20. Comfort realty purchases 3,000 shares of its $50 par value common stock for $180,000 cash on July 1. It will hold the shares in the treasury until resold. On November 1, the corporation sells 1,000 shares of treasury stock for cash at $70 per share. Journalize the treasury stock transactions

Identify and explain the types of employer payroll taxes.

Define coupon and market interest rates as they determine bond pricing at par, premium, or discount values.

Kubin Company’s relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows:

Required:

1. What is the incremental manufacturing cost incurred if the company increases production from 24,500 to 24,501 units?

2. What is the incremental cost incurred if the company increases production and sales from 24,500 to 24,501 units?

3. Assume that Kubin Company produced 24,500 units and expects to sell 24,180 of them. If a new customer unexpectedly emerges and expresses interest in buying the 320 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer?

4. Assume that Kubin Company produced 24,500 units and expects to sell 24,180 of them. If a new customer unexpectedly emerges and expresses interest in buying the 320 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer?

Simon Company's year-end balance sheets At December 31 2017 2016 2015 Assets Cash $34,248 $41,667 $44,275 Accounts receivable, net 99,261 71,487 58,461 Merchandise inventory 127,348 94,465 61,040 Prepaid expenses 11,367 10,937 4,872 Plant assets, net 320,094 292,063 265,552 Total assets $592,318 $510,619 $434,200 Liabilities and Equity Accounts payable $147,487 $87,158 $57,314 Long-term notes payable secured by mortgages on plant assets 113,583 120,966 98,837 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 167,748 138,995 114,549 Total liabilities and equity $592,318 $510,619 $434,200 Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.)

Complete the following worksheet for Appliance Repair for the year ended 30 June 2020.

Additional information to complete the worksheet:

1. The equipment of $67,500 was purchased on 1 March 2020. The straight-line depreciation method is used with a useful life of 3 years and a scrap value of $2,700. No depreciation is ever recorded.
2. The $75,000 bank loan was borrowed on 1 May 2020. It is an interest only loan. The interest rate is 0.8% per month. No interest is ever paid or recorded.
3. The supplies on hand at 30 June 2020 were $650.
4. The prepaid insurance balance represents the annual premium paid on 1 April 2020.
5. $2,500 of unearned revenue has been earned by 30 June 2020.

   	trial balance (unadjusted)		adjustments		trial balance(adjusted)		Incomestatement
   account title	debit	credit	debit	credit	debit	credit	debit	credit
   cash at bank	37,500
   account payable	127,500
   prepaid insurance	1,800
   suppliers	900
   equipment	67,500
   accumulated depreciation -equipmeny
   accounts payable		2,700
   unearned revenue		3,150
   interest payable
   bank loan (due in 2028)		75,000
   capital		49,950
   service revenue		157,500
   wages expense	52,500
   supplies expense	600
   depreciation expense - equipment
   insurance expense
   interest expense
   	288,300	288,300

(Show work and Calculations)

On February 1, 2011, M&N company issued $100,000 of 5 year bonds, paying 8% interest every July 31 and January 31. The bonds sold for $92,278 reflecting the market rate at the time of 10%. Prepare all bond related journal entries that M&N should have recorded through January 31, 2012, the date of the second interest payment, supported by an amortization schedule covering that same 12-month period. Do not recalculate issuance proceeds.

7. Comfort realty has the following account balances at December 31, 2018 Notes payable ($80,000 due after 12/31/19) $200,000 Unearned revenue 75,000 Other long-term debt ($30,000 due in 2019) 150,000 Salaries payable 22,000 Other accrued expense 15,000 Accounts payable 100,000 In addition, Comfort realty is involved in a lawsuit. Legal counsel feels it is probably Comfort realty will pay damages of $38,000 in 2019.

a. Prepare the current liability section of comfort realty’s December 31, 2018, balance sheet

b. Comfort realty’s current assets are $504,000. Compute comfort realty’s work capital and current ratio.

Mott Company has a line of credit with Bay Bank. Mott can borrow up to $570,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the year. Mott agreed to pay interest at an annual rate equal to 1 percent above the bank’s prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Mott pays 8 percent (7 percent + 1 percent) annual interest on $75,000 for the month of January. Month Amount Borrowed or (Repaid) Prime Rate for the Month, % January $ 75,000 7 February 57,000 7 March (50,000 ) 8 April through October No change No change November (36,000 ) 8 December (22,000 ) 7 Mott earned $42,000 of cash revenue during the year. Prepare an income statement, balance sheet, and statement of cash flows for the year.

