Bagwell Furniture Company started construction of a combinat…

Bagwell Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $2,500,000 on January 1, 2020. Bagwell expected to complete the building by December 31, 2020. Bagwell has the following debt obligations outstanding during the construction period. Construction loan—15% interest, payable semiannually, issued December 31, 2019 $1,000,000 Short-term loan—10% interest, payable monthly, and principal payable at maturity on May 30, 2021 700,000 Long-term loan—11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 500,000 Instructions Assume that Bagwell completed the office and warehouse building on December 31, 2020, as planned, at a total cost of $2,600,000, and the weighted average of accumulated expenditures was $1,800,000. Compute the amount of interest to be capitalized on this project.

The bank statement for Soprano Company indicates a balance o…

The bank statement for Soprano Company indicates a balance of $8,000.20 on June 30. The company’s cash account had a balance of $3,277.10.  The following additional items were noted: Cash sales of $342 had been erroneously recorded on Soprano’s records as $324. Deposits in transit at 6/30 totaled $600.00. Bank service charges were $20.00. The bank had collected a note of $3,000.00, plus $50.00 interest owed to Soprano. An NSF (not sufficient funds) check in the amount of $717.40 was returned by the bank. Checks outstanding totaled $2,992.50. Instructions Complete a bank reconciliation and prepare the journal entry(ies) to record the necessary changes to Soprano’s cash account.

Items concerning the accounts of the Doolittle Company for t…

Items concerning the accounts of the Doolittle Company for the current year are described below.  Prepare a December 31 year-end adjusting entry for each item, or indicate that an adjusting entry is not necessary.  Assume that transactions were initially recorded in real (balance sheet) accounts unless otherwise indicated. On July 1, a two-year comprehensive insurance policy was purchased for $1,200. The payment was debited to prepaid insurance. On January 1, the Office Supplies account had a $250 balance.  Supplies costing $1,000 were purchased during the year.  At December 31, an inventory count showed $300 of supplies on hand. As of December 31, $3,750 of employee salaries had been earned but not paid.  No entry for these unpaid salaries was previously recorded. Straight-line depreciation is used for a building purchased 5 years ago for $30,000, with an expected life of 30 years and an estimated residual value of $3,000. Entries to record depreciation were made each month through November. The income tax rate is 30% on current income.  Pretax income before the above adjusting entries was $17,075.

Journalize the following transactions.  Total your debits an…

Journalize the following transactions.  Total your debits and credits to prove that they balance. You may omit descriptions. A business issued common stock for $20,000 cash. Paid $2,500 cash for advertising for the current month. Paid $4,000 cash for office equipment. Purchased $800 of office supplies on account. Recorded $7,000 of revenue, receiving half in cash and half will be received next moth. Note: If it helps to analyze these using the accounting equation, refer to Problem 13.

Before closing the revenue and expense accounts for the mont…

Before closing the revenue and expense accounts for the month of June ABC Company’s Retained Earnings Account had a $50,000 credit balance. ABC’s Net Income for June was $30,000.  ABC declared and paid a $5,000 dividend in June.  The June beginning balance in ABC’s Cash Account was $35,000 and the June ending balance in the Cash Account was $25,000.  The Retained Earnings amount shown on ABC’s June 30th Balance Sheet should be:

Part 3: Short Problems (70 points) You must use this file to…

Part 3: Short Problems (70 points) You must use this file to complete your work for questions 13-17. Download the file: Midterm 1 Work Template.xlsx  Click OK to navigate away from your browser page Save it to your desktop renamed: LastnameFirstnameMidterm1ACCT5101 (Example: JohnsonScottMidterm1ACCT5101) Save your work regularly or turn on Autosave Since I am only allowing one screen, a best practice is to split your screen so you can see the exam questions and work in your Excel file without switching back and forth. Each question is formatted as a file upload question so that all your work is included in your Excel file. You only need to upload your file once. When you have completed the exam, upload your Excel file in the last question.