Can you please help me with these 4 questions below please?
1. On January 1, 2017, Ellis Enterprises issues $600,000 of 8% bonds, due in 10 years, with interest payable semiannually on June 30th and December 31st each year. Market interest rate for similar bonds is 10%. Determine the selling (issue) price of the bonds:
2. Cass Company loaned $66,116 to Westinghouse, Inc, accepting Westinghouse's 2-year, $80,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare Cass's journal entries for the initial transaction, recognition of interest each year, and the collection of $80,000 at maturity:
3. On December 31, 2017, Innovations Company rendered services in exchange for a 3-year, 5%, promissory note with a face value of $800,000 with interest received annually. The client has credit ratings that require him to borrow money at 10% interest.
(a)Determine the present value of the note.
(b) Create a Schedule of Note Discount Amortization(Amortization table) for Innovations Company under the effective interest method.
· On September 31, 2018, Elon's Company's general ledger shows a checking account balance of $8,397. The company's cash receipts for the month total $74,320, of which $71,295 has been deposited in the bank. In addition, the company has written checks for $72,467, of which $70,982 has been processed by the bank.
The bank statement reveals an ending balance of $11,727 and includes the following items not yet recorded by Elon: bank service fees of $150, note receivable collected by bank of $5,000, and interest earned on the account balance plus from the note of $320. After closer inspection, Elon realizes that the bank incorrectly charged the company's account $300 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error.
Create a bank reconciliation to calculate the correct ending balance of cash on September 31, 2018.
Record the necessary journal entries to adjust the balance for cash.
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