The BouchonCompany started its operations many years ago. The balance sheet for December 31, 2017, showed the following account balances, in dollars (there were no other accounts listed):
Cash 827; Paid in capital 1,000; Loan from bank (0% interest) 800; Dividend payable 100; Accumulated depreciation 250; Inventory 300; Retained earnings 334; Accounts receivable 400; PP&E 1,500; Accounts payable 250; Wages payable 103; Rent payable 30; Advances from customers 160;
During 2018the following transactions occurred:
b. All current and past customers have paid their accounts in full by the end of the year.
Required:
In: Accounting
Understand only one can be asked, but I give a thumbs up for answering as many as you can.
The cost of good manufactured is credited to which of the following accounts?
A. cost of goods sold
B. Finished Goods
C. Work in Process
D. Raw Materials.
The cost of goods sold is credited to which of the following accounts?
A. Cost of goods manufactured
B. work in process
C. cost of goods sold
D. Finished goods
An Immaterial amount of under applied overhead is debited to which of the following accounts?
A. manufacturing overhead
B. cost of goods sold
C. work in process
D. finished goods
A material amount of over applied overhead is debited to which of the following accounts?
A. manufacturing overhand
B. work in process
C. finished Goods
D. Cost of goods sold
The reduction of inventories is an objective of:
A. total quality management
B. just in time production
C. activity based costing
D. computer controlled manufacturing systems
In: Accounting
The controller of Dash Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:
| March | April | May | ||||
| Sales | $136,000 | $163,000 | $223,000 | |||
| Manufacturing costs | 57,000 | 70,000 | 80,000 | |||
| Selling and administrative expenses | 39,000 | 44,000 | 49,000 | |||
| Capital expenditures | _ | _ | 54,000 | |||
The company expects to sell about 12% 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 $9,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in July, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 85% are expected to be paid in the month in which they are incurred and the balance in the following month.
Current assets as of March 1 include cash of $52,000, marketable securities of $73,000, and accounts receivable of $151,700 ($119,000 from February sales and $32,700 from January sales). Sales on account for January and February were $109,000 and $119,000, respectively. Current liabilities as of March 1 include a $68,000, 12%, 90-day note payable due May 20 and $9,000 of accounts payable incurred in February for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. It is expected that $4,100 in dividends will be received in March. An estimated income tax payment of $20,000 will be made in April. Dash Shoes' regular quarterly dividend of $9,000 is expected to be declared in April and paid in May. Management desires to maintain a minimum cash balance of $41,000.
Required:
1. Prepare a monthly cash budget and supporting schedules for March, April, and May. 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.
| Dash Shoes Inc. | |||
| Cash Budget | |||
| For the Three Months Ending May 31, 2016 | |||
| March | April | May | |
| Estimated cash receipts from: | |||
| Cash sales | $ | $ | $ |
| Collection of accounts receivable | |||
| Dividends | |||
| Total cash receipts | $ | $ | $ |
| Estimated cash payments for: | |||
| Manufacturing costs | $ | $ | $ |
| Selling and administrative expenses | |||
| Capital expenditures | |||
| Other purposes: | |||
| Note payable (including interest) | |||
| Income tax | |||
| Dividends | |||
| Total cash payments | $ | $ | $ |
| Cash increase or (decrease) | $ | $ | $ |
| Cash balance at beginning of month | |||
| Cash balance at end of month | $ | $ | $ |
| Minimum cash balance | |||
| Excess or (deficiency) | $ | $ | $ |
2. The budget indicates that the minimum cash balance be maintained in May. This situation can be corrected by and/or by the of the marketable securities, if they are held for such purposes. At the end of March and April, the cash balance will the minimum desired balance.
In: Accounting
Problem 4-3A Computing merchandising amounts and formatting income statements LO C2, P4
Valley Company’s adjusted trial balance on August 31, 2018, its
fiscal year-end, follows.
| Debit | Credit | ||||||
| Merchandise inventory | $ | 30,500 | |||||
| Other (noninventory) assets | 122,000 | ||||||
| Total liabilities | $ | 35,228 | |||||
| Common stock | 10,000 | ||||||
| Retained earnings |
93,147 |
||||||
| Dividends | 8,000 | ||||||
| Sales | 208,620 | ||||||
| Sales discounts | 3,192 | ||||||
| Sales returns and allowances | 13,769 | ||||||
| Cost of goods sold | 81,497 | ||||||
| Sales salaries expense | 28,581 | ||||||
| Rent expense—Selling space | 9,805 | ||||||
| Store supplies expense | 2,503 | ||||||
| Advertising expense | 17,733 | ||||||
| Office salaries expense | 26,078 | ||||||
| Rent expense—Office space | 2,503 | ||||||
| Office supplies expense | 834 | ||||||
| Totals | $ | 346,995 | $ | 346,995 | |||
On August 31, 2017, merchandise inventory was $24,614.
