Journalize the five transactions for Mirmax Rentals described below:

August 1 Mirmax purchases two new saws on credit at $375 each. The saws are added to Mirmax’s rental inventory. Payment is due in 30 days.

August 8 Mirmax accepts advance deposits for tool rental of $75 that will be applied to the cash rental when the tools are returned.

August 15 Mirmax receives a bill from Macon Utility Company for $150. Payment is due in 30 days.

August 20 Mirmax charges Customers $750 for tool rentals. Payment is due in 30 days.

August 31 Mirmax receives $500 in payments from the customers that were bill for rentals on August 20.

Given the following balances for Garry’s Tree Service, prepare a Trial Balance

Financial Statements

Prepare an Income Statement, Statement of Owner’s Equity and Balance Sheet

Problem 3                              
Financial Statements                              
           Income Statement                  
                               
                              
                              
It should be in excel format could not upload the excel form that I had worked on boy should be in

Problem 3                              
Financial Statements      

Income Statement      
           Income Statement                  
                               

Everyone, how is the "Fraud Pyramid" (sometimes called the "Fraud Triangle") different from/similar to the "Fraud Diamond" discussed in the text? Which of these three descriptions do you believe is the more accurate/descriptive, and why?

Prontor Limited is ready to prepare the master budget for the year of 2019. The company uses full absorption costing system. The Financial Position as at 31st December 2018 is as follows:

Financial Position as at 31st December 2018

                                                                                            145,850                                                  145,850

Sales and inventory data:

East Malaysia          :          2,000 units of Product Z and 2,000 units of Product Y.

       West Malaysia                 :      6,000 units of Product Z and 5,000 units of Product Y.

Selling prices          :   Product Z at $12 per unit            

                                  Product Y at $20 per unit

Planned ending inventory :         400 units of Product Z and 700 units of Product Y

Beginning inventory      : 200 units of Product Z and 350 units of Product Y

   Additional information for Prontor Limited is as follows:

Factory overhead is expected to be as follows: $75,600                                                                    

Selling and Administration expenses are budgeted as below $18,000
The cash flows of the company are projected as below :

Prontor Limited has an arrangement with its bankers that it can borrow money in multiples of $1,000, and pay interest at 12% per annum. Loans are borrowed on the first day of the quarters and repayable on the last day of the quarters in question. Interest is to be paid on repayment of loan.

Calculate

1. Cash Budget
2.   Budgeted Statement of Comprehensive Income for the year ending 31^st December 2019.
3.   Projected Financial Position as at 31^st December 2019.

The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below:

a. Standard Hours b.Standard Rate c. Standard Cost Motor tune-up

a. 12.60 b. $4.00 c. $10.40

The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 180 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:

Labor rate variance $ 714 U

Labor spending variance $ 882 U

Required:1. Determine the number of actual labor-hours spent on tune-ups during the week.

2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.)

I keep coming up with 867 for #1 and can't figure out where i'm going wrong.

Crane Company had 450 units of “Dink” in its inventory at a cost of $4 each. It purchased, for $2350, 280 more units of “Dink”. Crane then sold 580 units at a selling price of $9 each, resulting in a gross profit of $1670. The cost flow assumption used by Crane

FIFO

LIFO

Cannot be determined

weighted average

Tennis Shop Ltd (the “Shop”), a GST registered company, has a 30 June year-end. Stock takes are performed at the end of each quarter, i.e., 30 June is the end of the second quarter. Included in the general ledger are accounts for Cash, Accounts Receivable, Inventory, Accounts Payable, GST Clearing, Discounts Lost, Cost of Goods Sold, Sales, Sales Discounts, Sales Returns and Allowances. All suppliers are GST registered, as well.

The Shop has been operating under the gross purchases method applied in a perpetual inventory system. Management is interested in comparing the gross purchases method to the net purchases method and has employed you as a consultant to help with this.

The following transactions occurred during July 2018. On 1 July, there was a balance of $2,100 in Accounts Payable relating to a June inventory purchase. If the net purchases method had been used, the balance would have been $2,058.

Required:

a) Journalise, in the table provided below, the following July transactions, assuming the perpetual inventory system. First, do so under the gross purchases method, then do so under the net purchases method. If necessary, round to two decimal places. You may assume that the sale of 12 July was the only sale for the month.

Date   Transaction details:
(i)   2/7   Paid the Accounts Payable within the discount period.

(ii)   7/7    Purchased tennis racquets on account from Racquets Ltd $2,040, not including GST, terms 2/10, n/30.
      
(iii)   9/7   The Shop returned some racquets to Racquets Ltd and received credit for $230, including GST.
      
(iv) 12/7   Sold racquets on account $1,242, terms 2/10, n/30, including GST, to Sterling Sports. The inventory sold had a cost of $756, net of GST, under both methods, i.e., the discount had been taken.
      
(v)  16/7   Paid Racquets Ltd the amount due and took the discount.
      
(vi)  18/7   Sterling Sports returned some racquets and received a credit of $92, including GST. The Balls, which had cost the Shop $58, net of GST under both methods, would be re-sold.
      
