Homework Answers
| Answer | ||
| General Journal | Debit | Credit |
| Correction entry before books are closed for 2018: | ||
| Investment A/c | $ 28,000 | |
| Gain on sale of Investment A/c | $ 28,000 | |
| W.N: (106000-78000) | ||
| Correction entry after books are closed for 2018: | ||
| Investment A/c | $ 28,000 | |
| Retained Earning A/c | $ 28,000 | |
Please like
Add Answer to:
On December 12, 2018, an equity Investment costing $83,000 was sold for $106,000. The investment was...
On December 12, 2018, an equity investment costing $84,000 was sold for $108,000. The investment was...
On December 12, 2018, an equity investment costing $84,000 was sold for $108,000. The investment was carried in the balance sheet at $79,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account. Required: 1. & 2. Prepare the following journal entries (Ignore income taxes). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
On December 12, 2018, an equity investment costing $96,000 was sold for $132,000. The investment was...
On December 12, 2018, an equity investment costing $96,000 was sold for $132,000. The investment was carried in the balance sheet at $91,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account. Required: 1. & 2. Prepare the following journal entries (Ignore income taxes). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1....
Rawl Corporation sold a building to a bank at the beginning of 2017 at a gain...
Rawl Corporation sold a building to a bank at the beginning of 2017 at a gain of $82,000 and immediately leased the building back for a period of four years. The lease is accounted for as an operating lease. The book value of building (net) is $525,000. Assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore...
In 2018, the internal auditors of KJI Manufacturing discovered the following material errors made in prior...
In 2018, the internal auditors of KJI Manufacturing discovered
the following material errors made in prior years:
Equipment was purchased on June 30, 2016, for $175,000. The
purchase was incorrectly recorded as a debit to repair and
maintenance expense. The equipment has a useful life of five years
and no residual value.
On March 31, 2017, $40,000 was paid to a contractor to
landscape the area around a manufacturing plant including the
installation of a sprinkler system. The expenditure...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale when circumstances warrant. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017. Mar. 31 Acquired 6% Distribution Transformers corporation bonds costing $430,000 at face value Sep. 1 Acquired...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017. Mar. 31 Acquired Distribution Transformers Corporation common stock for $590,000 Sep. Acquired $1,185,000 of American Instruments' common stock Sep. 30 Received a $20,650 dividend on the Distribution Transformers...
Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 1,200 tires to the...
Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 1,200 tires to the Nixon Car Company for $65 each. The terms of the sale were 3/15, 1/30. Harwell uses the gross method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2018. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and...
Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 2,000 tires to the...
Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 2,000 tires to the Nixon Car Company for $80 each. The terms of the sale were 2/10,n/30. Harwell uses the net method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 ignore cost of goods) and payment on July 23, 2018, 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment...
Sorocaba Ltda. sold a building to Banco Janeiro on January 1,2017, for 250,000 reais and then...
Sorocaba Ltda. sold a building to Banco Janeiro on January 1,2017, for 250,000 reais and then leased it back under a 10-year lease agreement, which is accounted for as an operating lease. The building had a carrying amount of 198,300 reais and a fair value of 250,000 reais on the date of sale. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S GAAP to prepare consolidated...
On December 12, 2018, Pace Electronics received $31,200 from a customer toward a cash sale of...
On December 12, 2018, Pace Electronics received $31,200 from a customer toward a cash sale of $312,000 of diodes to be completed on January 16, 2019 What journal entries should Pace record on December 12 and January 16? (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.) View transaction list Journal entry worksheet Record the appropriate entry on December 12. Note: Enter debits before credits Date General Journal Debit Credit December...
Rawl Corporation sold a building to a bank at the beginning of 2017 at a gain of $82,000 and immediately leased the building back for a period of four years. The lease is accounted for as an operating lease. The book value of building (net) is $525,000. Assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore...
In 2018, the internal auditors of KJI Manufacturing discovered
the following material errors made in prior years:
Equipment was purchased on June 30, 2016, for $175,000. The
purchase was incorrectly recorded as a debit to repair and
maintenance expense. The equipment has a useful life of five years
and no residual value.
On March 31, 2017, $40,000 was paid to a contractor to
landscape the area around a manufacturing plant including the
installation of a sprinkler system. The expenditure...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale when circumstances warrant. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017. Mar. 31 Acquired 6% Distribution Transformers corporation bonds costing $430,000 at face value Sep. 1 Acquired...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017. Mar. 31 Acquired Distribution Transformers Corporation common stock for $590,000 Sep. Acquired $1,185,000 of American Instruments' common stock Sep. 30 Received a $20,650 dividend on the Distribution Transformers...
Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 1,200 tires to the Nixon Car Company for $65 each. The terms of the sale were 3/15, 1/30. Harwell uses the gross method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2018. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and...
Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 2,000 tires to the Nixon Car Company for $80 each. The terms of the sale were 2/10,n/30. Harwell uses the net method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 ignore cost of goods) and payment on July 23, 2018, 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment...
Sorocaba Ltda. sold a building to Banco Janeiro on January 1,2017, for 250,000 reais and then leased it back under a 10-year lease agreement, which is accounted for as an operating lease. The building had a carrying amount of 198,300 reais and a fair value of 250,000 reais on the date of sale. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S GAAP to prepare consolidated...
On December 12, 2018, Pace Electronics received $31,200 from a customer toward a cash sale of $312,000 of diodes to be completed on January 16, 2019 What journal entries should Pace record on December 12 and January 16? (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.) View transaction list Journal entry worksheet Record the appropriate entry on December 12. Note: Enter debits before credits Date General Journal Debit Credit December...
Most questions answered within 3 hours.
-
You have a 825.3 mL sample of 2.754 M HA (Ka =
4.49⋅10−4). Calculate the pH...
asked 35 minutes ago -
The blues made its way into many kinds of music. Eric Clapton,
The Beatles, and Elvis...
asked 2 hours ago -
8. A wave in a string has a wave function given by: y (x, t) =...
asked 1 hour ago -
If you’re standing at the bottom of a hill and asked to evaluate
it while being...
asked 3 hours ago -
1. Which region has taken the lead in the world of
e-waste handling?
a) European Union...
asked 3 hours ago -
A 8.15- g bullet from a 9-mm pistol has a velocity of 366.0 m/s.
It strikes...
asked 4 hours ago -
The outstanding bonds of Alpha Extracts have a yield to maturity
of 7.4 percent and a...
asked 4 hours ago -
The Problem: The Case of the Harmonizing Vacations
Your CEO is exploring partnering with a European...
asked 6 hours ago -
A chemical equation is balanced by adding coefficients in front
of some formulas so that the...
asked 6 hours ago -
From the literature (reference your sources): What are the
lattice parameters of calcite and aragonite? Why...
asked 6 hours ago -
Your system is rejecting the question am asking which is
preceded by a case study. It...
asked 7 hours ago -
3. On January 2, 2000, Larry creates a trust with himself as
trustee. Larry as trustee...
asked 7 hours ago