On June 1, 2019, Whispering Company sold $2,940,000 in long-term bonds for $2,578,700. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year.

The bonds are to be accounted for under the effective-interest method.

1)Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31.

2)Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 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.)

Describe the accounting and reporting for re-acquisition of shares

Scenario: Davis Skaros has recently been promoted to production manager. He has just started to receive various managerial reports, including the production cost report you prepared. It showed his department had 2,000 equivalent units in ending inventory. His department has had a history of not keeping enough inventory on hand to meet demand. He has come to you, very angry, and wants to know why you credited him with only 2,000 units when he knows he had at least twice that many on hand.

Prepare a maximum 700-word informal memo and explain to Mr. Skaros why his production cost report showed only 2,000 equivalent units in ending inventory. Using a professional tone, explain to him clearly why your report is accurate.

What would be the account balance in the Cash account after the following transactions. Assume a zero beginning Cash balance.

What would the account balance in Accounts Receivable after the following transactions, assuming a zero beginning balance?

Performed services and left a bill with the customer $4,200

Performed services and collected immediately $3,500

Performed services and billed customer $2.200

Performed services on account $6,000

Received partial payment on account. $1,500

A partial trial balance of Ledger accounts at year-end had the following balances. If all the accounts have normal balances, what are the total debits on the Trial Balance?

The following information is available for three competing toy companies. Which company earned the highest return on assets?

A.

Company 1

B.

Company 2

C.

Company 3

D.

Cannot be calculated from the data provided.

The Nelson Company has $1,261,000 in current assets and $485,000 in current liabilities. Its initial inventory level is $350,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.8? Do not round intermediate calculations. Round your answer to the nearest dollar. What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.

On January 4 Crossway Co. sold merchandise to Mallard Company for $25,500, terms 2/10, n/60; shipping terms were FOB Destination. The merchandise had a cost of $14,000 to Crossway Co.

2. On January 6 Crossway paid freight costs of $500.

3. On January 8 Mallard returned $2,500 of the merchandise purchased on January 4 to Crossway and received credit. The merchandise had a cost of $1,400 to Crossway.

4. On January 9 Mallard paid the amount due to Crossway.
--Record the necessary journal entries for Crossway Co. Omit explanations.

1. On January 4 Crossway Co. sold merchandise to Mallard Company for $25,500, terms 2/10, n/60; shipping terms were FOB Destination. The merchandise had a cost of $14,000 to Crossway Co.

2. On January 6 Crossway paid freight costs of $500.

3. On January 8 Mallard returned $2,500 of the merchandise purchased on January 4 to Crossway and received credit. The merchandise had a cost of $1,400 to Crossway.

4. On January 9 Mallard paid the amount due to Crossway.
--Record the necessary journal entries for Mallard Company. Omit explanation

At the beginning of 20X1, the accounting records of Friends Corp. reported the following:

During the year, the company acquired and retired shares, while other shares were issued:

2. Calculate the closing balance in each account in shareholders’ equity. (Round intermediate calculations to 2 decimal places. Round your final answers to the nearest whole dollar.)

You are a financial manager for Zoom Corp., which manufactures bicycles. In the most recent fiscal year,                      
Zoom manufactured and sold 20,000 bicycles. Wheels, seats, and brake calipers are three components of                      
the bicycles currently manufactured by Zoom. Three different vendors have proposed to provide those                       
components to Zoom, and quoted prices (including shipping) for their delivery. Your task is to determine                      
which, if any, of these proposals should be accepted.                      

Prepare a make vs. buy incremental analysis for each possible course of action in an Excel worksheet. Your                      
grade will be based on the correctness of your answers, as well as the use of Excel. That is, where possible,                       
you should use formulas to get your answers, rather than keyed-in values. See your instructor for help with                       
Excel basics if you need it.                      

In a Word document, prepare a memo stating which of the proposals you suggest accepting, as well as the                      
basis for your conclusions. Also identify any nonfinancial factors you should consider before accepting any                      
of the outsourcing proposals.          

Below is cost data for Zoom's production of wheels, seats, and calipers. Outside suppliers have offered to                      
provide wheels for $6.90, seats for $9.39, and calipers for $2.14 per piece. Both wheels and seats are branded                      
with the Zoom logo, and that logo will need to be added at the Zoom factory at a cost of $0.50 each for any                      
of these components that are outsourced. For all three components, 75% of the fixed costs are avoidable, and                       
will be eliminated if the component's production is outsourced. In addition, seats and calipers are both                       
produced out of the same small factory space. If both seats and calipers were outsourced, Zoom could lease                      
the space out and increase net income by $6,000 per year, while eliminating all fixed costs for the two                      
components.                      
           

Hints: Prepare incremental analyses for each component separately. Make wheels vs. buy wheels, etc. Since                      
there are additional implications to outsourcing both seats and calipers, do a make vs. buy analysis assuming                      
both are outsourced. A correct solution, then, will likely have at least four incremental analyses.                      

The following items were selected from among the transactions completed by O’Donnel Co. during the current year:

The comparative balance sheet for company “Delta” in € for years 2017 and 2018 is
given below:

The income statement of company “Delta” for 2018 is also given below:

Required:
1. Prepare the cash flow statement using the indirect method. For your answer you
need to consider that company “Delta” has repurchased shares and it has
decreased respectively its share capital. (20%).
2. Which is the dividend payout ratio for “Delta” for year 2018? If the company
increases the dividend payout ratio by 10%, what would the effect be to the
retained earnings? (5%)
3. Is the increase of the dividend payout ratio a good signal and what is the impact
on the free cash flows? What do you think that an analyst should consider when

the dividend payout ratio increases? (max: 200 words) (5%)
4. What inferences can you draw from the analysis of “Delta” cash flows? Explain
briefly (max: 300 words) (10%)

What is controlling? Have you ever been controlled at work? Have you been orally warned or written up?

Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2019, the end of the fiscal year, the balances of selected accounts from the ledger of Optimum Weight Loss Co. are as follows: Accounts Payable $37,200 Accounts Receivable 118,550 Accumulated Depreciation-Equipment 187,000 Cash ? Equipment 477,200 Land 300,000 Prepaid Insurance 6,200 Prepaid Rent 21,900 Salaries Payable 9,300 Cheryl Viers, Capital 714,600 Supplies 4,500 Unearned Fees 17,300 Prepare a classified balance sheet that includes the correct balance for Cash. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.

McGilla Golf is evaluating a new line of golf clubs. The clubs will sell for $990 per set and have a variable cost of $445 per set. The company has spent $155,000 for a marketing study that determined the company will sell 50,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,400 sets of its high-priced clubs. The high-priced clubs sell at $1,490 and have variable costs of $620. The company also will increase sales of its cheap clubs by 12,000 sets. The cheap clubs sell for $445 and have variable costs of $175 per set. The fixed costs each year will be $9,600,000. The company has also spent $1,150,000 on research and development for the new clubs. The plant and equipment required will cost $30,800,000 and will be depreciated on a straight-line basis to a zero salvage value. The new clubs also will require an increase in net working capital of $2,500,000 that will be returned at the end of the project. The tax rate is 21 percent and the cost of capital is 14 percent. Suppose you feel that the values are accurate to within only ±10 percent.

What are the best-case and worst-case NPVs? (Hint: The price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain.) (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Best-case:
Worst-Case:

Appendix: Completing an End-of-Period Spreadsheet Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Alert Security Services Co. If a box does not require an entry, leave it blank. Alert Security Services Co. End-of-Period Spreadsheet (Work Sheet) For the Year Ended October 31, 2019 Adjusted Trial Balance Income Statement Balance Sheet Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 250 Accounts Receivable 1,830 Supplies 83 Prepaid Insurance 62 Land 2,080 Equipment 832 Accum. Depr.-Equipment 166 Accounts Payable 749 Wages Payable 83 Brenda Schultz, Capital 3,620 Brenda Schultz, Drawing 166 Fees Earned 2,038 Wages Expense 499 Rent Expense 250 Insurance Expense 208 Utilities Expense 146 Supplies Expense 125 Depreciation Expense 83 Miscellaneous Expense 42 Totals 6,656 6,656 Net income (loss) Check My Work