Condensed financial data of Monopoly Corporation appear below: A cash dividend was declared and paid in full to stockholders during the year. Required: Solve for the missing numbers.
Solve for the missing numbers.
Solve for the missing numbers.
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Solve for the missing numbers. (Enter any deductions and cash outflows as a negative value.)
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In: Accounting
In: Accounting
Ajax entered into a four-year finance lease that specifies eight equal minimum semi-annual lease payments. Each payment is composed of two things: interest expense and a reduction in the net lease liability. The portion of the fourth lease payment applicable to the reduction of the net lease liability should be
Question 10 options:
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more than in the fifth payment. |
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the same as in the third payment. |
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less than in the fifth payment. |
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less than in the third payment. |
In: Accounting
PROBLEM 1
Match the internal control in the first column with
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INTERNAL CONTROL |
a. CONTROL ACTIVITY |
b. TRANSACTION- |
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1. |
Sales invoices are matched with shipping documents by the computer system and an exception report is generated. |
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2. |
Receiving reports are prenumbered and accounted for on a daily basis. |
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3. |
Sales invoices are independently verified before being sent to customers. |
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4. |
Payments by check are received in the mail by the receptionist, who lists the checks and restrictively endorses them. |
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5. |
Labor hours for payroll are reviewed for reasonableness by the computer system. |
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6. |
Checks are signed by the company president, who compares the checks with the underlying supporting documents. |
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7. |
Unmatched shipping documents are accounted for on a daily basis. |
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8. |
The computer system verifies that all payroll payments have a
valid employee identification number assigned |
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9. |
The accounts receivable master file is reconciled to the general ledger on a monthly basis. |
In: Accounting
The Diversified Portfolio Corporation provides investment advice
to customers. A condensed income statement for the year ended
December 31, 2018, appears below:
| Service revenue | $ | 1,220,000 |
| Operating expenses | 900,000 | |
| Income before income taxes | 320,000 | |
| Income tax expense | 96,000 | |
| Net income | $ | 224,000 |
The following balance sheet information also is
available:
| 12/31/18 | 12/31/17 | ||||
| Cash | $ | 439,000 | $ | 90,000 | |
| Accounts receivable | 160,000 | 120,000 | |||
| Accounts payable (operating expenses) | 110,000 | 80,000 | |||
| Income taxes payable | 30,000 | 55,000 | |||
In addition, the following transactions took place during the
year:
Required:
1. Prepare a statement of cash flows for 2018 for
the Diversified Portfolio Corporation. Use the direct method for
reporting operating activities.
2. Prepare the cash flows from operating
activities section of Diversified’s 2018 statement of cash flows
using the indirect method.
In: Accounting
What is Corporate Governance? Identify the objectives of the good corporate governance.
In: Accounting
Alexa owns a condo near Cocoa Beach in Flordia. This year, she incurs the following expenses in connection with her condo:
Insurance $3,500
Mortage interest $10,800
Property Taxes $3,700
Repairs and maintance $1,150
Ulitites $2,900
Depreciation $22,000
During the year, Alexa rented out the condo for 132 days. Alexa's AGI from all sources other than the rental properrty is $200,000. Unless otherwise specifies, Alexa has no sources of passive income.
Assume that in addition to renting the condo for 132 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $44,500 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo. Answer the following questions:
A) What is the total amount of for AGi deductions relating to the condo that Alexa may deduct in the current year? Assume shes uses the IRS method of allocating expenses between rental and personal days.
Gross rental income
Expenses:
Insurace
Mortage Interest
Property Taxes
Repairs and Maintenance
Utilities
Depreciation
Total Expenses
Balance-net rental income
Total for AGI deductions
B) What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days.
In: Accounting
(Recording the budget and a budget revision)
The council of the Town of Tulia approved the 2013 budget as follows:
Budgeted 2013 revenues from:
Property taxes $5,000,000
Sales taxes $1,000,000
Appropriations for 2013:
Salaries $4,600,000
Materials $1,200,000
Equipment $100,000
During 2013, the town’s mayor presented the council with a budget revision to increase the amount of appropriation for salaries by $10,000. The council approved this budget revision.
a. Prepare the general journal entry necessary to initially record the budget.
b. Prepare the general journal entry necessary to record the budget revision.
