Schedule of Cash Collections on Accounts Receivable and Cash Budget

Bennett Inc. found that about 45% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience:

Bennett's anticipated sales for the next few months are as follows:

Required:

1. Calculate credit sales for May.
$

Calculate credit sales for June.
$

Calculate credit sales for July.
$

Calculate credit sales for August.
$

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1. Calculate credit sales for each month.

2. Prepare a schedule of cash receipts for July and August. Round your answers to the nearest whole dollar, if necessary. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers.

[Taxation]Historically, taxpayers have implemented strategies to mitigate or eliminate the effects of double taxation. Why might taxpayers think twice before implementing such strategies today? Explain.

3.

TylerTyler

PhillipsPhillips

works for

RamirezRamirez

Company all year and earns a monthly salary of

$ 3 comma 500$3,500.

There is no overtime pay. Based on

TylerTyler​'s

​W-4,

RamirezRamirez

withholds income taxes at

2020​%

of his gross pay. As of July​ 31,

TylerTyler

had

$ 24 comma 500$24,500

of cumulative earnings.

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​(Click the icon to view payroll tax rate​ information.)Journalize the accrual of salary expense for

RamirezRamirez

Company related to the employment of

TylerTyler

PhillipsPhillips

for the month of August. ​(Record debits​ first, then credits. Round all amounts to the nearest cent. Select the explanation on the last line of the journal entry​ table.)

Date

Accounts and Explanation

Debit

Credit

For all payroll​ calculations, use the following tax rates and round amounts to the nearest​ cent:

Compose a memo addressing the allocation of profits to three partners of a new business: Alan, Bob, and Carol. It is your responsibility to address the potential ways in which the first-year profits can be divided among these partners, including whether the partners should be taking a salary, how the partners’ capital accounts may be affected by various decisions, and the most ethical way that the profits could be divided. Your memo should answer the following prompt: A new business client comes to your office. There are three owners of the business. The three individuals, Alan, Bob, and Carol, are thinking about forming a partnership. Alan is only investing $1 million in cash. He will not have anything to do with the daily activities of the business. Bob has had some experience in the business and will be responsible for the day-to-day operations of the business. Carol has a great deal of experience and many contacts within the business. She will be responsible for attracting new clients. Neither Bob nor Carol are investing cash into the partnership. During the first year of operation, the partnership generated a profit of $150,000. None of the partners received distributions during the year. Answer the following: E. How do the payment of salary and the allocation of profit affect entries and the financial bottom line? Be sure to support your explanation with concrete examples. F. How could the payment of salary and allocation of profit be a more effective method of splitting the company’s profits for the three partners? Explain a scenario in which the three partners would all be compensated fairly, and support your answer with logical reasoning. G. What would be the value of each partner’s capital account at the end of the year, given your proposed fair allocation method? Support your answer with quantitative data and an explanation of how you came to this conclusion.

The shareholders’ equity of Core Technologies Company on June 30, 2017, included the following: Common stock, $1 par; authorized, 6 million shares; issued and outstanding, 1 million shares $ 1,000,000 Paid-in capital—excess of par 4,000,000 Retained earnings 15,000,000 On April 1, 2018, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $34 on April 1, 2018, and $44 on June 1, 2018.

Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.

The shareholders’ equity of Core Technologies Company on June 30, 2017, included the following:

1. Find the balance on the credit card after 3 months with the following information:

APR = 15.99%

Carry-Over balance for month 1 = $793.16

Minimum payment is $50 or 8%, whichever is greater

Simmons Inc. has an expected net income of 4 million Euros at the end of the year. The company is currently all equity financed but it is planning to buy back equity and undertake some debt so that the debt- to-equity ratio will become 0.5. The debt-to-equity ratio will be kept constant. The assets will be fully depreciated in the next three years, with annual depreciation installments of 1,000,000 Euro each. The company does not plan to acquire any asset. The expected return on unlevered equity for Simmons is 9.25% and the cost of debt is 5.25%. The tax rate on corporate earnings is 32%. What is the value of Simmons’ debt, if the expected EBITDA of the company is perpetual and constant every year? (Assume that the depreciation tax shield is as risky as the rest of the unlevered cash flow)

(a) 15,829,380 Euro
(b) 16,032,251 Euro
(c) 17,987,342 Euro
(d) 18,223,172 Euro

The answer is D: 18,223,171 Euro
Thumb up for correct step-by-step solution. Many thanks.

