JE #5: Redeem Bonds @ 101 on Jan 1st year #2 assuming Bond Interest payment has been made. This is a test of your total understanding of using the bond amortization table and basic accounting principles. 'Critical thinking' is required. Explanation should contain all data needed for someone else who has the amortization table to verify the JE.

Rhone-Metro Industries manufactures equipment that is sold or leased. On December 31, 2018, Rhone-Metro leased equipment to Western Soya Co. for a four-year period ending December 31, 2022, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost $600,000 to manufacture and has an expected useful life of six years. Its normal sales price is $672,747. The expected residual value of $15,000 at December 31, 2022, is not guaranteed. Equal payments under the lease are $194,000 (including $4,000 maintenance costs) and are due on December 31 of each year. The first payment was made on December 31, 2018. Western Soya’s incremental borrowing rate is 12%. Western Soya knows the interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation. (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:

1. Show how Rhone-Metro calculated the $194,000 annual lease payments.
2. How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)?
3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2018.
4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor.
5. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2019 (the second lease payment and amortization).
6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022, assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $2,000.

Statement of Cost of Goods Manufactured for a Manufacturing Company

Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows:

a. Prepare a cost of goods manufactured statement for January.

b. Determine the cost of goods sold for January.
$

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Manufacturing Income Statement, Statement of Cost of Goods Manufactured

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December.

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

2. Prepare On Company's statement of cost of goods manufactured for December.

3. Prepare On Company's income statement for December.

Thank you so much for your help!!

1. Explain value-based management and how shareholder value relates to the interaction between product and capital markets. How does corporate governance impact the decisions of management?

2. Discuss how accounting standards have developed in the United States. What factors have had the most influence on accounting and how the standards have developed over time? What organization(s) do you feel have influenced US GAAP the most? Why?

You are a certified public accountant. A client enters your office on April 14 with a bag full of disorganized documents and receipts. He asks you to prepare his tax return and would be happy to file an extension. However, the client expresses some urgency and would like to file the actual tax return as soon as possible because he says, “I should get a refund for all the huge deductions.”When looking through the client’s documents and compiling the tax return, you realize that there are not enough supporting documents for deductions that would result in a refund. Review the following to inform your discussion: Circular 230: Regulations Governing Practice Before the Internal Revenue Service and the Practitioners' Responsibilities in Complying With Records Requests.

Required:

Suggest two alternate solutions to communicate to the client while being in compliance with Circular 230.

Flexible Budgeting and Variance Analysis

I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:

I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results:

Required:

1. Prepare the following variance analyses for both chocolates and the total, based on the actual results and production levels at the end of the budget year:

     a. Direct materials price variance, direct materials quantity variance, and total variance.

     b. Direct labor rate variance, direct labor time variance, and total variance.

Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

2. The variance analyses should be based on the   amounts at   volumes. The budget must flex with the volume changes. If the   volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the   production. In this way, spending from volume changes can be separated from efficiency and price variances.

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows:

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

7. In 2019, Taxpayer (“T”) is a single, 65 year-old individual who is a U.S. citizen. T turned 65 in 2019. T receives $18,000 of social security income in 2019 (the first year T received Social Security Benefits). Also, T received $6,000 of interest income from a municipal bond in both 2018 and 2019. On June 1, 2018, T took a job with a multi-national corporation which paid T $5,000 per month. As a condition of the job, T is required to work overseas, in the country of Austria, and T did in fact work in Austria for 214 days (From June 1 – December 31) in 2018. T is offered to continue to work (still in Austria and still for $5,000 per month) for seven additional months (from January 1 until the end of July, which is 211 days) in 2019, at which point T’s position would terminate. T is trying to decide whether T wants to continue to work for seven months in 2019 or quit on January 1. (These are T’s only transactions during 2018 and 2019).

a. What is T’s Gross Income in 2019 if T continues to work through July of 2019? __________________________________

b. What is T’s Gross Income in 2019 if T does NOT continue to work in 2019? __________________________________

c. Excluding the effects of the payroll tax and any credits, What is the economic benefit to T of continuing to work for 7 months in 2019 (meaning how much total extra money, after tax, will T have as a result of continuing to work in 2019)? _____________________

Please read carefully what is required and answer all the sections. if you cannot solve, leave to someone who can.Thanks.