Supplementary records of merchandising activities for the year
ended August 31, 2018, reveal the following itemized
costs.
| Invoice cost of merchandise purchases | $ | 89,670 |
| Purchases discounts received | 1,883 | |
| Purchases returns and allowances | 4,304 | |
| Costs of transportation-in | 3,900 | |
Required:
1. Compute the company’s net sales for the
year.
2. Compute the company’s total cost of merchandise
purchased for the year.
3. Prepare a multiple-step income statement that
includes separate categories for net sales, cost of goods sold,
selling expenses, and general and administrative expenses.
4. Prepare a single-step income statement that
includes these expense categories: cost of goods sold, selling
expenses, and general and administrative expenses.
In: Accounting
(1) The standard costs of wooden ducks on wheels, for the CURRENT year, for 5 mm board and for cutting are as follows:-
5 mm board: 0.2 sq. metre at £4.50 per sq. metre.
Cutters: 1.5 minutes at £7.20 per hour.
In the most recent period, 120 wooden ducks on wheels were produced.
25 sq. metres of 5 mm board were requisitioned from stores at a total cost of £110.
2.75 hours were recorded for cutters at a total cost of £22.
Required
(a) Calculate the material price variance and material usage variance for 5 mm board
(ii) Calculate the wage rate variance and labour efficiency variance for cutters
Suggest possible reasons for the variances calculated.
(2) Given standard cost per unit:
Direct materials (4 kg. @ 75p per kg)
Direct labour (2 hrs @ £1.60 per hr)
Actual details are:
|
|
£ |
|
|
Output produced (units) |
38,000 |
|
|
Direct material purchased |
180,000 kg |
126,000 |
|
issued to production |
154,000 kg |
|
|
Direct labour |
78,000 hrs |
136,500 |
Calculate: Material and labour variances.
In: Accounting
Becher Industries has three suppliers for its raw materials for manufacturing. The firm purchases $210 million per year from Johnson Corp. and normally takes 30 days to pay these bills. Becher also purchases $150 million per year from Jensen, Inc., and normally pays Jensen in 45 days. Becher's third supplier, Docking Distributors, offers 2/10, n.30 terms. Becher takes advantage of the discount on the $90 million per year that it typically purchases from Docking. Calculate Becher's expected accounts payable balance. Assume that all purchases are made evenly across the year. (Use a 360-day year for your calculations; for example, calculate Johnson's accounts as $180 million × 30/360.) An answer of $1.2 million should be entered as 1,200,000. Do not round your intermediate calculations. Round your answer to two decimal places.
In: Accounting
Can I see the solution for Excel applications for accounting principles P9 ticklers(optional) DEPECT?
In: Accounting
What are the challenges a US based hotel may face in the Greece because of its accounting standards?
In: Accounting
In January 20X3, Elliott Industries recorded the following transactions:
Compute the change in Elliott's working capital for the month of January 20X3. (Hint: Each transaction has offsetting entries that sum to zero. If all of the entries are to current accounts, there's no impact on working capital. But if one side is somewhere else, working capital will change.)
In: Accounting
Riley incorporated reports the following amounts at the end of the year:
Cash 3200, Building 60,000, account payable 8500, interest expense 4000, Adverting expense 11,300, Service revenue 92,500, Salaries expense 72,800, Equipment 72,000, Supplies 6,400, Notes payable 40,000.
IN addition the company had common stock of $65,000 at the beginning of the year and issued an additional $5,000 during the year the company also had retained earnings of $20,700 at the beginning of the year and paid dividends of $2,000 during the year. Prepare the income statement of stockholder's equity and balance sheet:
Net income _______________________
Ending balance of common stock __________________
Ending balance of retained earning__________________
Ending total stockholder's equity__________________
Total assets__________
Total current assets____________
Total liabilities___________________
Total liabilities and shareholders equity ________________
In: Accounting
On March 1, 2021, Bearcat lends an employee $11,500. The employee signs a note requiring principal and interest at 12% to be paid on February 28, 2022. Record the adjusting entry for interest at its year-end of December 31.
