Phillip and Case are in the process of forming a partnership to import Belgian chocolates, to which Phillip will contribute one-third time and Case full time. They have discussed the following alternative plans for sharing profit and losses. a. In the ratio of their initial investments, which they have agreed will be $164,000 for Phillip and $246,000 for Case. b. In proportion to the time devoted to the business. c. A salary allowance of $4,000 per month to Case and the balance in accordance with their initial investment ratio. d. A $4,000 per month salary allowance to Case, 10% interest on their initial investments, and the balance equally. The partners expect the business to generate profit as follows: Year 1, $101,000 loss; Year 2, $151,000 profit; and Year 3, $251,000 profit. Required: Complete a schedule for each of the four plans being considered by showing how the partnership profit or loss for each year would be allocated to the partners. (Enter all amounts as positive value. Round the final answer to the nearest whole dollar.)

Plan a

:year 1  calculations share to philp share to case total plan

year 2

year 3

plan B

year 1  calculations share to philp share to case total plan

year 2

year 3

It is now January 1, 2001. You plan to make only 5 deposits of $500 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 10%, but uses semiannual compounding, how much will be in your account after 5 years?

What is the difference between a multi-step income statement and a single-step income statement? Which one is preferable?

Five Measures of The ability of a company to make its periodic interest payments and repay the face amount of debt at maturity.Solvency or The ability of a firm to generate earnings.Profitability

The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:

Income before income tax was $545,300, and income taxes were $81,200 for the current year. Cash dividends paid on common stock during the current year totaled $72,072. The common stock was selling for $22 per share at the end of the year.

Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required.

Question:

Elmo has the following information for the month of October, its first month of operations

Work in Process October 1st $0

Units completed & transferred out in October $120,000

Work in Process October 30th $32,000

100% completed for materials

80% completed for conversion costs

Costs added in October shown below

Materials $145,900

Direct Labour $ 96,000

Overhead $108,000

(1.) Determine the equivalent units of production for October.

(2.) Determine the cost of the ending work-in-process.
(3.) Determine the cost of goods completed.
(4) What is meant by the term equivalent full units?

Costco purchased a truck from a company going out of business for $40,000. An appraisal indicated the fair value of the truck to be $42,000. Costco estimated the truck would provide future benefits for 3 years and would bring an $8,800 residual value at the end of the 3-year period.

How much is the depreciation expense for the second year if the company uses the double- declining-balance method?

On July 31, 2017, Wildhorse Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed on November 1, 2017. To help finance construction, on July 31 Wildhorse issued a $328,800, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $232,800 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Wildhorse made a final $96,000 payment to Minsk. Other than the note to Netherlands, Wildhorse’s only outstanding liability at December 31, 2017, is a $28,600, 8%, 6-year note payable, dated January 1, 2014, on which interest is payable each December 31. Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2017. Interest revenue $ Weighted-average accumulated expenditures $ Avoidable interest $ Interest capitalized $ Prepare the journal entries needed on the books of Wildhorse Company at each of the following dates. (Credit account titles are automatically indented when 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.) (1) July 31, 2017. (2) November 1, 2017. (3) December 31, 2017. Date Account Titles and Explanation Debit Credit (To record the note.) (To record the payment to Minsk.) (To record the proceeds from the investment.) (To record the payment to Minsk.) 12/31 Click if you would like to Show Work for this question: Open Show Work

Beans manufactures a single product, details of which are as follows.

Annual fixed production overheads are budgeted to be $10 million and the company expects to produce 200,000 units each year. Overheads are absorbed on a per unit basis.

Fixed operational expenses for the quarter are as follows

·         Selling costs $400,000

·         Administrative costs $1,500,000

·         Distribution costs $600,000

Actual stock data for quarter of 2020 are given below.

Required-

a.       Calculate Opening stock.

b.      Prepare a Marginal Costing Statement.

c.       Prepare an Absorption Costing Statement.

d.      Reconcile profit figures from both statements.

