Questions
Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following selected transactions...

Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4

The following selected transactions are from Ohlm Company. (Use 360 days a year.)

2016

Dec. 16 Accepted a $10,100, 60-day, 8% note dated this day in granting Danny Todd a time extension on his past-due account receivable.
31 Made an adjusting entry to record the accrued interest on the Todd note.


2017

Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16.
Mar. 2 Accepted a(n) $7,600, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co.
17 Accepted a(n) $3,400, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable.
Apr. 16 Privet dishonored her note when presented for payment.
May 31 Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable.
July 16 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 8%.
Aug. 7 Accepted a(n) $7,300, 90-day, 11% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.
Sep. 3 Accepted a(n) $2,360, 60-day, 10% note dated this day in granting Noah Carson a time extension on his past-due account receivable.
Nov. 2 Received payment of principal plus interest from Carson for the September 3 note.
Nov. 5 Received payment of principal plus interest from Mulan for the August 7 note.
Dec. 1 Wrote off the Privet account against the Allowance for Doubtful Accounts.


Required:
1-a. First, complete the table below to calculate the interest amount at December 31, 2016.
1-b. Use the calculated value to prepare your journal entries for 2016 transactions.
1-c. First, complete the table below to calculate the interest amounts.
1-d. Use those calculated values to prepare your journal entries for 2017 transactions.

Required 1A

First, complete the table below to calculate the interest amount at December 31, 2016.
Total Through Maturity Interest Recognized December 31
Principal
Rate (%)
Time
Total interest

Required 1B

Use the calculated value to prepare your journal entries for 2016 transactions.

Journal entry worksheet

Accepted a $10,100, 60-day, 8% note dated this day in granting Danny Todd a time extension on his past-due account receivable.

Note: Enter debits before credits.

Made an adjusting entry to record the accrued interest on the Todd note.

Required 1C

First, complete the table below to calculate the interest amounts.
Total Through Maturity
Midnight Co. Note - March 2, 2017 A. Privet Note - March 17, 2017 Mulan Note - August 7, 2017 Midnight Co. Note - May 31, 2017 N. Carson Note - September 3, 2017
Principal
Rate (%)
Time

Required 1D

Use those calculated values to prepare your journal entries for 2017 transactions.

Journal entry worksheet

.....

1. Received Todd’s payment of principal and interest on the note dated December 16.

2. Accepted a $7,600, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co.

3. Accepted a $3,400, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable.

4. Privet dishonored her note when presented for payment.

5. Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.’s accounts receivable.

6. Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 8%.

7. Accepted a $7,300, 90-day, 11% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.

8. Accepted a $2,360, 60-day, 10% note dated this day in granting Noah Carson a time extension on his past-due account receivable.

9. Received payment of principal plus interest from Carson for the September 3 note.

10. Received payment of principal plus interest from Mulan for the August 7 note.

11. Wrote off the Privet account against Allowance for Doubtful Accounts.

In: Accounting

chapter 10-01 instructions The following items were selected from among the transactions completed by Sherwood Co....

chapter 10-01

instructions

The following items were selected from among the transactions completed by Sherwood Co. during the current year:

Mar. 1 Purchased merchandise on account from Kirkwood Co., $300,000, terms n/30.
31 Issued a 30-day, 4% note for $300,000 to Kirkwood Co., on account.
Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31.
Jun. 1 Borrowed $156,000 from Triple Creek Bank, issuing a 45-day, 4% note.
Jul. 1 Purchased tools by issuing a $228,000, 60-day note to Poulin Co., which discounted the note at the rate of 9%.
16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $156,000. (Journalize both the debit and credit to the notes payable account.)
Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16.
30 Paid Poulin Co. the amount due on the note of July 1.
Dec. 1 Purchased equipment from Greenwood Co. for $580,000, paying $102,000 cash and issuing a series of ten 6% notes for $47,800 each, coming due at 30-day intervals.
22 Settled a product liability lawsuit with a customer for $300,500, payable in January. Accrued the loss in a litigation claims payable account.
31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.
Required:
1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar.
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
a. Product warranty cost, $28,000.
b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

