Six Company sells an asset with a $1 million fair value to A Company. A Company agrees to make six equal payments, each to be paid one year apart, commencing on the date of sale. The payments include principal and 6% annual interest. What is the amount of the annual payments? can u solve this using the financial calculator method (pv= fv= n= pmt= )and is this gonna be using beginning mode (annuity due) or end mode (ordinary annuity)

On December 31, 2015, Berclair Inc. had 442 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. Net income for the year ended December 31, 2016, was $1,050 million.

Also outstanding at December 31 were incentive stock options granted to executives. The options were exercisable for 30 million common shares at an exercise price of $56 per share. During 2016, the market price of the common shares averaged $70 per share.

Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2016.

Look up the definition: Tax Court

Post the word and you're definition with a couple of paragraphs about what you learned and why the tax court is new to you?

from previous question, copy over the following U.S Treasury Yields. Specify the maturity in months

Using the looked-up U.S Treasury Yields from the previous question, plot its Yield Curve. Hint: you might want to use Excel's Chart Wizard, using the XY (scatter plot) option. which is a result of Treasury prices transacted in the market. These prices are "bootstrapped" to derive its. Spot Rates z1, z2, z10, …, z30.

1. The sales method for estimating bad debts is calculated using ________.

A) aging of accounts receivable

B) a percentage of credit sales

C) a percentage of net accounts receivable

D) the current balance in accounts receivable

2. Team Shirts had a balance in its allowance for uncollectible accounts of $(200). Aging the accounts receivable showed that the allowance should be $(1,800). Bad debts expense should be ________.

A) $1,400

B) $1,600

C) $1,800

D) $2,000

Learning Objective 4-4

3. Credit card sales benefit companies because ________.

A) the risk of uncollectible accounts is transferred to credit card companies

B) fewer customers will be able to buy products or services

C) the credit card company is not responsible for evaluating customers’ credit-worthiness

D) they will receive less than the full amount of the sale from the credit card company

4. Timmy’s Tires sold $18,750 worth of tires to customers using VISA. The credit card fee is 4% of sales. The amount of sales Timmy’s Tires should recognize is ________.

A) $750

B) $19,500

C) $18,750

D) $18,000

5. Team Shirts decided to accept bankcards from credit customers. Team Shirts should expect ________.

A) an increase in its allowance for uncollectible accounts

B) a decrease in its bad debts expense

C) a decrease in its credit card expense

D) an increase in its write-off of specific customer accounts

6. Magic Cow Co. made a sale for $5,000 to a customer who paid with MasterCard. MasterCard charges Magic Cow a fee of 3% of sales. MasterCard will directly deposit the cash from this sale within 24 hours. How much cash will MasterCard deposit?

A) $5,000

B) $4,850

C) $150

D) $5,150

7. Sally has a new VISA card that was issued by MBNA (Maryland Bank of North America). Sally used her VISA card to buy five kegs of beer at Crock‘n’ Keg. Three months later, Sally still has not paid her VISA bill. Which company carries the account receivable from this sale?

A) MBNA

B) Sally

C) Crock‘n’ Keg

D) both Sally and Crock‘n’ Keg

8. Magic Cow Co. made a sale for $5,000 to a customer who paid with MasterCard. MasterCard charges Magic Cow a fee of 3% of sales. How much sales revenue will Magic Cow record?

A) $5,000

B) $4,850

C) $150

D) $5,150

Learning Objective 4-7

9. Ace Electronics accepted a promissory note from Fenstermaker, who promised to pay Ace $2,000 plus 6% interest at the end of six months. What is the amount of interest that will be paid at the end of the six-month period?

A) $120

B) $240

C) $60

D) $2,060

10. Ace Electronics accepted a promissory note from Fenstermaker, who promised to pay Ace $2,000 plus 6% interest at the end of six months. When Ace first accepts the note, it should record interest receivable of ________.

A) $120

B) $0

C) $60

D) $240

11. Acme, Inc. accepted a promissory note from NadirCo, who promised to pay Acme $5,000 plus 6% interest at the end of four months. What is the amount of interest that will be paid at the end of the four-month period?

A) $300

B) $100

C) $600

D) $5,000

Sandhill Windows manufactures and sells custom storm windows for three-season porches. Sandhill also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sandhill enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,340 and chooses Sandhill to do the installation. Sandhill charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Sandhill $1,960 (which equals the standalone selling price of the windows, which have a cost of $1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Sandhill completes installation on October 15, 2017, and the customer pays the balance due.

1. Sandhill estimates the standalone selling price of the installation based on an estimated cost of $410 plus a margin of 20% on cost.

Prepare the journal entries for Sandhill in 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answer to 0 decimal places, e.g. 5,125.)

2. Given uncertainty of finding skilled labor, Sandhill is unable to develop a reliable estimate for the standalone selling price of the installation.

Prepare the journal entries for Sandhill in 2017.

Why does the write-off of uncollectible accounts have no effect on the accounts receivable on the balance sheet if bad debts are estimated? If not directly written off as bad debts expense how does a company properly recognize uncollectible receivable activity on the income statement? Why are controls over the cash asset so important? What risks exist if adequate controls are not in place? Why is it important to distinguish between current assets and long term assets? What concerns would you have if a company’s current assets increased dramatically? What concerns would you have if current assets decreased while long term assets increased dramatically?

