1.) On August 1,2018, the Corporation issued P 5,000,000, 8% bonds dated March 1,2018 and maturing on February 28, 2030, for a total consideration of P 4,458,429 which includes accrued interest. The bonds pay interest annually every February 28. The issue price provides a yield of 10%. Corporation closes its books annually every December 31.

REQUIRED:

(a)Prepare all entries in the books of Corporation for the years 2018 and 2019, including year-end adjustments.

(b) How much is interest expense for years 2018 and 2019?

(c)At what amount should the bonds payable be shown on the statement of financial position at December 31,2018 and December 31,2019?

2.) On December 1,2018, the Corporation issued five-year, non-convertible P 5,000,000 face value 12% bonds for P 5,386,072, a price that yields 10%. Interest is payable semi- annually on June 1 and December 1.

On August 1,2021, the Corporation retired P 3,000,000 of the bonds at 105 plus accrued interest. The accounting period for the Corporation is the calendar year.

REQUIRED:

(a) Carrying value of the bonds on December 31,2019

(b)Interest expense for the year ended December 31, 2019

(c)Carrying value of the bonds retired on August 1, 2021

(d)Gain or loss on redemption of the bonds on August 1,2021

(e)Carrying value of the bonds on December 31,2021

(f)Interest expense for the years ended December 31, 2021 and 2022

3.) On January 1, 2018, the Corporation issued P 8,000,000 bonds. The bonds pay interest annually at 12% on the outstanding balance. The face value of the bonds is payable in installments of P 2,000,000 every December 31, starting December 31, 2018. The bonds were sold at a price that yields 8%.

REQUIRED: Determine the following:

(a) Determine the issue price of the bonds on January 1,2018.

(b) Prepare an amortization table using the effective interest method.

(c)Prepare entries in the books of Corporation for years 2018 through 2021 related to the bonds.

4.) Company issued P 10,000,000 bonds on bond issue date, December 31,2018. The bonds pay interest annually at 8% on the outstanding bond balance. The face value of the ends is payable in installments of P 2,000,000 every December 31, starting December 31, 2019. The bonds were sold at a price that yields 12%.

REQUIRED: Determine the following:

(a) Determine the issue price of the bonds on December 31,2018.

(b) Prepare an amortization table using the effective interest method.

(c)Prepare entries in the books of Company for years 2019 through 2021 related to the bonds.

5.) Company issued P 4,000,000 of 8 ½%, 5- year bonds on March 1,2018. Interest payment dates are March 1 and September 1. With a market interest rate of 9%, the bonds were sold for P 3,926,000.

Company retired all of the bonds on September 30,2021 at 101 plus accrued interest.

REQUIRED: Determine the following:

(a) What is the amount of interest expense and discount amortization that company will record on September 1,2018, the first semi- annual interest payment date?

(b) What is the carrying amount of the bonds on the December 31, 2019 statement of financial position, after all year-end adjustments are made?

(c) What amount of cash was paid for the retirement of bonds and payment of accrued interest on May 31, 2021?

What is the gain or loss on retirement of the bonds?

6.) On January 2,2018, Company issued P 10 million of 12% bonds for P 12,734,120 due December 31,2024. Legal and other costs of P 50,000 were incurred in connection with the issue. Interest on the bonds is payable annually each December 31.

Using a financial calculator, the effective interest rate on the these bonds was computed to be 8%, after considering the bond issued cost of P 50,000.

The bonds are callable at 110, and on December 31,2021, after paying the periodic interest, company called P 4,000,000 face amount of the bonds and retired them.

REQUIRED: Determine the following:

(a) Amortization of the premium for the year ended December 31,2018

(b)Carrying value of the bonds on December 31,2021

(c)Gain or loss on retirement of the bonds on December 31, 2021

(d)Interest expense for the year ended December 31, 2022

Carrying value of the bonds on December 31,2022

Exercise 5-12

Presented below is the trial balance of Stellar Corporation at December 31, 2020.

Prepare a balance sheet at December 31, 2020, for Stellar Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Create comprehensive audit programs for the Sales and Receivables So each audit program would include the following components:

• Audit steps for tests of controls, balances, transactions, analytical procedures, etc. as well as other considerations such as sample size and sample methodology.

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation 1 2 3 4 Taxable income $ 137 $ 319 $ 325 $ 416 Future deductible amounts 28 33 33 Future taxable amounts 28 28 56 Balance(s) at beginning of the year: Deferred tax asset 4.6 22 9.2 Deferred tax liability 4.6 4.6 The enacted tax rate is 40%. Required: For each situation, determine the following:

You are a staff accountant at a higher education institution, Philly College of Business (“the College” or PCB). The lease on the current multifunction copiers the College uses is almost up. The college has decided to replace the current copiers with Canon imageRunner AdvanceC55501 copiers. The following is the information you have been able to gather so far related to renting the copiers. The IT department was able to negotiate the following lease terms to rent the 15 copiers needed.

• The lease is non-cancelable

• 5-year lease term (estimated economic life is also 5-years)

• The local Canon dealer is responsible for all repairs and maintenance on the copiers during the lease term.

• The base rent per copier is $146.93/month. There is an additional charge of $0.0068 per page copied or printed per month.

• The IT department estimates that the College will average 10,000 to 20,000 copies per month per copier.

• The current fair market value of the copiers is $9,190 per copier.

• The copiers will be returned to the local Canon dealer when the lease term is over.

• The unguaranteed residual value is estimated to be $900 at the end of the lease.

