On January 1, Alan King decided to deposit $58,900 in a savings
account that will provide funds four years later to send his son to
college. The savings account will earn 7% annually. Any interest
earned will be added to the fund at year-end (rather than
withdrawn). (FV of $1, PV of $1, FVA of $1, and PVA of $1)
(Use the appropriate factor(s) from the tables
provided.)
Required:
1. How much will be available in four years? (Round your answer to nearest whole dollar.)
2. Prepare the journal entry that Alan should make on January 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3. What is the total interest for the four years? (Round your answer to nearest whole dollar.)
4. Prepare the journal entry that Alan should make on December 31 of the first year and December 31 of the second year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answer to nearest whole dollar.)
In: Accounting
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:
| Variable costs per unit: | ||
| Manufacturing: | ||
| Direct materials | $ | 23 |
| Direct labor | $ | 10 |
| Variable manufacturing overhead | $ | 5 |
| Variable selling and administrative | $ | 4 |
| Fixed costs per year: | ||
| Fixed manufacturing overhead | $ | 240,000 |
| Fixed selling and administrative expenses | $ | 90,000 |
During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $57 per unit.
Required:
1. Assume the company uses variable costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
2. Assume the company uses absorption costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1.
In: Accounting
Chapter 6, question 2
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $920. Selected data for the company’s operations last year follow:
| Units in beginning inventory | 0 | |
| Units produced | 275 | |
| Units sold | 260 | |
| Units in ending inventory | 15 | |
| Variable costs per unit: | ||
| Direct materials | $ | 110 |
| Direct labor | $ | 320 |
| Variable manufacturing overhead | $ | 40 |
| Variable selling and administrative | $ | 15 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 77,000 |
| Fixed selling and administrative | $ | 33,000 |
The absorption costing income statement prepared by the company’s accountant for last year appears below:
| Sales | $ | 239,200 |
| Cost of goods sold | 195,000 | |
| Gross margin | 44,200 | |
| Selling and administrative expense | 36,900 | |
| Net operating income | $ | 7,300 |
Required:
1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?
2. Prepare an income statement for last year using variable costing.
In: Accounting
Budgeted Income Statement and Balance Sheet
As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2017, the following tentative trial balance as of December 31, 2016, is prepared by the Accounting Department of Webster Publishing Co.:
| Cash | $117,900 | ||
| Accounts Receivable | 218,100 | ||
| Finished Goods | 45,800 | ||
| Work in Process | 30,500 | ||
| Materials | 50,200 | ||
| Prepaid Expenses | 3,700 | ||
| Plant and Equipment | 555,300 | ||
| Accumulated Depreciation—Plant and Equipment | $238,800 | ||
| Accounts Payable | 168,800 | ||
| Common Stock, $10 par | 350,000 | ||
| Retained Earnings | 263,900 | ||
| $1,021,500 | $1,021,500 |
Factory output and sales for 2017 are expected to total 28,000 units of product, which are to be sold at $90 per unit. The quantities and costs of the inventories at December 31, 2017, are expected to remain unchanged from the balances at the beginning of the year.
Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:
| Estimated Costs and Expenses | ||||
| Fixed (Total for Year) |
Variable (Per Unit Sold) |
|||
| Cost of goods manufactured and sold: | ||||
| Direct materials | _ | $23 | ||
| Direct labor | _ | 7 | ||
| Factory overhead: | ||||
| Depreciation of plant and equipment | $28,000 | _ | ||
| Other factory overhead | 8,700 | 4 | ||
| Selling expenses: | ||||
| Sales salaries and commissions | 100,500 | 11.5 | ||
| Advertising | 84,000 | _ | ||
| Miscellaneous selling expense | 7,300 | 2 | ||
| Administrative expenses: | ||||
| Office and officers salaries | 66,100 | 5.5 | ||
| Supplies | 3,400 | 1 | ||
| Miscellaneous administrative expense | 1,800 | 1.5 | ||
Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $199,900 on 2017 taxable income will be paid during 2017. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $150,000 cash in May.
Required:
In: Accounting
Selected financial statement information and additional data for
Carla Vista Co. is presented below.
| December 31 | ||||||
| 2019 | 2020 | |||||
| Cash | $41,000 | $80,800 | ||||
| Accounts receivable (net) | 83,000 | 141,000 | ||||
| Inventory | 168,000 | 202,000 | ||||
| Land | 58,000 | 18,000 | ||||
| Equipment | 502,000 | 788,000 | ||||
| TOTAL | $852,000 | $1,229,800 | ||||
| Accumulated depreciation | $85,000 | $117,000 | ||||
| Accounts payable | 50,000 | 86,000 | ||||
| Notes payable - short-term | 67,000 | 31,000 | ||||
| Notes payable - long-term | 167,000 | 302,000 | ||||
| Common stock | 423,000 | 491,000 | ||||
| Retained earnings | 60,000 | 202,800 | ||||
| TOTAL | $852,000 | $1,229,800 | ||||
| Additional data for 2020: | ||
| 1. | Net income was $224,000. | |
| 2. | Depreciation was $32,000. | |
| 3. | Land was sold at its original cost. | |
| 4. | Dividends of $81,200 were paid. | |
| 5. | Equipment was purchased for $83,000 cash. | |
| 6. | A long-term note for $203,000 was used to pay for an equipment purchase. | |
| 7. | Common stock was issued to pay a $68,000 long-term note payable. | |
Prepare a statement of cash flows for the year ending December 31,
2020. (Show amounts that decrease cash flow with either
a - sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
In: Accounting
On January 1 of this year, Shannon Company completed the following transactions (assume a 8% annual interest rate): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
In: Accounting
An investment will pay $20,500 at the end of the first year, $30,500 at the end of the second year, and $50,500 at the end of the third year. (FV of $1, PV of $1, FVA of $1, and PVA of $1)(Use the appropriate factor(s) from the tables provided.)
Determine the present value of this investment using a 8% annual interest rate. (Round your answer to nearest whole dollar.)
In: Accounting
QUESTION: What are the IDENTIFY CHARACTERISTICS that define successful budgeting processes and best practices?
Instructions:
(1). MUST Use Strategic Planning & Budgeting strong vocabularies
(2). MUST Include Citations and References. Original work - No plagiarism allow
In: Accounting
Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. Round your answers to the nearest cent. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.)
Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.
In: Accounting
Diane Corporation is preparing its year-end balance sheet. The
company records show the following selected amounts at the end of
the year:
| Total assets | $ | 590,000 | |
| Total noncurrent assets | 354,000 | ||
| Liabilities: | |||
| Notes payable (8%, due in 5 years) | 20,000 | ||
| Accounts payable | 54,000 | ||
| Income taxes payable | 12,000 | ||
| Liability for withholding taxes | 5,000 | ||
| Rent revenue collected in advance | 10,000 | ||
| Bonds payable (due in 15 years) | 99,000 | ||
| Wages payable | 10,000 | ||
| Property taxes payable | 6,000 | ||
| Note payable (10%, due in 6 months) | 13,000 | ||
| Interest payable | 500 | ||
| Common stock | 290,000 | ||
In: Accounting
The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows: CDG PARTNERSHIP Balance Sheet At December 1, 20X6 Assets Cash $ 32,500 Accounts Receivable (net) 90,000 Inventories 115,000 Property, Plant and Equipment (net) 330,000 Total Assets $ 567,500 Liabilities and Capital Liabilities: Accounts Payable $ 292,500 Capital: Carlos, Capital $ 135,000 Dan, Capital 65,000 Gail, Capital 75,000 Total Capital 275,000 Total Liabilities and Capital $ 567,500 Additional Information Each partner’s personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow: Carlos Dan Gail Personal assets $ 265,000 $ 315,000 $ 365,000 Personal liabilities (237,500 ) ( 232,500 ) (343,900 ) Personal net worth $ 27,500 $ 82,500 $ 21,100 Carlos, Dan, and Gail share profits and losses in the ratio 20:40:40. CDG sold all noncash assets on December 10, 20X6, for $273,500.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Accounting
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:
| April | May | June | Total | |
| Budgeted sales (all on account) | $440,000 | $640,000 | $220,000 | $1,300,000 |
From past experience, the company has learned that 30% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $370,000, and March sales totaled $400,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
2. What is the accounts receivable balance on June 30th?
In: Accounting
In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits.
profits.
| Case | ||||
| A | B | |||
| Division X: | ||||
| Capacity in units | 90,000 | 106,000 | ||
| Number of units being sold to outside customers | 90,000 | 81,000 | ||
| Selling price per unit to outside customers | $ | 54 | $ | 30 |
| Variable costs per unit | $ | 28 | $ | 13 |
| Fixed costs per unit (based on capacity) | $ | 7 | $ | 6 |
| Division Y: | ||||
| Number of units needed for production | 25,000 | 25,000 | ||
| Purchase price per unit now being paid to an outside supplier |
$ | 50 | $ | 26 |
1. Refer to the data in case A above. Assume in this case that $1 per unit in variable selling costs can be avoided on intracompany sales.
a. What is the lowest acceptable transfer price from the perspective of the selling division?
b. What is the highest acceptable transfer price from the perspective of the buying division?
c. What is the range of acceptable transfer prices (if any) between the two divisions? If the managers are free to negotiate and make decisions on their own, will a transfer probably take place?
2. Refer to the data in case B above. In this case, there will be no savings in variable selling costs on intracompany sales.
a. What is the lowest acceptable transfer price from the perspective of the selling division?
b. What is the highest acceptable transfer price from the perspective of the buying division?
c. What is the range of acceptable transfer prices (if any) between the two divisions? If the managers are free to negotiate and make decisions on their own, will a transfer probably take place?
In: Accounting
Exact Photo Service purchased a new color printer at the
beginning of Year 1 for $39,700. The printer is expected to have a
four-year useful life and a $3,700 salvage value. The expected
print production is estimated at $1,770,500 pages. Actual print
production for the four years was as follows:
| Year 1 | 550,700 | ||
| Year 2 | 477,500 | ||
| Year 3 | 375,300 | ||
| Year 4 | 390,000 | ||
| Total | 1,793,500 | ||
The printer was sold at the end of Year 4 for $4,100.
b. Compute the depreciation expense for each of the four years, using units-of-production depreciation.
Depreciation Expense
Year 1
Year 2
Year 3
Year 4
Total accumulated depreciation$0
Exact Photo Service purchased a new color printer at the
beginning of Year 1 for $39,700. The printer is expected to have a
four-year useful life and a $3,700 salvage value. The expected
print production is estimated at $1,770,500 pages. Actual print
production for the four years was as follows:
| Year 1 | 550,700 | ||
| Year 2 | 477,500 | ||
| Year 3 | 375,300 | ||
| Year 4 | 390,000 | ||
| Total | 1,793,500 | ||
The printer was sold at the end of Year 4 for $4,100.
c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.
DDB =
Units-of-production=
In: Accounting
Requirements
Identify a macro theme of accounting that you would like to investigate.
Explain why you selected the topic. .
Perform a brainstorming exercise to delimit the topic.
Brainstorming should include at least 10 concepts or ideas.
Specifies what the central theme is and what the secondary themes are
In: Accounting