Exercise 7.24 O LO 5, O 8 Transaction analysis-various accounts Enter the following column headings across the top of a sheet of paper: Stockholders' Equity Transaction/Adjustment Current Assets Noncurrent Assets Current Liabilities Noncurrent Liabilities Enter the transaction or adjustment letter in the first column and show the effect, if any, of each transaction or adjustment on the appropriate balance sheet category or on net income by entering for each category affected the account name and amount, and indicating whether it is an addition (+) or a subtraction (-). Items that affect net income should not also be shown as affecting stockholders' equity. You may also write the journal entries to record each transaction or adjustment. a. Recorded the financing (capital) lease of a truck. The present value of the lease payments is $110,000; the total of the lease payments to be made is $136,000. b. Recorded the company's payroll for the month. Gross pay was $21,100, net pay was $16,300, and various withholding liability accounts were credited for the difference. c. Issued $52,000 of bonds payable at a price of 102. d. Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $7,600. e. Retired $42,000 face amount of bonds payable with a carrying value of $41,600 by calling them at a redemption value of 104. f. Accrued estimated annual health care costs for retirees; $62,000 is expected to be paid within a year, and $470,000 is expected to be paid in more than a year. Exercise 7.24 O LO 5, O 8 Transaction analysis-various accounts Enter the following column headings across the top of a sheet of paper: Stockholders' Equity Transaction/Adjustment Current Assets Noncurrent Assets Current Liabilities Noncurrent Liabilities Enter the transaction or adjustment letter in the first column and show the effect, if any, of each transaction or adjustment on the appropriate balance sheet category or on net income by entering for each category affected the account name and amount, and indicating whether it is an addition (+) or a subtraction (-). Items that affect net income should not also be shown as affecting stockholders' equity. You may also write the journal entries to record each transaction or adjustment. a. Recorded the financing (capital) lease of a truck. The present value of the lease payments is $110,000; the total of the lease payments to be made is $136,000. b. Recorded the company's payroll for the month. Gross pay was $21,100, net pay was $16,300, and various withholding liability accounts were credited for the difference. c. Issued $52,000 of bonds payable at a price of 102. d. Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $7,600. e. Retired $42,000 face amount of bonds payable with a carrying value of $41,600 by calling them at a redemption value of 104. f. Accrued estimated annual health care costs for retirees; $62,000 is expected to be paid within a year, and $470,000 is expected to be paid in more than a year
