Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

Bob Sample opened the Campus Laundromat on September 1, 2017. During the first month of operations, the following transactions occurred. Sep. 1 Bob invested $20,000 cash in the business. Sep. 2 The company paid $1,000 cash for store rent for September. Sep. 3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month, 12% note payable Sep. 4 Paid $1,200 for a one-year accident insurance policy. Sep. 10 Received a bill from the Daily News for online advertising of the opening of the laundromat $200. Sep. 20 Bob withdrew $700 cash for personal use. Sep. 30 The company determined that cash receipts for laundry services for the month were $6,200. Question1 Journalize the September transactions. (Use J1 for the journal page number.) (in General journal table) Question2. Open ledger accounts and post the September transactions Question3. Prepare a trial balance at September 30, 2017

Please answer ALL of the questions!

At the end of the year, a company offered to buy 4,100 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $18.00 each. The following information relates to the 68,400 units of the product that X Company made and sold to its regular customers during the year:

Fixed cost of goods sold for the year were $151,848, and fixed period costs were $78,660. Variable period costs include selling commissions equal to 4% of revenue.

6. Profit on the special order is

7. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.87 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit?

8. There is concern that regular customers will find out about the special order, and X Company's regular sales will fall by 700 units. As a result of these lost sales, X Company's profits would fall by

X Company currently makes a part and is considering buying it from a company that has offered to supply it for $19.45 per unit. This year, per-unit production costs to produce 54,000 units were:

$167,400 of the total overhead costs were variable; $39,960 of the fixed overhead costs cannot be avoided even if X Company buys the part. If the company buys the part, the resources that are used to make it cannot be used for anything else. Production next year is expected to increase to 57,400 units.

If X Company continues to make the part instead of buying it, it will save _______

The Perez Company has the opportunity to invest in one of two mutually exclusive machines that will produce a product it will need for the foreseeable future. Machine A costs $11 million but realizes after-tax inflows of $5 million per year for 4 years. After 4 years, the machine must be replaced. Machine B costs $13 million and realizes after-tax inflows of $3.5 million per year for 8 years, after which it must be replaced. Assume that machine prices are not expected to rise because inflation will be offset by cheaper components used in the machines. The cost of capital is 14%.

1. Using the replacement chain approach to project analysis, by how much would the value of the company increase if it accepted the better machine? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.
   $ ________ million

2. What is the equivalent annual annuity for each machine? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to two decimal places.

   Machine A	$ ________ million
   Machine B	$ ________ million

Blackwelder Factory produces two similar products-small lamps and desk lamps. The total plant overhead budget is $529,000 with 540,000 estimated direct labor hours. It is further estimated that small lamp production will require 264,000 direct labor hours and desk lamp production will need 276,000 direct labor hours.

Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to small lamp production if actual direct hours for the period is 191,000?

a.$187,180

b.$731,183

c.$366,083

d.$506,000

2)

Blackwelder Factory produces two similar products-small lamps and desk lamps. The total plant overhead budget is $582,000 with 471,000 estimated direct labor hours. It is further estimated that small lamp production will require 267,000 direct labor hours and desk lamp production will need 204,000 direct labor hours.

Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to desk lamp production if actual direct hours for the period is 178,000.

a.$220,720

b.$507,824

c.$873,000

d.$361,280

3)

Challenger Factory produces two similar products - regular widgets and deluxe widgets. The total plant overhead budget is $563,000 with 350,200 estimated direct labor hours. It is further estimated that deluxe widget production will need 5 direct labor hours for each unit and regular widget production will require 6 direct labor hours for each unit.

Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Challenger Factory allocate to regular widget production if budgeted production for the period is 75,000 units and actual production for the period is 104,800 units?

a.$1,012,368

b.$842,410

c.$93,833

d.$168,482

Many mortgage companies have included in their mortgage contracts the right to non-judicial foreclosure, meaning that if a mortgagee becomes delinquent under the terms of the note, the mortgage company can foreclose on the property without having to sue the mortgagee and obtain a judgment for judicial foreclosure. Do you think this nonjudicial foreclosure provision is fair? Is it good for the economy/business? Should it be allowed? Why or why not? Please remember to comment upon at least two other students' posts in addition to posting your own comment.

In downtown Metropolis, Mr. Kent owns several small office buildings in which he rents space to various professionals. Last year he sold two of his rental buildings. Mr. Kent sold one of the buildings, Lois Lane Office Suites, for $450,000; Mr. Kent’s basis in Lois Lane Office Suites was $400,000. Mr. Kent sold the second building, Kryptonite Professional Center, for $470,000. Mr. Kent’s basis in Kryptonite Professional Center was $540,000. He had owned both buildings for several years. Depreciation claimed by Mr. Kent was not accelerated or otherwise subject to any recapture rules.

(a) What is the character of Mr. Kent’s gains and losses? Assume no other transactions during the year.

(b) What is the result if Mr. Kent’s basis in Kryptonite Professional Center was $490,000? (all other information remains the same as originally stated)

(c) What is the result if Mr. Kent’s basis in Lois Lane Office Suites was $490,000? (all other information remains the same as originally stated)

(d) What is the result if Lois Lane Office Suites was held for 11 months at the time of the sale? (all other information remains the same as originally stated)

Research a publicly traded company of your choice using the latest financial statements and announcement of quarterly or annual dividends per share, an announcement of a stock split of one to two and the purchase of treasury stock. If all three events did not take place, imagine, based on the latest financial statements of the company, that all three events did take place in the company, and build a scenario and projections as follows:

1. Discuss the primary reporting alternatives the company has for the repurchase of its own shares. How would each option affect total shareholders’ equity?
2. How would a stock split of one for two be accounted for, how would it affect shareholder’s equity, and why?
3. How would the company account for the cash dividends from declaration to the date of payment? What are the important dates for dividends payment and how would it affect the balance sheet, and why?

