Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, Roley purchased $ 66,000 of inventory, terms 2 / 10, n / 30, FOB shipping point. Roley paid freight costs of $ 1,210. On July 3, Roley returned damaged goods and received credit of $ 6,600. On July 10, Roley paid for the goods. Prepare all necessary journal entries for Roley.
Question 27 Takemoto Corporation borrowed $ 93,000 on November 1, 2012, by signing a $ 95,093, 3-month, zero-interest-bearing note. Prepare Takemoto’ s November 1, 2012, entry; the December 31, 2012, annual adjusting entry; and the February 1, 2013, entry.( For multiple debit / credit en tries, list amounts from largest to smallest, e. g. 10, 8, 6. Round all answers to 0 decimal places, e. g. 11,150.)
Question 28 Whiteside Corporation issues $ 629,000 of 9 % bonds, due in 14 years, with interest payable semiannually. At the time of issue, the annual market rate for such bonds is 10 %. Compute the issue price of the bonds.( Use the present value tables in the text.
Question 29 Indiana Jones Company enters into a 6-year lease of equipment on January 1, 2012, which requires 6 annual payments of $ 37,560 each, beginning January 1, 2012. In addition, the lessee guarantees a residual value of $ 20,870 at lease-end. The equipment has a useful life of 6 years. Assume that for Lost Ark Company, the lessor, collectibility is reasonably predictable, there are no important uncertainties concerning costs, and the carrying amount of the machinery is $ 191,722. Prepare Lost Ark’ s January 1, 2012, journal entries.
Question 30 On January 1, 2012, Irwin Animation sold a truck to Peete Finance for $ 26,050 and immediately leased it back. The truck was carried on Irwin’ s books at $ 20,800. The term of the lease is 5 years, and title transfers to Irwin at lease-end. The lease requires five equal rental