On May 31, 2014, Franklin Company purchased a machine for $205,000. The machine has useful life 5 years or 100,000 units with $5,000 salvage value. Franklin uses 14,000 units in 2014 and 38,000 units in 2015. Compute depreciation expense for 2014 and 2015 and prepare the necessary JOURNAL ENTRIES at year end December 31 using the following methods:

1.   Straight-line

2.   Units of activity

3.   Double-Declining Balance

Selected financial information for the Adelphi Company for the fiscal years ended December 31, 2018 and 2017 follows. Prepare a cash flow statement using the indirect method. Properly title the statement.

Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales:

Patrick's policy is to have 23% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,500 drums of solvent on hand.

Required:

Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total. If required, round your answers to the nearest whole unit.

Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,050,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below:

20182019

Costs incurred during the year$304,000 $1,595,000

Estimated costs to complete as of 12/31 1,216,000  0

Billings during the year 385,000  1,630,000

Cash collections during the year 252,000  1,755,000

Required:
1. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion.
2. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming this project does not qualify for revenue recognition over time.
3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming Nortel recognizes revenue over time according to percentage of completion.
4. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming this project does not qualify for revenue recognition over time.

• Required 1
• Required 2
• Required 3
• Required 4

Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion. (Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer.)

1. Green, Inc., a C corporation, distributes a tract of land held as an investment (FMV = $500,000, basis = $220,000) and its mortgage of $550,000 to Susan at the end of the year. Green, Inc. has a current E&P of $190,000 for the year, and started the year an accumulated E & P of $60,000. Green’s marginal tax rate is 21%. Susan has an individual marginal tax rate of 33% and both a dividend and a long-term capital gains tax rate of 15%. Susan owns 200 of Green’s 1,000 shares outstanding and her basis in her Green stock is $20,000. Susan has held her stock for two years. The distribution does not qualify as a stock redemption, but would be classified as a qualified dividend.  

1. What is Green’s recognized gain on the distribution?            __________________

2. What is the increase in Green’s tax liability as a result of the distribution?

__________________

3. What is the amount of Susan’s distribution?                         __________________

4. How much of the distribution is classified as a dividend?            __________________

5. How much of the distribution is classified as a return of capital?                                                                                                                             __________________

6. How much of the distribution is taxed as a capital gain?            __________________

7. What is the increase in Susan’s tax liability as a result of the distribution?                                                                                                               __________________

8. What is Green’s ending E&P (after the distribution)?            __________________

1. What is Susan’s basis in the land?                                         __________________

10. What is Susan’s ending basis in her Green stock?                 __________________

1. Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company

   The following information is available for Shanika Company for 20Y6:

   Inventories	January 1	December 31
   Materials	$212,250	$267,440
   Work in process	382,050	363,720
   Finished goods	367,190	371,740
   Advertising expense		$181,590
   Depreciation expense-office equipment		25,670
   Depreciation expense-factory equipment		34,500
   Direct labor		411,860
   Heat, light, and power-factory		13,640
   Indirect labor		48,140
   Materials purchased		403,830
   Office salaries expense		140,940
   Property taxes-factory		11,230
   Property taxes-headquarters building		23,270
   Rent expense-factory		18,990
   Sales		1,890,800
   Sales salaries expense		232,140
   Supplies-factory		9,360
   Miscellaneous costs-factory		5,880

   Required:

   1. Prepare the statement of cost of goods manufactured.

   Shanika Company
   Statement of Cost of Goods Manufactured
   For the Year Ended December 31, 20Y6
   			$fill in the blank 7e5f500ad068063_2
   Direct materials:
   	$fill in the blank 7e5f500ad068063_4
   	fill in the blank 7e5f500ad068063_6
   	$fill in the blank 7e5f500ad068063_8
   	fill in the blank 7e5f500ad068063_10
   		$fill in the blank 7e5f500ad068063_12
   		fill in the blank 7e5f500ad068063_14
   Factory overhead:
   	$fill in the blank 7e5f500ad068063_16
   	fill in the blank 7e5f500ad068063_18
   	fill in the blank 7e5f500ad068063_20
   	fill in the blank 7e5f500ad068063_22
   	fill in the blank 7e5f500ad068063_24
   	fill in the blank 7e5f500ad068063_26
   	fill in the blank 7e5f500ad068063_28
   Total factory overhead		fill in the blank 7e5f500ad068063_29
   Total manufacturing costs incurred			fill in the blank 7e5f500ad068063_30
   Total manufacturing costs			$fill in the blank 7e5f500ad068063_31
   			fill in the blank 7e5f500ad068063_33
   Cost of goods manufactured			$fill in the blank 7e5f500ad068063_34

   2. Prepare the income statement.

   Shanika Company
   Income Statement
   For the Year Ended December 31, 20Y6
   			$fill in the blank 16f120f76026010_2
   Cost of goods sold:
   		$fill in the blank 16f120f76026010_4
   		fill in the blank 16f120f76026010_6
   		$fill in the blank 16f120f76026010_8
   		fill in the blank 16f120f76026010_10
   			fill in the blank 16f120f76026010_12
   			$fill in the blank 16f120f76026010_14
   Operating expenses:
   Administrative expenses:
   	$fill in the blank 16f120f76026010_16
   	fill in the blank 16f120f76026010_18
   	fill in the blank 16f120f76026010_20	$fill in the blank 16f120f76026010_21
   Selling expenses:
   	$fill in the blank 16f120f76026010_23
   	fill in the blank 16f120f76026010_25	fill in the blank 16f120f76026010_26
   Total operating expenses			fill in the blank 16f120f76026010_27
   			$fill in the blank 16f120f76026010_29

