Qurak Corporations was established 4 years ago by a TCC alumni. Located by the Narrows bridge in Tacoma, the company pridesitself in sustainable geoduck fishing. Business is booming, and the company wants to purchase an additional fishing vessel. Qurak willborrow $225,000 cash on December 1 of the current year by signing a 120-day, 8%, $225,000 note. Prepare journal entries to record(a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity.Complete this question by entering your answers in the tabs below.JEPrepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note atmaturity.Note: Use 360 days a year. Do not round intermediate calculations.View transaction list1Record the issuance of the note on December 1.2Record the interest accrued on the note as of December31, current year.3Record payment of the note at maturity, assuming noreversing entries were made on January 1.Note:= journal entry has been entered☑Credit

1. Issuance of the Note on December 1When Qurak borrows $225,000 by issuing a note, the company…

Answered: Qurak Corporations was established 4…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 27P

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On January 1, 2020, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $90,000 cash. The new company, Arkansas Sales and Service, has the following transactions during January. 1. Pays $6,000 in advance for 3 months’ rent of office, showroom, and repair space. 2. Purchases 40 personal computers at a cost of $1,500 each, 6 graphics computers at a cost of $2,500 each, and 25 printers at a cost of $300 each, paying cash upon delivery. 3. Sales, repair, and office employees earn $12,600 in salaries and wages during January, of which $3,000 was still payable at the end of January. 4. Sells 30 personal computers at $2,550 each, 4 graphics computers for $3,600 each, and 15 printers for $500 each; $75,000 is received in cash in January, and $23,400 is sold on a deferred payment basis. 5. Other operating expenses of $8,400 are incurred and paid for during January; $2,000 of incurred expenses are payable at January 31.…
Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bicycles. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,000,000 of 11 percent corporate bonds on April 1, 2019, due on April 1, 2033. Interest is payable annually on April 1 each year. At the time the bonds were issued, the market interest rate for similar financial securities is 10 percent. Determine the selling price of the bonds.
Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bicycles. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,000,000 of 11 percent corporate bonds on April 1, 2019, due on April 1, 2033. Interest is payable annually on April 1 each year. At the time the bonds were issued, the market interest rate for similar financial securities is 10 percent. Determine the selling price of the bonds. The company, having issued the bonds in part (b), is committed to make annual sinking fund deposits of $90,000. The deposits are made on the last day of each year and yield a return on 10 percent. Will the fund at the end of 15 years be sufficient to retire the bonds? If not, what is the amount of the deficiency?
Mr. and Mrs. Patel, local golf stars, opened the Patel Chip‐Shot Driving Range Company on March 1, 2020. They invested $25,000 cash and received common stock in exchange for their investment. A caddy shack was constructed for cash at a cost of $8,000, and $800 was spent on golf balls and golf clubs. The Patels leased five acres of land at a cost of $1,000 per month and paid the first month's rent. During the first month, advertising costs totaled $750, of which $150 was unpaid at March 31, and $400 was paid to members of the high‐school golf team for retrieving golf balls. All revenues from customers were deposited in the company's bank account. On March 15, the Patels received a dividend of $1,000. A $100 utility bill was received on March 31 but was not paid. On March 31, the balance in the company's bank account was $18,900. The Patels thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of $6,100 to a net income of…
Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing in the design and manufacturing of armrests for the wheelchair industry.A-Design invested $100,000 in aproduction machine, which has auseful life of 10 years, and put $10,000 in its bank account. In an attempt to improve company sales and profits, Mr. Don planned tooffer two purchasing options to the clients of his company Option 1:$250 deposit upfront$500 yearly fee for 5 years Option 2:$1300 deposit upfront$300 yearly fee for 3 years Assuming an interest rate of 5% per year over a period of 5 years on the moneyput in the bank, how much will A-Design have in its bank account at the end of thefirst year?
Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing in the design and manufacturing of armrests for the wheelchair industry.A-Design invested $100,000 in aproduction machine, which has auseful life of 10 years, and put $10,000 in its bank account. In an attempt to improve company sales and profits, Mr. Don planned tooffer two purchasing options to the clients of his company Option 1:$250 deposit upfront$500 yearly fee for 5 years Option 2:$1300 deposit upfront$300 yearly fee for 3 years Do a discounted cash flow analysis and determine the best option offered by Mr. Don to his clients, assuming a 10 % per year compound interest rate.
Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing in the design and manufacturing of armrests for the wheelchair industry.A-Design invested $100,000 in aproduction machine, which has auseful life of 10 years, and put $10,000 in its bank account. In an attempt to improve company sales and profits, Mr. Don planned tooffer two purchasing options to the clients of his company Option 1:$250 deposit upfront$500 yearly fee for 5 years Option 2:$1300 deposit upfront$300 yearly fee for 3 years Calculate the depreciated cost per year of the machine.
Thirty years ago, a group of civic-minded merchants in Mayfair organized the ‘‘Committee of 100’’ for the purpose of establishing the Mayfair Sports Club, a not-for-profit sports organization for local youth. Each of the committee’s 100 members contributed $1,000 toward the club’s capital. In addition, each participant agreed to pay dues of $200 a year for the club’s operations. All dues have been collected in full by the end of each fiscal year, which ends on March 31. Members who have discontinued their participation have been replaced by an equal number of new members by transferring the participation certificates from the former members to the new ones.Following are the Club’s trial balances at April 1, 2018: Debit CreditCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,000Investments (at market value, equal to cost) . . . . . 88,000Inventories .…
On January 1, 2006, a graduate student developed a 5-year financial plan which would provide enough money at the end of her graduate work (January 1, 2011) to open a business of her own. Her plan was to deposit $8,000 per year for 5 years, starting immediately, into an account paying 10 percent compounded annually. Her activities proceeded according to plan except that at the end of her third year (1/1/09) she withdrew $5,000 to take a Caribbean cruise, at the end of the fourth year (1/1/10) she withdrew $5,000 to buy a used Prelude, and at the end of the fifth year (1/1/11) she had to withdraw $5,000 to pay to have her dissertation typed. Her account, at the end of the fifth year, was less than the amount she had originally planned on by how much? Group of answer choices $15,373 $16,550 $32,290 $38,352 $13,975
Raffie’s Kids, a nonprofit organization that provides aid to victims of domestic violence, low-income families, and special-needs children, has a 30-year, 5% mortgage on the existing building. The mortgage requires monthly payments of $3,000. Raffie’s bookkeeper is preparing financial statements for the board and, in doing so, lists the mortgage balance of $287,000 under current liabilities because the board hopes to be able to pay the mortgage off in full next year. Of the mortgage principal, $20,000 will be paid next year if Raffie’s pays according to the mortgage agreement. The board members call you, their trusted CPA, to advise them on how Raffie’s Kids should report the mortgage on its balance sheet.
. In January of 2021, Charles Berkley Entertainment, Inc. donated a pearl colored 1962 Rolls Royce Silver Cloud automobile to Auburn University. The coach of the basketball team has used the automobile for the recruiting of academic scholars to Auburn University for just over a year. The corporation bought the car about 10 years ago as an investment and has $100,000 invested in the car. However, the car is actually worth $125,000. The senior partner in your firm wants you to do the return. How much of the realized gain does Charles Berkley Entertainment, Inc. have to report on its income tax return and how much of a charitable deduction can the corporation take?

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