Complete the assigned exercises in WileyPLUS

Excel Problem 10-8A

Excel Problem 10-8B

Problem 11-7A

P10-8A

Prepare journal entries to record issuance of bonds, interest, straight-line amortization, and balance sheet presentation
and balance sheet presentation

Yung Corporation sold $2,000,000, 7%, 5 year bonds on January 1, 2014.  The bonds were dated January 1, 2014, and pay interest
on January 1.  The company uses straight-line amortization on bond premiums or discounts.

Instructions
(a)        Prepare all necessary journal entries to record the  issuance of the bonds and bond interest expense for 2014,
assuming the bond sold at 102.
(b)        Prepare journal entries as in part (a) assuming the bonds sold at 97.
(c )       Show the balance sheet presentation for the bond issue at December 31, 2014, using (1) the 102 selling price, and
then (2) the 97 selling price
NOTE:  Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .

P10-8B

Prepare journal entries to record issuance of bonds, interest, straight-line amortization, and balance sheet presentation
and balance sheet presentation

Holmes Corporation sold $2,200,000, 8%, 5-year bonds on January 1, 2014.  The bonds were dated January 1, 2014, and pay interest
on January 1.  Holmes Corporation uses the straight-line method to amortize bond premiums or discounts.

Instructions
(a)        Prepare all necessary journal entries to record the  issuance of the bonds and bond interest expense for 2014,
assuming the bond sold at 102.
(b)        Prepare journal entries as in part (a) assuming g the bonds sold at 98.
(c )       Show the balance sheet presentation for the bond issue at December 31, 2014, using (1) the 102 selling price, and
then (2) the 98 selling price
NOTE:  Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .

P10-10A

Prepare journal entries to record issuance of bonds, payment of interest, and amortization of bond discount using effective interest method.

On January 1, 2014, Lock Corporation issued                                                                                                                                   $1,800,000                              face value,                               5%
10                                -year bonds at                         $1,667,518                              This price resulted in an effective-interest rate of
6%                               on the bonds. Lock uses the effective-interest method to amortize bond premium or
discount. The bonds pay annual interest January 1.

Cash balance per bank, July 31, $7,419.
2.

July bank service charge not recorded by the depositor $57.
3.

Cash balance per books, July 31, $7,455.
4.

Deposits in transit, July 31, $2,791.
5.

Note for $2,091 collected for Joyce Company in July by the bank, plus interest $55 less fee $39. The collection has not been recorded by Joyce Company, and no interest has been accrued.
6.

Outstanding checks, July 31, $705.
Exercise 7-14
Enright Company expects to have a cash balance of $63,550 on January 1, 2014. These are the relevant monthly budget data for the first two months of 2014.
1.

Collections from customers: January $88,550, February $163,550.
2.

Payments to suppliers: January $57,550, February $92,550.
3.

Wages: January $30,161, February $40,161. Wages are paid in the month they are incurred.
4.

Administrative expenses: January $21,161, February $24,161. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5.

Selling expenses: January $15,161, February $20,161. These costs are exclusive of depreciation. They are paid as incurred.
6.

2014

2013
Cash

$ 29,895

$ 59,790
Accounts receivable (net)

139,510

119,580
Inventory

119,580

99,650
Plant assets (net)

398,600

358,740

$687,585

$637,760
Accounts payable

$ 99,650

$ 119,580
Mortgage payable (15%)

199,300

199,300
Common stock, $10 par

279,020

239,160
Retained earnings

109,615

79,720

$687,585

Net income was $30,600.
2.

Sales on account were $377,000. Sales returns and allowances amounted to $26,600.
3.

Cost of goods sold was $201,000.
4.

Net cash provided by operating activities was $58,500.
5.

2014

2013
Current assets

Cash and cash equivalents

$330

$360
Accounts receivable (net)

545

475
Inventory

640

570
Prepaid expenses

130

160
Total current assets

1,645

1,565
Property, plant, and equipment (net)

410

380
Investments

85

85
Intangibles and other assets

530

510
Total assets

$2,670

$2,540
Current liabilities

$895

$865
Long-term liabilities

660

560
Stockholders’ equity—common

1,115

1,115
Total liabilities and stockholders’ equity

$2,670

2014

2013
Sales revenue

$3,980

$3,640
Costs and expenses

Cost of goods sold

1,045

965
Selling & administrative expenses

2,400

2,330
Interest expense

10

20
Total costs and expenses

3,455

3,315
Income before income taxes

525

325
Income tax expense

210

130
Net income

$ 315

Current ratio.
(b)

Inventory turnover. (Inventory on December 31, 2012, was $380.)
(c)

Profit margin.
(d)

Return on assets. (Assets on December 31, 2012, were $1,950.)
(e)

Return on common stockholders’ equity. (Equity on December 31, 2012, was $940.)
(f)

Debt to assets ratio.
(g)

You should see the following assignments that are due for a grade:
·
Chapter 4 – Excel assignment
NOTE:  Assignment must be completed by Due Date.  Automatic deduction of 50% of points if received after due date.  No points awarded if completed after 4 days from Due Date.

