Chesterfield County had the following transactions.

a. A budget is passed for all ongoing activities. Revenue is anticipated to be $940,750 with approved spending of $631,000 and operating transfers out of $248,000.

b. A contract is signed with a construction company to build a new central office building for the government at a cost of $6,300,000 . A budget for this project has previously been recorded.

c. Bonds are sold for $6,300,000 (face value) to finance construction of the new office building.

d. The new building is completed. An invoice for $6,300,000 is received and paid.

e. Previously unrestricted cash of $1,220,000 is set aside to begin paying the bonds issued in (c).

f. A portion of the bonds comes due and $1,220,000 is paid. Of this total, $150,000 represents interest. The interest had not been previously accrued.

g. Citizens' property tax levies are assessed. Total billing for this tax is $815,000. On this date, the assessment is a legally enforceable claim according to the laws of this state. The money to be received is designated for the current period and 90 percent is assumed to be collectible in this period with receipt of an additional 6 percent during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible.

h. Cash of $169,000 is received from a toll road. This money is restricted for highway maintenance.

i. The county received investments valued at $379,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks.

Prepare the entries first for fund financial statements and then for government-wide financial statements.

Explain the similarities and differences between financial and managerial accounting, and prepare, use and interpret a contribution margin income statement using cost, volume, profit and break-even techniques.

Quasi-Reorganization
The Hassani Corporation has the following balance sheet:

Company profitability has been marginal, in part due to book values of noncurrent assets that do not adequately reflect the reduced earning power of the assets. To give its balance sheet a better basis for future profitability, the company decides to undertake a quasi-reorganization. Hassani writes down noncurrent assets to their fair value of $3,000,000 and replaces the current common stock with 100,000 shares of a new issue having a $1 par value.

Required

a. Prepare journal entries to record the quasi-reorganization.

b. Prepare a balance sheet following the quasi-reorganization.

Air North has the following balance as of today:

Bond coupon rate=8%; coupon payment annual;                                          ($million)

Remaining term to maturity= 15 years and the

Face value of each bond =$1000)                                                                  10

Common stock:

-Shares outstanding (#5,000,000)                                                                  6

-Retained Earnings                                                                                         8

The yield to maturity of a new 15-year bond which is of similar risk as that of Air North's currently outstanding bond is 12%. Air North can issue this new bond at par of $1,000. Common stock can be issued to the existing shareholders at $18 per share which represents an 11.11% discount from the prevailing market price. Beta of the stock of the firm is 1.4 while the risk free rate and the expected rate of return on the market portfolio are 6% and 14% respectively. Earnings per share at the end of the year are anticipated to be $3. Air North's tax rate is 25%.

Find:

i)              The cost of capital to the firm

ii)            The cost of equity capital, taking into account three models of estimating cost of equity capital

iii)           The weight average cost of capital

Q3- Abdulaziz company purchased a machine in 2013 for 50,000 that has a useful life of 5 years with a salvage value of 5,000

Calculate the depreciation expense, accumulated depreciation, book value throughout its useful life using:

1- Straight-line method.

2- Units of Production method if the machine produces 100,000 units.

Here is a table of units produced each year:

3- Double Declining balance method.

Standard Product Cost, Direct Materials Variance

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (2,700 pounds) has the following standards:

The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch K-111 were as follows:

a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.

b.  Determine the direct materials quantity variance for batch K-111. If required, round amounts to the nearest cent. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets

The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows:

a. Estimated sales for July by sales territory:

b. Estimated inventories at July 1:

c. Desired inventories at July 31:

d. Direct materials used in production:

e. Anticipated purchase price for direct materials:

f. Direct labor requirements:

Required:

1. Prepare a sales budget for July.

2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

3. Prepare a direct materials purchases budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

4. Prepare a direct labor cost budget for July.

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast 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 4,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 19,000 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 114,000 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.

A company bought the available for sale investments during 2017 (no investments as of 12/31/16)

- they bought 200 shares of apple stock for $40,000 on 2/1/17

- they bought 100 treasury bonds at $1,000 par each with an 4% interest rate at 4/2/2017 (semi annual on 4/1 and 10/1)

- $50,000 of company B 9% bonds due 3/1/37, interest payable on 3/1. our company paid 50,000 plus accrued interest for these bonds on 7/1/17

Required:

1- prepare journal entries for 2017 for all purchases on the investments

2- prepare all the appropriate adjusting entries as of 12/31/17 for the investments, Fair Market Value as of 12/31/17

Company A C-Stock $42,000

Treasury bonds $104,000

Company B Bonds $51,000

3- The Treasury bonds were sold on 7/1/18 for $103,000 plus accrued interest . prepare the journal entry.

Provide at least three reasons why companies are hesitant to adopt the intranet and for each reason describe how the company can best manage these issues

Required information Exercise 8-18 Complete the accounting cycle (LO8-1, 8-2, 8-4, 8-6) On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,100 Accounts Receivable 46,200 Allowance for Uncollectible Accounts $ 4,200 Inventory 20,000 Land 46,000 Equipment 15,000 Accumulated Depreciation 1,500 Accounts Payable 28,500 Notes Payable (6%, due April 1, 2022) 50,000 Common Stock 35,000 Retained Earnings 33,100 Totals $ 152,300 $ 152,300 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $147,000. January 15 Firework sales for the first half of the month total $135,000. All of these sales are on account. The cost of the units sold is $73,800. January 23 Receive $125,400 from customers on accounts receivable. January 25 Pay $90,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $4,800. January 30 Firework sales for the second half of the month total $143,000. Sales include $11,000 for cash and $132,000 on account. The cost of the units sold is $79,500. January 31 Pay cash for monthly salaries, $52,000. Exercise 8-18 Part 1 1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Solving for Unknowns

Misterio Company uses a standard costing system. During the past quarter, the following variances were computed:

Misterio applies variable overhead using a standard rate of $2 per direct labor hour allowed. Two direct labor hours are allowed per unit produced. (Only one type of product is manufactured.) During the quarter, Misterio used 30 percent more direct labor hours than should have been used.

Required:

1. What were the actual direct labor hours worked?
hours

What are the total hours allowed?
hours

2. What is the standard hourly rate for direct labor?
$ per hour

What is the actual hourly rate? Round your answer to the nearest cent.
$ per hour

3. How many actual units were produced?
units

Garver Industries has budgeted the following unit sales:

The finished goods units on hand on December 31, 2016, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2016.
For the first quarter of 2017, prepare a production budget.

For the first quarter of 2017, prepare a direct materials budget.

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Garver Industries has budgeted the following unit sales:

The finished goods units on hand on December 31, 2016, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2016.
For the first quarter of 2017, prepare a production budget.

For the first quarter of 2017, prepare a direct materials budget.

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