Edge Co., a toy manufacturer, is in the process of preparing its financial statements for theyear ended December 31, Year 8. Edge expects to issue its Year 8 financial statements onMarch 1, Year 9.For each item, two responses are required. Select from the option lists provided theappropriate adjustment amount, if any, and whether additional disclosure is required,either on the face of or in the notes for each financial statement below. Each choice may beused once, more than once, or not at all. If no adjustment is necessary, select "No entryrequired" in the Adjusted amount column and continue to the Additional disclosurerequired column.Show Transcribed Text5. On January 30, Year 9, Edge issued$10 million bonds at a premium of $500,000.6. On February 4, Year 8, the IRS assessedEdge an additional $400,000 for the Year 4 taxyear. Edge's tax attorneys and tax accountantshave stated that it is likely that the IRS willagree to a $100,000 settlement.C!!!!

The adjustments are required at the time when the financial statements are prepared as those are…

Answered: 5. On January 30, Year 9, Edge issued…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2018, to advance Jeff $30,000 on a one-year, 7 percent note, with interest to be paid at maturity on February 28, 2019. CSM prepares financial statements on June 30 and December 31. Prepare the journal entry CSM will make when the note is established, accrue interest on June 30 and December 31, and the interest and principal payments on February 28, 2019. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount.) Record the receipt of a note on February 28, 2018 for a $30,000 loan to an employee. (Note: Enter debits before credits.) Date General Journal Debit Credit Feb 28, 2018 [ ] […
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