Description of this paper

intermediate accounting

Description

solution


Question

1.;Kohl Company lent $47,300 to Hemingway, Inc, accepting Hemingway's 2-year, $57,442, zero-interest-bearing note. The implied interest rate is 10.2%. Prepare Kohl's journal entries for the initial transaction, recognition of interest each year, and the collection of $57,442 at maturity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.);Account Titles and Explanation;Debit;Credit;;;;;;;;;;;;;;;;;;;;;;;;;;;;2.;For each event listed below, select the appropriate category which describes the effect of the event on a statement of cash flows;1.;Payment on long-term debt;;2.;Issuance of bonds at a premium;;3.;Collection of accounts receivable;;4.;Cash dividends declared;;5.;Issuance of stock to acquire land;;6.;Sale of available-for-sale securities (long-term);;7.;Payment of employees' wages;;8.;Issuance of common stock for cash;;9.;Payment of income taxes payable;;10.;Purchase of equipment;;11.;Purchase of treasury stock (common);;12.;Sale of real estate held as a long-term investment;;3.;Question 3;A trial balance before adjustment included the following;Debit;Credit;Accounts receivable;$183,000;Allowance for doubtful accounts;570;Sales;$391,000;Sales returns and allowances;7,800;Give journal entries assuming that the estimate of uncollectibles is determined by taking;(1) 6% of gross accounts receivable (Credit account titles are automatically indented when the amount is entered. Do not indent manually.);Account Titles and Explanation;Debit;Credit;;;;;;;(2) 1% of net sales. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.);Account Titles and Explanation;Debit;Credit;;;;;;

 

Paper#74190 | Written in 18-Jul-2015

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