During Year 1 and Year 2, Agatha Corp. completed the following transactions relating to its bond issue. The corporation’s fiscal year is the calendar year.

Year 1

Jan. 1 Issued $310,000 of 10-year, 6 percent bonds for $298,000. The annual cash payment for interest is due on December 31.

Dec. 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest.

Dec. 31 Closed the interest expense account.

Year 2

Dec. 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest.

Dec. 31 Closed the interest expense account.

Required

a-1. When the bonds were issued, was the market rate of interest more or less than the stated rate of interest?

a-2. If Agatha had sold the bonds at their face amount, what amount of cash would Agatha have received?

b. Prepare the liabilities section of the balance sheet at December 31, Year 1 and Year 2.

c. Determine the amount of interest expense that will be reported on the income statements for Year 1 and Year 2.

d. Determine the amount of interest that will be paid in cash to the bondholders in Year 1 and Year 2.

. Lang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Present entries to record the following selected transactions related to production during June:

(a) Materials purchased on account, $225,000

(b) Materials requisitioned by; Machining, $73,000 direct and $9,000 indirect materials; Assembly, $4,900 indirect materials.

(c) Direct labor used by Machining, $23,000, Assembly $47,000.

(D) Depreciation expenses: Machining $2,000, Assembly $8,000

(e) Factory overhead applied: Machining $9,700, Assembly $11,300

(f) Machining Department transferred $98,300 to Assembly Department; Assembly Department transferred $83,400 to finished goods.

(g) Cost of goods sold $72,000

The accounting for investments in another entity's equity instruments depends mainly on

The fair value loss impairment model

Accumulated other comprehensive income includes

Regarding the reporting of investment income under the FV–NI method, for companies reporting in accordance with ASPE, which of the following statements is true?

Cost Department Allocations

In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $64,560, and the Purchasing Department had expenses of $40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

Required:

a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.

b. Using the cost driver information in (a), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. Do not round interim calculations. Round your answers to two decimal places.

c. Residential's support department allocations are   than the other two divisions because Residential is a   user of support department services. Residential has many employees on a weekly payroll, which translates into a   number of payroll transactions.

Sager Company manufactures variations of its product, a technopress, in response to custom orders from its customers. On May 1, the company had no inventories of work in process or finished goods but held the following raw materials.

On May 4, the company began working on two technopresses: Job 102 for Worldwide Company and Job 103 for Reuben Company.

1. Purchased raw materials on credit and recorded the following information from receiving reports and invoices.

Receiving Report No. 426, Material M, 250 units at $250 each.
Receiving Report No. 427, Material R, 90 units at $180 each.

Record these purchases with a single journal entry. Enter the receiving report information on the materials ledger cards.

2. Requisitioned the following raw materials for production.

Requisition No. 35, for Job 102, 135 units of Material M.
Requisition No. 36, for Job 102, 72 units of Material R.
Requisition No. 37, for Job 103, 70 units of Material M.
Requisition No. 38, for Job 103, 38 units of Material R.
Requisition No. 39, for 15 units of paint.

Enter amounts for direct materials requisitions on the materials ledger cards and the job cost sheets. Enter the indirect materials amount on the materials ledger card.

3. Received the following employee time tickets for work in May.

Time tickets Nos. 1 to 10 for direct labor on Job 102, $90,000.
Time tickets Nos. 11 to 30 for direct labor on Job 103, $65,000.
Time tickets Nos. 31 to 36 for equipment repairs, $19,250.

Record direct labor from the time tickets on the job cost sheets.

4. Paid cash for the following items during the month: factory payroll, $174,250, and miscellaneous overhead items, $102,000. Use the time tickets to record the total direct and indirect labor costs.
5. Finished Job 102 and transferred it to the warehouse. The company assigns overhead to each job with a predetermined overhead rate equal to 80% of direct labor cost.

Enter the allocated overhead on the cost sheet for Job 102, fill in the cost summary section of the cost sheets.

6. Delivered Job 102 and accepted the customer’s promise to pay $400,000 within 30 days.
7. Applied overhead cost to Job 103 based on the job’s direct labor to date.

Required:
Complete the materials ledger cards for Material M, Material R, and paint using the information given in part a and b. Complete the job cost sheets for Jobs 102 and 103 using the information given in part a, b, c and e. Prepare journal entries for part a through g.

Complete the job cost sheets for Jobs 102 and 103 using the information given in part a, b, c and e.

Chesterfield County had the following transactions.

