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# Chapter+10+Examplesblank - through January 1, 2010. Be sure...

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Chapter 10 Examples Shannon Company issued \$500,000, 8%, 10-year bonds on December 31, 2009, for \$480,000. Interest is payable annually on December 31. Shannon uses the straight-line method to amortize bond premium or discount. Instructions Prepare the journal entries to record the following events. (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2010. (c) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

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On January 1, 2009, Powell Corporation issued \$800,000, 5%, 5-year bonds dated January 1, 2009, at 95. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end. Instructions Prepare all the journal entries that Powell Corporation would make related to this bond issue
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Unformatted text preview: through January 1, 2010. Be sure to indicate the date on which the entries would be made. Notes Payable 4/30 Received \$550,000 from Commerce Bank after signing a 12 month, 6 percent interest-bearing note payable. What is the adjusting journal entry on 12/31? Balance Sheet presentation at 12/31? Paid and recorded wages of \$80,000 during 2006, however at 12/31/06 three days wages are unpaid and unrecorded because the weekly payroll will not be paid until 1/6/07. The payroll for a 5 day week is \$5000. Entry at 12/31? Current Ratio Current Assets divided by Current Liabilities. Contingent Liability probable, estimable? Record Liability probable, no \$ amount, Disclose Capital vs Operating Lease-Capital Asset and Liability (like you own it)-Operating Lease not on the books...
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## Chapter+10+Examplesblank - through January 1, 2010. Be sure...

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