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week 4 chap 7

# week 4 chap 7 - Week4Templates Chapter7 PROBLEM719 A...

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Week 4 Templates  Chapter 7 PROBLEM 7-19  A Chandra Company 1 Borrowed \$60,000 from bank @  6% / due june 1, 2010  2 Cash sale for year = 310,000 + 7%  sales tax(23,219)= 331,700 3 Recognizes \$3,100 for warranty on  sales 4  Pays \$19,600 to tax (leaving \$3,619  left) 5 Paid 63,600 on note 6  Borrowed \$50,000 from bank for %6  -1year maturity (\$250/ mth interest) 7 Paid \$2,400 on warranty services 8  Remote cost \$500,000 A1. - \$46,419 (\$3,600 from note, 19,600 to tax, 23,219 tax on cash sales,  A2. \$3,332 A3. \$2,400 actual as recorded.

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PROBLEM 7-19 (cont.) c. Event Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow 1. 60,000  60,000 60,000 2. 331,700 21,700 288,300 331,700 3. 3,100 -3,100 -3,100 4. -19,600 -19,600 -19,600 5. -63,600 -63600 -63600 6. 50,000 50,000 50,000 7. -2,400 -2,400   -2,400 8. (8. is a remote obligation, therefore does not have to be recorded as a liability. It COULD  be, but that is on the discretion of the book keeper and business owner.)  PROBLEM 7-22 a. Holmes Co. Amortization Schedule \$80,000, 3-Yr. Term Note, 7% Interest Rate Year Prin. Bal.  on Jan 1 Cash Pay.  Dec. 31 Applied to  Interest Applied to Principal Prin. Bal.
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