Assignment: PRINCIPLES OF ACCOUNTING
1. On January 1, 2017, Candlestick, Inc. sells $100,000, five-year, 10% bonds for 92.639% of face value. On the other hand the same company sells 108.111% of face value on July 1, 2017. Pass the necessary journal entry for issuance of bonds.
2. A company is authorized to issue 800,000 shares of $6 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:
|
March. 8
|
Sold 110,000 shares of common stock for $9 cash per share.
|
|
March12
|
Exchanged 12,000 shares of common stock for equipment with a market value of $90,000.
|
3. Use the following calendar-year information to prepare Ibrahim Company's statement of cash flows using the direct method:
|
Cash paid to purchase machinery
|
$ 124,000
|
|
Cash paid for merchandise inventory
|
220,000
|
|
Cash paid for operating expenses
|
280,000
|
|
Cash paid for interest
|
4,000
|
|
Cash received for interest
|
10,000
|
|
Cash proceeds from sale of land
|
100,000
|
|
Cash balance at beginning of year
|
15,000
|
|
Cash balance at end of year
|
77,000
|
|
Cash borrowed on a short-term note
|
25,000
|
|
Cash dividends paid
|
24,000
|
|
Cash received from stock issuance
|
57,000
|
|
Cash collections from customers
|
522,000
|
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.