Following is a list of financial statement items and amounts for Vantage Service as of 12/31/Year 1, the end of its first year in operation.
Accounts Receivable $ 41,300
Accounts Payable 31,300
Cash 10,130
Common Stock 21,300
Notes Payable 10,260
Equipment 50,650
Sales Revenue 106,500
Fuel Expense 10,130
Rent Expense 11,200
Advertising Expense 5,130
Salaries and Wages Expense 21,300
Retained Earnings ?
Dividends 19,520
Required: Prepare the Income Statement for the year ended December 31, Year 1. Prepare the statement of retained earnings for the year ended December 31, Year 1. Prepare the balance sheet for the year ended December 31, Year 1.
In: Accounting
What amount does a company expect to collect from Accounts Receivable?
A) gross amount of Accounts Receivable
B) net realizable value of Accounts Receivable
C) gross amount of Accounts Receivable minus Allowance for Uncollectible Accounts
D) B and C
Emma Jones Company has the following information available:
|
Account |
12/31/2019 |
12/31/2018 |
|
Accounts Payable |
$76,500 |
$80,000 |
|
Accounts Receivable, net |
42,300 |
49,000 |
|
Cash and Cash Equivalents |
43,700 |
70,000 |
|
Inventories |
100,000 |
99,000 |
|
Long-Term Investments |
20,000 |
100,000 |
|
Short-Term Investments |
27,000 |
44,000 |
|
Income Taxes Payable |
2,000 |
5,000 |
|
Long-Term Notes Payable |
20,000 |
30,000 |
Did the quick ratio improve from 2018 to 2019?
A) No.
B) Yes.
C) It stayed the same.
D) There is not enough information.
In: Accounting
The partnership of Ace, Jack, and Spade has been in business for 25 years. On December 31, 20X5, Spade decided to retire. The partnership balance sheet reported the following capital balances for each partner at December 31, 20X5:
| Ace, Capital | $ | 151,600 | |
| Jack, Capital | 201,800 | ||
| Spade, Capital | 121,200 | ||
The partners allocate partnership income and loss in the ratio
20:30:50, respectively.
Required:
Record Spade’s withdrawal under each of the following independent
situations.
g. Because of limited cash in the partnership, Spade received land with a fair value of $100,200 and a partnership note payable for $51,500. The land’s carrying amount on the partnership books was $61,800. Capital of the partnership after Spade’s retirement was $361,300. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
A.
Land
Ace capital
Jack capital
spade capital
B
Spade capital
ace capital
jack capital
land credit: 100,200
Notes payable: 51, 500
In: Accounting
2. Ronald Zoller is planning to retire at the end of the current year. He estimates that he will need $18,000 a year for the next 15 years to meet his needs. Assuming the appropriate interest rate is $8%, how much should Zoller deposit on December 31 of the current year in order to be able to withdraw $18,000 at the end of each of the next 15 years.
Table I used to solve this problem
Table factor I used to solve this problem
Final answer
In: Accounting
Peace Company issued common shares with a par value of $59,000
and a market value of $165,900 in exchange for 30 percent ownership
of Symbol Corporation on January 1, 20X2. Symbol reported the
following balances on that date:
| SYMBOL CORPORATION Balance Sheet January 1, 20X2 |
|||||||||
| Book Value | Fair Value | ||||||||
| Assets | |||||||||
| Cash | $ | 55,000 | $ | 55,000 | |||||
| Accounts Receivable | 81,000 | 81,000 | |||||||
| Inventory (FIFO basis) | 126,000 | 156,000 | |||||||
| Land | 51,000 | 66,000 | |||||||
| Buildings & Equipment | 502,000 | 329,000 | |||||||
| Less: Accumulated Depreciation | (242,000) | ||||||||
| Patent | 32,000 | ||||||||
| Total Assets | $ | 573,000 | $ | 719,000 | |||||
| Liabilities & Equities | |||||||||
| Accounts Payable | $ | 25,000 | $ | 25,000 | |||||
| Bonds Payable | 141,000 | 141,000 | |||||||
| Common Stock | 146,000 | ||||||||
| Additional Paid-In Capital | 15,000 | ||||||||
| Retained Earnings | 246,000 | ||||||||
| Total Liabilities & Equities | $ | 573,000 | |||||||
The estimated economic life of the patents held by Symbol is 4
years. The buildings and equipment are expected to last 6 more
years on average. Symbol paid dividends of $10,000 during 20X2 and
reported net income of $81,000 for the year.
