Weldon Corporation’s fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2018:

Required:

1 & 2. Prepare journal entries for each of the above transactions and additional year-end adjusting entries indicated. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Analyzing Manufacturing Cost Accounts

Clapton Company manufactures custom guitars in a wide variety of styles. The following incomplete ledger accounts refer to transactions that are summarized for May:

In addition, the following information is available:

1. Materials and direct labor were applied to the following jobs in May:
   

   Job No.		Style	Quantity		Direct Materials				Direct Labor
   101		AF1	220			$20,540				$17,000
   102		AF3	380			30,120				24,000
   103		AF2	230			16,410				9,000
   104		VY1	260			29,380				26,000
   105		VY2	190			21,360				17,000
   106		AF4	140			8,240				4,000
   		Total	1,420			$126,050				$97,000

2. Factory overhead is applied to each job at a rate of 170% of direct labor cost.
3. The May 1 Work in Process balance consisted of two jobs, as follows:
   

   Job No.	Style	Work in Process, May 1
   101	AF1	$6,600
   102	AF3	14,900
   Total		$21,500

4. Customer jobs completed and units sold in May were as follows:
   

   Job No.	Style	Completed in May	Units Sold in May
   101	AF1	X	176
   102	AF3	X	304
   103	AF2		0
   104	VY1	X	218
   105	VY2	X	158
   106	AF4		0

Required:

1. Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest dollar. If an answer is zero, enter in "0". Enter all amounts as positive numbers.

a. Materials Requisitions $ ?

b. Work in Process Beginning Balance $ ?

c. Direct Materials $ ?

d. Direct Labor $ ?

e. Factory overhead applied $?

f. Completed jobs $?

g. Cost of goods sold $ ?

h. Indirect labor $ ?

2. Determine the May 31 balances for each of the inventory accounts and factory overhead. Use the minus sign to indicate any credit balances.

Presented here are summarized data from the balance sheets and income statements of Wiper, Inc.:

Required:

a. Calculate return on investment, based on net income and average total assets, for 2017 and 2016. (Do not round intermediate calculations. Round your answers to 1 decimal place.)

b. Calculate return on equity for 2017 and 2016. (Round your answers to 1 decimal place.)

c. Calculate working capital and the current ratio for each of the past three years. (Enter your answers in millions (i.e., 5,000,000 should be entered as 5). Round "Current ratio" to 1 decimal place.)

d. Calculate earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.)

i. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2017 and 2016. (Round "Debt ratio" to 1 decimal place and "Debt/equity ratio" to the nearest whole percent.)

On January 1, 2018, Rick’s Pawn Shop leased a truck from Chumley Motors for a five-year period with an option to extend the lease for three years. Rick’s had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option. Annual lease payments are $15,500 due on December 31 of each year, calculated by the lessor using a 5% interest rate. The agreement is considered an operating lease. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. Prepare Rick’s journal entry to record for the right-of-use asset and lease liability at January 1, 2018.
2. Prepare the journal entries to record interest and amortization at December 31, 2018.

• Required 1
• Required 2

Prepare Rick’s journal entry to record for the right-of-use asset and lease liability at January 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.)

Journal entry worksheet

• Record the beginning of the lease for Rick's.

Note: Enter debits before credits.

• Required 2

Prepare the journal entries to record interest and amortization at December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.)

Journal entry worksheet

• Record the lease and interest payment for Rick's.

Note: Enter debits before credits.

• Record the amortization of right-to-use asset for Rick's.

Note: Enter debits before credits.

The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company.

Required:

For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling, or an administrative cost.

1. The cost of a hard drive installed in a computer.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

2. The cost of advertising in the Puget Sound Computer User newspaper.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

3. The wages of employees who assemble computers from components.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

4. Sales commissions paid to the company’s salespeople.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

5. The salary of the assembly shop’s supervisor.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

6. The salary of the company’s accountant.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

7. Depreciation on equipment used to test assembled computers before release to customers.

• Direct labor cost

• Direct materials cost

• Manufacturing overhead cost

• Selling cost

• Administrative cost

Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company’s fiscal year-end. The 2017 balance sheet disclosed the following:

During 2018, credit sales were $1,810,000, cash collections from customers $1,890,000, and $51,000 in accounts receivable were written off. In addition, $4,200 was collected from a customer whose account was written off in 2017. An aging of accounts receivable at December 31, 2018, reveals the following:

Required:

1. Prepare summary journal entries to account for the 2018 write-offs and the collection of the receivable previously written off.
2. Prepare the year-end adjusting entry for bad debts according to each of the following situations:

1. Bad debt expense is estimated to be 4% of credit sales for the year.
2. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.
3. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

3. For situations (a)–(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2018 balance sheet?

(on the following question please show the formula for the steps and from were you get the numbers)

Cost-volume-profit analysis
Di & Co. has the following budgeted information for a contract: -
Fixed costs $ 270,000
Variable cost per unit $         20
Selling price per unit   $         40

Budgeted output / sales units          15,000
Required:
(a) Compute the number of units that must be sold to breakeven.                             

(b) How many units must be sold to earn $80,000 target profit?                                    

(c) What selling price would have to be charged to give a profit of $80,000?
                                                                                                                           

(d) How many additional units must be sold to cover an extra fixed cost of $12,000? (assuming selling price and variable cost per unit are constant)
                                                                               
(e) What is the profit-volume ratio?                                                                          
(f) Referring to part (e) above, if total sales revenue is $550,000, what is the total contribution and hence what is the net profit?                                                      

(g) Referring to part (a), what is the margin of safety?                                             
(h) What does the term relevant range mean?            

