please help me do the following journal entries, I keep getting the incorrect solutions. If you could show me how to solve it would be helpful. #12 has to be solved using the EFFECTIVE INTEREST METHOD, #3 gives the details for solving #12
Best Value Corporation's Trial Balance at December 31, 20XX is presented below. All 20XX transactions have been recorded except for the items described on the next page. Debit Credit 109,890 28,789 25,540 0 55,674 215,850 75,120 $ 1,027 63,306 16,048 35,278 0 48.900 0 0 0 0 Cash Accounts Receivable Inventory Debt Investments Land Buildings Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Interest Payable Unearned Rent Revenue Dividends Payable Income Tax Payable Bonds Payable Discount on Bonds Payable Common Stock ($2 par) Paid in Capital in Excess of Par-Common Stock Preferred Stock ($60 par) Paid in Capital in Excess of Par-Preferred Stock Retained Earnings Treasury Stock Cash Dividends Sales Revenue Rent Revenue Gain on Sale of Land Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense Total 29,200 44,580 0 0 107,904 0 0 776,068 0 0 0 0 478,542 0 53,274 79,632 0 0 $ 1,122,311 $ 1,122,311 3. On January 1, 20XX, Best Value issued $325,000, 5.5%, 9 year bonds when the market rate was 6%. Interest is to be paid annually on each January 1, beginning 1 year from date of issue. 6. On December 31, 20XX, Best Value estimates that the total amount of accounts receivable that is uncollectible at year end is $ 1,850. 12. The first cash interest payment on the 5.5% 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 BestValue Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 36%. The taxes will not be paid until March of next year. Best Value Corporation's Trial Balance at December 31, 20XX is presented below. All 20XX transactions have been recorded except for the items described on the next page. Debit Credit 109,890 28,789 25,540 0 55,674 215,850 75,120 $ 1,027 63,306 16,048 35,278 0 48.900 0 0 0 0 Cash Accounts Receivable Inventory Debt Investments Land Buildings Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Interest Payable Unearned Rent Revenue Dividends Payable Income Tax Payable Bonds Payable Discount on Bonds Payable Common Stock ($2 par) Paid in Capital in Excess of Par-Common Stock Preferred Stock ($60 par) Paid in Capital in Excess of Par-Preferred Stock Retained Earnings Treasury Stock Cash Dividends Sales Revenue Rent Revenue Gain on Sale of Land Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense Total 29,200 44,580 0 0 107,904 0 0 776,068 0 0 0 0 478,542 0 53,274 79,632 0 0 $ 1,122,311 $ 1,122,311 3. On January 1, 20XX, Best Value issued $325,000, 5.5%, 9 year bonds when the market rate was 6%. Interest is to be paid annually on each January 1, beginning 1 year from date of issue. 6. On December 31, 20XX, Best Value estimates that the total amount of accounts receivable that is uncollectible at year end is $ 1,850. 12. The first cash interest payment on the 5.5% 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 BestValue Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 36%. The taxes will not be paid until March of next year
