECh. 12 - Prob. 12.22ECh. 12 - Prob. 12.23ECh. 12 - Prob. 12.24ECh. 12 - Prob. 12.25ECh. 12 - Prob. 12.26ECh. 12 - Prob. 12.27ECh. 12 - Prob. 12.28ECh. 12 - Prob. 12.29ECh. 12 - Prob. 12.30ECh. 12 - Journalizing liability transactions and reporting...Ch. 12 - Analyzing, journalizing, and reporting bond...Ch. 12 - Analyzing and journalizing bond transactions On...Ch. 12 - Analyzing and journalizing bond transactions On...Ch. 12 - Prob. 12.35APCh. 12 - Prob. 12.36APCh. 12 - A Determining the present value of bonds payable...Ch. 12 - Prob. 12.38BPCh. 12 - Prob. 12.39BPCh. 12 - Analyzing and journalizing bond transactions On...Ch. 12 - Analyzing and journalizing bond transactions On...Ch. 12 - Prob. 12.42BPCh. 12 - Prob. 12.43BPCh. 12 - Prob. 12.44BPCh. 12 - Prob. 12.45CPCh. 12 - The following questions are not related....Ch. 12 - Raffle's Kids, a nonprofit organization that...Ch. 12 - Bill and Edna had been married two years and had...Ch. 12 - Prob. 12.1CTFSC
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- No AIarrow_forwardL.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7.In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Assume that a pair of 8" Bean Boots are ordered on December 3, 2015. The order price is $109. The sales tax rate in the state in which the boots are order is 7%. L.L. Bean ships the boots on January 29, 2016. Assume same-day shipping for the sake of simplicity. On what day would L.L. Bean recognize the…arrow_forwardFinancial accounting questionarrow_forward
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