Accounting Entries

This assignment will give you experience with complex accounting transactions. In this assignment, you will prepare the journal entries for sales, sales taxes, and unearned revenues.

1. Download AC216 Unit 4 Assignment 2 – Misc Entries Download AC216 Unit 4 Assignment 2 – Misc Entries[Excel Spreadsheet]
4. Follow the instructions found in the template
5. Rename your spreadsheet adding your last name to the file name (Ex. AC216 Unit 4 Assignment 2 – Misc Entries Name)
8. Submit your completed spreadsheet

Part 2

This assignment will give you the opportunity the create journal entries for the issuance of bonds.

1. Download AC216 Unit 4 Assignment 4 – Bond Issuance Download AC216 Unit 4 Assignment 4 – Bond Issuance[Excel Spreadsheet]

Follow the instructions found in the template

2. Rename your spreadsheet adding your last name to the file name (Ex. AC216 Unit 4 Assignment 4 – Bond Issuance Name)

Submit your completed spreadsheet

Part 3

This assignment will help the student better understand how the Straight-line & Effective Interest Method functions.

1. Download AC216 Unit 4 Assignment 5 – Amortization Method Download AC216 Unit 4 Assignment 5 – Amortization Method[Excel Spreadsheet]

Follow the instructions found in the template

2. Rename your spreadsheet adding your last name to the file name (Ex. AC216 Unit 4 Assignment 4 – Amortization Method Name)

Submit your completed spreadsheet

Straight Line vs Effective Interest Amortization Methods
Ranger Co. issues bonds dated January 1, information about the bonds is below.
Interest is paid semiannually on June 30 and December 31.
Par
850,000
Rate
12%
Term
3
Market Rate
10%
Issue Price
893,131
Semi annual interest
51,000
1. What is the amount of the premium on these bonds at issuance?
Issue Price
Par
premium
premium amoritized per period
2. How much total bond interest expense will be recognized over the life of these bonds?
Total Bond Interest Expense Over Life of Bonds:
Amount repaid:
payments of
Par value at maturity
Total repaid
Less amount borrowed
Total bond interest expense
3. Prepare a straight-line amortization table for these bonds.
Semiannual
Interest PeriodEnd
1/1 yr 1
6/30 yr 1
1/1 yr 2
6/30 yr 2
1/1/ yr 3
6/30 yr 3
12/31 yr 3
Unamortized
Premium
Carrying Value
3. Prepare an effective Interest: amortization of these bonds.
Semiannual
Interest
Period-End
1/1 yr 1
6/30 yr 1
1/1 yr 2
6/30 yr 2
1/1/ yr 3
6/30 yr 3
12/31 yr 3
Total
Cash Interest
Paid
Bond Interest
Expense
Premium
Amorization
Unamoritzed
Premium
Carrying
Value
Bond Issuance
On January 1, Dallas Enterprises issues bonds that have a $2,250,000 par value, mature in 30 years,
and pay 8% interest semiannually on June 30 and December 31. The bonds are sold at par.
Par
$
2,250,000
Term
30
Rate
8%
1. How much interest will Boston pay (in cash) to the bondholders every six months?
Par (maturity)
Value
Semiannual Rate
x
=
2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on
June 30, and (c) the second interest payment on December 31.
No
Date
1
1-Jan
2
30-Jun
3
31-Dec
General Journal
Debit
3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 97 and (b) 105.
No
1
Date
1-Jan
2
1-Jan
General Journal
Debit
ar value, mature in 30 years,
nds are sold at par.
Semiannual Cash
Interest Payment
he first interest payment on
Credit
d at (a) 97 and (b) 105.
Credit
Misc Entries
1. On July 15, Longview Co. sold $25,000 of merchandise (costing $12,500) for cash. The sales
tax rate is 7%. On August 1, Longview sent the sales tax collected from the sale to the
government. Record entries for the July 15 and August 1 transactions.
Sales
$
25,000
Merchandise Cost
$
12,500
7%
Tax Rate
2. On November 3, the El Paso Hound Dogs sold a eight game pack of advance tickets for $4200
cash. On November 20, the Dogs played the first game of the 8 game pack (this represented
one-eighth of the advance ticket sales). Record the entries for the November 3 and November 20
transactions.
Advanced Ticket Sales
$
Total Games
8
Tickets $$ Per game
No
Date
1
15-Jul
2
15-Jul
3
1-Aug
4
3-Nov
5
20-Nov
4,200
General Journal
$
525
Debit
Credit