Whiteside Corporation issues $590,000 of 9% bonds, due in 13 years, with interest payable semiannually. At the time of issue, the annual market rate for such bonds is 10%. Compute the issue price of the bonds.

Whiteside Corporation issues $590,000 of 9% bonds, due in 13 years, with interest payable semiannually. At the time of issue, the annual market rate for such bonds is 10%. Compute the issue price of the bonds. (Use the present value tables in the text. Round your answer to zero decimal places, e.g. 2,510.)

$

Kraft Enterprises owns the following assets at December 31, 2012.

	Cash in bank savings account	71,025		Checking account balance	17,426
	Cash on hand	9,333		Postdated checks	800
	Cash refund due from IRS	34,764		Certificates of deposit (180-day)	91,703

What amount should be reported as cash?

Presented below is information related to Rembrandt Inc.’s inventory.

	(per unit)	Skis	Boots	Parkas
	Historical cost	$261.82		$146.07		$73.03
	Selling price	299.03		199.81		101.63
	Cost to distribute	26.18		11.02		3.45
	Current replacement cost	279.73		144.69		70.28
	Normal profit margin	44.10		39.96		29.28

Determine the following:

the two limits to market value (e.g., the ceiling and the floor) that should be used in the lower of cost or market computation for skis; (Round answers to 2 decimal places, e.g. 20.25.)

Ceiling	$
Floor	$

b. the cost amount that should be used in the lower of cost or market comparison of boots; (Round answer to 2 decimal places, e.g. 20.25.)

Cost amount

$

c. the market amount that should be used to value parkas on the basis of the lower of cost or market.(Round answer to 2 decimal places, e.g. 20.25.)

Market amount

$

Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 69 units that cost $41 each. During June, the company purchased 207 units at $41 each, returned 8 units for credit, and sold 172 units at $69 each. Journalize the June transactions.

Description/Account	Debit	Credit
Accounts payableInventoryAccounts receivableSalesCost of goods sold
SalesAccounts receivableCost of goods soldAccounts payableInventory
(To record inventory purchased.)
Cost of goods soldInventoryAccounts payableAccounts receivableSales
Accounts payableAccounts receivableSalesCost of goods soldInventory
(To record inventory returned.)
SalesCost of goods soldAccounts payableAccounts receivableInventory
InventoryAccounts payableAccounts receivableCost of goods soldSales
(To record inventory sold.)
Cost of goods soldSalesInventoryAccounts payableAccounts receivable
InventoryAccounts payableAccounts receivableSalesCost of goods sold
(To record cost of goods sold.)

Amsterdam Company uses a periodic inventory system. For April, when the company sold 700 units, the following information is available.

		Units	Unit Cost	Total Cost
	April 1 inventory	250		$15		$3,750
	April 15 purchase	400		18		7,200
	April 23 purchase	350		19		6,650
		1,000				$17,600

Compute the April 30 inventory and the April cost of goods sold using the average cost method. (Round computations for cost per unit to 2 decimal places, e.g. 10.25 and answers to 0 decimal places, e.g. 2,250.)

Inventory	$
Cost of goods sold	$
	AE8-15

(FIFO, LIFO, Average Cost Inventory)

Esplanade Company was formed on December 1, 2011. The following information is available from Esplanade’s inventory records for Product BAP.

		Units	Unit Cost
	January 1, 2012 (beginning inventory)	798		$8.00
	Purchases:
	January 5, 2012	1,596		9.00
	January 25, 2012	1,729		10.00
	February 16, 2012	1,064		11.00
	March 26, 2012	798		12.00

A physical inventory on March 31, 2012, shows 2,128 units on hand.

Prepare schedules to compute the ending inventory at March 31, 2012, under each of the following inventory methods. Assume Esplanade Company uses the periodic inventory method.

a. FIFO

	ESPLANADE COMPANY
	Computation of Inventory for Product BAP
	BAP under FIFO Inventory Method
	March 31, 2012
		Units	Unit Cost	Total Cost
	March 26, 2012		$	$
	February 16, 2012
	January 25, 2012
	March 31, 2012, inventory			$

b. LIFO

	ESPLANADE COMPANY
	Computation of Inventory for Product BAP
	BAP under LIFO Inventory Method
	March 31, 2012
		Units	Unit Cost	Total Cost
	Beginning inventory		$	$
	January 5, 2012
	March 31, 2012, inventory			$

c. Weighted average (Round weighted average cost to 2 decimal places, e.g. 2.25 and use this rounded amount for future calculations. Round the inventory on March to 0 decimal places, e.g. 1,250.)

