Whispering Company had bonds outstanding with a maturity value of $279,000. On April 30, 2020, when these bonds had an unamortized discount of $10,000, they were called in at 106. To pay for these bonds, Whispering had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 102 (face value $279,000).

Ignoring interest, compute the gain or loss.

Ignoring interest, record this refunding transaction. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Sheridan Company is issuing $9.8 million 12% bonds in a private placement on July 1, 2020. Each $1200 bond pays interest semi-annually on December 31 and June 30 of each year. The bonds mature in ten years. At the time of issuance, the market interest rate for similar types of bonds was 8%. What is the expected selling price of the bonds?

A) $14700000 B) $12463736 C) $12430317 D) $12530374

The ledger of Hammond Company, on March 31, 2020, includes these selected accounts before adjusting entries are prepared.

  Debit   Credit

Prepaid Insurance   RM 3,600

Supplies   2,800

Equipment   25,000

Accumulated Depreciation—Equipment   RM5,000

Unearned Service Revenue   9,200

An analysis of the accounts shows the following.

1.Insurance expires at the rate of RM100 per month.

2.Supplies on hand total RM800.

3.The equipment depreciates RM200 a month.

4.During March, services were performed for one-half of the unearned service revenue.

Prepare the adjusting entries for the month of March.

The company has the following account balances on June 1, 2020. (all accounts have their ‘normal’ balances)

Drawings: 1000

Cash: 20000

Service revenue: 50000

Capital: 15000

Depreciation Expense: 700

Equipment: 30000

Accounts Payable: 5000

Insurance Expense: 500

Unearned Service Revenue: 4000

Prepaid Service Revenue: 500

Accounts Receivable: 4000

Rent Expense: 5000

Salaries Expense: 16000

Accumulated Depreciation - Equipment: 3000

During June 2018, the following events took place. Where appropriate, record a journal entry for each transaction. If no journal entry is required, write ‘no entry’.

1. On June 2, the company prepaid rent for July to September for $6,000.

2. On June 8, someone invested $3,000 cash and a computer system valued at $2,000 into the company.

3. On June 10, the company collected $4,000 it was owed on account.

4. On June 15, The company provided a quotation for membership fees to a corporation looking to provide fitness benefits to its employees. The quotation was for $10,000. The corporation will decide next month if it is a good fit.

5. On June 22 the company provided product and collected $5,000.

6. On June 24 the company received a $1,000 bill for advertising expense that it will pay in the near future.

7. On June 27 the company paid $2,000 cash on account.

8. On June 29, the owner withdrew $600 for personal use.

1. On June 30, the company purchased $1,000 of supplies on account.

10. On June 30, the company paid employee salaries of $3,000.

Explanation is needed if the item needs to to be calculated.

The company has the following account balances on June 1, 2020. (all accounts have their ‘normal’ balances)

Drawings: 1000

Cash: 20000

Service revenue: 50000

Capital: 15000

Depreciation Expense: 700

Equipment: 30000

Accounts Payable: 5000

Insurance Expense: 500

Unearned Service Revenue: 4000

Prepaid Service Revenue: 500

Accounts Receivable: 4000

Rent Expense: 5000

Salaries Expense: 16000

Accumulated Depreciation - Equipment: 3000

During June 2018, the following events took place. Where appropriate, record a journal entry for each transaction. If no journal entry is required, write ‘no entry’.

1. On June 2, the company prepaid rent for July to September for $6,000.
2. On June 8, someone invested $3,000 cash and a computer system valued at $2,000 into the company.
3. On June 10, the company collected $4,000 it was owed on account.
4. On June 15, The company provided a quotation for membership fees to a corporation looking to provide fitness benefits to its employees. The quotation was for $10,000. The corporation will decide next month if it is a good fit.
5. On June 22 the company provided product and collected $5,000.
6. On June 24 the company received a $1,000 bill for advertising expense that it will pay in the near future.
7. On June 27 the company paid $2,000 cash on account.
8. On June 29, the owner withdrew $600 for personal use.
9. On June 30, the company purchased $1,000 of supplies on account.
10. On June 30, the company paid employee salaries of $3,000.

Question: Open T-accounts using the beginning balances provided and post entries into T-accounts. Calculate the balance of each one.

The company has the following account balances on June 1, 2020. (all accounts have their ‘normal’ balances)

Drawings: 1000

Cash: 20000

Service revenue: 50000

Capital: 15000

Depreciation Expense: 700

Equipment: 30000

Accounts Payable: 5000

Insurance Expense: 500

Unearned Service Revenue: 4000

Prepaid Service Revenue: 500

Accounts Receivable: 4000

Rent Expense: 5000

Salaries Expense: 16000

Accumulated Depreciation - Equipment: 3000

During June 2018, the following events took place. Where appropriate, record a journal entry for each transaction. If no journal entry is required, write ‘no entry’.

1. On June 2, the company prepaid rent for July to September for $6,000.
2. On June 8, someone invested $3,000 cash and a computer system valued at $2,000 into the company.
3. On June 10, the company collected $4,000 it was owed on account.
4. On June 15, The company provided a quotation for membership fees to a corporation looking to provide fitness benefits to its employees. The quotation was for $10,000. The corporation will decide next month if it is a good fit.
5. On June 22 the company provided product and collected $5,000.
6. On June 24 the company received a $1,000 bill for advertising expense that it will pay in the near future.
7. On June 27 the company paid $2,000 cash on account.
8. On June 29, the owner withdrew $600 for personal use.
9. On June 30, the company purchased $1,000 of supplies on account.
10. On June 30, the company paid employee salaries of $3,000.

Prepare the unadjusted trial balance for the company at June 31, 2018.

On April 1, 2020, Dalinar Company began construction on a new distribution warehouse. Construction was completed on December 31, 2020, at which time the building was placed in service. Dalinar made an initial payment toward construction on April 1, 2020 of $240,000 and made additional payments $30,000 every two months thereafter, beginning on June 1 and continuing through December 1. A final payment of $100,000 was made on December 31 at the completion of construction. Dalinar borrowed $150,000 at 4% on April 1 to partially finance the previously mentioned payment on that date. All other construction costs were paid using cash on hand.

The only other liability currently owed by Dalinar is a long-term, $120,000 note payable with principal due on December 31, 2024. The long-term note was issued at face-value, has a stated rate of 6%, and has interest payable annually every 12 months at October 31. At the time the note was issued, the market rate for similar notes was 6%.

What are the weighted average accumulated expenditures for the year?

What is Dalinar's capitalized interest on specific debt?

What is Dalinar's capitalized interest on non-specific debt?

Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2020. An analysis reveals the following:

1. During December, Superior sold 6,700 skateboards that carry a 60-day warranty. The skateboard sales totalled $392,000. The company expects 8% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $40.
2. A disgruntled employee is suing the company. Legal advisers believe that it is probable that Superior will have to pay damages, the amount of which cannot be reasonably estimated.
3. Superior needs to record previously unrecorded cash sales of $2,120,000 (cost of sales 65%) plus applicable HST.
4. Superior recognizes that $97,000 of $162,000 received in advance for skateboards has now been earned.

Presented below is information related to equipment owned by Blossom Company at December 31, 2020.

Blossom intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,600. As of December 31, 2020, the equipment has a remaining useful life of 4 years.

Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Prepare the journal entry (if any) to record depreciation expense for 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

The asset was not sold by December 31, 2021. The fair value of the equipment on that date is $6,519,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $24,600. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)