Homework Week 4 Chapter 21
Kingdom Leasing Inc. agrees to lease jousting equipment to Knight Inc. on Jan 1, 2016. They agree
on the following terms:
1) The normal selling price of the jousting equipment is $410000 and the cost of the asset to
E16-6 (LO1) (Conversion of Bonds) On January 1, 2017, Gottlieb Corporation issued $4,000,000 of 10-year,
8% convertible debentures at 102. Interest is to be paid semiannually on June 30 and December 31. Each $1,000
debenture can be converted into eight sh
EXERCISE 15-2 (1520 minutes)
Cash (80,000 X $5).
Common Stock (80,000 X $1).
Paid-in Capital in Excess of Stated
(80,000 X $4)
Cash (5,000 X $108).
Preferred Stock (5,000 X $100).
P13-6 (LO3) (Extended Warranties) Dos Passos Company sells televisions at an average price of $900 and
also offers to each customer a separate 3-year warranty contract for $90 that requires the company to perform
periodic services and to replace defective
E14-9 (LO1) GROUPWORK (Entries and Questions for Bond
Transactions) On June 30, 2017, Mischa Auer Company issued $4,000,000
face value of 13%, 20-year bonds at $4,300,920, a yield of 12%. Auer uses
the effective-interest method to amortize bond premium or
E11-4 (LO1,2) EXCEL (Depreciation ComputationsFive Methods) Jon Seceda Furnace Corp. purchased machinery
From the information given, compute the depreciation charge for 2018 under each of the following methods. (Roun
Latifa Shoe Co
For The Year Ended December 2017
Cost of goods Sold
Salaraies and wages
Salaries and Wages Expense
Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the
(a) $30,000 receivable at the end of 8 periods compounded at 12%.
(b) $30,000 payments to be made at the end
1. Yes the merchandise should be included in the clients inventory because the client still have possession and control of it.
2. No Merchandise should Not be included in inventory for December 31, 2017.
3. Yes the merchandise should be included in the cl
E10-1(LO1)(Acquisition Costs of
Realty)The following expenditures and
receipts are related to land, land
improvements, and buildings acquired for
use in a business enterprise. The receipts
are enclosed in parentheses.
A. Gains, Losses
C. Comprehensive income, investment by owners
D. Distribution to owners, equity
E. Gains, comprehensive income
G. comprehensive income
H. Revenues and expenses
Week 2 Problem
The Schonlind Company has gathered information regarding past sales:
1. Predict the sales for 2006 using the mo
Capital Budgeting Problem
George and William Phelps are considering a 6 year project that would require a cash outlay of $80,000 for equipm
The equipment would be depreciated evenly over the 6 years and have a salvage value of $8,000 at the end of
Sales Price per unit
Direct Materials per unit
Direct Labor Cost per unit
Direct Labor Hours (hour per unit)
Number of Units Produced
1. Calculate the Wernecke Companys estimated direct labor hours to produce flims and flams.
Week 5 Problem
Note: It is expected that this problem will be complete using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is av
The Hale Company is currently working on its cash budget for the coming year. Th
Week 3 Problem
Note: It is expected that this problem will be complete using an Excel spreadsheet using formulas. Please see the Excel Tuto
The Hale Company finished their sales projections for the coming year. The company produce
New York Traders Inc
For The Year December 2016
Cost of goods
Gain on the sale
2. (TCO F) Northville Paper and Paint deposits all receipts and makes all payments by check.
The following information is available from the cash records.
Balance per bank
Add: Deposits in