Blue Suits Consulting began business on January 1, 2017. Using an Excel spreadsheet, prepare journal entries for the following transactions that occurred during 2017.

• January 1, 2017 The Owner invested $28,000 in cash and a computer equipment valued at $15,000 in the company.
• February 3, 2017 The Company performed services for a client and immediately received cash in the amount of $6,300.
• February 28, 2017 The Company purchased office equipment on credit for $8,000.
• March 3, 2017 The Company performed services for a client and billed the client for $2,300 to be paid with terms 2/10, n/30.
• March 10, 2017 The Company received payment from the client in the March 3rd transaction to pay on their account.
• April 9, 2017 The Company paid cash for the bill for the equipment purchased on February 28th.
• December 25, 2017 The Company purchased $1,300 of supplies on account. This bill will be paid in January 2018.
• December 31, 2017 The Owner withdrew $2,500 in cash from the company.

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current fiscal year: Preferred 1% Stock, $50 par (100,000 shares authorized, 79,400 shares issued) $3,970,000 Paid-In Capital in Excess of Par—Preferred Stock 150,860 Common Stock, $3 par (5,000,000 shares authorized, 2,100,000 shares issued) 6,300,000 Paid-In Capital in Excess of Par—Common Stock 1,260,000 Retained Earnings 33,959,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 518,800 shares of common stock at $7, receiving cash. Feb. 10 Issued 9,800 shares of preferred 1% stock at $61. Mar. 19 Purchased 48,300 shares of treasury stock for $7 per share. May 16 Sold 19,500 shares of treasury stock for $9 per share. Aug. 25 Sold 5,000 shares of treasury stock for $6 per share. Dec. 6 Declared cash dividends of $0.50 per share on preferred stock and $0.08 per share on common stock. 31 Paid the cash dividends. Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

Market Price of a Bond

The company intends to issue 20-year bonds with a face value of $1,000. The bonds carry a coupon rate of 9%, and interest is paid semiannually. On the issue date, the market interest rate for bonds issued by companies with similar risk is 12% compounded semiannually.

Compute the market price of one bond on the date of issue.

Click here to access the PV table and the PV of an ordinary annuity table to use with this problem. Round your answer to the nearest cent.

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Chipper, a calendar-year corporation, purchased new machinery for $1,135,000 in February 2018. In October, it purchased $2,105,000 of used machinery. What was Chipper’s maximum cost recovery deduction for 2018?

Question 1 options:

1) $1,243,621

2) $3,240,000

3) $1,038,114

4) $577,226

Sequential (Step) Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct costs $175,000 $370,000 $114,800 $97,000 Normal activity: Number of employees — 40 70 150 Square footage 1,300 — 5,700 13,900 Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Valron Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Proportion of Driver Used by Human Resources General Factory Fabricating Assembly Human Resources General Factory 2. Using the sequential method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. If an amount is zero, enter"0". Round your answers to the nearest dollar. Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct costs $ $ $ $ Allocate: General Factory Human Resources Total after allocation $ $ $ $

Viejol Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $250,000 (40% variable and 60% fixed), direct materials $510,000, direct labor $290,600, administrative expenses $272,000 (20% variable and 80% fixed), and manufacturing overhead $350,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.

(A) Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.)

(B) Compute the break-even point in units and sales dollars for the current year. (Round intermediate calculations to 2 decimal places e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)

(C) The company has a target net income of $200,000. What is the required sales in dollars for the company to meet its target? (Round answer to 0 decimal places, e.g. 1,225.)

(D) If the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is, what is its margin of safety ratio?

Respond to the following in a minimum of 175 words:

Discuss the role that pension funds play in company pension plans. What benefits accrue to companies who elect to use pension funds? How does the use of a pension fund change the accounting that must be done with respect to employee pension amounts?

Erkens Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $2,553,000 of factory overhead costs and use 69,000 machine hours.

Erkens Company recorded the following events during the month of April:

1. Purchased 200,000 pounds of materials on account; the cost was $6.00 per pound.

2. Issued 130,000 pounds of materials to production, of which 20,000 pounds were used as indirect materials.

3. Incurred direct labor costs of $290,000 and $50,000 of indirect labor costs.

4. Recorded depreciation on equipment for the month, $77,700.

5. Recorded expired insurance costs for the manufacturing property, $4,500.

6. Paid $9,500 cash for utilities and other miscellaneous items for the manufacturing plant.

7. Completed Job H11 costing $8,500 and Job G28 costing $82,000 during the month and transferred them to the Finished goods inventory account.

