Homework Answers
Solution:
A) Prepare the journal entry for the day the futures contract was signed.
| Date | Account titles and explanation | Debit($) | Credit($) |
| Jan 1, 2017 | |||
| No Entry | |||
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Exercise 16-3 (Part Level Submission) On January 1, 2017, Wildhorse Inc. agrees to buy 3 kilos...
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Exercise 15-16 a-c (Part Level Submission)
Wildhorse Company issued $810,000, 10%, 10-year bonds on
December 31, 2019, for $740,000. Interest is payable annually on
December 31. Wildhorse Company uses the straight-line method to
amortize bond premium or discount.
(a)
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
Dec. 31, 2019
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1)
2)
3)
4)
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Exercise 18-3 On May 1, 2017, Cullumber Inc. entered into a contract to deliver one of its specialty mowers to kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $816 in advance on May 15, 2017. Kickapoo pays Cullumber on May 15, 2017, and Cullumber delivers the mower with cost of $504) on May 31, 2017. (a) Prepare the journal entry on May 1, 2017, for Cullumber. (Credit account titles are automatically indented when the amount...
On January 1, Wildhorse Co. issued $366,000, 7%, 10-year bonds 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 Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent...
Exercise 16-4 On January 2, 2017, Sheridan Corporation purchased a call option for $345 on Walter's common shares. The call option gives Sheridan the option to buy 1,010 shares of Walter at a strike price of $28 per share any time during the next six months. The market price of a Walter share was $28 on January 2, 2017 (the intrinsic value was therefore $0). On March 31, 2017, the market price for Walter stock was $41 per share, and...
Exercise 15-16 a-c (Part Level Submission)
Wildhorse Company issued $810,000, 10%, 10-year bonds on
December 31, 2019, for $740,000. Interest is payable annually on
December 31. Wildhorse Company uses the straight-line method to
amortize bond premium or discount.
(a)
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
Dec. 31, 2019
Exercise 10-9 On January 1, 2017, Forrester Company issued $351,500, 9%, 5-year bonds at face value. Interest is payable annually on January 1. (a) 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.) Debit Credit Date Account Titles and Explanation Jan. 1 (b) Prepare the journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when...
1)
2)
3)
4)
Exercise 12-7 (Part Level Submission) On January 1, Zabel Corporation purchased a 25% equity in Helbert Corporation for $186,500. At December 31, Helbert declared and paid a $52,100 cash dividend and reported net income of $195,000. (a) Journalize the transactions. (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 for the amounts.) Date Account Titles and...
Brief Exercise 16-7 On January 1, 2017, Sandhill Corporation granted 1,900 shares of restricted $5 par value common stock to executives. The market price (fair value) of the stock is $65 per share on the date of grant. The period of benefit is 2 years Prepare Sandhill's journal entries for January 1, 2017, and December 31, 2017 and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No...
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