A = L + SE
Cash unearned rent revenue rent revenue
(a)+15,000 = +15,000
(b)-5,000 +5,000
(c)-5,000 +5,000
(d)-5,000 +5,000
The Trucano Company
A = L + SE
Cash prepaid rent rent expense
(a)-15,000 +15,000 =
(b) -5,000 = -5,000
(c) -5,000 = -5,000
(d)-5,000 = -5,000
Onwer of property
(a) cash……………………………………15,000
unearned rent revenue ……………….. 15,000
(b) unearned rent revenue…………………5,000
rent revenue ………………………….. 5,000
The Trucano Company
(a) prepaid rent ……………………..15,000
cash ……………………………… 15,000
(b) rent expense………………………5,000
prepaid rent …………………….. 5,000
Task 2
a.($38,000-$5,000)/5=$6,600
b.(100%/3)*2=200%/3 per year
year1:$18,000*(200%/3)=$12,000
year2:($18,000-$12,000)*(200%/3)=$4,000
year3:($18,000-$12,000-$4,000)*(200%/3)=$4,000/3
Task 3
1. Compute the proceeds from issuing the debentures.
The total expenses = issuance + interest expense =10million + 10milliom* 10% *5 = 15million.
2. Analysis the bond transaction
Assets = liabilities + stockholders’ equity
Cash bonds payable retained income
.Issuer’s records
1. Issuance +10000,000 = +10000,000
2. Semiannual interest -500,000 = -50,000
3. Maturity value -10000,000 = -10000,000
3. Show journal entries
(1) Cash +10000,000
Bonds payable +10000,000
To record proceeds upon issuance of10%
(2) Interest expense +500,000
Cash +.500,000
To record payment of interest each six-month period
(3) Bonds payable +10000,000
Cash +10000,000
4.
Issuer’s records
(1) Electronics +1500,000 = +1500,000
(2) Semiannual
Interst +5-0,000 = +150,000
Task 4
issued shares：1,877 million
outstanding = issued shares- treasury stock
=1,877 million -72 million
=1,805 million
Unissued = Authorized - issued
=4,688 million-1,877 million
=2,811 million