ch13_sol

# ch13_sol - Name Solution Date Instructor Course...

This preview shows pages 1–4. Sign up to view the full content.

44dfbef45d4d29eed28ef53a63fd71480d3d113d.xlsx, Exercise 13-2 Solution, Page 1 of 10, 03/29/2012, 01:32:28 Name: Solution Date: Instructor: Course: Sep 1 Purchased inventory from Orion Company on account for \$50,000 Darby records purchases gross and uses a periodic inventory system Oct 1 Issued a \$50,000 12-month, 8% note to Orion in payment of acco Oct 1 Borrowed \$75,000 from the Shore Bank by signing a 12-month, zero-interest- bearing \$81,000 note. Instructions: Sep 1 Purchases 50,000 Accounts Payable 50,000 Oct 1 Accounts Payable 50,000 Notes Payable 50,000 Oct 1 Cash 75,000 Discount on Notes Payable 6,000 Notes Payable 81,000 Dec 31 Interest Expense [\$50,000 × 8.00% × (3/12)] 1,000 Interest Payable 1,000 Dec 31 Interest Expense 1,500 Discount on Notes Payable [6,000 × (3/12)] 1,500 Note payable \$50,000 Interest payable 1,000 \$51,000 Note payable \$81,000 Less discount (\$6,000 - \$1,500) 4,500 \$76,500 Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E13-2 (Accounts and Notes Payable) The following are selected 2012 transactions of Darby Corporation. (a) Prepare journal entries for the selected transactions above. (b) Prepare adjusting entries at December 31. (c) (1) Compute the total net liability to be reported on the December 31 balance sheet for the interest- bearing note. (c) (2) Compute the total net liability to be reported on the December 31 balance sheet for the zero- interest- bearing note.

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

View Full Document
44dfbef45d4d29eed28ef53a63fd71480d3d113d.xlsx, Exercise 13-2, Page 2 of 10, 03/29/2012, 01:32:28 Name: Date: Instructor: Course: Sep 1 Purchased inventory from Orion Company on account for \$50,000 Darby records purchases gross and uses a periodic inventory system Oct 1 Issued a \$50,000 12-month, 8% note to Orion in payment of acco Oct 1 Borrowed \$75,000 from the Shore Bank by signing a 12-month, zero-interest- bearing \$81,000 note. Instructions: Sep 1 Account Title Amount Account Title Amount Oct 1 Account Title Amount Account Title Amount Oct 1 Account Title Amount Account Title Formula Account Title Amount Dec 31 Account Title Formula Account Title Formula Dec 31 Account Title Formula Account Title Formula Account Title Amount Account Title Amount Formula Account Title Amount Account Title Amount Formula Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E13-2 (Accounts and Notes Payable) The following are selected 2012 transactions of Darby Corporation. (a) Prepare journal entries for the selected transactions above. (b) Prepare adjusting entries at December 31. (c) (1) Compute the total net liability to be reported on the December 31 balance sheet for the interest- bearing note. (c) (2) Compute the total net liability to be reported on the December 31 balance sheet for the zero- interest- bearing note.
44dfbef45d4d29eed28ef53a63fd71480d3d113d.xlsx, Exercise 13-5 Solution, Page 3 of 10, 03/29/2012, 01:32:29 Name: Solution Date: Instructor: Course: 9 individuals who work 8 -hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days 2012 2013 2012 2013 2012 2013 \$12 \$13 0 9 4 5 Instructions: 2012 To accrue expense and liability for vacations Salaries and Wages Expense 8,640 Salaries and Wages Payable 8,640 (1) 2012

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern