Questions
3) Magic Co. holds 100% of the outstanding common stock of Jonson Co. and would like...

3) Magic Co. holds 100% of the outstanding common stock of Jonson Co. and would like to prepare year-end (December 31, Year 2) consolidated financial statements. The separate financial statements of Magic Co. are prepared for fiscal year ending December 31, Year 2. Jonson Co. reports its separate financial statements for the fiscal year ending June 30, Year 1.

Research and cite a specific paragraph in the Accounting Standard Codification that can help Magic Co. to determine whether it can use the financial statements of Jonson Co. (from June 30, Year 1) for preparing the consolidated financial statements for the fiscal year ending December, 31, Year 2, without any adjustments. Unless specifically requested, your response should not cite implementation guidance and illustrations.

FASB ASC                               -                   -                   -

In: Accounting

Towing Company has budgeted sales for the next six months as follows: Sales for Cash Sales...

Towing Company has budgeted sales for the next six months as follows: Sales for Cash Sales on Account May $42,000 $257,000 June $37,000 $243,000 July $29,000 $238,000 August $48,000 $269,000 September $52,000 $251,000 October $45,000 $263,000 On average, 32% of the sales on account are collected in the month of sale, 40% are collected in the month following sale, 16% are collected in the second month following sale, 8% are collected in the third month following sale, and the remaining 4% is collected four months after the month of sale. Calculate Towing Company's budgeted accounts receivable at October 31.

In: Accounting

Henry Company reported the following information for 2017: TRANSACTIONS UNITS UNIT COST Beginning Inventory – January...

Henry Company reported the following information for 2017:

TRANSACTIONS UNITS UNIT COST

Beginning Inventory – January 1 6,000 $ 3.00

Purchases

April 10 9,000 3.50

July 20 5,000 3.80

November 24 5,000 4.00

During 2017, Henry sold 12,000 units. The company uses a periodic inventory system.

REQUIRED:

What is the value of ending inventory and cost of goods sold for 2017 under the following assumptions:

  1. FIFO
  2. LIFO
  3. Weighted-Average

In: Accounting

Jeffrey owns 100% of HR Company. In 2016, he lent the firm $70,000. In 2018, he...

Jeffrey owns 100% of HR Company. In 2016, he lent the firm $70,000. In 2018, he cancelled the debt. The results of this debt cancellation are:

A. HR Company recognizes $70,000 gain; no effect to Jeffrey

B. HR Company recognizes $70,000 gain; Jeffry has $70,000 bad debt

C. HR Company has no income; no effect to Jeffrey

D. HR Company has no income; Jeffrey has $70,000 bad debt

E. HR Company has no income; Jeffrey increases his basis in HR Company Stock

In: Accounting

PartA: Jan 1st, 2020: Tony Inc. buys a machine from Avengers Inc. and will make 3...

PartA: Jan 1st, 2020: Tony Inc. buys a machine from Avengers Inc. and will make 3 equal payments of 200,000 over the next 18 months (payments on June 30, 2020; Dec 31, 2020; and June 30, 2021). The interest rate on this annuity is 14%. Record all the journal entries from Jan 1st 2020 until the expiration of the annuity. (4 points) Assume the machine does not depreciate.

Part B: Create the balance sheet as of December 31st, 2020 along with the income statement and cash flow statement for the time period of Jan 1st, 2020 to Dec 31st,2020 (6 points) (There might have a $1 rounding issue )

Thank you so much guys!!!

In: Accounting

2) Lebron Co. acquired the entire outstanding shares of common stock of Cavaliers Co. On the...

2) Lebron Co. acquired the entire outstanding shares of common stock of Cavaliers Co. On the acquisition date the total fair value of net identifiable assets acquired (i.e., far value of identifiable assets acquired and liabilities assumed) was greater than the consideration transferred for the shares.

Research and cite a specific paragraph in the Accounting Standard Codification that can help the company to determine how this difference should be recognized in the consolidated financial statements. Unless specifically requested, your response should not cite implementation guidance and illustrations.

FASB ASC                              -                   -                    -

In: Accounting

You have been hired by Patterson Planning Corp., an events planning company that recently had a...

You have been hired by Patterson Planning Corp., an events planning company that recently had a fire in which some of the accounting records were damaged.

In reviewing the fixed asset records, you find three depreciation

The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.

schedules that are not labeled. They are listed in the following table. One of the assets has a depreciation rate of $4.50 per hour.

Year Schedule A Schedule B Schedule C
1 $8,000.00 $10,125.00 $9,450.00
2 4,800.00 13,500.00 6,750.00
3 2,880.00 13,500.00 7,650.00
4 1,728.00 13,500.00 6,750.00
5 592.00 3,375.00 4,500.00
6 7,200.00
7 4,950.00
8
Total $18,000.00 $54,000.00 $47,250.00

For each of the depreciation schedules shown on the Patterson Planning Corp. panel, fill in the following information. Leave any cells blank that cannot be determined from the depreciation schedule.

