Namaste, Inc. makes a line of bathroom accessories. A decline in sales has left the organization with 10,000 machine hours of idle capacity at their disposal each year. This idle capacity could be used by the company to manufacture, rather than buy, one of the pieces used in its production process. Namaste needs 5,000 units of this component each year. This component is currently being purchased from an outside supplier at $7.50 per unit. Variable production cost for the component is $4.10 per unit, and additional supervisory costs are $18,000 per year. Already existing fixed costs that would be allocated to this part come to a total of $300,000 per year.

How much would the company's overall annual NOI increase/decrease as a result of making the component, rather than purchasing it?

The following events apply to Equipment Services Inc. in its first year of operation:

1. Acquired $60,000 cash from the issue of common stock.
2. Received an $8,200 cash advance for services to be provided in the future.
3. Purchased $2,000 of supplies on account.
4. Earned $36,000 of service revenue on account.
5. Incurred $16,100 of operating expenses on account.
6. Collected $28,500 cash from accounts receivable.
7. Made a $15,100 payment on accounts payable.
8. Paid a $2,000 cash dividend to stockholders.
9. Recognized $1,600 of supplies expense.
10. Recorded $3,100 of accrued salaries expense.
11. Recognized $3,100 of revenue for services provided to the customer in Event 2.

Required
a. Record the events in T-accounts and determine the ending account balances.
b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.

• Required A
• Required B

Record the events in T-accounts and determine the ending account balances.

I have filled in some but need help with the remaining. Thanks.

Question 1

The following balances have been extracted from the accounts of Peya, a sole trader, for the period ended 31 March 2020.
N$
Sales 427,726
Carriage inwards 476
Wages and salaries 64,210
Carriage outwards 829
Purchases 302,419
Rent and rates 12,466
Heat and light 4,757
Stock at 1 April 2019 15,310
Drawings 21,600
Equipment at cost 102,000
Motor vehicles at cost 43,270
Provision for depreciation
– equipment 22,250
– motor vehicles 8,920
Debtors 50,633
Creditors 41,792
Bank 3,295 cr
Sundry expenses 8,426
Cash 477
Capital 122,890
The following information as at 31 March 2020 is also available:
(1) N$350 is owing for heat and light
(2) N$620 has been prepaid for rent and rates
(3) Depreciation is to be provided for the year as follows:
equipment at 10% on cost and motor vehicles at 20% on cost
(4) Stock at 31 March2020 isN$16,480
Required:
(a) Prepare the trial balance for Peya (before any adjustments) as at 31 March 2020.
(b) Prepare the trading and profit and loss accounts for Peya for the year ending 31 March 2020.
(c) Prepare the balance sheet for Peya as at 31 March 2020.
(Total 31 marks)
Due Date:

Find the interest rate for each deposit and compound amount. $8000 accumulating to $12,384.48, compounded quarterly for 8 years.

a. 5%

b. 5.75%

c. 5.5%

d. 6%

Richard, Barry and Andrew decided to enter into a partnership agreement as from 1^st July 2018, some of the provisions of which were as follows.

1.       Richard to contribute $24000 cash, inventory the fair value of which was $51000, plant and machinery $94320, accounts receivable totalling $15240

2.       Barry to contribute $45000 cash and act as manager for the business at an annual salary of $38400 to be allocated to him at the end of each year.

3.       Andrew to contribute $19800 cash, land $144000, premises $288000, furniture and fittings $48600, and motor vehicles $37800. A mortgage of $216000 secured over the premises was outstanding and the partnership agreed to assume the mortgage.

4.       Profits or losses of the firm to be divided between or borne by Richard, barry and Andrew in the proportion of 2:1:3 respectively.

5.       Interest to be allowed at 8% p.a. on the capital contribution by the partners. Interest at 10% p.a. to be charged on partners’ drawings.

6.       During the year ended 30 June 2019, the income of the partnership totaled $144960, and the expenses (excluding interest on capital and drawings and Barry’s salary) amounted to $51600.

7.       Richard withdrew $14400 on 1 October 2018 and $9600 on 1 January 2019; Barrie withdrew $4800 only on 1 April 2019; Andrew withdrew $12000 on 30 June 2019.

Required

A) Prepare general journal entries necessary to open the records of the partnership.

B) Prepare the balance sheet of the partnership immediately after formation.

C) Prepare a Profit Distribution account for the year ended 30 June 2019.

