Financial accounting hw
chasfl
ch_9_worksheet_fin_act.docChapter 9
Reporting and Analyzing
Current Liabilities
Quick Study 9-11 (10 minutes)
Times interest earned = =
Interpretation :
PROBLEM SET A
Problem 9-1A (45 minutes)
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Frier |
Com. Bank |
UMB |
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Maturity dates |
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Date of the note |
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Term of the note (in days) |
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Maturity date |
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2. |
Interest due at maturity |
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Principal of the note |
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Annual interest rate |
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Fraction of year |
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Interest expense |
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3. |
Accrued interest on UMB note at the end of 2010 |
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Total interest for note |
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Fraction of term in 2010 |
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Accrued interest expense |
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4. |
Interest on UMB note in 2011 |
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Total interest for note |
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Fraction of term in 2011 |
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Interest expense in 2011 |
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5.
2010 You can show your calculations in your journal entry descriptions.
The terms regarding the notes payable should be in the descriptions as well
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Apr. 20 |
Merchandise Inventory |
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Accounts Payable—Frier |
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May 19 |
Accounts Payable—Frier |
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Cash |
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Notes Payable—Frier |
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July 8 |
Cash |
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Notes Payable—Community |
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Aug. 17 |
Interest Expense |
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Notes Payable—Frier |
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Cash |
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Nov. 5 |
Interest Expense |
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Notes Payable—Community |
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Cash |
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28 |
Cash |
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Notes Payable—UMB Bank |
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Dec. 31 |
Interest Expense |
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Interest Payable |
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2011
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Jan. 27 |
Interest Expense |
126 |
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Notes Payable—UMB Bank |
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Interest Payable |
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Cash |
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Problem 9-2A (40 minutes) You can show your calculations in your journal entry descriptions.
1.
2010
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Nov. 11 |
Cash |
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Sales |
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11 |
Cost of Goods Sold |
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Merchandise Inventory |
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30 |
Warranty Expense |
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Estimated Warranty Liability |
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Dec. 9 |
Estimated Warranty Liability |
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Merchandise Inventory |
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16 |
Cash |
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Sales |
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16 |
Cost of Goods Sold |
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Merchandise Inventory |
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29 |
Estimated Warranty Liability |
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Merchandise Inventory |
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31 |
Warranty Expense |
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Estimated Warranty Liability |
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Jan. 5 |
Cash |
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Sales |
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Cost of Goods Sold |
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Merchandise Inventory |
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2011
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17 |
Estimated Warranty Liability |
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Merchandise Inventory |
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31 |
Warranty Expense |
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Estimated Warranty Liability |
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2. Warranty expense for November 2010 and December 2010
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Sales |
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Warranty Expense |
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November |
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December |
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Total |
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3. Warranty expense for January 2011
Sales in January |
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Warranty percent |
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Warranty expense |
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4. Balance of the estimated liability as of December 31, 2010
Warranty expense for November |
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credit |
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Warranty expense for December |
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credit |
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Cost of replacing items in December |
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debit |
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Estimated Warranty Liability balance |
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credit |
*Can be viewed as $270 + $540
5. Balance of the estimated liability as of January 31, 2011
Beginning balance |
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credit |
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Warranty expense for January |
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credit |
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Cost of replacing items in January |
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debit |
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Estimated Warranty Liability balance |
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Credit
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Ethics Challenge — BTN 9-3
1
2.
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Financial Accounting, 6th Edition
©McGraw-Hill Companies, 2013
471
Solutions Manual, Chapter 9
