I'm using the attached work to check my own and have highlighted two sections that don't match with mine.

Blue highlighted areas:

On pages #1 and #2 I'm not sure how they're getting 213.50 for the accrued interest from 2011, I get $217 even. $18000 borrowed on October 30th and the accrual is calculated on Dec 31st, so that's 62 days of interest. The interest rate is 7%.

My math is:

(62*0.07/360*18000)= $217

(28*0.07/360*18000)= $98

Am I missing something?

Yellow highlights areas:

Why are the retained earnings from Dec, 31 2011 in the statement of retained earnings different from the amount of retained earnings on the stockholder's equity section of the balance sheet?What am I missing?

Also, why is there a $48,000 restriction or cost from the treasury account if those shares have already been resold?

Thanks

CAPELLA UNIVERSITY FINANCIAL ACCOUNTING PRINCIPLES Assessment 4: Accounting for Liabilities and Equity Worksheet Use this worksheet to complete the following three exercises for Assessment 4. Refer to the instructions in the course for submitting your assessment. Exercise 4-1 During 2011 and 2012, Data Resources, Inc. engaged in financial transactions that involved short-term liabilities. 1. Using the financial transaction information provided below, determine the following. Record your responses on page 2. a. b. c. d. Note: 2011 Mar 19 April 29 Jun 16 '2 7 Oct 30 Dec 31 2012 ? All three note maturity dates. The interest due on all three notes on the dates they mature, assuming a 360-day year. The interest expense forthe 2011 year-end adjusting entry. For distinguished performance, determine the interest expense for 2012. The company uses a perpetual inventory system. Purchased $41,250 worth of merchandise from Chipcom, on credit. Terms: 1/10, n/30. Replaced the Mar 19 account payable to Chipcom with a 120day, $35,000 note at 7% annual interest, plus a cash payment of $6,250. Borrowed $55,000 cash from Sunnyvale Bank. Signed a 90-day, 8% interest-bearing note, with a $55,000 face value. Paid Chipcom the amount due on the note on the date of maturity. Paid Sunnyvale Bank the amount due on the note on the date of maturity. Bonowed.$18,000 cash from UCB Sank} Signed a 90-day; 1% intErestabearinQ note, \"with a $18,000 face value. Recorded an accrued interest adjustment on the U08 Bank note. Paid UCB Bank the amount due on the note on the date of maturity. C CAPELLA UNIVERSITY Sunnyvale Chipcom Bank UCB A. Maturity Date Aug 27, 2011 Sep 14, 2011 Jan 28, 2012 B. Interest Due $816.67 $1, 100 $315 C. Interest Exp. Entry for 2011 Year End $213.50 D. Interest Exp. For 2012 $101.50 Prepare journal entries for all 2011 and 2012 events and transactions for Data Resources, Inc March 19 Merchandise Inventory $41,250 Accounts Payable $41,250 April 29 Accounts Payable $41,250 Cash $6,250 Notes Payable $35,000 June 16 Cash $55,000 Notes Payable $55,000 August 28 Notes Payable $35,000 Interest Expense $817 Cash $35,817 September 15 Notes Payable $55,000 Interest Expense $1, 100 Cash $56, 100 October 30 Cash $18,000 Notes Payable $18,000 December 31 Interest Expense $213.50 Interest Payable $213.50 January 29 Notes Payable $18,000 nterest Expense $ 101.50 nterest Payable $213.50 Cash $18,315 2c CAPELLA UNIVERSITY Exercise 4-2 On January 1, 2012, Fromer issued $3,000,000 of 12-year, 7 percent bonds. Interest is paid semi-annually on June 30 and December 31. The issue price was $2,592,000. 1. Prepare the January 1, 2012, journal entry that records the bond issue. January 1 Cash $2,592,000 Discount on Bonds Payable $408,000 Bonds Payable $3,000,000 2. Compute the following for each semi-annual period: a. Cash payment $105,000 - $17,000 = $88,000 b. Straight-line discount amortization. $408,000/24 = $17,000 c. Interest expense. $3,000,000 * .035 = $ 105,000 3. Determine the total interest expense recognized over the life of the bonds. $ 105,000 * 24 = $2,520,000 wC CAPELLA UNIVERSITY 4. Prepare the first two years of an amortization table (use the straight-line method). Semiannual Unamortized Carrying Period-End Discount Value January 2012 $408,000 $2,592,000 June 2012 $391,000 $2,609,000 January 2013 $374,000 $2,626,000 June 2013 $357,000 $2,643,000 January 2014 $340,000 $2,660,000 June 2014 $323,000 $2,677,000 5. For distinguished performance, prepare journal entries for the first two interest payments. June 2012 Interest Expense $105,000 Discount on Bonds Payable $17,000 Cash $88,000 January 2013 Interest Expense $105,000 Discount on Bonds Payable $17,000 Cash $88,000C CAPELLA UNIVERSITY Exercise 4-3 Stockholders' equity in TransWorld Inc. on December 31, 2010, is shown below: Common stock: 60,000 authorized shares, par value of $15, 25,000 shares issued and outstanding. .................. $375,000 Paid-in capital in excess of par value, common stock ... 90,000 Retained earnings ...... . . . . . .. . .... 430,000 Total equity .......... 895,000 Stockholder equity accounts were affected by the following transactions in 2011: Jan 1 TransWorld purchased 2,000 treasury shares at $24/share. Jan 7 Declared a $3/share dividend, payable on Feb 15 to the Feb 28 stockholders of record. Feb 15 Paid the dividend (Jan 7 declaration). May 7 Sold 800 of treasury shares for cash at $27/share. Aug 15 Sold 1200 of treasury shares for cash at $21/share. Sep 20 Declared a $3/share dividend, payable on Oct 15 to the Sep 30 stockholders of record. Oct 15 Paid the dividend (Sep 20 declaration). Dec 31 Closed the credit balance of $188,000 (from net income) in the Retained Earnings Income Summary account. 1. Use the information provided to prepare the following: a. Journal entries for the 2011 transactions. Jan 1 Treasury Stock $48,000 Cash $48,000 Jan 7 Retained Earnings $75,000 Dividends Payable $75,000 Feb 15 Dividends Payable $75,000 Cash $75,000 May 7 Cash $21,600 Treasury Stock $19,200 Paid-In Capital from Treasury Stock $2,400 Aug 15 Cash $25,200 Retained Earnings $3,600 Treasury Stock $28,800 Sep 20 Retained Earnings $75,000 Dividends Payable $75,000 5\fC CAPELLA UNIVERSITY b. December 31, 2011, retained earnings statement. TRANSWORLD INC Statement of Retained Earnings For Year Ended December 31, 2011 Retained Earnings at December 31, 2010 $430,000 Net Income for the Year ended December 31, 2011 $188,000 Dividends Paid to Shareholders $150.000 Retained Earnings at December 31, 2011 $468,000C CAPELLA UNIVERSITY c. For distinguished performance, prepare the investors' equity section of TransWorld's December 31, 2011, balance sheet TRANSWORLD INC Stockholders' Equity Section of the Balance Sheet December 31, 2011 Common stock: 60,000 authorized shares, par value of $15, 25,000 shares issued and outstanding, 2,000 shares in $ 375,000 treasury Paid-in capital in excess of par value, Common 90,000 stock Total contributed 465,000 capital Retained earnings, $48,000 restricted by treasury 280,000 stock Total 745,000 Less cost of treasury (48,000) stock Total stockholder $697,000 equity 8