12-06-2009, 12:14 PM
Hello!First time poster and very new to financial accounting,so if I make a mistake or error let me know![)]
So, Ive been working on a project and Im stuck on a few transactions on my G/L (Not balancing on the A=L+OE+IS)Im not sure how to figure/where to place them in terms of their proper account name and if there a Debit or Credit. I'm hoping someone with accounting experience can help!
Here it goes...
<b>1. </b> Company X issued 500 bonds for $1,000 each. Terms on the bond are as follow; face value is $1,000 due in 5 years, face rate of 6% interest payments are due semi-annually on May 31st and Nov. 30th of every year?
<b>2.</b> Company X recorded 1 month of interest expense payable on the bonds?
<b>3.</b> Company X bought a truck worth 50,000 under a 5 year <u>operating lease</u> from Chevy with payments of $1,000 due on the 5th of every month, Company X made the first payment of $1,000 electronically?
<b>4.</b> Company X bought out Company Y for $700,000 cash with a check. Included was Equiptment of $500,000 and a Note Payable due to company Z of $400,000. The rest of the purchase included good will.
(There was an hint given, record all amounts listed here & goodwill, 4 line items)?
I hope some one can help!
Thanks again for your time!!!
So, Ive been working on a project and Im stuck on a few transactions on my G/L (Not balancing on the A=L+OE+IS)Im not sure how to figure/where to place them in terms of their proper account name and if there a Debit or Credit. I'm hoping someone with accounting experience can help!
Here it goes...
<b>1. </b> Company X issued 500 bonds for $1,000 each. Terms on the bond are as follow; face value is $1,000 due in 5 years, face rate of 6% interest payments are due semi-annually on May 31st and Nov. 30th of every year?
<b>2.</b> Company X recorded 1 month of interest expense payable on the bonds?
<b>3.</b> Company X bought a truck worth 50,000 under a 5 year <u>operating lease</u> from Chevy with payments of $1,000 due on the 5th of every month, Company X made the first payment of $1,000 electronically?
<b>4.</b> Company X bought out Company Y for $700,000 cash with a check. Included was Equiptment of $500,000 and a Note Payable due to company Z of $400,000. The rest of the purchase included good will.
(There was an hint given, record all amounts listed here & goodwill, 4 line items)?
I hope some one can help!
Thanks again for your time!!!
