| Prepare a Statement of cash flow using the DIRECT method. | ||||||
| Not all information listed may be used in solving this problem | ||||||
| Collect ted | $500,000 | |||||
| paid suppliers | $10,000 | |||||
| Increased in Market Securities | $11,000 | |||||
| paid mortgage principal | $13,000 | |||||
| Paid employees | $65,000 | |||||
| Sold fixed assets | $32,000 | |||||
| Transferred to parent | $18,000 | |||||
| Insurance payments | $17,000 | |||||
| Purchased new equipment | $55,000 | |||||
| Additional long term debt | $2,500 | |||||
| Interest payments | $7,000 | |||||
| Unrestricted contributions | $60,000 | |||||
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 17,000 | 20,000 | 19,000 | 18,000 |
In addition, 21,250 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $7,200.
Each unit requires 5 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 8,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $13.50 per hour.
Required:
1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.
3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.
4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced.
In: Accounting
For small-business owners, it’s not worth the time or effort to secure intellectual property rights (Canadian and International).
Explain why you agree or disagree with this statement using supporting facts, information and examples from several sources to support your position.
In: Accounting
On January 1, 2008, Dryft granted 1,000 employee share options that vest after a four-year service period, with an exercise price of $30 per share. Using the Black-Scholes pricing model, it was determined that the grant-date-fair-value-based measure of each option was $15. On the grant date, Dryft’s stock was trading at $30 per share.
On January 1, 2010, Dryft decided to change the terms of the incentives for the third and fourth years of service of the 2008 annual grant by modifying the exercise price to $20 per share. Using the Black-Scholes pricing model, management determined that the fair-value-based measure of the awards as of January 1, 2010 was $9 before the terms of the award were modified and $12 immediately after modification. The modification did not affect any of the other terms or conditions of the awards. (No forfeitures are assumed)
a- How much compensation cost should Dryft recognize in each year of the award’s service period?
b- How would the accounting for the awards change if the modification to the terms of the award was made on January 1, 2014, after the awards have become fully vested?
Please show detailed answers, use journal entries and explain.
In: Accounting
In: Accounting
In: Accounting
1. On May 28, Jackson Jones borrowed $40,000 cash and gave the lender a 5%, 90 day note. Which of the following is the correct journal entry to record the payment of the note on the maturity date?
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2. A company had the following plant asset: New equipment cost $64,000 Salvage value 4,000 The machine is also expensed to produce 150,000 units during its useful life. Compute the depreciation expense for the year using the units of production method of depreciation assuming that 25,000 units were produced in year one. |
In: Accounting
Factory overhead cost variance report
Instructions
Amount Descriptions
Factory Overhead Cost Variance Report
X
Instructions
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,500 hours.
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TIGER EQUIPMENT INC. |
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Factory Overhead Cost Budget—Welding Department |
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For the Month Ended May 31 |
|
1 |
Variable costs: |
||
|
2 |
Indirect factory wages |
$29,750.00 |
|
|
3 |
Power and light |
23,800.00 |
|
|
4 |
Indirect materials |
17,000.00 |
|
|
5 |
Total variable cost |
$70,550.00 |
|
|
6 |
Fixed costs: |
||
|
7 |
Supervisory salaries |
$20,400.00 |
|
|
8 |
Depreciation of plant and equipment |
35,300.00 |
|
|
9 |
Insurance and property taxes |
20,800.00 |
|
|
10 |
Total fixed cost |
76,500.00 |
|
|
11 |
Total factory overhead cost |
$147,050.00 |
During May, the department operated at 8,820 standard hours, and the factory overhead costs incurred were indirect factory wages, $31,462; power and light, $24,428; indirect materials, $18,260; supervisory salaries, $20,400; depreciation of plant and equipment, $35,300; and insurance and property taxes, $20,800.
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,820 hours. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all variances as positive amounts.
In: Accounting
|
Year |
Return |
|
1980 |
32.42 |
|
1981 |
-4.91 |
|
1982 |
21.55 |
|
1983 |
22.56 |
|
1984 |
6.27 |
|
1985 |
31.73 |
|
1986 |
18.67 |
|
1987 |
5.25 |
|
1988 |
16.61 |
|
1989 |
31.69 |
|
1990 |
-3.1 |
|
1991 |
30.47 |
|
1992 |
7.62 |
|
1993 |
10.08 |
|
1994 |
1.32 |
|
1995 |
37.58 |
|
1996 |
22.96 |
|
1997 |
33.36 |
|
1998 |
28.58 |
|
1999 |
21.04 |
|
2000 |
-9.1 |
|
2001 |
-11.89 |
|
2002 |
-22.1 |
|
2003 |
28.68 |
|
2004 |
10.88 |
|
2005 |
4.91 |
|
2006 |
15.79 |
|
2007 |
5.49 |
|
2008 |
-37 |
|
2009 |
26.46 |
|
2010 |
15.06 |
|
2011 |
2.11 |
|
2012 |
16 |
|
2013 |
32.39 |
|
2014 |
13.69 |
|
2015 |
1.38 |
|
2016 |
11.96 |
|
2017 |
21.83 |
|
2018 |
-4.38 |
|
2019 |
31.49 |
How much money would you have by the end of 2019? Problem 4. Hard problem: Suppose that you invested $x in 1980. Plot the amount of money you would have in 2019 for all values of $x between $0 and $100,000. Solve using R Studio
In: Accounting
Record the following transactions in the appropriate special
journals or general journal for the month of June. Record and post
all transactions in accordance with accounting procedures. Once you
have recorded all of the transactions, total the columns in each
journal and cross check that they balance before submitting for
assessment.
