College of Mount Saint Vincent Accounting Millwoods Enterprises There have 3 chapters assignment need to do, please write down the whole process, not just
College of Mount Saint Vincent Accounting Millwoods Enterprises There have 3 chapters assignment need to do, please write down the whole process, not just an answer. I will provide the questions at the below. And use 3 PDF for each chapter. Busi 2222 Handout Assignment ch 13
Due: February 12, 2020
Chapter 13 Handout Assignment
Question 1
During its first year of operations, Millwoods Enterprises Inc. had the following transactions related to
its common shares:
Jan 5 Issued 5,000 common shares to Michelle Vogel for $ 1 each.
Mar 15 Issued 10,000 common shares in exchange for equipment transferred from Vogel. The
equipment was valued at $ 40,000.
Apr 10 Issued 3,500 shares to a consulting firm for management consulting services as settlement
of a $ 14,000 invoice.
Sep 30 Issued 4,000 common shares to Renee Vogel for $ 5 each.
Instructions
a) Journalize the share transactions.
b) Calculate the average cost of the common shares of Millwoods Enterprises Inc. at December 31.
Question 2
Exercise 19
Bancroft Holdings Inc. has authorized share capital of an unlimited number of common shares and
1,000,000 preferred, $ 3-cumulative preferred shares. At January 1, 2021, the balances in its share
capital accounts were $ 45,000 in common shares representing 15,000 shares and $ 30,000 in
preferred shares representing 1,000 shares. The retained earnings balance on that date was $ 180,000.
Profit for the year ending December 31, 2021 was $ 24,000. There were no dividends in arrears at
January 1, 2021 and no dividends were declared during 2021.
During 2021, Bancroft had the following share transactions:
Mar 1
Issued 4,000 common shares for $ 5 each.
Jun 30
Issued 500 preferred shares for $ 11 each.
Sep 1
Issued 60,000 common shares in exchange for land valued at $ 285,000.
Instructions
a) Journalize the share transactions.
b) Prepare the equity section of Bancrofts balance sheet at December 31, 2021 and describe any
disclosure requirements related to share capital.
c) Calculate return on equity for 2021.
Busi 2222 Handout Assignment ch 14
Due: March 4, 2020
Chapter 14 Handout Assignment
Question 1
Mana Inc. had the following balances in its shareholders’ equity at the beginning of the current year
(January 1, 2021):
Preferred shares ($ 1.50, cumulative*, 100,000
shares authorized, 5,000 shares issued) …………………………………………….
Common shares unlimited shares authorized, 8,000 shares issued …………….
Retained earnings…………………………………………………………………………………..
Total shareholders’ equity ………………………………………………………………………
*two years of dividends are in arrears.
$ 25,000
160,000
92,000
$ 277,000
During the year ended December 31, 2021, the following transactions took place:
1. On January 1, issued 9,000 common shares at $ 18 per share.
2. On July 1, declared a 10% stock dividend on the common shares, market price $ 18.50 per share.
The dividend is to be paid on August 15 to shareholders of record on July 31.
3. On August 15, the company paid the stock dividend.
4. On September 15, Ryders board of directors declared a 4-for-1 stock split.
During the year, the company had a profit of $ 85,000.
Instructions
a) Prepare the journal entries to record the above transactions. Closing entries are not required.
b) Prepare a statement of changes in shareholders equity for 2021.
c) Prepare the shareholders equity section of the balance sheet at December 31, 2021.
Busi 2222 Handout Assignment ch 15
Due: March 18, 2020
Chapter 15 Handout Assignment
Question 1
Prairie Corporation issued $ 100,000 of 10-year, 6% bonds payable on January 1, 2021 for $ 92,900, at a
time when market interest rates were 7%. Interest is payable semi-annually on June 30 and December
31. On January 1, 2022, 20% of the bonds were redeemed at 101. Prairie has a December 31 year end
and uses the effective-interest method in accounting for bonds payable.
Instructions
a) Record the issue of the bonds on January 1, 2021.
b) Record the payment of interest on June 30 and December 31, 2021.
c) Show how the bonds would be reported on Prairies December 31, 2021 balance sheet.
Busi 2222 Handout Assignment ch 15
Due: March 18, 2020
Question 2
Millet Sales Corp., a public company, is planning to acquire new computers with a total value of $
60,000 on January 1, 2021. They have a choice of leasing the computers for a three-year period, or
purchasing them and financing the purchase by issuing a note payable. Details of the two alternative
arrangements are as follows:
Lease option: Three annual lease payments of $ 22,446 due on December 31 of each year. Millet would
purchase the computers at the end of the three years for $ 2.00.
Financing option: Millet would make a down payment of $ 10,000 and issue a 6%, 3-year note payable
for the remaining balance, with annual blended payments of $ 18,705 required on December 31 of
each year.
Instructions
a) Is the lease arrangement an operating or finance lease? Explain your choice. Record any entry
required on January 1, 2021.
b) Prepare the amortization table for the note payable. Record any entry required on January 1,
2021.
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