Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the equipment from Wong Machines at a cost of $253,500, its fair value. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
Prepare a lease amortization schedule and appropriate entries for Grichuk Power from the commencement of the lease through December 31, 2018. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.

1. Consider a plant that pollutes lead into the drinking water of a small town. The town is con- sidering a couple of interventions (i.e. taxation versus regulation) to address this problem. However, they are uncertain about the firm’s cost of reduction. Provide a solution to this problem. How does the policy instrument affect efficiency when cost are unknown.

2. If Eliza is currently willing to trade 4 loaves of bread for 1 gallon of milk, then she must like loaves of bread better than gallons of milk? Why or why not?

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed Budget Sales (14,000 units × $207 per unit) $ 2,898,000 Cost of goods sold Direct materials $ 322,000 Direct labor 602,000 Production supplies 364,000 Plant manager salary 122,000 1,410,000 Gross profit 1,488,000 Selling expenses Sales commissions 98,000 Packaging 196,000 Advertising 100,000 394,000 Administrative expenses Administrative salaries 172,000 Depreciation—office equip. 142,000 Insurance 112,000 Office rent 122,000 548,000 Income from operations $ 546,000

(1) Compute the total variable cost per unit.

(2) Compute the total fixed costs.

(3) Compute the income from operations for sales volume of 12,000 units.

(4) Compute the income from operations for sales volume of 16,000 units.

Becky Gonzalez (a factory worker) earns $ .50 for every unit she makes up to 200 units. She makes an additional $.10 on every unit she makes over 200.The union contract guarantees her a minimum of $12 per hour.During one week, her hours and productivity were as follows:

DAYS HOURS WORKED UNITS COMPLETED

Monday 8 210

Tuesday 8 175

Wednesday 8 240

Thursday 8 160

Friday 8 195

WHAT'S THE ANSWER FOR :

WIP$

MOH$

Salaries expense $

THANKS!

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:

Tiger Furnishings’s CFO believes that a two-stage cost allocation system would give managers better cost information. She asks the company’s cost accountant to analyze the accounts and assign overhead costs to two pools: overhead related to direct labor cost and overhead related to machine-hours.

The analysis of overhead accounts by the cost accountant follows:

Required:

b. Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs and machine-hours to allocate overhead to the products. (Do not round intermediate calculations.)

   BASIC DOMINATOR    TOTAL

PRODUCT COSTING
DIRECT MATERIAL    ?    ? ?
DIRECT LABOR    ?    ? ?
OVERHEAD
MACHINE-RELATED    ? ? ?
LABOR-RELATED    ?    ? ?
TOTAL-OVERHEAD    ?    ? ?
TOTAL COST ?    ? ?
UNITS PRODUCED    ? ?
UNIT COST    ?    ?

ALL THE ONES WITH QUESTIONS MARKS REQUIRED ANSWERS THANK YOU

  

Company ABC acquired a machine at the beginning of the year. The machine had a 6-year useful life. He expensed the entire acquisition cost in the current year. His error has what effect on current period net income (NI) and retained earnings at the end of the 4th year (RE4)?

a. NI is understated; RE4 is understated

b. NI is understated; RE4 is correct

c. NI is overstated; RE4 is correct

d. NI is overstated; RE4 is understated

e. None of the above

Please help to explain for my better understanding.

4. ABC Company issued 1000 ordinary shares of P1 each. Payment for the shares was to be made as follows: on application 30 thebe, on allotment 40 thebe and on call 30 thebe. The company received 1000 applications. All the instalments were paid except Jay a holder of 100 shares who failed to pay the call money. Jay’s shares were forfeited. The Directors decided to reissue those shares to Sechaba at 75 thebe per share. Prepare the following accounts: a) Applications and allotment account b) Bank account c) Share capital account d) Call account e) Forfeited account f) Sechaba account

You are given the following information for Hendrix Guitars, Inc. Profit margin 6.3 % Total asset turnover 1.75 Total debt ratio .35 Payout ratio 30 % Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Hello,

Looking to compare!

Thanks,

Budgeted fixed costs for the year were $1,000,000. Actual fixed costs for th year were $1,100,000.

Variable costs were budgeted as $10 per kilowatt-hour. The actual total variable costs were
$2,200,000.

1. Calculate the amount of power costs that would be allocated to each o the three locations using
a single rate based on budgeted costs.
2. Calculate the amount of power costs that would be allocated to each o the three locations using
a dual rate method based on budgeted costs for fixed and actual costs for variable.

