1. ACC 422 Week 4 WileyPlus Ex 13-2, Ex 13-7, Ex 13-16, Ex
14-4, Ex 14-6, Ex 14-9, Problem 14-2 (With Excel File)
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ACC 422 Week 4 WileyPlus Ex 13-2, Ex 13-7, Ex 13-16, Ex 14-4, Ex 14-6,
Ex 14-9, Problem 14-2 (With Excel File) NEW
Complete the following assignments in WileyPLUS:
• Exercise 13-2 (Part Level Submission)
• Exercise 13-7 (Part Level Submission)
• Exercise 13-16
• Exercise 14-4
• Exercise 14-6
• Exercise 14-9 (Part Level Submission)
• Problem 14-2 (Part Level submission)
Exercise 13-2 (Part Level Submission)
2. The following are selected 2017 transactions of Riverbed Corporation.
Sept. 1 Purchased inventory from Encino Company on account for $43,600.
Riverbed records purchases gross and uses a periodic
inventory system.
Oct. 1 Issued a $43,600, 12-month, 8% note to Encino in payment of
account.
Oct. 1 Borrowed $43,600 from the Shore Bank by signing a 12-month,
zero-interest-bearing $48,600 note.
Prepare journal entries for the selected transactions above.
Prepare adjusting entries at December 31.
Compute the total net liability to be reported on the December 31
balance sheet for:
Exercise 13-7 (Part Level Submission)
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Pharoah Hardware Company's payroll for November 2017 is
summarized below.
At this point in the year, some employees have already received
wages in excess of those to which payroll taxes apply. Assume that
the state unemployment tax is 2.5%. The FICA rate is 7.65% on an
employee's wages to $118,500 and 1.45% in excess of $118,500. Of
the $194,300 wages subject to FICA tax, $21,300 of the sales wages is
in excess of $118,500. Federal unemployment tax rate is 0.8% after
credits. Income tax withheld amounts to $16,800 for factory, $7,700
for sales, and $6,800 for administrative.
Exercise 13-16
Presented below is a list of possible transactions.
3. Analyze the effect of the 18 transactions on the financial statement
categories indicated.
1. Purchased inventory for $80,000 on account (assume perpetual
system is used).
2. Issued an $80,000 note payable in payment on account (see item 1
above).
3. Recorded accrued interest on the note from item 2 above.
4. Borrowed $100,000 from the bank by signing a 6-month, $112,000,
zero-interest-bearing note.
5. Recognized 4 months' interest expense on the note from item 4
above.
6. Recorded cash sales of $75,260, which includes 6% sales tax.
7. Recorded wage expense of $35,000. The cash paid was $25,000; the
difference was due to various amounts withheld.
www. acc422entirecourse
.com 8. Recorded employer's payroll taxes.
9. Accrued accumulated vacation pay.
10. Recorded an asset retirement obligation.
11. Recorded bonuses due to employees.
12. Recorded a contingent loss on a lawsuit that the
company will
probably lose.
13. Accrued warranty expense (assume expense
warranty approach).
14. Paid warranty costs that were accrued in item 13
above.
15. Recorded sales of product and related service-
type warranties.
16. Paid warranty costs under contracts from item 15
above.
17. Recognized warranty revenue (see item 15
above).
4. Exercise 14-4
Ivanhoe Company issued $444,000 of 10%, 20-year bonds on January 1, 2017, at
104. Interest is payable semiannually on July 1 and January 1. Ivanhoe Company
uses the straight-line method of amortization for
bond premium or discount.
Prepare the journal entries to record the following. (If no entry is required, select
"No Entry" for the account titles and enter 0 for the amounts. Credit account
titles are automatically indented when amount is entered. Do not indent
manually.)
(a) The issuance of the bonds.
(b) The payment of interest and the related amortization on July 1,
2017.
(c) The accrual of interest and the related amortization on December
31, 2017.
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Exercise 14-6
Culver Company sells 9% bonds having a maturity value of $2,050,000 for
$1,828,314. The bonds are dated January 1, 2017, and mature January 1, 2022.
Interest is payable annually on January 1.
Prepare the journal entries to record the following transactions.
(Round answer to 0 decimal
Exercise 14-9 (Part Level Submission)
On June 30, 2017, Monty Company issued $3,200,000 face value of 13%, 20-year
bonds at $3,440,734, a yield of 12%. Monty uses the effective-interest method to
amortize bond premium or discount. The bonds pay semiannual interest on June
30 and December 31.
5. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required,
select "No Entry" for the account titles and enter 0 for the amounts.
Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
(1) The issuance of the bonds on June 30, 2017.
(2) The payment of interest and the amortization of the premium on
December 31, 2017.
(3) The payment of interest and the amortization of the premium on
June 30, 2018.
(4) The payment of interest and the amortization of the premium on
December 31, 2018.
Set up a schedule of interest expense and discount amortization
under the straight-line method.
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(b)
Show the proper balance sheet presentation for the liability for bonds
payable on the December 31, 2018, balance sheet.
(1) What amount of interest expense is reported for 2018? (Round
answer to 0 decimal places, e.g. 38,548.)
Interest expense reported for 2018
(2) Will the bond interest expense reported in 2018 be the same as,
greater than, or less than the amount that would be reported if the
straight-line method of amortization were used?
The bond interest expense reported in 2018 will be
6. (3) Determine the total cost of borrowing over the life of the bond.
(Round answer to 0 decimal places, e.g. 38,548.)
Total cost of borrowing over the life of the bond
(4) Will the total bond interest expense for the life of the bond be
greater than, the same as, or less than the total interest expense if the
straight-line method of amortization were used?
The total bond interest expense for the life of the bond will be Problem
14-2 (Part Level Submission)
Swifty Co. is building a new hockey arena at a cost of $2,310,000. It
received a downpayment of $490,000 from local businesses to support
the project, and now needs to borrow $1,820,000 to complete the
project. It therefore decides to issue $1,820,000 of 12%, 10-year bonds.
These bonds were issued on January 1, 2016, and pay interest annually on
each January 1. The bonds yield 11%.
www. acc422entirecourse
.com (a)
Prepare the journal entry to record the issuance of the bonds on
January 1, 2016
7. (3) Determine the total cost of borrowing over the life of the bond.
(Round answer to 0 decimal places, e.g. 38,548.)
Total cost of borrowing over the life of the bond
(4) Will the total bond interest expense for the life of the bond be
greater than, the same as, or less than the total interest expense if the
straight-line method of amortization were used?
The total bond interest expense for the life of the bond will be Problem
14-2 (Part Level Submission)
Swifty Co. is building a new hockey arena at a cost of $2,310,000. It
received a downpayment of $490,000 from local businesses to support
the project, and now needs to borrow $1,820,000 to complete the
project. It therefore decides to issue $1,820,000 of 12%, 10-year bonds.
These bonds were issued on January 1, 2016, and pay interest annually on
each January 1. The bonds yield 11%.
www. acc422entirecourse
.com (a)
Prepare the journal entry to record the issuance of the bonds on
January 1, 2016