Question

The CFO has asked you to prepare an analysis including supporting calculations on the impact to the balance sheet and income statement in each of the next 6 years of a second option related to the copiers - leasing the imageRunner AdvanceC55501copiers. In addition, the CFO would like you to compare the two options (purchase copiers with cash on hand and lease copiers). Your analysis for the CFO should be in the form of a 1-2 page memo plus supporting tables. Assume the lease term on the copiers begins October 31, 2018. At a minimum your supporting tables should include the following. You may also want to include some or all of your tables from part 1 of the project.

a. Lease amortization table (if you determine this would be a finance lease)

b. A schedule of the journal entries for each of the next 6 years, 2018 – 2023 related to the lease

c. A table summarizing the balance sheet and income statement impact in each of the six years (for both options)

d. A table calculating and comparing the present value of the net cash flows for each of the options: purchase with cash on hand and lease the copiers.

Assume the incremental borrowing rate is 6.1%

   The pretax financial income (or loss) figures for Jerry Springer Company are as

   follows.

               2009          $210,000

               2010            180,000

               2011            140,000

               2012           (220,000)

               2013           (230,000)

               2014              90,000

               2015            115,000

   Pretax financial income (or loss) and taxable income (or loss) were the same for all

years involved. Assume a 40% tax rate for 2009 and 2010 and a 35% tax rate for the

remaining years.

   Instructions:

      Prepare the journal entries for the years 2011 to 2015 (5 years) to record income tax

      expense and the effects of the net operating loss carry-backs and carry-forwards

      assuming Jerry Springer Company uses the carry-back provision. All income and

      losses relate to normal operations. (In recording the benefits of a loss carry-forward,

      assume that no valuation account is deemed necessary.)

Cheyenne Corp. was experiencing cash flow problems and was unable to pay its $113,000 account payable to Culver Corp. when it fell due on September 30, 2020. Culver agreed to substitute a one-year note for the open account. The following two options were presented to Cheyenne by Culver Corp.:

Assume that Culver Corp. has a December 31 year end.

A. Assuming Cheyenne Corp. chooses Option 1, prepare the entries required on Culver Corp.’s books on September 30, 2020, December 31, 2020, and September 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

B. Assuming Cheyenne Corp. chooses Option 2, prepare the entries required on Culver Corp.’s books on September 30, 2020, December 31, 2020, and September 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

A list of possible accounts is as follows:

Closing Entries (Net Income)

The work sheet for Major Advising for the month ended January 31, 20-- is shown.

1. Enter the existing balance for each T account. Select Bal. and enter the amount.

3. Post the closing entries to the T accounts. If there is more than one closing entry for an account, enter in the order given in the journal.

2. Prepare closing entries in general journal form. Then post the closing entries to the T accounts.

Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $470,000 and results in 77,000 units of MSB and 107,000 units of CBL. Each MSB sells for $3, and each unit of CBL sells for $11.

3. Assume the commercial building lumber is not marketable at split-off but must be further planed and sized at a cost of $557,800 per production run. During this process, 11,700 units are unavoidably lost; these spoiled units have no value. The remaining units of commercial building lumber are saleable at $11.00 per unit. The mine support braces, although saleable immediately at the split-off point, are coated with a tarlike preservative that costs $270,000 per production run. The braces are then sold for $13.50 each. Using the net-realizable-value basis, compute the completed cost assigned to each unit of commercial building lumber. (Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answer to 2 decimal places.)

PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2]

Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:

Required:
1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.)

  
2. Calculate Hermosa’s contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $800. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.))

4. Calculate Hermosa’s break-even point in units and sales revenue. (Round your answers to the nearest whole number.)

How to analyze the cost-effectiveness in general of the article by Ekwaru. J.P., Ohinmas, A., Tran, B.X., Setayeshgar, S., Johnson, J.A., & Veugeiers, P.J. (2017). Cost-effectiveness of a school based health promotion program in Canada: A life-course modeling approach.

i've been reading about cash flow diagrams, disbursements and receipts. In the engineering economics textbook i'm reading, its says " since earlier cash flows are more valuable than later cash flows, we cannot just add them together. Instead, each alternative is resolved into a set of cash flows".

1. can you try to help me understand the basic ideas of cash flows and cash flow diagrams? maybe provide a few basic examples to solidify the concept

2. please explain why we cannot just add them too

Reporting on Discontinued Operations—Disposal in Current Year

On August 1, 2020, Fischer Inc. decided to discontinue the operations of its Services Division, which qualifies as a business component. An agreement was formalized to sell this component for $436,800 cash. The book value of the assets of the Services Division was $504,000. The disposal date was August 1, 2020. The income tax rate is 25%, and the accounting year-end is December 31. On December 31, 2020, the pretax income from all operations, including an operating loss of $56,000 incurred by the Services Division prior to August 1, 2020, was $1,120,000. There were 150,000 weighted average common shares outstanding during 2020.

Required

Prepare a partial income statement beginning with income from continuing operations. Include the earnings per share disclosures.

• Use a negative sign to indicate a loss.
• Round the per share amounts to two decimal places.

Answer

At the beginning of the year, Learer Company’s manager estimated total direct labor cost assuming 45 persons working an average of 2,000 hours each at an average wage rate of $25 per hour. The manager also estimated the following manufacturing overhead costs for the year.

At year-end, records show the company incurred $1,820,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $610,000; Job 202, $569,000; Job 203, $304,000; Job 204, $722,000; and Job 205, $320,000. In addition, Job 206 is in process at the end of the year and had been charged $23,000 for direct labor. No jobs were in process at the beginning of the year. The company’s predetermined overhead rate is based on direct labor cost.

Required
1-a. Determine the predetermined overhead rate for the year.
1-b. Determine the total overhead cost applied to each of the six jobs during the year.
1-c. Determine the over- or underapplied overhead at the year-end.
2. Assuming that any over- or underapplied overhead is not material, prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold at the end of the year.