Schedule of Cash Receipts

Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checks are deposited immediately. The bank charges $0.60 per check; the amount per check averages $75. “Bad” checks that Rosita cannot collect make up 4 percent of check revenue.

During a typical month, Rosita's has sales of $49,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows:

Required:

Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final answers to the nearest whole dollar.

A and B are equal partners in a personal services partnership. Each partner acquired her partnership interest for cash several years ago. None of the partnership’s assets is Section 704(c) property. The partnership has the following balance sheet:

Assets                                                                         Liabilities and Partners’ Capital

                        A.B.                 F.M.V.                                                 A.B.*               F.M.V.

Cash                $13,000           $12,000                       Liabilities:                               $2,000

Capital Assets:                                                                        Capital:

Collectibles     1,000               3,000                           A                      $10,000           15,000

Other               6,000               2,000                           B                      10,000             15,000

Subtotal          7,000               5,000                                                                                      

Receivables     0                      14,000                                                                                    

Total                $20,000           $32,000                                               $20,000           $32,000

Consider the tax consequences to B on her sale in each of the following alternative situations:

1. B sells her interest for $15,000 cash
2. B sells her interest for $16,000 cash and under the partnership agreement all gain from the sale of the collectibles is allocated to B
3. Same as (a), above, except that the collectibles have a basis of $3,000 and a fair market value of $1,000, and the other capital asset has a basis of $4,000 and a fair market value of $4,000.

Statement of cost of goods manufactured for a manufacturing company Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows: Inventories March 1 March 31 Materials $236,400 $217,370 Work in process 490,700 574,550 Finished goods 659,900 693,310 Direct labor $3,940,000 Materials purchased during March 3,001,370 Factory overhead incurred during March: Indirect labor 360,220 Machinery depreciation 236,400 Heat, light, and power 197,000 Supplies 39,280 Property taxes 33,770 Miscellaneous costs 51,450 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Prepare a cost of goods manufactured statement for March. Round your answers to the nearest dollar. Johnstone Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended March 31 $ Direct materials: $ $ $ Factory overhead: $ Total factory overhead Total manufacturing costs incurred during March Total manufacturing costs $ Cost of goods manufactured $ Determine the cost of goods sold for March. Round your answer to the nearest dollar.

At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign.

b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

c. What are the budget implications for Priscilla Wescott?

Priscilla can see that her present plan (will provide/will not provide?) sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be $________? (over/short?) at the end of December, with no time left to adjust.

Please prepare the following

A. An entry for the following transactions of Elirene Mosquera Automobile Shop for the month of October, 2020:

B. Prepare trial balance, income statement and balance sheet.

October 1 Elirene Mosquera invested P420,000 in the business.

4 Purchased shop supplies for cash, P3,000.

6 Purchased additional supplies, P3,000, and shop equipment, P2,500 on credit from Rio Feliciano Trading.

10 Repaired the cargo truck of Jet payapag, P5,600 and collected P3,200.

11 Paid Rio Feliciano Trading, P1,200 as partial settlement of the account due to it.

14 Repaired the stare car of Maileen Flores on credit, P12,000.

19 Paid 1/2 of the amount still due to Rio Feliciano Trading.

20 Bought additional supplies from Mahilom Trading, P10,000 in cash.

25 Rendered service to Erika Bernasol on credit amounting to P1,300.

27 Paid water bill for the month, P2,100.

29 Collected P500 from Erika Bernasol as partial settlement of the account.

30 Paid the remaining balance owed to Rio Feliciano.

31 Paid telephone bill for the month amounting to P3,000.

Project L costs $35,000, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 14%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

Project L costs $65,631.23, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places.

Project L costs $75,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 13%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations.

Project L costs $60,000, its expected cash inflows are $15,000 per year for 9 years, and its WACC is 11%. What is the project's payback? Round your answer to two decimal places.

Project L costs $30,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 10%. What is the project's discounted payback? Round your answer to two decimal places.

1. Dividends on Preferred and Common Stock

   Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $48,000; Year 2, $96,000; Year 3, $216,000; Year 4, $264,000; Year 5, $348,000; and Year 6, $432,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 30,000 shares of cumulative preferred 4% stock, $100 par, and 100,000 shares of common stock, $5 par.

