ALL INFORMATION RELEVANT TO ANSWERING THE PROBLEMS IS FOUND ON THE LAST PAGE OF THE SAMPLE EXAM. PROBLEM 1 (20 POINTS) 1. Compute the issue price of the bonds on January 1, 2010. (3 points) 2. Complete the amortization schedule below for the dates indicated. (3 points) DATE CASH INTEREST EXPENSE AMORTIZATION BOOK VALUE 1/1/10 12/31/10 3. Prepare all necessary journal entries, from issuance through the January 1, 2011 bond retirement
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Week 3 Homework E14-3 (Entries for Bond Transactions) Presented below are two independent situations. 1 A 1/1/12 Cash 300,000 Bonds payable 300,000 B 7/1/12 Interest Expense 6,750 300,000*.09*3/12 Cash 6,750 C 12/31/12 Interest Expense 6,750 Interest Payable 6,750 2 A Cash 210,000 Bond payable 200,000 Interest Expense 10,000 200,000*.012*5/12 B Interest Expense 12,000 200,000*.12*6/12 Cash 12,000 C Interest Expense 12,000 Interest payable 12,000 E14-7
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Week 3 Homework 7/7 Differentiate between the following: active income, passive income, and portfolio income? Portfolio income is derived from investments and includes capital gains, interest, dividends, and royalties. Various types of portfolio income are taxed differently. Passive Income, this type of income comes from activities in which you do not actively participate. Such activities include income from real estate and certain business arrangements, such as limited partnerships. Active
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1. (TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (10 points) and (2) provide an example of the closing of an expense account, Salary Expense in the form of a journal entry. (10 points) (Points : 20) 1. We have to close temporary accounts at the end of a period because when the temporary accounts are closed, it brings their balances back down to zero. 2. I would Debit Salary Expense and Credit to PayrollExpenses 12/31
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Balance Sheet December, 31 20XX Assets Current Assets Cash $42,485 Securities Available for Sale at fair market value $28,250 Accounts Receivable $165,824 Allowance for Doubtful Accounts $1,850 $163,974 Notes Receivable (due next year) $23,000 Inventories $499,493 Prepaid Expenses $16,252 Total Current Assets $773,454 Investments Investments in Warren Co $87,500 Fixed Assets Land at Cost $125,000 Building at Cost $975,800
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Company Name Balance Sheet As of December 31, 2013 Assets Current assets Cash Account Receivable Allowance for doubtful accounts Net accounts receivable Inventories Securities (available for sale)-at fair Market value Notes Receivable (due next year) Prepaid Expenses Total current assets Non-Current assets Investments in Warren Co. Land Building Accumulated Depreciations Net building Goodwill Patents Copyrights Trademarks Deposits with Vendors Total noncurrent assets Total assets Liabilities and
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Job-order costing systems assign costs to individual jobs and is best for when jobs use different mateials, different labor and/or different amounts of overhead resources. Think making movies. Each movie uses different actors, different props and different amounts of travel and setup. So, you would assign costs to each movie, not divide the total cost evenly across all movies. For oatmeal, you would not try to assign costs to each batch of oatmeal because they are all the same. So, for this firm
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ACCT 504 Case Study 2 Keller Graduate School DeVry University ABSTRACT There are several internal control requirements that need to be put into place if the company decides to go public. Those principals are establishment of responsibility, segregation of duties, physical controls, independent internal verification, documentation procedures and human resource controls. Establishment of responsibility is making sure that only designated personnel has the authority to handle certain
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ACCT 212 Course Project (Devry) FOR MORE CLASSES VISIT www.acct212papers.com (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what owners' equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners' equity. (10 points) (TCO 1) The financial statements present a company to the public in financial terms.
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ACCT 212 Course Project (Devry) FOR MORE CLASSES VISIT www.acct212papers.com This course has two course projects due. The first, Course Project 1, reinforces the basic principles of accounting and application of the accounting information system. It is completed in two parts. The second, Course Project 2, is an opportunity to show the ability to analyze financial statements to arrive at conclusions based upon the analysis. Course Project 1 - Overview and Guidelines | Course Project 2 - Overview
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