The Polaris Company uses a job-order costing system. The following transactions occurred in October:

1. Raw materials purchased on account, $210,000.
2. Raw materials used in production, $192,000 ($153,600 direct materials and $38,400 indirect materials).
3. Accrued direct labor cost of $48,000 and indirect labor cost of $22,000.
4. Depreciation recorded on factory equipment, $106,000.
5. Other manufacturing overhead costs accrued during October, $129,000.
6. The company applies manufacturing overhead cost to production using a predetermined rate of $10 per machine-hour. A total of 76,200 machine-hours were used in October.
7. Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
8. Jobs that had cost $451,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 36% above cost.

Required:

1. Prepare journal entries to record the transactions given above.

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $33,000.

Suppose Vince dies this year with a gross estate of $25 million and no adjusted prior gifts. Assume the estate qualifies for the martial deduction.

Calculate the amount of estate tax due (if any) under the following alternative conditions for 2018. (Refer to Exhibit 25-1 and Exhibit 25-2.)

Exhibit 25-2 The Exemption Equivalent

Year of Transfer                Gift Tax                 Estate Tax           

2018                                       11,180,000           11,180,000

Required:

1. Vince leaves his entire estate to his spouse, Millie.
2. Vince leaves $10 million to Millie and the remainder to charity.
3. Vince leaves $10 million to Millie and the remainder to his son, Paul.
4. Vince leaves $10 million to Millie and the remainder to a trust whose trustee is required to pay income to Millie for her life and the remainder to Paul(

For all requirements, enter your answer in millions rounded to 3 decimal places. Leave no answer blank. Enter zero if applicable.)

A. Amount of estate tax  

B. Amount of estate tax  

C. Amount of estate tax  

D. Amount of estate tax  

Problem 15-15 A real estate investor has the opportunity to purchase land currently zoned as residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are shown in the following payoff table: State of Nature Rezoning Approved Rezoning Not Approved Decision Alternative s1 s2 Purchase, d1 550 -250 Do not purchase, d2 0 0 (a) If the probability that the rezoning will be approved is 0.5, what decision is recommended? Recommended Decision: What is the expected profit? $ (b) The investor can purchase an option to buy the land. Under the option, the investor maintains the rights to purchase the land anytime during the next three months while learning more about possible resistance to the rezoning proposal from area residents. Probabilities are as follows: Let H = High resistance to rezoning L = Low resistance to rezoning P(H) = 0.55 P(s1 | H) = 0.16 P(s2 | H) = 0.84 P(L) = 0.45 P(s1 | L) = 0.85 P(s2 | L) = 0.15 What is the optimal decision strategy if the investor uses the option period to learn more about the resistance from area residents before making the purchase decision? High resistance: Low resistance: (c) If the option will cost the investor an additional $10,000, should the investor purchase the option? Why or why not? The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank What is the maximum that the investor should be willing to pay for the option? EVSI = $

please dont copy from internet. thank you

Assignment # 12

Q 1:

Prepare journal entries to record the following merchandising transactions of Blink Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—Boden.)

July 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.

2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500.

3 Paid $125 cash for freight charges on the purchase of July 1.

8 Sold merchandise that had cost $1,300 for $1,700 cash.

9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.

11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9.

12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.

16 Paid the balance due to Boden Company within the discount period.

19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.

21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19.

24 Paid Leight Co. the balance due after deducting the discount.

30 Received the balance due from Art Co. for the invoice dated July 19, net of discount.

31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

Q2:

Prepare journal entries to record the following merchandising transactions of Sheng Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable—Arotek.) Also make Single and Multistep Income Statement.

Aug. 1 Purchased merchandise from Arotek Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1.

5 Sold merchandise to Laird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000.

8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Sheng’s request, Waters paid the $140 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.)

9 Paid $125 cash for shipping charges related to the August 5 sale to Laird Corp.

10 Laird returned merchandise from the August 5 sale that had cost Sheng $400 and been sold for $600. The merchandise was restored to inventory.

12 After negotiations with Waters Corporation concerning problems with the merchandise purchased on August 8, Sheng received a credit memorandum from Waters granting a price reduction of $700.

14 At Arotek’s request, Sheng paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Arotek.

15 Received balance due from Laird Corp. for the August 5 sale less the return on August 10.

18 Paid the amount due Waters Corporation for the August 8 purchase less the price reduction granted.

19 Sold merchandise to Tux Co. for $4,800 under credit terms of 1/10, n/30, FOB shipping point, invoice dated August 19. The merchandise had cost $2,400.

22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sheng sent Tux a $500 credit memorandum to resolve the issue.

29 Received Tux’s cash payment for the amount due from the August 19 sale.

30 Paid Arotek Company the amount due from the August 1 purchase.

Q3:

Prepare journal entries to record the following merchandising transactions of Mason Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 3 in Accounts Payable—OLB.) Also make Single and Multistep Income Statement.

July 3 Purchased merchandise from OLB Corp. for $15,000 under credit terms of 1/10, n/30, FOB destination, invoice dated July 3.

7 Sold merchandise to Brill Co. for $11,500 under credit terms of 2/10, n/60, FOB destination, invoice dated July 7. The merchandise had cost $7,750.

10 Purchased merchandise from Rupert Corporation for $14,200 under credit terms of 1/10, n/45, FOB shipping point, invoice dated July 10. The invoice showed that at Mason’s request, Rupert paid the $500 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.)

11 Paid $300 cash for shipping charges related to the July 7 sale to Brill Co.

12 Brill returned merchandise from the July 7 sale that had cost Mason $1,450 and been sold for $1,850. The merchandise was restored to inventory.

14 After negotiations with Rupert Corporation concerning problems with the merchandise purchased on July 10, Mason received a credit memorandum from Rupert granting a price reduction of $2,000.