In: Accounting
A- FOR THE FOLLOWING MANGEMENT ASSSERTION IDENTIFY WHETHER IT IS ABOUT CLASSES OF TRANSACTIONS AND EVENTS, ABOUT ACCOUNT BALANCES OR MANGEMENT ASSERTIONS ABOUT PRESENTATION AND DISCLOSURES B- ALSO INDICATE THE NAME OF THE ASSERTION MADE BY MANAGEMENT a) All sales transactions have been recorded b) Receivables are appropriately classified as to trade and other receivables in the financial statements and are clearly described c) Accounts receivable are recorded at the correct amounts d) Sales transactions have been recorded in the proper period e) Sales transactions have been recorded int eh appropriate accounts f) All required disclosures about sales and receivables have been made g) All accounts receivable have been recorded
In: Accounting
The following incomplete balance sheet for the Sanderson
Manufacturing Company was prepared by the company’s controller. As
accounting manager for Sanderson, you are attempting to reconstruct
and revise the balance sheet.
| SANDERSON MANUFACTURING COMPANY | |||||
| Balance Sheet | |||||
| At December 31, 2021 | |||||
| ($ in 000s) | |||||
| Assets | |||||
| Current assets: | |||||
| Cash | $ | 2,450 | |||
| Accounts receivable | 5,900 | ||||
| Allowance for uncollectible accounts | (1,600 | ) | |||
| Finished goods inventory | 7,200 | ||||
| Prepaid expenses | 2,400 | ||||
| Total current assets | 16,350 | ||||
| Long-term assets: | |||||
| Investments | 4,200 | ||||
| Raw materials and work in process inventory | 3,450 | ||||
| Equipment | 24,000 | ||||
| Accumulated depreciation | (5,400 | ) | |||
| Patent (net) | ? | ||||
| Total assets | $ | ? | |||
| Liabilities and Shareholders’ Equity | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 6,400 | |||
| Notes payable | 6,400 | ||||
| Interest payable (on notes) | 1,300 | ||||
| Deferred revenue | 5,400 | ||||
| Total current liabilities | 19,500 | ||||
| Long-term liabilities: | |||||
| Bonds payable | 6,700 | ||||
| Interest payable (on bonds) | 200 | ||||
| Shareholders’ equity: | |||||
| Common stock | $ | ? | |||
| Retained earnings | ? | ? | |||
| Total liabilities and shareholders’ equity | ? | ||||
Additional information ($ in 000s):
Required:
Prepare a complete, corrected, classified balance sheet.
(Amounts to be deducted should be indicated by a minus
sign.)
In: Accounting
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's)):
| Cash | NGN | 16,580 | Notes payable | NGN | 20,260 | |
| Inventory | 11,300 | Common stock | 21,600 | |||
| Land | 4,130 | Retained earnings | 10,800 | |||
| Building | 41,300 | |||||
| Accumulated depreciation | (20,650 | ) | ||||
| NGN | 52,660 | NGN | 52,660 | |||
The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place:
| 2017 | |
| Feb. 1 | Paid 8,130,000 NGN on the note payable. |
| May 1 | Sold entire inventory for 17,300,000 NGN on account. |
| June 1 | Sold land for 6,130,000 NGN cash. |
| Aug. 1 | Collected all accounts receivable. |
| Sept.1 | Signed long-term note to receive 8,130,000 NGN cash. |
| Oct. 1 | Bought inventory for 20,130,000 NGN cash. |
| Nov. 1 | Bought land for 3,130,000 NGN on account. |
| Dec. 1 | Declared and paid 3,130,000 NGN cash dividend to parent. |
| Dec. 31 | Recorded depreciation for the entire year of 2,065,000 NGN. |
The U.S dollar ($) exchange rates for 1 NGN are as follows:
| 2008 | NGN 1 | = | $ | 0.0061 |
| 2010 | 1 | = | 0.0055 | |
| August 1, 2016 | 1 | = | 0.0075 | |
| December 31, 2016 | 1 | = | 0.0077 | |
| February 1, 2017 | 1 | = | 0.0079 | |
| May 1, 2017 | 1 | = | 0.0081 | |
| June 1, 2017 | 1 | = | 0.0083 | |
| August 1, 2017 | 1 | = | 0.0087 | |
| September 1, 2017 | 1 | = | 0.0089 | |
| October 1, 2017 | 1 | = | 0.0091 | |
| November 1, 2017 | 1 | = | 0.0093 | |
| December 1, 2017 | 1 | = | 0.0095 | |
| December 31, 2017 | 1 | = | 0.0110 | |
| Average for 2017 | 1 | = | 0.0100 | |
Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?
In: Accounting
Riley incorporated reports the following amounts at the end of the year:
Cash 3200, Building 60,000, account payable 8500, interest expense 4000, Adverting expense 11,300, Service revenue 92,500, Salaries expense 72,800, Equipment 72,000, Supplies 6,400, Notes payable 40,000.
IN addition the company had common stock of $65,000 at the beginning of the year and issued an additional $5,000 during the year the company also had retained earnings of $20,700 at the beginning of the year and paid dividends of $2,000 during the year. Prepare the income statement of stockholder's equity and balance sheet:
Net income _______________________
Ending balance of common stock __________________
Ending balance of retained earning__________________
Ending total stockholder's equity__________________
Total assets__________
Total current assets____________
Total liabilities___________________
Total liabilities and shareholders equity ________________
In: Accounting