Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30). Apr. 2 Purchased $14,300 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60. 3 Sold merchandise on credit to Page Alistair, Invoice No. 760, for $4,000 (cost is $3,000). 3 Purchased $1,480 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM. 4 Issued Check No. 587 to World View for advertising expense, $899. 5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $8,000 (cost is $6,500). 6 Received an $80 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3. 9 Purchased $12,125 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM. 11 Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $10,500 (cost is $7,000). 12 Issued Check No. 588 to Noth Company in payment of its April 2 invoice less the discount. 13 Received payment from Page Alistair for the April 3 sale less the discount. 13 Sold $5,100 of merchandise on credit to Page Alistair (cost is $3,600), Invoice No. 763. 14 Received payment from Paula Kohr for the April 5 sale less the discount. 16 Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $10,750. Cashed the check and paid employees. 16 Cash sales for the first half of the month are $52,840 (cost is $35,880). 17 Purchased $13,750 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30. 18 Borrowed $60,000 cash from First State Bank by signing a long-term note payable. 20 Received payment from Nic Nelson for the April 11 sale less the discount. 20 Purchased $830 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM. 23 Received a $750 credit memorandum from Grant Company for the return of defective merchandise received on April 17. 23 Received payment from Page Alistair for the April 13 sale less the discount. 25 Purchased $11,375 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60. 26 Issued Check No. 590 to Grant Company in payment of its April 17 invoice less the return and the discount. 27 Sold $3,170 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,520). 27 Sold $6,700 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,305). 30 Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $10,750. 30 Cash sales for the last half of the month are $73,975 (cost is $58,900).

What are the solutions for Sales Journal?

Lamonda Corp. uses a job order cost system. On April 1, the accounts had balances as shown in the T-accounts below:

The following transactions occurred during April:

(a) Purchased materials on account at a cost of $233,470.
(b) Requisitioned materials at a cost of $112,200, of which $16,000 was for general factory use.
(c) Recorded factory labor of $223,700, of which $42,075 was indirect.
(d) Incurred other costs:

(e) Applied overhead at a rate equal to 127 percent of direct labor cost.
(f) Completed jobs costing $262,550.
(g) Sold jobs costing $322,670.
(h) Recorded sales revenue of $505,000.

Required:
1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Round your answers to 2 decimal places.)

3-a. Compute over- or underapplied manufacturing overhead. (Round your answer to 2 decimal places.)

3-b. If the balance in the Manufacturing Overhead account is closed directly to Cost of Goods Sold, will Cost of Goods Sold increase or decrease?

4. Prepare Lamonda’s cost of goods manufactured report for April. (Round your answers to 2 decimal places.)

5. Prepare Lamonda’s April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead. (Round your answers to 2 decimal places.)

Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April. (Round your answers to 2 decimal places.)

Prepare Lamonda’s cost of goods manufactured report for April. (Round your answers to 2 decimal places.)

Prepare Lamonda’s April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead. (Round your answers to 2 decimal places.)

42. The partnership agreement for Wilson, Pickett & Nelson, a general partnership, provided that profits be shared between the partners in the ratio of their financial contributions to the partnership. Wilson contributed $90,000, Pickett contributed $54,000 and Nelson contributed $18,000. In the partnership's first year of operation, it incurred a loss of $207,000. What amount of the partnership's loss, rounded to the nearest dollar, should be absorbed by Nelson?

46. Halverstein Company's outstanding stock consists of 12,250 shares of cumulative 5% preferred stock with a $10 par value and 5,250 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

The amount of dividends paid to preferred and common shareholders in Year 2 is:

47. Sweet Company’s outstanding stock consists of 1,100 shares of noncumulative 4% preferred stock with a $100 par value and 10,100 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

The total amount of dividends paid to preferred and common shareholders over the three-year period is:

50. On January 1, a company issues bonds dated January 1 with a par value of $450,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $432,619. The journal entry to record the first interest payment using straight-line amortization is:

Please explain answers. Thanks!

Presented below is information related to Sarasota Corporation for the current year.

Compute the ending inventory, assuming that (a) gross profit is 45% of sales, (b) gross profit is 60% of cost, (c) gross profit is 33% of sales, and (d) gross profit is 25% of cost. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answers to 0 decimal places, e.g. 28,987.)