Variable costing versus absorption costing. The Garvis Company uses an absorption-costing system based on standard costs. Variable manufacturing cost consists of direct material cost of $4.50 per unit and other variable manufacturing costs of $1.50 per unit. The standard production rate is 20 units per machine-hour. Total budgeted and actual fixed manufacturing overhead costs are $840,000. Fixed manufacturing overhead is allocated at $14 per machine-hour based on fixed manufacturing costs of $840,000÷60,000$840,000÷60,000 machine-hours, which is the level Garvis uses as its denominator level.
The selling price is $10 per unit. Variable operating (nonmanufacturing) cost, which is driven by units sold, is $2 per unit. Fixed operating (nonmanufacturing) costs are $240,000. Beginning inventory in 2017 is 60,000 units; ending inventory is 80,000 units. Sales in 2017 are 1,080,000 units.
The same standard unit costs persisted throughout 2016 and 2017. For simplicity, assume that there are no price, spending, or efficiency variances.

Prepare an income statement for 2017 assuming that the production-volume variance is written off at year-end as an adjustment to cost of goods sold.
Required
The president has heard about variable costing. She asks you to recast the 2017 statement as it would appear under variable costing.
Explain the difference in operating income as calculated in requirements 1 and 2.
Graph how fixed manufacturing overhead is accounted for under absorption costing. That is, there will be two lines: one for the budgeted fixed manufacturing overhead (which is equal to the actual fixed manufacturing overhead in this case) and one for the fixed manufacturing overhead allocated. Show the production-volume variance in the graph.
Critics have claimed that a widely used accounting system has led to undesirable buildups of inventory levels. (a) Is variable costing or absorption costing more likely to lead to such buildups? Why? (b) What can managers do to counteract undesirable inventory buildups?

Perry Company purchased 100% of Starling Company on 1/1/20X1. At the date of acquisition, the following differences existed:

Starling had a 20-year loan for $500,000. The fair value of the loan was $540,000.

Starling had an unrecorded Patent with an estimated remaining life of 5 years. The fair value of the patent was $800,000.

Any other differences between book value and fair value were attributable o goodwill.

At 12/31/20X4, Starling still had the loan and patent that existed at the date of acquisition. The following balances are on the separate company's records (4 years have passed). Both accounts are normal balances.

Perry. Starling. Mathematical Total

Patents. 150,000. -0- 150,000

Loans payable 350,000. 580,000. 930,000

In the year ended 12/31/20X4, Starling reports net income of $820,000 on its separate income statement.

1. On its separate income statement, what will Perry report as equity in income of Starling for the year ended 12/31/20X4?

2. What will be the balance in the Patents account on the consolidated balance sheet at 12/31/20X4?

3. What will be the balance in the Loans payable account on the consolidated balance sheet at 12/31/20X4?

Question 2 Below is the Trial Balance of Marks Supermarket as at 31 March 2010. Dr Cr Pula Pula Purchases and sales 328 000 960 000 Inventory at 1 April 2009 60 000 10% Debenture 400 000 Accounts receivables/ payables 100 000 80 000 Cash/Bank 68 000 Retained profit at 1 April 2009 620 000 General reserve 80 000 Advertisement 50 000 Audit fees 24 000 Interim dividend 30 000 Debenture interest 20 000 General expenses 84 000 Building at cost 800 000 Provision for depreciation(building) 60 000 Plant at cost 1 600 000 Provision for depreciation ( Plant) 380 000 Ordinary shares of P10 each 600 000 8% preference share capital 200 000 Wages and salaries (administration) 100 000 Salesmen salaries 60 000 Carriage inwards 16 000 Rent and rates 40 000 Total 3 380 000 3 380 000 Additional information: 1. Property, plant and equipment to be depreciated as follows: Buildings at 5% using straight line method, Plant at 10% using reducing balance method. All depreciation for the year was to be charged to administration. 2. The amount of inventory as at 31 March 2010 was P80 000. 3. An amount of P58 000 was to be provided for taxation for the year ended 31 March 2010. 4. Rent paid in advance amounted to P16 400. 5. General expenses were to be allocated as follows: 2/3 to administration and 1/3 to distribution. 6. An amount of P80 000 was to be transferred to general reserve. 7. A 10% final dividend on ordinary shares was declared. 8. Preference dividend has not yet been paid. Required to prepare the following financial statements for Marks Supermarket: a) Statement of comprehensive income( income statement) for the year ended 31 March 2010 b) Statement of Changes in Equity for the year ended 31 March 2010 c) Statement of financial position (Balance Sheet) as at 31 March 2010

Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes during the year. Alexa’s AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income.

Assume that in addition to renting the condo for 100 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $30,000 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo. Answer the following questions:

Note that the home is considered to be a nonresidence with rental use.

a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

b. What is the total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

c. Would Alexa be better or worse off after taxes in the current year if she uses the Tax Court method of allocating expenses?

Better off

Worse off

3. Zee Company issued 1000 P1 ordinary shares at P1.50 per share. The shares were to be paid for as follows: 50 thebe on application, 70 thebe (including premium) on allotment and 30 on call. 1500 applications were received and allotment was made pro rata to the applicants. The balance of application money was applied to the allotment, no cash being refunded. All instalments were received on the due dates. Prepare relevant accounts to record the above issue of shares.

How does the IRS tax code affect the economic activity?