	ESPLANADE COMPANY
	Computation of Inventory for Product BAP
	BAP under Weighted Average Inventory Method
	March 31, 2012
		Units	Unit Cost	Total Cost
	Beginning inventory		$	$
	January 5, 2012
	January 25, 2012
	February 16, 2012
	March 26, 2012
				$

	Weighted Average cost	$
	March 31, 2012, inventory	$

Floyd Corporation has the following four items in its ending inventory.

	Item	Cost	Replacement Cost	Net Realizable Value (NRV)	NRV Less Normal Profit Margin
	Jokers	$2,052		$2,103		$2,155		$1,642
	Penguins	5,130		5,233		5,079		4,207
	Riddlers	4,514		4,668		4,745		3,796
	Scarecrows	3,283		3,068		3,930		3,150

Determine the final lower of cost or market inventory value for each item.

Jokers	$
Penguins	$
Riddlers	$
Scarecrows	$
	ABE9-8

Boyne Inc. had beginning inventory of $13,320 at cost and $22,200 at retail. Net purchases were $133,200 at cost and $188,700 at retail. Net markups were $11,100; net markdowns were $7,770; and sales were $174,270. Compute ending inventory at cost using the conventional retail method. (Round computation for cost-to-retail ratio percentage and answer to 0 decimal places, e.g. 25,250.)

Ending inventory	$
	AE9-12

(Gross Profit Method)

Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.

	Inventory, May 1	$179,200
	Purchases (gross)	716,800
	Freight-in	33,600
	Sales	1,120,000
	Sales returns	78,400
	Purchase discounts	13,440

Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.

Inventory

$

Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost.

Inventory	$
	ABE10-1

Previn Brothers Inc. purchased land at a price of $28,320. Closing costs were $3,270. An old building was removed at a cost of $11,440. What amount should be recorded as the cost of the land?

$

ABE10-5

Garcia Corporation purchased a truck by issuing an $112,800, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck. (Round answers to 0 decimal places, e.g. 15,510. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. Hint: Use tables in text.)

Description/Account	Debit	Credit
CashNotes receivableDepreciation expenseTruckDiscount on notes payableNotes payable
Notes receivableNotes payableDiscount on notes payableTruckDepreciation expenseCash
CashDepreciation expenseNotes payableNotes receivableTruckDiscount on notes payable
	ABE10-6

Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $431,550. The estimated fair values of the assets are land $82,200, building $301,400, and equipment $109,600. At what amounts should each of the three assets be recorded? (Note: Do not round the computation of the % of total.)

	Recorded Amount
Land	$
Building	$
Equipment	$
	ABE10-7

Fielder Company obtained land by issuing 2,000 shares of its $12 par value common stock. The land was recently appraised at $104,550. The common stock is actively traded at $50 per share. Prepare the journal entry to record the acquisition of the land. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Description/Account	Debit	Credit
Paid-in capital in excess of parCashAdditional paid-in capitalLandCommon stock
LandAdditional paid-in capitalCashPaid-in capital in excess of parCommon stock
Common stockCashPaid-in capital in excess of parLandAdditional paid-in capital
	ABE10-8Navajo Corporation traded a used truck (cost $21,800, accumulated depreciation $19,620) for a small computer worth $4,033. Navajo also paid $1,090 in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)Description/AccountDebitCreditAccumulated depreciationTruckCashGain on disposal of truckComputerComputerAccumulated depreciationTruckCashGain on disposal of truckGain on disposal of truckCashAccumulated depreciationTruckComputerComputerTruckAccumulated depreciationCashGain on disposal of truckGain on disposal of truckAccumulated depreciationComputerTruckCash

ABE10-10

Mehta Company traded a used welding machine (cost $12,240, accumulated depreciation $4,080) for office equipment with an estimated fair value of $6,800. Mehta also paid $4,080 cash in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Description/Account	Debit	Credit
Accumulated depreciationMachineOffice equipmentDepreciation expenseGain on disposal of machineLoss on disposal of machineCash
Loss on disposal of machineCashAccumulated depreciationDepreciation expenseGain on disposal of machineMachineOffice equipment
Accumulated depreciationLoss on disposal of machineCashDepreciation expenseOffice equipmentMachineGain on disposal of machine
CashGain on disposal of machineMachineOffice equipmentLoss on disposal of machineAccumulated depreciationDepreciation expense
Accumulated depreciationDepreciation expenseGain on disposal of machineCashOffice equipmentLoss on disposal of machineMachine
	ABE11-1Fernandez Corporation purchased a truck at the beginning of 2012 for $50,820. The truck is estimated to have a salvage value of $2,420 and a useful life of 193,600 miles. It was driven 27,830 miles in 2012 and 37,510 miles in 2013. Compute depreciation expense for 2012 and 2013.(Round answers to 0 decimal places, i.e. 2,250.)2012$2013$

