Question: Transaction analysis various accounts Enter the following column headings across the

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

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 indicating whether it is an addition (+) 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. Recorded the financing (capital) lease of a truck. The present value of the lease payments is $65,000; the total of the lease payments to be made is $78,000.
b. Recorded the company's payroll for the month. Gross pay was $7,200, net pay was $5,100, and various withholding liability accounts were credited for the difference.
c. Issued $21,000 of bonds payable at a price of 103.
d. Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $4,200.
e. Retired bonds payable with a carrying value of $12,000 by calling them at a redemption value of 101.
f. Accrued estimated health care costs for retirees; $18,000 is expected to be paid within a year, and $155,000 is expected to be paid in more than ayear.

Sale on SolutionInn
  • CreatedOctober 05, 2013
  • Files Included
Post your question