Anna and Bess share partnership profits and losses at 60% and 40%, respectively. The partners agree to admit Cal into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Cal are: Anna (60%) $ 300,000 Bess (40%) 300,000 Total $ 600,000

Part 1: Prepare the journal entry(s) for the admission of Cal to the partnership, assuming Cal invested $400,000 for the ownership interest and that this is a fair price for that share of the partnership to be acquired. Cal paid the money directly to Anna and to Bess for 50% of each of their respective capital interests. The partnership records goodwill.

Part 2: Prepare the journal entry(s) for the admission of Cal to the partnership, assuming Cal invested $500,000 for the ownership interest. Cal paid the money to the partnership for a 50% interest in capital and earnings. Assume the valuation is based on the capital of the current partnership, which is fairly valued. The partnership records goodwill.

Part 3: Prepare the journal entry(s) for the admission of Cal to the partnership, assuming Cal invested $700,000 for the ownership interest and that this is a fair price for that share of the partnership to be acquired. Cal paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.

Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $530,900 224,000 February 591,900 250,000 March 418,300 162,000 April 567,500 242,000 May 476,000 195,000 June 610,200 263,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) $ per gross-ton mile Total fixed cost $

Following are the transactions of a new company called Pose-for-Pics.

Prepare general journal entries for the above transactions.

Depending on the length of time, liabilities will either be categorized as current or long-term. Go to Yahoo Finance and select a company. Then, share either a current or long-term liability of the company and the type’s characteristics.

Problem 4-14 Compute and Use Activity Rates to Determine the Costs of Serving Customers [LO4-2, LO4-3, LO4-4]

Gino’s Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified the following major activities:

A group of diners who ask to sit at the same table is counted as a party. Some costs, such as the costs of cleaning linen, are the same whether one person is at a table or the table is full. Other costs, such as washing dishes, depend on the number of diners served.

Data concerning these activities are shown below:

Prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. She knew that the total cost for the month was $313,600 and that 32,000 diners had been served. Therefore, the average cost per diner was $9.80 ($313,600 ÷ 32,000 diners = $9.80 per diner).

Required:

1. Compute the activity rates for each of the three activities.

2. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners?

a. A party of four diners who order three drinks in total.

b. A party of two diners who do not order any drinks.

c. A lone diner who orders two drinks.

3. Convert the total costs you computed in part (2) above to costs per diner. In other words, what is the average cost per diner for serving each of the following parties?

a. A party of four diners who order three drinks in total.

b. A party of two diners who do not order any drinks.

c. A lone diner who orders two drinks.

At the beginning, the accountant for Limited industries estimated that total overhead would be $80,000. Overhead is allocated to jobs on the basis of direct labour cost. Direct labour was budgeted to cost $200,000 this period. During the period, only three jobs were worked on. The following summarizes the direct materials and labour costs for each:

Job 12 was finished and sold, Job 123 was finished but is waiting to be sold, and Job 1234 is still in process. Actual overhead for the period was $82,000.

A.  Calculate the cost of each job completed.

Job 12 - ?

Job 123 - ?

Job 1234 - ?

B.  Calculate the cost of goods sold.

C.  Calculate the amount of overapplied or underapplied overhead that will be prorated to the ending balances in work in process, finished goods, and cost of goods sold.

Sales Forecast and Flexible Budget

Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,540 for the Sleepeze, 12,140 for the Plushette, and 4,570 for the Ultima. Gene Dixon, vice president of sales, has provided the following information:

1. Salaries for his office (including himself at $67,550, a marketing research assistant at $40,150, and an administrative assistant at $23,400) are budgeted for $131,100 next year.
2. Depreciation on the offices and equipment is $17,050 per year.
3. Office supplies and other expenses total $23,800 per year.
4. Advertising has been steady at $21,650 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 15 percent of first-year Ultima sales for a print and television campaign.
5. Commissions on the Sleepeze and Plushette lines are 5 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores.
6. Last year, shipping for the Sleepeze and Plushette lines averaged $55 per unit sold. Gene expects the Ultima line to ship for $70 per unit sold since this model features a larger mattress.

Required:

1. Suppose that Gene is considering three sales scenarios as follows:

Prepare a revenue budget for the Sales Division for the coming year for each scenario.

(That is all that is provided)

Presented below is information related to Sage Hill, Inc.

Compute ending inventory by the conventional retail inventory method. (Round percentages for computational purposes to 1 decimal place, e.g. 0.4158 to 41.6% and final answer to 0 decimal places, e.g. 5,275.)

The ending inventory equals?

You have just been hired into a management position which requires the application of your budgeting skills. You find out that budgeting has not been a priority of the company. You have contacted various areas on the organization and have accumulated the information below to assist you in preparing a comprehensive budget.

Manufacturing Inc. produces a part used in the production of engines.

Actual Sales and Projected Sales in Units:

March (Actual) ......... 38,000

April ..........44,000

May ........... 45,000

June ........... 50,000

July ........... 52,000

Sales are the following type: 55% Cash Sales collected in month of sales -- 45% Credit Sales collected in the following month of sale

The following data pertains to the manufacturing process.