1. A budget is passed for all ongoing activities. Revenue is anticipated to be $888,750 with approved spending of $583,000 and operating transfers out of $246,000.
2. A contract is signed with a construction company to build a new central office building for the government at a cost of $7,400,000 . A budget for this project has previously been recorded.
3. Bonds are sold for $7,400,000 (face value) to finance construction of the new office building.
4. The new building is completed. An invoice for $7,400,000 is received and paid.
5. Previously unrestricted cash of $1,250,000 is set aside to begin paying the bonds issued in (c).
6. A portion of the bonds comes due and $1,250,000 is paid. Of this total, $110,000 represents interest. The interest had not been previously accrued.
7. Citizens' property tax levies are assessed. Total billing for this tax is $845,000. On this date, the assessment is a legally enforceable claim according to the laws of this state. The money to be received is designated for the current period and 90 percent is assumed to be collectible in this period with receipt of an additional 6 percent during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible.
8. Cash of $165,000 is received from a toll road. This money is restricted for highway maintenance.
9. The county received investments valued at $335,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks.

Prepare the entries first for fund financial statements and then for government-wide financial statements.

Office Works has an order to manufacture several specialty products. The beginning cash and equity balances were $105,000. All other beginning balances were $0. Use your T-Account worksheet to record the following transactions:

1. Purchased $50,000 of direct materials on account.
2. Used $45,000 direct materials in production during the month.
3. Manufacturing employees worked 6,400 hours and were paid at a rate of $8 per hour. Paid cash for the direct labor expense.

4. The company applies OH based on direct labor cost. This year's annual overhead is estimated to be $500,000. The actual direct   labor cost last year was $1,250,000. The company estimates it will spend $625,000 in labor cost this year.
5. Compute and record the OH applied to the job.
6. Completed units costing $50,000 during the month.
7. Sold 6,000 units costing $6.50 during the month. The selling price is 30% above cost. Received cash.
8. This year, the company paid $40,000 cash for actual OH expenses incurred. Last year the company paid $65,000 cash for OH expenses. Record the actual OH costs.
9. The company considers OH differences less than $4,000 to be immaterial. By how much was OH over applied or under applied? Record the difference.

Now, CHOOSE 6 CORRECT STATEMENTS from the choices below. You should have 6 check marks indicating your answer choices. Each answer choice is worth 4 points:

1. The predetermined overhead rate is?
2. The direct labor that is debited to labor expense is?
3. How much are the total current manufacturing costs?
4. How much revenue did the company earn?
5. By how much was MOH over/under applied?
6. How much are the costs of goods manufactured?

Group of answer choices

The cost of goods manufactured is $40,000

The amount of sales revenue earned was $50,000

The amount of over/under applied MOH is $0

The predetermined MOH rate is $1.25

The amount of sales revenue earned was $50,700

The direct labor that will be debited to direct labor expense is $160,137

The direct labor that will be debited to direct labor expense is $40,960

The predetermined MOH rate is $.80

The amount of over/under applied MOH is $960

The direct labor that will be debited to direct labor expense is $0

The cost of goods manufactured is $50,000

The total current manufacturing costs are $137,160

The direct labor that will be debited to direct labor expense is $160,200

The cost of goods manufactured is $39,000

The direct labor that will be debited to direct labor expense is $51,200

The predetermined MOH rate is $..75

The amount of over/under applied MOH is $1,000

The amount of sales revenue earned was $39,000

BSF Co., which produces and sells skiing equipment, is financed as follows:

Bonds payable, 10% (issued at face amount) $2,200,000

Preferred 1% stock, $10 par 2,200,000

Common stock, $25 par 2,200,000

Income tax is estimated at 60% of income. Round your answers to the nearest cent.

a. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $814,000. ？ per share

b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,034,000. ？ per share

c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,254,000. ？ per share

this week we are studying Flowcharting and the different ways in which they can be useful for accounting information systems.
Present in your words an overview of the benefits and uses of Flowcharts. If you were a new employee of a company, how could the use of Flowcharts help you understand the systems of the organization?

Note:Could you please don't use your handwriting to answer this question to be easy for me to solve...Thanks

I JUST WANT TO FIND OUT HOW TO CALCULATE THE 189,540 MONEY AMOUNT OF COMMON STOCK IN PART C?

THANK YOU!

In 2013, Elizabeth and some of her friends invested money to start a company named LADIEZ Corporation. The following transactions occurred during 2013:

LADIEZ Corporation generated a $145,000 net income during the year.

a) Prepare the journal entries to record the above transactions.

Do not enter dollar signs or commas in the input boxes.

b) Prepare the statement of retained earnings for the year ended December 31, 2013.

c) Prepare the Stockholders’ equity section of the balance sheet as at December 31, 2013.

