Accounting 291 Week 4 Answers

Topics: Generally Accepted Accounting Principles, Bonds, Federal Unemployment Tax Act Pages: 5 (338 words) Published: February 23, 2014
XACC/291 – Week 4 Assignment

Complete Exercises E10-6, E10-8, & E10-18.
And Problems 10-3A & 10-6A.

E10-6

Payroll Tax Expense$352.16
FICA Taxes Payable 198.40 Federal Unemployment Taxes Payable 19.84 State Unemployment Taxes Payable 133.92 (To Record Payable Taxes for the week)

E10-8

1. True
2. True
3. False
4. True
5. False
6. False
7. True
8. True
9. True
10. True
E10-18

A.
Jan.1 Cash 562,613 Discount on Bonds Payable 37,387 Bonds Payable 600,000 (To record sale of bonds at discount

B.
Jul.1 Bond Interest Expense 28,131 Discount on Bonds Payable 1,131 Cash 27,000 (To record payment of bond interest and amortization of bond discount)

C.
Dec.31 Bond Interest Expense 28,187
Discount on Bonds Payable 1,187 Bonds Interest Payable 27,000 (To record account bond interest

and amortization on bond discount)

(b), (c)
(B) Interest Expense (A) To Be Recorded (C) Semiannual Interest to (5% X Preceding Discount Interest Be Paid Bond Carrying Value) Amortization Periods (4.5%x$600,000 (E X .05) (B) – (A)

Issue Date
1 27,000 28,131 1,121 2 27,000 28,187 1,187

(D)
Unamortized (E)
Discount Bond
(D) – (C) Carrying Value

37,387 562,613
36,256 563,744
35,069 564,931

Problem 10-3A

A.
May.1 Cash 600,000 Bonds Payable 600,000 (To record sale of bonds at face value)

B.
Dec.31 Bond Interest Exp. 27,000
Bond Interest Payable 27,000 (To accrue bond interest)

C.
Newby Corp.
Balance Sheet

Long Term Liabilities
Bonds Payable 600,000 Less: Discount on Bonds Payable 600,000

D.
May.1 Bond Interest Exp. 27,000 Cash 27,000 (To record payment of bond interest)

E.
Nov.1 Bond Interest Exp. 27,000 Bond Interest Payable 27,000 (To accrue bond interest)

F.
Nov.1 Bonds Payable 600,000
Premium Bonds Payable 0
Loss on Bonds Redemption 12,000
Cash 612,000 (To record redemption of bonds at 102)

Problem 10-6A

A.
July.1 Cash 2,000,000
Bonds Payable 2,000,000 (To record sale of bonds at face...
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