Kimball International Inc. uses the LIFO method of accounting for inventory. In its 2017 inventory footnote Kimball reported a LIFO reserve of $19,500 and $21,100 at June 30, 2017 and 2016, respectively. Selected data from the financial statements is below 2017 2016 Total inventory $89,489 $76,146 Net Sales 923,636 895,912 Cost of Sales 664,311 645,591 Gross Profit 259,325 250,321 Earnings per Share $2.15 $1.96 a. Compute the inventory amount at June 30, 2017 for Kimball International Inc. assuming that it had used the FIFO method of accounting for inventory. (3 points) b. Does Kimball’s use of LIFO rather than FIFO affect its cash flows? Explain briefly. (2 points) -- Font family --Andale MonoArialArial BlackBook AntiquaComic Sans MSCourier NewGeorgiaHelveticaImpactSymbolTahomaTerminalTimes New RomanTrebuchet MSVerdanaWebdingsWingdings -- Font size --1 (8pt)2 (10pt)3 (12pt)4 (14pt)5 (18pt)6 (24pt)7 (36pt)

Larsen Company is a manufacturer of car seats. Each car seat passes through 1st the assembly department and 2nd testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is 90% complete. Conversion costs are added evenly during the testing department’s process. As work in assembly is completed, each unit is immediately transferred to testing. As each unit is completed in testing, it is immediately transferred to Finished Goods. Suppose that Larsen Company uses FIFO in all of its departments. Data for the testing department for October 2014 are as follows:

                                                   Physical      Transferred-          Direct             Conversion

                                                       units          In Costs           Materials                    Costs

Beg. work in process ^a                   7,500        $2,800,000        $0 $835,460

Transferred in currently                 ? =_____ <------ question

Units Completed [UC]                      26,300

End. work in process ^b                     3,700

Total costs added currently        - - - - - - -          $7,735,250       $9,704,700          $3,955,900

-----------------------------------
^aDegree of completion: transferred-in,?____%; direct materials,0%; conversion, 70%.

^bDegree of completion: transferred-in costs,100%; direct materials,0%; conversion costs, 60%.

[And answer Question 1-5 step by step]

Required: Fill in the blanks ABOVE and below. Grading will NOT consider your format and step-by-step solution:

1.a. Are the %s on Beg. Inventory REQUIRED for YOU to compute the equivalent units in the Required Item 1 below? Y/N? ____.

1.b. Compute the Current-period’s equivalent units in the TESTING department:

For the Transferred-in ______________, Direct Material ________________, and Conversion _____________________.

2. Is the total equivalent units the total of OUTPUT or INPUT done? My answer is it’s ________.

4. Calculate the Current-period’s Cost per equivalent unit for:

the Transferred-in ______________, Direct Material ________________, and

Conversion _______________.

5. Assign costs to the units completed and transferred out: $___________________;

and to those in ending work in process: $___________________.

The comparative balance sheets of First Solar Corporation are presented below.

First Solar Corporation

Comparative Condensed Balance Sheets

December 31

2018              2017

Assets

Current assets                            $ 90,000         $ 80,000

Property, plant, and equipment (net)         95,400            90,000

Intangibles                                  33,600            40,000

Total assets                            $219,000          $210,000

Liabilities and stockholders' equity                                   

Current liabilities                       $ 58,320         $ 48,000

Long-term liabilities                       142,500           150,000

Stockholders' equity                         18,180            12,000

Total liab & stockholders' equity       $219,000          $210,000

Instructions

(a) Prepare a horizontal analysis of the balance sheet data using 2017 as a base.

(b) Prepare a vertical analysis of the balance sheet data in columnar form for 2018.

On January 1, 2016, Calvert Company issues 9%, $100,000 face value bonds for $103,673.08, a price to yield 7%. The bonds mature on December 31, 2017. Interest is paid semiannually on June 30 and December 31.

Required:

Problem 5-5A a-c (Video)

Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 currently spent. In addition, Mary is proposing that a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary’s ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety.

Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are used.

Current break-even point pairs of shoes

New break-even point pairs of shoes

Compute the margin of safety ratio for current operations and after Mary’s changes are introduced. (Round answers to 0 decimal places, e.g. 15%.)

Current margin of safety ratio %

New margin of safety ratio %

Prepare a CVP income statement for current operations and after Mary’s changes are introduced.

BARGAIN SHOE STORE
CVP Income Statement

Current

New

Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Expenses

$

$

Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Expenses

Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Expenses

Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Expenses

Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Expenses

$

$

Would you make the changes suggested?

7.Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $45 par value (no change during the year) $12,600,000 Preferred $10 stock, $200 par (no change during the year) 8,000,000 The net income was $960,000 and the declared dividends on the common stock were $70,000 for the current year. The market price of the common stock is $16.00 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places. a. Earnings per Share $ b. Price-Earnings Ratio c. Dividends per Share $ d. Dividend Yield %

On January 1, 2015, when its $30 par value common stock was selling for $80 per share, a corporation issued $30 million of 10% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert it into six shares of the corporation’s $30 par value common stock. The debentures were issued for $31 million. At the time of issuance, the present value of the bond payments was $28.50 million, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2016, the corporation’s $30 par value common stock was split 3 for 1. On January 1, 2017, when the corporation’s $10 par value common stock was selling for $90 per share, holders of 40% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums.

Required:

1.what is the challenge in budgeting if the business is a SKI resort and cash flows vary with the season. 2. as a new owner of an existing business what resources do you have to prepare a porforma cash budget. 3.Is there any volume limit that is impractical to achieve given the current fixed capital