COLLEGE ACCOUNTING CH. 1-9 (LOW COST)
COLLEGE ACCOUNTING CH. 1-9 (LOW COST)
23rd Edition
ISBN: 9780357069493
Author: HEINTZ
Publisher: CENGAGE L
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Chapter 22, Problem 13SPB

(a)

To determine

Journalize the entry for the issuance of bonds in the books of C Entertainment.

(b)

To determine

Record the journal entry for the initial deposit to the bond sinking fund.

(c)

To determine

Journalize the entry for the semiannual interest payment in the books of C Entertainment.

(d)

To determine

Record the journal entry for the first year’s sinking fund earnings.

(e)

To determine

Journalize the entry for the year-end adjustment in the books of C Entertainment.

(f)

To determine

Journalize the entry to reverse the year-end adjustment in the books of C Entertainment.

(g)

To determine

Journalize the entry for the semiannual interest payment in the books of C Entertainment.

(h)

To determine

Record the journal entry for the deposit to bond sinking fund.

(i)

To determine

Record the journal entry for the redemption of the bonds.

(j)

To determine

Record the journal entry for the return of excess cash in the sinking fund to the corporation.

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Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The following information was provided for the coming year. Sales $9,70,000 $31,00,000 Variable cost of goods sold 4,60,000 16,30,000 1,60,000 2,00,000 Direct fixed overhead A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000. Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing.
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COLLEGE ACCOUNTING CH. 1-9 (LOW COST)

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