   Required:

   1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".

   						Preferred Dividends								Common Dividends
   Year		Total Dividends				Total				Per Share				Total				Per Share
   Year 1		$   48,000				$				$				$				$
   Year 2		96,000
   Year 3		216,000
   Year 4		264,000
   Year 5		348,000
   Year 6		432,000
   										$								$

   2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places.

   Average annual dividend for preferred	$ per share
   Average annual dividend for common	$ per share

   3. Assuming a market price per share of $204 for the preferred stock and $9 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.

   Round your answers to two decimal places.

   Preferred stock	%
   Common stock	%

Check My Work

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 300 shares of preferred stock and 4,000 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2018:

March 1 Issue 1,100 shares of common stock for $42 per share.
May 15 Purchase 400 shares of treasury stock for $35 per share.
July 10 Reissue 200 shares of treasury stock purchased on May 15 for $40 per share.
October 15 Issue 200 shares of preferred stock for $45 per share.
December 1 Declare a cash dividend on both common and preferred stock of $0.50 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.)
December 31 Pay the cash dividends declared on December 1.

Donnie Hilfiger has the following beginning balances in its stockholders’ equity accounts on January 1, 2018: Preferred Stock, $300; Common Stock, $40; Additional Paid-in Capital, $76,000; and Retained Earnings, $30,500. Net income for the year ended December 31, 2018, is $10,800.

Required:

1. Record each of these transactions.

(I need the most help on the Dividends and Dividends payable amounts from december 1st and december 30th)

6a:

Midgley Corporation makes a product whose direct labor standards are 1.9 hours per unit and $20.00 per hour. In April, the company produced 6,000 units using 10,930 direct labor-hours. The actual direct labor cost was $209,310.

The labor efficiency variance for April is:

$9,400 U

$9,400 F

$9,319 F

$9,428 U

6b:

Midgley Corporation makes a product whose direct labor standards are 0.9 hours per unit and $10.00 per hour. In April, the company produced 5,000 units using 4,260 direct labor-hours. The actual direct labor cost was $41,110.

The labor rate variance for April is:

$1,625 U

$1,490 F

$1,625 F

$1,490 U

6c:

Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.20 per unit. During May, the company purchased 12,400 units of the part for a total of $15,500. Also during May, the company manufactured 3,000 radios, using 9,900 units of part XBEZ52. The direct materials purchases variance is computed when the materials are purchased.

During May, the materials price variance for part XBEZ52 was:

$470 U

$470 F

$620 F

$620 U

Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different flavored cheesecakes to restaurants and the general public. He has just begun his study of accounting, and is a bit confused about the many types of reports he has read about and how they will help him run his business. He asks you to help him clarify what the differences between managerial accounting and financial accounting are. He’s also wondering how to set up his inventory, how to classify the costs of his business, and how to fill in some missing information.

Managerial vs. Financial

Select whether the following characteristics are most often associated with managerial accounting or financial accounting.

Charles has provided some of the costs he expects to incur as follows. Decide on the classifications that could be applied to each of these costs using the table provided. The cost object in each case is the cheesecake.

(Select "Yes" or "No" from the below dropdowns.)

harles found some sample income statements and balance sheets on the Internet, and asked which of them might be most appropriate for a manufacturing business like his. Review income statements A and B, and balance sheets C and D. Determine which income statement and balance sheet would be most appropriate for a manufacturing business like Able Baker Charlie Company.

Income Statement A

Income Statement B

Balance Sheet C

Balance Sheet D

Which income statement is most appropriate for a manufacturing business?

Income statement A

Which balance sheet is most appropriate for a manufacturing business?

Balance sheet D

At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured.

1. Cash Budget

   The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following An accounting device used to plan and control resources of operational departments and divisions.budget information:

   	May		June		July
   Sales	$86,000		$90,000		$95,000
   Manufacturing costs	34,000		39,000		44,000
   Selling and administrative expenses	15,000		16,000		22,000
   Capital expenditures	_		_		80,000

   The company expects to sell about 10% 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 $3,500 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month.

