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cash | interest | Reduction | principal | ||||
annual | payment | expense | of | balance | |||
interest | 3% | principal | |||||
period | |||||||
issue date | 350,000 | ||||||
1 | 41,031 | 10,500 | 30,531 | 319,469 | |||
2 | 41,031 | 9,584 | 31,447 | 288,022 | |||
3 | 41,031 | 8,641 | 32,390 | 255,632 | |||
4 | 41,031 | 7,669 | 33,362 | 222,270 | |||
Date | Account titles & Explanations | Debit | Credit | ||||
12/31/2016 | cash | 350,000 | |||||
mortgage payable | 350,000 | ||||||
12/31/2017 | mortgage payable | 30,531 | |||||
interest expense | 10,500 | ||||||
cash | 41,031 | ||||||
Balance sheet | |||||||
Current liabilities | |||||||
current portion of mortgage notes payable | 31,447 | ||||||
long term liabilites | |||||||
mortgage payable | 288,022 | ||||||
Problem 15-4A Talkington Electronics issues a $350,000, 3%, 15-year mortgage note on December 31, 2016. The...
Whispering Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders’ equity. Preferred Stock, 148,200 shares $ 2,964,000 Common Stock, 1,991,000 shares 9,955,000 Paid-in Capital in Excess of Par—Preferred Stock 207,000 Paid-in Capital in Excess of Par—Common Stock 26,478,000 Retained Earnings 4,495,000 The following transactions affected stockholders’ equity during 2021. Jan. 1 29,200 shares of preferred stock issued at $23 per share. Feb....
The stockholders’ equity accounts of Pronghorn Corp. on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 4,250 shares authorized) $255,000 Common Stock ($3 stated value, 350,000 shares authorized) 875,000 Paid-in Capital in Excess of Par Value—Preferred Stock 12,750 Paid-in Capital in Excess of Stated Value—Common Stock 560,000 Retained Earnings 686,000 Treasury Stock (4,250 common shares) 34,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 5,440 shares...
Exercise 15-17 Metlock Corporation’s post-closing trial balance at December 31, 2020, is shown as follows. METLOCK CORPORATION POST-CLOSING TRIAL BALANCE DECEMBER 31, 2020 Dr. Cr. Accounts payable $ 307,700 Accounts receivable $ 492,000 Accumulated depreciation—buildings 189,000 Additional paid-in capital in excess of par—common 1,386,000 From treasury stock 161,000 Allowance for doubtful accounts 29,000 Bonds payable 319,000 Buildings 1,496,000 Cash 188,000 Common stock ($1 par) 202,000 Dividends payable (preferred stock—cash) 4,300 Inventory 609,000 Land 380,000 Preferred stock ($50 par) 450,000 Prepaid...
On January 1, 2022, Tamarisk, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,900,000 shares authorized, 655,000 shares issued and outstanding) $655,000 Paid-in Capital in Excess of Par Value 1,590,000 Retained Earnings 683,000 Accumulated Other Comprehensive Income 60,000 During 2022, the following transactions and events occurred. 1. Issued 55,000 shares of $1 par value common stock for $2 per share. 2. Issued 59,500 shares of common stock for cash at $6 per share. 3. Purchased 21,100 shares of...
On January 1, 2022, Tamarisk, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,900,000 shares authorized, 655,000 shares issued and outstanding) $655,000 Paid-in Capital in Excess of Par Value 1,590,000 Retained Earnings 683,000 Accumulated Other Comprehensive Income 60,000 During 2022, the following transactions and events occurred. 1. Issued 55,000 shares of $1 par value common stock for $2 per share. 2. Issued 59,500 shares of common stock for cash at $6 per share. 3. Purchased 21,100 shares of...
Cheyenne Corp. has issued 91,000 shares of $5 par value common stock. It was authorized 499,000 shares. The paid-in capital in excess of par value on the common stock is $264,000. The corporation has reacquired 6,700 shares at a cost of $55,000 and is currently holding those shares. It also had accumulated other comprehensive income of $67,000. The corporation also has 1,700 shares issued and outstanding of 8%, $104 par value preferred stock. It was authorized 10,900 shares. The paid-in...
At December 31, 2020, the available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be a long-term investment. Security Cost Fair Value A $17,500 $16,000 B 12,500 14,000 C 23,000 21,000 $53,000 $51,000 Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and...
On January 1, 2020, Crane Corporation had the following stockholders’ equity accounts. Common Stock (no par value, 91,000 shares issued and outstanding) $1,385,000 Retained Earnings 546,000 During the year, the following transactions occurred. Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 3-for-1 stock split. Prior to the split, the market price per share was $37. July 1...
On December 31, 2020, Sage Company has $6,975,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Sage enters into a refinancing agreement with Gotham that will permit it to borrow up to 67% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,983,000 in May to a high of $7,983,000 in October during the year 2021. The interest cost of...
Concord Corporation sold $2,950,000, 9%, 5-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. Concord Corporation uses the straight-line method to amortize bond premium or discount. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2022, assuming that the bonds sold at 103. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and...