1. Finished goods inventory --- March 31st --- 35,200 Units --- $148.71 budgeted cost to make a unit --- Desired ending finished goods for each month 80% of next month's sales volume.

2. Direct materials used:

Direct Material : Metal

Per-Unit Usage : 10 pounds

Cost Per Pound: $8.00

The beginning balance of each month needs to be able to produce 50% of that month's estimated sales volume

Beginning material in pounds as of April 1st 220,000

Direct Materials paid in month purchased.

3. The direct labor used per unit --- 4 hours--- $13.00 per hour --- direct labor paid in month incurred

4. Overhead each month is estimated based on direct labor hours per variable cost. All costs that use cash are paid in month incurred.

--------------------------------------------------------Fixed Cost ---------------------Variable cost

Supplies -------------------------------------------N/A -------------------------------- $1.00

Power -----------------------------------------------N/A ---------------------------------$0.50

Maintenance -------------------------------------$28,000 ----------------------------$0.40

Supervision ------------------------------------- $16,000 --------------------------------N/A

Depreciation -------------------------------------$20,000 --------------------------------N/A

Taxes ---------------------------------------------- $12,000 --------------------------------N/A

Other ---------------------------------------------- $80,000 -------------------------------$1.10
Total ------------------------------------------------ $156,000 ----------------------------- $3.00

5. Monthly selling and administrative expenses are based on units sold per variable cost. All costs that use cash are paid in month incurred.

------------------------------------------------------- Fixed Cost ----------------------------- Variable Cost

Salaries ------------------------------------------- $30,000 -----------------------------------N/A

Commissions ------------------------------------ N/A ------------------------------------------- $1.00

Depreciation ------------------------------------- $10,000 ----------------------------------- N/A

Shipping ------------------------------------------ N/A ------------------------------------------ $0.60

Other --------------------------------------------- $20,000 -------------------------------------- $0.40

Total ---------------------------------------------- $60,000 -------------------------------------- $2.00

6. Unit selling price = $165 per unit

7. Cash balance as of April 1st = $120,000

Prepare the following second quarter budgets- 1. Sales Budget per month and quarter, 2. Production Budget per month and quarter, 3. Direct materials purchase budget per month and quarter, 4. Manufacturing Cost budget per month and quarter, 5. Selling and Administrative expenses budget per month and quarter.

Income statements and balance sheets data for Virtual Gaming Systems are provided below.

Required:

1. Calculate the following risk ratios for 2018 and 2019: (Round your answers to 1 decimal place.)

2. Calculate the following profitability ratios for 2018 and 2019: (Round your answers to 1 decimal place.)

How will audit effort be allocated among geographical areas for REIT companies (self-storage companies)?

Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3.

1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. (Note: For DECLINING BALANCE ONLY, round the multiplier to five decimal places. Then round the answer for each year to the nearest whole dollar.)

2. What method yields the highest depreciation expense for Year 1?

Straight-line method

Units-of-output method

Double-declining-balance method

All three depreciation methods

3. What method yields the most depreciation over the three-year life of the equipment?

Straight-line method

Units-of-output method

Double-declining-balance method

All three depreciation methods

Suppose Dansko Integrated has the following revenue and expenses for 2018:

Revenues of $8,500,000
Cost of Goods Sold of $2,550,000
Depreciation Expenses of $800,000
Income Taxes of $1,144,000
Interest Expenses of $90,000
Other Expenses of $500,000
Sales, General, & Administrative Expenses of $1,700,000

Create an income statement with amounts in thousands

What is the value of Earnings Before Interest & Taxes?

Gibson Corporation makes custom-order furniture to meet the needs of persons with disabilities. On January 1, 2018, the company had the following account balances: $88,000 for both cash and common stock. In 2018, Gibson worked on three jobs. The relevant direct operating costs follow: Direct Labor Direct Materials Job 1 $ 4,300 $ 5,300 Job 2 2,100 2,200 Job 3 8,400 3,700 Total $ 14,800 $ 11,200 Gibson’s predetermined manufacturing overhead rate was $.40 per direct labor dollar. Actual manufacturing overhead costs amounted to $5,672. Gibson paid cash for all costs. The company completed and delivered Jobs 1 and 2 to customers during the year. Job 3 was incomplete at the end of the year. The company sold Job 1 for $16,100 cash and Job 2 for $8,100 cash. Gibson also paid $3,300 cash for selling and administrative expenses for the year. Gibson uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account. Required Record the preceding events in a horizontal statements model. The first row shows beginning balances. Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold (in the expense category) in the horizontal financial statements model. Determine the gross margin for the year.

Transcript Company is preparing a cash budget for June. The company has $125,000 cash at the beginning of the month and anticipates having total sales of $1,222,000, consisting of 25% cash sales and 75% credit card sales. The bank charges 3 percent for credit card deposits. The firm sets its selling price at 150 percent of the cost of purchases and pays the cost of each month's sales at the end of the month.

Other cash disbursements are $66,000 per month, 4 percent of the total sales and the cash purchase of a new tractor for $125,000. In addition, a $545,000 note will be due this month for equipment purchased last year. Transcript Company has an agreement with its bank to maintain a cash balance of $125,000.

Required: What is the cash balance and what amount, if any, must the company borrow during June?