Prepare the journal entries of the following transactions. 1. On January 1, 20XX, BVD Corp. issued 3,500
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. On January 1, 20XX, BVD Corp. issued 3,500 shares of $50 par, 7% preferred stock for $275,000. 2. On January 1, 20XX, BVD Corp. also issued 7,000 shares of common stock for $68,550. 3. On January 1, 20XX, BVD Corp. issued $900,000, 6 %, 10 year bonds when the market rate was 8%. (Hint: Cash received will be the present value of the bond) Interest is to be paid annually on each January 1, beginning one year from date of issue. 4. BVD Corp. reacquired 4,000 shares of its common stock on January 12, 20XX for $11.00 per share. 5. On December 31, 20XX, BVD Corp. declared the annual preferred dividend plus a $1.00 per share dividend on the outstanding common stock, all payable in cash on January 31 of next year. 6. Bought Debt Investments worth $75,000 for cash. 7. On December 31, 20XX, BVD Corp. estimates that the total amount of accounts receivable that is uncollectible at year end is $15,480. 8. The building is being depreciated using the straight line method over 15 years. The salvage value is $85,000. 9. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $15,000. 10. Sold the Land for $100,000 cash. 11. The unearned rent for the current month was collected on December 1, 20XX. The original amount received was 3 months' rent in advance (December 1 of this year through February 28 28 of next year). 12. The first cash interest payment on the 6% bonds is due January 1 of next year. The annual interest on the bonds for 20XX has not yet been recorded. Use the effective interest method. 13. The BVD Corporation sold half of the Debt Investments for $40,000 cash 14. The BVD Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 32%. The taxes will not be paid until March of next year. 1. On January 1, 20XX, BVD Corp. issued 3,500 shares of $50 par, 7% preferred stock for $275,000. 2. On January 1, 20XX, BVD Corp. also issued 7,000 shares of common stock for $68,550. 3. On January 1, 20XX, BVD Corp. issued $900,000, 6 %, 10 year bonds when the market rate was 8%. (Hint: Cash received will be the present value of the bond) Interest is to be paid annually on each January 1, beginning one year from date of issue. 4. BVD Corp. reacquired 4,000 shares of its common stock on January 12, 20XX for $11.00 per share. 5. On December 31, 20XX, BVD Corp. declared the annual preferred dividend plus a $1.00 per share dividend on the outstanding common stock, all payable in cash on January 31 of next year. 6. Bought Debt Investments worth $75,000 for cash. 7. On December 31, 20XX, BVD Corp. estimates that the total amount of accounts receivable that is uncollectible at year end is $15,480. 8. The building is being depreciated using the straight line method over 15 years. The salvage value is $85,000. 9. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $15,000. 10. Sold the Land for $100,000 cash. 11. The unearned rent for the current month was collected on December 1, 20XX. The original amount received was 3 months' rent in advance (December 1 of this year through February 28 28 of next year). 12. The first cash interest payment on the 6% bonds is due January 1 of next year. The annual interest on the bonds for 20XX has not yet been recorded. Use the effective interest method. 13. The BVD Corporation sold half of the Debt Investments for $40,000 cash 14. The BVD Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 32%. The taxes will not be paid until March of next year.
Expert Answer:
Answer rating: 100% (QA)
Journal Entries for BVD Corp transactions 1 On January 1 20XX issued 3500 shares of 50 par 7 preferr... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
Students also viewed these accounting questions
-
An entity is permitted to aggregate operating segments if the segments are similar regarding the: a) nature of the production processes. b) types or class of customers. c) methods used to distribute...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The first payroll in October covered the two workweeks that ended on September 26 and October 3. This payroll transaction has been entered for you in the payroll register, the employees' earnings...
-
The electron in a hydrogen atom is typically found at a distance of about 5.3 10-11 m from the nucleus, which has a diameter of about 1.0 10-15 m. If you assume the hydrogen atom to be a sphere of...
-
Explain the role of the international financial Reporting Interpretations Committee.
-
Use the Complex class introduced in Programming Exercise 13.17 to develop the ComplexMatrix class for performing matrix operations involving complex numbers. The ComplexMatrix class should extend the...
-
What is combined reliability?
-
Presented below are the monthly factory overhead cost budget (at normal capacity of 5,000 units or 20,000 direct labor hours) and the production and cost data for a month. The predetermined overhead...
-
Mark Cuban Corporation purchased a truck at the beginning of 2025 for $51,500. The truck is estimated to have a salvage value of $2,060 and a useful life of 164,800 miles. It was driven 23,690 miles...
-
Using the predictions made by the model on the "Prediction data (this year, active donors)" data set, if the Gabriel Hansen Foundation did not change its direct marketing strategy at all, and sent...
-
discuss the role of triggers in implementing data transformation and enrichment processes, such as data denormalization, aggregation, and derived column generation, to support analytical reporting...
-
Given the mean and standard deviation of a normal distribution, find proportions of observations below, above or between given values, find percentiles, find the number of observations in a given...
-
4. Project 1 costs A initially, costs B every year, generates C benefits every year and D disbenefits every year with a life of 5 years. Project 2 costs E initially, cost F every year, generates G...
-
You are the owner of a small bakery, Vista Confectioners. Your business is expanding, and you decide to order three new display cases from Foxtrot Furniture, a company based 200 miles away with whom...
-
ABC Company acquired an asset by way of a six year term finance lease on 1* January 2016. The asset had a fair value of $102,500 and a useful life of five years and the lease contract required 6...
-
The monthly payment in the loan here is influenced by 3 variables: the amount borrowed, the loan's interest rate, and the term. What is the nature of the relationship between each of these variables...
-
Product X has a standard direct material cost as follows. 10 kg of material Y at $5 per kg, that is, $50 material Y per unit of X. During the current period, 1,000 units of X were manufactured, using...
-
The registrar of a college with a population of N = 4,000 full-time students is asked by the president to conduct a survey to measure satisfaction with the quality of life on campus. The following...
-
The company acquired a machine on January 1 at an original cost of $70,000. The machines estimated residual value is $5,000, and its estimated lifetime output is 13,000 units. The actual output of...
-
John Jex, CPA, had just delivered a keynote address to a bankers organization on the merits of valuing loan portfolio assets at fair values that reflected changing interest rates. During the...
-
What amount should be recorded as an asset and a liability for capital leases on the books of the lessee?
-
Derive Eqs. (13.113b) and (13.116b) for the Mathieu equation. Equation 13.113b and 13.116b:- a 11 + E 62 - 8 + (13.113b)
-
a. Nonlinearity in mass b. Nonlinearity in damping c. Linear equation d. Nonlinearity in spring \(\ddot{x}+c \dot{x}+k x=a x^{3}\)
-
The equation of motion of a simple pendulum subject to viscous damping can be expressed as \[\ddot{\theta}+c \dot{\theta}+\sin \theta=0\] If the initial conditions are \(\theta(0)=\theta_{0}\) and...
Study smarter with the SolutionInn App