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Assignment 2
STUDENT NUMBER
NAME
- Answer Submission Method : All answers must be handwritten. Using
a tablet PC for handwriting is also acceptable.
- Submission Deadline : Answers must be uploaded to the Blackboard
system by the class time on Wednesday, December 11 th.
- Late Submission Policy : Late submissions, regardless of the reason,
will not be accepted.
- Grading Policy : The grading will not focus on whether the answers
are correct or not, but on how the work has been completed.
E14.8 on June 30, 2021, Macias SA issued R$5,000,000 face value of 13%, 20-year bonds at R$5,376,150 to yield 12%. The bonds pay semiannual interest on Jun 30 and December
Instructions a. Prepare the journal entries to record the following transactions.
- The issuance of the bonds on June 30, 2021.
- The payment of interest and the amortization of the premium on December 31,
- The payment of interest and the amortization of the premium on June 30 , 202 2.
- The payment of interest and the amortization of the premium on December 31,
b. Show the proper statement of financial position presentation for the liability for bonds payable on the December 31, 2022, statement of financial position. c. What amount of interest expense is reported for 2022?
E9.4 Dover plc began operations in 2022 and determined its ending inventory at cost and at NRV at December 31, 2022, and December 31, 2023. This information presented below. Cost Net Realizable Value 12/31/22 $346,000 322, 12/31/23 41 0,000 390, Instructions a. Prepare the journal entries required at December 31, 2022, and December 31, 2023, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. b. Prepare journal entries required at December 31, 2022, and December 31, 2023, assuming inventory is recorded at cost with a perpetual system. Use the loss method to record any LCNRV. c. Which of the two methods above provides the higher net income in each year?
E9.21 Presented below is information related to Kuchinsky Company. cost Retail Beginning inventory $200,000 280, Purchases 1,425,000 2,140, Markups 95, Markup cancellations 15, Markdowns 35, Markdown cancellations 5, Sales 2,250, Instructions Compute the inventory by the conventional retail inventory method.
