Exercises and Problems- Financial Accounting

Jan 13th, 2015
Steve1995
Category:
Accounting
Price: $30 USD

Question description

Week 4 assignment:Financial_Accounting_7e_Ch10.pdf 

·  do problems 1, 2 and 3 (see below)

·  Resource: Ch. 10 of your text.

·  Submit  a Microsoft® Excel® document

Problem #1 -- Entries for payroll and payroll taxes

The following information about the payroll for the week ended December 30 was obtained from the records of Arnsparger Equipment Co.:

Tax rates assumed:

  Social security, 6%

  Medicare, 1.5%

  State unemployment (employer only), 4.5%

  Federal unemployment (employer only), 0.8%

Instructions

Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries:

a. December 30, to record the payroll.

b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $30,000 is subject to unemployment compensation taxes.

----------------------------------------------------------------------------------------------------------------------------------------

Problem #2 -- Present value of bonds payable; discount

Baliga Co. produces and sells high-quality audio equipment. To finance its operations, Baliga Co. issued $18,000,000 of five-year, 8% bonds with interest payable semiannually at a market (effective) interest rate of 10%.

a.  Determine the present value of the bonds payable, using the present value tables in Chapter 10 of your text. Round to the nearest dollar.

b.  Illustrate the General Journal entry that would be made to record the issuance of the bonds.

Problem #3 --  Bond discount, entries for bonds payable transactions, interest method of amortizing bond discount

On July 1, 2012, Bliss Industries, Inc. issued $24,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $22,194,444.43. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Instructions

1.  Journalize the entry to record the amount of cash proceeds from the sale of the bonds

2.  Prepare an amortization table for at least 3 interest periods for this bond issue.

3.  Journalize the entries to record the following:

a.  The first semiannual interest payment on December 31, 2012, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.)

b.  The interest payment on June 30, 2013, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.)

4.  Determine the total interest expense for 2012.


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UT Austin
PREMIUM TUTOR

Studypool has helped 1,244,100 students

8 Reviews


Summary
Quality
Communication
On Time
Value
pmallory
Dec 3rd, 2016
" Totally impressed with results!! :-) "
mixedballz
Nov 24th, 2016
" excellent work as always thanks for the help "
Five Star Tutor
Nov 22nd, 2016
" Outstanding Job!!!! "
kiln82
Nov 10th, 2016
" awesome work thanks "
darnay
Nov 1st, 2016
" The best tutor out there!!!! "
likeplum4
Oct 28th, 2016
" Excellent work as usual "
kpcutie
Oct 5th, 2016
" Excellent job "
Joemoe
Sep 26th, 2016
" <3 it, thanks for saving me time. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1821 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors