On January 1, 2020, Sarasota Company purchased 8% bonds having a maturity value of $280,000, for $303,589.66. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Sarasota Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. 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.)

Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (Round answers to 2 decimal places, e.g. 2,525.25. 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.)

Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (Round answers to 2 decimal places, e.g. 2,525.25. 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.)

Melissa Corporation makes a​ special-purpose machine,​ D4H, used in the textile industry. Melissa has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine. Melissa presents the following data for 2016 and 2017.

Suppose that during 2017​, the market for Melissa​'s ​special-purpose machines grew by 4​%. All increases in market share​ (that is, sales increases greater than 4​%) are the result of Melissa​'s strategic actions.

requirements : Calculate how much of the change in operating income from 2016 to 2017 is due to the​ industry-market-size factor, product​ differentiation, and cost leadership. How successful has Melissa been in implementing its​ strategy? Explain.

Part 1 Milltown Company specializes in selling used cars. During the month, the dealership sold 31 cars at an average price of $15,900 each. The budget for the month was to sell 29 cars at an average price of $16,900. Compute the dealership's sales price variance for the month.
$31,000 unfavorable.
$10,900 favorable.
$31,000 favorable.
$33,800 unfavorable.
$33,800 favorable.

Part 2 A company’s flexible budget for 22,000 units of production showed sales, $105,600; variable costs, $33,000; and fixed costs, $28,000. The fixed costs expected if the company produces and sells 28,000 units is:

• $28,000.

• $133,600.

• $105,600.

• $42,000.

• $33,000.

Part 3 Georgia, Inc. has collected the following data on one of its products. The direct materials price variance is:

Multiple Choice

• $9,250 favorable.

• $25,000 unfavorable.

• $20,750 favorable.

• $15,750 unfavorable.

• $9,250 unfavorable.

Part 3 Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance.

Multiple Choice

• $14,100 favorable.

• $7,000 favorable.

• $20,750 unfavorable.

• $20,750 favorable.

• $21,100 unfavorable.

What is the overall aim of project governance? Explain the principles of the governance of project management that would help avoid common causes of project failure

A company is considering outsourcing their HR function. The reliability of the firm the company is considering would be [a] consideration.

Problem 15 Check course schedule for due date. Use the working papers provided.

The following data were taken from the records of Flexsteel Manufacturing Company for the year ended August 31, 2019.

Instructions

(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were   direct materials.)

(b) Prepare an entire income statement through net income for the year ended August 31, 2019.

(c) Prepare the current asset section of the balance sheet at August 31, 2019.

What is the normal due date for the tax return of​ calendar-year taxpayers? What happens to the due date if it falls on a​ Saturday, Sunday, or​ holiday?

A. The normal due date for​ calendar-year individuals, partnerships and​ calendar-year corporations is April 30. The normal due date is delayed to the next Tuesday that is not a​ Saturday, Sunday or holiday. If the normal due date falls on​ Saturday, Sunday, or​ holiday, it is delayed to the next Tuesday.

B. The normal due date for individuals and partnerships is April 30. The normal due date for​ calendar-year corporations is March 31. The normal due date is delayed to the next Tuesday that is not a​ Saturday, Sunday or holiday. If the normal due date falls on​ Saturday, Sunday, or​ holiday, it is delayed to the next Tuesday.

C. The normal due date for​ individuals, partnerships and​ calendar-year corporations is April 15. If the normal due date falls on​ Saturday, Sunday, or​ holiday, it is delayed to the next day that is not a​ Saturday, Sunday, or holiday.

D. The normal due date for​ calendar-year individuals and C corporations is April 15. The normal due date for​ calendar-year partnerships and S corporations is March 15. If the normal due date is a​ Saturday, Sunday, or​ holiday, the normal due date is delayed to the next day that is not a​ Saturday, Sunday, or holiday.

Prepare summary journal entries to record the following transactions for a company in its first month of operations.

1. Raw materials purchased on account, $86,000.
2. Direct materials used in production, $38,500. Indirect materials used in production, $23,000.
3. Paid cash for factory payroll, $50,000. Of this total, $38,000 is for direct labor and $12,000 is for indirect labor.
4. Paid cash for other actual overhead costs, $7,375.
5. Applied overhead at the rate of 125% of direct labor cost.
6. Transferred cost of jobs completed to finished goods, $62,600.
7. Sold jobs on account for $90,000 g(2). The jobs had a cost of $62,600 g(1).

i-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown:

Hi-Tek produced and sold 60,000 units of B300 at a price of $20 per unit and 12,700 units of T500 at a price of $40 per unit. The company’s traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company’s two product lines is shown below:

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek’s ABC implementation team concluded that $53,000 and $106,000 of the company’s advertising expenses could be directly traced to B300 and T500, respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company’s manufacturing overhead to four activities as shown below:

Required:

1. Compute the product margins for the B300 and T500 under the company’s traditional costing system.

2. Compute the product margins for B300 and T500 under the activity-based costing system.

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.

