Accounts Essay

687 WordsNov 22, 20143 Pages
On April 1, 2014, West Company purchased $395,000 of 6.00% bonds for $410,550 plus accrued interest as an available-for-sale security. Interest is paid on July 1 and January 1 and the bonds mature on July 1, 2019. | | | | | | | Prepare the journal entry on April 1, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date | Account Titles and Explanation | Debit | Credit | Apr. 1, 2014 | | | | | | | | | | | | | Show List of Accounts | | | | | | | The bonds are sold on November 1, 2015 at 103 plus accrued interest. Amortization was recorded when interest was received by the straight-line method. Prepare all entries required to properly record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation | Debit | Credit | | | | | | | (To record amortization.) | | | | | | | | | (To record interest.) | | | | | | | | | | | | (To record the sale of the bonds.) | | | | | | Click if you would like to Show Work for this question: | Open Show Work | | | | Question 2Pole Co. at the end of 2015, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income | | $400,000 | | Extra depreciation taken for tax purposes | | (1,008,000) | Estimated expenses deductible for taxes when paid | | 870,000 | | Taxable income | | $262,000 | | Use of the depreciable assets will result in taxable amounts of

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