   Current assets as of May 1 include cash of $33,000, marketable securities of $40,000, and accounts receivable of $90,000 ($72,000 from April sales and $18,000 from March sales). Sales on account for March and April were $60,000 and $72,000, respectively. Current liabilities as of May 1 include $6,000 of accounts payable incurred in April for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $14,000 will be made in June. Sonoma’s regular quarterly dividend of $5,000 is expected to be declared in June and paid in July. Management wants to maintain a minimum cash balance of $30,000.

   Required:

   1. Prepare a monthly cash budget and supporting schedules for May, June, and July 2016. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign.

   Sonoma Housewares Inc.
   Cash Budget
   For the Three Months Ending July 31
   	May	June	July
   Estimated cash receipts from:
   Cash sales	$	$	$
   Collection of accounts receivable
   Total cash receipts	$	$	$
   Estimated cash payments for:
   Manufacturing costs	$	$	$
   Selling and administrative expenses
   Capital expenditures
   Other purposes:
   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)	$	$	$

Colah Company purchased $1.5 million of Jackson, Inc. 8% bonds at par on July 1, 2018, with interest paid semi-annually. When the bonds were acquired Colah decided to elect the fair value option for accounting for its investment. At December 31, 2018, the Jackson bonds had a fair value of $1.75 million. Colah sold the Jackson bonds on July 1, 2019 for $1,350,000.

Required: 1. Prepare Colah's journal entries for the following transactions:

a. The purchase of the Jackson bonds on July 1.

b. Interest revenue for the last half of 2018.

c. Any year-end 2018 adjusting entries.

d. Interest revenue for the first half of 2019.

e. Any entry or entries necessary upon sale of the Jackson bonds on July 1, 2019.

2. Fill out the following table to show the effect of the Jackson bonds on Colah’s net income, other comprehensive income, and comprehensive income for 2018, 2019, and cumulatively over 2018 and 2019:

On 21 June 20x1, the Large Mart store in Armidale ordered a new company car for its customer service department (called the “Nerd Herd”) from a car dealer in Brisbane for $30,000. The car was delivered to Large Mart on 20 June 20x1. On that day, Large Mart sent the car to one of its suppliers who painted a large “Large Mart” sign on the side of the car. The Large Mart sign on the car cost $500 and was paid in cash on 25 June 20x1. The car was returned to Large Mart on 25 June 20x1 and Large Mart started to use the car on that day. Large paid for the car using the CEO’s credit card, and the car dealer charged a transaction fee of $450 for the use of that credit card. Large Mart will use the new car for 8 years and depreciate the car using the straight-line depreciation. Large Mart expects that the car will have a residual value of zero at the end of its useful life. Required: a) Determine if the cost of painting the “Large Mart” sign on the car and the credit card payment surcharge influence the cost of the car when it is first recognised as an asset in the Large Mart accounts, AND provide an in-depth reflection of the reasons that you have used to make this decision. b) Provide all journal entries that are necessary in the books of Large Mart to account for the purchase of the car during June 20x1 – ASSUMING that Large Mart records all Credit Card transactions as “Cash at Bank” payments. (1 mark) c) Provide all journal entries that are necessary in the books of Large Mart to account for the depreciation of the car for the month of June 20x1, AND provide a detailed outline of your calculations.

Periodic Inventory by Three Methods; Cost of Merchandise Sold

The units of an item available for sale during the year were as follows:  

Jan 1. Inventory- 50 units at $94
Mar 10. Purchase- 70 units at $106
Aug 30. Purchase- 20 units at $114
Dec 12. Purchase- 60 units at $120

There are 60 units of the item in the physical inventory at December 31. The periodic inventory system is used.  

Determine the inventory cost and the cost of merchandise sold by three methods.

First-in, first-out (FIFO) :
Merchandise Inventory=
Merchandise Sold=

Last-in, first-out (LIFO) :
Merchandise Inventory=
Merchandise Sold=

Weighted average cost :
Merchandise Inventory=
Merchandise Sold=