Blog

Periodic interest payments on bonds are determined by multiplying the par value of the bond by the contract rate.

On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What is the journal entry to record the first annual payment?

Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the first year of its useful life using the double-declining-balance method?

Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 5 years with a $4,000 salvage value. The machine’s book value at the end of year 2 is:

An accelerated depreciation method yields larger depreciation expense in the early years of an asset’s life and less depreciation expense in later years.

On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What is the journal entry to record the first annual payment?

On September 1, Knack Company signed a $50,000, 90-day, 5% note payable with Central Savings Bank. What is the journal entry that should be recorded by Knack upon maturity of the note? (Use 360 days a year.)

Financial accounting and tax accounting require the same recordkeeping and there should be no difference in results between the two accounting systems.

An employee earnings report is a cumulative record of each employee’s hours worked, gross earnings, deductions, and net pay.

The contract rate on previously issued bonds changes as the market rate of interest changes.