Question

In: Accounting

At the end of 2015, Majors Furniture Company failed to accrue $66,500 of interest expense that...

At the end of 2015, Majors Furniture Company failed to accrue $66,500 of interest expense that accrued during the last five months of 2015 on bonds payable. The bonds mature in 2027. The discount on the bonds is amortized by the straight-line method.

The following entry was recorded on February 1, 2016, when the semiannual interest was paid: Interest expense 79,800 Discount on bonds payable 2,300 Cash 77,500

Required: Prepare any journal entry necessary to correct the error as well as any adjusting entry for 2016 related to the situation described. (Ignore income taxes.) (Do not round intermediate calculations and round your final answers to nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare journal entry that should have been recorded, if done correctly to start. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

At the end of 2017, Majors Furniture Company failed to accrue $68,500 of interest expense that...
At the end of 2017, Majors Furniture Company failed to accrue $68,500 of interest expense that accrued during the last five months of 2017 on bonds payable. The bonds mature in 2029. The discount on the bonds is amortized by the straight-line method. The following entry was recorded on February 1, 2018, when the semiannual interest was paid: Interest expense 82,200 Discount on bonds payable 2,700 Cash 79,500     Required: 1-a. Prepare any journal entry necessary to correct the error...
Baxter company failed to accrue $30,000 of salary expense at the end of 2017. The salaries...
Baxter company failed to accrue $30,000 of salary expense at the end of 2017. The salaries expense was recorded as paid in 2018. Ignoring taxes, what journal entry will Baxter make in 2018 to correct this error?
Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. With...
Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows: Summarized Income Statement Sales $50,000,000 All Cost (incl. Interest & Taxes)   $40,000,000 Net Income    $10,000,000 Summarized Balance Sheet This Year Last Year Assets: All Current Assets combined $50,000,000 $40,000,000 All Long-Term Assets combined   $50,000,000     $40,000,000 Total Assets: $100,000,000 $80,000,000 Liabilities & Stockholders Equity All Current Liabilities combined $30,000,000 $25,000,000 All Long-Term Liabilities...
Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. With...
Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows: Summarized Income Statement Sales $50,000,000 All Cost (incl. Interest & Taxes) $40,000,000 Net Income $10,000,000 Summarized Balance Sheet This Year Last Year Assets: All Current Assets combined $50,000,000 $40,000,000 All Long-Term Assets combined $50,000,000 $40,000,000 Total Assets: $100,000,000 $80,000,000 Liabilities & Stockholders Equity All Current Liabilities combined $30,000,000 $25,000,000 All Long-Term Liabilities combined...
What are the adjusting entries for the following? 1 Accrue interest expense on the note assuming...
What are the adjusting entries for the following? 1 Accrue interest expense on the note assuming that the date of the loan was January 2 (use 30/360 and round to the nearest dollar). 2 Supplies on hand at January 31 total $200. 3 Assume that all of the equipment was purchased at the beginning of January. Record January depreciation expense using the straight-line method (round to the nearest dollar). 4 The cash advance is earned ratably over the 5-month period....
The MBA802 Company failed to record (accrue) $9,000,000 of cost related to vendor invoices and warranty...
The MBA802 Company failed to record (accrue) $9,000,000 of cost related to vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows: Summarized Income Statement Sales $97,000,000 All Cost (incl. Interest & Taxes)   $83,000,000 Net Income    $14,000,000 Summarized Balance Sheet This Year     Last Year Assets: All Current Assets combined $74,000,000 $68,000,000 All Long-Term Assets combined $61,000,000    $59,000,000 Total Assets: $135,000,000      $127,000,000 Liabilities & Stockholders Equity All Current Liabilities combined...
1. The MBA802 Company failed to record (accrue) $9,000,000 of cost related to vendor invoices and...
1. The MBA802 Company failed to record (accrue) $9,000,000 of cost related to vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows: Summarized Income Statement Sales $97,000,000 All Cost (incl. Interest & Taxes) $83,000,000 Net Income $14,000,000 Summarized Balance Sheet This Year Last Year Assets: All Current Assets combined $74,000,000 $68,000,000 All Long-Term Assets combined $61,000,000 $59,000,000 Total Assets: $135,000,000 $127,000,000 Liabilities & Stockholders Equity All Current Liabilities combined $61,000,000...
The Company failed to record (accrue) $9,000,000 of cost related to vendor invoices and warranty liability...
The Company failed to record (accrue) $9,000,000 of cost related to vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows: Summarized Income Statement Sales                                                                     $97,000,000 All Cost (incl. Interest & Taxes) $83,000,000 Net Income   $14,000,000 Summarized Balance Sheet                          This Year                              Last Year All Current Assets combined                      $74,000,000                      $68,000,000 All Long-Term Assets combined                 $61,000,000                      $59,000,000 Total Assets: $135,000,000                   $127,000,000 Liabilities & Stockholder’s Equity All Current Liabilities combined...
The MBA802 Company failed to record (accrue) $9,000,000 of cost related to vendor invoices and warranty...
The MBA802 Company failed to record (accrue) $9,000,000 of cost related to vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows: Summarized Income Statement Sales $97,000,000 All Cost (incl. Interest & Taxes)   $83,000,000 Net Income    $14,000,000 Summarized Balance Sheet This Year     Last Year Assets: All Current Assets combined $74,000,000 $68,000,000 All Long-Term Assets combined $61,000,000    $59,000,000 Total Assets: $135,000,000      $127,000,000 Liabilities & Stockholders Equity All Current Liabilities combined...
company XYZ in 2015 is given : sales €500000, costs €332000 depreciation expense €120000 Interest expense...
company XYZ in 2015 is given : sales €500000, costs €332000 depreciation expense €120000 Interest expense €60000 dividends €16000 tax rate 35 percent a) given this information prepare XYZ income statement b) calculate XYZ profit margin c) If company XYZ has total asset €250000 and equity multiplier 2.5 what is return on equity, what is return on equity (ROE) based on DU point identity. d) discus the component of Du point identity
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT