Sikes Corporation, whose annual accounting period ends onDecember 31, issued the following bonds:
Date of bonds:January 1, 2008. Maturity amountand date: $250,000 due in 12 years (December 31, 2017). Interest: 11percent per year payable each December 31. Date issued:January 1, 2008.
Required: Provide the following amounts to bereported on the January 1, 2008, financial statements immediatelyafter the bonds are issued: (Leave no cells blank - be certain to enter "0"wherever required. Input all amounts as positive values. Omit the"$" sign in your response.)
Case A
(issued at 100) Case B
(issued at 95.2) Case C
(issued at 102.4) a. Bonds payable $ $ $ b. Unamortizedpremium or discount c. Unpaid bondliability $
$
$
Sikes Corporation, whose annual accounting period ends onDecember 31, issued the following bonds:
| Date of bonds:January 1, 2008. |
| Maturity amountand date: $250,000 due in 12 years (December 31, 2017). |
| Interest: 11percent per year payable each December 31. |
| Date issued:January 1, 2008. |
| Required: |
Provide the following amounts to bereported on the January 1, 2008, financial statements immediatelyafter the bonds are issued: (Leave no cells blank - be certain to enter "0"wherever required. Input all amounts as positive values. Omit the"$" sign in your response.) |
| Case A (issued at 100) | Case B (issued at 95.2) | Case C (issued at 102.4) | ||
| a. | Bonds payable | $ | $ | $ |
| b. | Unamortizedpremium or discount | |||
| c. | Unpaid bondliability | $ | $ | $ |
Related questions
Right Foot Shoes issued a two-year, $46,000 interest-bearingnote on January 1, 2008, in exchange for new equipment. Interestaccrues at 6.3 percent annually but is not paid until maturity.
| Record thejournal entries and accounting equation effects for each of thefollowing. |
rev: 02-28-2011
5 points
| (a) | The equipment purchase on January 1, 2008. (In cases where no entry is required, pleaseselect the option "NE" for your answer to grade correctly. Leave nocells blank - be certain to select "0" wherever required. Omit the"$" sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan 1, 2008 | (Click to select)CashEquipmentInterest payableNotepayableInterest expense | ||
| (Click toselect)CashNote payableEquipmentInterest expenseInterestpayable | |||
| Assets | Liabilities | Owners' Equity | |||
| (Click to select)Interest expenseNotepayableEquipmentNEInterest payable | (Click to select)0-46000+46000 | (Click to select)Interest expenseNENotepayableEquipmentInterest payable | (Click to select)+460000-46000 | (Click to select)Interest payableInterest expenseNotepayableEquipmentNE | (Click to select)+46000-460000 |
rev: 02-28-2011
| Worksheet | Difficulty: Easy | Learning Objective: 14-1 |
5 points
| (b) | The interest adjustment on December 31, 2008.(In cases where no entry isrequired, please select the option "NE" for your answer to gradecorrectly. Leave no cells blank - be certain to select "0" whereverrequired. Omit the "$" sign in your response.) |
| Date | General Journal | Debit | Credit |
| Dec 31,2008 | (Click to select)CashNote payableEquipmentInterestexpenseInterest payable | ||
| (Click toselect)Interest payableEquipmentCashNote payableInterestexpense | |||
| Assets | Liabilities | Owners' Equity | |||
| (Click to select)Interest payableNote payableNEInterestexpenseEquipment | (Click to select)0+2898-2898 | (Click to select)Interest payableNENote payableInterestexpenseEquipment | (Click to select)0-2898+2898 | (Click to select)EquipmentInterest payableInterestexpenseNENote payable | (Click to select)-2898+28980 |
rev: 02-28-2011
| Worksheet | Difficulty: Easy | Learning Objective: 14-1 |
5 points
| (c) | The payment on December 31, 2009. (In cases where no entry is required, pleaseselect the option "NE" for your answer to grade correctly. Leave nocells blank - be certain to select "0" wherever required. Roundyour answers to the nearest dollar amount. Omit the "$" sign inyour response.) |
| Date | General Journal | Debit | Credit |
| Dec 31,2009 | (Click to select)CashNote payableInterestpayableInterest expenseBonds payable | ||
| (Click to select)Interest payableCashBondspayableInterest expenseNote payable | |||
| (Click to select)Note payableInterest payableCashBondspayableInterest expense | |||
| (Click toselect)Note payableCashInterest payableInterestexpenseEquipment | |||
| Assets | Liabilities | Owners' Equity | |||
| (Click to select)Interest payableNENotepayableCashInterest expense | (Click to select)0+51979-51979 | (Click to select)Interest expenseNotepayableCashNEInterest payable | (Click to select)-2898+28980 | (Click to select)NECashInterest payableInterestexpenseNote payable | (Click to select)+3081-30810 |
| (Click to select)NECashInterest expenseNotepayableInterest payable | (Click toselect)+519790-51979 | (Click to select)Interest expenseInterest payableNotepayableCashNE | (Click toselect)0+46000-46000 | (Click to select)NECashInterest expenseInterestpayableNote payable | (Click toselect)+3081-30810 |
rev: 02-28-2011
| The following data relate to theoperations of Picanuy Corporation, a wholesale distributor ofconsumer goods: |
| Current assets as ofDecember 31: | ||
| Cash | $ | 6,000 |
| Accounts receivable | $ | 39,360 |
| Inventory | $ | 10,710 |
| Buildings andequipment, net | $ | 112,700 |
| Accountspayable | $ | 32,280 |
| Capital stock | $ | 100,000 |
| Retainedearnings | $ | 36,490 |
| a. | The gross margin is 30% ofsales. (In other words, cost of goods sold is 70% of sales.) |
| b. | Actual and budgeted sales dataare as follows: |
| December(actual) | $65,600 |
| January | $76,500 |
| February | $88,700 |
| March | $92,200 |
| April | $60,500 |
| c. | Sales are 40% for cash and 60% on credit. Credit sales arecollected in the month following sale. The accounts receivable atDecember 31 are the result of December credit sales. |
| d. | Each monthâs ending inventoryshould equal 20% of the following month's budgeted cost of goodssold. |
| e. | One-quarter of a monthâs inventory purchases is paid for in themonth of purchase; the other three-quarters is paid for in thefollowing month. The accounts payable at December 31 are the resultof December purchases of inventory. |
| f. | Monthly expenses are as follows: commissions, $16,510; rent,$2,000; other expenses (excluding depreciation), 8% of sales.Assume that these expenses are paid monthly. Depreciation is $500for the quarter and includes depreciation on new assets acquiredduring the quarter. |
| g. | Equipment will be acquired forcash: $3,790 in January and $8,990 in February. |
| h. | Management would like to maintain a minimum cash balance of$5,000 at the end of each month. The company has an agreement witha local bank that allows the company to borrow and repay inincrements of $1,000 at the beginning of each month, up to a totalloan balance of $50,000. The interest rate on these loans is 1% permonth, and for simplicity, we will assume that interest is notcompounded. The company would, as far as it is able, repay the loanplus accumulated interest at the end of the quarter. |
| Required: | |
| Using the dataabove: | |
| 1. | Complete the following schedule:(Omit the "$" sign in your response.) |
| Schedule of Expected Cash Collections | ||||
| January | February | March | Quarter | |
| Cash sales | $30,600 | $ | $ | $ |
| Credit sales | 39,360 | |||
| Totalcollections | $69,960 | $ | $ | $ |
| 2. | Complete the following: (Input all amounts as positivevalues. Leave no cells blank - be certain to enter "0" whereverrequired. Round the "Schedule of Expected Cash Disbursements âMerchandise Purchases" answers to 2 decimal places. Omit the "$"sign in your response.) |
| Merchandise Purchases Budget | |||||
| January | February | March | Quarter | ||
| Budgeted cost ofgoods sold | $53,550 | * | $ | $ | $ |
| Add desired endinginventory | 12,418 | â | |||
| Total needs | 65,968 | ||||
| Less beginninginventory | 10,710 | ||||
| Requiredpurchases | $55,258 | $ | $ | $ | |
| *$76,500 sales à 70% =$53,550. |
| â $88,700 Ã 70% Ã 20% =$12,418. |
| Schedule of Expected Cash DisbursementsâMerchandisePurchases | ||||||||
| January | February | March | Quarter | |||||
| Decemberpurchases | $32,280.00 | * | $ | $ | $32,280.00 | |||
| Januarypurchases | 13,814.50 | 41,443.50 | 55,258.00 | |||||
| Februarypurchases | ||||||||
| March purchases | ||||||||
| Totaldisbursements | $46,094.50 | $ | $ | $ | ||||
| *Beginning balance of theaccounts payable. |
| 3. | Complete the following schedule:(Omit the "$" sign in your response.) |
| Schedule of Expected Cash DisbursementsâSelling andAdministrative Expenses | ||||
| January | February | March | Quarter | |
| Commissions | $16,510 | $ | $ | $ |
| Rent | 2,000 | |||
| Other expenses | 6,120 | |||
| Totaldisbursements | $24,630 | $ | $ | $ |
| 4. | Complete the following cash budget: (Borrow and repay inincrements of $1,000. Input all amounts as positive values exceptcash deficiency, repayments and interest which should be indicatedby a minus sign. Round your answers to 2 decimal places. Leave nocells blank - be certain to enter "0" wherever required. Omit the"$" sign in your response.) |
| Picanuy Corporation | ||||
| Cash Budget | ||||
| January | February | March | Quarter | |
| Cash balance,beginning | $ 6,000.00 | $ | $ | $ |
| Add cashcollections | 69,960.00 | |||
| Total cashavailable | 75,960.00 | |||
| Less cashdisbursements: | ||||
| Forinventory | 46,094.50 | |||
| Foroperating expenses | 24,630.00 | |||
| Forequipment | 3,790.00 | |||
| Total cashdisbursements | 74,514.50 | |||
| Excess (deficiency)of cash | 1,445.50 | |||
| Financing: | ||||
| Borrowings | ||||
| Repayments | ||||
| Interest | ||||
| Total financing | ||||
| Cash balance,ending | $ | $ | $ | $ |
| 5. | Prepare an absorption costing income statement for the quarterended March 31. (Input all amounts as positive values. Omitthe "$" sign in your response.) |
| Picanuy Corporation Income Statement For the Quarter Ended March 31 | ||
| (Click toselect)Ending inventoryNet operating income (loss)BeginninginventoryNet income (loss)SalesOther expensesGross marginGoodsavailable for sale | $ | |
| Cost of goodssold: | ||
| (Click toselect)Beginning inventoryNet operating income(loss)DepreciationEnding inventoryPurchasesGoods available forsaleOther expensesGross margin | $ | |
| (Click to select)OtherexpensesEnding inventoryGross marginNet operating income(loss)DepreciationPurchasesSalesInterest expenses | ||
| (Click to select)GrossmarginNet operating income (loss)PurchasesDepreciationSalesOtherexpensesBeginning inventoryGoods available for sale | ||
| (Click to select)EndinginventoryBeginning inventoryDepreciationOther expensesGrossmarginInterest expensesPurchasesNet operating income (loss) | ||
| (Click to select)Netoperating income (loss)PurchasesSalesGoods available forsaleBeginning inventoryNet income (loss)Gross marginInterestexpense | ||
| Selling andadministrative expenses: | ||
| (Click toselect)Beginning inventoryRentNet operating income (loss)Goodsavailable for saleGross marginDepreciationCommissionsOtherexpenses | ||
| (Click toselect)RentBeginning inventoryDepreciationCommissionsOtherexpensesNet operating income (loss)Gross marginGoods available forsale | ||
| (Click to select)Goodsavailable for saleBeginning inventoryOther expensesNet operatingincome (loss)CommissionsDepreciationGross marginRent | ||
| (Click to select)Goodsavailable for saleBeginning inventoryCommissionsDepreciationOtherexpensesGross marginRentNet operating income (loss) | ||
| (Click toselect)SalesNet operating income (loss)CommissionsEndinginventoryGoods available for saleDepreciationPurchasesGrossmargin | ||
| (Click toselect)Beginning inventoryNet operating income (loss)GrossmarginInterest expenseSalesDepreciationEnding inventoryOtherexpenses | ||
| (Click toselect)SalesOther expensesGoods available for saleGrossmarginDepreciationEnding inventoryInterest expenseNet income(loss) | $ | |
| 6. | Prepare a balance sheet as ofMarch 31. (Be sure to list the assets and liabilities inorder of their liquidity. Round your answers to 2 decimal places.Omit the "$" sign in your response.) |
| Picanuy Corporation Balance Sheet March 31 | ||
| Assets | ||
| Current assets: | ||
| (Click toselect)CashInventoryAccounts payableFixed assets-netAccountsreceivable | $ | |
| (Click to select)AccountsreceivableAccounts payableCashInventoryFixed assets-net | ||
| (Click to select)Fixedassets-netAccounts payableCashInventoryAccounts receivable | ||
| Total currentassets | ||
| (Click toselect)InventoryCashAccounts receivableFixed assets-netAccountspayable | ||
| Total assets | $ | |
| Liabilities and Stockholdersâ Equity | ||
| (Click toselect)Accounts receivableCapital stockRetained earningsBank loanpayableAccounts payable | $ | |