8. Shipped Job G28 to the customer during the month. The job was invoiced at 30% above cost.

9. Used 9,700 machine hours during April.

Required:

1. Compute Erkens Company’s predetermined overhead rate for the year.

2. Prepare journal entries to record the events that occurred during April.

3-a. Compute the amount of overapplied or underapplied overhead.

3-b. Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30.

What are the equitable remedies if a contract is breached? Let's assume two parties agree that Party A will finish construction on a home by September 1st. If he has only completed half by that date, has he substantially performed? What's the remedy if the court determines there was a breach?

Lyon Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Calculate average cost for each unit. (For calculation and answers purpose round unit costs to 2 decimal places, e.g. 15.25.)

eTextbook and Media

List of Accounts

Incorrect answer iconYour answer is incorrect.

Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average, and (3) LIFO. (For calculation and answers purpose round unit costs to 2 decimal places, e.g. 15.25 and ending inventory values to 0 decimal places, e.g. 515.)

eTextbook and Media

List of Accounts

Correct answer iconYour answer is correct.

Which costing method produces the highest ending inventory valuation?

Calculate net sales:

Instructions
As you recall, you have started a business, Main Squeeze, that will sell lemonade. You have decided to incorporate the company for legal liability and taxation reasons.

The following are some of Main Squeeze’s transactions that occurred in April;

a. You put $3,000 cash into the company and signed over your car (with a value of $5,000). In exchange the company issued 8,000 shares to you.
b. Purchased a lemonade stand/trailer paying $600 cash on signing and financing the remainder with a loan over 5 years. The stands purchase price is $6,000.
c. Entered into a 5-year seasonal lease for prime boardwalk space with the city of saint john. Payments are $500 monthly from May to September.
d. Purchased a new juicer machine for $1,500 cash, and a water filtration system for $800 signing a short term note payable due in 4 months,
e. Ordered $500 worth of inventory of (lemons, sugar and cups) to be received May 3.
f. Hired a part-time employee for $1,500 per month who will start in May.

1.For each of the events, prepare journal entries if a transaction of the business exists, checking that credits equal debits. If a transaction does not exist, explain why there is no transaction for the business.
2.Create T-accounts, and post each of the transactions to determine balances at April 30th. Because this is a new business, beginning balances are $0
3.Prepare a trial balance, prepare a classified statement of financial position (with current assets and current liabilities sections) at April 30th (before beginning operations in May)
4.For each of the events, indicate if it is an investing activity (I) or financing activity (F) and the direction (+ for increases and – for decreases) and the amount of the effect on the cash flows using the following structure. Write NE if there is no effect on Cash flows.
5.Calculate the current ratio at April 30th. What does this ratio indicate about the ability of Main Squeeze to pay its current liabilities?

A company is able to produce four products and is planning its production mix for the next period.

Estimated cost, sales, and production data follow:

Product                                                       W                   X                    Y              Z

                                                                    ₤                    ₤                    ₤                 ₤

Selling Price/unit                                       29                  36                  61               51

Labour (@ ₤ 5/hr)                                    15                 10                  35                25

Material (@ ₤ 1/kg)                                   6                  18                  10               12    

Contribution                                              ₤8                 ₤8                 ₤16            ₤14

Resources/Unit                                            ₤                   ₤                   ₤                  ₤

Labour (hours)                                           3                    2                 7                  5

Materials (Kgs.)                                          6                    18                10               12

Maximum Demand (Units)                    5000                5000                5000          5000

Based on the above data, which is the most appropriate mix under the two following assumptions?

If labour hours are limited to 50,000 in a period or

If material is limited to 110,000 kgs in a period

How is merchandising inventory valued when using the lower-of-cost-or-market rule? a)

ABC Company paid $3,000 for its merchandise inventory. At the end of the accounting period, the merchandise inventory can now be replaced for $2,700 and this decline appears to be permanent. Write the journal entry to write down the inventory to LCM:

What are the effects of merchandise inventory errors on the financial statements? Fill in the blanks below with “understated” or “overstated”:

a) If the ending merchandise inventory is overstated, then cost of goods sold is _____________, and the net income is _______________.

b) If the ending merchandise inventory is understated, then cost of goods sold is ____________, and the net income is _______________.

How do we use inventory turnover and days’ sales in inventory to evaluate business performance?

a) What are the formulas for inventory turnover and days’ sales in inventory?

b) Calculate the inventory turnover and days’ sales in inventory based on the information below (show work):

Cost of goods sold $11,000

Beginning merchandise inventory 4,000

Ending merchandise inventory 3,000