Complete this question by entering your answers in the tabs below.

• Income Statement
• Balance Sheet
• Stmt of Cash Flows

Esperado Furnishings are retailers who purchase and sell household furnishings, including table lamps. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. The business began the last quarter of 2018 with merchandise inventory of 10 pairs of “Italia” table lamps at a total cost of $168,200.

The following transactions, relating to the “Italia” brand were completed during the quarter:

October 5 Purchased 15 pairs of lamps at a cost of $17,020 per pair.

October 14 Sold 18 pairs of lamps to Muller Furnishings at $22,250 per pair

October 22 Purchased 24 pairs at a cost of $18,175 per pair but the supplier gave a 4% quantity discount.

November 10 Sold 15 pairs of lamps to Orion Household Ltd and 10 pairs to Brown’s Furnishings which yielded total sales revenue of $589,750.

November 12 Owing to an increased demand for this product, 30 pairs of lamps were purchased on account at a cost of $17,612 per pair. In addition, Esperado paid $288 in cash on each pair of lamps to have the inventory shipped from the vendor’s warehouse to Esperado’s showroom.

November 27 Sold 23 pairs of lamps to Middletown Company at a price of $25,080 per pair.

November 30 An actual count of inventory was carried out which revealed that there were 15 pairs of the “Italia” brand in the warehouse.

December 2 In preparation for the festive season, Esperado purchased 25 pairs of lamps at a total cost of $474,500.

December 15 5 pairs of the lamps purchased on December 2 were returned to the supplier, as they were not of the brand ordered.

December 30 Sold 22 pairs of lamps to two customers (Omega Traders & Middleton Furnishings) at a selling price of $26,550 per pair. All purchases were on account and received on the dates stated. Required:

A) Prepare a perpetual inventory record for Esperado Furnishings, using the first in, first out (FIFO) method to determine the value of ending inventory at December 31, 2018, and the total amount to be assigned to cost of goods sold for the period.

B) Given that selling, distribution and administrative costs for the quarter were $23,445, $10,250 and$75,435 respectively, prepare an income statement for Esperado Furnishings for the period, to determine the net profit for the quarter, assuming the perpetual inventory system.

c) You are told that 8 pairs of lamps sold on November 27, 2018 were on account. State the journal entries necessary to record the transactions on November 12 and November 27, assuming the business uses a: - Perpetual inventory system - Periodic inventory system

D) Assuming that Esperado sold 86 pairs of “Italia” brand of lamps during the quarter; determine the value of ending inventory and cost of goods sold assuming the business used the periodic system and the LIFO method?

There is this Doofus narrative, Prepare a flow chart from it. .

The storeroom supervisor checks the manual inventory perpetual records to identify items that need to be reordered. He prepares a two-part prenumbered purchase requisition [PR] to replenish inventory. The supervisor sends part 1 to the purchasing department, and files part 2 by requisition number.The purchasing department selects a vendor and prepares a five-part prenumbered purchase order [PO]. Part 1 is sent to the vendor. Part 2 is sent to the receiving department. Part 3 is sent to accounts payable, which files it until it gets a receiving report. Part 4 is sent to the storeroom, which compares the PO to the PR, and files the two documents together in the PR file. Part 5 is filed with the PR by PO number.

The receiving department files part 2 of the PO by PO number until the goods are received. When the goods are received, receiving inspects and counts the goods, compares the vendor's packing slip [PS] with the PO, and prepares a three-part prenumbered receiving report [RR]. Receiving sends the PS and part 1 of the RR to purchasing. Part 3 is filed with the PO by vendor name. It then delivers the goods to the storeroom with part 2 of the RR.When the storeroom receives RR part 2 with the goods, it updates the inventory perpetual records and files the RR with the previously filed PR and PO.

When the purchasing department receives the PS and RR copy 1 from receiving, it files them with the previously filed PR and PO [by PO number] until it receives the vendor's invoice [VI]. Purchasing then compares the VI, PO, PR, PS and RR. It sends part 1 of the RR, along with the VI, to vouchers payable [a function of the accounting department]. Purchasing then files, the PR, the PO, and the PS in a permanent file, by PO number.

