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1. Kelso Co. receives $479,000 when it issues a $4...

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1. Kelso Co. receives $479,000 when it issues a $479,000, 8%, mortgage note payable to finance the construction of a building at December 31, 2010. The terms provide for semiannual installment payments of $30,660 on June 30 and December 31. Prepare the journal entries to record the mortgage loan and the first two installment payments. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. Round all answers to 0 decimal places, e.g. 2,510.) 2. Melissa Hoadley and Kelly Quayle borrowed $23,709 on an 7-month, 6% note from Gopher State Bank to open their business, MK's Coffee House. The money was borrowed on June 1, 2010, and the note matures January 1, 2011. (a) Prepare the entry to record the receipt of the funds from the loan. (b) Prepare the entry to accrue the interest on June 30. (Round answers to 0 decimal places, e.g. 255 and use rounded amount for future calculations.) (C) Assuming adjusting entries are made at the end of each month, determine the balance in the interest payable account at December 31, 2010. (d) Prepare the entry required on January 1, 2011, when the loan is paid back. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) 3.During the month of March, Neufeld Company's employees earned wages of $60,400. Withholdings related to these wages were $4,621 for Social Security (FICA), $7,550 for federal income tax, $3,123 for state income tax, and $403 for union dues. The company incurred no cost related to these earnings for federal unemployment tax, but incurred $725 for state unemployment tax. (a) Prepare the necessary March 31 journal entry to record wages expense and wages payable. Assume that wages earned during March will be paid during April. (b) Prepare the entry to record the company's payroll tax expense. 4.Season tickets for the Longhorns are priced at $245 and include 20 games. Revenue is recognized after each game is played. When the season began, the amount credited to Unearned Revenue from season tickets was $1,403,605. By the end of October, $982,520 of the Unearned Revenue from season tickets had been recorded as earned. (Round answers to 0 decimal places, e.g. 2,550.) (a) How many season tickets did the Longhorns sell? tickets (b) How many home games had the Longhorns played by the end of October? games (c) Prepare the entry for the initial recording of the Unearned Season Ticket Revenue. (d) Prepare the entry to recognize the revenue after the first home game had been played. 5. On September 1, 2010, Elmdale Corporation issued $608,800, 8%, 10-year bonds at face value. Interest is payable annually on September 1. Elmdale's year-end is December 31. Prepare journal entries to record the following events. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. Round answers to 0 decimal places, e.g. 25,100) (a) The issuance of the bonds (b) The accrual of interest on December 31, 2010. (c) The payment of interest on September 1, 2011. 6. The situations presented here are independent of each other. For each situation prepare the appropriate journal entry for the redemption of the bonds. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) (a) Garland Corporation retired $146,000 face value, 13% bonds on June 30, 2010, at 104. The carrying value of the bonds at the redemption date was $127,750. The bonds pay annual interest, and the interest payment due on June 30, 2010, has been made and recorded. (b) Hutchinson, Inc., retired $216,000 face value, 13.9% bonds on June 30, 2010, at 99. The carrying value of the bonds at the redemption date was $237,600. The bonds pay annual interest, and the interest payment due on June 30, 2010, has been made and recorded.

 

Paper#9556 | Written in 18-Jul-2015

Price : $25
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