Write the journal entries to record next installment of bond

Assignment Help Financial Accounting
Reference no: EM13891148

Transaction analysis-various accounts Enter the following column headings across the top of a sheet of paper:





Noncurrent Stockholders'






Liabilities Equity



Enter the transaction/adjustment letter in the first column and show the effect, if any, of each transaction/adjustment on the appropriate balance sheet category or on net income by entering for each category affected the account name and amount, and in- dicating whether it is an addition (1) or a subtraction (-). Items that affect net income should not also be shown as affecting stockholders' equity. You may also write the journal entries to record each transaction/adjustment.

a. Income tax expense of $700 for the current period is accrued. Of the accrual, $200 represents deferred tax liabilities.

b. Bonds payable with a face amount of $5,000 are issued at a price of 99.

c. Of the proceeds from the bonds in part b, $3,000 is used to purchase land for future expansion.

d. Because of warranty claims, finished goods inventory costing $64 is sent to customers to replace defective products.

e. A three-month, 12% note payable with a face amount of $20,000 was signed. The bank made the loan on a discount basis.

f. The next installment of a long-term serial bond requiring an annual principal repayment of $35,000 will become due within the current year.

Reference no: EM13891148


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