| (Click toselect)Accounts receivableCapital stockRetained earningsBank loanpayableAccounts payable | ||
| Stockholders'equity: | ||
| (Click to select)AccountsreceivableCashAccounts payableBank loan payableCapital stock | $ | |
| (Click toselect)CashAccounts payableRetained earningsAccounts receivableBankloan payable | ||
| Total liabilitiesand stockholders' equity | $ | |
| The following data relate to theoperations of Picanuy Corporation, a wholesale distributor ofconsumer goods: |
| Current assets as ofDecember 31: | ||
| Cash | $ | 6,000 |
| Accounts receivable | $ | 39,360 |
| Inventory | $ | 10,710 |
| Buildings andequipment, net | $ | 112,700 |
| Accountspayable | $ | 32,280 |
| Capital stock | $ | 100,000 |
| Retainedearnings | $ | 36,490 |
| a. | The gross margin is 30% ofsales. (In other words, cost of goods sold is 70% of sales.) |
| b. | Actual and budgeted sales dataare as follows: |
| December(actual) | $65,600 |
| January | $76,500 |
| February | $88,700 |
| March | $92,200 |
| April | $60,500 |
| c. | Sales are 40% for cash and 60% on credit. Credit sales arecollected in the month following sale. The accounts receivable atDecember 31 are the result of December credit sales. |
| d. | Each monthâs ending inventoryshould equal 20% of the following month's budgeted cost of goodssold. |
| e. | One-quarter of a monthâs inventory purchases is paid for in themonth of purchase; the other three-quarters is paid for in thefollowing month. The accounts payable at December 31 are the resultof December purchases of inventory. |
| f. | Monthly expenses are as follows: commissions, $16,510; rent,$2,000; other expenses (excluding depreciation), 8% of sales.Assume that these expenses are paid monthly. Depreciation is $500for the quarter and includes depreciation on new assets acquiredduring the quarter. |
| g. | Equipment will be acquired forcash: $3,790 in January and $8,990 in February. |
| h. | Management would like to maintain a minimum cash balance of$5,000 at the end of each month. The company has an agreement witha local bank that allows the company to borrow and repay inincrements of $1,000 at the beginning of each month, up to a totalloan balance of $50,000. The interest rate on these loans is 1% permonth, and for simplicity, we will assume that interest is notcompounded. The company would, as far as it is able, repay the loanplus accumulated interest at the end of the quarter. |
| Required: | |
| Using the dataabove: | |
| 1. | Complete the following schedule:(Omit the "$" sign in your response.) |
| Schedule of Expected Cash Collections | ||||
| January | February | March | Quarter | |
| Cash sales | $30,600 | $ | $ | $ |
| Credit sales | 39,360 | |||
| Totalcollections | $69,960 | $ | $ | $ |
| 2. | Complete the following: (Input all amounts as positivevalues. Leave no cells blank - be certain to enter "0" whereverrequired. Round the "Schedule of Expected Cash Disbursements âMerchandise Purchases" answers to 2 decimal places. Omit the "$"sign in your response.) |
| Merchandise Purchases Budget | |||||
| January | February | March | Quarter | ||
| Budgeted cost ofgoods sold | $53,550 | * | $ | $ | $ |
| Add desired endinginventory | 12,418 | â | |||
| Total needs | 65,968 | ||||
| Less beginninginventory | 10,710 | ||||
| Requiredpurchases | $55,258 | $ | $ | $ | |
| *$76,500 sales à 70% =$53,550. |
| â $88,700 Ã 70% Ã 20% =$12,418. |
| Schedule of Expected Cash DisbursementsâMerchandisePurchases | ||||||||
| January | February | March | Quarter | |||||
| Decemberpurchases | $32,280.00 | * | $ | $ | $32,280.00 | |||
| Januarypurchases | 13,814.50 | 41,443.50 | 55,258.00 | |||||
| Februarypurchases | ||||||||
| March purchases | ||||||||
| Totaldisbursements | $46,094.50 | $ | $ | $ | ||||
| *Beginning balance of theaccounts payable. |
| 3. | Complete the following schedule:(Omit the "$" sign in your response.) |
| Schedule of Expected Cash DisbursementsâSelling andAdministrative Expenses | ||||
| January | February | March | Quarter | |
| Commissions | $16,510 | $ | $ | $ |
| Rent | 2,000 | |||
| Other expenses | 6,120 | |||
| Totaldisbursements | $24,630 | $ | $ | $ |
