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7252569-MIdterm-1 (dragged) 33
Course: ACCTG ACC423, Spring 2012School: University of Phoenix
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Weygandt, Kieso, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition ILLUSTRATION 14-3 BONDS PAYABLEREVIEW PROBLEM Three-year bond with an 8% coupon rate sold to yield 10% on January 1, 2005. Interest payable annually. Callable at 105. Face value: $100,000. Bond issue costs: $5,000. 1. Calculation of premium or discount $100,000(0.75132) = $ 8,000(2.48685) = $75,132.00 19,894.80...
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Weygandt, Kieso, Warfield, Young, Wiecek
Intermediate Accounting, Eighth Canadian Edition
ILLUSTRATION 14-3
BONDS PAYABLEREVIEW PROBLEM
Three-year bond with an 8% coupon rate sold to yield 10% on January 1, 2005. Interest payable
annually. Callable at 105. Face value: $100,000. Bond issue costs: $5,000.
1.
Calculation of premium or discount
$100,000(0.75132) =
$ 8,000(2.48685) =
$75,132.00
19,894.80
$95,026.80
Discount = $100,000 - $95,026.80 = $4,973.20
2.
Recording of bond issuance
Cash
Bond Issue Expenses
Bonds Payable
3.
95,026.80
Bond Discount Amortization
Interest
Payable
(8%)
01/01/05
12/31/05
12/31/06
12/31/07
4.
90,026.80
5,000.00
Interest
Expense
(10%)
8,000
8,000
8,000
9,502.68
9,652.95
9,818.24
Discount
Amortization
1,502.68
1,652.95
1,818.24
Bond
Discount
4,973.20
3,470.52
1,817.57
-0-
Face
Value of
Bonds
100,000
100,000
100,000
100,000
Carrying
Value of
Bonds
95,026.80
96,529.48
98,182.43
100,000.00
Accounting Entries
Interest Expense
Bonds payable
Cash
12/31/05
9,502.68
1,502.68
8,000.00
12/31/06
9,652.95
1,652.95
8,000.00
Bonds Payable
Cash
12/31/07
9,818.24
1,818.24
8,000.00
100,000.00
100,000.00
14-17
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACCTG - ACC423
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University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
EXERCISE 4-26 (10 MINUTES)1.Work-in-Process Inventory: Preparation Department .Raw-Material Inventory .Wages Payable.Manufacturing Overhead .1,635,0002.Work-in-Process Inventory: Finishing Department .Work-in-Process Inventory: Preparation Depart
University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-28 (CONTINUED)4.Cost of goods completed and transferred out during April:number of unitstransferred outtotal cost per. 80,000equivalent unit$3.81$304,800cost perequivalent. 30,000unit ofdirect material$2.00$60,000cost perequiva
University of Phoenix - ACC260 - AAAJ0OKG00
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University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-29 (CONTINUED)3.Costs per equivalent unit:Work in process, 1/1/x4 .Costs incurred during 20x4 .Total costs to account for .Equivalent units .Costs per equivalent unit .DirectMaterial ConversionTotala $ 920,800$ 300,000 $ 620,8001,40
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-29 (CONTINUED)4.Cost of ending inventories:Cost of goods completed and transferred out:number of unitstransferred outtotal cost per. 1,000,000equivalent unit$4.80$4,800,000Cost remaining in 12/31/x4 work-in-process inventory:Direct m
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-30 (40 MINUTES)1.Equivalent units:PhysicalUnitsWork in process, August 1.40,000Units started during August.80,000Total units to account for . 120,000Units completed and transferredout during August.Work in process, August 31.Total u
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-30 (CONTINUED)4.Cost remaining in August 31 work-in-process inventory:Direct material:number ofcost perequivalentequivalentunits ofunit ofdirect materialdirect material.20,000$1.15$23,0006,000$10.2861,680Conversion:number of
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-31 (40 MINUTES)1.a. Equivalents units:PhysicalUnitsWork in process, June 1 .30,000Units started during June .34,000Total units to account for .64,000Units completed andtransferred out during June .Work in process, June 30 .Total un
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-31 (CONTINUED)c.Cost of goods completed and transferred out during June:number of unitstransferred outtotal cost perequivalent unit$54.50$2,180,000$5.45$130,800. 18,000 $49.05882,90040,000Cost remaining in June 30 work-in-process i
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-32 (35 MINUTES)1.Direct material cost was $1,390,000:JR1163 .JY1065 .DC0766 .Total .$ 225,000710,000455,000$1,390,000Texarkana Corporations total direct-labor payroll amounted to $134,274 for 6,394hours of work ($134,274 $21 per hour
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-32 (CONTINUED)DirectMaterialWork in process, April 1Costs incurred during April.Total costs to account for.Equivalent units.Cost per equivalent unitConversionTotal$ 230,0001,390,000$1,620,00030,000$54a$ 63,940575,460$639,40027,
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-33 (50 MINUTES)The missing amounts are shown below. A completed production report follows.Work in process, October 1 (in units).Units completed and transferred out during October .Total equivalent units: conversion .10,00075,00078,500Wor
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-33 (CONTINUED)Work in process, October 1.Costs incurred during October .Total costs to account for.Equivalent units .Costs per equivalent unit.DirectMaterial$112,000600,000$712,00080,000$8.90*Conversion$ 30,225900,000$930,22578,
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-33 (CONTINUED)Cost of goods completed and transferred out during October:number of unitstransferred outtotal cost per. 75,000equivalent unit$20.75$1,556,250$8.90$44,500$11.8541,475Total cost of October 31 work-in-process .$85,975C
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-34 (30 MINUTES)1.The ending work-in-process inventory consisted of 400 units (200 + 800 600).2.The cost of goods completed during June totaled $57,000 (600 units x $95):PercentageOfEquivalent UnitsCompletion_WithDirectPhysical Respec
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-34 (CONTINUED)4.Equivalent units measure the amount of manufacturing activity (i.e., for directmaterial or conversion) that has been applied to a batch of physical units. If, forexample, a company has 1,000 physical units in process that are
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-35 (30 MINUTES)1.a. Equivalent units:TaxReturns(physicalunits)Returns in process, February 1 .300Returns started in February .900Total returns to account for . 1,200Returns completedduring February.800Returns in process, February
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-36 (50 MINUTES)The missing amounts are shown below. A completed production report follows.Units started during January.Units completed and transferred out during January .Total equivalent units: conversion .55,00060,00066,000Work in proc
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-36 (CONTINUED)Work in process, January 1.Costs incurred during January .Total costs to account for.Equivalent units .Costs per equivalent unit.DirectMaterial$232,000400,000$632,00080,000$7.90Conversion$110,600820,000$930,60066,0
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-37 (45 MINUTES)1.PRODUCTION REPORT: MIXING DEPARTMENT(Weighted-Average Method)November 20x5PercentageofCompletionwithEquivalent UnitsPhysicalRespect toDirectUnitsConversionMaterialConversionWork in process, November 1 .5,00070
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-37 (CONTINUED)Cost of goods completed and transferred out during November:number of unitstotal cost pertransferred outequivalent unit. 16,000$20.20$323,200$5.30$31,800$14.9026,820Cost remaining in November 30 work-in-process invento
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-38 (35 MINUTES)1.Conversion cost per unit in department I:direct labor manufacturing overheadunits produced*$76,000 $460,0005,500 2,000 2,500$53.60 per uni t*Note that all of the products sold after processing in departments I, II, or II
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-38 (CONTINUED)4.Cost of an unetched, colored glass sheet:=cost per clearglass sheet$143.60direct materialconversion cost per+ per unit in department II + unit in department II$144,000$40.004,500$215.60 per sheet5.Cost of an etched