Crane Corporation purchased debt investments for $57,000 on January 1, 2022. On July 1, 2022. Crane received cash interest of $2,565. Journalize the purchase and the receipt of interest. Assume that no interest has been accrued. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit
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- On December 31, 2020, Swifty Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2.700,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2.700,000 to $2.160,000. Extending the maturity date from December 31, 2020, to January 1, 2024. Reducing the interest rate from 12% to 10%. 2. 3. Barkdey pays interest at the end of each year. On January 1.2024, Barkley Company pays $2.160.000 in cash to Swifty Bank. Answer the following questions related to Swifty Bank (creditor).On January 1, 2023, AMI Corporation purchased the non-cash net assets of Sheffield Ltd. for $8,175,500. Following is the statement of financial position of Sheffield Ltd. from the company's year-end the previous day: Sheffield LTD. Statement of Financial Position As at December 31, 2022 Cash Accounts receivable Inventory Property, plant, and equipment (net) Land Accounts payable Common shares Retained earnings As part of the negotiations, AMI and Sheffield agreed on the following fair values for the items on Sheffield's statement of financial position: Accounts receivable Inventory Property, plant, and equipment Land $670,000 561,000 2,510,000 2,110,000 2,550,000 $8,401,000 $311,000 2,560,000 5,530,000 $8,401,000 Accounts payable $559,900 2,270,000 1,955,000 3,600,000 300,400Prepare the entry to record the retirement of half the bonds still outstanding on January 1, 2022 for a cash payment of $1,220,000. Assume the accrued interest was paid. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Date Jan. 1, 2022 Debit Credit
- Attempt Sheridan Ltd. factors receivables with a carrying amount of £220,000 to Warren Company for £176,000 and guarantees all credit losses. Prepare the appropriate journal entry to record this transaction on the books of Sheridan Ltd. (If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation eTextbook and Media Debit Credit3. On July 19, 2022, a customer's account balance of $6,700 is written off as uncollectible. Record the write-off. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 > Record write off of actual bad debts. Note: Enter debits before credits. Date General Journal Debit Credit July 19, 2022On June 30, 2017, Bramble Company issued 12% bonds with a par value of $760,000 due in 20 years. They were issued at 98 and were callable at 105 at any date after June 30, 2025. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2026, and to issue new bonds. New 8% bonds were sold in the amount of $920,000 at 103; they mature in 20 years. Bramble Company uses straight-line amortization. Interest payment dates are December 31 and June 30. (a) (b) Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2026. Prepare the entry required on December 31, 2026, to record the payment of the first 6 months' interest and the amortization of premium on the bonds. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.…
- The controller for Swifty Corp. is concerned about certain business transactions that the company experienced during 2023. The controller, after discussing these matters with various individuals, has come to you as the CFO for advice. Swifty follows ASPE. The transactions at issue are presented below: 1. 2. 3. The company has decided to switch from the direct write-off method for accounting for bad debts to the percentage-of- sales approach. Assume that Swifty has recognized bad debt expense as the receivables have actually become uncollectible in the following way: From 2022 sales From 2023 sales 2022 10,500 2023 3,900 14,900 The controller estimates that an additional $21,800 in bad debts will be written off in 2024: $3,700 applicable to 2022 sales and $18,100 to 2023 sales. Inventory has been shipped on consignment. These transactions have been recorded as ordinary sales and billed as such (on account). At December 31, 2023, inventory billed and in the hands of consignees amounted…On December 31, 2021, Ghani Catering discovered that one of its customers, Vince Suerty, had gone bankrupt. He owes the company $4,600. Prepare the journal entry to write off the amount due from Vince Suerty, assuming the direct method is used. Do not enter dollar signs or commas in the input boxes. Date Dec 31 Account Title and Explanation + To record direct write-off of bad debt from accounts receivable Debit CreditAssume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write off of the RO 1000 balance owed by Mr Abdul Salam. But on July 1, Mr Abdul Salam pays the RO 1000 amount that Diamond Furniture had written off on March 1. From the following given options, identify which of the following two journal entries can be pass in the books of Diamond Furniture for the recovery of uncollectable accounts receivables under allowance method ? Dr. Accounts receivables A/C OMR 1000 and Cr Allowance for bad debt A/C OMR1000 i) Dr Allowance for bad debt A/C OMR1000 and Cr Accounts receivables A/C OMR1000 i) Dr Cash A/C OMR 1000 and Cr Accounts Receivables A/C OMR 1000 iv) Dr Accounts receivables A/C OMR 1000 and Cr Cash A/C OMR 1000
- Prepare the journal entries related for the below transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Part 1 Greener Pastures Corporation borrowed $1,600,000 on November 1, 2018. The note carried a 12 percent interest rate with the principal and interest payable on June 1, 2019. Record the borrowing of $1,600,000. Is for November 1,2018 Part 2 Greener Pastures Corporation borrowed $1,600,000 on November 1, 2018. The note carried a 12 percent interest rate with the principal and interest payable on June 1, 2019. Record the interest accrued on the notes payable. December 31,2018In January 2022, the management of Blossom Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred. Feb. 1 Mar. 1 Apr. 1 July 1 Aug. 1 Sept. 1 Oct. 1 Oct. 1 Purchased 700 shares of Muninger common stock for $35,000. Purchased 900 shares of Tatman common stock for $22.500. Purchased 60 of $1,000,8% Yoakem bonds for $60,000. Interest is payable semiannually on April 1 and October 1. Received a cash dividend of $0.70 per share on the Muninger common stock. Sold 233 shares of Muninger common stock at $65 per share. Received a $2 per share cash dividend on the Tatman common stock. Received the semiannual interest on the Yoakem bonds. Sold the Yoakem bonds for $58,000. At December 31, the fair value of the Muninger and Tatman common stocks were $51 and $24 per share respectively. These stock investments by Blossom Company provide less than a 20% ownership interest.Current Attempt in Progress Information on Concord Corporation, which reports under ASPE, follows: July 1 (a) 3 5 Dec. 29 9 Concord Corporation sold to Sheridan Ltd. merchandise having a sales price of $8,800, terms 2/10, n/60. Ignore cost of goods sold entry. Sheridan returned defective merchandise having a sales price of $900. The merchandise was not saleable and was scrapped. Accounts receivable of $18,600 are factored with Cheyenne Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds and collections are handled by the finance company. Specific accounts receivable of $19,200 are pledged to Landon Credit Corp. as security for a loan of $10,200 at a finance charge of 3% of the loan amount plus 9% interest on the outstanding balance. Concord will continue to make the collections. All the accounts receivable pledged are past the discount period and were originally subject to a 2% discount. Sheridan notifies Concord that it is bankrupt and will be able to…