Which would you trade on a stock exchange? A.)shares B.)bonds C.)annuities

Exercise 14-13 Coronado, Inc. had outstanding $5,460,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years.

cupoosta [38]

Answer: Please see expalantion coumn for answer

Explanation:

1) To record issuance of bonds

Date Account Title Debit Credit

July 1 Cash $9,457,500

Discount on bond payable $292,500

Bond payable $9,750,000

Calculation:

Cash =$9,750,000 x 97% = $9,457, 500

Discount = $9, 750,000 - $9,457,500= $292,500

2)To record retirement of 11% bonds

Date Account Title Debit Credit

August 1st Bond payable $5,460,000

Loss on Redemption of bonds $218,400

Cash $5,569,200

Discount on Bonds payable $109,200

Calculation:

Cash =$5,460,000 x 102% = $5,569,200

Loss on Redemption of bonds = Cash + Discount on bonds payable - Bonds payable = $5,569,200 + $109,200) - $5,460,000= $218,400

7 0

4 years ago

The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31, 2010, its

REY [17]

Answer:

Dylan Delivery Company

1. 10-Column Worksheet (see attachment)

2. Closing Journal Entries at December 31, 2010:

Date Description Debit Credit

Depreciation expense - Truck 80,000

Salaries Expense 111,000

Office supplies expense 18,000

Repairs expense- trucks 15,000

Income Summary 224,000

To close expenses to the Income Summary.

Date Description Debit Credit

Income Summary 263,000

Delivery fees 263,000

To close revenue to the Income Summary.

Date Description Debit Credit

Net Income 39,000

Retained Earnings 39,000

To close the net income to retained earnings.

2b) Capital to be reported on balance sheet as at December 31, 2010:

S. Dylan Capital $307,000

Retained Earnings 39,000

S. Dylan withdrawals (34,000)

Net Capital $312,000

Explanation:

a) A 10-column worksheet is a tool used by accountants to close the temporary accounts, after necessary adjustments, and then extract a balance sheet. It comprises two columns (debit and credit) for each of the following: Unadjusted Trial Balance, Adjusting Entries, Adjusted Trial Balance, Income Statement, and Balance Sheet.

b) A closing entry is a journal entry that is made at the end of an accounting period to transfer balances from a temporary account to a permanent account. The four basic steps in the closing process are: Closing the revenue accounts—transferring the credit balances in the revenue accounts to a clearing account called Income Summary. Closing the expense accounts—transferring the debit balances in the expense accounts to a clearing account called Income Summary. Extracting a balance between the revenue accounts and the expense accounts, called the net income or loss. Closing the net income or loss to the Retained Earnings.

Download xlsx

5 0

3 years ago

Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 405,000 Beginning m

skelet666 [1.2K]

Missing information:

Fixed administrative expense $ 16,200 Variable selling expense $ 20,250 Variable administrative expense $ ? Contribution margin $ 81,000 Net operating income $ 24,300

1. Prepare a contribution format income statement.

2. Prepare a traditional format income statement.

3. Calculate the selling price per unit.

4. Calculate the variable cost per unit.

5. Calculate the contribution margin per unit.

Answer:

First we must determine cost of goods sold = $27,000 + $270,000 - $13,500 = $283,500

now we must find total variable costs = total sales - contribution margin = $405,00 - $81,000 = $324,000

variable administrative expenses = total variable costs - COGS - variable selling expense = $324,000 - $283,500 - $20,250 = $20,250

1. Prepare a contribution format income statement.

Total sales $405,000

Cost of goods sold $283,500

Gross contribution margin $121,500

Variable selling expense $20,250

Variable adm. expense $20,250

Contribution margin $81,000

Fixed period expenses:

Fixed selling expense $40,500
Fixed administrative expense $16,200

Net operating income $24,300

2. Prepare a traditional format income statement.

Total sales $405,000

Cost of goods sold $283,500

Gross profit $121,500

Operating expenses:

Selling expenses $60,750

Adm. expenses $36,450

Net operating income $24,300

3. Calculate the selling price per unit.

$405

4. Calculate the variable cost per unit.

$324

5. Calculate the contribution margin per unit.

$81

5 0

3 years ago

Photo Framing's cost formula for its supplies cost is $1,090 per month plus $19 per frame. For the month of November, the compan

Zepler [3.9K]

Answer:

Spending Variance $389 Unfavorable

Explanation:

The spending variance is the difference between the standard cost allowed for the actual level of activity and the actual cost incurred.

$

Standard allowance ($19× 609) + 1090 12,661

Actual cost 13,050

Spending Variance  389 Unfavorable

5 0

3 years ago

Read 2 more answers

Costco Wholesale Corporation collects annual non-refundable membership fees from customers. When should Costco recognize revenue

mixer [17]

Answer:

B. Evenly over the membership year

Explanation:

8 0

3 years ago