Journal Entries for Credit Losses At the beginning of the year, Whitney Company had the following accounts on its books:

The following transactions, among others, occurred during the year:

Required

a. Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment.
b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.

a.

b.

What are the various types of taxes used by governments? Who are the actors that make funding decisions? How are they accountable to the public? How does the public influence this process? Why is taxing and spending so controversial?

Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter:

1. Budgeted monthly absorption costing income statements for April–July are:

*Includes $22,000 of depreciation each month.

2. Sales are 20% for cash and 80% on account.

3. Sales on account are collected over a three-month period with 10% collected in the month of sale; 70% collected in the first month following the month of sale; and the remaining 20% collected in the second month following the month of sale. February’s sales totaled $205,000, and March’s sales totaled $245,000.

4. Inventory purchases are paid for within 15 days. Therefore, 50% of a month’s inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable at March 31 for inventory purchases during March total $104,300.

5. Each month’s ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is $71,400.

6. Dividends of $29,000 will be declared and paid in April.

7. Land costing $37,000 will be purchased for cash in May.

8. The cash balance at March 31 is $51,000; the company must maintain a cash balance of at least $40,000 at the end of each month.

9. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $200,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter

The company’s president is interested in knowing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory assumptions as follows:

1. Sales continue to be 20% for cash and 80% on credit. However, credit sales from April, May, and June are collected over a three-month period with 25% collected in the month of sale, 65% collected in the month following sale, and 10% in the second month following sale. Credit sales from February and March are collected during the second quarter using the collection percentages specified in the main section.

2. The company maintains its ending inventory levels for April, May, and June at 15% of the cost of merchandise to be sold in the following month. The merchandise inventory at March 31 remains $71,400 and accounts payable for inventory purchases at March 31 remains $104,300.

Required:

1. Using the president’s new assumptions in (a) above, prepare a schedule of expected cash collections for April, May, and June and for the quarter in total.

2. Using the president’s new assumptions in (b) above, prepare the following for merchandise inventory:

a. A merchandise purchases budget for April, May, and June.

b. A schedule of expected cash disbursements for merchandise purchases for April, May, and June and for the quarter in total.

3. Using the president’s new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total.

For its first year if operations, Altitude Inc. reports pretax GAAP income of $100,000 in 2020. Assume pretax income in 2021 and 2022 of $125,000 and $90,000 respectively. The enacted income tax rate in all years is 25%. The following additional information is available for the first three years of operation (with the exception of the one item in the 4th year).

• Prepaid rent in the amount of $20,000 was recorded on December 21, 2020 for 2021 rent.
• A warranty accrual of 30,000 was recorded on December 31, 2020. The warranty was paid evenly over the years 2021-2023.
• The company recorded interest revenue of $500 each of the three years on municipal bonds.

1. Compute the income tax payable each year for 2020, 2021, 2022
2. Determined the balance of any deferred tax assets or deferred tax liabilities at the end of each year (2020, 2021, 2022)
3. Record the journal entry related to taxes in 2020, 2021, 20222

Stockman Corp. purchased ten $1000, 8​% bonds of Power Source Corporation when the market rate of interest was 6​%. Interest is paid​ semiannually, and the bonds will mature in ten years.

Using the PV function in Excel Superscript ®​, compute the price Stockman paid​ (the present​ value) for the bond investment.​ (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest​ cent.)

Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2021 bank statement included the following information:

The company’s general ledger account had a balance of $40,448 at the end of July. Deposits outstanding totaled $7,200 and all checks written by the company were processed by the bank except for those totaling $8,510. In addition, a $2,900 July deposit from a credit customer was recorded as a $290 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $75 disbursement was incorrectly processed by the bank as a $750 disbursement.

Required:
1. Prepare a bank reconciliation for the month of July.
2. Prepare the necessary journal entries at the end of July to adjust the general ledger cash account.

Prepare the necessary journal entries at the end of July to adjust the general ledger cash account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the credits to cash revealed by the bank reconciliation. Use the miscellaneous expense account to record the bank service charges.