In this question, we will explore the irrelevance of dividend policy.

Suppose XYZ Inc currently has 1 million shares outstanding, and XYZ expects to make $1 million per year in perpetuity, all of which is paid out in dividends. Assume the relevant discount rate is 10%. (Ignore taxes and transaction costs, and assume the markets are efficient.Use the DDM to value the shares)

a.What is the value of one share of XYZ Inc? (Assume the next dividend payment is one year from today.)

b.Now assume XYZ Inc plans to change its dividend policy as follows: the company will skip the next dividend payment and instead it will repurchase $1 million worth of shares. In year 2, and in all subsequent years, the dividends will resume and all the income will be paid out as dividends. What is the current share price under this policy? Provide an explicit calculation of the share price given the new dividend payment stream.(Hint: Let P1 be the share price at time 1, immediately before the share repurchase. Calculate the number of shares repurchased, and then find the dividends per share for years 2 and beyond. Discount all this back in order to find the current share price.) Do not assume the M&M proposition that the dividend policy is irrelevant. Essentially, this question is meant to prove that fact.

c.Suppose you purchase 100 shares today, and sell them 2 years from now, immediately after the year 2 dividend is paid. What is your total profit under each dividend policy? Does this difference in profit violate the indifference of dividend policy? Expla

Service Department Charges

In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $75,584, and the Purchasing Department had expenses of $25,960 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.

b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. If required, round your answers to two decimal places. Do not round your interim calculations, round your answers to two decimal places, if required.

c. Residential's service department charge is   than the other two divisions because Residential is a   user of service department services. Residential has many employees on a weekly payroll, which translates into a   number of check-issuing transactions.

Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $111,600 of manufacturing overhead for an estimated allocation base of $93,000 direct material dollars to be used in production. The company has provided the following data for the just completed year:

Required:

1. Compute the predetermined overhead rate for the year.

2. Compute the amount of underapplied or overapplied overhead for the year.

3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials.

4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer.

5. Assume that the $39,000 ending balance in Work in Process includes $8,800 of direct materials. Given this assumption, supply the information missing below:

Smith Corporation is reviewing the following transactions for its year-ended December 31, 2015.

For each item listed, indicate the:

A. Name of the account to use.

B. Whether it is current or long-term, asset or liability.

C. The amount.

1. On December 15, 2015 the company declared a $2.00 per share dividend on 40,000 shares of

     common stock outstanding, to be paid on January 5, 2013

   2. Credit sales for year amounted to $10,000,000. Smith estimates its Allowance for Doubtful

        Accounts as 3% of credit sales.

   3. At December 31, bonds payable of $100,000,000 are outstanding. The bonds pay 12% interest

        every September 30 and mature in installments of $25,000,000 every September 30.

   4. Bonuses to key employees based on net income for 2015 are estimated to be $150,000.

   5. Included in long-term investments are 10-year U.S. Treasury bonds that mature March 31, 2016.

       The bonds were purchased November 20, 2015.

   6. The accounts receivable account includes $20,000 due in three years from employees.

   7. The property, plant, and equipment account is stated at cost, except that it includes a parcel of

       land purchased for investment purposes at a cost of $40,000. Because of rising land prices, the

       value of the land has been written up to $60,000. The company has an independent appraisal

        that attests to this amount.

   8. Current liabilities include $50,000 for long-term debt that is due in three months. The company

        has received a firm commitment to refinance the debt for five years and intends to do so.

9. Investments in marketable securities include $20,000 in short-term, high-grade commercial

       paper, which matures in 60 days.

Direct Method

Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:

The company has decided to simplify its method of allocating support service costs by switching to the direct method.

Required:

1. Allocate the costs of the support departments to the producing departments using the direct method. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. Use the rounded values for subsequent calculations.

Allocation ratios:

2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)

Sales Forecast and Flexible Budget

Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,130 for the Sleepeze, 11,920 for the Plushette, and 5,500 for the Ultima. Gene Dixon, vice president of sales, has provided the following information:

1. Salaries for his office (including himself at $64,200, a marketing research assistant at $39,950, and an administrative assistant at $23,900) are budgeted for $128,050 next year.
2. Depreciation on the offices and equipment is $18,150 per year.
3. Office supplies and other expenses total $22,500 per year.
4. Advertising has been steady at $21,650 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 10 percent of first-year Ultima sales for a print and television campaign.
5. Commissions on the Sleepeze and Plushette lines are 3 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores.
6. Last year, shipping for the Sleepeze and Plushette lines averaged $45 per unit sold. Gene expects the Ultima line to ship for $80 per unit sold since this model features a larger mattress.

Required:

1. Suppose that Gene is considering three sales scenarios as follows:

Prepare a revenue budget for the Sales Division for the coming year for each scenario.

2. Prepare a flexible expense budget for the Sales Division for the three scenarios above. If required, round answers to the nearest dollar.