1. In late 2018, NCS Corporation was formed. The corporate charter authorized the issuance of 40 million shares of common stock carrying a $1 par value, and 10 million shares of $50 par value, 10% cumulative, nonparticipating preferred stock. On Dec 23, 2018, 6 million shares of the common stock were issued in exchange for cash at an average price of $35 per share. Also on Dec 23, 3 million shares of preferred stock were issued at $55 per share.

During 2019, NCS Corporation participated in the following transactions:

• On January 30, NCS reacquired 500,000 shares for the treasury at a price of $34 per share.
• On May 31, 100,000 treasury shares were sold at $36 per share.
• On July 20, NCS reacquired and retired 1 million common shares at a price of $39 per share.
• On August 31, 100,000 treasury shares were sold at $36 per share.
• On November 15, the board of directors of NCS declared cash dividends of $1 million. Payment was scheduled for December 15, to common and preferred shareholders of record on November 15.
• On December 18, NCS declared a 5% stock dividend, payable on December 22, to common shareholders of record on December 20. At the date of declaration, the common stock was selling in the open market at $37 per share.
• On December 25, 200,000 treasury shares were sold at $35 per share.
• On December 30, NCS replaced its $1 par value common stock (all the authorized shares) with a new common stock having a $.50 par value. This represents a 2-for-1 stock split. That is, the shareholders received two shares of the $.50 par stock in exchange for each share of the $0.5 par stock they own. The $1 par stocks were collected and destroyed.
• Net income for 2019 was $15,000,000.

**Note: Dividends are not paid on shares held in the treasury. Dividends are paid only on the shares outstanding.

**Enter your answers in Thousands.

1. Prepare journal entries to record these transactions in 2019.
2. Determine the amount of dividends to be paid to preferred and common shareholders, and the amount of dividend in arrears for 2019.

On January 3, 2104 a business received a $40,000 non-interest bearing note in payment for the sale of a piece of used equipment. The cost of the equipment was $100,000 and its book value at the date of the sale was $20,000. The note will be settled with one payment due January 3, 2018. No interest rate is stated on the note but 8% is considered realistic for this kind of transaction.

1)Compute the discount for this note and determine the gain or loss to be recorded at the sale of the asset.

2) Journalize the sale of the equipment on the books of the business selling the equipment on Jan 3, 2014

3) Prepare an amortization schedule for the discount and prepare any entry or entries required for this note for the remainder of 2014 and 2015

4) Show how this note would be presented in the financial statement at 12/31/14

5) How would your answer to part 1 change if this note was to be settled in 4 even payments of $10,000 each iwth the first payment due 1/3/14

The new revenue recognition is likely to have a significant accounting and reporting impact particularly for the manufacturing industry. Use this section to articulate why this assertion might be accurate. Justify your rationale with an accounting example supported with figures.

note: Please provide a reference

Use the following information to prepare a multi-step income statement and a balance sheet for Sherman Equipment Co. for Year 2. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.) (Balance Sheet only: Items to be deducted must be indicated with a minus sign.)

Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the equipment from Wong Machines at a cost of $250,500, its fair value. (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:
Prepare a lease amortization schedule and appropriate entries for Grichuk Power from the commencement of the lease through December 31, 2018. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.
  

9717  shares of common stock outstanding at the beginning of the year. Net income was $384,717 . No dividends were paid this year nor last year. On july, the company purchased 2,000 shares of its common stock and held it in treasury. There was a 2 for 1 stock split that occurred on common stock on Dec. 1. The tax rate is 30%. A $1,500,000, 5% nonconvertible bond was issued June 30 of the current year at par value. The company has 2,000 shares outstanding of $100 par value 5% convertible Preferred stock (cumulative and non-participating). The stock was issued at $125 a share on April 1 this year and has current market price of $145 at year-end. One share of preferred stock can convert into 2 shares of common stock, none were converted.

1 Calculate Basic EPS.

2, Calculate fully diluted EPS Is Fully Dilutes EPS a required?

Cash Budget

The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:

The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $6,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month.

Current assets as of September 1 include cash of $37,000, marketable securities of $52,000, and accounts receivable of $108,400 ($85,000 from July sales and $23,400 from August sales). Sales on account for July and August were $78,000 and $85,000, respectively. Current liabilities as of September 1 include $6,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $15,000 will be made in October. Bridgeport’s regular quarterly dividend of $6,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $36,000.

Required:

1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculations.

