Accounting 2

Journal entries and transaction accounting

2

>

E

1

1-1

4

e

E

-14

-1

minutes]

:

Number

Date Payment

X

% X 1/

)

Principal

1

.30

,90

70

2

3

3,597.30

61

4

3,597.30

46

5

3,597.30

6

3,597.30

7

3,597.30

8

3,597.30

9

3,597.30

10

3,597.30

11

3,597.30

12

3,597.30

totals

1.

ize the note issuance and the reclassification of the current portion on

2.

3.

Journal
2013

Jan 1

Journal
DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT
2013

Journal
DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT
2013

Accounting, Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	9
11	Recording mortgage payable entries from an amortization schedule
LO 1 [	10	5
Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
	Date
Kaiser Company’s partial amortization schedule follows:
	Payment	Interest Expense (	Principal	6	12	Mortgage Balance
Loan	1/1/1	3	$ 500,000.00
1/31/13						3,59	7	2,500.00	1,097.30	49	8	2.
2/28/13						3,597.30	2,494.51	1,102.79	497,799.91
3/31/13	2,489.00	1,108.30	496,69	1.
4/30/13	2,48	3.	1,113.84	495,577.77
5/31/13	2,477.89	1,119.41	494,458.36
6/30/13	2,472.29	1,125.01	493,333.35
7/31/13	2,466.67	1,130.63	492,202.72
8/31/13	2,461.01	1,136.29	491,066.43
9/30/13	2,455.33	1,141.97	489,924.46
10/31/13	2,449.62	1,147.68	488,776.78
11/30/13	2,443.88	1,153.42	487,623.36
12/31/13	2,438.12	1,159.18	486,464.18
			2013	43,167.60	29,631.78	13,535.82
Requirements
			Journal
January 1, 2013 (explanations are not required).
What is the balance in Estimated warranty payable?
Journalize the second payment on February 28, 2013 (do not round).
Test Your Knowledge
E11-14
Req. 1
		DATE			ACCOUNTS AND EXPLANATIONS			DEBIT			CREDIT
	Jan 1
Req. 2
Jan 31
Req. 3
Feb 28

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E11-19

E11-19

izing bond transactions – year-end interest accrual

Filmore pays semiannual interest on March 31 and September 30.

.

2.

(do not round).

E11-19
Journal
2012

Journal
DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT
2012

Journal
DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

2013

Accounting, 9e

Journal

LO 3 [10 minutes]

Students please fill-in areas that are shaded

Student Name

Course Name

Student ID:

Date:

Filmore Homebuilders issued $250,000 of 8%, 10-year bonds at par on September 30,

201

2.

Requirements

1.

Journalize the issuance of the bonds payable on September 30,

2012

Journalize the accrual of interest on December 31, 2012.

3.

Journalize the second payment on February 28,

2013

Test Your Knowledge

Req. 1

DATE

ACCOUNTS AND EXPLANATIONS

DEBIT

CREDIT

Jan 1

Issued bonds at par.

Req. 2

Dec 31

Req. 3

Mar 31

&Lstudent.&Rdate
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E

12

-17

, Inc., authorizes the company to issue 100,000 shares of

12

.

E12-17
KCAS-TV
September 30, 2012
– 0

– 0
– 0
– 0

Accounting, 9e

E12-17

Issuing stock and preparing the stockholders’ equity section of the balance sheet

LO 3 [15-20 minutes]

Students please fill-in areas that are shaded

Student Name

Course Name

Student ID:

Date:

The charter for

KCAS-TV

$4, no-par preferred stock and 500,000 shares of common stock with $1 par value.

During its start-up phase, KCAS completed the following transactions:

Sept 6

Issued 275 shares of common stock to the promoters who organized the corporation,

receiving cash of $8,250.

Issued 400 shares of preferred stock for cash of $20,000.

14

Issued 1,600 shares of common stock in exchange for land valued at $18,000.

30

Closed net income of $32,000 into Retained earnings.

Requirements

1.