By accessing this Question Assistance, you will learn while

ABE11-4Lockhard Company purchased machinery on January 1, 2012, for $80,400. The machinery is estimated to have a salvage value of $8,040 after a useful life of 8 years.(a)Compute 2012 depreciation expense using the double-declining balance method.$(b)Compute 2012 depreciation expense using the double-declining balance method assuming the machinery was purchased on October 1, 2012.(Round answer to 0 decimal places, i.e. 2,250.)$

By accessing this Question Assistan

ABE11-8Jurassic Company owns machinery that cost $1,054,800 and has accumulated depreciation of $421,920. The expected future net cash flows from the use of the asset are expected to be $586,000. The fair value of the equipment is $468,800. Prepare the journal entry, if any, to record the impairment loss.Description/AccountDebitCreditLoss on impairmentAccumulated depreciationMachineryDepreciation expenseCashCashAccumulated depreciationDepreciation expenseLoss on impairmentMachinery

By accessing this Question Assistance, you will learn

ABE11-9Everly Corporation acquires a coal mine at a cost of $539,200. Intangible development costs total $134,800. After extraction has occurred, Everly must restore the property (estimated fair value of the obligation is $107,840), after which it can be sold for $215,680. Everly estimates that 5,392 tons of coal can be extracted. If 944 tons are extracted the first year, prepare the journal entry to record depletion.Description/AccountDebitCreditDevelopment costsAccumulated depletionRestoration costsInventoryDevelopment costsRestoration costsAccumulated depletionInventory

	By accessing this Question Assistance, you will learn while
ABE11-11Francis Corporation purchased an asset at a cost of $48,500 on March 1, 2012. The asset has a useful life of 8 years and a salvage value of $4,850. For tax purposes, the MACRS class life is 5 years. Compute tax depreciation for each year 2012 2017. (Round answers to 0 decimal places.)2012$2013$2014$2015$2016$2017$

By accessing this Question Assistance

ABE12-1Celine Dion Corporation purchases a patent from Salmon Company on January 1, 2012, for $56,170. The patent has a remaining legal life of 16 years. Celine Dion feels the patent will be useful for 10 years. Prepare Celine Dion’s journal entries to record the purchase of the patent and 2012 amortization.Account/DescriptionDebitCreditCashPatent amortization expenseAccounts payableAccumulated amortizationPatentsAccounts receivableAccumulated amortizationAccounts receivableAccounts payablePatentsCashPatent amortization expense(To record purchase of patent.)CashAccounts receivableAccounts payableAccumulated amortizationPatent amortization expensePatentsAccounts payablePatentsCashPatent amortization expenseAccounts receivableAccumulated amortization(To record amortization.)

By accessing this Question Assistance, you will learn while

ABE12-14Karen Austin Corporation has capitalized software costs of $789,600, and sales of this product the first year totaled $415,620. Karen Austin anticipates earning $969,780 in additional future revenues from this product, which is estimated to have an economic life of 4 years. Compute the amount of software cost amortization for the first year.(a)Compute the amount of software cost amortization for the first year using the percent of revenue approach.$(b)Compute the amount of software cost amortization for the first year using the straight-line approach.$

By accessing this Question Assistance

ABE13-1Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, Roley purchased $82,000 of inventory, terms 2/10, n/30, FOB shipping point. Roley paid freight costs of $1,290. On July 3, Roley returned damaged goods and received credit of $8,200. On July 10, Roley paid for the goods. Prepare all necessary journal entries for Roley. (For multiple debit/credit entries, list amounts from largest to smallest, e.g. 10, 8, 6.)DateDescription/AccountDebitCreditJuly 1Purchase returns and allowancesAccounts payablePurchasesPurchase discountsCashPurchase discountsAccounts payablePurchasesCashPurchase returns and allowancesFreight-inCashAccounts payablePurchasesPurchase returns and allowancesPurchase discountsJuly 3Accounts payableCashPurchase returns and allowancesPurchasesPurchase discountsPurchase returns and allowancesPurchase discountsCashPurchasesAccounts payableJuly 10Purchase returns and allowancesPurchasesAccounts payableCashPurchase discountsPurchasesAccounts payablePurchase returns and allowancesPurchase discountsCashCashPurchase discountsPurchasesAccounts payablePurchase returns and allowances

By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set

ABE13-3Takemoto Corporation borrowed $65,400 on November 1, 2012, by signing a $66,872, 3-month, zero-interest-bearing note. Prepare Takemoto’s November 1, 2012, entry; the December 31, 2012, annual adjusting entry; and the February 1, 2013, entry. (For multiple debit/credit en tries, list amounts from largest to smallest, e.g. 10, 8, 6. Round all answers to 0 decimal places, e.g. 11,150.)DateDescription/AccountDebitCredit11/1/12Notes receivableInterest expenseInterest payableCashDiscount on notes payableNotes payableInterest expenseNotes payableNotes receivableInterest payableDiscount on notes payableCashNotes payableInterest expenseNotes receivableInterest payableCashDiscount on notes payable12/31/12Discount on notes payableNotes payableNotes receivableCashInterest expenseInterest payableNotes payableInterest payableNotes receivableInterest expenseCashDiscount on notes payable2/1/13Interest payableInterest expenseCashNotes receivableDiscount on notes payableNotes payableNotes receivableInterest payableDiscount on notes payableCashNotes payableInterest expenseInterest payableCashDiscount on notes payableNotes payableInterest expenseNotes receivableCash