.

Pillow Corporation acquired 80 percent ownership of Sheet Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 20X7, included the following amounts:

Additional Information

1. On January 1, 20X7, Sheet reported net assets with a book value of $150,000 and a fair value of $191,250. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date.
2. Sheet’s depreciable assets had an estimated economic life of 11 years on the date of combination. Goodwill of $25,000 was recorded at the acquisition.
3. Pillow used the equity method in accounting for its investment in Sheet.
4. Detailed analysis of receivables and payables showed that Sheet owed Pillow $16,000 on December 31, 20X7.

a. Prepare all journal entries recorded by Pillow with regard to its investment in Sheet during 20X7.Record the initial investment in Sheet Company

• Record the initial investment in Sheet Company

• B

  Record Pillow Corporation's 80% share of Sheet Company's 20X7 income.

• C

  Record Pillow Corporation's 80% share of Sheet Company's 20X7 dividend.

• D

  Record the amortization of the excess acquisition price.

A farmer has 1000 acre of land on which he can grow corn, wheat and soyabeans. Each acre of corn cost Rs. 100 for preparation, requires 7 man days of work and yields a profit of Rs. 30. An acre of wheat cost Rs. 120 for preparation, requires 10 man days of work and yields a profit of Rs. 40. An acre of soyabeans cost Rs. 70 to prepare, requires 8 man days of work and yields a profit of Rs, 200. If the farmer has Rs. 1, 00,000 for preparation and count on 8000man days of work, how many acres should be allocated to each crop to maximise profit. (Use Simplex Method) Discuss the profitability of different alternatives.

Facts: Paul Willard is a self-employed attorney. Because of erroneous advice that he gave, one of Paul’s clients incurred unnecessary costs of $20,000. The client threatened to sue Paul for malpractice, and Paul reimbursed this sum to his client. Although his malpractice insurance would have covered the payment, he chose not to file for reimbursement. Because he had two recent malpractice claims, Paul is convinced that another claim could cause him to be either uninsurable or insurable only at unaffordable rates.

Issue: May Paul deduct the $20,000 reimbursement paid to his client?

Please solve the conclusion & Analysis:

Conclusion:

Analysis:

Code Section 162

Code Section 165

Based on above Section

EXCEL CRYSTAL BALL:

Not wanting to leave his beloved alma mater, Will Anderson has come up with a scheme to stay
around for 5 more years: He has decided to bid on the fast-food concession rights at the football
stadium. He feels sure that a bid of $60,000 will win the concession, which gives him the right to sell
food at football games for the next 5 years. He estimates that annual operating costs will be 40% of sales
and annual sales will average $100,000. His Uncle Josh has agreed to lend him the $60,000 to make the
bid. He will pay Josh $15,400 at the end of each year. His tax rate is 15%.

(a) Use a spreadsheet model to answer the following question. What is Will’s average annual after-tax
profit? Assume that the yearly payments of $15,400 are tax deductible.

(b) Suppose that sales will probably vary plus or minus 40% from the average of $100,000 each year.
Will is concerned about the minimum after-tax profit he can earn in a year. He feels that he can survive
if it is at least $20,000. Model annual sales for the 5 years as five continuous uniform random variables.
Based on a sample of 7,500 five-year periods (750 periods if using Excel alone), estimate the probability
that over any five-year period the minimum after-tax profit for a year will be at least $20,000. Should
Will bid for the concession?

A company uses the manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred:

A. Using the manufacturing cost hierarchy, what is the total cost that would be classified as unit-level activity costs?

B. Using the manufacturing cost hierarchy, what is the total cost that would be classified as batch-level activity costs?

C. Using the manufacturing cost hierarchy, what is the total cost that would be classified as product-level activity costs?

D. Using the manufacturing cost hierarchy, what is the total cost that would be classified as facility-level activity costs?

On January 1, 2014, Fishbone Corporation sold equipment to Lost Company that cost $250,000 and that had accumulated depreciation of $100,000 on the date of sale. Fishbone received as consideration a non-interest-bearing note requiring payments of $80,000 annually for 3 years. The first note payment is to be made on January 1, 2014. The prevailing rate of interest for a note of this type on January 1, 2014, was 5%.

Record the 1/1/14 transaction for Fishbone Corporation and all necessary entries from 2014-2016.

Record the 1/1/14 transaction for Lost Company and all necessary entries from 204-2016.

There wasn't an answer for this question, I'm looking to verify my answers with another individual. This pertains to the following question:

https://www.chegg.com/homework-help/essentials-of-accounting-for-governmental-and-not-for-profit-organizations-13th-edition-chapter-1-problem-9qe-solution-9781259741012

Here is what I came up with by trying to fit the descriptions to each defined fund(s):

I haven't used this service before so I'm not sure if this is the appropriate way to use it. Any feedback would be appreciated. Thank you.

I figured out the weighted average method, but can anyone show me the FIFO and LIFO treatment of this problem????

Timekeeper Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weighted-average costing. Data for the Assembly Department for June 2015 are: Work in process, beginning inventory 350 units Direct materials (100% complete) Conversion costs (50% complete) Units started during June 1050 units Work in process, ending inventory: 160 units Direct materials (100% complete) Conversion costs (75% complete) Costs for June 2015: Work in process, beginning inventory: Direct materials $91,000 Conversion costs $136,500 Direct materials costs added during June $603,500 Conversion costs added during June $401,500 Required: What is the conversion cost per equivalent unit in June?

Improving Decision Making: Making the Rent vs. Buy Decision for Data Storage for ABC Digital

Software skills: Spreadsheet formulas, and charts
Business skills: Technology rent vs. buy decision, TCO analysis

This project provides an opportunity for you help a real-world company make a decision about whether to rent or buy new technology for data storage. You’ll use spreadsheetsoftware to compare the total 4-year cost of ownership for two options.

Deciding whether to store data on the cloud or on-site is often the dilemma for most business owners. There are advantages and disadvantages to both options. However, in this project you are only focusing on the cost benefits of each option regardless of other aspects including the access time, privacy and scalability issues which are also critically important in making this decision.

Scenario

ABC Digital is looking for a solution for storing their data. They have approximately 100 Terabytes of data that they need to store. The followings are typical cost information associated to option 1, that is to store data on the premises:

The cost items associated to cloud-based storage (Option 2) is given below.

Note that with cloud solution, the backup and redundancies are provided by the cloud provider and the service is included in the cost.

Tasks

1. Use your spreadsheet application to calculate the cost of each option for year 1 to year 4. To get the full mark, you should use Excel formula when it is appropriate. In other words, I should be able to change the above parameters (listed in the tables) and the total cost values should be changed automatically. (30 points)

2. Use an appropriate chart type to present and compare the cost of both solutions in one graph for year 1 to year 4. (15 points)

3. Determine which cost items are considered as capital expenditure (Capex) and which ones are operational expenditures (Opex) for each solution. (15 points)

4. Calculate the total cost of ownerships for a 4-year period for each of the two solutions and suggest the best solution for the ABC Digital. (20 points)

5. One of the main advantages of spreadsheets is that you can easily change the parameters of the model and evaluate “What if...” types of scenarios. Your manager wants to see the sensitivity of the total cost for solution 1 in relation to the year-to-year increase in the “Facilities and Power Charges”. More specifically, your current solution shows the total cost when considering 8% year-to-year increase of the cost of “Facilities and Power Charges” as shown in the Table. However, she wants to see how your estimates changes with this quantity. You should evaluate the total costs over 4 years when evaluating 4%,6%,8% (your current solution), 10%,12% and 14% increase in the year-to-year cost of “Facilities and Power Charges”. The first year cost is still the same, i.e. $20,000 for all scenarios. You should create a new sheet for this. This sheet should show the total cost of solution 1 when changing the year-to-year changes in the Facilities and Power Charges as suggested above. (20 points)