Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help me with the attached accounting assignment. Thanks B-09.05 Beckwith Boots invested $100,000 in 5-year bonds issued by Ace Brick Company. The bonds were
please help me with the attached accounting assignment. Thanks
B-09.05 Beckwith Boots invested $100,000 in 5-year bonds issued by Ace Brick Company. The bonds were purchased at par on January 1, 20X1, and bear interest at a rate of 8% per annum, payable semiannually. (a) Prepare the journal entry to record the initial investment on January, 20X1. (b) Prepare the journal entry that Beckwith would record on each interest date. (c) Prepare the journal entry that Beckwith would record at maturity of the bonds. (d) How much cash flowed "in" and "out" on this investment, and how does the difference compare to total interest income that was recognized? B-09 B-09.05 B-09.05 Name: Date: B-09.05 Section: B-09 (a)(b)(c) GENERAL JOURNAL Date Issue Interest Maturity (d) Accounts Debit Credit Name: Date: B-09.05 Section: B-09.05 Devol Computing invested in $100,000 face amount of 6-year bonds issued by Horton Micro Chip Company on January 1, 20X1. The bonds were purchased at 103, and bear interest at a stated rate of 8% per annum, payable semiannually. (a) Prepare the journal entry to record the initial investment on January, 20X1. (b) Prepare the journal entry that Devol would record on each interest date. (c) Prepare the journal entry that Devol would record at maturity of the bonds. (d) How much cash flowed "in" and "out" on this investment, and how does the difference compare to total interest income that was recognized? B-09.06 B-09.06 B-09.06 (a)(b)(c) GENERAL JOURNAL Date Issue Interest Maturity (d) Accounts Debit Credit B-09.06 Davis Steel Company acquired 30% of the stock of Reginald Metals Company. Davis acquired this investment for purposes of being able to exert significant influence over the strategic plans and operations of Reginald. Following are events pertaining to this investment: June 1 Purchased 30,000 shares of Reginald for $28 per share. June 30 The fair value of Reginald's stock was $31 per share, and the company reported June income of $80,000. July 15 The fair value of Reginald's stock was $30 per share, and the company declared and paid a dividend of $0.50 per share. July 31 The fair value of Reginald's stock was $29 per share, and the company reported July income of $60,000. (a) What method should be used to account for this investment? (b) Prepare journal entries to account for the activity pertaining to the investment in Reginald Metals. (c) If the investment in Reginald Metals was insufficient to allow Davis to exert significant influence, how would the accounting approach differ? B-09.0 B-09.08 (a) B-09.0 (b) GENERAL JOURNAL Date (c) Accounts Debit Credit B-09.08 Erik Food Supply Company issued $100,000 of face amount of 4-year bonds on January 1, 20X1. The bonds were issued at 98, and bear interest at a stated rate of 8% per annum, payable semiannually. The discount is amortized by the straight-line method. (a) Prepare the journal entry to record the initial issuance on January, 20X1. (b) Prepare the journal entry that Erik would record on each interest date. (c) Prepare the journal entry that Erik would record at maturity of the bonds. (d) How much cash flowed "in" and "out" on this bond issue, and how does the difference compare to total interest expense that was recognized? B-13.0 B-13.08 B-13.08 (a)(b)(c) GENERAL JOURNAL Date Issue Interest Maturity (d) Accounts Debit Credit B-13.08 Petersen Stores invested in $100,000 face amount of 4-year bonds issued by Erik Food Supply Company on January 1, 20X1. The bonds were purchased at 98, and bear interest at a stated rate of 8% per annum, payable semiannually. (a) Prepare the journal entry to record the initial investment on January, 20X1. (b) Prepare the journal entry that Petersen would record on each interest date. (c) Prepare the journal entry that Petersen would record at maturity of the bonds. (d) How much cash flowed "in" and "out" on this investment, and how does the difference compare to total interest income that was recognized? B-09.0 B-09.07 (a)(b)(c) B-09.07 GENERAL JOURNAL Date Issue Interest Maturity (d) Accounts Debit Credit B-09.07 Ace Brick company issued $100,000 of 5-year bonds. The bonds were issued at par on January 1, 20X1, and bear interest at a rate of 8% per annum, payable semiannually. (a) Prepare the journal entry to record the bond issue on January, 20X1. (b) Prepare the journal entry that Ace would record on each interest date. (c) Prepare the journal entry that Ace would record at maturity of the bonds. (d) How much cash flowed "in" and "out" on this bond issued, and how does the difference compare to total interest expense that was recognized? B-13.06 B-13.06 B-13.06 (a)(b)(c) GENERAL JOURNAL Date Issue Interest Maturity (d) Accounts Debit Credit B-13.06 Horton Micro Chip Company issued $100,000 of face amount of 6-year bonds on January 1, 20X1. The bonds were issed at 103, and bear interest at a stated rate of 8% per annum, payable semiannually. The premium is amortized by the straight-line method. (a) Prepare the journal entry to record the initial issue on January, 20X1. (b) Prepare the journal entry that Horton would record on each interest date. (c) Prepare the journal entry that Horton would record at maturity of the bonds. (d) How much cash flowed "in" and "out" on this bond issue, and how does the difference compare to total interest expense that was recognized? B-13.07 B-13.07 B-13.07 (a)(b)(c) GENERAL JOURNAL Date Issue Interest Maturity (d) Accounts Debit Credit B-13.07 Clear Water Coffee issued $100,000 of 7% bonds on January 1, 20X1. The bonds were issued at par and pay interest on June 30 and December 31 of each year. By December 31, 20X5, the market rate of interest had increased, and Clear Water was able to reacquire and retire the bonds for $97,500, plus accrued interest. Prepare the journal entry to record the interest payment and bond retirement on December 31, 20X5. B-13.12 B-13.12 B-13.12 GENERAL JOURNAL Date 31-Dec 31-Dec Accounts Debit Credit B-13.12 Ozark Corporation reported net income of $100,000 for 20X5. The income statement revealed sales of $1,000,000; gross profit of $520,000; selling and administrative costs of $340,000; interest expense of $20,000; and income taxes of $60,000. The selling and administrative expenses included $25,000 for depreciation. No equipment was sold during the year. Equipment purchases were made with cash. Prepaid insurance included in the balance sheet related to administrative costs. All accounts payable included in the balance sheet relate to inventory purchases. The change in retained earnings is attributable to net income and dividends. The increase in common stock and additional paid-in capital is due to issuing additional shares for cash. Using the indirect approach, prepare a statement of cash flows for Ozark for the year ending December 31, 20X5. Comparative balance sheets for Ozark follow. OZARK CORPORATION Balance Sheet December 31, 20X4 and 20X5 Assets Cash 20X5 $ 458,700 20X4 $ 471,450 Accounts receivable 199,250 171,500 Inventories 248,600 278,800 13,000 11,000 250,000 250,000 1,500,000 1,300,000 Prepaid insurance Land Building and equipment Less: Accumulated depreciation Total assets (205,000) (180,000) $ 2,464,550 $ 2,302,750 $ 85,700 $ 93,400 Liabilities Accounts payable Interest payable 10,500 15,000 Income taxes payable 22,000 8,000 Common stock 710,000 700,000 Paid in capital in excess of par 990,000 900,000 Retained earnings 646,350 586,350 Stockholders' equity Total liabilities and equity $ 2,464,550 $ 2,302,750 B-16. B-16.14 B-16. OZARK CORPORATION Statement of Cash Flows (Indirect Approach) For the Year Ending December 31, 20X5 Cash flows from operating activities: Net income $ - Add (deduct) noncash effects on operating income Depreciation expense $ - Increase in accounts receivable - Decrease in inventory - Increase in prepaid insurance - Decrease in accounts payable - Decrease in interest payble - Increase in income taxes payable - Net cash provided by operating activities $ - Cash flows from investing activities: Purchase of equipment $ - Net cash used by investing activities - Cash flows from financing activities: Proceeds from issuing stock Dividends on common $ - Net cash provided by financing activities Net decrease in cash $ Cash balance at January 1, 20X5 Cash balance at December 31, 20X5 - $ - B-16.14Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started