The company purchased a building December 1, 2012 with a
Question # 00257317
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Updated on: 04/19/2016 11:00 AM Due on: 05/19/2016
1.
The company purchased a building December 1, 2012 with a
LT Mortgage Payable of $150,000 at 8% interest. (Record the
purchase of the building.)
2.
The company issued 500 shares of Common Stock for $6,000
on December 25, 2012.
3.
On December 29, 2012 the company declared a cash
dividend of $3.00 per share for common stock on the shares
issued and declared (including the additional 500 shares declared
on December 25th.)
4.
The terms of the LT mortgage payable from #1 above require
the company to make monthly installment payments over the
term of the loan. Each payment consists of interest on the
unpaid balance of the loan and a reduction of loan principal.
Record the first monthly payment of $1,900 on the LT
Mortgage Payable on December 31, 2012.
5.
The company last paid interest on the ST note payable on
November 1, 2012. Record the accrued interest expense for
the last 2 months of 2012. The annual interest rate is 8%.
Round to nearest whole dollar.
6.
The Bonds Payable and related Premium amounts on the Nov.
trial balance relate to the Jan. 1, 2012 issuance of the
following bonds: On Jan. 1, 2012, the company issued 10%,
10-year bonds when the market rate for similar investments
was 8%. The company pays interest each year on January 1 st.
On Dec. 31, 2012, use the effective interest method of
amortizing the premium on bonds payable to accrue the
interest expense for 2012. Round your interest expense calculation to
the nearest whole dollar.
7.
The Unearned Revenue amount on the Nov. trial balance
relates to amounts that the company previously collected in
cash for sales that were to be completed in the future. The
company completed some of these sales during December
and now owes only $16,000 of that unearned revenue.
Record the necessary adjustment for December 31, 2012.
8.
On December 31, 2012, the company purchased 50 shares of
its own Preferred Stock for Treasury Stock for $11 per share
The company purchased a building December 1, 2012 with a
LT Mortgage Payable of $150,000 at 8% interest. (Record the
purchase of the building.)
2.
The company issued 500 shares of Common Stock for $6,000
on December 25, 2012.
3.
On December 29, 2012 the company declared a cash
dividend of $3.00 per share for common stock on the shares
issued and declared (including the additional 500 shares declared
on December 25th.)
4.
The terms of the LT mortgage payable from #1 above require
the company to make monthly installment payments over the
term of the loan. Each payment consists of interest on the
unpaid balance of the loan and a reduction of loan principal.
Record the first monthly payment of $1,900 on the LT
Mortgage Payable on December 31, 2012.
5.
The company last paid interest on the ST note payable on
November 1, 2012. Record the accrued interest expense for
the last 2 months of 2012. The annual interest rate is 8%.
Round to nearest whole dollar.
6.
The Bonds Payable and related Premium amounts on the Nov.
trial balance relate to the Jan. 1, 2012 issuance of the
following bonds: On Jan. 1, 2012, the company issued 10%,
10-year bonds when the market rate for similar investments
was 8%. The company pays interest each year on January 1 st.
On Dec. 31, 2012, use the effective interest method of
amortizing the premium on bonds payable to accrue the
interest expense for 2012. Round your interest expense calculation to
the nearest whole dollar.
7.
The Unearned Revenue amount on the Nov. trial balance
relates to amounts that the company previously collected in
cash for sales that were to be completed in the future. The
company completed some of these sales during December
and now owes only $16,000 of that unearned revenue.
Record the necessary adjustment for December 31, 2012.
8.
On December 31, 2012, the company purchased 50 shares of
its own Preferred Stock for Treasury Stock for $11 per share
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Rating:
/5
Solution: The company purchased a building December 1, 2012 with a