PLEASE DO NOT COPY OTHERS ANSWERS

The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm:

1. Purchased $25,500 of materials on account.

2. Issued $1,750 of supplies from the materials inventory.

3. Purchased $13,100 of materials on account.

4. Paid for the materials purchased in transaction (1) using cash.

5. Issued $15,500 in direct materials to the production department.

6. Incurred direct labor costs of $29,500, which were credited to Wages Payable.

7. Paid $23,100 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

8. Applied overhead on the basis of 130 percent of $29,500 direct labor costs.

9. Recognized depreciation on manufacturing property, plant, and equipment of $11,900.

The following balances appeared in the accounts of Steve’s Cabinets for April:

b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

Material Inventory

Work-in-process

Manufacturing Overhead Control

Applied overhead

Accounts payable

Cash

Wages payable

Accumulated Depreciation- Property, Plant, and Equipment

Finished Goods Inventory

Cost of goods sold

Discuss effective techniques for reducing stage fright in business communication.

shannon company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ration, and net operating income are $1,020,000, 38%, and $20,400 respectively. The North Division's contribution margin and contribution margin ratio are $142,800 and 42% respectively. The south Division's segment margin is $163,200. The company has $244,800 of common fixed expenses that cannot be traced to either divisions. Prepare an income statement for Shannon Company that uses the contribution format and is segmented by division. In addition, for the company as whole and for each segment show each item on the segmented income statements as percent of sales.

oy decides to buy a personal residence and goes to the bank for a $150,000 loan. The bank tells him that he can borrow the funds at 4% if his father will guarantee the debt. Roy's father, Hal, owns a $150,000 CD currently yielding 3.5%. The Federal rate is 3%. Hal agrees to either of the following:

• Roy borrows from the bank with Hal's guarantee to the bank.
• Cash in the CD (with no penalty), and lend Roy the funds at 2% interest.

Hal is in the 32% marginal tax bracket. Roy, whose only source of income is his salary, is in the 12% marginal tax bracket. The interest Roy pays on the mortgage will be deductible by him.

Considering only the tax consequences, answer the following. If required, round the interim calculation for the tax on interest income to the nearest dollar. Final answers should be rounded to the nearest dollar, if required.

a. The loan guarantee:
Hal's interest income from the CDs would be $ before taxes and $ after taxes.

Roy's interest expense from the bank loan would be $ before taxes and $ after taxes.

This arrangement would produce an overall negative  cash flow after taxes to the family of $.

b. The loan from Hal to Roy:
Hal's tax on the imputed interest income from the loan to Roy would be $.

Roy's tax benefit from the imputed interest expense from Hal's loan would be $.

This arrangement would produce an overall negative  cash flow after taxes to the family of $.

c. Which option will maximize the family's after-tax wealth?
The loan from Hal to Roy

Adonis Corporation issued 10-year, 7% bonds with a par value of $130,000. Interest is paid semiannually. The market rate on the issue date was 6%. Adonis received $139,674 in cash proceeds. Which of the following statements is true?

• Adonis must pay $139,674 at maturity plus 20 interest payments of $4,550 each.

• Adonis must pay $130,000 at maturity plus 20 interest payments of $4,550 each.

• Adonis must pay $130,000 at maturity plus 20 interest payments of $3,900 each.

• Adonis must pay $139,674 at maturity and no interest payments.

• Adonis must pay $130,000 at maturity and no interest payments.

Swifty Corporation has 2,000 shares of 10%, $130 par value preferred stock outstanding at December 31, 2020. At December 31, 2020, the company declared a $140,000 cash dividend. Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios.

1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years.

The dividend paid to preferred stockholders $

The dividend paid to common stockholders $

2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years.

The dividend paid to preferred stockholders $

The dividend paid to common stockholders $

3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years.

The dividend paid to preferred stockholders $

The dividend paid to common stockholders $

Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2017 information related to Carla Company ($000 omitted).

Common shares outstanding for 2017 total 40,550 (000 omitted).

Prepare an income statement for the year 2017 using the multiple-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $8,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash $ 56,000 Liabilities $ 43,000 Noncash assets 150,000 Alex, capital 105,000 Bess, capital 58,000 Total assets $ 206,000 Total liabilities and capital $ 206,000 Part A: Prepare journal entries for the following transactions: Distributed safe cash payments to the partners. Paid $25,800 of the partnership’s liabilities. Sold noncash assets for $163,000. Distributed safe cash payments to the partners. Paid remaining partnership liabilities of $17,200. Paid $6,400 in liquidation expenses; no further expenses will be incurred. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation.Required A Required B Prepare journal entries for the following transactions: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Distributed safe cash payments to the partners. b. Paid $25,800 of the partnership’s liabilities. c. Sold noncash assets for $163,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $17,200. f. Paid $6,400 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners.

The following balance sheet information is provided for Mash co. for 2018 :

what is the company's debt to assets ratio (rounded)?
a. 6%
b. 20%
c. 36%
d. 279%

ACC earned $8,000 in profit on net sales of $37,200 it's gross margin was $23,500 and its earnings before interst and taxes was $13,150. ACC's net margin is:
a. 465.0 %
b. 63.2%
c. 35.3%
d. 21.5%

Select the correct Statement regarding vertical analysis:
a. vertical analysis of the income statement involves showing each line item on the income statement as a percentage of total revenue (sales)
b. vertical analysis of the balance sheet involves showing each line item on the balance sheet as a percentage of total assets.
c. Both a,b are correct.
d. Nethier q, b correct.

Which of the following liquidity ratios is a conservative variation of the current ratio?
a. Quick Ratio
b. Book Value per Share.
c. Inventory Turnover
d. Debt to assets