1.In Clancy shoes experience, gift cards that have not been redeemed within 6 month are expired and cannot be redeemed. Clancy shoes sold gift cards for $18,500 during June 2015.

Show all work:

• Prepare journal entries for the purchase of the gift card
• Prepare journal entries for redemption of the gift cards
• Preparejournalentriesforexpirationofanygiftcards

2.On September 1, 2013, Hiker Shoes issued a $112,000, 6-month, noninterest-bearing note. The loan was made by Second Commercial Bank where the stated discount rate is 8%. Hiker's effective interest rate on this loan (rounded) is

Show all work/journal entry

• Prepare the necessary Journal entries for the issuance date (September 1, 2015).
• PreparethenecessaryJournalentriesfortheyearend(December31,2015)
• PreparethenecessaryJournalentriesformaturitydate(May31,2016)

3.Decker mining company paid $5.5 million to obtain the right to operate a coal mine. The cost of exploring for the coal deposit totaled $2 million development costs of $1.5 million and development cost of $5 million incurred in preparing the mine for extraction, which began on February 2, 2011. All purchases and costs we were in cash. After the coal is extracted in approximately six years, Decker is obligated to restore the land to its original condition. The companys controller has provided the following three cash possibilities for the restoration cost:

Cash Flow Probability 1,000,000 25% 1,400,000 15% 1,800,000 60%

The company's credit-adjusted, risk-free rate of interest is 7%, and its fiscal year ends on

December 31. Present value of $1, , % is .70496

Show all your work & journal entries to the following question: a.What is the initial cost of the coal mine? (Round computations to nearest whole dollar.) b. How much accretion expense will Decker report in its 2011 and 2012 income statements?

c. What is the carrying value (book value) of the asset retirement obligation that decker will report in its 2011 and 2012 balance sheets? d. Assume that actual restoration costs incurred in 2016 totaled $1,370,000. What amount of gain or loss will Deckers recognize on retirement of the liability?

4.Cool globe Inc. purchased equipment paying $20,000 down on January 1, 2009 and signed a noninterest-bearing note requiring the balance paid in four annual installment at the end of years starting 2009. Cool Globes borrowing rate for such transactions

Approximately 12%. The present value of annuity $1, n-4, % is 3.03735.

Necessary Journal entries for year 2009 and 2010. Round off your answer. Show all work.