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Brief Exercise 8-10
Sheffield Corp., a public company using IFRS, signed a long-term
non-cancellable purchase commitment with a major supplier to
purchase raw materials at an annual cost of $2,300,000. At December
31, 2019, the raw materials to be purchased in 2020 have a market
price of $2,250,000.
Prepare any December 31, 2019 entry that is needed.
(Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is
required, select "No Entry"...
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Exercise 10-17
Sandhill Co. issued $310,000 of 8%, 20-year bonds on January 1,
2022, at face value. Interest is payable annually on January 1.
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2022
enter an account title to record the issuance of the bonds on
January 1, 2017
enter a debit amount
enter a...
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Brief Exercise 10-10 Indigo Corporation issued 3,000 8%, 6-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1, 2022 (b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense. (Credit account...
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Brief Exercise 13-10 Marin Inc. is involved in a lawsuit at
December 31, 2017. Prepare the December 31 entry assuming it is
probable that Marin will be liable for $932,100 as a result of this
suit. (If no entry is required, select "No Entry" for the account
titles and enter 0 for the amounts. Credit account titles are
automatically indented when amount is entered. Do not indent
manually.) Date Account Titles and Explanation Debit Credit
December 31, 2017 Prepare the...
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Exercise 11-16
Machinery purchased for $49,400 by Indigo Corp. on January 1,
2015, was originally estimated to have an 8-year useful life with a
residual value of $3,000. Depreciation has been entered for five
years on this basis. In 2020, it is determined that the total
estimated useful life (including 2020) should have been 10 years,
with a residual value of $4,000 at the end of that time. Assume
straight-line depreciation and that Indigo Corp. uses IFRS for
financial statement...
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Brief Exercise 15-03 a-c Cullumber Corporation issued 3,300, 7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Janaury 1, 2020 LINK TO TEXT Prepare the adjusting journal entry on December 31, 2020, to record interest expense. (Credit...
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Brief Exercise 13-10 Teal Inc. is involved
in a lawsuit at December 31, 2017. Prepare the December 31 entry
assuming it is probable that Teal will be liable for $954,500 as a
result of this suit. (If no entry is required, select "No Entry"
for the account titles and enter 0 for the amounts. Credit account
titles are automatically indented when amount is entered. Do not
indent manually.) Date Account Titles and Explanation Debit Credit
December 31, 2017 SHOW LIST...
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Brief Exercise 15-03 a-c
Sunland Corporation issued 3,800, 9%, 5-year, $1,000 bonds dated
January 1, 2020, at 100. Interest is paid each January 1.
Prepare the journal entry to record the sale of these bonds on
January 1, 2020. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
Date
Account Titles and Explanation
Debit
Credit
Janaury 1, 2020
Prepare the adjusting journal entry on December 31, 2020, to
record interest expense. (Credit account titles are...
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Brief Exercise 5-05 a-c Prepare the journal entries to record the following transactions on Sensat Company's books using a perpetual inventory system. On March 2, Kwang Company sold $900,000 of merchandise on account to Sensat Company, terms 2/10, n/30. The cost of the merchandise sold was $620,000. (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 enter o...
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Brief Exercise 9-10 a-b Crane Limited sells equipment on September 30, 2018, for $38,960 cash. The equipment originally cost $138,320 when purchased on January 1, 2016. It has an estimated residual value of $4,040 and a useful life of five years. Depreciation was last recorded on December 31, 2017, the company's year end. Record debit side accounts first followed by credit side accounts. Prepare the journal entry to update depreciation using the straight-line method to September 30, 2018. (Credit account...
Brief Exercise 8-10
Sheffield Corp., a public company using IFRS, signed a long-term
non-cancellable purchase commitment with a major supplier to
purchase raw materials at an annual cost of $2,300,000. At December
31, 2019, the raw materials to be purchased in 2020 have a market
price of $2,250,000.
Prepare any December 31, 2019 entry that is needed.
(Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is
required, select "No Entry"...
Exercise 10-17
Sandhill Co. issued $310,000 of 8%, 20-year bonds on January 1,
2022, at face value. Interest is payable annually on January 1.
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2022
enter an account title to record the issuance of the bonds on
January 1, 2017
enter a debit amount
enter a...
Brief Exercise 10-10 Indigo Corporation issued 3,000 8%, 6-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1, 2022 (b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense. (Credit account...
Exercise 11-16
Machinery purchased for $49,400 by Indigo Corp. on January 1,
2015, was originally estimated to have an 8-year useful life with a
residual value of $3,000. Depreciation has been entered for five
years on this basis. In 2020, it is determined that the total
estimated useful life (including 2020) should have been 10 years,
with a residual value of $4,000 at the end of that time. Assume
straight-line depreciation and that Indigo Corp. uses IFRS for
financial statement...
Brief Exercise 15-03 a-c Cullumber Corporation issued 3,300, 7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Janaury 1, 2020 LINK TO TEXT Prepare the adjusting journal entry on December 31, 2020, to record interest expense. (Credit...
Brief Exercise 13-10 Teal Inc. is involved
in a lawsuit at December 31, 2017. Prepare the December 31 entry
assuming it is probable that Teal will be liable for $954,500 as a
result of this suit. (If no entry is required, select "No Entry"
for the account titles and enter 0 for the amounts. Credit account
titles are automatically indented when amount is entered. Do not
indent manually.) Date Account Titles and Explanation Debit Credit
December 31, 2017 SHOW LIST...
Brief Exercise 15-03 a-c
Sunland Corporation issued 3,800, 9%, 5-year, $1,000 bonds dated
January 1, 2020, at 100. Interest is paid each January 1.
Prepare the journal entry to record the sale of these bonds on
January 1, 2020. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
Date
Account Titles and Explanation
Debit
Credit
Janaury 1, 2020
Prepare the adjusting journal entry on December 31, 2020, to
record interest expense. (Credit account titles are...
Thank you. thumbs up!
Brief Exercise 5-05 a-c Prepare the journal entries to record the following transactions on Sensat Company's books using a perpetual inventory system. On March 2, Kwang Company sold $900,000 of merchandise on account to Sensat Company, terms 2/10, n/30. The cost of the merchandise sold was $620,000. (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 enter o...
Brief Exercise 9-10 a-b Crane Limited sells equipment on September 30, 2018, for $38,960 cash. The equipment originally cost $138,320 when purchased on January 1, 2016. It has an estimated residual value of $4,040 and a useful life of five years. Depreciation was last recorded on December 31, 2017, the company's year end. Record debit side accounts first followed by credit side accounts. Prepare the journal entry to update depreciation using the straight-line method to September 30, 2018. (Credit account...