Posting Journal Entries and preparing Trial Balance

Dyna Corp., a legal firm, completed the following transactions during the month of January, its first month of operations.

1. Jan. 1 Issued 4,000 shares of common stock for $20,000 cash.

2. Jan. 3 Purchased $24,000 of office equipment by paying $2,000 cash and by signing a one-year, 10% interest-bearing note payable for the remaining balance.

3. Jan. 3 Purchased $1,200 supplies on account. Hint: Debit supplies.

4. Jan. 4 Performed $1,600 of legal services on account.

5. Jan. 6 Received a $600 cash deposit from a new client for legal work to commence next month.

6. Jan. 10 Paid $2,000 cash for a 12-month insurance policy.

7. Jan. 13 Paid cash to settle the account for supplies purchased on January 3.

8. Jan. 20 Performed legal services for $2,000 cash.

9. Jan. 30 Collected $800 cash from customer on account for legal services performed on January 4.

10. Jan. 31 Paid $1,200 cash in salaries for the month of January.

11. Jan. 31 Paid $400 cash dividends to shareholders.

12. Jan. 31 Paid $2,000 cash for January rent.

Using the information above, complete the following requirements.

a. Post the journal entries 1 through 12 to T-accounts (serving as a ledger), and determine the ending balance in each T-account.

Note: Enter amounts in the order that they are presented above (1 through 12), using the first answer field on the appropriate side of the T-account. Not all answer fields will be used. Do not enter dates.

On January 1, 2014, Enterprise purchased 15-year, 6% bonds having maturity a value of $474,000. Interest is paid annually on December 31 and the bonds provide the bondholders a 5% yield. Pacific Enterprise uses the effective-interest method to amortize discount or premium. At the time of acquisition, the bonds were classified as trading. The fair value of the bonds on December 31, 2018 is $489,000. The fair value of the bonds as of December 31 of the immediately preceding year (prior measurement date) was $442,000. What is the amount of net income recognized in the 2018 income statement solely as a result of these bonds? Please show work!

Besides taking inventory counts, what other steps or controls can be put into place with regards to inventory? Discuss any physical controls (i.e. non-computer based) as well as automated (i.e. computer-based) controls that can be implemented to safeguard inventories. What is the goal for each control you noted? Please indicate at least 3 controls or actions that can be taken to help minimize loss of inventory and maintain accurate inventory records.

Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets and income statement follow.

Additional Information on Year 2017 Transactions

1. Net income was $155,200.
2. Accounts receivable increased.
3. Inventory increased.
4. Accounts payable increased.
5. Income taxes payable increased.
6. Depreciation expense was $54,000.
7. Purchased equipment for $56,300 cash.
8. Issued 13,200 shares at $5 cash per share.
9. Declared and paid $101,000 of cash dividends.

    
Required:
Prepare a complete statement of cash flows using a spreadsheet; report operating activities under the indirect method. (Enter all amounts as positive values.)

The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The December 31, 2021, balance sheet revealed the following:

Required:
Determine the following 2021 balance sheet items:

1.Current assets

2.Shareholders' equity

3.Long-term assets

4.Long-term liabilities

"Ethical Considerations" Please respond to the following:

• Reflect upon the responsibilities placed on auditors by the PCAOB, and discuss whether those expectations are adequate considering current emerging issues.
• Discuss whether the Sarbanes-Oxley Act should be modified to adjust regulation of corporate executives and auditors in response to issues subsequent to the 2002 scandals.

Do you know why your credit card can be refused even though you are profitable?

Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $370,500 of manufacturing overhead for an estimated allocation base of 950 direct labor-hours. The following transactions took place during the year:

1. Raw materials purchased on account, $270,000.
2. Raw materials used in production (all direct materials), $255,000.
3. Utility bills incurred on account, $73,000 (90% related to factory operations, and the remainder related to selling and administrative activities).
4. Accrued salary and wage costs:

5. Maintenance costs incurred on account in the factory, $68,000
6. Advertising costs incurred on account, $150,000.
7. Depreciation was recorded for the year, $86,000 (75% related to factory equipment, and the remainder related to selling and administrative equipment).
8. Rental cost incurred on account, $111,000 (80% related to factory facilities, and the remainder related to selling and administrative facilities).
9. Manufacturing overhead cost was applied to jobs, $ ? .
10. Cost of goods manufactured for the year, $910,000.
11. Sales for the year (all on account) totaled $1,900,000. These goods cost $940,000according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were:

Required:

1. Prepare journal entries to record the preceding transactions.

2. Post your entries to T-accounts. (Don’t forget to enter the beginning inventory balances above.)

3. Prepare a schedule of cost of goods manufactured.

4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.

4B. Prepare a schedule of cost of goods sold.

5. Prepare an income statement for the year.

The following information is available for Robstown Corporation for 20Y8:

Amount Descriptions

Statement of Cost of Goods Manufactured

a. Prepare the 20Y8 statement of cost of goods manufactured. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Income Statement

b. Prepare the 20Y8 income statement. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

More and more adults are considering commuting to work by bicycle rather than car, but few bicycles currently on the market have been designed with the commuter's needs in mind.

Imagine that you are a marketing executive for a bicycle manufacturer who wants to enter this potentially expanding market with a new lightweight, easy-to-store bike with safety features that combines the speed of a road bike and the sturdiness of a mountain bike. You have moved through most of the stages of new product development, including formulating a national marketing strategy and working through a series of prototypes.

You have decided to test market the bike and marketing program in one or two urban areas with large commuting populations before you begin manufacturing, promoting, and distributing the bike on a national scale.

In an essay, explain the possible advantages and disadvantages of this decision. Describe the information that you would hope to gather through test marketing and explain how having this information would make a national launch more successful.

To ensure immediate feedback, please submit a response between 100 and 1000 words. Essay length alone will not necessarily result in a high or low score.

Discuss proactive and defensive marketing in context to the company position in the hypothetical market structure (that is leader/challenger/follower/nicher). Which approach do you think a company should take based on its market share.    

Make-or-Buy Decision

Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 43% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows:

If Fremont Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 14% of the direct labor costs.

a. Prepare a differential analysis dated September 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If required, round your answers to two decimal places. If an amount is zero, enter "0". Use a minus sign to indicate a loss.

The following costs were incurred for the single product produced during the first year of operations for the Fairfax Manufacturing Company:

During the year, the company produced 35,000 units and sold 25,000 units. The selling price of the company’s product is $46 per unit.

Required:   

1. Assume that the company uses absorption costing:

a. Compute the unit product cost.

b. Prepare an income statement for the year.

2. Assume that the company uses variable costing:   

a. Compute the unit product cost.

b. Prepare an income statement for the year.

Royal Corp’s financial information (in millions, except for Dividends) for Problems 2 and 3:

                                                         2019                2018
Accounts Payable                                           $  7,000           $  6,780

Accounts Receivable                                          5,000               4,685

Additional Paid-in Capital                                  4,000               4,000

Cash                                                                    8,577               5,654

Common Stock                                                   3,107               3,107           

Cost of Goods Sold                                           48,464             47,594

Depreciation                                                       1,315               1,244           

Dividends per share                                              1.53                 1.28

Goodwill                                                           18,051             19,121

Interest Expense                                                 1,200               1,100

Inventory                                                            8,871               8,101

Long-Term Debt                                                     ?                      ?  

Net Property, Plant & Equipment                    26,500             25,311

Notes Payable                                                     4,200               3,770

Research & Development Expense                    1,847               1,747

Retained Earnings                                                   ?                23,045           

Revenue                                                            61,200             59,000

Selling General & Admin Expense                    3,200               3,024

Shares Outstanding                                             1,170               1,280

Treasury Stock                                                   (6,500)           (4,200)

Tax Rate = 30%

Note that a reduction in Goodwill would be similar to Depreciation Expense in a firm’s Operating Cash Flow.

2. See the last page for the financial information of Royal Corporation.

2 A. Construct Income Statements for 2018 and 2019
                                                2019                          2018

2B. Construct Balance Sheets for 2018 and 2019
                                      Assets                                               Liabilities and Owners’ Equity

                             2019              2018                                                             2019                2018


2C. Construct a 2019 Statement of Cash Flows (Goodwill reduction is a noncash expense)

Crimson Tide Company uses a job-order costing system. At Crimson Tide, overhead costs are applied to jobs on the basis of machine-hours.

For the current year, Crimson Tide estimated that its machines would work for a total of 26,000 machine-hours. Tide also estimated for the current year that it would incur $124,800 in manufacturing overhead cost.

The following transactions occurred during the year:

a. Raw materials requisitioned for use in production, $300,000 (80% direct and 20% indirect).

b. The following costs were incurred for employee services:

c. Total insurance costs were $21,000 Note: Of the total insurance cost, 90% relates to factory operations, and 10% relates to selling and administrative activities.

d. In the factory only, heat, power, and water costs incurred in the factory totalled $60,000.

e. Total depreciation recorded for the year was  $71,000 Note: Of the total depreciation recorded 85% relates to factory operations, and 15% relates to selling and administrative activities.

f. Advertising costs incurred was $61,000.

g. According to their job cost sheets, goods that cost $491,000 to manufacture were transferred to the finished goods warehouse.

h. Sales for the year totaled $722,000. The total cost to manufacture these goods according to their job cost sheets was $486,000.

i. The company actually used 51,000 machine-hours during the year.

Required:

1. Determine the underapplied or overapplied overhead for the year. (Round predetermined overhead rate to 2 decimal places.).

2. Prepare an income statement for the year. (Hint: No calculations are required to determine the cost of goods sold before any adjustment for underapplied or overapplied overhead.) (Round predetermined overhead rate to 2 decimal places.)