|
June 1 |
Cash sale #3357 for hire of diving equipment, total value $318.30, including GST. The customer paid by EFTPOS which went directly into our bank account. |
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June 4 |
Received the telephone bill (invoice #289467) from Telstra for $376.42, including GST. This was paid immediately with cheque #1194. |
|
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June 5 |
Paid Louis Reevsby $960.00 with cheque #1195, the amount owing to him for invoice #1753. |
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June 6 |
Receive 3 scuba sets (hire equipment) costing $2,690.00 including GST, from Coral Divers Imports together with their invoice #23116 for $2,801.00 which included a freight charge of $111.00. Terms on this invoice are 5/10, N30 and prices include GST. |
|
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June 7 |
Invoiced (invoice #3358) Beach and Reef Holidays for the hire of equipment ($1,161.00) and lessons ($1,980.00). Total invoice value $3,141.00 including GST and terms are N30. |
|
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June 10 |
Received and banked a cheque for $1,320.00 from Beach and Reef Holidays. |
|
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June 12 |
Purchased postage stamps ($60.00 including GST) from Australia Post. These were paid for with cash from petty cash. |
|
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June 12 |
Sent cheque #1196 for $2,400.00 to One Stop Diving Shop in payment of their invoice #13467. |
|
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June 12 |
The owner, Sam Mackee, cashed cheque #1197 for $3,027.00 for his own use. |
|
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June 14 |
Paid Coral Divers Imports $2,660.95 with cheque #1198. This was in payment of their invoice #23116 less prompt payment discount. |
|
|
June 15 |
Purchased coffee and biscuits (staff amenities) for $26.85 from Campbell's Cash & Carry. This amount includes only $0.72 GST as some of the items are GST free. These were paid for with cash from petty cash. |
|
|
June 17 |
Sold ex hire equipment to Mark Allen for $661.00 including GST. His cheque for this amount was banked today. This equipment originally cost $798.00, but was written down to $325.00 at the date of sale. Calculate and journalise the profit on the sale. |
|
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June 17 |
Received a bill (invoice #2234) from Louis Reevsby for $1,360.00 including GST for diving instruction provided. His terms are N7. |
|
|
June 18 |
Cash sale (invoice #3359) for hire of equipment $281.60 and
lessons $1,320.00. The customer paid the $1,601.60 including GST by
EFTPOS. |
|
|
June 19 |
Invoiced (invoice #3360) Cairns Coral Divers for hire of equipment $2,217.60 and lessons $1,188.00. Total value of invoice $3,405.60 including GST with terms of 10/10, N30. |
|
|
June 20 |
Purchase fuel for the motor vehicle costing $88.00 including GST. This was paid for with cheque #1199. |
|
|
June 24 |
Received and banked a cheque for $2,160.00 from Coral Holiday Resort. |
|
|
June 24 |
Cashed cheque #1200 for $86.85 to reimburse petty cash. |
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|
June 24 |
Paid Tank World with cheque #1201 for repairs to scuba tanks costing $352.00 including GST. |
|
|
June 25 |
Sent cheque #1202 for $432.00 to Australian Super. This was in payment of the amount of superannuation owing for May. |
|
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June 26 |
Credit sale to Adventure Tours (invoice #3361) for hire of equipment $792.00 and lessons $1,320.00. Prices include GST and terms are N30. |
|
|
June 26 |
Received new dive equipment for hire equipment ($1,650.00) from Diving DownUnder together with their invoice #9457 for $1,705.00 including GST, which included a freight charge of $55.00. Terms N30. |
|
|
June 27 |
Received adjustment note #9462 from Diving DownUnder for $165.00 including GST. This was for the return of one of the dive equipment purchased on invoice #9457. |
|
|
June 28 |
Paid Coastal Reef Cleaners for cleaning services provided in June $110.00 including GST, by cheque #1203. |
|
|
June 28 |
Cashed cheque #1204 for $4,060.00 for wages for the month. Gross wages are $4,600.00 and PAYG Withholding deducted was $540.00. |
|
|
June 28 |
Received and banked a cheque for $3,065.04 from Cairns Coral Divers. |
|
SALES JOURNAL |
Page: 10 |
|||||||||
|
Date |
Invoice No. |
Account |
Terms |
Post Ref |
Hire Service Income |
Lesson Income |
Freight Collected |
GST Collected |
Accounts Receivable |
|
|
PURCHASES JOURNAL |
Page: 11 |
||||||||
|
Date |
Invoice No. |
Account |
Terms |
Post Ref |
Other |
Freight Expense |
GST Paid (Outlays) |
Accounts Payable |
|
|