15 At OLB’s request, Mason paid $150 cash for freight charges on the July 3 purchase, reducing the amount owed to OLB.

17 Received balance due from Brill Co. for the July 7 sale less the return on July 12.

20 Paid the amount due Rupert Corporation for the July 10 purchase less the price reduction granted.

21 Sold merchandise to Brown for $11,000 under credit terms of 1/10, n/30, FOB shipping point,

invoice dated July 21. The merchandise had cost $7,000.

24 Brown requested a price reduction on the July 21 sale because the merchandise did not meet specifications. Mason sent Brown a credit memorandum for $1,300 to resolve the issue.

30 Received Brown’s cash payment for the amount due from the July 21 sale.

31 Paid OLB Corp. the amount due from the July 3 purchase.

Q 4:

Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).

Mar. 1 Purchased $43,600 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30.

2. Sold merchandise on credit to Min Cho, Invoice No. 854, for $16,800 (cost is $8,400).
3. Purchased $1,230 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM.
4. Sold merchandise on credit to Linda Witt, Invoice No. 855, for $10,200 (cost is $5,800).
5. Borrowed $82,000 cash from Federal Bank by signing a long-term note payable.
6. Purchased $21,850 of office equipment on credit from Spell Supply, invoice dated March 9, terms ny10 EOM.
7. Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $5,600 (cost is $2,900).
8. Received payment from Min Cho for the March 2 sale less the discount.
9. Sent Van Industries Check No. 416 in payment of the March 1 invoice less the discount.
10. Received payment from Linda Witt for the March 3 sale less the discount.
11. Purchased $32,625 of merchandise from the CD Company, invoice dated March 13, terms 2/10, n/30.
12. Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $18,300. Cashed the check and paid the employees.
13. Cash sales for the first half of the month are $34,680 (cost is $20,210). (Cash sales are recorded daily but are recorded only twice here to reduce repetitive entries.)
14. Purchased $1,770 of store supplies on credit from Gabel Company, invoice dated March 16, terms ny10 EOM.
15. Received a $2,425 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.
16. Received a $630 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit.
17. Received payment from Jovita Albany for the sale of March 10 less the discount.
18. Issued Check No. 418 to CD Company in payment of the invoice of March 13 less the March 17 return and the discount.
19. Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $14,910 (cost is $7,220).
20. Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,315 (cost is $3,280).
21. Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $18,300. Cashed the check and paid the employees.
22. Cash sales for the last half of the month are $30,180 (cost is $16,820).
23. Verify that amounts impacting customer and creditor accounts were posted and that any amounts that should have been posted as individual amounts to the general ledger accounts were posted. Foot and cross foot the journals and make the month-end postings.

Required:

1. Enter these transactions in a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, or a general journal.

On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $13 and its retail selling price is $80 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred.

2016

2017

2. How much warranty expense is reported for November 2016 and for December 2016?
  

Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019, the first month of operations, is shown below.

End-of-the-month adjustments must account for the following items:

1. Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,250.
2. The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period.
3. Rent of $1,750 expired during the month.
4. Depreciation is computed using the straight-line method. The equipment has an estimated useful life of 10 years with no salvage value.

Required:

1. Complete the worksheet for the month.
2. Prepare an income statement, statement of owner’s equity, and balance sheet. No additional investments were made by the owner during the month.
3. Journalize and post the adjusting entries.

Analyze
If the adjusting entries had not been made for the month, would net income be overstated or understated?

Complete this question by entering your answers in the tabs below.

• Req 1
• Req 2 Inc Stmt
• Req 2 Stmt of OE
• Req 2 Bal Sheet
• Req 3 Gen Journal
• Req 3 Ledgers
• Analyze

Complete the worksheet for the month.

On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $13 and its retail selling price is $80 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred. 2016 Nov. 11 Sold 80 razors for $6,400 cash. 30 Recognized warranty expense related to November sales with an adjusting entry. Dec. 9 Replaced 16 razors that were returned under the warranty. 16 Sold 240 razors for $19,200 cash. 29 Replaced 32 razors that were returned under the warranty. 31 Recognized warranty expense related to December sales with an adjusting entry. 2017 Jan. 5 Sold 160 razors for $12,800 cash. 17 Replaced 37 razors that were returned under the warranty. 31 Recognized warranty expense related to January sales with an adjusting entry. 1.1 Prepare journal entries to record above transactions and adjustments for 2016. 1.2 Prepare journal entries to record above transactions and adjustments for 2017.

On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $13 and its retail selling price is $80 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred.

2016

2017

5. What is the balance of the Estimated Warranty Liability account as of January 31, 2017?
  

Transfer the journal entries to T-accounts for the transactions below, compute closing amounts for the T-accounts, and construct a final balance sheet to answer the question.

Journal amounts in thousands

What is the final amount in Total Assets?

Please specify your answer in the same units as the balance sheet.

The nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold cashews by a margin of 2 to 1 in cans. sales of almonds were half the sales of cashews in cans. fixed costs for the nut house are 20,000 . almonds: unit sales Price:8.00 unit variable:4.00 cashews:unit sales price:10.00 unit variable:5.00 Pistachios: unit sales price:6.00 unit variable cost: 4.00 what is the breakeven sales volume and dollars for each nut rounded?

The following data from the just completed year are taken from the accounting records of Mason Company:

Required:

1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

3. Prepare an income statement.

he debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

1. Direct materials and conversion equivalent units of production for August
2. Direct materials and conversion costs per equivalent unit for August
3. Cost of goods finished during August
4. Cost of work in process at August 31

If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.

1) What is performance obligation and how is it related to revenue recognition?

2) What does cash conversion cycle measure?