( show the formula in every step and from were the number come from)

standard Costing & Variance Analysis

Delic plc. is a manufacturer of cakes that makes a wide range of cakes. It operates a standard marginal cost accounting system. Given below, is information relating to one of its products, i.e. birthday cakes, which are made in one of the company departments:

                                                                                                          $

Direct materials purchased and used, 113,500kg                       442,650

        Direct labour, 17,800 hours                                                   129,940

        Variable production overhead incurred                                    58,800

        Fixed production overhead incurred                                     104,000

                         total                                                                               735,390

Required:

1. Prepare a statement showing, by cost elements (i.e. direct materials; direct labour; variable overhead; and fixed overhead), the:
   1. original budget                                                                                                
   2. flexed budget                                                                                                  
   3. actual cost                                                                                                       
   4. total variances                                                                                             
2. To be more informative for managerial purposes, prepare the following variances:
   1. Material price variance                                                                                   
   2. Material usage variance                                                                                 

                (iii) Wage rate variance                                                                                        

1. Labour efficiency variance                                                                            
2. Variable overhead expenditure variance                                                        

                   vi) Variable overhead efficiency variance    

Part A   

Gedolf Ltd and Spike Ltd each hold 50% of the shares in Butch Ltd. All companies are involved in the artificial intelligence industry. Gedolf Ltd agrees that Spike Ltd should provide the management of Butch Ltd because of the expertise provided by its managing director, Rob Gedolf. Spike Ltd receives a management fee for providing its expertise.

Required:                                                                                                                  

Determine whether a parent–subsidiary relationship exists and which entity, if any, is a parent required to prepare consolidated financial statements under AASB 10.

Coca-Cola Amatil (CCA) is one of the largest manufacturers of soft drinks in the Asia-Pacific
region and operates in six countries – Australia, New Zealand, Indonesia, Papua New Guinea,
Fiji and Samoa. CCA is also listed on the Australian Stock Exchange since 1970. Your task is
to download CCA’s 2017 Annual Report and answer the following questions.
1. What is the average annual dividend growth rate for CCA between 2013 and 2017?
Hint-use information provided on page 135.
2. Do you think CCA will maintain this recent growth rate forever? Justify your answer
and if you disagree then also suggest a new dividend growth rate range. Hint-start by
reading pages 8-9.
3. Suppose the annual dividend growth rate is 5 percent, which will continue into the
foreseeable future. What is the intrinsic value of CCA’s share at 31st December 2018,
if you require an annual return of 10 percent?
4. What was CCA’s share price on 31st December 2018?
5. Should you invest in CCA’s shares based on 3 and 4 above? Why or why not?

how do state estate tax payments or state death tax payments affect the estate tax return

On November 1, 2017, Sandhill Company adopted a stock-option plan that granted options to key executives to purchase 28,500 shares of the company’s $10 par value common stock. The options were granted on January 2, 2018, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $30, and the fair value option-pricing model determines the total compensation expense to be $427,500.

All of the options were exercised during the year 2020: 19,000 on January 3 when the market price was $67, and 9,500 on May 1 when the market price was $77 a share.

Prepare journal entries relating to the stock option plan for the years 2018, 2019, and 2020. Assume that the employee performs services equally in 2018 and 2019.

At the end of last month, Ajax Inc. had the following balances in its accounts: Cash $ 5,000 Inventory $10,000 Equipment $ 3,000 Land $10,000 Owe Jones $10,000 Common Stock $10,000 Retained Earnings $ 8,000 Set up the initial Balance Sheet for this month, make the appropriate entries for this month using the Accounting Equation, and show the ending Balance Sheet for this month. The following should be included for this month: a. Buy inventory from Jones on credit for $10,000 b. Sell goods for $4,000 c. Sell common stock for $1,000 d. Pay wages of $2,000 e. Pay tax of $1,000 f. Sell goods to Smith on credit for $15,000 g. Pay rent of $100 h. Pay Jones $2,000 i. Depreciate equipment $200 j. Inventory at the end of the month is worth $7,000

Case: Monica’s Designer Handbags: Creative Marketing Decision-Making

QUESTIONS FOR STUDENTS TO ANSWER

1. What is Monica’s unit contribution margin (in dollars per handbag) on the Grand*Mart initial deal, using their suggested wholesale price of $20, after incremental direct expenses? (Diagram as Exhibit 2 - Grand*Mart Discount Channel.)
2. What is the incremental profit impact (in dollars per month) of the suggested initial Grand*Mart 2,000 bag deal to Monica, after the increased overhead expense of $25,000? What is the incremental profit impact of the prospective 10,000 bag order, after increased overhead expense of $75,000?
3. What are Monica’s other key financial and non-financial considerations (such as, cannibalization of the independent retailer channel) for the suggested Grand*Mart deal?
4. Should Monica propose the Grand*Mart deal as suggested? Or should she take a pass and stay exclusively with the independent retailer channel? Or should she renegotiate the initial 2,000 bag deal for the first quarter? Should she offer Grand*Mart an exclusive 10,000 deal for the second quarter?
5. What is the maximum wholesale price that Grand*Mart could be willing to pay Monica, given their probable retail price and typical margin requirements? If Monica decides to renegotiate the initial Grand*Mart deal as of the first quarter with volumes of 2,000 bags per month and incremental overhead of $25,000 per month, what “best and final” price should she propose that would be acceptable to both parties? What is the revised incremental profit impact?
6. If Monica decides to offer Grand*Mart an exclusive deal as of the second quarter at minimum volumes of 10,000 bags per month with overhead expenses of $75,000 per month, what “best and final” price should she propose that would be acceptable to both parties? What is the profit impact of this exclusive deal?