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Acme Corp Unadjusted Trial Balance




Question;Acme Corp Unadjusted Trial BalanceFYE 12-31-2013Cash Dr 6000Accounts Receivable Dr 49000Allowance for Doubtful accounts Cr*****58000Investment in XYZ Corp bonds Dr*****10000Plant and Equipment Dr 104000Accumulated Depreciation CR 18000Unearned rent revenue Cr 10200Accounts Payable Cr 9310Bonds Payable Cr 50000Discount Bonds payable Dr 1500Capital stock Cr 100000Retained Earnings Cr 80660Sales Cr*****170000Purchase Discounts Cr 2400Transportation out Dr 9000Transportation in Dr 3500Insurance Expense Dr 2940Rent Expense Dr 13200Salaries and Wages Dr 35000Interest Expense Dr 3600Misc Exp Dr 890Total $484,630 $484,6301. Acme estimates that 5% of the Accounts Receivable balances on December 31, 2013 will become uncollectible. On December 28, 2013 the bookkeeper incorrectly credited Sales for a receipt on account in the amount of $3000. The error had not been corrected as of December 31, 2013.2. On November 1, 2013, Acme purchased 18 $1000, 13% XYZ bonds, maturing on October 31, 2020, at par value. Interest payment dates are April 30 and October 31.3. Instead of #2, On June 1, 2013, Acme issued 50 $1000, 12% bonds, maturing on June 1, 2023, at 97% of par value. Interest payment dates are May 31 and November 30.I want to know how to calculate the bonds interest revenue along with the answer. I don't understand what the 18 and 50 $1000 mean, could you please explain? and If the interest payment dates are May 31 and November 30, which month do i start counting for the interest? because if I count from May 31, then i multiply 7 months by the interest per month. please explain how to calculate the interest.


Paper#37929 | Written in 18-Jul-2015

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