adjusting entry, assuming the expenditures are inventory costs. Brief
Exercise 14-3 The Skysong Company issued $260,000 of 10% bonds on
January 1, 2017. The bonds are due January 1, 2022, with interest
payable each July 1 and January 1. The bonds were issued at 98. Prepare
the journal entries for (a) January 1, (b) July 1, and (c) December 31.
Assume The Skysong Company records straight-line amortization
semiannually. Brief Exercise 14-12 Vaughn Corporation issued a 4-year,
$55,000, 5% note to Greenbush Company on January 1, 2017, and
received a computer that normally sells for $44,762. The note requires
annual interest payments each December 31. The market rate of interest
for a note of similar risk is 11%. Prepare Vaughn’s journal entries for (a)
the January 1 issuance and (b) the December 31 interest. Multiple
Choice Question 99 On June 30, 2018, Sheridan Co. sold equipment to
an unaffiliated company for $2250000. The equipment had a book value
of $1205000 and a remaining useful life of 10 years. That same day,
Sheridan leased back the equipment at $12500 per month for 5 years
with no option to renew the lease or repurchase the equipment.
Sheridan’s rent expense for this equipment for the year ended December
31, 2018, should be
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ACC 422 Final Exam Guide 1
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1. Kraft Enterprises owns the following assets at December 31, 2012.
Cash in bank–savings account 67,516
Checking account balance
26,445 Cash on hand 9,478
Postdated checks
753 Cash
refund due from IRS 40,324
Certificates of deposit (180-day)
94,754 What amount should be reported as cash? Question 2
Presented below is information related to Rembrandt Inc.’s inventory.
(per unit)
Skis
Boots