Question

Financial Statement Homework 3 Name YOU MUST SUBMIT ALL HANDWRITTEN PAGES OF THIS DOCUMENT FRAM TITILINI jutro the owne r of the . UW ONLY the othe r Ondo The event th e company previously ated to the were to become fare le concor rere December 31, 2017

Answer 1

Bisbee Mountain Company Journal entries Date Account 1-Dec Building LT Mortgage payable Credit Calculation Debit $ 300,000 $ 300,000 $ 6,000 25-Dec Cash Common Stock-$1.25 par Paid in Capital in Excess of Par-CS =1,000*1.25 $ $ 1,250 4,750 $ 255,000 =((105,000/1.25)+1,000)*3 29-Dec Dividends Dividends Payable $ 255,000 31-Dec LT Mortgage payable Interest expense Cash $ $ 1,800 2,000 =3,800-1,800 =300,000*8%*1/12 $ 3,800 $ 300 =22,500*8%*2/12 31-Dec Interest expense Interest Payable $ 300 31-Dec Interest expense Premium on Bonds Payable Cash $ $ 26,147 3,853 =(350,000+26,840)*8% balancing figure =300,000*10% $ 30,000 $ 14,000 =24,000-10,000 31-Dec Unearned Revenue Sales Revenue $ 14,000 $ 550 =50*11 31-Dec Treasury Stock Cash $ 550

Have only shown T Accounts where changes are there due to above journal entries:

Credit Credit Bisbee Mountain Company T Accounts Date Debit Date Credit Date Debit Date Cash Building Op bal $ 172,000 31-Dec $ 3,800 Op bal $ . 25-Dec $ 6,000 31-Dec $ 30,000 1-Dec $ 300,000 31-Dec $ 550 Date Debit Date Credit LT Mortgage payable Op bal $ - 31-Dec $ 1,800 1-Dec $300,000 Date Debit Date Unearned Revenue 31-Dec $ 14,000 Op bal $ 24,000 Bal. $ 298,200 $ 143,650 Common Stock - $1.25 par Op bal $ 105,000 25-Dec $ 1,250 Bal. $300,000 Paid in Capital in Excess of Par-CS Op bal $ 86,000 25-Dec $ 4,750 Bal. Dividends Op bal $ 2,000 29-Dec $ 255,000 Bal. $10,000 Interest Payable Op bal $ . 31-Dec $ 300 $ 90,750 Bal. Bal. $ 300 al. Treasury Stock $ 106,250 Premium on Bonds Payable 31-Dec $ 3,853 Op bal $ 26,840 Op bal $ 31-Dec $ $ 257,000 Dividends Payable Op bal $ 29-Dec $255,000 550 Bal. $ 255,000 Bal. $ 22,987 Bal. $ 550 Sales Revenue Interest expense Op bal $390,160 Op bal $ 6,500 31-Dec $ 14,000 31-Dec $ 2,000 31-Dec $ 300 31-Dec $ 26,147 $ 404,160 Bal. $ 34,947

Bisbee Mountain Company Trial Balance Cash Accounts Receivable Allowance for doubtful accounts Short term Note receivable Supplies Inventory Equipment Building Accumulated Depreciaiton Copyright Accounts Payable Dividends Payable Interest Payable Unearned Revenue ST Note Payable LT Mortgage Payable Bonds Payable Premium on Bonds Payable Common Stock-$1.25 par Paid in Capital in Excess of Par-CS Preferred Stock-$5 par Paid in Capital in Excess of Par-PS Treasury Stock Retained earnings Dividends Sales Revenue Sales returns & allowances Sales discounts Cost of goods sold Bad Debt expense Depreciation expense Wages expense Rent expense Insurance expense Supplies expense Interest Revenue Interest expense Gain on sale of equipment Income tax expense Totals Adjusted Dec TB Debit Credit 143,650 124,000 1,000 50,000 55,000 62,000 75,000 300,000 32,000 94,000 12,000 255,000 300 10,000 22,500 298,200 300,000 22,987 106,250 90,750 1,000 50,000 550 3,500 257,000 404,160 7,000 3,000 46,000 5,000 16,000 167,500 98,000 25,000 16,000 1,000 34,947 15,000 46,000 1,625,647 1,625,647