Solved by verified expert :PROBLEMS
The Hobbit Company made the following merchandise purchases and
sales during the July:
July. 1 purchased
380 units at $15 each
July
5 purchased 270 units at $20
each
July
9 sold
500 units at $55each
July
14 purchased 300 units at $24
each
July
30 sold
250 units at$55 each
Required: SHOW ALL CALCULATIONS.
There is no beginning inventory. If the company uses the last-in,
first-out (LIFO) perpetual inventory system:
1)
What is the value of ending
inventory at July 30? $__________
2) What is the value of cost of
goods sold at July 30? $_________
On September 30, Emerson Co. has $540,250 of accounts
receivable. Emerson uses the allowance method of accounting for bad debts and
has an existing credit balance in the allowance for doubtful accounts of
$13,750.
Required: Prepare journal entries to record the
following selected October transactions. The company uses the perpetual
inventory system.
October 1 – Sold $325,000 of merchandise (that cost
$178,500) to customers on credit.
October 10 – Received $425,100 cash in payment of accounts receivable.
October 23 – Wrote off $16,700 of uncollectible accounts receivable.
October 31 – In adjusting the accounts on October 31, its fiscal year-end, the
company estimated that 3.0% of accounts receivable will be uncollectible.
Mahoney Company had the
following transactions involving plant assets during year. Unless otherwise indicated, all transactions
were for cash.
January 2 Purchased a truck for $50,000 plus
sales taxes of $3,000. The truck is
expected to have a $4,000 salvage value
and a 4 year life.
January 3 Paid $1,500 to have the company’s logo
painted on the truck. This did not
change the truck’s salvage value.
December 31 Recorded straight-line depreciation on the
truck.
Required: Prepare the general journal entries to record
these transactions.
On April 1, Year 5 a
company discarded a machine that had cost $10,000 and had accumulated
depreciation of $8,000 as of December 31, Year 4. The asset had a 5-year life
and $0 salvage value.
Required: Prepare the journal entries to 1) record the updating of the
depreciation expense and2)
discarding of this asset in Year 5.
On January 1, a machine
costing $260,000 with a 4-year life and an estimated $5,000 salvage value was
purchased. It was also estimated that the machine would produce 500,000 units
during its life. The actual units produced during its first year of operation
were 110,000.
Required: Determine the amount of depreciation expense
for the first year under each of the following assumptions:
1.
The company uses the units-of-production method
of depreciation $__________
2.
The company uses the double-declining-balance
method of depreciation $_______
On November 1,
Bob’s Skateboards signed a $12,000, 90-day, 5% note payable to cover a past due
account payable.
Required:
What amount of interest expense on this note
should Bob’s Skateboards report on year-end December 31? _____________
b. Prepare Bob’s journal entry to record the issuance of the note
payable.
c. Prepare Bob’s journal entry to record the payment of the note on
February 1 of the following year.