In: Accounting
Problem 5.4 (LO1, 2) Variable and Full Costing: Earnings Management with Full Costing; Changes in Production and Sales Sampson Steel produces high-quality worktables. The company has been in operation for three years, and sales have declined each year due to increased competition. The following information is available:
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2020 |
2021 |
2022 |
Total |
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Units sold |
10,000 |
9,000 |
8,000 |
27,000 |
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Units produced |
10,000 |
10,000 |
7,000 |
27,000 |
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Fixed production costs |
$350,000 |
$350,000 |
$350,000 |
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Variable production costs per unit |
$100 |
$100 |
$100 |
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Selling price per unit |
$350 |
$350 |
$350 |
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Fixed selling and administrative expenses |
$300,000 |
$300,000 |
$300,000 |
Required
In: Accounting
Cost of Production Report
Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:
| ACCOUNT Work in Process—Roasting Department | ACCOUNT NO. | ||||||||
| Date | Item | Debit | Credit | Balance | |||||
| Debit | Credit | ||||||||
| July | 1 | Bal., 7,300 units, 3/5 completed | 19,126 | ||||||
| 31 | Direct materials, 328,500 units | 755,550 | 774,676 | ||||||
| 31 | Direct labor | 158,400 | 933,076 | ||||||
| 31 | Factory overhead | 39,636 | 972,712 | ||||||
| 31 | Goods transferred, 329,000 units | ? | |||||||
| 31 | Bal., ? units, 4/5 completed | ? | |||||||
Required:
1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.
| Hana Coffee Company | |||
| Cost of Production Report-Roasting Department | |||
| For the Month Ended July 31 | |||
| Unit Information | |||
| Units charged to production: | |||
| Inventory in process, July 1 | |||
| Received from materials storeroom | |||
| Total units accounted for by the Roasting Department | |||
| Units to be assigned costs: | |||
| Equivalent Units | |||
| Whole Units | Direct Materials | Conversion | |
| Inventory in process, July 1 | |||
| Started and completed in July | |||
| Transferred to Packing Department in July | |||
| Inventory in process, July 31 | |||
| Total units to be assigned costs | |||
| Cost Information | |||
| Cost per equivalent unit: | |||
| Direct Materials | Conversion | ||
| Total costs for July in Roasting Department | $ | $ | |
| Total equivalent units | |||
| Cost per equivalent unit | $ | $ | |
| Costs assigned to production: | |||
| Direct Materials | Conversion | Total | |
| Inventory in process, July 1 | $ | ||
| Costs incurred in July | |||
| Total costs accounted for by the Roasting Department | $ | ||
| Costs allocated to completed and partially completed units: | |||
| Inventory in process, July 1 balance | $ | ||
| To complete inventory in process, July 1 | $ | $ | |
| Cost of completed July 1 work in process | $ | ||
| Started and completed in July | |||
| Transferred to Molding Department in July | $ | ||
| Inventory in process, July 31 | |||
| Total costs assigned by the Roasting Department | $ | ||
Feedback
1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.
2. Assuming that the July 1 work in process inventory includes $16,060 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and July. If required, round your answers to the nearest cent.
| Increase or Decrease | Amount | |
| Change in direct materials cost per equivalent unit | Increase | $ |
| Change in conversion cost per equivalent unit | Decrease | $ |
In: Accounting
Red Red Wine is a wine bar that has been incorporated by Amie. It operates as a closelyheld corporation. The other shareholders are Amie’s brother and sister-in-law. Amie runs the day-to-day management of the wine bar, including managing the books and records. Amie’s brother and sister-in-law handle distribution, sales and marketing. After a few years, Amie starts to feel like she is doing the majority of the work and becomes bitter about the business relationship. She feels like she should be earning more money for the amount of work she does for the bar. Without discussing it with her brother and sister-in-law, Amie starts taking an additional draw from the wine bar every month in the amount of $1,000. She deposits the money into a business account for an LLC she created. On the books and records of the wine bar, Amie records this amount to the LLC as a “consultation fee.” Can Amie be held personally liable in this situation? If so, why?
