Describe the recording procedures for the issuance, retirement, and payment of interest for installment notes.3. On...

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Describe the recording procedures for the issuance, retirement, and payment of interest for installment notes.3. On January 1, 2009, the Plimpton Corporation leased some equipment on a 2-year lease, paying $15,000 per year each December 31. The lease is considered to be an operating lease. Prepare the general journal entry to record the first lease payment on December 31, 2009. 4. Martin Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1, 2009. Interest is payable each June 30 and December 31. (a) Prepare the general journal entry to record the issuance of the bonds on January 1, 2009. (b) Prepare the general journal entry to record the first interest payment on June 30, 2009. 5. A company issued 9.2%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date was 10%, and the issuer received $95,016 cash for the bonds. On the first semiannual interest date, what amount of cash should be paid to the holders of these bonds for interest? 6. A company paid $500,000 for 12% bonds with a par value of $500,000. The bonds pay 6% interest semiannually on September 1 and March 1. The company intends to hold the bonds until they mature. Prepare the journal entries for the following dates and transactions related to this bond acquisition. (1) Bonds purchased on September 1, 2009. (2) Year-end adjusting entry, December 31, 2009. (3) Receipt of semiannual interest March 1, 2010. (4) Redemption of the bonds at maturity on August 31, 2019. 7. On April 1 of the current year, a company paid $150,000 to purchase 7%, 10-year bonds that had a par value of $150,000 and paid interest semiannually on October 1 and April 1. The company intends to hold the bonds until they mature. Prepare the journal entry to record the receipt of the semiannual interest payment on April 1 of the following year. 8. A company reported net income of $100,000 and average total assets of $425,000. Calculate its return on total assets. 9. A company had net income of $450,000 in 2009 and $620,000 in 2010. The company had average total assets of $2,500,000 in 2009 and $3,000,000 in 2010. Calculate the return on total assets for 2009 and 2010. Comment on the results. 10. A company reported net income for 2009 of $98,000 and $106,000 in 2010. It also reported net sales of $735,000 in 2009 and $798,000 in 2010. The company's average total assets in 2009 were $1,850,000 and $1,720,000 in 2010. Calculate this company's profit margin, total asset turnover, and return on total assets for 2009 and 2010. Comment on the results. 11. A company reported net income for Year 1 of $98,000 and $106,000 for Year 2. It also reported net sales of $835,000 in Year 1 and $918,000 in Year 2. The company's average total assets in Year 1 were $1,850,000 and $1,720,000 in Year 2. Calculate the company's profit margin, total asset turnover and return on total assets for Year 1 and Year 2. Did the company's return on total assets improve? What component(s) might explain this change? 12. A company had net income of $86,000 in Year 1 and $118,000 in Year 2. Its net sales were $640,000 in Year 1 and $611,000 in Year 2. Its average total assets in Year 1 were $1,670,000 and $1,712,000 in Year 2. Calculate the profit margin, total asset turnover and return on total assets for both years. Comment on the results. Describe the recording procedures for the issuance, retirement, and payment of interest for installment notes.3. On January 1, 2009, the Plimpton Corporation leased some equipment on a 2-year lease, paying $15,000 per year each December 31. The lease is considered to be an operating lease. Prepare the general journal entry to record the first lease payment on December 31, 2009. 4. Martin Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1, 2009. Interest is payable each June 30 and December 31. (a) Prepare the general journal entry to record the issuance of the bonds on January 1, 2009. (b) Prepare the general journal entry to record the first interest payment on June 30, 2009. 5. A company issued 9.2%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date was 10%, and the issuer received $95,016 cash for the bonds. On the first semiannual interest date, what amount of cash should be paid to the holders of these bonds for interest? 6. A company paid $500,000 for 12% bonds with a par value of $500,000. The bonds pay 6% interest semiannually on September 1 and March 1. The company intends to hold the bonds until they mature. Prepare the journal entries for the following dates and transactions related to this bond acquisition. (1) Bonds purchased on September 1, 2009. (2) Year-end adjusting entry, December 31, 2009. (3) Receipt of semiannual interest March 1, 2010. (4) Redemption of the bonds at maturity on August 31, 2019. 7. On April 1 of the current year, a company paid $150,000 to purchase 7%, 10-year bonds that had a par value of $150,000 and paid interest semiannually on October 1 and April 1. The company intends to hold the bonds until they mature. Prepare the journal entry to record the receipt of the semiannual interest payment on April 1 of the following year. 8. A company reported net income of $100,000 and average total assets of $425,000. Calculate its return on total assets. 9. A company had net income of $450,000 in 2009 and $620,000 in 2010. The company had average total assets of $2,500,000 in 2009 and $3,000,000 in 2010. Calculate the return on total assets for 2009 and 2010. Comment on the results. 10. A company reported net income for 2009 of $98,000 and $106,000 in 2010. It also reported net sales of $735,000 in 2009 and $798,000 in 2010. The company's average total assets in 2009 were $1,850,000 and $1,720,000 in 2010. Calculate this company's profit margin, total asset turnover, and return on total assets for 2009 and 2010. Comment on the results. 11. A company reported net income for Year 1 of $98,000 and $106,000 for Year 2. It also reported net sales of $835,000 in Year 1 and $918,000 in Year 2. The company's average total assets in Year 1 were $1,850,000 and $1,720,000 in Year 2. Calculate the company's profit margin, total asset turnover and return on total assets for Year 1 and Year 2. Did the company's return on total assets improve? What component(s) might explain this change? 12. A company had net income of $86,000 in Year 1 and $118,000 in Year 2. Its net sales were $640,000 in Year 1 and $611,000 in Year 2. Its average total assets in Year 1 were $1,670,000 and $1,712,000 in Year 2. Calculate the profit margin, total asset turnover and return on total assets for both years. Comment on the results.

Answer rating: 100% (QA)

Answer and Explanation 1 For the recording procedures for the issuance of installment notes the following journal entry should be made Debit Cash amount received from issuing the notes Credit Installm... View the full answer