Chapter 11 and 14

Chapter 11 and 14 - BUSI1002 OPQ Introduction to Accounting...

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Unformatted text preview: BUSI1002 OPQ Introduction to Accounting 0910 Semester 2 Chapter 11 and 14: Current and Long term liabilities Tutorial Assignment solution Quick Study 11-4 (15 minutes) 1. Computation of interest payable at December 31, 2009: Days from November 7 to December 31.............................. 54 days Accrued interest (8% x $80,000 x 54/360)............................ $960 2. 2009 Dec.31 Interest Expense........................................................... 960 Interest Payable..................................................... 960 To record accrued interest (8% x $80,000 x 54/360). 3. 2010 Feb. 5 Interest Expense*.......................................................... 640 Interest Payable............................................................ 960 Notes Payable............................................................... 80,000 Cash....................................................................... 81,600 To record payment of note plus interest *(8% x $80,000 x 36/360). Problem 11-2A (40 minutes) 1. 2008 Nov. 11 Cash................................................................................ 4,500 Sales.......................................................................... 4,500 Sold razors to customers. 11 Cost of Goods Sold......................................................... 1,200 Merchandise Inventory.............................................. 1,200 To record cost of November 11 sale (75 x $16). 30 Warranty Expense........................................................... 315 Estimated Warranty Liability...................................... 315 To record razor warranty expense and liability at 7% of selling price....
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Chapter 11 and 14 - BUSI1002 OPQ Introduction to Accounting...

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