Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 6, Problem 6.7BE
Classified
BE6-6. Classified Balance Sheet, Report Format. Martell Manufacturing Incorporated provided the following list of account balances for the current year ended December 31.
Account | Debit | Credit |
$ 300,000 | ||
Bonds payable, due in 20 years | $ 400,000 | |
Investments at fair value (trading) | 58,000 | |
Accounts payable | 175,000 | |
Additional paid-in capital | 587,000 | |
Accumulated other comprehensive loss | 165,300 | |
Current portion of long-term debt | 25,000 | |
Property, plant, and equipment - net | 1,264,500 | |
Dividends payable | 135.000 | |
Merchandise inventory | 254,000 | |
Income taxes payable | 65,800 | |
Cash | 145,000 | |
Notes payable, due in 5 years | 138,500 | |
625,500 | ||
Common stock, $1 par value | — | 35,000 |
Totals | $2,186,800 | $2,186,800 |
Prepare a classified balance sheet for the current year using the report format.
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The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:
Required: 1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. 3. Determine the carrying amount of the bonds as of December 31, 20Y2.
1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.
2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2.
3. Determine the carrying amount of the bonds as of December 31, 20Y2.
(Refer to image, thank you!)
Complete the necessary journal entry for June 30 by selecting the account names from the drop-down menus and entering the dollar
amounts in the debit or credit columns.
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Journal entry worksheet
1
On December 31 Spearmint, Inc., issued $450,000 of 9 percent, 3-year bonds
for cash of $461,795. After recording the related entry, Bonds Payable had a
balance of $450,000 and Premium on Bonds Payable had a balance of
$11,795. Spearmint uses the straight-line bond amortization method. The first
Note: Enter debits before credits.
General Journal
Debit
Credit
Date
June 30
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Chapter 6 Solutions
Intermediate Accounting
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