Jose Corporation had the following transactions pertaining to debt instruments.
ID: 2484355 • Letter: J
Question
Jose Corporation had the following transactions pertaining to debt instruments. Jan, 1 Purchased 70 Meierhoff Co.5%, $1,000 bonds for $70,000 cash. Interest is payable semiannually on July 1 and January 1. July 1 Received semiannual interest on Meierhoff Co. bonds. July 1 Sold 30 Meierhoff Co. bonds for $33,500. The transactions. Prepare the adjusting entry for the annual of interest at December 31. Kiney Company purchased 50 store Company 12%. 10-year, $1,000 bonds on January 1, 2014, for $50,000. The bonds pay interest semiannually. ON January 1, 2015, after receipt of interest, Kiney Company sold 30 of the bonds for $28,100. Prepare the journal entries to record the transactions described above. Overbay Corporation had the following transactions. Sold land (cost $12,000) for $16,000. Issued common stock for $25,000. Recorded depreciation of $20,000. Paid salaries of $12,000. Issued 1,000 shares of par value common stock for equipment worth $12,000. Sold equipment (cost $10,000, accumulated depreciation $7,000) for $2,000. For each transaction above the journal entry, and (b) indicates how it would affect the statement of cash flows. Assume the indirect method. Napoli Company reported net income of $155,000 for 2014. Napoli also reported depreciation expense of $25,000 and a loss of $5,000 on the sale of equipment. The comparative balance sheet shows a decrease in accounts receivable of $10,000 for the year, a $12,000 increase in accounts payble, and a $4,000 decrease in prepaid expenses. Prepare the operating activities section of the statements of each flows for 2014. Use the indirect method.Explanation / Answer
E16-1B 1-Jan Investment In Bonds $70,000 Cash $70,000 (Being purchase of Bonds) 1-Jul Cash (70000*4%) $2,800.00 Interest Revenue $2,800.00 (Being Interest received) 1-Jul Cash 33500 gain on sale of Investment on Bond (33500-30000) 3500 Investment In Bonds (1000*30) 30000 (Being bonds sold) E16-2B 1-Jan Investment In Bonds $50,000 Cash $50,000 (Being purchase of Bonds) 1 july 2014 Cash (50000*6%) 3000 Interest Revenue 3000 (Being Interest received) 1 Jan 2015 Cash (50000*6%) 3000 Interest Revenue 3000 (Being Interest received) 1 Jan 2015 Cash 28100 Loss on sale of Investment on Bond (28100-30000) 1900 Investment In Bonds (1000*30) 30000 (Being bonds sold) E17 -1B 1 Cash 16000 Land 12000 Gain On sale of land 4000 2 Cash 25000 Common stock 25000 3 Depreciation expense 20000 Accumulated depreciation 20000 4 Salaries expenses 12000 Cash 12000 5 Equipment 12000 Common Stock 1000 Paid in capital In excess of par 11000 6 Cash 2000 Loss on sale of equipment 1000 Accumulated depreciation 7000 Equipment 10000 Cash flow from opearting activities -12000 Cash flow from Investing activities 19000 Cash flow from Financing activities 25000 Net Increase in cash flow 32000 Dear user please don’t post multiple questions. I have answered the first three
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