Little Company borrowed $56,000 from Sockets on January 1, 2018, and signed a three-year, 7% installment note to be paid in three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 7% is 2.62432. Required: 1. Prepare the journal entry on January 1, 2018, for Sockets’ lending the funds. 2. Calculate the amount of one installment payment. 3. Prepare an amortization schedule for the three-year term of the installment note. 4. Prepare the journal entry for Sockets’ first installment payment received on December 31, 2018. 5. Prepare the journal entry for Sockets’ third installment payment received on December 31, 2020.
In: Accounting
The following items are taken from the financial statements of Super Company for 2019:
Cash 26,000
Common Stock 25,000
Cost of Goods Sold 17,000
Depreciation Expense 4,800
Dividends 5,300
Equipment 44,000
Interest Expense 2,500
Rent Expense 2,000
Patents 7,500
Note Payable (Due 2020) 3,000
Retained Earnings, January 1 16,000
Salaries Expense 5,200
Sales Revenue 35,500
Accounts Payable 18,500
Rent Payable 2,000
Accounts Receivable 4,000
Accumulated Depreciation 4,800
Bonds Payable 18,000
Supplies 4,500
Instructions: Prepare the following statements
a) Multistep income statement
b) Retained earnings
c) Classified Balance Sheet
In: Accounting
| Merriweather Company, a publicly-held firm, is completing its 10-K report for fiscal 2020. Merriweather considers that it is involved in five separate lines of business. | |||||||||||
| The following information is available, from which Merriweather must determine which segments are reportable and what that disclosure should look like. use 10% test (what that disclosure should look like?) | |||||||||||
| Line of business | Total revenue | Operating Profit or (loss) | Identifiable assets | ||||||||
| Children's wear | 120,000,000 | 30,000,000 | 167,000,000 | ||||||||
| Women's wear | 20,000,000 | 3,000,000 | 52,000,000 | ||||||||
| Men's wear | 46,000,000 | 2,000,000 | 145,000,000 | ||||||||
| Outerwear | 18,000,000 | (1,050,000) | 45,000,000 | ||||||||
| Foot wear | 22,000,000 | (9,600,000) | 140,000,000 | ||||||||
| Total | 226,000,000 | 24,350,000 | 549,000,000 | ||||||||
In: Accounting
Q. From the following information in Trial balance prepare Trading, Profit and Loss Account and Balance Sheet of the company as on 31st December 2020.
|
Particulars |
Dr. Amount (Dhs) |
Cr. Amount (Dhs) |
|
Capital Purchases Purchase Returns Sales Sales Returns Opening Stock Cash in Hand Salaries Rent Commission received Drawings Wages General Expenses Creditors Debtors Machinery Furniture Land and Building Bank Loan |
200,000 50,000 90,000 65,000 35,000 30,000 20,000 50,000 15,000 100,000 65,000 50,000 170,000 |
300,000 10,000 310,000 20,000 145,000 155,000 |
|
940,000 |
940,000 |
Closing Stock is 320,000 dhs
Answers should be in Word version or Excel
In: Accounting
Problem 7-06 Allowance method
The balance sheet of Starsky Company at December 31, 2019, includes the following.
|
Accounts receivable |
$ 182,100 |
|
Less: Allowance for doubtful accounts |
17,300 |
|
$ 164,800 |
Transactions in 2020 include the following:
In: Accounting
) Jaeco Corporation asks you to review its December 31, 2020 inventory values and prepare the adjustments that are needed to the books. The following information is given to you: • 1. Jaeco uses the periodic method of recording inventory. A physical count reveals $234,890 of inventory on hand at December 31, 2020, although the books have not yet been adjusted to reflect the ending inventory. • 2. Not included in the physical count of inventory is $10,420 of merchandise purchased on December 15 from Shamsi. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31. • 3. Included in inventory is merchandise sold to Sage on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $12,800 on December 31. The merchandise cost $7,350, and Sage received it on January 3. • 4. Included in the count of inventory was merchandise received from Dutton on December 31 with an invoice price of $15,630. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded. • 5. Not included in inventory is $8,540 of merchandise purchased from Growler Industries. This merchandise was received on December 31, after the inventory had been counted. The invoice was received and recorded on December 30. • 6. Included in inventory was $10,438 of inventory held by Jaeco on consignment from Jackel Industries. • 7. Included in inventory was merchandise sold to Kemp, f.o.b. shipping point. This merchandise was shipped after it was counted, on December 31. The invoice was prepared and recorded as a sale for $18,900 on December 31. The cost of this merchandise was $11,520, and Kemp received the merchandise on January 5. • 8. Excluded from inventory was a carton labelled “Please accept for credit.” This carton contained merchandise costing $1,500, which had been sold to a customer for $2,600. No entry had been made to the books to record the return, but none of the returned merchandise seemed damaged. • 9. Jaeco sold $12,500 of inventory to Simply Corp. for $21,000 on account on December 15, 2020. These items were shipped f.o.b. shipping point. The terms of sale indicate that Simply Corp. will be permitted to return an unlimited amount until May 15, 2021. Jaeco has never provided unlimited returns in the past and is not able to estimate the amount of any potential returns that Simply may make. Instructions a. Determine the proper inventory balance for Jaeco Corporation at December 31, 2020. b. Prepare any adjusting/correcting entries that are needed at December 31, 2020. Assume the books have not been closed and that Jaeco follows IFRS. c. Assume instead that Jaeco follows ASPE. Prepare any adjusting/correcting entries at December 31, 2020, that are needed.
In: Accounting
Rayya Co. purchases and installs a machine on January 1, 2016, at a total cost of $142,800. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2020, during its fifth year of service.
Prepare entries to record the partial year’s depreciation on July 1, 2020.
Record the depreciation expense as of July 1, 2020.
Prepare entries to record the disposal under the following separate assumptions:
1. The machine is sold for $71,400 cash.|
Record the sale of machinery for $71,400 cash.
2. An insurance settlement of $59,976 is received due to the machine’s total destruction in a fire.
Record the insurance settlement received of $59,976 resulting from the total destruction of the machine in a fire.
In: Accounting
1.The population of India in the year 2000 was 1 billion and it increased exponentially at a rate of 1.6% per year. If the growth rate is maintained, what will be the population in the year 2020? If the growth rate is decreased to 1.2% per year from 2020 onwards and is maintained at that level, what will be the population in the year 2050? Assuming the average human exhales 2.3 pounds of carbon dioxide on an average day, what is the total amount of Carbon released in the atmosphere annually by human exhalation (in billion tonnes) around the year 2020?
2.Calculate the suspended particulate concentration (in μg/m3) in a sample collected through a hi-vol. sampler: Weight of clean filter = 5.00 g, Weight of the filter after exposure for 24 hours = 5.38 g, Average air flow = 2000 m3 in 24 hours.
In: Mechanical Engineering
On January 1, 2018, Surreal Manufacturing issued 670 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $651,410. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year.
Required:
1. Prepare a bond amortization schedule.
2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 102.
In: Accounting
On January 1, 2018, Surreal Manufacturing issued 530 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $515,294. Surreal uses the simplified effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year.
Required:
1. Prepare a bond amortization schedule.
2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 103.
In: Accounting