Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows:

a. Determine the factory overhead rate for Factory 1.
$ per machine hour

b. Determine the factory overhead rate for Factory 2.
$ per direct labor hour

c. Journalize the entries to apply factory overhead to production in each factory for March.

d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.

Gustav Leasing Company agrees to lease equipment to Julliard Corporation on January 1, 2017. The

following information relates to the lease agreement.

1. The term of the lease is 6 years with no renewal option, and the machinery has an estimated

economic life of 8 years.

2. The cost of the machinery is $310,000, and the fair value of the asset on January 1, 2017, is $424,000.

3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of

$35,000. Julliard estimates that the expected residual value at the end of the lease term will be $35,000.

Julliard amortizes all of its leased equipment on a straight-line basis.

4. The lease agreement requires equal annual rental payments, beginning on January 1, 2017.

5. The collectability of the lease payments is probable.

6. Gustav desires a 6% rate of return on its investments. Julliard’s incremental borrowing rate is 8%, and

the lessor’s implicit rate is unknown.

(Assume the accounting period ends on December 31)

(a) Discuss the nature of this lease for both the lessee and the lessor.

(b) Calculate the amount of the annual rental payment required.

(c) Compute the value of the lease liability to the lessee.

(d) Prepare the journal entries Julliard would make in 2017 and 2018 related to the lease arrangement.

(e) Prepare the journal entries Gustav would make in 2017 and 2018 related to the lease arrangement.

(f) Suppose Julliard expects the residual value at the end of the lease term to be $28,000 but still

guarantees a residual of $35,000. Compute the value of the lease liability at lease commencement.

(g) Suppose the residual value is unguaranteed, how would Gustav’s journal entries change?

Wildhorse Co. markets CDs of numerous performing artists. At the beginning of March, Wildhorse had in beginning inventory 2,500 CDs with a unit cost of $8. During March, Wildhorse made the following purchases of CDs.

During March 11,600 units were sold. Wildhorse uses a periodic inventory system.

Determine the cost of goods available for sale.

Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.)

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List of Accounts

Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 125.)

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List of Accounts

Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?

Rebeca Pérez is the Controller of the firm Pérez Martínez & Asociados. She has been evaluating inventory reports over the past few months and thinks that one or more employees have been stealing large amounts of inventory that was for sale. Quickly, Rebeca asked the staff that manages the information systems to look for data that would help her solve this situation, however, they indicated that, mysteriously, much of the inventory information had been lost and they had no explanation for it. Rebeca talked to the company's internal auditors to ask about the missing reports and they were not aware of the situation either.

Based on the above, answer the following questions in paragraph form (5 to 6 sentences each):

1. What should Rebecca do? Should she call the police or should she hire an outside forensic accountant?

2. How can a forensic accountant help you solve this case? Look for outside information to elaborate on your answer.

3. What things can the forensic accountant do that an internal auditor cannot do?

Summary Balance sheet of Kishore Food Products Private Limited is given.

You are required to prepare the cash flow statement using the indirect method after considering the additional information given below.

Depreciation provided for the year was land and building 60000, Machinery 50000 and furniture 1200.

Previous year tax provision was paid during the year and current year tax provision 40500 was yet to be paid at the year end.

Proposed dividend of previous year was paid during the year and fresh provision was made at this year end.  

On June 1, 2016, Everly Bottle Company sold $3,000,000 in long-term bonds for $2,631,300. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method.

- Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31.

- Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Question 8 Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 135,000 units per year. The total budgeted overhead at normal capacity is $742,500 comprised of $270,000 of variable costs and $472,500 of fixed costs. Byrd applies overhead on the basis of direct labor hours. During the current year, Byrd produced 85,200 putters, worked 94,000 direct labor hours, and incurred variable overhead costs of $140,580 and fixed overhead costs of $416,600. Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimal places, e.g. 2.75.) Variable Fixed Predetermined Overhead Rate $ $ LINK TO TEXT Compute the applied overhead for Byrd for the year. Overhead Applied $ LINK TO TEXT Compute the total overhead variance. Total Overhead Variance $ Click if you would like to Show Work for this question: Open Show Work

1. In Chapter 2 of your book, it describes the accounting cycle. Phase 4 of the accounting cycle is to prepare the adjusting entries. Describe two types of adjusting entries. If those entries were not made, what would the impact be on the financial statements.

2. How does double entry book-keeping and the system of debits and credits ensure accuracy in financial reporting? Can you relate the concept of double entry bookkeeping or the accounting equation to other aspects of life or learning?

Merrill Corp. has the following information available about a potential capital investment:   

Assume straight line depreciation method is used.  


Required:
1. Calculate the project’s net present value. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round the final answer to nearest whole dollar.)

         

2. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 10 percent.

    

   

3. Calculate the net present value using a 13 percent discount rate. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round the final answer to nearest whole dollar.)

       

4. Without making any calculations, determine whether the internal rate of return (IRR) is more or less than 13 percent.

    

you are evaluating an investment that requires $2,000 upfront and pays $500 at the end of each of the first 2 years and an additional lump sum of $1000 at the end of year 2. What would happen to the IRR if the annual payment at the end of the first year go down from $500 to $300 and the annual payment at the end of the second year stays at $500?

Prepare the journal entries for the following transactions.

1. Paris Cosmetics issues €2,500 shares of €200 par value preference stock at €317 cash per share on 1/1/2017. The shares are 5% and cumulative.
2. Paris Cosmetics issues 120,000 shares of €2 par value share of ordinary stock at €27 cash per share on 1/1/2017.
3. On March 1, Paris Cosmetics repurchases 6,200 shares of the previously issued ordinary shares at €43 cash per share.
4. The company declares and pays cash dividends amounting to €10,000. (the company is new, so no arrearage exists at this point).
5. How much is paid per share to the preference shares? To the ordinary shares?
6. The company repurchases 5,000 shares of the previously issued ordinary shares at €25 per share.
7. The company declares and pays cash dividends amounting to €41,000.
8. How much is paid per share to the preference shares? To the ordinary shares?
9. The company sells all of the treasury stock for €30 cash per share.
10. The Company declares and pays a cash dividend of €55,000.
11. How much is paid per share to the preference shares? To the ordinary shares?

Show all your work.

Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,493 per unit and then sells them to retail customers for an average price of $3,100 each. The company’s selling and administrative costs for a typical month are presented below:

During August, Marwick’s Pianos, Inc., sold and delivered 61 pianos.

Required:

1. Prepare a traditional format income statement for August.
2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin.

A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are

Bell’s creditors have filed a $23,000 claim against the partnership’s assets. The partnership currently holds assets of $320,000 and liabilities of $110,000. If the assets can be sold for $200,000, what is the minimum amount that Bell’s creditors would receive?

What are the production stages and labor requirements for each stage of production for a hairbrush?