Unformatted text preview: CH10 II 實習作業 一、 Jinkens Corporation sold $4,000,000, 8%, 10‐year bonds on January 1, 2010.The bonds were dated January 1, 2010, and pay interest on July 1 and January 1. Jinkens Corporation uses the straight‐line method to amortize bond premium or discount. Assume no interest is accrued on June 30. Instructions (a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2010, assuming that the bonds sold at 103. (b) Prepare journal entries as in part (a) assuming that the bonds sold at 96. (c) Show balance sheet presentation for each bond issue at December 31, 2010 二、 Tuber Company issued $1,000,000, 10%, 2‐year bonds which pay interest semiannually. Compute the amount at which the bonds would sell if investors required a rate of return of 8%. 三、 Hutton Cape Company, which prepares annual financial statements, is preparing adjusting entries on December 31. Analysis indicates the following: 1. The company is the defendant in an employee discrimination lawsuit involving $50,000 of damages. Legal counsel believes it is unlikely that the company will have to pay any damages. 2. Employees are entitled to one day's vacation for each month worked. The company employs 50 people who earn $120 per day and 25 who earn $160 per day. All employees worked the entire year. 3. The company is a defendant in a $500,000 product liability lawsuit. Legal counsel believes that the company probably will have to pay the amount requested. 4. The company has a defined‐benefit pension plan in which total pension expense for December is $50,000. The company funds one half of the expense and records a liability or the balance due. Instructions Prepare any adjusting entries necessary at the end of the year. ...
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- Spring '11
- annual financial statements, Balance sheet presentation, Prepare journal entries, necessary journal entries, total pension expense, Hutton Cape Company