| 4. | Complete the following cash budget: (Borrow and repay inincrements of $1,000. Input all amounts as positive values exceptcash deficiency, repayments and interest which should be indicatedby a minus sign. Round your answers to 2 decimal places. Leave nocells blank - be certain to enter "0" wherever required. Omit the"$" sign in your response.) |
| Picanuy Corporation | ||||
| Cash Budget | ||||
| January | February | March | Quarter | |
| Cash balance,beginning | $ 6,000.00 | $ | $ | $ |
| Add cashcollections | 69,960.00 | |||
| Total cashavailable | 75,960.00 | |||
| Less cashdisbursements: | ||||
| Forinventory | 46,094.50 | |||
| Foroperating expenses | 24,630.00 | |||
| Forequipment | 3,790.00 | |||
| Total cashdisbursements | 74,514.50 | |||
| Excess (deficiency)of cash | 1,445.50 | |||
| Financing: | ||||
| Borrowings | ||||
| Repayments | ||||
| Interest | ||||
| Total financing | ||||
| Cash balance,ending | $ | $ | $ | $ |
| 5. | Prepare an absorption costing income statement for the quarterended March 31. (Input all amounts as positive values. Omitthe "$" sign in your response.) |
| Picanuy Corporation Income Statement For the Quarter Ended March 31 | ||
| (Click toselect)SalesGoods available for saleOther expensesNet operatingincome (loss)Gross marginBeginning inventoryNet income (loss)Endinginventory | $ | |
| Cost of goodssold: | ||
| (Click to select)Goodsavailable for saleDepreciationNet operating income (loss)BeginninginventoryPurchasesOther expensesEnding inventoryGross margin | $ | |
| (Click to select)Netoperating income (loss)DepreciationGross marginPurchasesInterestexpensesSalesEnding inventoryOther expenses | ||
| (Click toselect)DepreciationNet operating income (loss)PurchasesOtherexpensesBeginning inventorySalesGross marginGoods available forsale | ||
| (Click to select)InterestexpensesGross marginDepreciationEnding inventoryBeginninginventoryNet operating income (loss)PurchasesOther expenses | ||
| (Click toselect)Beginning inventoryInterest expenseNet operating income(loss)Goods available for saleGross marginNet income(loss)PurchasesSales | ||
| Selling andadministrative expenses: | ||
| (Click to select)GrossmarginRentOther expensesBeginning inventoryNet operating income(loss)DepreciationCommissionsGoods available for sale | ||
| (Click to select)Goodsavailable for saleGross marginNet operating income(loss)DepreciationRentBeginning inventoryOtherexpensesCommissions | ||
| (Click toselect)CommissionsGoods available for saleNet operating income(loss)DepreciationRentBeginning inventoryGross marginOtherexpenses | ||
| (Click toselect)Beginning inventoryGross marginOther expensesNet operatingincome (loss)DepreciationCommissionsGoods available forsaleRent | ||
| (Click toselect)Ending inventoryGross marginGoods available forsaleDepreciationSalesNet operating income(loss)PurchasesCommissions | ||
| (Click toselect)DepreciationNet operating income (loss)SalesBeginninginventoryEnding inventoryOther expensesGross marginInterestexpense | ||
| (Click toselect)SalesGoods available for saleGross marginDepreciationOtherexpensesNet income (loss)Interest expenseEnding inventory | $ | |
| 6. | Prepare a balance sheet as ofMarch 31. (Be sure to list the assets and liabilities inorder of their liquidity. Round your answers to 2 decimal places.Omit the "$" sign in your response.) |
| Picanuy Corporation Balance Sheet March 31 | ||
| Assets | ||
| Current assets: | ||
| (Click to select)Fixedassets-netAccounts payableCashAccounts receivableInventory | $ | |
| (Click to select)AccountspayableFixed assets-netCashAccounts receivableInventory | ||
| (Click to select)AccountspayableFixed assets-netAccounts receivableCashInventory | ||
| Total currentassets | ||
| (Click toselect)Accounts receivableInventoryCashAccounts payableFixedassets-net | ||
| Total assets | $ | |
| Liabilities and Stockholdersâ Equity | ||
| (Click toselect)Accounts payableCapital stockRetained earningsBank loanpayableAccounts receivable | $ | |
| (Click toselect)Bank loan payableAccounts receivableRetainedearningsAccounts payableCapital stock | ||
| Stockholders'equity: | ||
| (Click to select)AccountspayableCashCapital stockAccounts receivableBank loan payable | $ | |
| (Click to select)Bankloan payableCashAccounts payableRetained earningsAccountsreceivable | ||
| Total liabilitiesand stockholders' equity | $ | |
| Need help with 5 and 6 ..... | ||
