ACCT 209 Study Guide - Midterm Guide: Bank Statement, List Of Captive Orcas, Income Statement

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30 Oct 2014

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Additional review problems, exam 3: on january 2, 2000, ned flanders company purchased a new computer (with a left-handed mouse) for use in his stores. ,400, is expected to last five years (or 10,000 hours), and has an estimated residual value of. Determine each of the following: ned uses double declining balance method of depreciation. ___________: ned uses the units of activity method of depreciation. Depreciation expense for 2001, assuming the computer was used 1,500 hours, is__________: ned uses straight line depreciation. What is the book value of the computer at january 1, ________: ned uses straight line depreciation, and sells the computer on july 1, 2002 for ,100. ____________: criswell corporation prepares monthly bank reconciliations of its checking account balance. The bank statement for may, 2001 indicated the following: An analysis of canceled checks and deposits and the records of criswell revealed the following: Error in recording check; check written and cleared bank for ; recorded as .

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The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

Year 1
July	1	Issued $58,800,000 of 20-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 13%, receiving cash of $50,482,396. Interest is payable semiannually on December 31 and June 30.
Dec.	31	Paid the semiannual interest on the bonds. The bond discount amortization of $207,940 is combined with the semiannual interest payment.
	31	Closed the interest expense account.
Year 2
June	30	Paid the semiannual interest on the bonds. The bond discount amortization of $207,940 is combined with the semiannual interest payment.
Dec.	31	Paid the semiannual interest on the bonds. The bond discount amortization of $207,940 is combined with the semiannual interest payment.
	31	Closed the interest expense account.
Year 3
June	30	Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $7,485,844 after payment of interest and amortization of discount have been recorded. (Record the redemption only.)

Required:

1.	Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.
2.	Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.
3.	Determine the carrying amount of the bonds as of December 31, Year 2.

ochrelocust675

On February 1, 2011, Wolf Inc. issued 10% bonds dated February 1,2011, with a face amount of $200,000. The bonds sold for $239,588and mature in 20 years. The effective interest rate for these bondswas 8%. Interest is paid semiannually on July 31 and January 31.Wolf's fiscal year is the calendar year. Wolf uses the effectiveinterest method of amortization. Required:
1. Prepare the journal entry to record the bond issuance onFebruary 1, 2011.
2. Prepare the entry to record interest on July 31, 2011.
3. Prepare the necessary journal entry on December 31, 2011.
4. Prepare the necessary journal entry on January 31, 2012.

coffeebear710

Entries for Bonds Payable, including bond redemption

The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:

Year 1
July 1.	Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30.
Dec. 31.	Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment.
31.	Closed the interest expense account.
Year 2
June 30.	Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment..
Dec. 31.	Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment.
31.	Closed the interest expense account.
Year 3
June 30.	Recorded the redemption of the bonds, which were called at 103. The balance in the bond premium account is $6,253,632 after payment of interest and amortization of premium have been recorded. (Record the redemption only.)

1. Journalize the entries to record the foregoing transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. When required, round amounts to the nearest dollar.

Year 1 July1


Dec.31


Dec.31

Year 2 June 30


Dec.31


Dec.31

Year 3 June 30

2. Indicate the amount of the interest expense in (A) Year 1 and (B) Year 2.

a. Year 1	$
b. Year 2	$

3. Determine the carrying amount of the bonds as of December 31, Year 2.

maroonhedgehog495

ACCT 209 Study Guide - Midterm Guide: Bank Statement, List Of Captive Orcas, Income Statement

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