CHART OF ACCOUNTS
Sherwood Co.
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
127 Tools
128 Accumulated Depreciation-Tools
LIABILITIES
210 Accounts Payable-Kirkwood Co.
211 Accounts Payable-Greenwood Co.
212 Accounts Payable-Poulin Co.
213 Interest Payable
214 Notes Payable
215 Salaries Payable
216 Social Security Tax Payable
217 Medicare Tax Payable
218 Employees Federal Income Tax Payable
219 Employees State Income Tax Payable
220 Group Insurance Payable
221 Bond Deductions Payable
224 Federal Unemployment Tax Payable
225 State Unemployment Tax Payable
226 Vacation Pay Payable
227 Unfunded Pension Liability
228 Product Warranty Payable
229 Litigation Claims Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Salaries Expense
524 Depreciation Expense-Building
525 Delivery Expense
526 Repairs Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Depreciation Expense-Tools
534 Insurance Expense
535 Supplies Expense
536 Payroll Tax Expense
537 Vacation Pay Expense
538 Pension Expense
539 Cash Short and Over
540 Product Warranty Expense
541 Miscellaneous Expense
710 Interest Expense
720 Litigation Loss

1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Scroll down to access page 12 of the journal. Round your answers to the nearest dollar.

PAGE 11

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
A. Product warranty cost, $28,000.
B. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

PAGE 12

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

Adjusting Entries

2

3

4

5

In: Accounting

P3-2    Miloslav began a magazine delivery service, which he named Miloslav’s Magazines, on January 1, 2001....

P3-2    Miloslav began a magazine delivery service, which he named Miloslav’s Magazines, on January 1, 2001. The following transactions occurred during 2001:

a. Sold stock for $3,000 cash on January 1.

b.         Borrowed $20,000 cash on April 1. The interest rate on the loan is 12% annually, and the interest is due each December 31, until the note is repaid.

c.         Bought a bicycle for $1,000 cash on January 1. The bicycle has an estimated life of five years, and no salvage value.

d. Bought 10,000 magazines for $2.00 cash each on April 5.

e.         Sold magazines at various times for a total of $22,500. All sales were on account.

f. Collected $20,500 from customers.

g. Paid himself a salary of $3,000 cash.

h. Paid the stockholders a dividend of $50 on the $3,000 in stock.

i. Paid the interest on the loan in b.

j.          On December 31, Miloslav determined by a physical count that there were 1,000 magazines left in the storage bin at the warehouse.

Required

Prepare journal entries for the above transactions. Post the journal entries to appropriate T-accounts. Prepare any necessary adjusting and closing entries needed at December 31, 2001. Prepare a December 31, 2001 balance sheet and an income statement for the year ended December 31, 2001.

In: Accounting

Nearly a decade-and-a-half ago The Economist magazine noted (“Pop, Crackle, Snap,” April 3, 2004), “Even desperate...

Nearly a decade-and-a-half ago The Economist magazine noted (“Pop, Crackle, Snap,” April 3, 2004), “Even desperate job-seekers think twice about accepting hazardous work such as coal-mining, cow slaughtering or cleaning up asbestos sites.” Oh, really?!? Suppose different types of people have different tastes for wages and safety. Specifically, Type 1 people are very safety-oriented while Type 2 will do “anything” for money. Suppose employers are able to provide different combinations of wages and safety. Specifically, for Type A employers safety is relatively easy/inexpensive to provide. For Type B employers safety is relatively difficult/expensive to provide.

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B. Draw and identify the different firms’ isoprofit curves for wages and safety. Explain which curve(s) represents which firm.

C. Given your answers in Parts A and B above, use suitable economic analysis to demonstrate whether or not people can be persuaded to do dangerous work.

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Q2. Critically discuss two issues that are addressed through collective bargaining in South-West Trains and their...

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In: Economics

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The value of Mabotsana’s Limited’s closing inventory for October 2019 using the absorption costing method is:...

The value of Mabotsana’s Limited’s closing inventory for October 2019 using the absorption costing method is: (2)

a. R240 000

b. R360 000

c. R600 000

d. R420 000

The following information was taken from the production records of Mabotsana Limited for October 2019:

Opening inventory 1 000 units

Closing inventory 6 000 units

Direct labour cost per unit R40

Direct material cost per unit R20

Variable manufacturing overhead costs per unit R10

Fixed manufacturing overhead costs per unit R30

Variable selling and administrative costs per unit R6

Fixed selling and administrative costs per unit R14

In: Finance