CASH PAYMENTS JOURNAL |
Page: 12 |
||||||||||
|
Debits |
Credits |
||||||||||
|
Date |
Account |
Cheque No. |
Post Ref |
Accounts Payable |
GST Paid (Outlays) |
Other |
Bank Account |
Petty Cash |
Discount Received |
GST Paid (Outlays) |
|
|
CASH RECEIPTS JOURNAL |
Page: 14 |
||||||||||
|
Debits |
Credits |
||||||||||
|
Date |
Account |
Post Ref |
Bank Account |
Discount Given |
GST Collected |
Hire Service Income |
Lesson Income |
Accounts Receivable |
GST Collected |
Other |
|
In: Accounting
Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow:
| Selling price per unit on the intermediate market | $ | 46 |
| Variable costs per unit | $ | 16 |
| Fixed costs per unit (based on capacity) | $ | 9 |
| Capacity in units | 65,000 | |
Sako Company has a Hi-Fi Division that could use this speaker in
one of its products. The Hi-Fi Division will need 10,000 speakers
per year. It has received a quote of $30 per speaker from another
manufacturer. Sako Company evaluates division managers on the basis
of divisional profits.
Required:
1. Assume the Audio Division is now selling only 55,000 speakers per year to outside customers.
a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division?
b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division?
c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 10,000 speakers from the Audio Division to the Hi-Fi Division?
2. Assume the Audio Division is selling all of the speakers it can produce to outside customers.
a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division?
b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division?
c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 10,000 speakers from the Audio Division to the Hi-Fi Division?
In: Accounting
Problem 9-2A (Part Level Submission)
At December 31, 2017, Bridgeport Corporation reported the
following plant assets.
| Land |
$ 5,673,000 |
|||
| Buildings |
$26,540,000 |
|||
| Less: Accumulated depreciation—buildings |
22,550,175 |
3,989,825 |
||
| Equipment |
75,640,000 |
|||
| Less: Accumulated depreciation—equipment |
9,455,000 |
66,185,000 |
||
| Total plant assets |
$75,847,825 |
During 2018, the following selected cash transactions
occurred.
| Apr. | 1 | Purchased land for $4,160,200. | |
| May | 1 | Sold equipment that cost $1,134,600 when purchased on January 1, 2011. The equipment was sold for $321,470. | |
| June | 1 | Sold land for $3,025,600. The land cost $1,891,000. | |
| July | 1 | Purchased equipment for $2,080,100. | |
| Dec. | 31 | Retired equipment that cost $1,323,700 when purchased on December 31, 2008. No salvage value was received. |
Journalize the transactions. Bridgeport uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement.
In: Accounting
[The following information applies to the questions
displayed below.]
Donnie Hilfiger has two classes of stock authorized: $1 par
preferred and $0.01 par value common. As of the beginning of 2018,
300 shares of preferred stock and 4,000 shares of common stock have
been issued. The following transactions affect stockholders’ equity
during 2018:
March 1 Issue 1,100 shares of common stock for $42 per
share.
May 15 purchase 400 shares of treasury stock for $35 per
share.
July 10 Reissue 200 shares of treasury stock purchased on May 15
for $40 per share.
October 15 Issue 200 shares of preferred stock for $45 per
share.
December 1 Declare a cash dividend on both common and preferred
stock of $0.50 per share to all stockholders of record on December
15. (Hint: Dividends are not paid on treasury
stock.)
December 31 Pay the cash dividends declared on December 1.
Donnie Hilfiger has the following beginning balances in its
stockholders’ equity accounts on January 1, 2018: Preferred Stock,
$300; Common Stock, $40; Additional Paid-in Capital, $76,000; and
Retained Earnings, $30,500. Net income for the year ended December
31, 2018, is $10,800.
Taking into consideration the beginning balances on January 1, 2018
and all the transactions during 2018, respond to the following for
Donnie Hilfiger:
1. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2018.
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2. Prepare the statement of stockholders’ equity for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
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In: Accounting
Renford Corporation is a manufacturing firm. Presented below is information concerning one of its products:
|
1/1 |
Beginning inventory |
4,480 |
$15 |
|
2/12 |
Purchase |
4,960 |
$20 |
|
3/2 |
Sale |
3,880 |
$33 |
|
4/18 |
Purchase |
6,400 |
$23 |
|
5/31 |
Sale |
5,560 |
$35 |
Compute the cost of goods sold under the following situations:
Your answers must be submitted in an Excel file and must show all calculations used to arrive at the final answers.
In: Accounting
In: Accounting