Homework help


1.On November 1, 2016, Gordon Co. collected $7,560 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on April 30, 2017, at which time the contract may be renewed.

 

 

a-1. Use the horizontal model to record the effect of the six months of rent collected in advance on November 1, 2016 for Gordon Co. (Use amounts with + for increases and amounts with – for decreases.)

 

 

a-2. Use the horizontal model to record the effect of the adjustment that will be made at the end of each month to show the amount of rent “earned” during the month for Gordon Co. (Use amounts with + for increases and amounts with – for decreases.)

 

 

a-3. Record the journal entry to show the effect of the six months of rent collected in advance on November 1, 2016 for Gordon Co. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

 

 

 

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a-4. Record the journal entry to show the effect of the adjustment that will be made at the end of each month to show the amount of rent “earned” during the month for Gordon Co. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

 

 

 

 

  1. Calculate the amount of unearned rent that should be shown on the December 31, 2016, balance sheet with respect to this lease.

 

 

Suppose the advance collection received on November 1, 2016, covered an 24-month lease period at the same amount of rent per month. How should Gordon Co. report the unearned rent amount on its December 31, 2016, balance sheet?

 

 

 

 

 

 

 

 

  1. 2. The following information applies to the questions displayed below.]

    Refer to the following transactions.

  2. Sold 5,000 previously unissued shares of $1 par value common stock for $18 per share.
  3. Issued 1,200 shares of previously unissued 5% cumulative preferred stock, $50 par value, in exchange for land and a building appraised at $60,000.
  4. Declared and paid the annual cash dividend on the preferred stock issued in transaction b.
  5. Purchased 250 shares of common stock for the treasury at a total cost of $3,250.
  6. Declared a cash dividend of $0.14 per share on the common stock outstanding.
  7. Sold 100 shares of the treasury stock purchased in transaction d at a price of $33 per share.
  8. Declared and issued a 2% stock dividend on the common stock issued when the market value per share of common stock was $26.
  9. Split the common stock 3 for

 

  1. Required:

Show the effect (if any) of each of the above transactions on each financial statement category by selecting a plus (+) or minus (–) and the amount in the appropriate column. Do not show items that affect net income in the retained earnings column. You should assume that the transactions occurred in this chronological sequence and that 42,000 shares of previously issued common stock remain outstanding. (Hint: Remember to consider appropriate effects of previous transactions.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. The following information applies to the questions displayed below.]

The following summary data for the payroll period ended on April 10, 2015, are available for Brac Construction Ltd.:

 

     
Gross pay $ ?
FICA tax withholdings   ?
Income tax withholdings   22,016
Medical insurance contributions   1,070
Union dues   960
Total deductions   33,615
Net pay   91,475

Required:

  1. Calculate the missing amounts and then determine the FICA tax withholding percentage. (Round FICA tax withholding percentage to 2 decimal places.)

 

 

b-1. Use the horizontal model to show the effects of the payroll accrual. (Use amounts with + for increases and amounts with – for decreases.)

 

 

 

b-2. Record the journal entry to show the effects of the payroll accrual. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

 

 

 

 

 

  1. Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash:

 

 

  • 770,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2016, at $19.00 per share.
  • 220,000 shares of $100 par value, 8.50% cumulative, preferred stock were authorized, and 77,000 shares were issued on January 1, 2016, at $150 per share.
  • Net income for the years ended December 31, 2016 and 2017, was $1,450,000 and $2,590,000, respectively.
  • No dividends were declared or paid during 2016. However, on December 28, 2017, the board of directors of Homestead declared dividends of $1,450,000, payable on February 12, 2018, to holders of record as of January 19, 2018.

 

 

Required:

  1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2016. (Use amounts with + for increases and amounts with – for decreases.)

Use the horizontal model for the declaration of dividends on December 28, 2017. (Use amounts with + for increases and amounts with – for decreases.)

  1. Use the horizontal model for the payment of dividends on February 12, 2018. (Use amounts with + for increases and amounts with – for decreases.)

 

Prepare the journal entries to record each of the below transactions. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

 

  1. The issuance of common stock and preferred stock on January 1, 2016.
  2. The declaration of dividends on December 28, 2017.
  3. The payment of dividends on February 12, 2018.

 

Of the total amount of dividends declared during 2017, how much will be received by preferred shareholders?

 

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