You are currently working at a mid-sized certified public accounting firm. Your client is Bob Jones. Bob, age 60 and single, has recently retired from IBM. He has $690,000 available in his 401(k) fund and he is thinking of using that money to open a used car business that will be located at 210 Ocean View Drive in Pensacola, Florida. Bob has estimated that the business might make $300,000 in taxable income. Bob’s personal wealth including investments in land, stocks, and bonds is about $14,000,000. He reported an interest income of $20,000 and dividend income of $6,000 last year. The $14,000,000 includes land worth $9,000,000 that Bob bought in 1966 for $450,000. He is also considering transferring a possible 40% interest in his new business to his daughter Mandy, age 23 and single.

Required:

A. Prepare a detailed calculation of the capital gain and income tax supported and explained with authority from the tax code. Use the Capital Gains Tax Worksheet to calculate Bob's income tax. I am looking for a step by step calculation and explanation of the long term capital gain, income tax, and after-tax proceeds from the sale of Bob's land.  Also, please note the long term capital gains tax rate is 20% and there is a 3.8% tax on net investment income that applies.

B. Identify the tax consequences on the sale or exchange of the land consistent with capital gain rules. Consider the selling expense, broker’s fees, closing costs, appraisals, and surveys and the correct schedule form to complete.

C. Describe the after tax effects on the client’s cash flow based on the sale of the land that is needed to provide the funds necessary to start the business. Consider including capital gains tax rules.

D. Explain whether or not the client and his child should take a salary or cash distribution according to tax purposes and Internal Revenue Code and Treasury regulations. Consider the type of business which is an S Corporation and the tax effect whether it is salary, dividends, or cash withdrawal. Looking for a summary discussion of the income tax consequences to Bob and to his business of taking a salary vs. a cash distribution

Question 2 REQUIRED:

(1) Complete the following partial worksheet.

2. (2) Using your worksheet information, prepare closing entries (for December 31 of the current year) in the journal paper on the next page. Note: Explanations are NOT required.

3. (3) Assuming the journal entries prepared in part (2) have been posted, prepare a Post-Closing Trial Balance (on the next page). Hint: you may find it helpful to use a T-account for calculating Capital.

account titles adjusted trial balance    income statement statement of changes in equity or balance sheet

Assume you are starting a new business involving the manufacture and sale of a new product. Raw materials costs are $45 per product. Direct labor costs are expected to be $25 per product, Manufacturing Overhead is expected to cost $18 per product. You expect to sell each product for $172. You plan to produce 120 products next month and expect to sell 85 products. During the second month, you plan to produce 120 products but expect sales in the month to be 110 products. During the third month you expect to produce 120 products but sell 135 products Prepare a production schedule (units & dollars), a raw materials and finished goods inventory schedule (units & dollars), and the top part of an income statement (sales, cost of goods sold and gross profit) for the three months.

Please make a way to answer all the questions. I cannot separate the questions anymore because I only have 1 question left to post here on Chegg, so please be considerate. Thank youu!

21. Which of the following statements is true of treasury stock?

a.It usually has a debit balance.

b.It is classified as an asset on the balance sheet.

c.It is considered outstanding stock.

d.It allows management to vote for members of the board of directors.

22. When common stock is issued in exchange for a noncash asset and the market value of the stock cannot be determined, the acquired asset should usually be recorded at an amount equal to the

a.book value of the noncash asset.

b.fair value of the noncash asset.

c.undepreciated cost of the noncash asset.

d.book value of the stock.

23. If treasury stock is sold for less than its cost, and there were no previous treasury stock sales, the difference between the sales price and cost is debited to

a.paid-In capital, treasury stock.

b.paid-in capital in excess of par.

c.retained earnings.

d.common stock.