Craig Phillips is a buyer at Socon, a manufacturer of large industrial pumps. He has a requirement for a customized subassembly that his preferred supplier, Oriel, is building for the first time. He is preparing for negotiation with Oriel, where a key issue will be the price of a subassembly. Given the unique nature of this subassembly, Craig expects to incorporate into the contract price reduction targets based on learning curve estimates.

While Craig does not have specific data for Oriel, he has accumulated data for a subassembly that was similar in design and manufacturing complexity.

Assignment:

1. Given the above data, calculate the average labour per unit given the cumulative total hours provided.
2. Calculate the appropriate learning rate and the overall average improvement rate for this data set.
3. Are gains from learning realized early in production or at a later point?
4. A learning curve applies to improvements in the direct labour portion of a process. How does the learning curve differ from the experience curve

Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics.

Assume that the projected number of units sold for the month is 6,000. Consider requirements (b), (c), and (d) independently of each other.

Required:

a. What will the operating profit be?

b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent?

c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent?

d. Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?

The contribution format income statement for Huerra Company for last year is given below:

The company had average operating assets of $493,000 during the year.

Required:

1. Compute the company’s return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover.

For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the data used to compute the original ROI in (1) above.

2. Using Lean Production, the company is able to reduce the average level of inventory by $91,000. (The released funds are used to pay off short-term creditors.)

3. The company achieves a cost savings of $11,000 per year by using less costly materials.

3a. The company issues bonds and uses the proceeds to purchase machinery and equipment that increases average operating assets by $126,000. Interest on the bonds is $14,000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $4,000 per year.

CA14-2. (Bond Theory: Price, Presentation, and Redemption) On March 1, 2017, Sealy Company sold its 5-year, $1,000 face value, 9% bonds dated March 1, 2017, at an effective annual interest rate (yield) of 11%. Interest is payable semiannually, and the first interest payment date is September 1, 2017. Sealy uses the effective-interest method of amortization. The bonds can be called by Sealy at 101 at any time on or after March 1, 2018.

Instructions

(a) 1.How would the selling price of the bond be determined?

(a) 2.Specify how all items related to the bonds would be presented in a balance sheet prepared immediately after the bond issue was    sold.

(b) What items related to the bond issue would be included in Sealy's 2017 income statement, and how would each be determined?

(c) Would the amount of bond discount amortization using the effective-interest method of amortization be lower in the second or third year of the life of the bond issue? Why

(d) Assuming that the bonds were called in and redeemed on March 1, 2018, how should Sealy report the redemption of the bonds on the 2018 income statement? (AICPA adapted)

U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows.

Depreciation is computed by the straight-line method with no salvage value. The company’s cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.)

Click here to view PV table.

Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.)

Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, e.g. 10.50.)

Project BonoProject EdgeProject Clayton

Annual rate of return

enter a percentage number rounded to 2 decimal places

Rank the projects on each of the foregoing bases. Which project do you recommend?

Please be as specific as possible, I am confused on how to properly calculate each cash flow. Thank you.

1.      What are share splits and what accounting entries are necessary when a share split is undertaken?

2.      Are preference shares debt or equity? Briefly provide your reasoning?

3. On 1 July 2019 Campbell Ltd provided 1 million options to its chief executive officer. The options were valued at $1.20 each and allowed the chief executive officer to acquire shares in Campbell Ltd for $8.40 each. The chief executive officer is not permitted to exercise the options before 30 June 2021 but may then exercise them at any time between 1 July 2021 and 30 June 2022. The market price of the Campbell Ltd shares on 1 July 2019 was $9.75.

On 31 December 2021, the share price reaches $10.78 and the chief executive officer decides to exercise her options and acquire shares in Campbell Ltd.

Required: Account for the issue and exercise of options in Campbell Ltd

Τhe P/E (price to earnings) ratio show us the expected price of a stock based on its earnings. Investors tend to invest in a company with a high P/E ratio and buy its shares. On the other hand, reported earnings are often reconstructed by the companies by using some accounting techniques in order to attract investors. Which are those accounting techniques which can artificially help companies change the P/E ratio trend line?

Exercise 21A-1 a Splish Brothers enters into an agreement with Traveler Inc. to lease a car on December 31, 2016. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal or bargain purchase option. The remaining economic life of the car is 3 years, and it is expected to have no residual value at the end of the lease term. 2. The fair value of the car was $14,730 at commencement of the lease. 3. Annual payments are required to be made on December 31 at the end of each year of the lease, beginning December 31, 2017. The first payment is to be of an amount of $5,452.82, with each payment increasing by a constant rate of 5% from the previous payment (i.e., the second payment will be $5,725.46 and the third and final payment will be $6,011.73). 4. Splish Brothers’ incremental borrowing rate is 8%. The rate implicit in the lease is unknown. 5. Splish Brothers uses straight-line depreciation for all similar cars. (a) Prepare Splish Brothers’ journal entries for 2016, 2017, and 2018.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 2 decimal places, e.g. 5,275.25.)

Date    Account Titles and Explanation    Debit Credit

12/31/16

12/31/17

(To record interest expense)

12/31/17

(To record amortization of the right-of-use asset)

12/31/18

(To record interest expense)

12/31/18

(To record amortization of the right-of-use asset)