2024 - Brief Exercise 13 3 Takemoto Corporation Borrowed 74 480 On November 1 2014 By Signing A 75 380 3 Month Zero Interest Bearing Note Prepare

INTERMEDIATE ACCOUNTING HOMEWORK – 2024

Brief Exercise 13-3

Takemoto Corporation borrowed $74,480 on November 1, 2014, by signing a $75,380, 3-month, zero-interest-bearing note. Prepare Takemoto’s November 1, 2014, entry; the December 31, 2014, annual adjusting entry; and the February 1, 2015, entry. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
11/1/14	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
12/31/14	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
2/1/15	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
	(To record interest)
	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
	(To pay note)

Brief Exercise 13-8

Kasten Inc. provides paid vacations to its employees. At December 31, 2014, 31 employees have each earned 2 weeks of vacation time. The employees’ average salary is $558 per week. Prepare Kasten’s December 31, 2014, adjusting entry. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]

Brief Exercise 13-11

Buchanan Company recently was sued by a competitor for patent infringement. Attorneys have determined that it is probable that Buchanan will lose the case and that a reasonable estimate of damages to be paid by Buchanan is $308,560. In light of this case, Buchanan is considering establishing a $112,980 self-insurance allowance.

What entry, if any, should Buchanan record to recognize this loss contingency? (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]

Exercise 13-2 (Part Level Submission)

The following are selected 2014 transactions of Sean Astin Corporation.

Sept. 1		Purchased inventory from Encino Company on account for $51,700. Astin records purchases gross and uses a periodic inventory system.
Oct. 1		Issued a $51,700, 12-month, 8% note to Encino in payment of account.
Oct. 1		Borrowed $83,600 from the Shore Bank by signing a 12-month, zero-interest-bearing $89,800 note.

(a)

Prepare journal entries for the selected transactions above. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
September 1	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
October 1	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
October 1	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]

(b)

Prepare adjusting entries at December 31. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
December 31	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
	(To recod interest on the note)
December 31	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
	(To record discount on the note)

(c)

Compute the total net liability to be reported on the December 31 balance sheet for:

(1)		The interest-bearing note		$[removed]
(2)		The zero-interest-bearing note		$[removed]

Exercise 13-9 (Part Level Submission)

Green Day Hardware Company’s payroll for November 2014 is summarized below.

		Amount Subject to Payroll Taxes
			Unemployment Tax
Payroll	Wages Due		Federal	State
Factory	$184,000		$46,000	$46,000
Sales	38,800		5,800	5,800
Administrative	41,600
Total	$264,400		$51,800	$51,800

At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $109,700 and 1.45% in excess of $109,700. Of the $264,400 wages subject to FICA tax, $22,000 of the sales wages is in excess of $109,700. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,100 for factory, $7,030 for sales, and $5,930 for administrative.

(a)

Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275. Do not leave any answer field blank. Enter 0 for amounts.)

	Factory	Sales	Administrative	Total
Salaries and Wages	$[removed]	$[removed]	$[removed]	$[removed]
FICA Taxes	[removed]	[removed]	[removed]	[removed]
FUTA Taxes	[removed]	[removed]	[removed]	[removed]
SUTA Taxes	[removed]	[removed]	[removed]	[removed]
Total Cost	$[removed]	$[removed]	$[removed]	$[removed]

(b)

Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
Factory Payroll:
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record salaries and wages expense.)
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record payroll tax expense.)
Sales Payroll:
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record salaries and wages expense.)
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record payroll tax expense.)
Administrative Payroll:
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record salaries and wages expense.)
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record payroll tax expense.)

Exercise 13-12

No Doubt Company includes 1 coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2014, No Doubt Company purchased 9,210 premiums at 80 cents each and sold 140,600 boxes of soap powder at $3.40 per box; 48,100 coupons were presented for redemption in 2014. It is estimated that 60% of the coupons will eventually be presented for redemption.

Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2014.(Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record the pemium inventory)
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record the sales)
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record the expense associated with the sale)
[removed]	[removed]	[removed]
[removed]	[removed]	[removed]
(To record the premium liability)

Problem 13-1 (Part Level Submission)

Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system.

1.		On February 2, the corporation purchased goods from Martin Company for $76,700 subject to cash discount terms of 3/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26.
2.		On April 1, the corporation bought a truck for $60,000 from General Motors Company, paying $3,000 in cash and signing a one-year, 12% note for the balance of the purchase price.
3.		On May 1, the corporation borrowed $128,400 from Chicago National Bank by signing a $138,240 zero-interest-bearing note due one year from May 1.
4.		On August 1, the board of directors declared a $300,100 cash dividend that was payable on September 10 to stockholders of record on August 31.

(a)

Make all the journal entries necessary to record the transactions above using appropriate dates. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
February 2	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
February 26	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
April 1	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
May 1	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
August 1	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
September 10	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]

(b)

Edwardson Corporation’s year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

No.	Account Titles and Explanation	Debit	Credit
1.	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
2.	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
3.	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]
4.	[removed]	[removed]	[removed]
	[removed]	[removed]	[removed]

IFRS Practice Question 1

The presentation of current and non-current liabilities in the statement of financial position (balance sheet):

is shown only on GAAP financial statements.

is shown on both a GAAP and an IFRS statement of financial position.

is always shown with current liabilities reported first in an IFRS statement of financial position.

includes contingent liabilities under IFRS.

IFRS Practice Question 2

In accounting for short-term debt expected to be refinanced to long-term debt:

GAAP uses the authorization date to determine classification of short-term debt to be refinanced.

IFRS uses the authorization date to determine classification of short-term debt to be refinanced.

IFRS uses the financial statement date to determine classification of short-term debt to be refinanced.

GAAP uses the date of issue, but only for secured debt, to determine classification of short-term debt to be refinanced.

IFRS Practice Question 3

Under IFRS, a provision is the same as:

a contingent liability.

an estimated liability.

a contingent gain.

None of the above.

IFRS Practice Question 4

A typical provision is:

bonds payable.

cash.

a warranty liability.

accounts payable.

IFRS Practice Question 5

In determining the amount of a provision, a company using IFRS should generally measure:

using the midpoint of the range between the lowest possible loss and the highest possible loss.

using the minimum amount of the loss in the range.

using the best estimate of the amount of the loss expected to occur.

using the maximum amount of the loss in the range.

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2024 – Brief Exercise 13 3 Takemoto Corporation borrowed 74 480 on November 1 2014 by signing a 75 380 3 month zero interest bearing note Prepare

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