1. Prepare journal entries (including adjusting entries on December 31) for 2021 (and not for any...

 

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1. Prepare journal entries (including adjusting entries on December 31) for 2021 (and not for any future years), for each of the following transactions. Indicate the appropriate dates for each of your journal entries. None of the following entries have been included in the amounts shown on the previous financial statements (in computer problem #1 earlier this spring). Show all journal entries to the nearest PENNY (which means EVERY journal entry should have 2 decimals). 2. a. b. C. d. e. During the Christmas holiday season, your company had sales which included rebate forms which the customer had to mail to your company within 30 days of the sale. You paid $400 of rebates during December. On December 31, 2021, you estimated that $650 of additional rebates related to 2021 sales will be redeemed in 2022. Right before Christmas you received $520 in cash for products which will be delivered to the customers in 2022. On May 1, 2021, your company sold $30,000 of 6 year, 7% bonds when the market interest rate was 5%. These bonds pay interest semi-annually on October 31 and April 30 each year. Prepare the entries for May 1, October 31, and December 31 assuming your company uses the interest method of amortization. You may want to complete part 2 on the next page before you attempt these entries. On August 1, 2021, you paid $1,500 for rent on a copy machine for 9 months. This is an operating lease. On November 1, 2021, your company leased equipment TO another company. The lease was for four years and requires MONTHLY payments of $300,00 at the BEGINNING of each month for the next four years starting on November 1, 2021. The implicit interest rate was 9% and the incremental borrowing rate was 8% (and both rates were known). The lease includes a bargain purchase option of $500 at the end of the four year lease. The equipment cost the lessor $15,300, had a book value of $11,000, a 6 year remaining life and a $2,000 expected salvage value at the end of the 6 year life of the asset. Prepare the entries on November 1, December 1, and December 31, 2021. Collection of the lease payments is reasonably assured. Your company uses the straight-line method of depreciation and amortization on these items. Prepare an amortization schedule (similar to the ones in your textbook on page 14-11) for the entire term of the bonds in part "c." Your schedule should include columns for (a) the number for each of the twelve SEMIANNUAL payments, (b) the beginning carrying value each period, (c) the amount of the interest each 6-month period, (d) the amount of the cash payment each 6-month period, (e) the amount of amortization each 6-month period, and (f) the ending balance each 6-month period. All amounts in this schedule should be rounded to the nearest PENNY. Also please include a total amount at the bottom of the columns for the amount of the interest, the amount of payments, and the amount of the amortization. PRINT YOUR SCHEDULE. 1. Prepare journal entries (including adjusting entries on December 31) for 2021 (and not for any future years), for each of the following transactions. Indicate the appropriate dates for each of your journal entries. None of the following entries have been included in the amounts shown on the previous financial statements (in computer problem #1 earlier this spring). Show all journal entries to the nearest PENNY (which means EVERY journal entry should have 2 decimals). 2. a. b. C. d. e. During the Christmas holiday season, your company had sales which included rebate forms which the customer had to mail to your company within 30 days of the sale. You paid $400 of rebates during December. On December 31, 2021, you estimated that $650 of additional rebates related to 2021 sales will be redeemed in 2022. Right before Christmas you received $520 in cash for products which will be delivered to the customers in 2022. On May 1, 2021, your company sold $30,000 of 6 year, 7% bonds when the market interest rate was 5%. These bonds pay interest semi-annually on October 31 and April 30 each year. Prepare the entries for May 1, October 31, and December 31 assuming your company uses the interest method of amortization. You may want to complete part 2 on the next page before you attempt these entries. On August 1, 2021, you paid $1,500 for rent on a copy machine for 9 months. This is an operating lease. On November 1, 2021, your company leased equipment TO another company. The lease was for four years and requires MONTHLY payments of $300,00 at the BEGINNING of each month for the next four years starting on November 1, 2021. The implicit interest rate was 9% and the incremental borrowing rate was 8% (and both rates were known). The lease includes a bargain purchase option of $500 at the end of the four year lease. The equipment cost the lessor $15,300, had a book value of $11,000, a 6 year remaining life and a $2,000 expected salvage value at the end of the 6 year life of the asset. Prepare the entries on November 1, December 1, and December 31, 2021. Collection of the lease payments is reasonably assured. Your company uses the straight-line method of depreciation and amortization on these items. Prepare an amortization schedule (similar to the ones in your textbook on page 14-11) for the entire term of the bonds in part "c." Your schedule should include columns for (a) the number for each of the twelve SEMIANNUAL payments, (b) the beginning carrying value each period, (c) the amount of the interest each 6-month period, (d) the amount of the cash payment each 6-month period, (e) the amount of amortization each 6-month period, and (f) the ending balance each 6-month period. All amounts in this schedule should be rounded to the nearest PENNY. Also please include a total amount at the bottom of the columns for the amount of the interest, the amount of payments, and the amount of the amortization. PRINT YOUR SCHEDULE.

Answer rating: 100% (QA)

a December 31 2021 Debit Rebate Liability 65000Credit Unearned Revenue Rebates 65000 b December 31 2... View the full answer