(A) Introduction: If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending. To choose: Pass journal entry for accrue interest

Question

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Answer 1

Question

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

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Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600.Self-Employment tax =

Question 2 U. Richards does not keep his books on the double entry system. His bank summary amount for 2010 is as follows: Balance 1.1.2010 1890 Receipts from $44656 debtors Creditors Loan from U. Miller $2.000 Rates Rent Drawings Cash withdrawn from bank $540 0 Payment to Trade $316 95 2750 1316 3095 1642 Sundry Expense Records of cash paid were sundry $122, trade creditors $642. Cash sales amounted to cash drawings were $5289. The following information is also available: 31.12.201 31.12.2 0 011 Cash in hand $48 $93 Trade creditors $4896 $5091 Accounts Receivables 60 $71 13 32 Rent Owing $250 Rates in Advance $282 $312 Motor van (at valuation) 2800 2400 Stock 11163 13021 Required: A. Statement of Affairs. (to find opening capital as at 31.12.2010) B. Cash Account & Bank Account. C. Accounts Receivables & Accounts Payables Control A/Cs. D. Income Statement for the year ended 31 December 2011.

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Answer 2

Question

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Expert Solution & Answer

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Answer 3

Question

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Answer 6

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

Answer 7

Chapter 7, Problem 7.34C

To determine

(A)

Introduction:

If company has not yet made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then the company must record the entry even if payment of interest is still pending.

To choose:

Pass journal entry for accrue interest

Answer 8

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

Answer 9

To determine

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

Answer 10

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

Answer 11

To determine

(C)

Introduction:

If the rate of debenture will be reduced then company must be repurchase the bonds form the market and also issue new debenture because the rate of interest will be paid in future is less compare with the current market rate.

To choose: what is the action of company if rate of interest reduced in the market.

Answer 12

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

Answer 13

To determine

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

Answer 14

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Answer 15

To determine

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 7 - Prob. 7.1ME Ch. 7 - Mini-Exercise 7.2 LO 4 Other accrued...Ch. 7 - Mini-Exercise 7.3 LO 5 Other accrued...Ch. 7 - Prob. 7.4ME Ch. 7 - Exercise 7.5 LO 2 Notes payable-discount basis On...Ch. 7 - Prob. 7.6E Ch. 7 - Exercise 7.7 LO 4 Other accrued...Ch. 7 - Exercise 7.8 LO 5 Other accrued liabilities-real...Ch. 7 - Exercise 7.9 LO 5 Other accrued...Ch. 7 - Exercise 7.10 LO 5 Other accrued...

(B) Introduction: If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest. To choose: Pass journal entry for accrue interest

(D) Introduction: Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow. To choose: Market rate has been reduce, is this situation is better for company or not.

(E) Introduction: Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement. To choose: What type of account will be affected?

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Chapter 7 Solutions

(B)

Introduction:

If company yet not made an adjustment to accrue the interest expense related to its working capital loans for the year ended December 31, 2017, then company must record the entry even company is still pay the interest.

To choose:

Pass journal entry for accrue interest

(D)

Introduction:

Ifmarket rate of company will be decline comparison to market rate then this is better for company because company will issue more debentures and company can grow.

To choose:

Market rate has been reduce, is this situation is better for company or not.

(E)

Introduction:

Serial bonds are due in current year and the paid installment. If installment is paid then the amount will be affected in the bonds account and income statement.

To choose: What type of account will be affected?