ACC/291 – 48007780 / Assignment: Week 3 Assignment

Print by: JOSHUA RIVERAACC/291 – 48007780 / Assignment: Week 3 Assignment*Exercise 10-5During the month of March, Olinger Company’s employees earned wages of $89,400. Withholdings relatedto these wages were $6,839 for Social Security (FICA), $10,477 for federal income tax, $4,330 for stateincome tax, and $559 for union dues. The company incurred no cost related to these earnings for federalunemployment tax but incurred $978 for state unemployment tax.Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries andwages payable. Assume that wages earned during March will be paid during April. (Credit account titlesare automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditMar. 31Prepare the entry to record the company’s payroll tax expense. (Credit account titles areautomatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditMar. 31Question Attempts: 0 of 3 usedCopyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved.Print by: JOSHUA RIVERAACC/291 – 48007780 / Assignment: Week 3 Assignment*Exercise 10-8On August 1, 2014, Ortega Corporation issued $711,600, 8%, 10-year bonds at face value. Interest ispayable annually on August 1. Ortega’s year-end is December 31.Prepare journal entries to record the issuance of the bonds. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually.)Date Account Titles and ExplanationDebitCreditAug. 1Prepare journal entries to record the accrual of interest on December 31, 2014. (Credit account titlesare automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditDec. 31Prepare journal entries to record the payment of interest on August 1, 2015. (Credit account titles areautomatically indented when amount is entered. Do not indent manually.)Date Account Titles and ExplanationDebitCreditAug. 1Question Attempts: 0 of 3 usedCopyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved.Print by: JOSHUA RIVERAACC/291 – 48007780 / Assignment: Week 3 Assignment*Exercise 10-13Romine Company issued $425,900 of 9%, 10-year bonds on January 1, 2014, at face value. Interest ispayable annually on January 1.Prepare the journal entries to record the issuance of the bonds. (Credit account titles areautomatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2014Prepare the journal entries to record the accrual of interest on December 31, 2014. (Credit accounttitles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditDec. 31, 2014Prepare the journal entries to record the payment of interest on January 1, 2015. (Credit account titlesare automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2015Prepare the journal entries to record the redemption of the bonds at maturity, assuming interest for thelast interest period has been paid and recorded. (Credit account titles are automatically indentedwhen amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2024Question Attempts: 0 of 3 usedCopyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved.Print by: JOSHUA RIVERAACC/291 – 48007780 / Assignment: Week 3 Assignment*Exercise 10-22Cole Corporation issued $432,000, 8%, 21-year bonds on January 1, 2014, for $391,856. This price resulted in an effectiveinterest rate of 9% on the bonds. Interest is payable annually on January 1. Cole uses the effective-interest method to amortizebond premium or discount.Prepare the schedule using effective-interest method to amortize bond premium or discount of Cole Corporation. (Roundanswers to 0 decimal places, e.g. 150.)InterestPeriodsInterest toBe PaidInterest Expenseto Be Recorded$IssuedateDiscountAmortization$UnamortizedDiscount$BondCarrying Value$$12Prepare the journal entries to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 125. Creditaccount titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2014Prepare the journal entries to record the accrual of interest and the discount amortization on December 31, 2014. (Roundanswers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Donot indent manually.)DateAccount Titles and ExplanationDebitCreditDec. 31, 2014Prepare the journal entries to record the payment of interest on January 1, 2015. (Round answers to 0 decimal places, e.g.125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2015Question Attempts: 0 of 3 usedCopyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved.Print by: JOSHUA RIVERAACC/291 – 48007780 / Assignment: Week 3 Assignment*Exercise 10-24Nance Co. receives $355,800 when it issues a $355,800, 6%, mortgage note payable to finance theconstruction of a building at December 31, 2014. The terms provide for semiannual installment payments of$18,153 on June 30 and December 31.Prepare the schedule using effective-interest method to amortize bond premium or discount of Nance Co.(Round answers to 0 decimal places, e.g. 125.)SemiannualInterestPeriodIssue dateCashPaymentInterestExpenseReductionof Principal$$PrincipalBalance$$6/30/1512/31/15Prepare the journal entries to record the mortgage loan. (Round answers to 0 decimal places, e.g. 125.Credit account titles are automatically indented when amount is entered. Do not indentmanually.)DateAccount Titles and ExplanationDebitCreditDec. 31, 2014Prepare the journal entries to record the first two installment payments. (Round answers to 0 decimalplaces, e.g. 125. Credit account titles are automatically indented when amount is entered. Do notindent manually.)DateAccount Titles and ExplanationDebitCreditFirst Installment PaymentJune 30, 2015Second Installment PaymentDec. 