Present Value of Bonds Payable; Premium

Moss Co. issued $100,000 of five-year, 11% bonds with interest payable semiannually, at a market (effective) interest rate of 8%.

Determine the present value of the bonds payable, using the present value tables in Exhibit 8 and Exhibit 10.

Note: Round to the nearest dollar.

$

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow. Additional Information Items An analysis of WTI's insurance policies shows that $3,600 of coverage has expired. An inventory count shows that teaching supplies costing $3,120 are available at year-end 2017. Annual depreciation on the equipment is $14,400. Annual depreciation on the professional library is $7,200. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,700, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. On October 15,

WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,380 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017

Debit

Cash- $27,547

Accounts receivable- 0

Teaching supplies- 10,594

Prepaid insurance- 15,894

Prepaid rent- 2,120

Professional library- 31,784

Equipment- 74,152

Dividends- 42,381

Depreciation expense—Professional library 0

Depreciation expense—Equipment 0

Salaries expense 50,858

Insurance expense- 0

Rent expense- 23,320

Teaching supplies expense- 0

Advertising expense -7,417

Utilities expense -5,933

$ 292,000

Credit

Problem 3-3A Part 2 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance
.

Additional Information Items

A. An analysis of WTI's insurance policies shows that $3,600 of coverage has expired.

B. An inventory count shows that teaching supplies costing $3,120 are available at year-end 2017.

C. Annual depreciation on the equipment is $14,400.

D. Annual depreciation on the professional library is $7,200.

E. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,700, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.

F. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,380 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

G. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.

H. The balance in the Prepaid Rent account represents rent for December.

Prepare Wells Technical Institute's balance sheet as of December 31, 2017.

On January 1, 2016 Venti Corporation exchanged $344,000 cash for a 90% interest in Krunk Corporation’s outstanding voting stock. Krunk’s acquisition balance sheet is in the accompanying Excel spreadsheet along with the financial statements for both companies for the year ended December 31, 2018.

On January 1, 2016, Venti prepared the following fair value allocation schedule:

                        Consideration transferred by Venti............................................. 344,000

                        10% noncontrolling interest fair value.......................................   36,000

                        Fair value of Krunk..................................................................... 380,000

                        Book value of Krunk................................................................... 324,000

                        Excess fair value over book value................................................ 56,000

                          Allocated to equipment (remaining life=9 years)....................   18,000

                          Allocated to goodwill................................................................   38,000

Required:

1. Prepare a schedule showing the allocation of the goodwill to the controlling and noncontrolling interest.
2. Prepare a schedule showing the Venti’s Equity in Krunk’s Earnings for 2016, 2017, and 2018.
3. Prepare a schedule showing how Venti determined the $488,900 balance in the Investment in Krunk account.

Business law

(1) Can a small-holding (minor) shareholder have an influence on how a company is managed? What are the main restrictions and are the number of shares held relevant?

1. Wytch Corporation bases its budgets on machine-hours. The company's static planning budget for February appears below:

Required:

Prepare a flexible budget for 6,400 machine-hours per month.

P 14 - 2

On January 1, 2018, Baddour Inc., issued 10% bonds with a face amount of $160 million. The bonds were priced at $140 million to yield 12%. Interest is paid semiannually on June 30 and December 31. Baddour's fiscal year ends September 30.

Question #1.) What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2018?

On 9/30/18 Interest expense - Interest payable is $4,212,000 - $4,000,000 = $212,000,000. I'm curious then, when subtracting the interest payable from the interest expense what it would be on 6/30/18? This is the 9th edition of Intermediate Accounting by authors Spiceland, Nelson, and Thomas. Published by Mcgraw Hill.

Sarasota Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $55,700. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $144,323 for 2017. 3. As of January 1, 2017, the company had a projected benefit obligation of $894,700, an accumulated benefit obligation of $792,500, and a debit balance of $402,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,400 at the beginning of the year. The actual and expected return on plan assets was $54,300. The settlement rate was 9%. No gains or losses occurred in 2017 and no benefits were paid. 4. Amortization of prior service cost was $49,800 in 2017. Amortization of net gain or loss was not required in 2017. Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Prepare the journal entry or entries to record pension expense and the employer’s contribution to the pension trustee in 2017. (Credit account titles are automatically indented when 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.) Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Sarasota Company for the year 2017.

John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for the past month. The following information is available: Two types of tests are performed in the lab—blood tests and smears. During the past month, 700 blood tests and 2,900 smears were performed in the lab. Small glass plates are used in both types of tests. During the past month, the hospital purchased 14,500 plates at a cost of $54,520. 1,900 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. During the past month, 1,900 hours of labor time were recorded in the lab at a cost of $20,425. The lab’s variable overhead cost last month totaled $14,250. Valley View Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $4.00 each and are disposed of after the test is completed. Labor: Each blood test should require 0.8 hours to complete, and each smear should require 0.40 hours to complete. The average cost of this lab time is $11.10 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $7.00 per hour. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. 2. For labor cost in the lab: a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance?

Explain in details what are the factors that forces Australian Companies to disclose environmental and climate change information. Provide examples to substantiate your answer. Kindly do not copy and paste .

QUESTION 1 [41 MARKS]
ABC Holdings is considering two projects. The projects are similar in nature and are expected to both operate for four years. Due to unavailability of funds to undertake both of them, only one project can be accepted. The cost of capital is 12%.
The following information is available:

Depreciation is charged on the straight line basis.

1. Assuming that the management of ABC holdings have decided to undertake both projects and the projects can be undertaken in part, how much NPV will they get if they have N$80 000 000 available to invest.

2. Explain three non-financial considerations that should be taken into account before a project is chosen