Required:
Compute the amount of investment income (loss) reported by Peace
from its investment in Symbol for 20X2 and the balance in the
investment account on December 31, 20X2, assuming the equity method
is used in accounting for the investment.
| A. Investment income (loss) | |
| B. Balance in the investment account |
In: Accounting
Make sure to scroll left and right to see full question and please show work. Waterway makes two products, Simple and Complex. As their names suggest, Simple is the more basic product, and Complex comes with all the bells and whistles. The company has always allocated overhead costs to products based on machine hours. Last year, the company implemented an activity-based costing system, and managers determined the following activity pools and rates based on total overhead of $1,592,000:
| Rate | |||
|---|---|---|---|
| Assembly | $1.25 per direct labor hour | ||
| Fabrication | $9.75 per machine hour | ||
| Setups | $18 per batch | ||
| Bonding | $262,400 direct to Complex |
Only the Complex product requires bonding, so all the costs of
bonding should be allocated to Complex. The following data relate
to both products.
| Simple | Complex | |||
|---|---|---|---|---|
| Units produced | 127,000 | 48,000 | ||
| Direct labor hours | 226,000 | 110,000 | ||
| Machine hours | 50,000 | 30,000 | ||
| Batches | 2,200 | 5,000 |
Using the traditional method of allocating overhead costs,
| • | allocate overhead cost to the products. |
| • | show that the overhead assigned to each product sums to the total company overhead. |
| • | determine the overhead cost per unit for each product. |
(Round overhead rate and overhead per unit answers to 2
decimal places, e.g. 15.25.)
| Simple | Complex | Total | ||||
|---|---|---|---|---|---|---|
| Machine hours | Enter a number of hours | Enter a number of hours | ||||
| Overhead rate | $Enter a dollar amount rounded to 2 decimal places | $Enter a dollar amount rounded to 2 decimal places | ||||
| Total overhead to product | $Enter a total amount | $Enter a total amount | $Enter a total amount |
| Simple | Complex | |||
|---|---|---|---|---|
| Total overhead to product | $Enter a dollar amount | $Enter a dollar amount | ||
| Number of units produced | Enter a number of units | Enter a number of units | ||
| Overhead per unit | $Enter a dollar amount per unit rounded to 2 decimal places | $Enter a dollar amount per unit rounded to 2 decimal places |
Using the activity-based costing rates,
| • | allocate overhead cost to the products. |
| • | show that the overhead assigned to each product sums to the total company overhead. |
| • | determine the overhead cost per unit for each product. |
(Round per unit answers to 2 decimal places, e.g.
15.25)
| Simple | Complex | Total | ||||
|---|---|---|---|---|---|---|
| Assembly | $Enter a dollar amount | $Enter a dollar amount | ||||
| Fabrication | Enter a dollar amount | Enter a dollar amount | ||||
| Setups | Enter a dollar amount | Enter a dollar amount | ||||
| Bonding | Enter a dollar amount | Enter a dollar amount | ||||
| Total overhead | $Enter a total amount | $Enter a total amount | $Enter a total amount |
| Simple | Complex | |||
|---|---|---|---|---|
| Total overhead to product | $Enter a dollar amount | $Enter a dollar amount | ||
| Number of units produced | Enter a number of units | Enter a number of units | ||
| Overhead per unit | $Enter a dollar amount per unit rounded to 2 decimal places | $Enter a dollar amount per unit rounded to 2 decimal places |
In: Accounting
Excel Manufacturing, a corporation, hired a private investigator to conduct surveillance of DeJuan, the Chief Financial Officer, because he was suspected of committing corporate espionage. Without DeJuan’s consent, the private investigator approached DeJuan and demanded to be allowed to search him and his cell phone without either a warrant or probable cause. Which of the following does this action violate?
Multiple Choice
The action violates no constitutional amendment.
Fourth Amendment search and seizure.
Fourteenth Amendment substantive due process.
Fourteenth Amendment procedural due process.
In: Accounting
Management bookkeeper/accountant can contribute in following manners towards cost transformaton of an organisation :
-By causing a cost-conscious culture .
-By dealing with the risks inherent in driving cost competitiveness.
-By associating items with profitability .
-By generating greatest value through new items.
-By incorporating sustainability to streamline or optimise profits.
-By understanding cost drivers, cost bookkeeping frameworks and processes.
Explain how this six ways can contribute towards cost transformation in an organisation.
In: Accounting
No need to show working.
Due Co. manufactures two bicycles, the Mountain Bike and the Street Racer, and anticipates producing 8,000 Mountain Bikes and 4,000 Street Racers.
The direct material cost and direct labor cost for each bike are:
|
|
Direct Materials |
Direct Labor |
|
Mountain Bike |
$120 |
$240 |
|
Street Racer |
$60 |
$160 |
Due’s budgeted overhead cost of $2,140,000 is based on the following:
The following activities are needed to manufacture the bikes:
|
Set-up Procedures |
Assembling Stations |
Finishing |
Shipping |
|
|
Mountain Bike |
6,000 |
12,000 |
8,000 |
4,000 |
|
Street Racer |
4,000 |
8,000 |
4,000 |
2,000 |
For Questions 32 – 35, assume Due uses activity-based costing.
In: Accounting
|
Party |
Overview of Responsibilities |
|
Stockholders |
Provide effective oversight through election of board members, through approval of major initiatives (such as buying or selling stock), and through annual reports on management compensation from the board |
|
Board of Directors |
Serve as representatives of stockholders; ensure that the organization is run according to the organization’s charter and that there is proper accountability Specific activities include:
|
|
Management |
Manage the organization effectively; provide accurate and timely accountability to shareholders and other stakeholders Specific activities include:
|
|
Audit Committees of the Board of Directors |
Provide oversight of the internal and external audit function and over the process of preparing the annual financial statements and public reports on internal control Specific activities include:
|
|
Regulators and Standards Setters (PCAOB, SEC, AICPA, FASB, IAASB, IASB) |
Set accounting and auditing standards dictating underlying financial reporting and auditing concepts; set the expectations of audit quality and accounting quality Specific activities include:
|
Discuss
Consider the roles and responsibilities of each of these parties with corporate governance responsibilities. Which party do you think is most responsible for preventing fraud? Which party do you think is most responsible for detecting fraud?
Provide formal discussion.
In: Accounting
Larry Nelson holds 1,000 shares of General Electric common stock. As a shareholder, he has the right to be involved in the election of its directors. These directors are responsible for managing the company and achieving the company’s objectives.
True or False: Larry can invest in another company that is selling class A shares to the public, and class B shares will be retained by company insiders. This will help the founders maintain control in the company.
True
False
Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. Currently, the company’s stock is valued at $47.00 per share. The company needs to raise new capital to invest in its future production activities. The company is anticipating issuing 5,000 new shares at a price of $37.60 per share. Larry worries about the value of his investment.
Larry’s current investment in the company is worth $ __________________
. If the company issues its new shares and Larry makes no additional investments in the company, then his investment will be worth $ _______________
.
This scenario is an example of _____________ . Larry could be protected if the firm’s corporate charter includes a _____________ provision.
If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become $ _________________
In: Accounting
Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 40,000 speaker sets:
|
Sales |
$ |
3,360,000 |
|
|
Variable costs |
840,000 |
||
|
Fixed costs |
2,310,000 |
||
Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $20.00 per set; annual fixed costs are anticipated to be $1,986,000. (In the following requirements, ignore income taxes.)
