On January 1, 2018, Loop Raceway issued 530 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $516,324. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

1. 1. Prepare a bond amortization schedule.

2. 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 99.

Prepare a bank reconciliation dated December 31, 2020, for Nittany Inc. based on the following information.

∙           Balance per bank statement is $1,000.

∙           Balance per books is $900.

∙           The December bank statement indicated a service charge of $30.

∙           Cheque #1169 for $400 made out to a supplier was mailed, but not yet received by the bank.

. Cheque #1183 for $270 to a supplier was incorrectly posted by Nittany as $720 in the books.

∙           The bank had not received a deposit in transit of $900 when the bank statement was generated.

∙           A bank debit memo indicated an NSF cheque written by Bill Broke to Nittany Inc. on December 11, 2020, for $150.

∙           A bank credit memo indicated a bank collection of $300 and interest revenue of $30 on December 15, 2020. Nittany has yet to record this receipt

Current Attempt in Progress

Presented below is the adjusted trial balance of Splish Corporation at December 31, 2020.

Additional information:

Prepare a classified balance sheet as of December 31, 2020. (List Current Assets in order of liquidity.)

On July 1, 2020, Dynamic Company purchased for cash 40% of the outstanding capital stock of Cart Company. Both Dynamic and Cart have a December 31 year-end. Cart, whose common stock is actively traded in the over-the-counter market, reported its total net income for the year to Dynamic and also paid cash dividends on November 15, 2020, to Dynamic and its other stockholders.

Required:

a. How should Dynamic report the foregoing facts in its December 31, 2020, balance sheet and its income statement for the year then ended? Discuss the rationale for your answer.

b. If Dynamic should elect to report its investment at fair value, how would its balance sheet and income statement differ from your answer to part (a)?

Presented below is information related to Whispering Corp. for the year 2020.

Prepare a multiple-step income statement for 2020. Assume that 60,800 shares of common stock are outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. 1.49.) .

Prepare a separate retained earnings statement for 2020. (List items that increase adjusted retained earnings first.)

Bramble Company issued $432,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Bramble Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. 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.)

(a) The issuance of the bonds. (b) The payment of interest and related amortization on July 1, 2020. (c) The accrual of interest and the related amortization on December 31, 2020.

An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2020.

Costs incurred: raw materials purchases $ 57,250, direct labor $ 51,410, manufacturing overhead $22,900. The specific overhead costs were: indirect labor $ 6,160, factory insurance $ 4,610, machinery depreciation $ 4,920, machinery repairs $ 2,230, factory utilities $ 3,210, and miscellaneous factory costs $ 1,770. Assume that all raw materials used were direct materials.

(a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2020.

(b) Show the presentation of the ending inventories on the June 30, 2020, balance sheet.

On January 1, 2020, Bonita Company sold 12% bonds having a maturity value of $650,000 for $699,280, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Bonita Company allocates interest and unamortized discount or premium on the effective-interest basis.

Prepare a schedule of interest expense and bond amortization for 2020–2022. (Round answer to 0 decimal places, e.g. 38,548.)