Haas Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 25 Direct labor $ 12 Variable manufacturing overhead $ 4 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 480,000 Fixed selling and administrative expenses $ 360,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company’s product is $57 per unit. Required:

1. Compute the company’s break-even point in units sold.

2. Assume the company uses variable costing: a.Compute the unit product cost for year 1, year 2, and year 3. b. Prepare an income statement for year 1, year 2, and year 3.

3. Assume the company uses absorption costing: a. Compute the unit product cost for year 1, year 2, and year 3. (Round your intermediate and final answers to 2 decimal places.)

b. Prepare an income statement for year 1, year 2, and year 3. (Round your intermediate calculations to 2 decimal places.)

Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $801. Selected data for the company’s operations last year follow:

Required:

1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.(Round your intermediate calculations and final answer to nearest whole dollars.)

2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.

On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

1. Borrowed $115,200 for eight years. Will pay $6,100 interest at the end of each year and repay the $115,200 at the end of the 8th year.
2. Established a plant remodeling fund of $490,150 to be available at the end of Year 9. A single sum that will grow to $490,150 will be deposited on January 1 of this year.
3. Agreed to pay a severance package to a discharged employee. The company will pay $75,100 at the end of the first year, $112,600 at the end of the second year, and $150,100 at the end of the third year.
4. Purchased a $170,500 machine on January 1 of this year for $34,100 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year.

1. In transaction (a), determine the present value of the debt. (Round your answer to nearest whole dollar.)

2-a. In transaction (b), what single sum amount must the company deposit on January 1 of this year? (Round your answer to nearest whole dollar.)

2-b. What is the total amount of interest revenue that will be earned? (Round your answer to nearest whole dollar.)

3. In transaction (c), determine the present value of this obligation.

4-a. In transaction (d), what is the amount of each of the equal annual payments that will be paid on the note?

4-b. What is the total amount of interest expense that will be incurred?

Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Earned

The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:

The income before income tax was $756,000 and $661,500 for the current and previous years, respectively.

a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.

b. Determine the times interest earned ratio for both years. Round to one decimal place.

c. The ratio of liabilities to stockholders' equity has improved  and the number of times bond interest charges were earned has improved  from the previous year. These results are the combined result of a larger  income before income taxes and lower

Correct

interest expense in the current year compared to the previous year.

Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31:

Record these transactions on page 10:

Record these transactions on page 11:

What is the difference between these two ? define each one

1- Pro Forma Operating Profitability

2- Profitability based on GAAP

(Please Type I can't read handwriting)

Sellers Construction Company purchased a compressor for $105,300 cash. It had an estimated useful life of four years and a $10,800 salvage value. At the beginning of the third year of use, the company spent an additional $9,260 related to the equipment. The company’s financial condition just prior to this expenditure is shown in the following statements model:

Required
Record the $9,260 expenditure in the statements model under each of the following independent assumptions: (In the Cash Flow column, use the initials "OA" for operating activities, "FA" for financing activities, "IA" for investing activity and "NA" for no affect. Enter any decreases to account balances with a minus sign.)

a. The expenditure was for routine maintenance.
b. The expenditure extended the compressor’s life.
c. The expenditure improved the compressor’s operating capacity.

Job order cost accounting for a service company

The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The The rate used to apply factory overhead costs to the goods manufactured. The rate is determined by dividing the budgeted overhead cost by the estimated activity usage at the beginning of the fiscal period.predetermined overhead rate is 40% of media purchases.

On August 1, the four advertising projects had the following accumulated costs:

During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts:

At the end of August, both the Vault Bank and Take Off Airlines campaigns were completed. The costs of completed campaigns are debited to the cost of services account.

a. Journalize the summary entry to record the direct labor costs for the month.

Feedback

a. Increase the work in process for the direct costs and the applied overhead. Applied overhead should be based on media purchases. Transfer the cost of completed jobs out of work-in-process and into the cost of services account.

b. Journalize the summary entry to record the media purchases for the month.

Feedback

b. Increase the work in process for the direct costs and the applied overhead. Applied overhead should be based on media purchases. Transfer the cost of completed jobs out of work-in-process and into the cost of services account.

c. Journalize the summary entry to record the overhead applied for the month.

Feedback

c. Increase the work in process for the direct costs and the applied overhead. Applied overhead should be based on media purchases. Transfer the cost of completed jobs out of work-in-process and into the cost of services account.

d. Journalize the summary entry to record the completion of Vault Bank and Take Off Airlines for the month.