Class : ACC-200-2780-Intro to Accounting & Finance

Class : ACC-200-2780-Intro to Accounting & Finance
Assignment : Week Six Exercises
Category :
Due Date : Mon, Sep 12, 2016 11:55 PM MST
Detail :
Complete the following assignments from the text:

Chapter 7

Exercise 7-1
Exercise 7-18
Chapter 8

Exercise 8-4a, b, c
Chapter 9

Exercise 9-11
Exercise 9-12
Exercise 7-1

Recognizing accrued interest expense

Harveys Corporation borrowed $60,000 from the bank on November 1, 2014. The note had a 6 percent annual rate of interest and matured on April 30, 2015. Interest and principal were paid in cash on the maturity date.
Required

a. What amount of interest expense was paid in cash in 2014?
b. What amount of interest expense was reported on the 2014 income statement?
c. What amount of total liabilities was reported on the December 31, 2014, balance sheet?
d. What total amount of cash was paid to the bank on April 30, 2015, for principal and interest?
e. What amount of interest expense was reported on the 2015 income statement?

Exercise 7-18

Determining the amount of bond premiums and discounts

Required

For each of the following situations, calculate the amount of bond discount or premium, if any:
a. Wolfe Co. issued $120,000 of 6 percent bonds at 101.
b. Riley, Inc., issued $80,000 of 10-year, 8 percent bonds at 98.
c. Rais, Inc., issued $200,000 of 15-year, 9 percent bonds at 102¼.
d. Beaux Co. issued $400,000 of 20-year, 8 percent bonds at 99¾.
Exercise 8-4

Effect of issuing common stock on the balance sheet

Newly formed Electronics Services Corporation has 100,000 shares of $10 par common stock authorized. On March 1, 2014, Electronics Services issued 20,000 shares of the stock for $12 per share. On May 2 the company issued an additional 30,000 shares for $15 per share. Electronics Services was not affected by other events during 2014.
Required

Record the transactions in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element was not affected by the event.
b. Determine the amount Electronics Services would report for common stock on the December 31, 2014, balance sheet.
c. Determine the amount Electronics Services would report for paid-in capital in excess of par.

Exercise 9-11
Accounts receivable turnover, inventory turnover, and net margin

Selected data from Komar Company follow.