Record the transactions in the general journal.

2.

Prepare the stockholders’ equity section of the KCAS-TV balance sheet at

September 30, 2012

Test Your Knowledge

Req. 1

Journal

DATE

ACCOUNTS AND EXPLANATIONS

DEBIT

CREDIT

Sep 6

Sep 12

Sep 14

Sep 30

Req. 2

Stockholders’ Equity

Paid-in capital:

Preferred stock, no par, 100,000 shares

authorized, 400 shares issued

$

– 0

Total stockholder’s equity

$ – 0

&Lstudent name &Rdate here
Print Test Your Knowledge

E12-19

E12-19

, 201

8,000

5,000

, June 30, 2011

ize all required closing entries for the year.

2.

E12-19
Journal
June 30 Sales revenue
30 Income summary
Cost of goods sold
Depreciation expense
Rent expense
Salary expense
Utilities expense

30 Income summary

Retained earnings
30 Retained earnings
Dividends

114,000

114,000

Accounting, 9e

Calculating retained earnings

LO 4 [10-15 minutes]

Students please fill-in areas that are shaded

Student Name

Course Name

Student ID:

Date:

Oulette Publishing Company has the following selected account balances at

June

30

2.

Inventory

$ 112,000

Common stock, no par with $0.50

Machinery and equipment

10

8,000

stated value, 900 shares

Dividends

authorized and issued

450

Depreciation expense

9,000

Accumulated depreciation

61,000

Rent expense

19,000

Salary expense

8

5,000

Utilities expense

Retained earnings

114,000

Cost of goods sold

81,000

Sales revenue

240,000

Requirements

1.

Journal

Calculate the balance in Retained earnings at June 30, 2012. Use a T-account to

show your calculations.

Test Your Knowledge

Req. 1

DATE

ACCOUNTS AND EXPLANATIONS

DEBIT

CREDIT

Income summary

Close the revenue accounts

Close the expense accounts

Close the income summary.

Req. 2

Retained earings

Bal.

– 0

End Bal

&LJLM&Rapril
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P11-26A

P11-26A

izing and reporting bond transactions

, at par plus accrued interest.

.

2.

P11-26A
Journal
2012
2013

$ – 0

Accounting, 9e

Journal

LO 3, 4 [20-25 minutes]

Students please fill-in areas that are shaded

Student Name

Course Name

Student ID:

Date:

The board of directors of Delta Health Spa authorizes the issuance of $600,000 of

5%, 10-year bonds payable. The semiannual interest dates are May 31 and

November 30. The bonds are issued on July 31,

2012

Requirements

1.

Journalize the following transactions (Round your answers to the nearest whole

dollar.):

a.

Issuance of the bonds on July 31, 201

2.

b.

Payment of interest on November 30, 2012.

c.

Accrual of interest on December 31, 2012.

d.

Payment of interest on May 31,

2013

Report interest payable and bonds payable as they would appear on the Delta

balance sheet at December 31, 2012.

Test Your Knowledge

Req. 1

DATE

ACCOUNTS AND EXPLANATIONS

DEBIT

CREDIT

a. Jul 31

Issued bonds payable 2 months after the date of the bonds

b. Nov 30

c. Dec. 31

Accrued interest

d. May 31

Paid interest

Req. 2

Balance at December 31, 2012:

Current liabilities:

Interest payable

$ – 0

Long-term liabilities

Bonds payable

&L11-student&R4-23
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P11-27A

P11-27A

.

balance sheet, including

P11-27A
Route Maker Wireless
March 31, 2012

– 0

Accounting, 9e

Report liabilities on the balance sheet

LO 4 [10-15 minutes]

Students please fill-in areas that are shaded

Student Name

Course Name

Student ID:

Date:

Link Back to Chapter 4 (Classified Balance Sheet). The accounts of Taylor

Electronics Company are listed along with their balances before closing for the

month ended

March 31, 2012

Accounts payable

$ 76,000

Salary payable

$ 9,500

Mortgage note payable, long-term

80,000

Bonds payable, current installment

30,000

Interest payable

19,000

Premium on all bonds payable

Bonds payable, long-term

164,000

(all long-term)

11,000

Rory, capital

175,000

Unearned service revenue

3,000

Requirements

1.

