Cookie batches had contamination they were returned 100000

Assignment Help Accounting Basics
Reference no: EM13569403

Journal Entries:

1. January 2: Smith sold 100,000 shares of common stock @ $10. The stock had a par value of $8

2. January 5: Smith collected $20,000 of prior accounts receivables by acquiring help from Jammie Nash.

3. January 5: Smith issued a bond (new bond) to raise the needed capital to enhance his company in Ozark, Missouri. The new bond is a five year 12%, $100,000 semi annual bond with an effective market rate of 10%. Payments are to be made semi-annually. The bond will be amortized using the effective interest method. Record the issuance of the new bond. Round to the nearest dollar.

4. February 4: Smith bought a new car to speed up delivery time. Smith bought the car outright for $20,000. The car is expected to have a useful life of 150,000 miles.

5. February 10: Smith bought $200,000 of inventory on account. The freight cost was $2,000. The terms were FOB Destination.

6. March 1: Smith paid off what he originally owed in accounts payable at the beginning of the year.

7. March 15: Smith paid income tax from last year.

8. April 1: Smith wrote off a $1,000 of accounts receivable that he knew that he would never be able to collect from Jack Ford. Record the write-off.

9. April 15: Smith sold on account $700,000 (2/10, n30) to city of Ozark. The cost of merchandise sold was $300,000

10. April 20: Cookie batches had contamination, they were returned. $100,000 of inventory was returned. The cost of merchandise sold was $40,000.

11. May 1: The city of Ozark paid Smith for the shipment of cookies in entry 9 and 10.

12. July 1: Smith made the third interest payment and amortized using the effective interest method on the old bond from January 1, 2012. This bond was a five year, semi annual bond with a face value of $100,000, effective market rate of 8%, and coupon rate of 6%. Payments are made semi-annual. Record the interest payment and the amortization. Round to the nearest dollar.

13. July 1: Smith made his first semi-annual interest payment on the new bond and amortized using effective interest method. Record the interest payment. Round to the nearest dollar.

14. July 1: Smith bought back 20,000 shares of treasury stock for $7 a share.

15. August 10: Smith paid the following expenses: Wage Exp $10,000, Rent Exp $20,000, Professional Fees $40,000, Sales Salary Exp $10,000, and Advertising Exp $60,000.

16. August 25: Ford was able to pay off the debt he owed to Smith. This was the debt Smith previously wrote off.

17. September 15: Smith declared dividends $50,000.

18. September 30: Smith sold 10,000 of the treasury stock with a cost $7 for $12 per share.

19. October 20: Smith paid off the entire Notes Payable which was due in 2015. The amount Smith paid included the face value of Note plus $10,000 of interest.

20. November 1: Smith paid off the Notes Payable due in December 2013. Smith paid full carrying value of the Note plus $500 of interest.

21. December 31: Smith made a semi annual interest payment on the old bond and amortized. Round to the nearest dollar.

22. December 31: Smith made a semi annual interest payment on the new bond and amortized. Round to the nearest dollar.

23. December 31: Smith paid the dividends previously declared.

Adjustments: At December 31, 2013, Smith made the following adjusting entries to update the books.

A1. At year end, it was estimated that 6% of the year end accounts receivable will not be collected.

A2. Smith accrued for 2013 income taxes which are to be paid March 15, 2014, $70,000

A3. Smith earned the remaining amount of unearned sales revenue in 2013.

A4. Smith incurred the following depreciation expenses for the year:

Equipment (10 year straight line bought in 2011)

Machinery (10 year double decline bought in 2011)

Car (driven 75,000 miles during the year)

Combine depreciation expense into one entry

A5. All prepaid expenses expired during the year.

A6. Office supplies were counted to $3,000 worth at year end.

A7. Accounts Receivables not recorded, $10,000

Closing Entries:

At December 31, 2013, the following closing entries were needed:

C1. & C2. Close all revenue and expense accounts.

C3. Close income summary to retained earnings.

C4. Close the Dividends account.

Reference no: EM13569403

Previous Q& A

  If all banks are insured by the fdic and thus are equally

if all banks are insured by the fdic and thus are equally risky will they be equally able to attract funds? if not and

  Why is understanding actual and budgeted costing as well as

why is understanding actual and budgeted costing as well as direct and indirect costs important for non-profit

  The curl up amp dye hair salon has died it must liquidate

the curl up amp dye hair salon has died. it must liquidate its assets. it has a building it must sell that originally

  Considering a project that will produce cash inflows of

considering a project that will produce cash inflows of 92000 a year for three years. then 60000 a year for four

  Prepare a 700 page paper that discusses the chain of

prepare a 700 page paper that discusses the chain of custody investigative processes plus forensic evidence to be

  The jurassic pork company has just bought a tract of land

the jurassic pork company has just bought a tract of land on which they plan to raise their pigs. while they were

  Where on the balance sheet would the account balance

the oklahoma a amp m aggies sell season tickets for four home football games at a price of 15. for the 2012 season 5000

  One criticism of psychological profiling is the tendency

needs to be 250 words with referencesq1. one criticism of psychological profiling is the tendency for police to believe

  Find the npv and pi of a project that costs 1500 and

1. find the npv and pi of a project that costs 1500 and returns 800 in year 1 and 850 in year 2. assume the projects

  Project risk and procurement management assessment brief

assessment brief 2500 word limit ltbrgt ltbrgtrisk management has become ever more important in planning organising and

Reviews

Write a Review

 

Similar Q& A

  Best possible internal control system

Even with the best possible internal control system in place, its effectiveness still depends on what?

  Should ace accept the outside suppliers offer

For this question, assume that if the chains are purchased outside, the facilities where the chains are currently made will be used to upgrade the bicycles by adding mud flaps and reflector bars

  Determin the consolidated net income

Without regard for this investment, Keefe earns $300,000 in net income during 2006. What is consolidated net income for 2006?

  Dorantes manufacturing company uses a standard cost system

dorantes manufacturing company uses a standard cost system. in2010 28000 units were produced. each unit took several

  Batista corporation has been incorporated for 30 years its

batista corporation has been incorporated for 30 years. its current paid-in capital is shown to the right. batista has

  Determine profitability of customer class using activity

Carbon Company has two classes of customers designated as C Classand D Class. Determine the profitability of each customer class using the activity information.

  Notes payable and accured interest

Mikor has an account payable of 7,700$ due to Smiley Inc. one of its suppliers. The amount was due to be paid on October 15, 2007. Use the horizontal model, or write the journal entry to show the effect of :

  During the current year the harlow corporation which

during the current year the harlow corporation which specializes in commercial construction has the following property

  Explain why the management of regis steel division would

raddington industries produces tools and die machinery for various manufacturers. 2 years ago the company expanded

  Why is data security important now more than ever

Why is data security important now more than ever? What are some of the steps that we can take to ensure that our database is protected and secure? How can you use user views to enhance security and restrict access?

  The following data regarding purchases and sales of

the following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account

  Barbara is considering investing in a stock and is aware

barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd