chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2017. As of that date, Abernethy has the following trial balance:

During 2017, Abernethy reported net income of $99,000 while declaring and paying dividends of $12,000. During 2018, Abernethy reported net income of $151,250 while declaring and paying dividends of $53,000.

Assume that Chapman Company acquired Abernethy’s common stock for $855,330 in cash. Assume that the equipment and long-term liabilities had fair values of $464,600 and $134,620, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment.

Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a) Prepare entry S to eliminate stockholders' equity accounts of subsidiary

(b) Prepare entry A to recognize allocations determined above in connection with acquisition date fair values
(c) prepare entry I to eliminate intra-entity dividend declarations recorded by parent as income
(d) Prepare entry E to recognize current year amortization expense
e) prepare entry C* to convert parent company figures to equity method by recognizing subsidiary increase in book value for prior year (99,000 net income less 12,000 dividend declaration) and excess amortizations for that period 12,390)
(f) Prepare entry S to eliminate beginning stockholders' equity of subsidiary - the retained earnings account has been adjusted for 2017 income and dividends. Entry *C is not needed because equity method was applied.

(g) Prepare entry A to recognize allocations relating to investment - balances shown here are as of beginning current year (original allocation less excess amortizations for the prior period).

(h) Prepare entry I to eliminate intra-entity dividend declarations by parent as income

(i) Prepare entry E to recognize 2018 amortization expenses

(j) Prepare entry E to recognize current year amortization expense

Q)What is normal spoilage and how is it dealt with in process costing

Q)Explain the importance of opportunity costs for decision making.

David’s basis in the Jimsoo Partnership is $57,000. In a proportionate liquidating distribution, David receives cash of $7,800 and two capital assets: (1) land 1 with a fair market value of $21,600 and a basis to Jimsoo of $17,200, and (2) land 2 with a fair market value of $10,600 and a basis to Jimsoo of $17,200. Jimsoo has no liabilities.

c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to David (amount and character of gain or loss)?

c2. What is David's basis in distributed assets?

1.) Littlefield Industries purchased a bond on September 1 of the current year for​ $200,000 and classified the investment as trading debt. The market value of the trading debt investment at​ year-end is​ $196,000. The adjustment is​ ______.

2.) On January​ 1, 2019, Commercial Equipment Sales issued $36,000 in bonds for $19,700. These are six−year bonds with a stated interest rate of 9​%, and pay semiannual interest on June 30 and December 31. Commercial Equipment Sales uses the straight-line method to amortize the Bond Discount. What amount is debited to Interest Expense on June​ 30, 2019?

3.) A $$33,000​, three- ​month, 1212​% note payable was issued on December​ 1, 2018. What is the amount of accrued interest on December​ 31, 2018?​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

1. Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

   Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows:

   	Standard Costs		Actual Costs
   Direct materials	238,000 lbs. at $5.20		235,600 lbs. at $5.00
   Direct labor	17,500 hrs. at $18.10		17,900 hrs. at $18.50
   Factory overhead	Rates per direct labor hr.,
   	based on 100% of normal
   	capacity of 18,260 direct
   	labor hrs.:
   		Variable cost, $2.90	$50,240 variable cost
   		Fixed cost, $4.60	$83,996 fixed cost

   Each unit requires 0.25 hour of direct labor.

   Required:

   a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   Direct Materials Price Variance	$fill in the blank 1
   Direct Materials Quantity Variance	$fill in the blank 3
   Total Direct Materials Cost Variance	$fill in the blank 5

   b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   Direct Labor Rate Variance	$fill in the blank 7
   Direct Labor Time Variance	$fill in the blank 9
   Total Direct Labor Cost Variance	$fill in the blank 11

   c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   Variable factory overhead controllable variance	$fill in the blank 13
   Fixed factory overhead volume variance	$fill in the blank 15
   Total factory overhead cost variance	$fill in the blank 17

Financial Accounting 10th Edition, Weygandt - Problem CT9-1

The financial statements of Apple Inc. are presented in Appendix A. Instructions for accessing and using the company's complete annual report, including the notes to the financial statements, are also provided in Appendix A.

Refer to Apple's financial statements and answer the following questions:

a) What was the total cost and book value of property, plant, and equipment at September 26, 2015?

b) What was the amount of depreciation and amortization expense for each of the three years 2013-2015?

c) Using the statement of cash flows, what is the amount of capital spending in 2015 and 2014? (Ignore business acquisitions and intangible assets)

d) Where does the company disclose its intangible assets, and what types of intangibles did it have at September 26, 2015?

Problem 5-4A (Part Level Submission) Wolford Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balance. Accounts Payable $ 38,056 Accounts Receivable 24,424 Accumulated Depreciation—Equipment 96,560 Cash 11,360 Common Stock 49,700 Cost of Goods Sold 872,306 Freight-Out 8,804 Equipment 222,940 Depreciation Expense 19,170 Dividends 17,040 Gain on Disposal of Plant Assets 2,840 Income Tax Expense 14,200 Insurance Expense 12,780 Interest Expense 7,100 Inventory 37,204 Notes Payable 61,770 Prepaid Insurance 8,520 Advertising Expense 47,570 Rent Expense 48,280 Retained Earnings 20,164 Salaries and Wages Expense 166,140 Sales Revenue 1,283,680 Salaries and Wages Payable 8,520 Sales Returns and Allowances 28,400 Utilities Expense 15,052 Additional data: Notes payable are due in 2021. Collapse question part (a1) Correct answer. Your answer is correct. Prepare a multiple-step income statement. (List other revenues before other expenses.) WOLFORD DEPARTMENT STORE Income Statement Entry field with correct answer Entry field with correct answer Entry field with correct answer Sales Revenue $Entry field with correct answer 1,283,680 Entry field with correct answer: Entry field with correct answer Sales Returns and Allowances Entry field with correct answer 28,400 Entry field with correct answer Entry field with correct answer 1,255,280 Entry field with correct answer Cost of Goods Sold Entry field with correct answer 872,306 Entry field with correct answer Entry field with correct answer 382,974 Entry field with correct answer Entry field with correct answer Advertising Expense $Entry field with correct answer 47,570 Entry field with correct answer Freight-Out Entry field with correct answer 8,804 Entry field with correct answer Depreciation Expense Entry field with correct answer 19,170 Entry field with correct answer Utilities Expense Entry field with correct answer 15,052 Entry field with correct answer Salaries and Wages Expense Entry field with correct answer 166,140 Entry field with correct answer Rent Expense Entry field with correct answer 48,280 Entry field with correct answer Insurance Expense Entry field with correct answer 12,780 Entry field with correct answer Entry field with correct answer 317796 Entry field with correct answer Entry field with correct answer 65178 Entry field with correct answer Entry field with correct answer Gain on Disposal of Plant Assets Entry field with correct answer 2,840 Entry field with correct answer Entry field with correct answer Interest Expense Entry field with correct answer 7,100 Entry field with correct answer Entry field with correct answer 60,918 Entry field with correct answer Income Tax Expense Entry field with correct answer 14,200 Entry field with correct answer $Entry field with correct answer 46,718 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used Collapse question part (a2) Prepare a retained earnings statement. (List items that increase retained earnings first.) WOLFORD DEPARTMENT STORE Retained Earnings Statement $ : : $

High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates:

Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job:

Required:

1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.

2. Compute the total overhead cost applied to Job 205.

3-a. What would be the total manufacturing cost recorded for Job 205?

3-b. If the job contained 40 units, what would be the unit product cost?

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2020.

The following transactions occurred during January 2021:

1. & 3. Enter the beginning balances as of January 1, 2021 and post the entries to T-accounts.

4. Prepare an unadjusted trial balance as of January 31, 2021.

Question 1 Tap Sdn Bhd bought an asset on 5 April 2017 at a cost of RM180,000. The asset had an expected useful life of 10 years and an expected residual value of RM20,000. The company applies straight-line depreciation to this category of non-current assets. It also charges a full year depreciation in the year of acquisition and no depreciation in the year of disposal. Its financial year ends on 31 December.

At 31 December 2018, the company revalued the asset to RM240,000. Its expected remaining useful life is now 8 years, but its expected residual value is zero.

Required:

(a) Show in T account the accounting entries required to record the revaluation of the asset on 31 December 2018. [4 marks]

(b) The asset was sold on 12 February 2020 for RM235,000. Calculate the gain or loss on disposal reported in the income statement for Year 2020, and show the total effect on the disposal on the retained earnings of the company. Ignore taxation. [4 marks]

XY Corporation’s statement of financial position at the end of 2016 included the following items.

Land $ 30,000

Buildings 120,000

Equipment 90,000

Accum. depr.—buildings (30,000)

Accum. depr.—equipment (11,000)

Patents 40,000

Current assets 235,000

Total $474,000

Current liabilities 150,000

Bonds payable $100,000

Share capital—ordinary 180,000

Retained earnings 44,000

Total $474,000

The following information is available for 2017.

1. Net income was $55,000.

2. Equipment (cost $20,000 and accumulated depreciation $8,000) was sold for $9,000.

3. Depreciation expense was $4,000 on the building and $9,000 on equipment.

4. Patent amortization was $2,500.

5. Current assets other than cash increased by $25,000. Current liabilities increased by $13,000.

6. An addition to the building was completed at a cost of $27,000.

7. A long-term investment in debt securities was purchased for $16,000.

8. Bonds payable of $50,000 were issued.

9. Cash dividends of $25,000 were declared and paid.

10. Treasury shares were purchased at a cost of $11,000.

Instructions:

1. Prepare a statement of financial position at December 31, 2017.
2. Prepare a statement of cash flows for 2017.
3. Discuss the uses and limitations of the statement of financial position and the statement of cash flows.

Exercise 11-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 12,640,000 $ 35,800,000 $ 20,640,000 Average operating assets $ 3,160,000 $ 7,160,000 $ 5,160,000 Net operating income $ 606,720 $ 608,600 $ 577,920 Minimum required rate of return 10.00 % 10.50 % 11.20 % Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity?

The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2017:

1. Beginning balances were: Cash, $95,000; Taxes Receivable, $192,500; Accounts Payable, $53,750; and Fund Balance, $233,750.
2. The budget was passed. Estimated revenues amounted to $1,250,000 and appropriations totaled $1,247,000. All expenditures are classified as General Government.
3. Property taxes were levied in the amount of $925,000. All of the taxes are expected to be collected before February 2018.
4. Cash receipts totaled $895,000 for property taxes and $302,500 from other revenue.
5. Contracts were issued for contracted services in the amount of $98,750.
6. Contracted services were performed relating to $88,500 of the contracts with invoices amounting to $86,500.
7. Other expenditures amounted to $972,500.
8. Accounts payable were paid in the amount of $1,107,500.
9. The books were closed.

Required:
a. Prepare journal entries for the above transactions.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund.
c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation.

SAS Computers owns a patent on a computer processor. The processor was developed and capitalized at a cost of €2,100,000 in the beginning of 2015. It was expected to be economically useful for 7 years and have no residual value. At the beginning of 2018, a new processor was developed, making the old processor worth €900,000 (independent appraiser) with €200,000 total cost to sell. The present value of the processor’s future cash flows, given the development of the newer processor, is estimated to be €870,000. At this point, it is expected to have a useful life of 4 years with no residual value. Is the processor impaired in 2018? If it is impaired, prepare the to record the loss. Also prepare the journal entry for amortization in 2018. Show your work.

On December 31, 2017, Ainsworth, Inc., had 800 million shares of common stock outstanding. Twenty five million shares of 6%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2018. On April 30, 2018, Ainsworth purchased 30 million shares of its common stock as treasury stock. Twelve million treasury shares were sold on August 31. Ainsworth issued a 5% common stock dividend on June 12, 2018. No cash dividends were declared in 2018. For the year ended December 31, 2018, Ainsworth reported a net loss of $165 million, including an after-tax loss from discontinued operations of $450 million. Required: 1. Compute Ainsworth's net loss per share for the year ended December 31, 2018. 2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2018. 3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2018 and 2017 comparative income statements. Assume EPS was reported in 2017 as $0.65, based on net income (no discontinued operations) of $520 million and a weighted-average number of common shares of 800 million.