A+ Answers

Description / Instructions: Complete the following Week 3 Assignment in WileyPLUS: * Problem 9-7A * Exercise 10-5 * Exercise 10-8 * Exercise 10-13 * Exercise 10-22 * Exercise 10-24 * BYP 10-1 * BYP 10-2 * Problem 10-9A * Problem 10-13A * IFRS 10-4

Exercise 10-5

          During the month of March, Olinger Company’s employees earned wages of $67,800. Withholdings related to these wages were $5,187 for Social Security (FICA), $7,945 for federal income tax, $3,284 for state income tax, and $424 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $742 for state unemployment tax.
           
Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the entry to record the company’s payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Exercise 10-8
          On August 1, 2014, Ortega Corporation issued $813,600, 7%, 10-year bonds at face value. Interest is payable annually on August 1. Ortega’s year-end is December 31.

          Prepare journal entries to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Exercise 10-13

          Romine Company issued $530,700 of 9%, 10-year bonds on January 1, 2014, at face value. Interest is payable annually on January 1. ning

           
          Prepare the journal entries to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Exercise 10-22

          Cole Corporation issued $432,000, 7%, 25-year bonds on January 1, 2014, for $385,887. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Cole uses the effective-interest method to amortize bond premium or discount.


           
Exercise 10-24

          Nance Co. receives $306,800 when it issues a $306,800, 8%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $17,742 on June 30 and December 31.
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          Prepare the schedule using effective-interest method to amortize bond premium or discount of Nance Co. (Round answers to 0 decimal places, e.g. 125.)
Broadening Your Perspective 10-1

          The financial statements of Tootsie Roll are presented below.

          what were Tootsie Roll’s total current liabilities at December 31, 2011? (Enter amount in thousands.)
58,355
What was the increase/decrease in Tootsie Roll’s total current liabilities from the prior year?

          How much were the accounts payable at December 31, 2011? (Enter amount in thousands.)

  
Broadening Your Perspective 10-2

          The financial statements of The Hershey Company and Tootsie Roll are presented below.
Problem 9-7A

          In recent years, Farr Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below.
Machine                      Acquired                     Cost                 Salvage
Value              Useful Life
(in years)                    Depreciation
Method
1                      Jan. 1, 2012                 $128,000                     $34,400                       9                      Straight-line
2                      July 1, 2013                81,000             11,600             5                      Declining-balance
3                      Nov. 1, 2013               79,890             7,290               7                      Units-of-activity
For the declining-balance method, Farr Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 33,000. Actual hours of use in the first 3 years were: 2013, 750; 2014, 3,510; and 2015, 5,240.
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          Compute the amount of accumulated depreciation on each machine at December 31, 2015.
Problem 10-9A

          Wempe Co. sold $3,367,000, 8%, 10-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.
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          Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 105 and (2) 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Problem 10-13A

          Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1, 2013, Grace was loaned $198,000 at an annual interest rate of 7%. The loan is repayable over 5 years in annual installments of $48,290, principal and interest, due each June 30. The first payment is due June 30, 2014. Grace uses the effective-interest method for amortizing debt. Her ski hill company’s year-end will be June 30.

Prepare an amortization schedule for the 5 years, 2013–2018. (Round answers to 0 decimal places, e.g. 125.)
IFRS 10-4

Ratzlaff Company issues €2 million, 10-year, 8% bonds at 97, with interest payable on July 1 and January 1.

Prepare the journal entry to record the sale of these bonds on January 1, 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)