The inventory account of Cullumber Company at December 31, 2020, included the following items:

Based on the above information, the inventory account at December 31, 2020, should be reduced by

Suppose that on that same date (January 1, 2020) Demon Deacon Co. enters into another lease contract. The lease arrangement is for 8 years, has a bargain purchase option for $15,000, but no residual value guarantee. The expected useful life of the asset is 10 years. The initial value of the capital lease asset (and liability) is $615,000. Lease payments are end-of-year payments of $93,583. Record the journal entries for this lease arrangement that would be made on December 31, 2020, given the information.

1. On January 1, 2020, Travis Corporation issued $800,000, 6%, 5-year bonds for $735,110. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid semiannually on July 1 and January 1. The company uses the effective-interest method of amortization. Instructions: Prepare the journal entries that Travis Corporation would make on January 1, June 30, December 31, 2020, January 1, 2021 and at maturity, related to the bond issue

On March 1, 2020, Spring Break Company sold 4,000 individual bonds. The bond terms were as follows: 25 years, $1,000 face value, and 2.1% coupon rate. The bonds were issued at an annual effective interest rate of 1.9%. Interest is payable semi-annually and is due each year on September 1 and March 1. As of March 1, 2020, bond issue costs of $103,500 were incurred in preparing and selling the bond issue. Calculate the selling price of the bond

You bought 500 shares of GNX Ltd for $98.00 per share in May 2020. You are now worried about the market turning bearish, so you decide to buy 5 put options on the company's shares with each contract written on 100 shares at an exercise (or strike) price of $100.00 expiring in August 2020 for a premium of $3.00 per share. If at expiration the company's share price is $80.00 calculate the total profit or loss on your hedged position. Show all calculations.

Change in Estimates. On January 1, 2018, Hogan Manufacturing Co. purchased equipment for $400,000. The company expects the equipment to be in use for 6 years, and to have a salvage value of 10% of the original cost at the end of its useful life. At the beginning of 2020, Hogan revised its estimate of the equipment’s useful life from 6 years to a total of 10 years, and also at that time reduced the estimated salvage value to zero. The company uses the straight-line depreciation method. Compute depreciation expense for 2020

Brief Exercise 9-03

Oriole Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $215,464,100 at both cost and realizable value. At December 31, 2020, the inventory was $291,500,300 at cost and $268,031,000 at realizable value.

Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method.

Astrom Ltd. purchased a piece of equipment on May 12, 2020, for $51,200. At the time, management determined that the equipment would have a 4-year useful life and a residual value of $4,400. Astrom uses the straight-line depreciation method for its equipment, and the company has a December 31 year end. Also assume that Astrom sold the equipment on September 25, 2022, for $20,725. Prepare all necessary journal entries for 2020, 2021, and 2022 related to each of the following scenarios:

on january 1, 2020, Wampum Jewelry company issued deep discount bonds having a total maturity value of 500,000. Wampum received 354,832 from investors on the date of issuance. The bonds mature 5 years from the date of issuance.

a- prepare the journal entry for the issuance of bonds on January 1, 2020

b-calculate the implicit rate of interest on the bonds

c-prepare an amortization schedule for the life of the bonds

d- Record journal entry for interest expense for the year ended dec 31,2023