Briefly explain the impact (increase or decrease) these transactions would have on specific accounts in the income statement and balance sheet.

Gary Farmer had the following sales of business property during the 2018 tax year:

1. Sold land acquired on December 3, 2007, at a cost of $24,000, for $37,000 on January 5, 2018. The cost of selling the land was $500, and there was no depreciation allowable or capital improvements made to the asset over the life of the asset.
2. Sold a business computer with an adjusted basis of $20,700 that was acquired on April 5, 2015. The original cost was $25,875, and accumulated depreciation was $5,175. The computer was sold on May 2, 2018, for $14,000, resulting in a $6,700 loss.
3. Sold equipment on July 22, 2018 for gross proceeds of $16,000. The equipment was acquired on October 21, 2017 at a cost of $25,000 and accumulated depreciation was $4,300 at the time of the sale. Gary used an equipment broker on this sale and paid a sales commission of $1,600.

Calculate Gary’s net gain or loss and determine the character as either capital or ordinary (ignore any depreciation recapture).

The land and computer  are Section 1231 properties, resulting in a net Section 1231 gain  of $. This is treated as a net long-term capital gain . The equipment  is treated as an ordinary asset . As such it results in an ordinary loss  of $._______________

Statement of Cash Flows—Indirect Method

The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:

The following additional information is taken from the records:

1. Land was sold for $43.
2. Equipment was acquired for cash.
3. There were no disposals of equipment during the year.
4. The common stock was issued for cash.
5. There was a $120 credit to Retained Earnings for net income.
6. There was a $37 debit to Retained Earnings for cash dividends declared.

a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

b. Was Olson-Jones Industries Inc.’s net cash flow from operations more or less than net income?
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1. Statement of Cash Flows—Indirect Method

   The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:

   		Dec. 31, 20Y9		Dec. 31, 20Y8
   Assets
   Cash		$263,410		$246,720
   Accounts receivable (net)		95,420		88,610
   Inventories		269,380		262,370
   Investments		0		101,640
   Land		138,160		0
   Equipment		297,200		231,960
   Accumulated depreciation—equipment		(69,580)		(62,550)
   	Total assets	$993,990		$868,750
   Liabilities and Stockholders' Equity
   Accounts payable		$179,910		$171,140
   Accrued expenses payable		17,890		22,590
   Dividends payable		9,940		7,820
   Common stock, $10 par		53,680		42,570
   Paid-in capital: Excess of issue price over par-common stock		201,780		118,150
   Retained earnings		530,790		506,480
   	Total liabilities and stockholders’ equity	$993,990		$868,750

   Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:

   1. Equipment and land were acquired for cash.
   2. There were no disposals of equipment during the year.
   3. The investments were sold for $91,480 cash.
   4. The common stock was issued for cash.
   5. There was a $65,140 credit to Retained Earnings for net income.
   6. There was a $40,830 debit to Retained Earnings for cash dividends declared.

   Required:

   Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

   Merrick Equipment Co.
   Statement of Cash Flows
   For the Year Ended December 31, 20Y9
   Cash flows from operating activities:
   	$
   Adjustments to reconcile net income to net cash flow from operating activities:
   Changes in current operating assets and liabilities:
   Net cash flow from operating activities		$
   Cash flows from (used for) investing activities:
   	$
   Net cash flow used for investing activities
   Cash flows from (used for) financing activities:
   Net cash flow from financing activities
   		$
   Cash at the beginning of the year
   Cash at the end of the year		$

Email

To: Miss Elaine Jacobs

From: Jonathan Brooks

Re: Banquet for Old Employees

Date: March 12, 2016

How are you doing? I am fine.

I have been asked by the Human Resources Department to organize a banquet fro employees who have been with our firm then years or more we are considering scheduling the event for May 8, which will be a convenient time for most people. Each of the honorees have already agreed that the date will work with his schedules. Being that you have experience in setting up events for our department. We hope you will take charge of the arrangement with the caterer the florist and the printer for the program. All these cost covered by the Human Resources Department.

In the past, we give special gifts to the honorees, therefore they has something tangible as a reward for their service. Please ask somebody to look into this, coordinate with Human Resources about the amount of money we can spend on each persons’ gift. How many honoree’s we have will effect the amount we can spend on each gift.

We want to ensure that each honoree realizes how much the firm appreciate’s his service. Please let me know if you can do this. Also can you suggest names of other people who might be willing to work on a committee for this banquet. I’m too busy with more important work to spend much time on this project.

In a page, explain the similarities and differences between financial and managerial accounting.

In 2020, Martin and Rebecca formed White Corporation.  Martin transfers real estate with an adjusted basis of $260,000 and a fair market value of $350,000 to the newly formed White Corporation in exchange for 75% of the common stock of White Corporation.  The real estate was encumbered by a mortgage of $275,000 which White Corporation assumed. Rebecca contributed equipment with a fair market value of $35,000 and an adjusted basis of $15,000 in exchange for 25% of the common stock and a $10,000 bond.  

1. What is the amount of gain or loss realized and recognized by Martin on the transfer of the real estate?
2. What basis does Martin take in White Corporation stock?
3. What basis does White Corporation take in the real estate contributed by Martin?
4. What is the amount of gain or loss realized and recognized by Rebecca on the transfer of the equipment?
5. What basis does Rebecca take in White Corporation stock?
6. What basis does White Corporation take in the equipment contributed by Rebecca?

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.

$  

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.