Analyze why they have used this way to answer the below question (The question is already answered I need analysis for the answer like a paragraph for each case)
Example: On 1/2/08, See-Saw Systems (S3) purchased a patent valued at €8 million; it had a useful life of 8 years with zero residual value, and S3 used straight-line depreciation. On 1/2/10, the fair value of the patent had decreased to €4.5 million. On 1/2/12, the fair value had increased to €6 million, and on 1/2/14, the fair value had dropped to €1 million. Assuming S3 uses the revaluation model, determine how the gains and losses are reported.
Straight-line amortization is €8 million ÷ 8 years = €1 million per year, so the book value on 1/2/10 is:
€8 million − 2(€1 million) = €6 million
The revaluation to €4.5 million results in a €1.5 million loss, which appears on S3’s income statement.
Straight-line amortization is now €4.5 million ÷ 6 years = €750,000 per year. On 1/2/12 the book value is:
€4.5 million − 2(€750,000) = €3 million
The revaluation to €6 million results in a €3 million gain. Because S3 had a previous €1.5 million loss on its income statement, the first €1.5 million of the gain is shown on the income statement to reverse the loss; the remaining €1.5 million gain goes to the Revaluation Surplus account on S3’s balance sheet.
Straight-line amortization is now €6 million ÷ 4 years = €1.5 million per year.
On 1/2/14 the book value is:
€6 million − 2(€1.5 million) = €3 million
The revaluation to €1 million results in a €2 million loss. Because S3 had a previous €1.5 million gain in the Revaluation Surplus account in equity, the first €1.5 million of the loss reduces the Revaluation Surplus account to zero. The remaining €500,000 million loss is shown on S3’s income statement.
In: Accounting
EX24-05
Service Department Charges
In divisional income statements prepared for LeFevre 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 $58,380, and the Purchasing Department had expenses of $22,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:
| Residential | Commercial | Government Contract |
|||||
| Sales | $460,000 | $609,000 | $1,399,000 | ||||
| Number of employees: | |||||||
| Weekly payroll (52 weeks per year) | 185 | 80 | 85 | ||||
| Monthly payroll | 32 | 43 | 30 | ||||
| Number of purchase | |||||||
| requisitions per year | 2,100 | 1,500 | 1,400 | ||||
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
| Residential | Commercial | Government Contract | Total | |
| Number of payroll checks: | ||||
| Weekly payroll | ||||
| Monthly payroll | ||||
| Total | ||||
| Number of purchase requisitions per year: | ||||
b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. If required, round your answers to two decimal places. Do not round your interim calculations, round your answers to two decimal places, if required.
| Service department charge rates: | |
| Payroll Department | $ payroll distribution |
| Purchasing Department | $ per requisition |
| Residential | Commercial | Government Contract | Total | |||||
| Service department charges: | ||||||||
| Payroll Department | $ | $ | $ | $ | ||||
| Purchasing Department | ||||||||
| Total | $ | $ | $ | |||||
c. Residential's service department charge is than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a number of check-issuing transactions.
In: Accounting
The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day:
Beginning WIP inventory Direct materials$970 Conversion costs 512 Current period costs Direct materials 21,510 Conversion costs 15,561
Quantity information is obtained from the manufacturing records and includes the following:
Beginning
inventory650units(60% complete as to materials,
56% complete as to conversion)Current period units
started5,600units Ending inventory1,800units(40% complete as
to materials,
20% complete as to conversion)
10) Required
information.
Required:
(1) Compute the equivalent units for the materials and
conversion cost calculations.
(2) Compute the cost per equivalent unit for direct
materials and for conversion costs using the FIFO
method. (Round your answers to 2 decimal
places.)
11.
Required información
Compute the cost of goods transferred out and the ending inventory
using the FIFO method. (Do not round intermediate
calculations.)
In: Accounting
Question 1
Question 2
|
In the space below, prepare a list of UPS’s investments from the following items:
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What valuation method the company uses for each type of investments?
|
Where are UNREALIZED gains or losses on each type of investments presented?