The treasurer of Calico Dreams Company has accumulated the following budget information for the first two months of the coming fiscal year:

The company expects to sell about 35% of its merchandise for cash. Of sales on account, 80% are collected in full in the month of the sale, and the remainder in the month following the sale. One-fourth of the manufacturing costs are paid in the month in which they are incurred, and the other three-fourths in the following month. Depreciation, insurance, and property taxes represent $6,400 of the monthly selling and administrative expenses. Insurance is paid in February, and property taxes are paid yearly in September. A $40,000 installment on income taxes is to be paid in April. Of the remainder of the selling and administrative expenses, one-half are to be paid in the month in which they are incurred and the balance in the following month. Capital additions of $250,000 are paid in March.

Current assets as of March 1 are composed of cash of $45,000 and accounts receivable of $51,000. Current liabilities as of March 1 are accounts payable of $121,500 ($102,000 for materials purchases and $19,500 for operating expenses). Management desires to maintain a minimum cash balance of $25,000.

Questions: (please enter answers in the correct order)

a. What are the total collections of accounts receivables for March?

b. What are the total cash receipts for April?

c. What are the total manufacturing costs for March?

d. What is the cash balance at the end of April?

e. April excess/deficiency at the end of the month?

This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $230,000. Last year, their total tax liability was $190,000. They estimate that their tax withholding from their employers will be $198,000.

a. Are Paula and Simon required to increase their withholding or make estimated tax payments this year to avoid the underpayment penalty?

yes

no

b. By how much, if any. must Paula and Simon increase their withholding and/or estimated tax payments for the year to avoid underpayment penalties?

Increase in withholding

Martinez company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average cost per unit are as follows

direct materials $6.40
direct labor $3.90
variable manufacturing overhead $1.40
fixed manufacturing overhead $4.00
fixed selling expense $3.40
fixed administrative expense $2.10
sales commission $1.10
variable administrative expenses $0.55

11) if 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?

total manufacturing over head cost-
manufacturing overhead per unit-

12) If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? what is this total amount expressed on a per unit basis?

total manufacturing overhead cost-
manufacturing overhead unit-

13) if selling price is $22.40 per unit, what is the contribution margin per unit?

contribution margin per unit-

14) if 12,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?

total direct manufacturing cost-
total indirect manufacturing cost-

Sandra's Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

a) Using FIFO, calculate cost of goods sold on October 31.

b) Using FIFO, calculate ending inventory on October 31.

c) Using LIFO, calculate cost of goods sold on October 31.

d) Using LIFO, calculate ending inventory on October 31

e) Calculate weighted-average cost per unit. (Round your answer to 2 decimal places.)

he income statement, balance sheets, and additional information for Virtual Gaming Systems are provided.

Additional Information for 2021:

1. Purchase additional investment in stocks for $80,000.

2. Sell land costing $47,500 for $55,000, resulting in a $7,500 gain on sale of land.

3. Purchase $15,000 in equipment by issuing a $15,000 long-term note payable to the seller. No cash is exchanged in the transaction.

4. Declare and pay a cash dividend of $105,000.

5. Issue common stock for $45,000.

  
Required:

Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.)

19. (Mod. 6) ABC Hospital is a non-profit entity that does not have to pay income taxes. Management is considering buying an automated blood analysis machine that will significantly reduce the time a lab technician spends working on a blood sample. The machine will cost $80,000.00. Unfortunately, the machine’s operating life is somewhat short, and management expects it will be discarded (no salvage value) at the end of four years. During its four year operating life, however, expected savings in annual variable costs should amount to roughly $30,000.00 (measured at the end of each year). If it purchases the machine, the company will have to borrow the entire $80,000 at an annual interest rate of 8% (APR).

Complete and submit an EXCEL worksheet, showing your work, and answers highlighted in yellow,
(a) the present value of the expected overall savings in operating costs during the four years if the machine is purchased.
(b) the Internal Rate of Return on this investment.
(c) a narrative indicating whether, based on the calculations in (a) and (b), whether purchasing the machine makes sense.

Determine the best alternative among the options in the table below if the MARR is 6%.

a) Using Excel, construct a choice table for interest rates from 0% to 25% showing the NPV of each option for each interest rate using the NPV function. Based on the table, state the range of interest rates over which each option should be chosen.

b) Using Excel, plot the values for the three options for a rate interest ranging from 1% to 25%. This table will plot the NPV of each option as a function of interest rate. On the plot, label the internal rate of return for each option. Interpret the results of the graph.

c) In Excel, use the IRR function that you have to perform a rate of return analysis on the three options.The MARR=6%. Show the calculated values of each internal rate of return, expressed to 2 decimal places. Explain any decision to consider or reject an option.

Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 50,000 Sales tax 2,700 Freight charges for shipment of equipment 750 Insurance on the equipment for the first year 950 Installation of equipment 1,500 The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Pretend it is early 2002 and you are Senator Paul Sarbanes.  What would you do differently when writing the Sarbanes-Oxley Act? (Do not say you think it is perfect and you would not do anything differently. Discuss at least two things you would do differently.please explain in detail.