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seropon [69]
2 years ago
14

Camden Biotechnology began operations in September 2013. The following selected transactions relate to liabilities of the compan

y for September 2013 through March 2014. Camden's fiscal year ends on December 31.Its financial statements are issued in April.2013a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $15,000,000 at the bank's prime rate (10.5% at the time). The company will pay no commitment fees.b. On October 1, borrowed $12 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 10% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note.c. Received $2,600 of refundable deposits in December for reusable containers used to transport and store chemical-based products.d. For the September-December period, sales on account totaled $4,100,000. The state sales tax rate is 3% and the local sales tax rate is 3%. (This is a summary journal entry for the many individual sales transactions for the period.)e. Recorded the adjusting entry for accrued interest.2014f. In February, issued $10 million of 10-year bonds at face value and paid the bank loan on the March 1 due date.g. Half of the storage containers covered by refundable deposits were returned in March. The remaining containers are expected to be returned during the next six months.Required:1. Prepare the appropriate journal entries for these transactions.2. Prepare the current and long-term liability sections of the December 31, 2013, balance sheet. Trade accounts payable on that date were $252,000.
Business
1 answer:
USPshnik [31]2 years ago
4 0

Answer:

Cash (Dr.) $12,000,000

Short term notes payable (Cr.) $12,000,000

Cash (Dr.) $2,600

Liability of refundable (Cr.) $2,600

Interest Expense (Dr.) $250,000

Interest Payable (Cr.) $250,000

Accounts receivable (Dr.) $4,100,000

Sales Revenue (Cr.) $3,977,000

Sales Tax Payable (Cr.) $123,000

Cash (Dr.) $10,000,000

Bond Payable (Cr.) $10,000,000

Explanation:

<u>Liability Schedule 2013,</u>

Accounts Payable $252,000

Current Portion of notes payable $2,000,000

Interest Payable $250,000

Sales tax Payable $123,000

Liability for refundable deposit $2,600

Total Current Liability $2,627,600

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You purchase another company for $50m. The company you purchase has assets with a fair value of $75m and liabilities with a fair
Crazy boy [7]

Answer:

b. $5m

Explanation:

If we purchase another company for $50m and the company you purchase has assets with a fair value of $75m and liabilities with a fair value of $30m. The amount of goodwill we should record in this transaction is: $5m

Goodwill upon acquisition of companies is derived by subtracting the fair value of NET ASSETS from the TOTAL CONSIDERATION (i.e the price paid to acquire the company)

In the scenario, the value of Net Assets is the value of the fairvalue of the assets less the fair value of the liabilities which is $75 - $30 = $45

While the Total Consideration = $50

Therefore Goodwill = $50m - $45m = $5m

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3 years ago
Which monarch prepares a speech which is broadcasted on Christmas Day?
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6 0
3 years ago
Which characteristics describe customers who are more likely to have high assets and medium-low debt?
Zielflug [23.3K]

Customers with credit cards with no balance are more likely to have high assets and medium-low debt.

<h3>What do you mean by Credit card?</h3>

A credit card is a small rectangular or metal piece of paper issued by a bank or financial services company, which allows cardholders to borrow money to pay for goods and services from merchants who accept cards to pay.

Customers who are more likely to have medium and low credit often use credit cards, but do not leave a balance. They also have a savings account and a retirement account.

Thus, Customers with have credit cards with no balance are more likely to have high assets and medium-low debt.

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7 0
2 years ago
Alice earned $12 per hour. What equation shows the relationship between her
LenaWriter [7]

<em><u>The equation shows the relationship between her  weekly salary (w), hours per week (h), and rate per hour (r) is:</u></em>

w = h \times r

<em><u>Solution:</u></em>

Given that,

Alice earned $12 per hour

1 hour = $ 12

<em><u>Find the number of hours in 1 week</u></em>

1 day = 24 hours

1 week = 7 days

Therefore,

1 week = 7 x 24 = 168 hours

Let "h" be the hours per week

let "r" be the rate per hour

Let "w" be the rate per hour

From given,

r = $ 12

h = 168 hours

weekly salary = hours per week x rate per hour

w = h \times r

w = 168 \times 12\\\\w = 2016

Thus, she earns $ 2016 for 1 week

5 0
3 years ago
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QPD Corporation discovered financial information about its prime competitor which it used to its advantage. QPD did not obtain t
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Corporation is the form of business that responsible for QPD’s knowledge of the details of its competitor’s financial situation.

<h3>What is cooperate business?</h3>

A cooperate business is a business that is owned and manage by group of individuals.

The members also use the product as well as the service.

Coporation gives members access to information which can be divulged to competitors by members.

Therefore, Corporation is the form of business that responsible for QPD’s knowledge of the details of its competitor’s financial situation.

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8 0
2 years ago
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