Report these liabilities on the

Route Maker Wireless

headings and totals for current liabilities and long-term liabilities.

Test Your Knowledge

Req. 1

Balance Sheet (partial)

LIABILITIES

Current liabilities:

Total current liabilities

– 0

Long-term liabilities

Total long-term liabilities

Total liabilities

$ – 0

&Lstudent name here&Rdate here
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P12-2

9

A

izing corporate transactions and preparing the stockholders’ equity section of the balance sheet

needed additional capital to expand, so the business incorporated.

9

is $92,000.

P12-29A
Journal
Oct 2
6
9
B-Mobile Wireless
Retained earnings

Accounting, 9e

P12-29A

Journal

LO 3 [20-25 minutes]

Students please fill-in areas that are shaded

Student Name

Course Name

Student ID:

Date:

B-Mobile Wireless

The charter from the state of Georgia authorizes B-Mobile to issue 70,000 shares

of 5%, $100-par preferred stock, and 110,000 shares of no-par common stock.

B-Mobile completed the following transactions:

Oct 2

Issued 19,000 shares of common stock for equipment with a market value

of $110,000.

6

Issued 800 shares of preferred stock to acquire a patent with a market

value of $80,000.

Issued 15,000 shares of common stock for cash of $90,000.

Requirements

1.

Record the transactions in the general journal.

2.

Prepare the stockholders’ equity section of the B-Mobile balance sheet at

October 31. The ending balance of

Retained earnings

Test Your Knowledge

Req. 1

DATE

ACCOUNTS AND EXPLANATIONS

DEBIT

CREDIT

Issued common stock to acquire equipment.

Issued preferred stock to acquire patent.

Issued common stock.

Req. 2

Stockholders’ Equity

Paid-in capital:

Total paid-in capital

Total stockholder’s equity

$ – 0

&Lstudent name goes here&Rdate turned in goes here
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P12-30A

P12-30A

, was organized in 201

At

, the Lincoln-

December 31, 2011
1.

ize each transaction. Explanations are not required.

Issued for cash 1,300 shares of preferred stock at par value.

Issued for cash 2,400 shares of common stock at a price of $5 per share.

P12-30A
Journal
a.
b.
c.
LINCOLN-PRIEST, INC.
Stockholders’ Equity
Paid-in capital in excess of par – common

Total paid-in capital 41,000
Retained earnings

Accounting, 9e

Issuing stock and preparing the stockholders’ equity section of the balance sheet

LO 3 [15-20 minutes]

Students please fill-in areas that are shaded

Student Name

Course Name

Student ID:

Date:

Lincoln-Priest, In

c.

1.

December 31, 2011

Priest balance sheet reported the following stockholders’ equity:

LINCOLN-PRIEST, INC.

Stockholders’ Equity

Paid-in Capital:

Preferred stock, 7%, $40 par, 110,000 shares authorized, none issued

$0

Common stock, $1 par, 520,000 shares authorized, 61,000 shares issued

and outstanding

$61,000

Paid-in capital in excess of par – common

41000

Total paid-in capital

$102,000

Retained earnings

29000

Total stockholders’ equity

$131,000

Requirements

During 2012, the company completed the following selected transactions.

Journal

a.

b.

c. Net income for the year was $74,000, and the company declared no dividends.

Make the closing entry for net income.

2.

Prepare the stockholders’ equity section of the Lincoln-Priest balance sheet at

December 31, 2012.

Test Your Knowledge

Req. 1

DATE

ACCOUNTS AND EXPLANATIONS

DEBIT

CREDIT

Req. 2

Paid-in capital:

41,000

Total stockholder’s equity

$ 41,000

*61,000 + 2,400 = 63,400 shares

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