ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 134

1)
Teton Corporation issued $704,000 of 9% bonds on November
1, 2014, for $745,018. The bonds were dated November 1, 2014, and
mature in 8 years, with interest payable each May 1 and November 1.
Teton uses the effective-interest method with an effective rate of 8%.
Prepare Teton’s December 31, 2014, adjusting entry. (Round answers
to 0 decimal places, e.g. 38,548. If no entry is required, select "No
Entry" for the account titles and enter 0 for the amounts. Credit
account titles are automatically indented when amount is entered. Do
not indent manually.)
2)
On January 1, 2014, Henderson Corporation redeemed
$572,100 of bonds at 97. At the time of redemption, the unamortized
premium was $17,163 and unamortized bond issue costs were $5,721.
Prepare the corporation’s journal entry to record the reacquisition of
the bonds. (If no entry is required, select "No Entry" for the account
titles and enter 0 for the amounts. Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
3) Shlee Corporation issued a 5-year, $70,300, zero-interest-
bearing note to Garcia Company on January 1, 2014, and received
cash of $70,300. In addition, Shlee agreed to sell merchandise to
Garcia at an amount less than regular selling price over the 5-year
period. The market rate of interest for similar notes is 12%.
Prepare Shlee Corporation’s January 1 journal entry. (Round
answers to 0 decimal places, e.g. 38,548. If no entry is required,
select "No Entry" for the account titles and enter 0 for the amounts.
Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
4)
The following items are found in the financial statements.
Indicate how each of these items should be classified in the financial
statements.