Selected information for 2014 for the Truly Green Company follows: Total operating expenses (accrual basis) (includes depreciation and amortization) $200,000 Beginning prepaid expenses 10,000 Ending prepaid expenses 12,000 Beginning accrued liabilities 16,000 Ending accrued liabilities 19,000 Depreciation of plant assets 28,000 Amortization of intangible assets 7.500 Payment of cash dividends 5,000 The amount of cash payments made during 2014 for operating expenses is: $234,500. $165,500. […]

The following data relate to the Greg Norman Corporation: Beginning inventory $14,000 Ending inventory 12,000 Beginning accounts payable (for merchandise) 2,200 Ending accounts payable (for merchandise) 1,600 Cost of goods sold (accrual basis) 92,000 The amount of cash payments to suppliers for merchandise during the period is: $94,600. $93,400. $90,600. $89,400.

This exercise will test your understanding of the postings that appear in a subsidiary ledger. Presented below is the account for the vendor, Kitchen Plastics Company, as it appears in the accounts payable subsidiary ledger of Great Value Hardware. KITCHEN PLASTICS COMPANY Date Ref. Debit Credit Balance 2014 Jan. 1 17,000 3 P17 22,000 39,000 8 P18 13,000 52,000 9 CP25 17,000 35,000 11 G5 […]

This exercise will help you identify the journal in which to record specific transactions. A list of abbreviations and a list of transactions (in random order) follow: Abbreviations S = Two-Column Sales Journal CR = Multiple-Column Cash Receipts Journal P = Single-Column Purchases Journal CP = Multiple-Column Cash Payments Journal GJ = Two-Column General Journal Instructions For each transaction, indicate the journal in which it […]

This exercise reviews general ledger accounts and postings to them from special journals. A list of abbreviations and a list of postings to general ledger accounts (in random order) follow: Abbreviations S = Two-Column Sales Journal CR = Multiple-Column Cash Receipts Journal P = Single-Column Purchases Journal CP = Multiple-Column Cash Payments Journal GJ = Two-Column General Journal Instructions For each of the postings to […]

Show by means of journal entries how will you record the following issues: Also show how they will appear in their respective balance sheets: A Ltd. issued 10,000, 10% debentures of Rs.100 each at a discount of 5% redeemable at the end of 5 years at par B Ltd. issued 10,000, 11% debentures of Rs.100 each at par redeemable at the end of 5 years […]

X Ltd. issued Rs.24,00,000 debentures during 2009 on the following terms and conditions: A sinking fund to be created by yearly appropriations of profit and similar amount to be invested outside. The company will have the right to purchase for cancellation of debentures from the market if available below par value. The debentures are to be redeemed on 31 December 2010 at a premium of […]

Using a financial calculator, solve for the unknowns in each of the following situations. (a)On June 1, 2014, Holly Golightly purchases lakefront property from her neighbor, George Peppard, and agrees to pay the purchase price in seven payments of $16,000 each, the first payment to be payable June 1, 2015. (Assume that interest compounded at an annual rate of 7.35% is implicit in the payments.) […]

The following balances appeared in the books of Cheerful Ltd. as on 1 April 2010: 12% Debentures 10,00,000 (Face Value 100) Debentures Redemption Fund 6,25,000 Debentures Redemption Fund 6,25,000 Investments (In 8% Government Bonds of the Face Value of Rs.7,50,000) Interest on the debentures was payable on 30 September and 31 March and interest on government bonds was receivable on the same dates. On 31 […]

Using a financial calculator, provide a solution to each of the following situations. (a)Lynn Anglin owes a debt of $35,000 from the purchase of her new sport utility vehicle. The debt bears annual interest of 9.1% compounded monthly. Lynn wishes to pay the debt and interest in equal monthly payments over 8 years, beginning one month hence. What equal monthly payments will pay off the […]