Problem 1 - Please prepare journal entries for the following transactions:
- January 1, 2012, purchased a delivery truck, paying $85,000, cash. The truck has an estimated 7 year life and $6,000 salvage value.
- November 1, 2014, sold the delivery truck for $58,000, cash (don't forget to prepare the journal entry to update depreciation for 2014. Depreciation for 2012-2013 has already been recorded).
Problem 2 - On January 1, 2015, Cardinal Corporation issued $85,000 face value bonds at 92. These bonds pay interest at a 8% annual rate, and pay interest semi-annually (2 times per year), on June 30 and December 31. The bonds have a 5 year life. Please record the issuance of the bonds on January 1, 2015, and the first interest payment on June 30, 2015.
Problem 3 - On January 1, 2015, Johnson Company purchased a delivery truck for $114,000, paying $13,000 cash and financing the rest with a 5 year, 5% note, with monthly payments of $1,910.
Required:
(1) Complete the loan amortization schedule below for the payments made on February 1 and March 1.
(2) Prepare the journal entry for the purchase on January 1.
(3) Prepare the journal entry for the first loan payment on February 1
Loan Amortization Schedule
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Date
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Payment
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Interest
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Principal
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Loan Balance
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January 1
|
|
|
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$101,000
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February 1
|
|
|
|
|
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March 1
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|
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|
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General Journal
Problem 4 - Please prepare journal entries for the following transactions:
- January 1, 2012, purchased a delivery truck, paying $62,000, cash. The truck has an estimated 7 year life and $9,000 salvage value.
- November 1, 2014, sold the delivery truck for $48,000, cash (don't forget to prepare the journal entry to update depreciation for 2014. Depreciation for 2012-2013 has already been recorded).
Problem 5 - On January 1, 2015, Johnson Company purchased a delivery truck for $67,000, paying $6,000 cash and financing the rest with a 4 year, 5% note, with monthly payments of $1,405.
Required:
(1) Complete the loan amortization schedule below for the payments made on February 1 and March 1.
(2) Prepare the journal entry for the purchase on January 1.
(3) Prepare the journal entry for the first loan payment on February 1
Loan Amortization Schedule
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Date
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Payment
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Interest
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Principal
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Loan Balance
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January 1
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|
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$61,000
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February 1
|
|
|
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|
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March 1
|
|
|
|
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General Journal
Problem 6 - On January 1, 2015, Cardinal Corporation issued $85,000 face value bonds at 108. These bonds pay interest at an 8% annual rate, and pay interest quarterly (4 times per year), on January 1, April 1, July 1, and October 1. The bonds have a 5 year life. Please record the issuance of the bonds on January 1, 2015, and the first quarterly interest payment on April 1, 2015.
Problem 7 - An adapted balance sheet of Kellogg Company is shown below. Please answer the following questions, and show computations. All questions are independent of one-another.
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Kellogg Company and Subsidiaries Consolidated Balance Sheet
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Current assets
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Cash and cash equivalents
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$417,400
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Accounts receivable, net
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776,400
|
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Inventories
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681,000
|
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Other current assets
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247,000
|
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Total current assets
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$2,121,800
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Property, net
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2,715,100
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Other assets
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5,953,500
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Total assets
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$10,790,400
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|
|
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Current liabilities
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|
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Current maturities of long-term debt
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$278,600
|
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Notes payable
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709,700
|
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Accounts payable
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767,200
|
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Other current liabilities
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1,090,500
|
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Total current liabilities
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$2,846,000
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Long-term debt
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3,892,600
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Other liabilities
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1,794,000
|
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Shareholders' equity
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|
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Common stock, $?? par value, 1,000,000 shares authorized
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|
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Issued: 415,451 shares, Outstanding: ?? shares
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103,800
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Capital in excess of par value
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1,313,500
|
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Retained earnings
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1,387,800
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Treasury stock at cost: 2,429 shares
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(108,000)
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Accumulated other comprehensive loss
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(439,900)
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Total shareholders' equity
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$2,257,200
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Total liabilities and shareholders' equity
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$10,790,400
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How much cash was received from shareholders for common stock per share of common stock?
How many shares of common stock are outstanding?
What is the par value per share of common stock?
If Kellogg declared a $6,000 cash dividend, what would the journal entry be? Please show below.
Attachment:- Assignment.rar