Liability Transactions
The following items were selected from among the transactions completed by Sherwood Co. during the current year:
| Feb. 15. | Purchased merchandise on account from Kirkwood Co., $144,000, terms n/30. |
| Mar. 17. | Issued a 60-day, 7% note for $144,000 to Kirkwood Co., on account. |
| May 16. | Paid Kirkwood Co. the amount owed on the note of March 17. |
| June 15. | Borrowed $177,600 from Triple Creek Bank, issuing a 60-day, 8% note. |
| July 21. | Purchased tools by issuing a $102,000, 90-day note to Poulin Co., which discounted the note at the rate of 7%. |
| Aug. 14. | Paid Triple Creek Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $177,600. (Journalize both the debit and credit to the notes payable account.) |
| Oct. 13. | Paid Triple Creek Bank the amount due on the note of August 14. |
| Oct. 19. | Paid Poulin Co. the amount due on the note of July 21. |
| Dec. 1. | Purchased office equipment from Greenwood Co. for $96,000, paying $16,000 cash and issuing a series of ten 6% notes for $8,000 each, coming due at 30-day intervals. |
| Dec. 12. | Settled a product liability lawsuit with a customer for $75,000, payable in January. Accrued the loss in a litigation claims payable account. |
| Dec. 31. | Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. |
Required:
1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. If required, round to one decimal place. Don't round the intermediate calculations.
For a compound transaction, accounts should be listed largest to smallest.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Feb. 15 | Inventory | ||
| Accounts Payable-Kirkwood Co. | |||
| Mar. 17 | Accounts Payable-Kirkwood Co. | ||
| Notes Payable | |||
| May 16 | Notes Payable | ||
| Interest Expense | |||
| Cash | |||
| June 15 | Cash | ||
| Notes Payable | |||
| July 21 | Tools | ||
| Interest Expense | |||
| Notes Payable | |||
| Aug. 14 | Notes Payable | ||
| Interest Expense | |||
| Notes Payable | |||
| Cash | |||
| Oct. 13 | Notes Payable | ||
| Interest Expense | |||
| Cash | |||
| Oct. 19 | Notes Payable | ||
| Cash | |||
| Dec. 1 | Office Equipment | ||
| Notes Payable | |||
| Cash | |||
| Dec. 12 | Litigation Loss | ||
| Litigation Claims Payable | |||
| Dec. 31 | Notes Payable | ||
| Interest Expense | |||
| Cash | |||
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $16,600; (b) interest on the nine remaining notes owed to Greenwood Co.
| Item | Account | Debit | Credit |
|---|---|---|---|
| a. | Product Warranty Expense | ||
| Product Warranty Payable | |||
| b. | Interest Expense | ||
| Interest Payable | |||
In: Accounting
Liability Transactions
The following items were selected from among the transactions completed by Emerald Bay Stores Co. during the current year:
| Feb. 15. | Purchased merchandise on account from Hood Co., $144,000, terms n/30. |
| Mar. 17. | Issued a 60-day, 6% note for $144,000 to Hood Co., on account. |
| May 16. | Paid Hood Co. the amount owed on the note of March 17. |
| June 15. | Borrowed $154,800 from Acme Bank, issuing a 60-day, 7% note. |
| July 21. | Purchased tools by issuing a $114,000, 90-day note to Columbia Supply Co., which discounted the note at the rate of 6%. |
| Aug. 14. | Paid Acme Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $154,800. (Journalize both the debit and credit to the notes payable account.) |
| Oct. 13. | Paid Acme Bank the amount due on the note of August 14. |
| Oct. 19. | Paid Columbia Supply Co. the amount due on the note of July 21. |
| Dec. 1. | Purchased office equipment from Mountain Equipment Co. for $108,000, paying $18,000 and issuing a series of ten 6% notes for $9,000 each, coming due at 30-day intervals. |
| Dec. 12. | Settled a product liability lawsuit with a customer for $66,000, payable in January. Emerald Bay accrued the loss in a litigation claims payable account. |
| Dec. 31. | Paid the amount due Mountain Equipment Co. on the first note in the series issued on December 1. |
Required:
1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. If required, round to one decimal place. Don't round the intermediate calculations.
