Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter B, Problem 16SEB
To determine
Describe the effect the each transaction on liabilities and
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You were able to obtain the following from the accountant for Agdangan Corp. related to the company’s liabilities as of December 31, 2007.Accounts payable P650,000
Notes payable – trade 190,000
Notes payable – bank 800,000
Wages and salaries payable 15,000
Interest payable ?
Mortgage notes payable – 10% 60,000
Mortgage notes payable – 12% 1,500,000
Bonds payable 2,000,000
The following additional information pertains to these liabilities.
All trade notes payable are due within six months of the balance sheet date.Bank notes-payable include two separate notes payable to Allied Bank.
a. A P300,000, 8% note issued March 1, 2005, payable on demand. Interest is payable every six months.
b. A 1-year, P500,000, 11 ½% note issued January 2, 2007. On December 30, 2007, Agdangan negotiated a written agreement with Allied Bank to replace the note with a 2-year, P500,000 10% note to be issued January 2,2008. The interest was paid on December 31, 2007.
The 10% mortgage note was issued October 1,…
Norbert Corporation borrowed $24,000 on December 1, 2011, by issuing a two-month, 8 percentnote payable to Service One Credit Union. The entire amount of the loan, plus interest, is dueFebruary 1, 2012.a. Prepare the necessary adjusting entry for interest expense on December 31, 2011.b. Record the repayment of the loan plus interest on February 1, 2012.
Zirkle Company borrowed $129,000 from Plains Bank on July 31, Year 1. The note carried a 6% interest rate with a one-year term to
maturity
Required:
a. Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation.
b. What is the amount of interest expense for Year 1?
c. Prepare a statement of cash flows for the Zirkle Company for Year 1.
Complete this question by entering your answers in the tabs below.
Required A Required B
Required C
Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation.
Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed.
ZIRKLE COMPANY
Effect of Adjustment on the Accounting Equation
Event
Year 1
July 31
December 31
December 31, Year 1
Assets
Liabilities
Stockholders'
Equity
Raquinad A
Required B >
13
Chapter B Solutions
Financial Accounting
Ch. B - Indicate whether each of the following accounts...Ch. B - Prob. 2YTCh. B - Prob. 1QCh. B - Prob. 2QCh. B - Prob. 3QCh. B - Prob. 4QCh. B - Prob. 5QCh. B - Prob. 6QCh. B - Prob. 7QCh. B - Prob. 8Q
Ch. B - Prob. 9QCh. B - Prob. 1MCQCh. B - Prob. 2MCQCh. B - Prob. 3MCQCh. B - Prob. 4MCQCh. B - Prob. 5MCQCh. B - Prob. 6MCQCh. B - Prob. 7MCQCh. B - Prob. 8MCQCh. B - Prob. 9MCQCh. B - Prob. 10MCQCh. B - Prob. 1SEACh. B - Prob. 2SEACh. B - Prob. 3SEACh. B - Prob. 4SEACh. B - Prob. 5SEACh. B - Prob. 6SEACh. B - Prob. 7SEACh. B - Prob. 8SEACh. B - Prob. 9SEACh. B - Prob. 10SEBCh. B - Prob. 11SEBCh. B - Prob. 12SEBCh. B - Prob. 13SEBCh. B - Prob. 14SEBCh. B - Prob. 15SEBCh. B - Prob. 16SEBCh. B - Prob. 17SEBCh. B - Prob. 18SEBCh. B - Prob. 19EACh. B - Prob. 20EACh. B - Record transactions to T-accounts and prepare an...Ch. B - Prob. 22EACh. B - Prob. 23EACh. B - Record closing entries and compute net income. (LO...Ch. B - Record journal entries, record adjusting entries,...Ch. B - Record journal entries, post to T-accounts, and...Ch. B - Prob. 27EBCh. B - Prob. 28EBCh. B - Prob. 29EBCh. B - Prob. 30EBCh. B - Prob. 31EBCh. B - Prob. 32EBCh. B - Prob. 33EBCh. B - Prob. 34EBCh. B - Prepare a trial balance and financial statements....Ch. B - Record journal entries, post to T-accounts, and...Ch. B - Prepare closing entries and financial statements....Ch. B - Record adjusting journal entries, post to...Ch. B - Prob. 39PACh. B - Prob. 40PACh. B - Prob. 41PACh. B - Prob. 42PACh. B - Prob. 43PBCh. B - Prob. 44PBCh. B - Prob. 45PBCh. B - Prob. 46PBCh. B - Prob. 47PBCh. B - Prob. 48PBCh. B - Prob. 49PBCh. B - Prob. 50PBCh. B - Prob. 51FSACh. B - Prob. 52CTP
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The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License