Study Guides (248,116)

# Cheatsheet.docx

1 Page
189 Views

School
Department
Course
Professor
Eric Silverberg
Semester
Winter

Description
February 1, 2011 – January 31, 2012 o This year Issue 15000 5.5 per cent bonds on April 1, 2011  Dr Everything Payment dates on October 1 and April 1  Cr A/P Callable at 98.5 any time after October 1, 2011 - Utilities Expense (WIP) - Insurance Expense (WIP) October 1, 2011 - Pay off wages payable Bond interest expense 27,902 - Wages expense (WIP) 5.5% Bond payable 27,902 - Production Supplies (WIP) Expense: \$14,680,058 × 6% × 6/12 = \$440,402 - Raw materials (WIP) Paid: \$15,000,000 × 5.5% × 6/12 = \$412,500 - Solve for WIP Bond amortization: \$440,402 - \$412,500 = \$27,902 - Bring to FG - Solve for FG and move to COGS December 29, 2011: Recalled and retired 20 percent of the outstanding - Bank Loan (move to current portion) bonds o REPLENISH! - Bond Interest Payment Bond interest expense 44,124 5.5% Bond payable 44,124 o Dr Bond Interest Expense o Cr 8% Bond Payable CV: (\$14,680,058 + \$27,902) × 20% = \$2,941,592  Amount of amortization Expense: \$2,941,592× 6% × 3/12 = \$44,124 - Bond Recall Paid: \$15,000,000 × 20% × 5.5% × 3/12 = \$41,250 o Dr Bond Interest Expense Bond amortization: \$44,124 - \$41,250 = \$2,874 o Cr 8% Bond Payable  Amount of Interest Expense! Loss on recall 10,534 - Loss on Recall 5.5% Bond payable 10,534 o Dr Loss on Recall CV: \$2,941,592 + \$2,874 = \$2,944,466 o Cr 8% Bond Payable Cash paid: \$2,996,250 - \$41,250 = \$2,955,000 Loss: \$2,955,000 - \$2,944,466 = \$10,534 - FYE Bond Interest o Dr Bond Interest Expense o Cr Bond Interest Payable January 31, 2012: FYE
More Less

Me

OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Join to view

OR

By registering, I agree to the Terms and Privacy Policies
Just a few more details

So we can recommend you notes for your school.