ALL homework assignments must be completed by using some type of computer software program, e.g., word, excel.
YOU WILL NOT RECEIVE FULL CREDIT FOR THE HOMEWORK UNLESS IT IS COMPLETED BY USING
NO CREDIT WILL BE GIVEN FOR LATE HOMEWORK.
When completing your homework
assignments DO NOT use any abbreviations, e.g., spell out Governmental Accounting Standards Board instead of
simply writing GASB.
As discussed during class, you can work on these homework assignments in groups or as an individual.
Note that this homework item relates to chapter 7, impairments.
On December 31, 2009, JS
Corporation borrowed $158,063 from Oslo Bank, signing a 6-year, $200,000 zero-interest-bearing note.
The note was
issued by Oslo to yield Oslo 4% interest.
During 2012, JS began to experience financial difficulty.
As a result, at
December 31, 2012, Oslo Bank determined it was probable that it would receive only $144,000 at maturity.
rate of interest on loans of this nature at December 31, 2012 is now 5%.
Prepare the entry to record the issuance of the loan by Oslo Bank on December 31, 2009.
Prepare the entry, if any, Oslo Bank should
record on December 31, 2012 to reflect the impairment of its
loan to JS.
24. (2 points)
On December 31, 2008, you performed a physical inventory count of the merchandise inventory that Big Al
Company maintains in its warehouse.
Your count indicates merchandise with a total cost of $3,300,000.
during your audit of Big Al that the following items were excluded
from the $3,300,000.
Merchandise costing $350,000 that Big Al has out on a consignment basis as of 12-31-08.