Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 6, Problem 6.5E
Prepare
| Account | Debit | Credit |
| Cash | $ 645,235 | |
| Notes payable, due in 5 years | $ 190,900 | |
| 857,735 | ||
| Obligations under capital leases (noncurrent) | 575,000 | |
| Obligations under pension plans | 301,250 | |
| 35,500 | ||
| Accumulated other comprehensive loss | 356,700 | |
| Current portion of long-term debt | 356,800 | |
| Property, plant, and equipment - net | 2,745,600 | |
| Investments in affiliate companies (noncurrent) | 567,500 | |
| 450,000 | ||
| Bonds payable, due in 10 years | 1,890,750 | |
| Investments at fair value (trading) | 235,000 | |
| Accounts payable | 500,000 | |
| Additional paid-in capital | 710,300 | |
| Dividends payable | 55,000 | |
| Equipment under capital lease | 1,511,750 | |
| Intangible assets – net | 205,700 | |
| Merchandise inventory | 665.750 | |
| Income taxes payable | 40,000 | |
| Common stock, $1 par value | 1,870,000 | |
| Totals | $7,383,235 | $7,383,235 |
Required
- a. Prepare the current-year classified balance sheet using the report format.
- b. Prepare the current-year classified balance sheet using the account format.
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Retirement of Debt
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DESCRIPTION
DOC. NO. POST. REF.
(1) Bonds Payable
Loss on Retirement of Debt
Cash Flows from Financing Activities:
Premium on Bonds Payable
Net Cash Flow from Operating Activities:
Gain on Retirement of Debt
(2) Bonds Payable
Premium on Bonds Payable
Net Cash Flow from Operating Activities:
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Cash Flows…
Retirement of Debt
M Company is preparing its statement of cash flows for the current year. During the year, the company retired two issuances of debt and properly recorded the transactions. These transactions were as follows:
Paid cash of $16,400 to retire bonds payable with a face value of $18,000 and a book value of $16,800.
Paid cash of $46,000 to retire bonds payable with a face value of $43,000 and a book value of $45,000.
Required:
Record, in journal entry form, the entries that M would make for the preceding transactions on its spreadsheet to prepare its statement of cash flows. If an amount box does not require an entry, leave it blank.
DESCRIPTION
DOC. NO.
POST. REF.
DEBIT
CREDIT
(1)
fill in the blank 2
fill in the blank 3
fill in the blank 5
fill in the blank 6
Cash Flows from Financing Activities:
fill in the blank 8
fill in the blank 9
Net Cash Flow from Operating Activities:…
Chapter 6 Solutions
Intermediate Accounting (2nd Edition)
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