Question

XYZ Corporation issued bonds on January 1, 2020 with a face value of $1,000, 10% stated interest rate, with semi-annual payments, and a maturity date of December 31, 2024 (4 years). The market interest rate is 8%.

Required: (Answers may be rounded to the nearest dollar)

1. Compute the market price of the bonds and the journal entry to record issuance of the bonds on January 1, 2020. 2. Record the journal entry for the first semi-annual interest payment on July 1, 2020 using the effective interest rate method.

Chapter 15

Prepare an Income Statement (including cost of goods sold calculation) and a Statement of Cost of Goods Manufactured for the month ended January 31 in proper form using the following information (note that some balances are missing and must be computed):

(in $000's)

Sales revenue $1,127.0

Cost of goods sold ?

Gross profit ? / Net income ?

Operating expenses (selling and administrative) 117.6

Direct materials inventory January 1 65.8

Direct materials inventory January 31 ?

Direct materials purchased 282.8

Cost of Direct materials used 317.8

Direct labor costs 387.8

FOH costs 148.4

Total manufacturing costs in January ?

Total manufacturing costs 973.0

WIP inventory Janaury 1 119.0

WIP inventory January 31 172.2

Cost of goods manufactured ?

FG inventory January 1 224.0

FG inventory Janaury 31 197.4

Answer 1