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XACC 291 Week 4 - P10-1A, P10-6A, and BYP10-7

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Description

XACC 291 Week 4 Answer Guide

The following ACC 291 accounting study guide is designed to help students taking accounting principles II at the undergraduate level. 

What's Included in the Study Guide?

  • Full Solutions for P10-1A, P10-6A, and BYP10-7
  • All Work Shown
  • Textbook: Financial accounting: Tools for business decision making
    7th Edition
  • Unlimited Additional Support from ACCNerd Accounting Experts

Preview of Solutions

P10-1A

On January 1, 2011, the ledger of Mane Company contains the following liability accounts.

  •  Accounts Payable $52,000
  •  Sales Taxes Payable 7,700
  • Unearned Service Revenue 16,000

During January the following selected transactions occurred.

  •  12 Provided services for customers who had made advance payments of $10,000. (Credit Service Revenue.)
  •  14 Paid state revenue department for sales taxes collected in December 2010 ($7,700).
  •  20 Sold 800 units of a new product on credit at $50 per unit, plus 8% sales tax.
  •  21 Borrowed $18,000 from UCLA Bank on a 3-month, 8%, $18,000 note.
  •  25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes.

Instructions

 

(a) Journalize the January transactions. 

Jan 5th

Cash

22,680

 

 

  Sales

 

21,000

 

  Sales Tax Payable

 

1,680

 

Jan 12th

Unearned Revenue

10,000

 

 

  Service Revenue

 

10,000

P10-6A

On July 1, 2011, Atwater Corporation issued $2,000,000 face value, 10%, 10-year bonds at $2,271,813. This price resulted in an effective-interest rate of 8% on the bonds. Atwater uses the effective-interest method to amortize bond premium or discount. The bonds pay semi-annual interest July 1 and January 1.

BYP 10-7

Income tax questions and answers: a through g. 

Get full solutions and tutoring support on the full study guide 

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