Question

please answer the following questions.

(journal entries)

1. On July 1, 2013. Avery Services issued a 4% long-term note payable for S10,000. It is payable over a 5-year term in $2,000 principal installments on July 1 of each year. Each yearly installment will include both principal repayment of $2,000 and interest payment for the preceding one-year period. Please provide the journal entry needed on July 1, 2014 when the first installment payment is made. (4 points) 2. Paris Company buys a building on a plot of land for S100,000, paying $20,000 cash and signing a 20-year mortgage note for $80,000 at 6%. An appraisal shows the value of the building to be $70,000 and the value of the land to be $30,000. Please provide the journal entry for the purchase. (4 points) ys a building on a plot of land for S100,000, paying $20,000 cash and signing a 20-year mortgage note for $80,000 at 6%. Monthly payments are S570. The first monthly payment was made in January, 2013. Please provide the journal entry for the first monthly payment. (3 points) 4. On January 1, 2014, Davie Services issued $20,000 of 8% bonds that mature in five years. They were sold at discount for a total of $19,000. Please provide the journal entry to issue the bonds. (3 points) 5. On January 1, 2014, Davie Services issued $20,000 of 8% bonds that mature in five years. They were sold at a premium, for a total of $20,750. Please provide the journal entry to issue the bonds. (3 points) 6. On January 2, 2014, Mahoney Sales issued $10,000 in bonds for $10,900. They were 5-year bonds with a stated rate of 4%, and pay semiannual interest payments. Mahoney Sales uses the straight-line method to amortize the bond premium. Please provide the joumal entry for the first interest payment to be made on June 30, 2014. (3 points) 7. On November 1, 2013, Archangel Services issued $200,000 of 10-year bonds with a stated rate of 3%. The bonds were sold at discount for $191,000, and make semiannual payments on April 30 and October 31. At December 31, 2013, Archangel made an adjusting entry to accrue interest at year-end. Please provide that entry. (3 points)

Answer 1

Date: 2 Interext - 10,0TDX 4 00... 100 1 Julylity Interest Ac - Debit 40o... Note payable ALC Credit 100 Note Payable Alcasebit 2400 Cash Al - Credit 2400 Land & Building A/c - Debit (op. OUD Vendos t e - Credit (OD OTO Vendors Al - Debit 1000 Cash Alc - Credit 29000 Mortgage Note All-credit 80,000 A Interest All-Debit 400 Mortgeige Note - Credit 100 Mortgage Nok - Debit 970 Cash Alc - Credit 970 80,000x bet 16012 = 400 Bank Acc - Debit gooo Discount on issue - Debit 1000. 8% Bonds tic-cedit 20,000 Q.5.) Bank A/c Debit 20,750 8% Bonde the best 20.000 Securities Premium Roseuse - Credit 150 Interest on Bond - Sebit - 200 Cash Alc - Credit 200 (10,000x 4 x 100 6 12 o Interest Interest A/c Debit 1000 layable Ak - credit lobo Jobos X3 Intereft on Bond is always calculated on fave value of Bond pang RI NWWWWWWWWWWWWWWWWWW