Jamona Corporation

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Ada M. Tickle
Week 3 ACC/545
Jamona Corporation

Scenario 1
Journal Entries
Dates AccountsDebitCredit
1 Jan 2006Available for sale securities322,744.44
Cash322,744.44
31 Dec 2006Cash36,000
Available for sale securities3,725.56
Interest Revenue
($3222.744.44 X .10)32,274.44
31 Dec 2006 Securities Fair Value Adjustment (available for sale)1,481.12
Unrealized Holding Gain or Loss Equity (320,500.00 – 319,018.88)1,481.12 31 Dec 2007Unrealized Holding Gain or Loss- Equity7,401.89
Securities Fair Value Adjustment (Available for Sale)7,401.89

Note Disclosures
Unrealized
AmortizedHolding Gain
Cost Fair Value (loss)
Available for sale bonds$314,920.77$309,000.00`$(5,920.77) Previous securities fair value adjustment Debit 1,481.12 Securities fair value adjustment Credit $(7,401.89)

Scenario 2
Jamona Corporation
Computations of Inventory for Product
BAP Under FIFO Inventory Method
Dates UnitsUnit CostTotal Cost
March 26,2007600$12.00$7,200
February 16, 200780011.008,800
January 25, 2007
Portion20010.002,000

March 31, 2007
Inventory1,600$18,000

Scenario 3
Journal Entries
AccountsDebitCredit
Land350,000
Building1,050,000
Machinery and Equipment700,000
Common Stock (12,500 X $100)1,250,000
Paid in Capital in Excess of Par
($2,100,000 - $1,250,000850,000

The cost of the property, plant and equipment is $2,100,000 ($12,500 X $168).
This cost is allocated based on appraisal values commutated below: Land$400,000X $2,100,000= $350,000
$2,400,000

Building$1,200,000X $2,100,000= $1,050,000
$2,400,000

Machinery & Equipment$800,000X $2,100,000= $700,000
$2,400,000

Journal Entries
AccountsDebitCredit
Buildings (105,000 + 161,000)...
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