Veronica Mars, a recent graduate of Bell’s accounting program, evaluated the operating performance of Dunn Company’s six divisions. Veronica made the following presentation to Dunn’s board of directors and suggested the Percy Division be eliminated. “If the Percy Division is eliminated,” she said, “our total profits would increase by $26,500.”

In the Percy Division, cost of goods sold is $60,500 variable and $16,300 fixed, and operating expenses are $29,100 variable and $20,600 fixed. None of the Percy Division’s fixed costs will be eliminated if the division is discontinued.

Is Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game console follows.

Assume that the following data appeared in J&W’s records at the end of the past month.

There are no materials inventories.

Required:

a-1. Complete the standard cost sheet for a game console given below.

a-2. Prepare a variance analysis for direct materials and direct labor.

b. Assume that all production overhead is fixed and that the $18,300 underapplied is the only overhead variance that can be computed. What are the actual and applied overhead amounts?

1. Multiple Production Department Factory Overhead Rates

   The total factory overhead for Bardot Marine Company is budgeted for the year at $945,000, divided into two departments: Fabrication, $585,000, and Assembly, $360,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require one direct labor hour in Fabrication and two direct labor hours in Assembly. The bass boats require four direct labor hours in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 6,000 units of production for the year.

   When required, round all per unit answers to the nearest cent.

   a. Determine the total number of budgeted direct labor hours for the year in each department.

   Fabrication	direct labor hours
   Assembly	direct labor hours

   b. Determine the departmental factory overhead rates for both departments.

   Fabrication	$ per dlh
   Assembly	$ per dlh

   c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.

   Speedboat:	$ per unit
   Bass boat:	$ per unit

A partial list of Waterways’ accounts and their balances for the month of November follows.

Accounts Receivable       $274,500
Advertising Expenses       54,200
Cash       261,000
Depreciation—Factory Equipment       16,800
Depreciation—Office Equipment       2,500
Direct Labor       41,900
Factory Supplies Used       16,700
Factory Utilities       10,300
Finished Goods Inventory, November 30       68,800
Finished Goods Inventory, October 31       73,100
Indirect Labor       48,100
Office Supplies Expense       1,600
Other Administrative Expenses       71,500
Prepaid Expenses       41,400
Raw Materials Inventory, November 30       52,300
Raw Materials Inventory, October 31       37,600
Raw Materials Purchases       184,100
Rent—Factory Equipment       46,800
Repairs—Factory Equipment       4,600
Salaries       323,000
Sales Revenue
1,354,600
Sales Commissions       40,500
Work In Process Inventory October 31       52,600
Work In Process Inventory, November 30       42,200

  
Collapse question part
(b1)
A list of accounts and their values are given above. From this information, prepare a cost of goods manufactured schedule.

WATERWAYS CORPORATION
Cost of Goods Manufactured Schedule

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2006 by two talented engineers with little business training. In 2018, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2018 before any adjusting entries or closing entries were prepared.

1. A five-year casualty insurance policy was purchased at the beginning of 2016 for $35,500. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2018, the company changed the salvage value used in calculating depreciation for its office building. The building cost $614,000 on December 29, 2007, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $110,000. Declining real estate values in the area indicate that the salvage value will be no more than $27,500.
3. On December 31, 2017, merchandise inventory was overstated by $25,500 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2018 for both financial statement and income tax purposes. The change will cause a $965,000 increase in the beginning inventory at January 1, 2019.
5. At the end of 2017, the company failed to accrue $15,600 of sales commissions earned by employees during 2017. The expense was recorded when the commissions were paid in early 2018.
6. At the beginning of 2016, the company purchased a machine at a cost of $730,000. Its useful life was estimated to be 10 years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2017, was $467,200. On January 1, 2018, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.80% is a better indication of the actual cost. Management effects the change in 2018. Credit sales for 2018 are $4,100,000; in 2017 they were $3,800,000.

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for 2018 related to the situation described. (Ignore tax effects.)

Discuss how the COSO's Enterprise Risk Management — Integrated Framework relates to internal Control for Technology