A company incurred the following transactions: Income tax expense of $1,400 for the current period is accrued.
Question:
A company incurred the following transactions:
Income tax expense of $1,400 for the current period is accrued. Of the accrual, $400 represents deferred tax liabilities.
Bonds payable with a face amount of $15,000 are issued at a price of 98.
Of the proceeds from the bonds in part b, $9,000 is used to purchase land for future expansion.
Because of warranty claims, finished goods inventory costing $128 is sent to customers to replace defective products.
A three-month, 9% note payable with a face amount of $60,000 was signed. The bank made the loan on a discount basis.
The next installment of a long-term serial bond requiring an annual principal repayment of $70,000 will become due within the current year.
5.
value:
10.00 points
Required information
Required:
a-1. Show the effect, if any, of each transaction/adjustment on the appropriate balance sheet category or on net income by selecting for each category affected the account name and amount, and indicating whether it is an addition (+) or a subtraction (–). Items that affect net income should not also be shown as affecting stockholders' equity.
Expert Answer:
Transaction No Assets Liabilities Stockholders equity Net income 1 Income tax payable ... View the full answer
