accounting help with journal entries
1. January 2: Mr. Burns sold 100,000 shares of common stock @ $10. The stock had a par value of $8
2. January 5: Mr. Burns collected $20,000 of prior accounts receivables by acquiring help from Fat Tony and the Mob.
3. January 5: Mr. Burns issued a bond (new bond) to raise the needed capital to enhance his evil empire in Springfield USA. The new bond is a five year 12%, $100,000 semi annual bond with an effective market rate of 10%. Payments are to be made semi-annually. The bond will be amortized using the effective interest method. Record the issuance of the new bond. Round to the nearest dollar.
4. February 4: Mr. Burns bought a new car to speed up delivery time. Mr. Burns bought the car outright for $20,000. The car is expected to have a useful life of 150,000 miles.
5. February 10: Mr. Burns bought $200,000 of inventory on account. The freight cost was $2,000. The terms were FOB Destination.
6. March 1: Mr. Burns paid off what he originally owed in accounts payable at the beginning of the year.
7. March 15: Mr. Burns paid income tax from last year.
8. April 1: Mr. Burns wrote off a $1,000 of accounts receivable that he knew that he would never be able to collect from Homer Simpson. Record the write-off.
9. April 15: Mr. Burns sold on account $700,000 (2/10, n30) to city of Springfield. The cost of merchandise sold was $300,000
10. April 20: Because a couple of cookie batches had radiation contamination, they were returned. $100,000 of inventory was returned. The cost of merchandise sold was $40,000.
11. May 1: The city of Springfield paid Mr. Burns for the shipment of cookies in entry 9 and 10.
12. July 1: Mr. Burns made the third interest payment and amortized using the effective interest method on the old bond from January 1, 2011. This bond was a five year, semi annual bond with a face value of $100,000, effective market rate of 8%, and coupon rate of 6%. Payments are made semi-annual. Record the interest payment and the amortization. Round to the nearest dollar.