Steve Murningham, manager of an electronics division, was considering an offer by Pat Sellers, manager of a sister division. Pat's division was operating below capacity and had just been given an opportunity to produce 8,000 units of one of its products for a customer in a market not normally served. The opportunity involves a product that uses an electrical component produced by Steve's division. Each unit that Pat's division produces requires two of the components. However, the price that the customer is willing to pay is well below the price that is usually charged; to make a reasonable profit on the order, Pat needs a price concession from Steve's division. Pat had offered to pay full manufacturing cost for the parts. So Steve would know that everything was above board, Pat supplied the following unit cost and price information concerning the special order, excluding the cost of the electrical component:

Selling price            $32

Less costs:

Direct materials        17

Direct labour              7

Variable overhead     2

Fixed overhead           3

Operating profit        $3

The normal selling price of the electrical component is $2.30 per unit. Its full manufacturing cost is $1.85 ($1.05 variable and $0.80 fixed). Pat argued that paying $2.30 per component would wipe out the operating profit and result in her division showing a loss. Steve was interested in the offer because his division was also operating below capacity (the order would not use all the excess capacity).

Required:

1. Should Steve accept the order at a selling price of $1.85 per unit? By how much will his division's profits be changed if the order is accepted? By how much will the profits of Pat's division change if Steve agrees to supply the part at full cost?

2. Suppose that Steve offers to supply the component at $2. In offering this price, Steve says that it is a firm offer, not subject to negotiation. Should Pat accept this price and produce the special order? If Pat accepts the price, what is the change in profits for Steve's division?

3. Assume that Steve's division is operating at flail capacity and that Steve refuses to 'supply the part for less than the full price. Should Pat still accept the special order? Explain.

Sealing Company manufactures three types of DVD storage units. Each of the three types requires the use of a special machine that has a total operating capacity of 15,000 hours per year. Information on the three types of storage units is as follows:

Basic              Standard       Deluxe

Selling price                        $9.00              $30.00           $35.00

Variable cost                        $6.00              $20.00           $10.00

Machine hours required       0.10                 0.50                0.75

Sealing Company's marketing director has assessed demand for the three types of storage units and believes that the firm can sell as many units as it can produce.

Required:

1. How many of each type of unit should be produced and sold to maximize the company's contribution margin? What is the total contribution margin for your selection?

2. Now suppose that Sealing Company believes that it can sell no more than 12,000 of the deluxe model but up to 50,000 each of the basic and standard models at the selling prices estimated. What product mix would you recommend, and what would be the total contribution margin?

McCormick & Company is considering a project that requires an initial investment of $24 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3 million. The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500,000. Unit sales are expected to be $150,000 each year for the next six years, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8 million (before tax) and the land is expected to be worth $5.4 million (after tax).To supplement the production process, the company will need to purchase $1 million worth of inventory. That inventory will be depleted during the final year of the project. The company has $100 million of debt outstanding with a yield to maturity of 8 percent, and has $150 million of equity outstanding with a beta of 0.9. The expected market return is 13 percent, and the risk-free rate is 5 percent. The company's marginal tax rate is 40 percent.

Questions Below

5. What is the total operating cash flows, given the following operating cash flows:

Sales = 150,000 x $420 = $63,000,000

Costs = 150,000 x $130 + $500,000 = $20,000,000

6. Create an after-tax cash flow timeline.

7. What are the total expected cash flows at the end of year six? The $4.3 million is an opportunity cost and must be included at date zero as a cash outflow. If the project is accepted, however, the land can be sold in six years for $5.4 million.

Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below:

The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to closing the store. The company has asked you to make a recommendation as to whether the store should be closed or kept open. The following additional information is available for your use:

1. The breakdown of the selling and administrative expenses that are shown above is as follows:

*Allocated on the basis of sales dollars.

*Allocated on the basis of sales dollars.

2. The lease on the building housing the North Store can be broken with no penalty.

3. The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed.

4. The general manager of the North Store would be retained and transferred to another position in the company if the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $10,000 per quarter. The general manager of the North Store would continue to earn her normal salary of $11,000 per quarter. All other managers and employees in the North store would be discharged.

5. The company has one delivery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This person’s salary is $4,100 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete.

6. The company pays employment taxes equal to 15% of their employees' salaries.

7. One-third of the insurance in the North Store is on the store’s fixtures.

8. The “General office salaries” and “General office—other” relate to the overall management of Superior Markets, Inc. If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workload. This person’s compensation is $5,500 per quarter.

Required:

1. How much employee salaries will the company avoid if it closes the North Store?

2. How much employment taxes will the company avoid if it closes the North Store?

3. What is the financial advantage (disadvantage) of closing the North Store?

4. Assuming that the North Store's floor space can’t be subleased, would you recommend closing the North Store?

5. Assume that the North Store's floor space can’t be subleased. However, let's introduce three more assumptions. First, assume that if the North Store were closed, one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. Second, assume that the East Store has enough capacity to handle the increased sales that would arise from closing the North Store. Third, assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in the East store. Given these new assumptions, what is the financial advantage (disadvantage) of closing the North Store?