BE15-2 Price Company issues $400,000, 20-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1, 2017. BE15-3 Meera Corporation issued 4,000, 8%, 5-year, $1,000...

1 answer below »

BE15-2 Price Company issues $400,000, 20-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1, 2017.


BE15-3 Meera Corporation issued 4,000, 8%, 5-year, $1,000 bonds dated January 1, 2017, at 100. Interest is paid each January 1.


(a) Prepare the journal entry to record the sale of these bonds on January 1, 2017.


(b) Prepare the adjusting journal entry on December 31, 2017, to record interest expense.


(c) Prepare the journal entry on January 1, 2018, to record interest paid.


BE15-4 Nasreen Company issues $2 million, 10-year, 8% bonds at 97, with interest payable each January 1.


(a) Prepare the journal entry to record the sale of these bonds on January 1, 2017.


(b) Assuming instead that the above bonds sold for 104, prepare the journal entry to


record the sale of these bonds on January 1, 2017.






Partnership Formation
E12-2 K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring
$50,000 of personal cash to the partnership. Rosen owns land worth $15,000 and a small
building worth $80,000, which she transfers to the partnership. Toso transfers to the part-
nership cash of $9,000, accounts receivable of $32,000, and equipment worth $39,000. The
partnership expects to collect $29,000 of the accounts receivable.
Instructions Prepare the journal entries to record each of the partners’ investments.


E12-3 Suzy Vopat has owned and operated a proprietorship for several years. On January 1,
she decides to terminate this business and become a partner in the fi rm of Vopat and
Sigma. Vopat’s investment in the partnership consists of $12,000 in cash, and the follow-
ing assets of the proprietorship: accounts receivable $14,000 less allowance for doubtful
accounts of $2,000, and equipment $30,000 less accumulated depreciation of $4,000. It is
agreed that the allowance for doubtful accounts should be $3,000 for the partnership. The
fair value of the equipment is $23,500.
Instructions:
Journalize Vopat’s admission to the fi rm of Vopat and Sigma.


E12-4 McGill and Smyth have capital balances on January 1 of $50,000 and $40,000,
respectively. The partnership income-sharing agreement provides for (1) annual salaries
of $22,000 for McGill and $13,000 for Smyth, (2) interest at 10% on beginning capital
balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth.
Instructions
(a) Prepare a schedule showing the distribution of net income, assuming net income is
(1) $50,000 and (2) $36,000.
(b) Journalize the allocation of net income in each of the situations above.















Answered 1 days AfterJun 07, 2021

Answer To: BE15-2 Price Company issues $400,000, 20-year, 7% bonds at 101. Prepare the journal entry to record...

Nitish Lath answered on Jun 09 2021
144 Votes
Solution BE15-2
    Date
    Journal Titles
    Debit ($)
    Credit ($)
    
    
    
    
    June 1 2017
    Cash
    4
04,000
    
    
    Premium bonds payable
    
    4,000
    
    Bonds Payable
    
    400,000
    
    (To record sale of bond)
    
    
Solution BE15-3
    Date
    Journal Titles
    Debit ($)
    Credit ($)
    
    
    
    
    a) Jan 1 2017
    Cash (4000*1000)
    4000,000
    
    
    Bonds Payable
    
    4000,000
    
    (To record sale of bond)
    
    
    
    
    
    
    b) Dec 31 2017
    Interest expense
    320,000
    
    
    Interest payable
    
    320,000
    
    (To record interest expense)
    
    
    
    
    
    
    c) Jan 1 2018
    Interest payable
    320,000
    
    
     Cash
    
    320,000
    
    (To record payment of interest)
    
    
Solution BE15-4
    Date
    Journal Titles
    Debit ($)
    Credit ($)
    
    
    
    
    a) Jan 1 2017
    Cash
    1,940,000
    
    
    Discount on bonds payable
    60,000
    
    
    Bonds Payable
    
    2,000,000
    
    (To record sale of bond)
    
    
    
    
    
    
    b) Jan 1 2017
    Cash
    2,080,000
    
    
    Premium on bonds payable
    
    80,000
    
     Bonds...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here