ACC IN ORG & S y & Practice Assignment Gradebook ORION Downloadable eTextbook RC
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ACC IN ORG & S y & Practice Assignment Gradebook ORION Downloadable eTextbook RCES Exercise 8-7 On January 1, Cul umber Company issued $403,000, 8%, 10-year bonds at face value. interest is payable annually on January 1. Prepare a tabular summary to record the following events (a) The issuance of the bonds. (b) The accrual of Interest on December 31 Study The payment of interest on January 1. (If a transaction causes a decrease Liability or Equity item that was reduced.) uabliy ar Equihy tem thet was redinc adsts Lliabinities r tckholdesuty alace negative sign (or parentneses lo rent of the amount ered for the parde Assets Stockholders Equity Retained Earnings Cash Bonds Pay. + Interest Pay. +Common Stock tRevenueHExpens Dividend (a) Jan. 1 (b) Dec. 31 (c) Jan. 1 Click if you would like to Show Work for this question: Interest expense Qpen Show Work VIDEO: SIMILAR EXERCISE MacBook AiExplanation / Answer
Assets = Liabilities + Stockholder's Equity Retained Earning Cash = Bonds Pay + Interest Pay + Common Stock + Revenue - Expenses - Dividend a) Jan- 01 $ 4,03,000 = $ 4,03,000 b) Dec - 31 $ 32,240 - $ 32,240 ($ 403,000 X 8% ) c) Jan - 01 $ 32,240 = $ -32,240 Date Assets = Liabilities + STOCKHOLDER'S EQUITY RETAINED EARNINGS Cash = Common Stock + Paid in capital in excess of par - Common + Preference Stock PIC in excess of par Pref Shares Treasury Stock + Revenue - Expenses - Dividend 1) June - 12 $ 3,07,500 = 82000 $ 2,25,500 (82,000 Shares X 1) (Balance amount) 2) July - 11 $ 2,80,000 = $ 2,62,500 $ 17,500 (2500 Shares X 105) (Balance) 3) Nov, 28 $ -9,200 = $ 9,200
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