Brief Exercise 10-3
Compute sales taxes payable.
|Sales tax payable||$|
Make the entry to record sales taxes payable and sales. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Brief Exercise 10-8
Brief Exercise 10-10
Rooney Corporation issued 3,920 9%, 6-year, $1,000 bonds dated January 1, 2014, at face value. Interest is paid each January 1.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(b) Prepare the adjusting journal entry on December 31, 2014, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(c) Prepare the journal entry on January 1, 2015, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Brief Exercise 10-12
|Bonds payable (due 2018)||$778,300|
|Notes payable (due 2016)||76,540|
|Discount on bonds payable||24,700|
Prepare the long-term liabilities section of the balance sheet for Evenson Inc.
Brief Exercise 10-14
|Current assets||$4,557||Interest expense||$170|
|Total assets||8,345||Income taxes||102|
|Current liabilities||3,011||Net income||254|
Compute the following values.
|(b)||Current ratio (Round to 2 decimal places, e.g. 6.25:1.)||:1|
|(c)||Debt to assets ratio (Round to 0 decimal places, e.g. 62%.)||%|
|(d)||Times interest earned (Round to 2 decimal places, e.g. 6.25.)||times|
Exercise 10-1 (Part Level Submission)
Exercise 10-3 (Part Level Submission)
Exercise 10-4 (Part Level Submission)
|1.||Furcal Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $28,000 and sales taxes $1,400.|
|2.||Crystal Company does not segregate sales and sales taxes. Its register total for April 15 is $19,620, which includes a 9% sales tax.|
Prepare the entries to record the sales transactions and related taxes for Crystal Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Exercise 10-6 (Part Level Submission)
Problem 10-2A (Part Level Submission)
|Sept. 1||Issued a $13,200 note to Lippert to purchase inventory. The 3-month note payable bears interest of 6% and is due December 1. (Ermlar uses a perpetual inventory system.)|
|Sept.30||Recorded accrued interest for the Lippert note.|
|Oct. 1||Issued a $19,200, 10%, 4-month note to Shanee Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1.|
|Oct. 31||Recorded accrued interest for the Lippert note and the Shanee Bank note.|
|Nov. 1||Issued a $25,200 note and paid $7,600 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 7% and matures in 12 months.|
|Nov. 30||Recorded accrued interest for the Lippert note, the Shanee Bank note, and the vehicle note.|
|Dec. 1||Paid principal and interest on the Lippert note.|
|Dec. 31||Recorded accrued interest for the Shanee Bank note and the vehicle note.|
Prepare journal entries for the transactions noted above.
(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Show the balance sheet presentation of notes payable and interest payable at December 31.
How much interest expense relating to notes payable did Ermlar incur during the year?
Do It! Review 10-1
You and several classmates are studying for the next accounting examination. They ask you to answer the following questions: (Round answers to 0 decimal places, e.g. $62,482.)
|1.||If cash is borrowed on a $69,400, 10-month, 10% note on August 1, how much interest expense would be incurred by December 31?|
|2.||The cash register total including sales taxes is $42,210, and the sales tax rate is 5%. What is the sales taxes payable?|
|3.||If $42,210 is collected in advance on November 1 for 8-month magazine subscriptions, what amount of subscription revenue should be recognized on December 31?|
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