(vii)  22/7   Sterling Sports paid the balance due within the discount period.

b) Revisit the transaction described in (v) above. Suppose the Shop paid Racquets Ltd after the discount period had expired. Prepare the Shop’s journal entries under both the gross and net purchases methods.

c)    Why might the Shop prefer the net purchases method over the gross purchases method?

After the amount due on a sale of $85,750, terms 3/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment. The cost of the merchandise returned was $47,163.

b. Illustrate the effects on the accounts and financial statements of the return and the refund. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases, net cash outflows, and all negative effects on net income as negative amounts.

Problem # 3 (Notes Receivable with Unrealistic Interest Rate) On December 31, 2015, Tran Co. performed environmental consulting services for Hayden Co. Hayden was short of cash, and Tran Co. agreed to accept a $100,000 zero-interest-bearing note due December 31, 2017, as payment in full. Hayden is somewhat of a credit risk and typically borrows funds at a rate of 15%. Tran is much more creditworthy and has various lines of credit at 8%.

Instructions

1. Prepare the journal entry to record the transaction of December 31, 2015, for Tran Co.
2. Assuming Tran Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2016.
3. Assuming Tran Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2017

Problem 21-43 (LO. 7, 8, 11)

Phoebe and Parker are equal members in Phoenix Investors, LLC. They are real estate investors who formed the LLC several years ago with equal cash contributions. Phoenix then purchased a parcel of land. Phoenix holds all land for investment.

On January 1 of the current year, to acquire a one-third interest in the entity, Reece contributed to the LLC some land she had held for investment. Reece purchased the land five years ago for $120,000; its fair market value at the contribution date was $90,000. No special allocation agreements were in effect before or after Reece was admitted to the LLC. A few years later, Phoenix sold the land contributed by Reece for $84,000.

Immediately before Reece's property contribution, the balance sheet of Phoenix Investors, LLC, was as follows:

a. Regarding the land sale, how much is recognized and how is it allocated?

On the land sale, under § 704(c), $ of unrealized gain or loss at the contribution date on property contributed for an LLC interest is allocated to  .

b. Complete the balance sheet reflecting basis and fair market value for the LLC immediately after the land sale.

c. Prepare schedules that roll the partners' capital accounts forward from before to immediately after the sale. Prepare two schedules: tax basis and fair market value.

If an amount is none, enter "0".

Prepare the schedule that shows the computation of the fair market value of each LLC member's capital account.

1. Sales Budgets

2. Production Budget

3. Raw Materials Budget

4. Direct Labor Budget

5. Factory Overhead Budget

6. Selling Expense Budget

7, General and Administrative Expense Budget

8.. Cash Budget

9. Budgeted Income Statement for the entire first quarter

10. Budgeted Balance Sheet

50. How is the issuance of stock accounted for?

1. When issuing common stock at par value, the journal entry would be to debit __________ and credit __________________.   
   
   

50. How is treasury stock accounted for?

1. What is treasury stock?
   
2. Why might a company later reacquire some of its own stock as treasury stock?
   
3. ABC company recently repurchased some of its own stock as treasury stock for $1,000. The company is now selling the treasury stock for $1,100. The journal entry would be:

50. How are dividends and stock splits accounted for?

1. Journalize for the 1) declaration of cash dividend of $1,000 and 2) payment of cash dividend:
   

2. Why might some companies issue stock dividends instead of cash dividends?
   
   
3. ABC Company currently has 100,000 shares of common stock with a par value of $2 before a 2-for-1 split. What is the number of shares and par value after the split?

50. How is the complete corporate income statement prepared?

1. What may appear on a corporation’s income statement that generally does not appear for smaller business?

50. How is equity reported for a corporation?

1. What is included on the statement of retained earnings?

2. The statement of stockholder’s equity reports the changes in all ___________ accounts.

50. How do we use stockholders’ equity ratios to evaluate business performance?
    1. Use the following information for ABC Company to calculate the EPS, price/earnings ratio, and return on common stockholders’ equity:

               Net Income = $10,000
               Preferred Dividends = $2,000
               Average Common Stockholders’ Equity = $300,000
               Number of Common Shares Outstanding = 20,000 shares

1. What is earnings per share?

2. What is price/earnings ratio assuming the market price is $2 per share?

3. What is rate of return on common stockholders’ equity (take percentage to 2 decimal places)?

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:

1. The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 25% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 16,250 units.

2. The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 81,375 cc of solvent H300.

3. The company maintains no work in process inventories.

A monthly sales budget for Supermix for the third and fourth quarters of the year follows.

Required:

1. Prepare a production budget for Supermix for the months July, August, September, and October.

3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.

Forecast Sales Volume and Sales Budget

For 20Y8, Raphael Frame Company prepared the sales budget that follows.

At the end of December 20Y8, the following unit sales data were reported for the year:

For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" × 10" frame is expected to increase to $34 and the unit selling price for the 12" × 16" frame is expected to increase to $45, effective January 1, 20Y9.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

3.  Prepare a sales budget for the year ending December 31, 20Y9.

Vibrant Company had $1,020,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $560,000 in each of those years. It also maintained a $320,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $300,000 rather than the correct $320,000.

Required:
1. Determine the correct amount of the company’s gross profit in each of the years 2016–2018.
2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.