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Where are REALIZED gains or losses on each type of investments presented?
|
Question 3
From the 2017 financial statements of UPS, provide the amount for the following items:
In: Accounting
In: Accounting
how are capital gains on form 1120s taxes?
In: Accounting
The following income
statement and information about changes in noncash current assets
and current liabilities are reported.
|
SONAD COMPANY Income Statement For Year Ended December 31, 2017 |
||||||
| Sales | $ | 2,353,000 | ||||
| Cost of goods sold | 1,152,970 | |||||
| Gross profit | 1,200,030 | |||||
| Operating expenses | ||||||
| Salaries expense | $ | 322,361 | ||||
| Depreciation expense | 56,472 | |||||
| Rent expense | 63,531 | |||||
| Amortization expenses–Patents | 7,059 | |||||
| Utilities expense | 25,883 | 475,306 | ||||
| 724,724 | ||||||
| Gain on sale of equipment | 9,412 | |||||
| Net income | $ | 734,136 | ||||
Changes in current asset and current liability accounts for the
year that relate to operations follow.
| Accounts receivable | $ | 44,750 | increase | Accounts payable | $ | 8,450 | decrease | |||
| Inventory | 12,750 | increase | Salaries payable | 3,550 | decrease | |||||
Required:
Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
| Statement of Cash Flows (partial) | |
| Cash flows from operating activities | |
| Adjustments to reconcile net income to net cash provided by operating activities | |
| Income statement items not affecting cash | |
| Changes in current operating assets and liabilities | |
| $0 | |
In: Accounting
6.Harry’s Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. Wilson, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecasted sales figures:
| Actual | Forecast | Additional Information | |||||
| November | $360,000 | January | $440,000 | April forecast | $420,000 | ||
| December | 380,000 | February | 480,000 | ||||
| March | 430,000 | ||||||
Of the firm’s sales, 50 percent are for cash and the remaining
50 percent are on credit. Of credit sales, 50 percent are paid in
the month after sale and 50 percent are paid in the second month
after the sale. Materials cost 35 percent of sales and are
purchased and received each month in an amount sufficient to cover
the following month’s expected sales. Materials are paid for in the
month after they are received. Labor expense is 45 percent of sales
and is paid for in the month of sales. Selling and administrative
expense is 10 percent of sales and is also paid in the month of
sales. Overhead expense is $22,000 in cash per month.
Depreciation expense is $10,800 per month. Taxes of $8,800 will be
paid in January, and dividends of $6,000 will be paid in March.
Cash at the beginning of January is $96,000, and the minimum
desired cash balance is $91,000.
b. Prepare a schedule of monthly cash payments for January, February, and March.
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c. Prepare a monthly cash budget with borrowings and repayments for January, February, and March. (Negative amounts should be indicated by a minus sign. Assume the January beginning loan balance is $0.)
|
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In: Accounting
On the income statement, income from discontinued operations is shown: Multiple Choice without any income tax effect. as an accounting principle change. as a separate section of income from continuing operations. net of taxes after income from continuing operations.
In: Accounting
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:
| Accounts | Debit | Credit | |||||
| Cash | $ | 27,300 | |||||
| Accounts Receivable | 15,300 | ||||||
| Allowance for Uncollectible Accounts | $ | 4,200 | |||||
| Supplies | 4,200 | ||||||
| Notes Receivable (6%, due in 2 years) | 21,000 | ||||||
| Land | 80,600 | ||||||
| Accounts Payable | 9,100 | ||||||
| Common Stock | 101,000 | ||||||
| Retained Earnings | 34,100 | ||||||
| Totals | $ | 148,400 | $ | 148,400 | |||
During January 2021, the following transactions occur:
| January | 2 | Provide services to customers for cash, $52,100. | ||
| January | 6 | Provide services to customers on account, $89,400. | ||
| January | 15 | Write off accounts receivable as uncollectible, $3,900. | ||
| January | 20 | Pay cash for salaries, $33,100. | ||
| January | 22 | Receive cash on accounts receivable, $87,000. | ||
| January | 25 | Pay cash on accounts payable, $7,200. | ||
| January | 30 | Pay cash for utilities during January, $15,400. |
The following information is available on January 31, 2021.
REQUIREMENT:
1. Record each of the transactions listed above in the 'General
Journal' tab (these are shown as items 1-7). Review the 'General
Ledger' and the 'Trial Balance' tabs to see the effect of the
transactions on the account balances.
2. Record the adjusting entries in the 'General Journal' tab (these
are shown as items 8-11).
3. Review the adjusted 'Trial Balance' as of January 31, 2021, in
the 'Trial Balance' tab.
4. Prepare an income statement for the period ended January 31,
2021, in the 'Income Statement' tab.
5. Prepare a classified balance sheet as of January 31, 2021 in the
'Balance Sheet' tab.
6. Record the closing entries in the 'General Journal' tab (these
are shown as items 12 and 13).
7. Using the information from the requirements above, complete the
'Analysis' tab.
In: Accounting
Problem 6-19 Break-Even Analysis; Pricing [LO6-1, LO6-4, LO6-5] Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $96 per unit, and variable expenses are $66 per unit. Fixed expenses are $832,200 per year. The present annual sales volume (at the $96 selling price) is 25,300 units. Required: 1. What is the present yearly net operating income or loss? 2. What is the present break-even point in unit sales and in dollar sales? 3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?
In: Accounting
Identify two (2) pieces of information not included in the principle financial statements (balance sheet, income statements, financial ratios) and legal actions being taken against the company, that you think would be important to someone considering whether to invest in your company. Explain your reasons for believing that this information would be important in making an investment decision.
In: Accounting
The Phone Company has the following costs of producing and selling a cell phone when it produces and sells 100,000 cell phones per month: Per unit manufacturing cost Direct materials $60.00 Direct labor 10.00 Variable manufacturing overhead cost 35.00 Fixed manufacturing overhead cost 20.00 Per unit selling cost Variable 25.00 Fixed 10.00 Note that ‘100,000’ is the denominator used to calculate fixed costs per unit. Total fixed costs do not change regardless of production/sales level. The selling price of a cell phone is $250, unless otherwise stated in the questions below. Each situation below is independent of the other situations. That is, when you answer one question, assume that the situations described in other questions have not occurred. When you are considering opportunities for increased sales, assume that Phone Company has enough manufacturing capacity to make these sales without incurring additional fixed costs (i.e., it has excess capacity). S
The Phone Company has received an offer by a contract supplier to make and ship the Phone Company’s cell phone (100,000 units) directly to the Phone Company’s customers. The Phone Company will continue to do some product design and marketing but will no longer manufacture the phones itself. If the Phone Company accepts this offer, its variable manufacturing costs would be $0 and its fixed manufacturing cost would be reduced by 75% of its current level. In addition, its variable selling cost would decrease by one-third and its fixed selling cost would not change. How much per cell phone could the Phone Company pay the contract supplier if it wants to maintain its present level of operating income?
In: Accounting
Non-Value-Added Activities: Non-Value-Added Cost
Thayne Company has 28 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity:
| Activities | Percentage of Clerical Time |
| Comparing purchase orders and receiving orders and invoices | 10% |
| Resolving discrepancies among the three documents | 73 |
| Preparing checks for suppliers | 7 |
| Making journal entries and mailing checks | 10 |
| The average salary of a clerk is $40,100. |
Required:
Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity.
| Comparing documents | $fill in the blank 2 | |
| Resolving discrepancies | $fill in the blank 4 | |
| Preparing checks | $fill in the blank 6 | |
| Mailing checks | $fill in the blank 8 |
In: Accounting
When a bond sells at a premium, is the periodic interest expense less than, equal to, or greater than the periodic interest payment? Why? Be specific. State any accounting principles that must be invoked, and how that (those) principle(s) apply. What is the role of the premium account in your answer? Fully explain why as we practiced in class. Be concise, yet thorough in your explanation.
In: Accounting