MGA 301 Final: In_class_exercise_Notesb
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1. Record the transactions in the companyâs general journal. Use daysin any interest accrual calculations, not months. Round all resultsto the nearest whole dollar.
The following transactions of Tech Source of Boston,Massachusetts, occurred during 2013 and 2014. The companyâsyear-end is December 31.
2013
Mar.3 â Purchased a machine for $66,000 plus 5% GST, signing asix-month, 3% note-payable.
Mar. 31 â Recorded the monthâs sales of $134,500, one-quarterfor cash, and three-quarters on credit. All sales amounts aresubject to 5% GST, to be calculated on the sales of $134,500.
Apr. 7 â Paid Marchâs GST to the Receiver General
May. 31 â Borrowed $75,000 with a 5% note payable that calls forannual installment payments of $15,000 principal plus interest.
Sept 3. â Paid the six-month, 3% note at maturity
Sept 30. â Purchased inventory at a cost of $25,000 plus GST,signing a 5%, six-month note payable for that amount.
Dec. 31 â Accrued warranty expense, which is estimated at 3% ofannual sales of $1,445,000
Dec. 31 -Accrued interest on all outstanding notes payable. Makea separate interest accrual entry for each note payable.
2014
Mar. 31 â Paid off the 5% inventory note, plus interest, atmaturity.
May â Paid the first installment and interest for one year onthe long-term note payable.
General Journal | |||||
DATE | ACCOUNT TITLES AND EXPLANATIONS | POST. REF. | DEBIT | CREDIT | |
General Journal | |||||
DATE | ACCOUNT TITLES AND EXPLANATIONS | POST. REF. | DEBIT | CREDIT | |
I need helps with numbers 4 & 5. Questions 1-3 I havealready completed and prvoded below.
[The following information applies to the questionsdisplayed below.]
Tyrell Co. entered into the following transactions involvingshort-term liabilities in 2014 and 2015. |
| 2014 | |
| Apr.20 | Purchased $35,500 of merchandise on credit from Locust, termsare 1/10, n/30. Tyrell uses the perpetual inventory system. |
| May19 | Replaced the April 20 account payable to Locust with a 90-day,$35,000 note bearing 7% annual interest along with paying $500 incash. |
| July8 | Borrowed $63,000 cash from National Bank by signing a 120-day,12% interest-bearing note with a face value of $63,000. |
| __?__ | Paid the amountdue on the note to Locust at the maturity date. |
| __?__ | Paid the amountdue on the note to National Bank at the maturity date. |
| Nov.28 | Borrowed $27,000 cash from Fargo Bank by signing a 60-day, 8%interest-bearing note with a face value of $27,000. |
| Dec.31 | Recorded anadjusting entry for accrued interest on the note to FargoBank. |
| 2015 |
| __?__ | Paid the amountdue on the note to Fargo Bank at the maturity date. |
1. Determine the maturity date for each of thethree notes described.
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2. Determine the interest due at maturity foreach of the three notes. (Do not round your intermediatecalculations. Use 360 days a year.)
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4. Determine the interest expense to berecorded in 2015. (Do not round intermediate calculationsand round your final answers to nearest whole dollar. Use 360 daysa year.) Fill in the blanks.
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5. Prepare journal entries for all thepreceding transactions and events for years 2014. (Do notround your intermediate calculations.)
| Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Inc.) on January 1, 2014. The annual reporting period ends December 31. The trial balance on January 1, 2015, appears below (amounts are rounded to thousands of dollars to simplify). |
| Account Titles | Debit | Credit | ||||
| Cash | $ | 5 | ||||
| Accounts Receivable | 4 | |||||
| Supplies | 3 | |||||
| Equipment | 6 | |||||
| Accumulated Depreciation | $ | 0 | ||||
| Software | 12 | |||||
| Accumulated Amortization | 3 | |||||
| Accounts Payable | 7 | |||||
| Notes Payable (long-term) | 0 | |||||
| Salaries and Wages Payable | 0 | |||||
| Interest Payable | 0 | |||||
| Income Tax Payable | 0 | |||||
| Unearned Revenue | 0 | |||||
| Common Stock | 15 | |||||
| Retained Earnings | 5 | |||||
| Service Revenue | 0 | |||||
| Supplies Expense | 0 | |||||
| Depreciation Expense | 0 | |||||
| Salaries and Wages Expense | 0 | |||||
| Amortization Expense | 0 | |||||
| Interest Expense | 0 | |||||
| Income Tax Expense | 0 | |||||
| Totals | $ | 30 | $ | 30 | ||
| Transactions during 2015 (summarized in thousands of dollars) follow: | |
| 1. | Borrowed $28 cash on July 1, 2015, signing a six-month note payable. |
| 2. | Purchased equipment for $16 cash on July 1, 2015. |
| 3. | Issued additional shares of common stock for $4. |
| 4. | Earned revenues for 2015 in the amount of $71, including $8 on credit and $63 received in cash. |
| 5. | Recognized salaries and wages expenses for 2015 of $42, paid in cash. |
| 6. | Purchased additional equipment, $4 cash. |
| 7. | Collected accounts receivable, $7. |
| 8. | Paid accounts payable, $10. |
| 9. | Purchased on account supplies for future use, $9. |
| 10. | Received a $3 cash deposit on work to start January 15, 2016. |
| Data for adjusting journal entries: | |
| 11. | Amortization for 2015, $3. |
| 12. | Supplies of $5 were counted on December 31, 2015. |
| 13. | Depreciation for 2015, $1. |
| 14. | Accrued interest on notes payable of $1. |
| 15. | Wages earned since the December 24 payroll not yet paid, $2. |
| Income tax for 2015 was $3 and will be paid in 2016 Prepare balance sheet. Prepare the closing journal entry. Post the closing entry and prepare a post-closing trial balance | |