31, 2015Question Attempts: 0 of 3 usedCopyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved.Print by: JOSHUA RIVERAACC/291 – 48007780 / Assignment: Week 3 AssignmentIFRS 10-4Ratzlaff Company issues €2 million, 10-year, 8% bonds at 97, with interest payable on July 1 and January1.Prepare the journal entry to record the sale of these bonds on January 1, 2014. (Credit account titlesare automatically indented when the amount is entered. Do not indent manually.)Date Account Titles and ExplanationDebitCreditJan. 1Assuming instead that the above bonds sold for 104, prepare the journal entry to record the sale of thesebonds on January 1, 2014. (Credit account titles are automatically indented when the amount isentered. Do not indent manually.)Date Account Titles and ExplanationDebitCreditJan. 1Question Attempts: 0 of 3 usedCopyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved.Print by: JOSHUA RIVERAACC/291 – 48007780 / Assignment: Week 3 Assignment*Problem 9-7AIn recent years, Farr Company has purchased three machines. Because of frequent employee turnover inthe accounting department, a different accountant was in charge of selecting the depreciation method foreach machine, and various methods have been used. Information concerning the machines is summarizedin the table below.CostSalvageValueUseful Life(in years)DepreciationMethodMachineAcquired1Jan. 1, 2012$129,000$24,00010Straight-line2July 1, 201374,00010,3005Declining-balance3Nov. 1, 2013103,0408,5407Units-of-activityFor the declining-balance method, Farr Company uses the double-declining rate. For the units-of-activitymethod, total machine hours are expected to be 35,000. Actual hours of use in the first 3 years were:2013, 900; 2014, 4,810; and 2015, 6,600.Your answer is partially correct. Try again.Compute the amount of accumulated depreciation on each machine at December 31, 2015.MACHINE1MACHINE 2MACHINE 3$Accumulated Depreciation atDecember 31$ 4200060520$22600Your answer is incorrect. Try again.If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for thismachine in 2013? In 2014?2013Depreciation Expense$255002014$23800Question Attempts: 1 of 3 usedCopyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved.Print by: JOSHUA RIVERAACC/291 – 48007780 / Assignment: Week 3 Assignment*Problem 10-9AWempe Co. sold $3,420,000, 10%, 10-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay intereston January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are preparedannually.Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 104 and (2) 98. (Credit accounttitles are automatically indented when amount is entered. Do not indent manually.)No.Date1.1/1/142.1/1/14Account Titles and ExplanationDebitCreditPrepare amortization tables for issuance of the bonds sold at 104 for the first three interest payments.AnnualInterestPeriodsInterest toBe PaidInterest Expenseto Be Recorded$IssuedatePremiumAmortization$UnamortizedPremium$BondCarrying Value$$123Prepare amortization tables for issuance of the bonds sold at 98 for the first three interest payments.AnnualInterestPeriodsIssuedateInterest toBe PaidInterest Expenseto Be Recorded$PremiumAmortization$UnamortizedPremium$BondCarrying Value$123Prepare the journal entries to record interest expense for 2014 under both of the bond issuances assuming they sold at:(1) 104 and (2) 98. (Credit account titles are automatically indented when amount is entered. Do not indentmanually.)No.Date1.12/31/142.12/31/14Account Titles and ExplanationDebitCredit$Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 104 at December 31, 2014.WEMPE Co.Balance Sheet (Partial)December 31, 2014$:$Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 98 at December 31, 2014.WEMPE Co.Balance Sheet (Partial)December 31, 2014$:$Question Attempts: 0 of 3 usedCopyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved.Print by: JOSHUA RIVERAACC/291 – 48007780 / Assignment: Week 3 Assignment*Problem 10-13AGrace Herron has just approached a venture capitalist for financing for her new business venture, thedevelopment of a local ski hill. On July 1, 2013, Grace was loaned $239,000 at an annual interest rateof 5%. The loan is repayable over 5 years in annual installments of $55,203, principal and interest, dueeach June 30. The first payment is due June 30, 2014. Grace uses the effective-interest method foramortizing debt. Her ski hill company’s year-end will be June 30.Prepare an amortization schedule for the 5 years, 2013–2018. (Round answers to 0 decimal places,e.g. 125.)PeriodJuly 1,2013CashPaymentInterestExpense$PrincipalReduction$Balance$$June30,2014June30,2015June30,2016June30,2017June30,2018** Amount may be off due to rounding.Prepare all journal entries for Grace Herron for the first 2 fiscal years ended June 30, 2014, and June 30,2015. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automaticallyindented when amount is entered. Do not indent manually.)DateJuly 1/13June 30/14June 30/15Account Titles and ExplanationDebitCreditShow the balance sheet presentation of the note payable as of June 30, 2015. (Hint: Be sure to distinguishbetween the current and long-term portions of the note.) (Round answers to 0 decimal places, e.g.125.)GRACE HERRONBalance Sheet (Partial)June 30, 2015$$Question Attempts: 0 of 3 usedCopyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved.