Test Acc. 2

PROKAZ STUDENTA L. On May I,2012,Wintersohid pur hased eqipment for $13,200 plus sales tanes of 5600 (all paid in cash). 2. On July 1, 2012, Winterschid sold for S3,300 equipment which originalily cost 55,000 a Asumelated deprecijarion oat at Jenuary 1,2012, wa $1.00; 2012 depereciation prior 3. On December 31, 2012, Winerschid sold for $9,000 on account inventory tha cot 6,300. d. The bailding is being deprociated using the straight-line method over 30 years. The salvage value is $30,000. . The patent was acquired on January 1, 2012, and has a usefiul life of 10 ycars froem that date. 6. Unpaid salarics and wages at December 31. 2012, total $2,200. 7. The unearned rent revenue of $6,000 was received on December 1, 2012, for 3 months" rees. 8, Both the short-term and long-term notes payable are dated January 1, 2012, and am a 9% in!crest rate. All interest is payable in the next 12 months. (a) Prepare journal entries for the transactions listed above. (b) Prepare a 2012 income statement and an owner's equity statement. (c) Prepare a December 31, 2012, classified balance sheet On July 1, 2012, Sagittarius Satellites issued S4,600,000 face value, 9%, 10-year bonds at S4,400,000. This price resulted in an enctiveinterest rate of l 1% on the bonds. Saginariususes the effective-interest method to mrtize bond premium or discount. The bonds pay semiannual interest July 1 and January 1. Instructions (Round all computations to the nearest dollar.) a) Prepare the journal entry to record the issuance of the bonds on July 1, 2012. b) Prepare an amortization table through December 31, 2013 (3 interest periods) for this bond issue. e) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2012. Excrcise II Brandon Corporation had the following stockholders' equity accounts on January 1, 2012: Common Stock (S5 par) $500,000, Paid-in Capital in Excess of Par Common Stock $200,000, and Retained Farmings $100,000. In 2012, the company had the following treasury stock transactions. Mar. I June 1 Sept. 1 Dec. I Purchased 5,000 shares at $8 per share. Sold 1,000 shares at $12 per share. Sold 2,000 shares at $10 per share. Sold 1,000 shares at S6 per share. Brandon Corporation uses the cost method of accounting for treasury stock. In 2012, the company reported net income of $30,000. Instructions (a) Journalize the treasury stock transactions (b) Prepare the stockholders' equity section for Jacobsen Corporation at December 31, 2012 Exercise IV Presented below are selected transactions at Kirke Company for 2012 Jan. 1 Retired a piece of machinery that was purchased on January 1, 2002. The machine cost $82.000 on June 30 Sold a computer that was purchased on January 1, 2009. The computer cost $50,000. It had a useful Dec. 31 Discarded a delivery truck that was purchased on January 1, 2008. The truck cost $36,000. It was that date. It had a useful life of 10 years with no salvage value. life of 5 years with no salvage value. The computer was sold for $24,000. depreciated based on a 6-year useful life with a $3,000 salvage value. Instructions Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Kirke Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31 2011.)