Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I do not need the journal entries. I need help with filling out the chart I attached in the pictureACC 3 1 8 Project One

I do not need the journal entries. I need help with filling out the chart I attached in the pictureACC 318 Project One Appendix
The following events occurred during the first half of the year. Book the entries necessary for the
corresponding transactions that have occurred.
January 22: Issued $75,000 of 6% term bonds due on January 1,2025(10 periods) with interest payable
each June 30 and December 31. Investors require an effective interest rate of 8%. Record the entries for
issuance of the bond.
February 28: A new long-term lease is entered into for extra storage space for the new product line of
ink cartridges. The net present value of the future lease payments is $120,400. The lease is for two years
at $5,000 per month beginning March 1.
March 6: A long-term note for $60,000 was taken out from the bank. The loan is for two years with an
interest rate of 6% repayable at maturity.
April 22: New equipment was purchased to make printers for $55,000. Use straight line depreciation
assuming a 4-year life, with no residual value. Use full year's depreciation for the first year.
April 17: 200 shares of common stock with a $1 par value were sold for $20 per share.
May 5: Paid cash dividends to stockholders of $22,500.
June 22: Purchased 50 shares of the company's stock at $25 per share.
June 30: Book the depreciation for the first half of the year on the printer equipment purchased April
June 30: Book the interest for the first half of the year on the loan you took out on March 6.
June 30: Book the interest payment and amortization on discount for bond.
June 30: Paid the rent expense for the first half of the year in cash.
June 30: Book the service revenue of $100,000 for the first half of the year paid in cash.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Business Perspective

Authors: Jefferson Williams, Roger Hermanson, James Don Edwards

10th Edition

1930789793, 978-1930789791

More Books

Students also viewed these Accounting questions

Question

Why are infrared waves often called heat waves?

Answered: 1 week ago