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mamaluj [8]
3 years ago
5

PB10-2 Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio [LO 10-2, LO 10-5] Tig

er Company completed the following transactions. The annual accounting period ends December 31. Jan. 3 Purchased merchandise on account at a cost of $24,000. (Assume a perpetual inventory system.) Jan. 27 Paid for the January 3 purchase. Apr. 1 Received $80,000 from Atlantic Bank after signing a 12-month, 5 percent promissory note. June 13 Purchased merchandise on account at a cost of $8,000. July 25 Paid for the June 13 purchase. July 31 Rented out a small office in a building owned by Tiger Company and collected eight months’ rent in advance amounting to $8,000. Dec. 31 Determined wages of $12,000 were earned but not yet paid on December 31 (Ignore payroll taxes). Dec. 31 Adjusted the accounts at year-end, relating to interest. Dec. 31 Adjusted the accounts at year-end, relating to rent. Required: 1. & 2. Prepare journal entries for each of the transactions through August 1 and any adjusting entries required on December 31. 3. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31.

Business
1 answer:
Kipish [7]3 years ago
3 0

Complete Question:

PB10-2 Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio [LO 10-2, LO 10-5]

Tiger Company completed the following transactions. The annual accounting period ends December 31.

Jan. 3 Purchased merchandise on account at a cost of $24,000. (Assume a perpetual inventory system.) Jan.

27 Paid for the January 3 purchase.

Apr. 1 Received $80,000 from Atlantic Bank after signing a 12-month, 5 percent promissory note.

June 13 Purchased merchandise on account at a cost of $8,000.

July 25 Paid for the June 13 purchase.

July 31 Rented out a small office in a building owned by Tiger Company and collected eight months’ rent in advance amounting to $8,000.

Dec. 31 Determined wages of $12,000 were earned but not yet paid on December 31 (Ignore payroll taxes).

Dec. 31 Adjusted the accounts at year-end, relating to interest.

Dec. 31 Adjusted the accounts at year-end, relating to rent.

Required:

1. & 2. Prepare journal entries for each of the transactions through August 1 and any adjusting entries required on December 31.

3. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31.

Answer:

Prepared journal Entries for Questions 1, 2 and 3 are attached as images in this order

1 Journal Entry Worksheet 1 (image 1)

2 Journal Entry Worksheet 1 (image 2)

3 Journal Entry Balance sheet 1 (image 3)

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2 years ago
Scott Corporation produces a part for use in the production of one of its products. The per-unit costs associated with the annua
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It is cheaper to buy the part. The company will save $5,000.

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First, we need to calculate the total cost of making the units:

Total cost= (10.5 + 24 + 5.5)*1,000 + 7,000= $47,000

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If we were able to invest a Gradient = $100 at the end of each year for 7 years at 6% interest (i.e., So at the end of year 1, $
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Answer:

We can withdraw an equivalent annuity of  $ 293.658 each year.

Explanation:

We build a scheduled table to know the future value of the gradient investment

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1  $100.00   $100.00  $100.00           0.060   $106.00

2  $106.00   $100.00   $206.00   0.060   $218.36

3  $218.36   $200.00   $418.36   0.060   $443.46

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6  $1,259.36   $500.00   $1,759.36   0.060   $1,864.92

7  $1,864.92   $600.00   $2,464.92   0.060   $2,612.81

Then, we solve for the equivalent annuity-due:

PV \div \frac{1-(1+r)^{-time} }{rate}(1+rate) = C\\

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time 7

rate 0.06

2612.81 \div \frac{1-(1+0.06)^{-7} }{0.06}(1+0.06) = C\\

C  $ 293.658

Itis annuity due as we will going to retire cash in a 6 year period for  seven times. (at each year-end during 6 years thus, annuity-due

1st      2nd     3rd   4th    5th    6th   7th

/-------/-------/-------/-------/-------/-------/-------/

         1       2       3        4      5        6       7

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