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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.
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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.
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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
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