1. Accounting information can be considered the heart of business. Decision making is never without accurate and reliable information. The users of accounting information can be internal and external. They use accounting information with different goals. Explain how basic knowledge of accounting can benefits the managers, executives, or the entrepreneur.

Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $56 per unit. The company’s unit costs at this level of activity are given below:

A number of questions relating to the production and sale of Daks follow. Each question is independent.

Required:

1-a. Assume that Andretti Company has sufficient capacity to produce 106,600 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 30% above the present 82,000 units each year if it were willing to increase the fixed selling expenses by $140,000. What is the financial advantage (disadvantage) of investing an additional $140,000 in fixed selling expenses?

1-b. Would the additional investment be justified?

2. Assume again that Andretti Company has sufficient capacity to produce 106,600 Daks each year. A customer in a foreign market wants to purchase 24,600 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $1.70 per unit and an additional $22,140 for permits and licenses. The only selling costs that would be associated with the order would be $1.50 per unit shipping cost. What is the break-even price per unit on this order?

3. The company has 600 Daks on hand that have some irregularities and are therefore considered to be "seconds." Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What is the unit cost figure that is relevant for setting a minimum selling price?

4. Due to a strike in its supplier’s plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 35% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period.

a. How much total contribution margin will Andretti forgo if it closes the plant for two months?

b. How much total fixed cost will the company avoid if it closes the plant for two months?

c. What is the financial advantage (disadvantage) of closing the plant for the two-month period?

d. Should Andretti close the plant for two months?

5. An outside manufacturer has offered to produce 82,000 Daks and ship them directly to Andretti’s customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead costs would be reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. What is Andretti’s avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?

1. Differentiate historical cost concept from the fair value cost concept of measurement. State clearly their advantages and disadvantages.

Preparation of Balance Sheet

Conlon Corporation's December 31 post-closing trial balance contains the following normal account balances:

Required

Prepare a December 31 classified balance sheet for Conlon Corporation.

Do not use negative signs with any of your answers.

11. What is the difference between a repurchase agreement and a reverse repurchase agreement?

18. Who are the major issuers of and investors in money market securities?

7. You can purchase a T-bill that is 95 days from maturity for $9,965. The T-bill has a face value of $10,000.

1. Calculate the T-bill’s quoted yield.

2. Calculate the T-bill’s bond equivalent yield.

3. Calculate the T-bill’s EAR.

4. On January 1 of Year 1, Congo Express Airways issued $4,600,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $4,280,000 and the market rate of interest for similar bonds is 9%. The bond premium or discount is being amortized using the straight-line method at a rate of $10,000 every 6 months. The life of these bonds is:

9. Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership’s capital balances are Caitlin, $132,000; Chris, $92,000; and Molly, $112,000. Paul is admitted to the partnership on July 1 with a 20% equity and invests $172,000. The balance in Caitlin’s capital account immediately after Paul’s admission is:

14. Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership’s capital balances are Caitlin, $132,000; Chris, $92,000; and Molly, $112,000. Paul is admitted to the partnership on July 1 with a 20% equity and invests $172,000. The balance in Caitlin’s capital account immediately after Paul’s admission is:

16. Barber and Atkins are partners in an accounting firm and share net income and loss equally. Barber's beginning partnership capital balance for the current year is $286,000, and Atkins' beginning partnership capital balance for the current year is $167,000. The partnership had net income of $172,000 for the year. Barber withdrew $57,000 during the year and Atkins withdrew $45,000. What is Atkins's return on equity?

The Company P produces doors and windows. The company produces 4 windows per door. In each window the company uses half an hour of direct labor and for each door uses one hour. The prime costs of making doors are $ 20 and $ 16 for the windows. Labor represents 60% of the prime costs. The indirect costs estimated for this production total $ 330,000. The company distributes indirect costs through the use of machine hours. The labor cost used in the production of the windows is $ 240,000. A door requires 2 hours of machinery and sales need one hour.

Required determine the cost per unit and total of doors and windows under premise a and answer the required b:

a. The company distributes the indirect costs using machine hours
b. If the actual indirect costs are $ 210,000 determine the effect of this on the cost per unit of each product