A

B

C

Useful life
Residual value

The estimated value of a fixed asset at the end of its useful life.

Asset cost
Total operating hours         

Review the depreciation schedules on the Patterson Planning Corp. panel, then answer the following questions.

1. How would you adjust Schedule B if, at the beginning of Year 3, the asset was estimated to have 5 more years of life remaining, but with a residual value that was $2,000 lower?

The total depreciation for this asset now will be $__________ . The depreciation amount for Year 3 will be $_______

In: Accounting

Impact of Increased Sales on Operating Income Using the Degree of Operating Leverage Head-First Company had...

Impact of Increased Sales on Operating Income Using the Degree of Operating Leverage Head-First Company had planned to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $100,500. The degree of operating leverage is 1.5. Now Head-First expects to increase sales by 10% next year. Required:

1. Calculate the percent change in operating income expected. 15 %

2. Calculate the operating income expected next year using the percent change in operating income calculated in Requirement 1.

In: Accounting

Required information Great Adventures Problem AP12-1 [The following information applies to the questions displayed below.] Income...

Required information

Great Adventures Problem AP12-1

[The following information applies to the questions displayed below.]

Income statement and balance sheet data for Great Adventures, Inc., are provided below.

GREAT ADVENTURES, INC.
Income Statement
For the year ended December 31, 2022
Net sales revenues $ 203,860
Interest revenue 500
Expenses:
Cost of goods sold $ 40,400
Operating expenses 74,580
Depreciation expense 19,150
Interest expense 11,523
Income tax expense 16,400
Total expenses 162,053
Net income $ 42,307
GREAT ADVENTURES, INC.
Balance Sheets
December 31, 2022 and 2021
2022 2021
Assets
Current assets:
Cash $ 342,940 $ 64,880
Accounts receivable 51,020 0
Inventory 10,800 0
Other current assets 1,280 6,020
Long-term assets:
Land 880,000 0
Buildings 895,000 0
Equipment 101,140 59,000
Accumulated depreciation (29,050 ) (8,950 )
Total assets $ 2,253,130 $ 120,950
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 24,600 $ 3,560
Interest payable 1,700 940
Income tax payable 16,400 14,380
Other current liabilities 32,400 0
Notes payable (current) 86,404 0
Notes payable (long-term) 826,129 33,800
Stockholders’ equity:
Common stock 158,000 32,920
Paid-in capital 1,249,800 0
Retained earnings 61,697 35,350
Treasury stock (204,000 ) 0
Total liabilities and stockholders’ equity $ 2,253,130 $ 120,950


As you can tell from the financial statements, 2022 was an especially busy year. Tony and Suzie were able to use the money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child.

calculate the following risk ratios for 2022.

a. Receivables turnover ratio. (Hint: Use net sales revenues for net credit sales) times
b. Average collection period. days
c. Inventory turnover ratio. times
d. Average days in inventory. days
e. Current ratio. to 1
f. Acid-test ratio. (Hint: There are no current investments) to 1
g. Debt to equity ratio. %
h. Times interest earned ratio. times

In: Accounting

*please write a 250 word memo* thank you ? explain actual business examples that assist General...

*please write a 250 word memo* thank you ?

explain actual business examples that assist General Motors in operating more effectively and efficiently to prevent waste kn materials and labor and to implement better processes (standard or customized procedures.)

In: Accounting

Department G had 2,400 units 25% completed at the beginning of the period, 14,000 units were...

Department G had 2,400 units 25% completed at the beginning of the period, 14,000 units were completed during the period, 2,000 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period: Work in process, beginning of period $28,300 Costs added during period: Direct materials (13,600 units at $9) 122,400 Direct labor 78,600 Factory overhead 26,200 All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of 2,400 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)? a. $28,300 b. $43,970 c. $39,236 d. $41,970

In: Accounting

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

Work in process, August 1, 600 pounds, 60% completed $3,132*
*Direct materials (600 X $4.20) $2,520
Conversion (600 X 60% X $1.70) 612
$3,132
Coffee beans added during August, 19,000 pounds 78,850
Conversion costs during August 33,372
Work in process, August 31, 1,000 pounds, 30% completed ?
Goods finished during August, 18,600 pounds ?

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

  1. Direct materials and conversion equivalent units of production for August
  2. Direct materials and conversion costs per equivalent unit for August
  3. Cost of goods finished during August
  4. Cost of work in process at August 31

If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

Morning Brew Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended August 31
Unit Information
Units charged to production:
Inventory in process, August 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials (1) Conversion (1)
Inventory in process, August 1
Started and completed in August
Transferred to finished goods in August
Inventory in process, August 31
Total units to be assigned costs
Cost Information
Cost per equivalent unit:
Direct Materials Conversion
Total costs for August in Roasting Department $ $
Total equivalent units
Cost per equivalent unit (2) $ $
Costs assigned to production:
Direct Materials Conversion Total
Inventory in process, August 1 $
Costs incurred in August
Total costs accounted for by the Roasting Department $
Costs allocated to completed and partially completed units:
Inventory in process, August 1 balance $
To complete inventory in process, August 1 $ $
Cost of completed August 1 work in process $
Started and completed in August
Transferred to finished goods in August (3) $
Inventory in process, August 31 (4)
Total costs assigned by the Roasting Department $

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.