City Racquetball Club (CRC) offers racquetball and other physical fitness facilities to its members. There are four of these clubs in the metropolitan area. Each club has between 1,800 and 2,500 members. Revenue is derived from annual membership fees and hourly court fees. The annual membership fees are as follows: Individual $ 40 Student $25 Family $95 The hourly court fees vary from $6 to $10 depending upon the season and the time of day (prime versus nonprime time). The peak racquetball season is considered to run from September through April. During this period, court usage averages 90 to 100 percent of capacity during prime time (5:00–9:00 p.m.) and 50 to 60 percent of capacity during the remaining hours. Daily court usage during the off-season (i.e., summer) averages only 20 to 40 percent of capacity. Most of CRC’s memberships have September expirations. A substantial amount of the cash receipts are collected during the early part of the racquetball season due to the renewal of the annual membership fees and heavy court usage. However, cash receipts are not as large in the spring and drop significantly in the summer months. CRC is considering changing its membership and fee structure in an attempt to change its cash receipts. Under the new membership plan, only an annual membership fee would be charged, rather than a membership fee plus hourly court fees. There would be two classes of membership as follows: Individual $250 Family $400 The annual fee would be collected in advance at the time the membership application is completed. Members would be allowed to use the racquetball courts as often as they wish during the year under the new plan. All future memberships would be sold under these new terms. Current memberships would be honored on the old basis until they expire. However, a special promotional campaign would be instituted to attract new members and to encourage current members to convert to the new membership plan immediately. The annual fees for individual and family memberships would be reduced to $200 and $300, respectively, during the two-month promotional campaign. In addition, all memberships sold or renewed during this period would be for 15 months rather than the normal one-year period. Current members also would be given a credit toward the annual fee for the unexpired portion of their membership fee, and for all prepaid hourly court fees for league play that have not yet been used. CRC’s management estimates that 60 to 70 percent of the present membership would continue with the club. The most active members (45 percent of the present membership) would convert immediately to the new plan, while the remaining members who continue would wait until their current memberships expire. Those members who would not continue are not considered active (i.e., they play five or fewer times during the year). Management estimates that the loss of members would be offset fully by new members within six months of instituting the new plan. Furthermore, many of the new members would be individuals who would play during the nonprime time. Management estimates that adequate court time will be available for all members under the new plan. If the new membership plan is adopted, it would be instituted on February 1, well before the summer season. The special promotional campaign would be conducted during March and April. Once the plan is implemented, annual renewal of memberships and payment of fees would take place as each individual or family membership expires. ​ ​ ​​ Your consulting firm has been hired to help CRC evaluate its new fee structure. Write a letter to the club’s president answering the following questions. 1. Will City Racquetball Club’s new membership plan and fee structure improve its ability to plan its cash receipts? Explain your answer. 2. City Racquetball Club should evaluate the new membership plan and fee structure completely before it decides to adopt or reject it. a) Identify the key factors that CRC should consider in its evaluation. b) Explain what type of financial analyses CRC should prepare in order to make a complete evaluation. 3 Explain how City Racquetball Club’s cash management would differ from the present if the new membership plan and fee structure were adopted. EXCEL SHEET

Championship Boxing, Inc. is a small manufacturer of cardboard boxes of all sizes. You have reported for your first day of work, and the company is in an uproar. Yearly financial statements are being prepared, but a computer malfunction of the company’s new BOX-9000 computer has inadvertently erased parts of the company’s balance sheet, along with almost all related data except the company’s statement of cash flows. The IT department is working to retrieve earlier backups, but estimates that the reconstruction of the data will take about 24 hours. Unfortunately, financial statements are to be presented at a stockholders’ meeting in one hour. The company uses the indirect method to prepare its statement of cash flows (rather than the direct method), so your new supervisor believes the missing data for the balance sheet can be prepared using the statement of cash flows. You are assigned this task, since you were top student in your business school class. Meanwhile, the supervisor will go to the stockholders’ meeting and give some introductory remarks. In addition to the statement of cash flows, the following data survived the computer mishap: A. The investments were sold for $280,000 cash. B. Equipment was acquired for $152,000 cash. C. Land was acquired for $326,000 cash. D. There were no disposals of equipment during the year. E. 12,500 shares of common stock were sold for cash during the year. F. There was a $96,000 debit to Retained Earnings for cash dividends declared.

Using the information on previous panels, complete the following comparative balance sheet.

Your supervisor has provided you with the following statement of cash flows, prepared using the indirect method. Recall that the statement of cash flows consists of three sections: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. Review the statement, and then proceed to the next panel.

General Motors Corporation has invested in a project which is expected to payback the following cash

flows over the next four years. What is the present value of these cashflow if the discount rate is 15%?

Taxes are the way our government generates income. Although the richest Io/o of the people in our country pay 39% of the taxes and the bottom 50% combined pay only 2.9% combined, everyone wants things from the government. They want roads and bridges and schools and an army and welfare and Medicaid and concerts and ]..... To provide these things our government has to raise money and cut expenses. Which of the following laws help raise money? Which help cut expenses?

1)Deduction for contribution to the church

2) American Opportunity Credit for attending San Jacinto College

3) Deduction for gift to the American Red Cross

4) Child credit

5) Deduction for mortgage interest

6) Deduction for home equity loan

7) Deduction for savings bond interest used for higher education (2 things)

8) Deduction for health savings account

9) Deduction for student loan interest

10) Adoption credit

11) Earned Income credit

12) IRA deduction