Question

Listed below are eight events or transactions of GemStar Corporation.
a. Made an adjusting entry to record interest on a short-term note payable.
b. Made a monthly installment payment of a fully amortizing, six-month, interest-bearing installment note payable.
c. Recorded a regular biweekly payroll, including the amounts withheld from employees, the issuance of paychecks, and payroll taxes on the employer.
d. Came within 12 months of the maturity date of a note payable originally issued for a period of
18 months.
e. Deposited employee tax withholdings with proper tax authorities.
f. Issued bonds payable at face value.
g. Recognized semiannual interest expense on bonds payable described in part f and paid bond-holders the full interest amount.
h. Recorded the necessary adjusting entry on December 31, 2011, to accrue three months’ interest on bonds payable that had been issued at a discount several years prior. The next
Semiannual interest payment will occur March 31, 2012.
Indicate the effects of each of these transactions on the following financial statement categories.
Organize your answer in tabular form, using the illustrated column headings. Use the following code letters to indicate the effects of each transaction on the accounting element listed in the column heading: I for increase, D for decrease, and NE for noeffect.


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  • CreatedApril 17, 2014
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