Increase or Decrease Amount
Change in direct materials cost per equivalent unit $
Change in conversion cost per equivalent unit $

In: Accounting

Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the...

Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constriant) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's upholstered chairs appears below: Recliner Sofa Love Seat Selling price per unit $ 1,400 $ 1,800 $ 1,500 Variable cost per unit $ 800 $ 1,200 $ 1,000 Upholstery labor-hours per unit 8 hours 10 hours 5 hours Required: 1. Portsmouth is considering paying its upholstery laborers additional compensation to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime premium per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $45 per hour. The management of Portsmouth is confident that this upholstering company’s work is high quality and their craftsmen can work as quickly as Portsmouth’s own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if it provides the raw materials to the nearby company and then hires it to upholster the Love Seats? 3. Should Portsmouth hire the nearby upholstering company?

In: Accounting

Jason, a 55-year-old corporate executive, wants advice as to when he can retire. His current salary...

Jason, a 55-year-old corporate executive, wants advice as to when he can retire. His current salary is

$240,000 and he receives an annual bonus of $300,000; he also has annual stock options and restricted

stock awards valued at $100,000. His employer contributes to a cash balance pension plan as and

matches his contributions to a 401(k). Jason’s Roth IRA has a balance of $240,000. The Roth IRA’s

balance consists of the $100,000 conversion Jason made 3 years ago Jason from an old qualified plan

and $50,000 of contributions (he has paid into over the years since it’s establishment many years ago),

the rest is earnings. Jason, owns a whole life insurance policy with a $500,000 death benefit and is

considering the purchase of a term policy with a $2,000,000 death benefit. He and his wife, Brenda, also

age 55, believe they can live on an after-tax income of $180,000. Assume a federal income tax rate of

35%.

Jason and Brenda come to you because their neighbor has been telling them he must take a certain

amount of his account or he will be tax and penalized 50% on the missed distribution. They are very

concerned because they do not want to incur a 50% penalty.

You explain the mechanics of RMD calculations to them. Then they ask you what their RMD would be at

age 70.

1.

Assuming that Brenda dies in 23 years and that Jason survives her, which of the following

options is correct regarding required minimum distributions from her IRA

?

A. Jason may postpone distributions from Brenda’s IRA until she would have been 70 ½

and the he must take distributions from the IRA over his life expectancy.

B. Jason may postpone distributions from Brenda’s IRA until she would have been 70 ½

and then he must take distributions from the IRA over no more than five years.

C. Jason must begin taking distributions by the end of the year following the year of

Brenda’s death

D. Jason must begin taking distributions by the end of the year of Brenda’s death.

2. Time passes and Jason dies, widowing Brenda at age 53. She comes to you for help deciding

between taking a lump-sum distribution from her husband’s pension plan of $263,500 now or

selecting a life annuity starting when she is age 65 (life expectancy at 65 is 21 years) of $2,479/

month. Current 30yr treasuries are yielding 6 percent annually.

What would you advise her

:

1. If she takes the lump-sum distribution, she will receive $263,500 in cash now and be

able to reinvest for 34yrs, creating an annuity of $4,570/mo.

2. If she takes the lump-sum distribution she will be subject to the 10% early withdrawal

penalty.

A. 1 only

B. 2 only

C. Both 1 & 2

D. Neither 1 nor 2

3 Jason and Brenda are in your office completing their annual review. They tell you they took a

$130,000 distribution from Jason’s Roth IRA in May of this year to go on a dream vacation, make car

repairs and to help their granddaughter pay for school tuition.

They have asked you if there would be any tax or penalty owed on the distribution. What do you

advise them?

A. There would be no tax due and no penalty

B. The entire distribution would be taxed at their ordinary income tax bracket and there

would be a 10% early withdraw penalty

C. $50,000 would be taxed at ordinary income tax levels

D. There would be no tax due, but a penalty of $8,000

4

Brenda wants to contribute to her existing IRA account. What do you advise her?

A. She may contribute to the IRA and deduct her contribution

B. She may not contribute to the IRA because she is an active plan participant

C. She may contribute to the IRA but may not deduct the contribution

D. She may not contribute to the IRA because her earnings are too high

In: Accounting

Goodwill is an intangible asset. There are a variety of recommendations about how intangible assets should...

Goodwill is an intangible asset. There are a variety of recommendations about how intangible assets should be included in the financial statements. Discuss the recommendations for proper disclosure of goodwill. Include a comparison with disclosure of other intangible assets

In: Accounting