ACT3392SpringTraditionalHWCh13solution

- HOMEWORK SPRING 2010 1(1 point G Company entry Inventory Discount on NP Note payable AJE $150,000 2,205 $152,205 $1,470 $1,470 Interest expense

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
HOMEWORK - SPRING 2010 1. (1 point) G Company 11-01-10 entry: Inventory $150,000 Discount on NP 2,205 Note payable $152,205 12-31-10 AJE: Interest expense $1,470 Discount on NP $1,470 2. (1.5 points) S Company 04-01-10 entry: Cash $175,000 Note payable $175,000 12-31-10 AJE: Interest expense $15,750 Interest payable $15,750 $175,000 x 12% x 9/12 = $15,750 3. (1.5 points) I Company $800,000 I borrowed $1,200,000 on February 2 and used this $ to pay off a portion of the $2,000,000. Thus, $1,200,000 of the $2,000,000 has been refinanced and only $800,000 of the $2,000,000 should be considered short-term as of 12-31-10. 4. (3 points) V Company a. What amount of compensated absence expense should V report on its income statement for 2009? $25.80 hourly rate x 8 hours x 10 vacation days x 35 employees = $72,240 b. What amount of compensated absence expense should V report on its income statement for 2010? $27.00 hourly rate x 8 hours x 10 vacation days x 35 employees = $75,600 ( $27.00 - $25.80) hourly rate diff. x 8 hours x 8 vacation days x 35 employees = $2,688 $75,600 + $2,688 = $78,288 c. What amount of accrued liability for compensated absences should V report on its December 31, 2011 balance sheet? 2 days at the $27 hourly rate and 10 days at the $28.50 hourly rate $27.00 hourly rate x 8 hours x 2 vacation days x 35 employees = $15,120 $28.50 hourly rate
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/21/2011 for the course ACCT 3392 taught by Professor Dr.terpin during the Spring '10 term at Troy.

Page1 / 3

- HOMEWORK SPRING 2010 1(1 point G Company entry Inventory Discount on NP Note payable AJE $150,000 2,205 $152,205 $1,470 $1,470 Interest expense

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online