	By accessing this Question Assistance, you will learn while
ABE14-1Whiteside Corporation issues $590,000 of 9% bonds, due in 13 years, with interest payable semiannually. At the time of issue, the annual market rate for such bonds is 10%. Compute the issue price of the bonds. (Use the present value tables in the text. Round your answer to zero decimal places, e.g. 2,510.)$

By accessing this Question

ABE21-10Indiana Jones Company enters into a 6-year lease of equipment on January 1, 2012, which requires 6 annual payments of $41,170 each, beginning January 1, 2012. In addition, the lessee guarantees a residual value of $21,150 at lease-end. The equipment has a useful life of 6 years. Assume that for Lost Ark Company, the lessor, collectibility is reasonably predictable, there are no important uncertainties concerning costs, and the carrying amount of the machinery is $209,176. Prepare Lost Ark’s January 1, 2012, journal entries.DescriptionDebitCreditLease LiabilityMachineryLease ReceivableCashRent ExpenseLeased Machinery Under Capital LeasesInterest PayableInterest Expense$Rent ExpenseInterest PayableInterest ExpenseMachineryLease ReceivableCashLeased Machinery Under Capital LeasesLease Liability$(To record the lease)Lease ReceivableLeased Machinery Under Capital LeasesRent ExpenseMachineryLease LiabilityInterest PayableInterest ExpenseCash$Interest ExpenseLease ReceivableRent ExpenseInterest PayableMachineryCashLease LiabilityLeased Machinery Under Capital Leases$(To record first lease payment)

By accessing this Question Assistance, you

ABE21-12On January 1, 2012, Irwin Animation sold a truck to Peete Finance for $27,600 and immediately leased it back. The truck was carried on Irwin’s books at $21,850. The term of the lease is 5 years, and title transfers to Irwin at lease-end. The lease requires five equal rental payments of $7,847 at the end of each year. The appropriate rate of interest is 13%, and the truck has a useful life of 5 years with no salvage value. Prepare Irwin’s 2012 journal entries.(Round your answer to the nearest dollar eg 58,591.For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) DateDescriptionDebitCreditJan. 1Unearned Profit on Sale-LeasebackTruckLeased EquipmentCashDepreciation ExpenseAccumulated DepreciationLease LiabilityInterest Expense$Interest ExpenseLease LiabilityDepreciation ExpenseTruckAccumulated DepreciationCashUnearned Profit on Sale-LeasebackLeased Equipment$Accumulated DepreciationTruckDepreciation ExpenseLease LiabilityInterest ExpenseUnearned Profit on Sale-LeasebackCashLeased Equipment$(To record the sale )Jan. 1CashUnearned Profit on Sale-LeasebackAccumulated DepreciationDepreciation ExpenseInterest ExpenseLeased EquipmentTruckLease Liability$Lease LiabilityAccumulated DepreciationUnearned Profit on Sale-LeasebackLeased EquipmentDepreciation ExpenseInterest ExpenseCashTruck$(To record the leaseback)Dec. 31CashInterest ExpenseDepreciation ExpenseLeased EquipmentTruckAccumulated DepreciationUnearned Profit on Sale-LeasebackLease Liability$Depreciation ExpenseAccumulated DepreciationLeased EquipmentLease LiabilityCashInterest ExpenseTruckUnearned Profit on Sale-Leaseback$(To record depreciation)Dec. 31Depreciation ExpenseUnearned Profit on Sale-LeasebackCashLease LiabilityInterest ExpenseAccumulated DepreciationTruckLeased Equipment$Leased EquipmentDepreciation ExpenseCashTruckLease LiabilityUnearned Profit on Sale-LeasebackAccumulated DepreciationInterest Expense$Dec. 31Leased EquipmentInterest ExpenseLease LiabilityDepreciation ExpenseCashTruckUnearned Profit on Sale-LeasebackAccumulated Depreciation$Interest ExpenseDepreciation ExpenseLease LiabilityCashTruckLeased EquipmentUnearned Profit on Sale-LeasebackAccumulated Depreciation$Leased EquipmentUnearned Profit on Sale-LeasebackTruckCashLease LiabilityDepreciation ExpenseAccumulated DepreciationInterest Expense$(To record first lease payment)