The following transactions occurred at the Daisy King Ice Cream Company.

1. Started business by issuing 10,000 shares of common stock for $37,000.
2. Signed a franchise agreement to pay royalties of 5% of sales.
3. Leased a building for three years at $670 per month and paid six months' rent in advance.
4. Purchased equipment for $7,100, paying $4,000 down and signing a two-year, 8% note for the balance.
5. Purchased $3,500 of supplies on account.
6. Recorded cash sales of $2,500 for the first week.
7. Paid weekly salaries and wages, $1,170.
8. Paid for supplies purchased in item (5).
9. Paid royalties due on first week's sales.
10. Recorded depreciation on equipment, $100.

Required:
Prepare journal entries to record each of the transactions listed above.

• 1

  Started business by issuing 10,000 shares of common stock for $37,000.

• 2

  Signed a franchise agreement to pay royalties of 5% of sales.

• 3

  Leased a building for three years at $670 per month and paid six months' rent in advance.

• 4

  Purchased equipment for $7,100, paying $4,000 down and signing a two-year, 8% note for the balance.

• 5

  Purchased $3,500 of supplies on account.

• 6

  Recorded cash sales of $2,500 for the first week.

• 7

  Paid weekly salaries and wages, $1,170.

• 8

  Paid for supplies purchased in item (5).

• 9

  Paid royalties due on first week's sales.

• 10

  Recorded depreciation on equipment, $100.

Part C: Master Budget with Supporting Schedules

You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below.

The company sells many styles of earrings, but all are sold for the same price—$10 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):

The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.

Suppliers are paid $4 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month’s sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible.

Monthly operating expenses for the company are given below:

Insurance is paid on an annual basis, in November of each year.

The company plans to purchase $16,000 in new equipment during May and $40,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter.

The company’s balance sheet as of March 31 is given below:

The company maintains a minimum cash balance of $50,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $50,000 in cash.

Required:

Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules:

1. a. A sales budget, by month and in total.

    b. A schedule of expected cash collections, by month and in total.

    c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.

    d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.

2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000.

3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach.

4. A budgeted balance sheet as of June 30.

Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months:

Required:
1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. (Round your answers to 2 decimal places.)

2. Using these estimates, calculate Mountain’s total cost for filling 450 cavities.

The following is the ending balances of accounts at June 30, 2018 for Excell Company.

Additional information:

1. The short-term investments account includes $37,000 in U.S. treasury bills purchased in May. The bills mature in July.
2. The accounts receivable account consists of the following:

3. The notes payable account consists of two notes of $69,000 each. One note is due on September 30, 2018, and the other is due on November 30, 2019.
4. The mortgage payable is payable in semiannual installments of $6,400 each plus interest. The next payment is due on October 31, 2018. Interest has been properly accrued and is included in accrued expenses.
5. Nine hundred thousand shares of no par common stock are authorized, of which 580,000 shares have been issued and are outstanding.
6. The land account includes $69,000 representing the cost of the land on which the company's office building resides. The remaining $44,000 is the cost of land that the company is holding for investment purposes.

Required:
Prepare a classified balance sheet for the Excell Company at June 30, 2018. (Amounts to be deducted should be indicated by a minus sign.)

What are the key considerations when formulating a definition of professional skepticism?

Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June):

The June 1 work in process inventory consisted of 4,000 units with $13,020 in materials cost and $11,980 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 36,500 units were started into production. The June 30 work in process inventory consisted of 9,600 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

1. What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

2. What is the cost of ending work in process inventory for materials? (Round your intermediate calculations to 2 places.)

3. What is the cost of ending work in process inventory for conversion? (Round your intermediate calculations to 2 places.)

Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $310,000 for a standard production run that generates 180,000 pints of Smooth Skin and 280,000 pints of Silken Skin. Smooth Skin sells for $3.60 per pint, while Silken Skin sells for $5.10 per pint. (Do not round intermediate calculations. Round final answers to nearest whole dollar amounts.)

  
Required:
1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method?
2. If no separable costs are incurred after the split-off point, how much of the joint cost of each production run is allocated to Silken Skin using the physical measure method?
3. If separable processing costs beyond the split-off point are $1.30 per pint for Smooth Skin and $1.80 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method?
4. If separable processing costs beyond the split-off point are $1.30 per pint for Smooth Skin and $1.80 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Smooth Skin using a physical measure method?

1. Relative sales value method - Smooth Skin:

2. Physical measure method - Silken Skin:

3. Net realizable value method - Silken Skin:

4. Physical measure method - Smooth Skin:

Alva Community Hospital has five laboratory technicians who are responsible for doing a series of standard blood tests. Each technician is paid a salary of $30,000. The lab facility represents a recent addition to the hospital and cost $350,000. It is expected to last 20 years. Equipment used for the testing cost $10,000 and has a life expectancy of 5 years. In addition to the salaries, facility, and equipment, Alva expects to spend $200,000 for chemicals, forms, power, and other supplies. This $200,000 is enough for 200,000 blood tests.