For a compound transaction, accounts should be listed largest to smallest.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Feb. 15 | Inventory | ||
| Accounts Payable - Hood Co. | |||
| Mar. 17 | Accounts Payable - Hood Co. | ||
| Notes Payable | |||
| May 16 | Notes Payable | ||
| Interest Expense | |||
| Cash | |||
| June 15 | Cash | ||
| Notes Payable | |||
| July 21 | Tools | ||
| Interest Expense | |||
| Notes Payable | |||
| Aug. 14 | Notes Payable | ||
| Interest Expense | |||
| Notes Payable | |||
| Cash | |||
| Oct. 13 | Notes Payable | ||
| Interest Expense | |||
| Cash | |||
| Oct. 19 | Notes Payable | ||
| Cash | |||
| Dec. 1 | Office Equipment | ||
| Notes Payable | |||
| Cash | |||
| Dec. 12 | Litigation Loss | ||
| Litigation Claims Payable | |||
| Dec. 31 | Notes Payable | ||
| Interest Expense | |||
| Cash | |||
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $15,400; (b) interest on the nine remaining notes owed to Mountain Equipment Co.
| Item | Account | Debit | Credit |
|---|---|---|---|
| a. | |||
| b. | |||
In: Accounting
Soto Industries Inc. is an athletic footware company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Soto Industries Inc., which has a fiscal year ending on December 31:
Record these transactions on page 10
|
Year 1 |
||
| Apr. | 1. | Purchased $83,400 of Welch Co. 7%, 15-year bonds at their face amount plus accrued interest of $973. The bonds pay interest semiannually on March 1 and September 1. |
| June | 1. | Purchased $62,400 of Bailey 6%, 10-year bonds at their face amount plus accrued interest of $156. The bonds pay interest semiannually on May 1 and November 1. |
| Sept. | 1 | Received semiannual interest on the Welch Co. bonds. |
| 30 | Sold $34,800 of Welch Co. bonds at 99 plus accrued interest of $203. | |
| Nov. | 1 | Received semiannual interest on the Bailey bonds. |
| Dec. | 31 | Accrued $1,134 interest on the Welch Co. bonds. |
| 31 | Accrued $624 interest on the Bailey bonds. |
Record these transactions on page 11
|
Year 2 |
||
| Mar. | 1 | Received semiannual interest on the Welch Co. bonds. |
| May | 1 | Received semiannual interest on the Bailey bonds. |
Required:
| 1. | Journalize the entries to record these transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. |
| 2. | If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure? |
Chart of Accounts
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Journal
1a. Journalize the entries to record Year 1 transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
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1b. Journalize the entries to record Year 2 transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries.
PAGE 11
JOURNAL
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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In: Accounting
A straight, vertical wire carries a current of 1.2 A downward in a region between the poles of a large superconducting electromagnet, where the magnetic field has magnitude 0.588 T and is horizontal . What are the magnitude and direction of the magnetic force on a 1.00cm section of the wire that is in this uniform magnetic field, if the magnetic field direction is:
(A) East
(B) South
(C) 30 degrees S of W
In: Physics
I would like to create a rectangular vegetable patch. The fencing for the east and west sides costs $4 per foot, and the fencing for the north and south sides costs only $2 per foot. I have a budget of $96 for the project. What are the dimensions of the vegetable patch with the largest area I can enclose? HINT [See Example 2.]
In: Math
a. identify two factors that may be contributing to exchange rate volatility in your country during south Africa in the last 12 months.
b. if you were the economic for your business organisation, what advice would you give so as to mitigate the risks associated with exchange rate volatility over the next 12 months. substantiate your answer.
In: Economics
Provide in each case a brief explanation articulating why the statement may be true, false or even uncertain.
Quantitative Easing is likely to be riskier as an antidote for the current crisis for emerging economies such as the Philippines, Indonesia, South Africa, Chile, Brazil, and Turkey than for developed economies such as the U.S., UK, Eurozone, Canada, Australia or New Zealand. (Word limit 300)
In: Finance
In: Economics
In the naval operations during World War II, which was most crucial to Allied victory? Why?
a) submarine warfare against Japan
b) U.S. and British convoy and patrol action in the North Atlantic
c) fleet actions such as the Battles of Midway and the Coral Sea
d) U.S. and British surface action against German capital ships in the North and South Atlantic.
In: Psychology
Discuss the concept of globalization in the following issues with the current situation of global economy during the pandemic crisis (COVID-19)
- World Economic Conditions (Global North & Global South)
- Country's International Relation (Home & Host Country)
- International Trade Policy (Home & Host Country)
Home Country - Philippines
Host Country - Anything will do such as Asean countries and
etc.
In: Economics