24. Treasury stock is classified on the balance sheet as what type of account?

a.Current asset

b.Contributed capital

c.Long-term investment

d.Contra-equity

25. A loss on the sale of treasury stock is recognized when treasury stock is sold at

a.a higher price than the stock's market value.

b.a higher price than the stock's cost.

c.a higher price than the stock's par or stated value.

d.None of these are correct.

26. Treasury stock is stock that is

a.issued and outstanding.

b.authorized and outstanding.

c.issued but not outstanding.

d.authorized but not issued.

27. A Paid-In Capital account can be credited with all of the following transactions EXCEPT

a.the issuance of no-par stock with a stated value.

b.the purchase of treasury stock.

c.the issuance of par stock issued at a price greater than par value.

d.the reissuance of treasury stock.

28. When common stock is issued in exchange for a noncash asset and the market value of the stock is determinable, the acquired asset should usually be recorded at an amount equal to

a.the market value of the stock.

b.the par value of the stock.

c.the book value of the noncash asset.

d.the fair value of the noncash asset.

29. Which of the following is NOT true regarding "legal capital"?

a.The dollar amount of legal capital is established by federal statutes.

b.It is intended as a means to protect a company's creditors.

c.It is intended to prevent corporations from paying excessive dividends.

d.It represents an amount that cannot be returned to the owners so long as the corporation exists.

30. Compared with preferred stock, common stock usually has a favorable preference in terms of

a.dividends.

b.resale value.

c.voting rights.

d.liquidated assets.

31. Which of the basic stockholder rights do preferred stockholders normally give up?

a.The right to vote.

b.The right to receive dividends when they are declared.

c.The right to excess assets after creditor claims are satisfied.

d.All of the above.

32. Which of the following is a basic right of a preferred stockholder?

a.The preemptive right.

b.The right to receive a dividend.

c.The right to vote for the board of directors.

d.All of these.

33. The investors in a corporation are called

a.board of directors.

b.corporate owners.

c.stockholders.

d.management.

34. Which of the following is NOT a basic right of a common stockholder?

a.The right to receive a dividend.

b.The preemptive right.

c.The right to vote for the board of directors.

d.All of these are basic rights of a common stockholder.

35. Which type of business organization is characterized by limited liability?

a.Proprietorship

b.Partnership

c.Corporation

d.Corporation, proprietorship, and partnership

36. Which of the following is NOT true of a corporation?

a.A corporation has the ability to raise large amounts of capital.

b.The owners of a corporation have unlimited liability.

c.A corporation has easy transferability of ownership.

d.A corporation is taxed separately from its owners.

37. The right of current stockholders to purchase additional shares in order to maintain the same percentage ownership of new shares is called

a.the voting rights privilege.

b.preemptive right.

c.liquidation.

d.the cumulative preference.

The

Ridgefield

Company manufactures​ trendy, high-quality moderately priced watches. As

Ridgefield​'s

senior financial​ analyst, you are asked to recommend a method of inventory costing. The CFO will use your recommendation to prepare

Ridgefield​'s

2017

income statement. The following data are for the year ended December​ 31,

2017​:

Beginning inventory, January 1, 2017

83,000 units

Ending inventory, December 31, 2017

34,500 units

2017 sales

424,000 units

Selling price (to distributor)

$23.50 per unit

Variable manufacturing cost per unit, including direct materials

$4.80 per unit

Variable operating (marketing) cost per unit sold

$1.30 per unit sold

Fixed manufacturing costs

$1,766,400

Denominator-level machine-hours

6,400

Standard production rate

60 units per machine-hour

Fixed operating (marketing) costs

$1,040,000

Assume standard costs per unit are the same for units in beginning inventory and units produced during the year.​ Also, assume no​ price, spending, or efficiency variances. Any​ production-volume variance is written off to cost of goods sold in the month in which it occurs.

Requirements