In: Accounting
Exercise 1-8 Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4]
Kubin Company’s relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows:
| Average Cost per Unit | ||
| Direct materials | $ | 8.10 |
| Direct labor | $ | 5.10 |
| Variable manufacturing overhead | $ | 2.60 |
| Fixed manufacturing overhead | $ | 6.10 |
| Fixed selling expense | $ | 4.60 |
| Fixed administrative expense | $ | 3.60 |
| Sales commissions | $ | 2.10 |
| Variable administrative expense | $ | 1.60 |
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 23,000 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 23,000 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 21,000 units?
(For all requirements, do not round intermediate calculations.)
In: Accounting
PLEASE TELL ME HOW TO GET TO THESE ANSWERS AND SHOW WORK.
Below is the shareholders’ equity section of Matt Co.’s balance sheet for December 31, 2018 and December 31, 2017. Matt uses the treasury stock method to account for repurchases. During 2017, Matt repurchased 1,000 shares at $10 per share.
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December 31, 2018 |
December 31, 2017 |
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Common Stock (par value $0.01) |
120 |
100 |
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Paid-in Capital, in excess of par |
189,880 |
149,900 |
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Paid-in Capital, share repurchase |
3,200 |
0 |
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Treasury Stock |
(6,000) |
(10,000) |
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Retained Earnings |
54,000 |
53,000 |
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241,200 |
193,000 |
During 2018, the following events took place:
On January 17, Matt issued new common shares of stock to new investors for $20 per share.
On September 12, Matt reissued 400 of the shares it had in treasury.
On December 18, the company declared dividends of to be paid to shareholders. The dividend will be paid on January 6, 2019.
For the year 2018, Matt reported net income of $6,000.
2,000 new shares
Cash 40,000
Common Stock 20
Paid-in Capital, in excess of par 39,980
$18 per share
Cash 7,200
Treasury Stock 4,000
Paid-in Capital, share repurchase 3,200
53,000 + 6,000 – Dividends = 54,000
Dividends = $5,000
In: Accounting
Whitt Valley Presbyterian Hospital is a nonprofit initial care facility. For the hospital’s calendar year ending December 31, 2019, prepare (I) journal entries to record the transactions listed in a. through n. below, (II) a trial balance based on your entries and the beginning balances listed at o. below, and (III) a Statement of Operations and a Statement of Changes in Net Assets for the hospital.
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Without Donor Restrictions |
With Donor Restrictions |
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Debit |
Credit |
Debit |
Credit |
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Cash |
$1,485,000 |
$401,600 |
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Investments |
153,000 |
40,000 |
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Patient accounts receivable |
250,000 |
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Inventory—drugs |
401,000 |
|||
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Property, plant, and equipment |
4,400,000 |
|||
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Accumulated depreciation |
$600,000 |
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Accounts payable |
21,000 |
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Net assets, January 1, 2019 |
- |
6,068,000 |
- |
$441,600 |
|
$6,689,000 |
$6,689,000 |
$441,600 |
$441,600 |
|
In: Accounting
Acquisition Cost and Depreciation Reveille, Inc., purchased Machine #204 on April 1, 2016, and placed the machine into production on April 3, 2016. The following information is relevant to Machine #204: Price $60,000 Freight-in costs 2,500 Preparation and installation costs 3,900 Labor costs during regular production operation 10,200 Credit terms 2/10, n/30 Total productive output 138,500 units The company expects that the machine could be used for 10 years, after which the salvage value would be zero. However, Reveille intends to use the machine only 8 years, after which it expects to be able to sell it for $9,800. The invoice for Machine #204 was paid April 10, 2016. The number of units produced in 2016 and 2017 was 23,200 and 29,000, respectively. Reveille computes depreciation expense to the nearest whole month. Required: Compute the depreciation expense for 2016 and 2017, using the following methods. Round your answer to the nearest dollar. Straight-line method: 2016 depreciation = $ 2017 depreciation = $ Sum-of-the-years'-digits method: 2016 depreciation = $ 2017 depreciation = $ Double-declining-balance method: 2016 depreciation = $ 2017 depreciation = $ Activity method (units of production): 2016 depreciation = $ 2017 depreciation = $
In: Accounting