Assuming that the driver (measure of output) for each type of cost is the number of blood tests run, classify each cost as a variable cost, discretionary fixed cost, or committed fixed cost.

) Genosis Metals provided the following information for last month:

            Sales                              $20,000

            Variable costs                    8,000

            Fixed costs                        4,000

            Operating income            $8,000

If sales reduce to half the amount in the next month, what is the projected operating income?

A) $0

B) $4,000

C) $2,000

D) $6,000

Answer the following questions using the information below:

Buildz Manufacturing currently produces 1,000 tables per month. The following per unit data for 1,000 tables apply for sales to regular customers:

            Direct materials                               $50

            Direct manufacturing labor                10

            Variable manufacturing overhead      15

            Fixed manufacturing overhead          30

                  Total manufacturing costs         $105

2) The plant has capacity for 3,000 tables and is considering expanding production to 3,000 tables. What is the total cost of producing 3,000 tables?

A) $255,000

B) $225,000

C) $175,000

D) $235,000

3) What is the per unit cost when producing 3,000 tables?

A) $58.33

B) $175.00

C) $85.00

D) $125.45

Answer the following questions using the information below:

Pederson Company reported the following:

            Manufacturing costs            $150,000

            Units manufactured            5,000

            Units sold                           4,700 units sold for $75 per unit

            Beginning inventory          100 units

4) What is the average manufacturing cost per unit?

A) $40.00

B) $42.00

C) $30.00

D) $32.00

5) What is the manufacturing cost for the ending finished goods inventory?

A) $12,000

B) $8,000

C) $11,000

D) $5,000

Answer the following questions using the information below:

Northern Star sells several products. Information of average revenue and costs is as follows:

            Selling price per unit                      $20.00

            Variable costs per unit:

                  Direct material                           $4.00

                  Direct manufacturing labor         $1.60

                  Manufacturing overhead             $0.40

                  Selling costs                                $2.00

            Annual fixed costs                         $96,000

The company sells 12,000 units at the end of the year.

6) The contribution margin per unit is ________.

A) $11.00

B) $12.00

C) $4.00

D) $14.00

1. Research Questions:
   1. Mortgage-backed securities may have negative convexity which cushions the increase in price when interest rates decline. Explain the reason.
   2. Callable bonds may have negative convexity. Explain the reason.
   3. Positive convexity is said to be working in the investor’s favor. Explain the reason.
   4. What features of a bond affects its convexity? Explain clearly.
   5. What does “bond ladder” mean in the context of fixed-income portfolio management? What is the purpose of “bond laddering”?
   6. The practitioners also call duration as the “first derivative”. Why?

The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted:

Tile, Etc. had the following transactions in 2018:

1. Purchased merchandise on account for $580,000.
2. Sold merchandise that cost $420,000 for $890,000 on account.
3. Sold for $245,000 cash merchandise that had cost $160,000.
4. Sold merchandise for $190,000 to credit card customers. The merchandise had cost $96,000. The credit card company charges a 4 percent fee.
5. Collected $620,000 cash from accounts receivable.
6. Paid $610,000 cash on accounts payable.
7. Paid $145,000 cash for selling and administrative expenses.
8. Collected cash for the full amount due from the credit card company (see item 4).
9. Loaned $60,000 to J. Parks. The note had an 8 percent interest rate and a one-year term to maturity.
10. Wrote off $7,500 of accounts as uncollectible.
11. Made the following adjusting entries:
    (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account.
    (b) Recorded seven months of accrued interest on the note at December 31, 2018 (see item 9).

Required

1. Organize the transaction data in accounts under an accounting equation.
2. Prepare an income statement, a statement of changes in stockholders’ equity, a balance sheet, and a statement of cash flows for 2018.

(Show Work and Calculations)

On January 2, 2011 N&M Company issued $1 Million of 5-year, 3% bonds for $940,000, their interest payable semiannually every June 30, and Deember 31. N&M uses stright line amortization, having judged the difference under the effective interest method to be immaterial.

On February 28, 2015, N&M retired $100,000 of the bonds at 98.

Prepare the journal entries N&M should have made on each of the following dates:

1. February 28, 2015. 2. June 30, 2015.

 Chicken FishSelling price per taco$3.40 $5.50 Variable cost per taco 1.70  2.75 Expected sales (tacos) 195,000  291,000 

A company is considering a capital investment proposal where two alternatives involving differing degrees of mechanisation, are being considered. Both investments would have a five-year life. In Option 1 new machinery would cost £278,000, and in Option 2 £805,000. Anticipated scrap values after 5 years are £28,000 and £150,000 respectively. Depreciation is provided on a straight line basis. Option 1 would generate annual cash inflows of £100,000, and Option 2, £250,000. The cost of capital is 15%. Required:

Calculate for each option:

(i) the payback period

(ii) the accounting rate of return, based on average book value

(iii) the net present value

(iv) the internal rate of return.

Using the financial data for the sample of Healthcare companies in the table below, calculate the average Financial Leverage. AND TELL ME HOW TO DO THIS . THANKS