Required:
Req.1
Calculate the company’s current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States. (Do not round intermediate calculations and round your final answers to nearest whole dollar.)
|
Req.2
Determine the break-even point in speaker sets if operations are shifted to Mexico. (Do not round intermediate calculationsand round your final answer up to nearest whole number.)
|
||||
Req.3
Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States.
a. If variable costs remain constant, by how much must fixed costs change? (Round your intermediate unit calculations to the nearest whole number and round your final answers to the nearest whole dollar.)
b. If fixed costs remain constant, by how much must unit variable cost change? (Round your intermediate unit calculations to the nearest whole number and round your final answer to 2 decimal places.)
|
Req.4
Determine the impact (increase, decrease, or no effect) of the following operating changes.
|
In: Accounting
Foxx Corporation acquired all of Greenburg Company’s outstanding stock on January 1, 2016, for $646,000 cash. Greenburg’s accounting records showed net assets on that date of $497,000, although equipment with a 10-year life was undervalued on the records by $66,000. Any recognized goodwill is considered to have an indefinite life.
Greenburg reports net income in 2016 of $119,000 and $100,500 in 2017. The subsidiary declared dividends of $20,000 in each of these two years.
Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses.
| Foxx | Greenburg | ||||||
| Revenues | $ | (868,000 | ) | $ | (652,000 | ) | |
| Cost of goods sold | 108,500 | 163,000 | |||||
| Depreciation expense | 370,000 | 406,000 | |||||
| Investment income | (20,000 | ) | 0 | ||||
| Net income | $ | (409,500 | ) | $ | (83,000 | ) | |
| Retained earnings, 1/1/18 | $ | (1,246,000 | ) | $ | (408,000 | ) | |
| Net income | (409,500 | ) | (83,000 | ) | |||
| Dividends declared | 120,000 | 20,000 | |||||
| Retained earnings, 12/31/18 | $ | (1,535,500 | ) | $ | (471,000 | ) | |
| Current assets | $ | 305,000 | $ | 118,000 | |||
| Investment in subsidiary | 646,000 | 0 | |||||
| Equipment (net) | 1,088,000 | 700,000 | |||||
| Buildings (net) | 968,000 | 526,000 | |||||
| Land | 674,000 | 122,000 | |||||
| Total assets | $ | 3,681,000 | $ | 1,466,000 | |||
| Liabilities | $ | (1,245,500 | ) | $ | (695,000 | ) | |
| Common stock | (900,000 | ) | (300,000 | ) | |||
| Retained earnings | (1,535,500 | ) | (471,000 | ) | |||
| Total liabilities and equity | $ | (3,681,000 | ) | $ | (1,466,000 | ) | |
Determine the December 31, 2018, consolidated balance for each of the following accounts:
| Depreciation Expense | Buildings |
| Dividends Declared | Goodwill |
| Revenues | Common Stock |
| Equipment | |
How does the parent's choice of an accounting method for its investment affect the balances computed in requirement (a)?
Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes?
Determine parent's investment income for 2018 under partial equity method and equity method.
What would be Foxx’s balance for retained earnings as of January 1, 2018, if each of the following methods had been in use?
In: Accounting
Comparison of three essential types of businesses in Australia: use the following criteria and organize your comparison in a table:
1) Owner/s of businesses
2) Level of difficulty in setting up the business
3) Life the business (limited or unlimited)
4) Liabilities of owners over the business’s debts
5) Legal status of business
6) Level of difficulty in mobilizing funds
7) Level of difficulty in business transfer.
In: Accounting
Shepherd Corporation is considering acquiring RentCo by exchanging its stock (value of $10 per share) for RentCo's only asset, a tract of land (adjusted basis of $150,000 and no liability). The yearly net rent that RentCo receives on the land is $50,000. Shepherd anticipates that it will receive the same net rent for the land over the next 20 years. At the end of that time, it would sell the land for $400,000. Assume that Shepard uses a 10% discount rate and is in the 25% state and Federal income tax bracket for all years. Determine what type of reorganization is being contemplated by this transaction by answering the questions below.
Round dollar amounts to the nearest dollar and round the number of shares to the nearest whole number.
a. Compute the net (after taxes) yearly cash flow. $_________
b. Compute the NPV of yearly cash flow. $_______
c. Compute the net cash flow from sale of land. $______
d. Compute the NPV of cash flow from sale of land. $_______
e. Compute the NPV of the Rentco stock. $______
f. What is the maximum number of shares that
RentCo shareholders can expect Shepherd to offer for 100% of their
RentCo stock?
________ shares
g. What type of reorganization is this
contemplated transaction?
Either "Type A" or "Type C"
In: Accounting