Solved by verified expert :Please I need the solution under each question on file word, and you
will find Problem 13-2 inPart 3, Exercise 8-8 in Part
5, Exercise 14-15 inPart 6 and AP7-1 inPart 8 on file tow as pictures from textbook.
Part 1:
Robert and Chip organized Chipper Corporation on January 1, 2008. Each of these owners invested $100,000 cash
and received shares of stock. Below are
selected transactions that were completed during January 2008:
(1) Owner’s invested
$100,000 each to start the business.
(2) Prepaid three (3)
months rent for $15,000 ($5,000 each month).
(3) Purchased
equipment by signing a $75,000 note payable for $50,000 and paying the
remainder in cash.
(4) Purchased two
service vehicles for $24,000 each, paid $20,000 cash.
(5) Purchased $1,000
of supplies on account.
(6) Sales revenue on
account was $85,000.
(7)
Paid expenses of $48,000.
(8) Collected $42,000
from customers on account.
(9) Paid $2,000 on
the note payable for the equipment and $1000 for the note payable for the
service vehicles.
Record each transaction in journal form and post to the appropriate
accounts in the ledger. Prepare a Trial
Balance for January 31, 2008.
Part 2:
(A) On July 1, 2009, Bass Company paid a two-year insurance
premium. On that date the following journal entry was made:
The annual
accounting period ends on December 31.
A. How much of the premium should be reported as expense on the 2009 income
statement?
B. What is the amount of prepaid insurance which should be reported on the
balance sheet at December 31, 2009?
C. Give the adjusting entry that should be made on December 31, 2009.
(B) Bridge Company keeps a small
inventory of supplies used for cleaning and maintenance purposes. On January 1, 2008 the inventory of supplies
on hand was $2,500. During the year,
supplies purchased were debited to the supplies account in the amount of
$6,200. On December 31, 2008, the
inventory count of supplies in the storeroom was $1,750. Provide the journal entry to record the
purchase of supplies during 2008.
Provide the adjusting entry required on December 31, 2008.
Part 3:
Preparing a Statement of
Cash Flows (Indirect Method)
Problem 13-2 on page 681 of
the Libby textbook
Part 4:
On January 1, 2009, Clintwood Corporation issued
a $50,000, ten-year, 6% bond payable (interest payable semi annually on June 30
and December 31). For the three
assumptions below, complete the following schedule assuming the accounting year
ends December 31, and straight-line amortization is used:
D. Provide the June 30 and December 31, 2009
journal entries to record interest expense and the payment of interest.
Part 5:
Computing Depreciation under
Alternative Methods
Exercise 8-8 on page 428 of
the Libby textbook.
Part 6:
Computing Liquidity Ratios
Exercise 14-15 on page 726 of the Libby
Textbook
Part 7
Matthew is considering several possible investment alternatives:
Option A: Matthew could receive $8,000
today.
Option B: Matthew could receive $2,500
at the end of each of the next four years.
Option C: Matthew could receive $12,000
five years from now.
Required:
Calculate the net present value for each
option assuming that Matthew can earn 7 percent on any investment funds.
Which option results in
the greatest financial benefit to Matthew?
If Matthew earns 10
percent, will that change your answer to # 2 above? Please explain.
Part 8
Analyzing the Effects of Four Alternative
Inventory Methods
AP7-1 on page 379 of the Libby Textbook
