You may also write the journal entries to record each

Question

Transaction analysis-various accounts Enter the following column headings across the top of a sheet of paper:

Transaction/	Current	Noncurrent	Current	Noncurrent Stockholders'	Net
Adjustment	Assets	Assets	Liabilities	Liabilities Equity	Income

 

Enter the transaction/adjustment letter in the first column and show the effect, if any, of each transaction/adjustment on the appropriate balance sheet category or on net income by entering for each category affected the account name and amount, and in- dicating whether it is an addition (1) or a subtraction (-). Items that affect net income should not also be shown as affecting stockholders' equity. You may also write the journal entries to record each transaction/adjustment.

a. Income tax expense of $700 for the current period is accrued. Of the accrual, $200 represents deferred tax liabilities.

b. Bonds payable with a face amount of $5,000 are issued at a price of 99.

c. Of the proceeds from the bonds in part b, $3,000 is used to purchase land for future expansion.

d. Because of warranty claims, finished goods inventory costing $64 is sent to customers to replace defective products.

e. A three-month, 12% note payable with a face amount of $20,000 was signed. The bank made the loan on a discount basis.

f. The next installment of a long-term serial bond requiring an annual principal repayment of $35,000 will become due within the current year.

Answer 1

The following assignments that include all Transaction analysis-various accounts enter the subsequent column headings across the top of a sheet of paper: Enter the transaction/adjustment letter in the 1st column and explain the consequence, if any, of each transaction/adjustment on the appropriate balance sheet category or on net income by entering for each category affected the account name and amount, and indicating whether it is an addition (1) or a subtraction (-). Items that influence net income must not as well be revealed as affecting stockholders' equity. You might as well make the journal entries to record each transaction/adjustment. a. Income tax expense of $700 for the current period is accrued. Of the accrual, $200 symbolizes deferred tax liabilities. b. Bonds payable through a face amount of $5,000 are issued at a price of 99.