Excel Exercise 4-12
Excel Exercise 4-13
Excel Exercise 4-16
Excel Problem 4-1A

E4-12  Prepare a correct income statement
The income statement of Garska Co. for the month of July shows net income of $2,000
based on Service Revenue $5,500; Salaries and Wages $2,100; Supplies Expense $900;
and Utilities Expense $500.  In reviewing the statement, you discover the following:
1.         Insurance expired during July of $350 was omitted.
2.         Supplies expense includes $200 of supplies that are still on hand at July 31.
3.         Depreciation on equipment of $150 was omitted.
4.         Accrued but unpaid wages at July 31 of $360 were not included,
5.         Services performed but unrecorded totaled $700.

Instructions
Prepare a correct income statement for July 2014.
NOTE:  Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .

E4-13  Analyze adjusted data
This is a partial adjusted trial balance of Barone Company

BARONE COMPANY
Adjusted Trial Balance
January 31, 2014

Debit   Credit
Supplies                                   $700
Prepaid Insurance                               1,560
Salaries and Wages Payable                                        $1,060
Unearned Service Revenue                                         750
Supplies Expense                                950
Insurance Expense                              520
Salaries and Wages  Expense                          1,800
Service Revenue                                             4,000

Instructions
Answer these questions, assuming the year begins January 1.
(a)        If the amount in Supplies Expense is the January 31 adjusting entry, and
$300 of supplies was purchased in January, what was the balance in Supplies
on January 1?
(b)        If the amount in Insurance Expense is the January 31 adjusting entry, and the
original insurance premium was for 1 year, what was the total premium and
when was the policy purchased?
(c )       If $2,500 of salaries was paid in January, what was the balance in Salaries and
Wages Payable at December 31, 2013?
(d)       If $1,800 was received in January for services performed in January, what was
the balance in Unearned Service Revenue at December 31, 2013?
NOTE:  Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .

E4-16  Prepare adjusting entries from analysis of trial balance
The trial balance shown below are before and after adjustment for Bere Company at the end of its fiscal year.

BERE OMPANY
Trial Balance
August 31, 2014

Instructions
Prepare the adjusting entries that were made
NOTE:  Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .

1.         Cash    $2,291.1                      7.         Inventory        $2,357.0
2.         Accounts receivable    2,883.9                        8.         Income taxes payable  86.3
3.         Common stock            2,874.2                        9.         Equipment       1,957.7
4.         Notes payable 342.9               10.       Retained earnings       5,818.9
5.         Buildings         3,759.9                        11.       Accounts payable        2,815.8
6.         Mortgage payable       1,311.5

Cash    $4,600             Notes payable $12,000
Accounts receivable    4,000               Accounts payable        500
Service revenue           7,500               Supplies expense         1,000
Supplies           2,400               Maintenance and repairs expense       600
Advertising expense   400                  Utilities expense          300
Equipment       26,000             Salaries and wages expense    1,400
Common Stock           22,100

In June, the company issued no additional stock but paid dividends of $1,400.

$121,035
Accounts receivable

14,414
Prepaid insurance

3,661
Cash

13,545
Equipment

94,266
Land

70,013
Insurance expense

892
Depreciation expense

6,063
Interest expense

2,974
Common stock

68,640
Retained earnings (January 1, 2014)

45,760
Accumulated depreciation—buildings

52,166
Accounts payable

10,868
Notes payable

107,078
Accumulated depreciation—equipment

21,416
Interest payable

4,118
Service revenue

$ 868
Accounts receivable

918
Accumulated depreciation—equipment

670
Cash

1,378
Common stock

1,224
Cost of goods sold

1,094
Depreciation expense

301
Dividends

359
Equipment

2,528
Income tax expense

199
Income taxes payable

169
Insurance expense

244
Interest expense

434
Inventory

1,075
Land

3,208
Mortgage payable

3,608
Notes payable

169
Prepaid insurance

94
Retained earnings (beginning)

1,600
Salaries and wages expense

666
Salaries and wages payable

256
Sales revenue

5,208
Stock investments (short-term)

$34,462
Utilities expense

2,128
Equipment

69,462
Accounts payable

23,048
Cash

12,343
Salaries and wages payable

4,884
Common stock

12,000
Dividends

12,000
Service revenue

71,415
Prepaid insurance

5,384
Maintenance and repairs expense

1,672
Depreciation expense

3,189
Accounts receivable

16,448
Insurance expense

2,611
Salaries and wages expense

40,415
Accumulated depreciation—equipment