ACCT 2001 Chapter : Ch 11 Practice
Get access
Related Documents
Related Questions
Required information
[The following information applies to the questions displayed below.]
Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017.
2016
Apr. | 20 | Purchased $39,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. | ||
May | 19 | Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $4,500 in cash. | ||
July | 8 | Borrowed $63,000 cash from NBR Bank by signing a 120-day, 11% interest-bearing note with a face value of $63,000. | ||
__?__ | Paid the amount due on the note to Locust at the maturity date. | |||
__?__ | Paid the amount due on the note to NBR Bank at the maturity date. | |||
Nov. | 28 | Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7% interest-bearing note with a face value of $36,000. | ||
Dec. | 31 | Recorded an adjusting entry for accrued interest on the note to Fargo Bank. |
2017
__?__ | Paid the amount due on the note to Fargo Bank at the maturity date. |
5.1 Prepare journal entries for all the preceding transactions and events for 2016. (Do not round your intermediate calculations.)
Journal entry worksheet
Transaction Index :
Purchased $39,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system.
Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $4,500 in cash.
Borrowed $63,000 cash from NBR Bank by signing a 120-day, 11% interest-bearing note with a face value of $63,000.
Paid the amount due on the note to Locust at the maturity date.
Paid the amount due on the note to NBR Bank at the maturity date.
Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7% interest-bearing note with a face value of $36,000.
Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Note: Enter debits before credits.
| |||||||||||||||||||||||||
|
Note: Enter debits before credits.
0 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowed $63,000 cash from NBR Bank by signing a 120-day, 11% interest-bearing note with a face value of $63,000. Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7% interest-bearing note with a face value of $36,000. Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Note: Enter debits before credits.
|
PAYROLL ENTRIES
J&W Buffet Co. employees earned $350,000 in the week endedDecember 17, 2010. Of this, $26,775 was deducted from employeesâpay for FICA and $62,000 was deducted for income taxes.
Prepare the journal entry to record the employeesâ portion ofpayroll for December 17, 2010.
Prepare the journal entry to record the employerâs share of FICApayroll taxes for December 17, 2010.
HW 9 â 2
NOTES PAYABLE
Mumford Co. borrowed a $100,000 note payable on June 1, 2010,with 6% interest. The note is due on May 31, 2011.
Prepare the journal entry to record the issuance of the note andreceipt of cash on June 1, 2010.
Prepare the adjusting journal entry to record the interest owedat the end of the accounting period on December 31, 2010.
Prepare the journal entries to record the interest and principalpayments to the lender on May 31, 2011.
HW 9 â 3
UNEARNED REVENUE
On January 1, 2009, Charlie Rangel paid $2,000 for a twoâyearmembership to the Beam Gym.
Prepare the journal entry to record the receipt of cash onJanuary 1, 2009.
By December 31, 2009, one half of Rangelâs membership expired.Prepare the required adjusting journal entry on that date.
By December 31, 2010, the remainder of Rangelâs membershipexpired. Prepare the required adjusting journal entry on thatdate.
Post the entries above to the Unearned Revenue account:
Unearned Revenue |
HW 9 â 4
ISSUING BONDS
Issuance of $800,000, 5-year, 8% payable annually (market rate12%) for cash of $684,627 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of thebonds:
Complete the following interest schedule (assuming straight-lineamortization):
Date | Cash Payment of Interest | Interest Expense | Amortization of Discount | Carrying Value (Net Liability) |
1/1/2007 | None | None | None | |
12/31/2007 | ||||
12/31/2008 | ||||
12/31/2009 | ||||
12/31/2010 | ||||
12/31/2011 |
Prepare the journal entry to record the first payment ofinterest on 12/31/2007:
HW 9 â 5
ISSUING BONDS
Issuance of $1,200,000, 5-year, 10% payable annually (marketrate 8%) for cash of $1,295,844 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of thebonds:
Complete the following interest schedule (assuming straight-lineamortization):
Date | Cash Payment of Interest | Interest Expense | Amortization of Premium | Carrying Value (Net Liability) |
1/1/2007 | None | None | None | |
12/31/2007 | ||||
12/31/2008 | ||||
12/31/2009 | ||||
12/31/2010 | ||||
12/31/2011 |
Prepare the journal entry to record the first payment ofinterest on 12/31/2007: