“Homework
Assignment #3 Name:
___________________________________
Part 1: At December 31, 2012, Silver Traders Company had the following trial
balance.
Silver Traders Company
Unadjusted
Trial Balance
12/31/12
Dr
Cr
Cash
360,000
Accounts Receivable
60,000
Allowance for Doubtful Accounts
3,000
Short Term Note Receivable
24,000
Supplies
6,000
Inventory
65,000
Equipment
195,000
Building
Accumulated Depreciation
75,000
Copyright
44,000
Accounts Payable
45,000
Dividends Payable
Interest Payable
Unearned Revenue
33,000
ST Note Payable
15,000
LT Mortgage Payable
Bonds Payable
200,000
Premium on Bonds Payable
13,000
Common Stock – $1par
2,000
Additional Paid in Capital CS
87,000
Preferred Stock – $5 par
1,000
Additional Paid in Capital PS
50,000
Treasury Stock
Retained Earnings
105,000
Dividends
6,000
Sales
924,000
Sales Returns & Allowances
4,000
Sales Discounts
9,000
Cost of Goods Sold
385,000
Bad Debts Expense
Depreciation Expense
50,000
Wages Expense
260,000
Rent Expense
65,000
Insurance Expense
16,000
Supplies Expense
7,000
Interest Revenue
1,000
Interest Expense
9,000
Gain on Sale of Equipment
15,000
Income Tax Expense
4,000
Total
1,569,000
1,569,000
Instructions: You must turn in
the work performed on the sheets printed with this page. This WILL NOT BE ACCEPTED ON PLAIN PAPER.
Write the journal entries (on the following General Journal
page) required for each of the events described below.
Use ONLY the
accounts listed on the trial balance for your journal entries.
These transactions may not be in chronological order,
it is ok to do the journal entries in the order given.
Post the transactions to individual T-accounts and
prepare an adjusted trial balance for The Kash Leasing Company as of
December 31, 2012.
1.
The company last paid interest on the ST note payable on November
1, 2012. Record the accrued interest expense for the
last 2 months of 2012. The annual
interest rate is 6.5%. Round to nearest whole dollar.
2.
On Jan 1, 2012, the company issued 10%, 10-year bonds when
the market rate for similar investments is 8%.
The company pays interest each year on January 1st. Using the effective interest method of
amortizing the premium on bonds payable, accrue the interest expense as of
December 31, 2012. Round to nearest whole dollar for your interest expense calculation.
3.
The company previously collected cash for sales that were to
be completed in the future. The company
completed some of these sales during December and now owes only $18,000 of that
unearned sales revenue. Record the necessary adjustment for December 31st,
2012.
4.
The company purchased a building November 30th
with a LT Mortgage Payable of $150,000 at 8% interest. Record the purchase of
the building.
5.
The above mortgage payables terms require the company to
make installment payments over the term of the loan. Each payment consists of interest on the
unpaid balance of the loan and a reduction of loan principal. Record the first monthly
payment of $1,850 on the LT Mortgage Payable on December 31st.
6.
On December 30th, 2012, the company purchased 50
shares of its own Preferred Stock for Treasury Stock for $13 per share.
7.
The company issued 500 shares of Common Stock for $6,000 on
December 25th.
8.
On December 29th the company declared a cash
dividend of $2.00 per share for common stock on the shares issued and declared (including the additional 500 shares
declared on December 25th.)
GENERAL JOURNAL
DATE
ACCOUNT
NAME
DEBIT
CREDIT
Use the space below for T-accounts (REQUIRED FOR GRADING). For each account in the journal
entries, you will need to adjust the balance from the preliminary trial balance
with the debit or credit from the journal entry. You only need to do T-accounts
for those accounts that change from the JEs.
Silver Traders Company
ADJUSTED TRIAL BALANCE
12/31/12
Dr
Cr
Cash
Accounts Receivable
Allowance for Doubtful Accounts
Short Term Note Receivable
Supplies
Inventory
Equipment
Building
Accumulated Depreciation
Copyright
Accounts Payable
Dividends Payable
Interest Payable
Unearned Revenue
ST Note Payable
LT Mortgage Payable
Bonds Payable
Premium on Bonds Payable
Common Stock – $1par
Additional Paid in Capital CS
Preferred Stock – $5 par
Additional Paid in Capital PS
Treasury Stock
Retained Earnings
Dividends
Sales
Sales Returns & Allowances
Sales Discounts
Cost of Goods Sold
Bad Debts Expense
Depreciation Expense
Wages Expense
Rent Expense
Insurance Expense
Supplies Expense
Interest Revenue
Interest Expense
Gain on Sale of Equipment
Income Tax Expense
Total
If this company had a CS 3-1 stock split on Dec 31st
2012:
How many shares would there be after the split?
What is the par value per share in dollars?
How many shares are outstanding at 12/31/2012?
What is the effect on the accounting equation when the
Treasury Stock is purchased?
Does the Carrying Value of the Bonds Payable and
Premium increase or decrease over the life of the bonds?
What will be the balance in the Mortgage Payable
Account at Jan 31st after the second monthly payment is made.
The Company is about to issue $2,000,000 of 5-year, 10%
bonds. Interest will be paid
semi-annually. The market interest rate for such securities is 8%. How
much can The Company expect to receive from the sale (issuance) of
these bonds?
Part 2: NOTE: This
is a DIFFERENT COMPANY. Using the
trial balance below, complete the Multi-Step
Income Statement and prepare the Statement
of Retained Earnings and Classified
Balance Sheet on the pages which follow. To get full credit you must include all critical subtotals.
Klara Kay Company
Adjusted Trial
Balance
December 31, 2012
DEBIT
CREDIT
Cash
1,600
Accounts
Receivable
2,560
Allowance
for Uncollectible Accounts
670
Short
term Note Receivable
200
Interest
Receivable
20
Supplies
30
Inventory
3,000
Prepaid
Expenses
150
Equipment
10,720
Accumulated
Depreciation
1,970
Copyrights
600
Accounts
Payable
370
Interest
Payable
20
Unearned
Revenue
40
Long
Term Note Payable
1,400
Common
Stock
7,600
Addl
Paid-in-Capital
800
Retained
Earnings (1/1/12)
3,160
Dividends
600
Sales
36,900
Sales
Returns & Allowances
40
Sales
Discounts
60
Cost
of Goods Sold
22,200
Bad
debt expense
30
Depreciation
Expense
770
Amortization
Expense
70
Wages
Expense
8,000
Rent
Expense
500
Office
Expense
80
Supplies
Expense
100
Selling
Expense
800
Interest
Expense
200
Interest
Revenue
150
Income
Tax Expense
750
Totals
53,080
53,080
Klara Kay Company
Multi Step Income Statement
For the year ended December 31, 2012
Klara Kay Company
Statement of Retained Earnings
For the
year ended December 31, 2012
Klara Kay Company
Classified Balance Sheet
December 31, 2012
Homework
Assignment #3 Name:
___________________________________ Part 1: At December 31, 2012, Silver Traders Company had the following trial
balance. Unadjusted
Trial Balance12/31/12DrCrCash360,000Accounts Receivable60,000Allowance for Doubtful Accounts3,000Short Term Note Receivable24,000Supplies6,000Inventory65,000Equipment195,000BuildingAccumulated Depreciation75,000Copyright44,000Accounts Payable45,000Dividends PayableInterest PayableUnearned Revenue33,000ST Note Payable15,000LT Mortgage PayableBonds Payable200,000Premium on Bonds Payable13,000Common Stock – $1par2,000Additional Paid in Capital CS87,000Preferred Stock – $5 par1,000Additional Paid in Capital PS50,000Treasury StockRetained Earnings105,000Dividends6,000Sales924,000Sales Returns & Allowances4,000Sales Discounts9,000Cost of Goods Sold385,000Bad Debts ExpenseDepreciation Expense50,000Wages Expense260,000Rent Expense65,000Insurance Expense16,000Supplies Expense7,000Interest Revenue1,000Interest Expense9,000Gain on Sale of Equipment15,000Income Tax Expense4,000Total1,569,0001,569,000Instructions: You must turn in
the work performed on the sheets printed with this page. This WILL NOT BE ACCEPTED ON PLAIN PAPER.1.
The company last paid interest on the ST note payable on November
1, 2012. Record the accrued interest expense for the
last 2 months of 2012. The annual
interest rate is 6.5%. Round to nearest whole dollar.2.
On Jan 1, 2012, the company issued 10%, 10-year bonds when
the market rate for similar investments is 8%.
The company pays interest each year on January 1st. Using the effective interest method of
amortizing the premium on bonds payable, accrue the interest expense as of
December 31, 2012. Round to nearest whole dollar for your interest expense calculation.3.
The company previously collected cash for sales that were to
be completed in the future. The company
completed some of these sales during December and now owes only $18,000 of that
unearned sales revenue. Record the necessary adjustment for December 31st,
2012.4.
The company purchased a building November 30th
with a LT Mortgage Payable of $150,000 at 8% interest. Record the purchase of
the building. 5.
The above mortgage payables terms require the company to
make installment payments over the term of the loan. Each payment consists of interest on the
unpaid balance of the loan and a reduction of loan principal. Record the first monthly
payment of $1,850 on the LT Mortgage Payable on December 31st. 6.
On December 30th, 2012, the company purchased 50
shares of its own Preferred Stock for Treasury Stock for $13 per share.7.
The company issued 500 shares of Common Stock for $6,000 on
December 25th.8.
On December 29th the company declared a cash
dividend of $2.00 per share for common stock on the shares issued and declared (including the additional 500 shares
declared on December 25th.) GENERAL JOURNALDATEACCOUNT
NAMEDEBITCREDITUse the space below for T-accounts (REQUIRED FOR GRADING). For each account in the journal
entries, you will need to adjust the balance from the preliminary trial balance
with the debit or credit from the journal entry. You only need to do T-accounts
for those accounts that change from the JEs.
Silver Traders Company ADJUSTED TRIAL BALANCE12/31/12DrCrCashAccounts ReceivableAllowance for Doubtful AccountsShort Term Note ReceivableSuppliesInventoryEquipmentBuildingAccumulated DepreciationCopyrightAccounts PayableDividends PayableInterest PayableUnearned RevenueST Note PayableLT Mortgage PayableBonds PayablePremium on Bonds PayableCommon Stock – $1parAdditional Paid in Capital CSPreferred Stock – $5 parAdditional Paid in Capital PSTreasury StockRetained EarningsDividendsSalesSales Returns & AllowancesSales DiscountsCost of Goods SoldBad Debts ExpenseDepreciation ExpenseWages ExpenseRent ExpenseInsurance ExpenseSupplies ExpenseInterest RevenueInterest ExpenseGain on Sale of EquipmentIncome Tax Expense
TotalPart 2: NOTE: This
is a DIFFERENT COMPANY. Using the
trial balance below, complete the Multi-Step
Income Statement and prepare the Statement
of Retained Earnings and Classified
Balance Sheet on the pages which follow. To get full credit you must include all critical subtotals.Klara Kay CompanyAdjusted Trial
BalanceDecember 31, 2012DEBITCREDITCash1,600Accounts
Receivable2,560Allowance
for Uncollectible Accounts670Short
term Note Receivable200Interest
Receivable 20Supplies30Inventory3,000Prepaid
Expenses150Equipment10,720Accumulated
Depreciation1,970Copyrights600Accounts
Payable370Interest
Payable20Unearned
Revenue40Long
Term Note Payable1,400Common
Stock7,600Addl
Paid-in-Capital800Retained
Earnings (1/1/12)3,160Dividends600Sales36,900Sales
Returns & Allowances40Sales
Discounts60Cost
of Goods Sold22,200Bad
debt expense30Depreciation
Expense770Amortization
Expense70Wages
Expense8,000Rent
Expense500Office
Expense80Supplies
Expense100Selling
Expense800Interest
Expense200Interest
Revenue150Income
Tax Expense750Totals53,08053,080Klara Kay CompanyMulti Step Income StatementFor the year ended December 31, 2012Klara Kay CompanyStatement of Retained EarningsKlara Kay CompanyClassified Balance SheetDecember 31, 2012”
“Homework
Assignment #3 Name:
___________________________________
Part 1: At December 31, 2012, Silver Traders Company had the following trial
balance.
Silver Traders Company
Unadjusted
Trial Balance
12/31/12
Dr
Cr
Cash
360,000
Accounts Receivable
60,000
Allowance for Doubtful Accounts
3,000
Short Term Note Receivable
24,000
Supplies
6,000
Inventory
65,000
Equipment
195,000
Building
Accumulated Depreciation
75,000
Copyright
44,000
Accounts Payable
45,000
Dividends Payable
Interest Payable
Unearned Revenue
33,000
ST Note Payable
15,000
LT Mortgage Payable
Bonds Payable
200,000
Premium on Bonds Payable
13,000
Common Stock – $1par
2,000
Additional Paid in Capital CS
87,000
Preferred Stock – $5 par
1,000
Additional Paid in Capital PS
50,000
Treasury Stock
Retained Earnings
105,000
Dividends
6,000
Sales
924,000
Sales Returns & Allowances
4,000
Sales Discounts
9,000
Cost of Goods Sold
385,000
Bad Debts Expense
Depreciation Expense
50,000
Wages Expense
260,000
Rent Expense
65,000
Insurance Expense
16,000
Supplies Expense
7,000
Interest Revenue
1,000
Interest Expense
9,000
Gain on Sale of Equipment
15,000
Income Tax Expense
4,000
Total
1,569,000
1,569,000
Instructions: You must turn in
the work performed on the sheets printed with this page. This WILL NOT BE ACCEPTED ON PLAIN PAPER.
Write the journal entries (on the following General Journal
page) required for each of the events described below.
Use ONLY the
accounts listed on the trial balance for your journal entries.
These transactions may not be in chronological order,
it is ok to do the journal entries in the order given.
Post the transactions to individual T-accounts and
prepare an adjusted trial balance for The Kash Leasing Company as of
December 31, 2012.
1.
The company last paid interest on the ST note payable on November
1, 2012. Record the accrued interest expense for the
last 2 months of 2012. The annual
interest rate is 6.5%. Round to nearest whole dollar.
2.
On Jan 1, 2012, the company issued 10%, 10-year bonds when
the market rate for similar investments is 8%.
The company pays interest each year on January 1st. Using the effective interest method of
amortizing the premium on bonds payable, accrue the interest expense as of
December 31, 2012. Round to nearest whole dollar for your interest expense calculation.
3.
The company previously collected cash for sales that were to
be completed in the future. The company
completed some of these sales during December and now owes only $18,000 of that
unearned sales revenue. Record the necessary adjustment for December 31st,
2012.
4.
The company purchased a building November 30th
with a LT Mortgage Payable of $150,000 at 8% interest. Record the purchase of
the building.
5.
The above mortgage payables terms require the company to
make installment payments over the term of the loan. Each payment consists of interest on the
unpaid balance of the loan and a reduction of loan principal. Record the first monthly
payment of $1,850 on the LT Mortgage Payable on December 31st.
6.
On December 30th, 2012, the company purchased 50
shares of its own Preferred Stock for Treasury Stock for $13 per share.
7.
The company issued 500 shares of Common Stock for $6,000 on
December 25th.
8.
On December 29th the company declared a cash
dividend of $2.00 per share for common stock on the shares issued and declared (including the additional 500 shares
declared on December 25th.)
GENERAL JOURNAL
DATE
ACCOUNT
NAME
DEBIT
CREDIT
Use the space below for T-accounts (REQUIRED FOR GRADING). For each account in the journal
entries, you will need to adjust the balance from the preliminary trial balance
with the debit or credit from the journal entry. You only need to do T-accounts
for those accounts that change from the JEs.
Silver Traders Company
ADJUSTED TRIAL BALANCE
12/31/12
Dr
Cr
Cash
Accounts Receivable
Allowance for Doubtful Accounts
Short Term Note Receivable
Supplies
Inventory
Equipment
Building
Accumulated Depreciation
Copyright
Accounts Payable
Dividends Payable
Interest Payable
Unearned Revenue
ST Note Payable
LT Mortgage Payable
Bonds Payable
Premium on Bonds Payable
Common Stock – $1par
Additional Paid in Capital CS
Preferred Stock – $5 par
Additional Paid in Capital PS
Treasury Stock
Retained Earnings
Dividends
Sales
Sales Returns & Allowances
Sales Discounts
Cost of Goods Sold
Bad Debts Expense
Depreciation Expense
Wages Expense
Rent Expense
Insurance Expense
Supplies Expense
Interest Revenue
Interest Expense
Gain on Sale of Equipment
Income Tax Expense
Total
If this company had a CS 3-1 stock split on Dec 31st
2012:
How many shares would there be after the split?
What is the par value per share in dollars?
How many shares are outstanding at 12/31/2012?
What is the effect on the accounting equation when the
Treasury Stock is purchased?
Does the Carrying Value of the Bonds Payable and
Premium increase or decrease over the life of the bonds?
What will be the balance in the Mortgage Payable
Account at Jan 31st after the second monthly payment is made.
The Company is about to issue $2,000,000 of 5-year, 10%
bonds. Interest will be paid
semi-annually. The market interest rate for such securities is 8%. How
much can The Company expect to receive from the sale (issuance) of
these bonds?
Part 2: NOTE: This
is a DIFFERENT COMPANY. Using the
trial balance below, complete the Multi-Step
Income Statement and prepare the Statement
of Retained Earnings and Classified
Balance Sheet on the pages which follow. To get full credit you must include all critical subtotals.
Klara Kay Company
Adjusted Trial
Balance
December 31, 2012
DEBIT
CREDIT
Cash
1,600
Accounts
Receivable
2,560
Allowance
for Uncollectible Accounts
670
Short
term Note Receivable
200
Interest
Receivable
20
Supplies
30
Inventory
3,000
Prepaid
Expenses
150
Equipment
10,720
Accumulated
Depreciation
1,970
Copyrights
600
Accounts
Payable
370
Interest
Payable
20
Unearned
Revenue
40
Long
Term Note Payable
1,400
Common
Stock
7,600
Addl
Paid-in-Capital
800
Retained
Earnings (1/1/12)
3,160
Dividends
600
Sales
36,900
Sales
Returns & Allowances
40
Sales
Discounts
60
Cost
of Goods Sold
22,200
Bad
debt expense
30
Depreciation
Expense
770
Amortization
Expense
70
Wages
Expense
8,000
Rent
Expense
500
Office
Expense
80
Supplies
Expense
100
Selling
Expense
800
Interest
Expense
200
Interest
Revenue
150
Income
Tax Expense
750
Totals
53,080
53,080
Klara Kay Company
Multi Step Income Statement
For the year ended December 31, 2012
Klara Kay Company
Statement of Retained Earnings
For the
year ended December 31, 2012
Klara Kay Company
Classified Balance Sheet
December 31, 2012
Homework
Assignment #3 Name:
___________________________________ Part 1: At December 31, 2012, Silver Traders Company had the following trial
balance. Unadjusted
Trial Balance12/31/12DrCrCash360,000Accounts Receivable60,000Allowance for Doubtful Accounts3,000Short Term Note Receivable24,000Supplies6,000Inventory65,000Equipment195,000BuildingAccumulated Depreciation75,000Copyright44,000Accounts Payable45,000Dividends PayableInterest PayableUnearned Revenue33,000ST Note Payable15,000LT Mortgage PayableBonds Payable200,000Premium on Bonds Payable13,000Common Stock – $1par2,000Additional Paid in Capital CS87,000Preferred Stock – $5 par1,000Additional Paid in Capital PS50,000Treasury StockRetained Earnings105,000Dividends6,000Sales924,000Sales Returns & Allowances4,000Sales Discounts9,000Cost of Goods Sold385,000Bad Debts ExpenseDepreciation Expense50,000Wages Expense260,000Rent Expense65,000Insurance Expense16,000Supplies Expense7,000Interest Revenue1,000Interest Expense9,000Gain on Sale of Equipment15,000Income Tax Expense4,000Total1,569,0001,569,000Instructions: You must turn in
the work performed on the sheets printed with this page. This WILL NOT BE ACCEPTED ON PLAIN PAPER.1.
The company last paid interest on the ST note payable on November
1, 2012. Record the accrued interest expense for the
last 2 months of 2012. The annual
interest rate is 6.5%. Round to nearest whole dollar.2.
On Jan 1, 2012, the company issued 10%, 10-year bonds when
the market rate for similar investments is 8%.
The company pays interest each year on January 1st. Using the effective interest method of
amortizing the premium on bonds payable, accrue the interest expense as of
December 31, 2012. Round to nearest whole dollar for your interest expense calculation.3.
The company previously collected cash for sales that were to
be completed in the future. The company
completed some of these sales during December and now owes only $18,000 of that
unearned sales revenue. Record the necessary adjustment for December 31st,
2012.4.
The company purchased a building November 30th
with a LT Mortgage Payable of $150,000 at 8% interest. Record the purchase of
the building. 5.
The above mortgage payables terms require the company to
make installment payments over the term of the loan. Each payment consists of interest on the
unpaid balance of the loan and a reduction of loan principal. Record the first monthly
payment of $1,850 on the LT Mortgage Payable on December 31st. 6.
On December 30th, 2012, the company purchased 50
shares of its own Preferred Stock for Treasury Stock for $13 per share.7.
The company issued 500 shares of Common Stock for $6,000 on
December 25th.8.
On December 29th the company declared a cash
dividend of $2.00 per share for common stock on the shares issued and declared (including the additional 500 shares
declared on December 25th.) GENERAL JOURNALDATEACCOUNT
NAMEDEBITCREDITUse the space below for T-accounts (REQUIRED FOR GRADING). For each account in the journal
entries, you will need to adjust the balance from the preliminary trial balance
with the debit or credit from the journal entry. You only need to do T-accounts
for those accounts that change from the JEs.
Silver Traders Company ADJUSTED TRIAL BALANCE12/31/12DrCrCashAccounts ReceivableAllowance for Doubtful AccountsShort Term Note ReceivableSuppliesInventoryEquipmentBuildingAccumulated DepreciationCopyrightAccounts PayableDividends PayableInterest PayableUnearned RevenueST Note PayableLT Mortgage PayableBonds PayablePremium on Bonds PayableCommon Stock – $1parAdditional Paid in Capital CSPreferred Stock – $5 parAdditional Paid in Capital PSTreasury StockRetained EarningsDividendsSalesSales Returns & AllowancesSales DiscountsCost of Goods SoldBad Debts ExpenseDepreciation ExpenseWages ExpenseRent ExpenseInsurance ExpenseSupplies ExpenseInterest RevenueInterest ExpenseGain on Sale of EquipmentIncome Tax Expense
TotalPart 2: NOTE: This
is a DIFFERENT COMPANY. Using the
trial balance below, complete the Multi-Step
Income Statement and prepare the Statement
of Retained Earnings and Classified
Balance Sheet on the pages which follow. To get full credit you must include all critical subtotals.Klara Kay CompanyAdjusted Trial
BalanceDecember 31, 2012DEBITCREDITCash1,600Accounts
Receivable2,560Allowance
for Uncollectible Accounts670Short
term Note Receivable200Interest
Receivable 20Supplies30Inventory3,000Prepaid
Expenses150Equipment10,720Accumulated
Depreciation1,970Copyrights600Accounts
Payable370Interest
Payable20Unearned
Revenue40Long
Term Note Payable1,400Common
Stock7,600Addl
Paid-in-Capital800Retained
Earnings (1/1/12)3,160Dividends600Sales36,900Sales
Returns & Allowances40Sales
Discounts60Cost
of Goods Sold22,200Bad
debt expense30Depreciation
Expense770Amortization
Expense70Wages
Expense8,000Rent
Expense500Office
Expense80Supplies
Expense100Selling
Expense800Interest
Expense200Interest
Revenue150Income
Tax Expense750Totals53,08053,080Klara Kay CompanyMulti Step Income StatementFor the year ended December 31, 2012Klara Kay CompanyStatement of Retained EarningsKlara Kay CompanyClassified Balance SheetDecember 31, 2012”
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