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ACC 291 Week 3 Individual Study Guide Accounting Problems – PaperScholar Study Aids
Guide Last Updated: October 9, 2015
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ACC 291 Week 3 Individual Study Guide Accounting Problems –

ACC 291 Week 3 Individual Study Guide Accounting Problems –


 

TUTORIAL: Includes solutions to accounting problems.

 

Individual Assignment: Accounting Problems

 

QUESTION 1

Don Walls’s gross earnings for the week were $1,780, his federal income tax withholding was $301.63, and his FICA total was $135.73.

 

• What was Walls’s net pay for the week?

• Journalize the entry for the recording of his pay in the general journal.

• Record the issuing of the check for Walls’s pay in the general journal.

 

 

QUESTION 2

On January 1, Neuer Company issued $500,000, 10%, 10-year bonds at par. Interest is payable semiannually on July 1 and January 1.

Prepare journal entries to record the following.

 

• The issuance of the bonds.

• The payment of interest on July 1, assuming that interest was not accrued on June 30.

• The accrual of interest on December 31.

 

 

QUESTION 3

On January 1, Flory Company issued $300,000, 8%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1.

Prepare journal entries to record the following events.

 

• The issuance of the bonds.

• The payment of interest on July 1, assuming that interest was not accrued on June 30.

• The accrual of interest on December 31.

 

 

QUESTION 4

Leoni Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2011. The terms provide for semiannual installment payments of $20,000 on June 30 and December 31.

Prepare the journal entries to record the mortgage loan and the first two installment payments.

 

 

QUESTION 5

Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2010. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for semiannual installment payments, exclusive of real estate taxes and insurance, of $29,433. Payments are due June 30 and December 31.

 

• Complete the installment payments schedule for the first 2 years.

• Prepare the entries for (1) the loan and (2) the first two installment payments.

• Show how the total mortgage liability should be reported on the balance sheet at December 31, 2011.