Accounting files the PO by PO number until it receives the RR and VI from purchasing. Accounting then prepares a payment voucher [an authorization to pay the invoice] and posts the payable to the Vouchers Payable journal. Accounting sends the payment voucher, invoice, PO, and RR to the cash disbursements department for payment [do not be concerned with cash disbursements].

NOTE: You may assume that appropriate action is taken whenever any identified comparison reveals a discrepancy [In other words, you may ignore dealing with, say, receiving finding a mismatch between a PS and PO]. Otherwise, assume that if some thing or action is not described, it does not exist or is not performed.

Required: Use the following information to complete Rhonda Hill's 2017 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gaps. The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms.

Facts:

1. Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter and Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda's older cousin Mabel Wright lives with Rhonda in the home. Mabel is retired and receives $2,400 of Social Security payments each year. Mabel is able to save this money because Rhonda provides all of Mabel's support. Rhonda also provided the following information:

Rhonda does not want to contribute to the presidential election campaign.

Rhonda lives at 1234 Blue Ridge Way, Tulsa, OK 74101.

Rhonda's birthday is 12/18/1952 and her Social Security number is 335-67-8910.

Mabel's birthday is 11/2/1944 and her Social Security number is 566-77-8899.

Rhonda does not have any foreign bank accounts or trusts.

Rhonda has qualifying insurance for purposes of the Affordable Care Act (ACA).

2. Rhonda received a Form W-2 from Carter and Associates (her employer) that contained the following information:

This simulation question available sources is based upon a true set of facts. The information contained in the simulation question was What is the Relationship Between the Fraud Triangle and Financial Statement Fraud? -

Required First, search the Internet or refer to textbooks to learn as much as you can about the Fraud Triangle. Then, answer the following:

2. How can the Fraud Triangle detect/prevent financial statement fraud? Discuss how each of the three elements of the Fraud Triangle can detect/prevent financial statement fraud (a) Opportunity- explain how this element can detect/prevent financial statement fraud. b) Pressure- explain how this element can detect/prevent financial statement fraud

(c) Rationalization - explain how this element can detect/prevent financial statement fraud

1. Measures of liquidity, The ability of a company to make its periodic interest payments and repay the face amount of debt at maturity.Solvency, and The ability of a firm to generate earnings.Profitability

   The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 65 on December 31, 20Y2.

   Marshall Inc.
   Comparative Retained Earnings Statement
   For the Years Ended December 31, 20Y2 and 20Y1
   			20Y2		20Y1
   Retained earnings, January 1			$ 2,468,925		$ 2,076,275
   Net income			554,800		425,300
   Total			$3,023,725		$ 2,501,575
   Dividends:
   	On preferred stock		$ 7,000		$ 7,000
   	On common stock		25,650		25,650
   		Total dividends	$ 32,650		$ 32,650
   Retained earnings, December 31			$ 2,991,075		$ 2,468,925

   Marshall Inc.
   Comparative Income Statement
   For the Years Ended December 31, 20Y2 and 20Y1
   	20Y2		20Y1
   Sales	$ 2,941,900		$ 2,710,540
   Cost of goods sold	1,083,320		996,650
   Gross profit	$ 1,858,580		$ 1,713,890
   Selling expenses	$ 577,590		$ 728,340
   Administrative expenses	492,020		427,750
   Total operating expenses	$1,069,610		$1,156,090
   Income from operations	$ 788,970		$ 557,800
   Other revenue	41,530		35,600
   	$ 830,500		$ 593,400
   Other expense (interest)	200,000		110,400
   Income before income tax	$ 630,500		$ 483,000
   Income tax expense	75,700		57,700
   Net income	$ 554,800		$ 425,300

   Marshall Inc.
   Comparative Balance Sheet
   December 31, 20Y2 and 20Y1
   			20Y2		20Y1
   Assets
   Current assets
   	Cash		$ 453,090		$ 593,470
   	Marketable securities		685,760		983,470
   	Accounts receivable (net)		584,000		547,500
   	Inventories		438,000		335,800
   	Prepaid expenses		85,730		118,690
   		Total current assets	$ 2,246,580		$ 2,578,930
   Long-term investments			1,813,355		786,135
   Property, plant, and equipment (net)			3,250,000		2,925,000
   Total assets			$ 7,309,935		$ 6,290,065
   Liabilities
   Current liabilities			$ 748,860		$ 1,371,140
   Long-term liabilities:
   	Mortgage note payable, 8%		$ 1,120,000		$ 0
   	Bonds payable, 8%		1,380,000		1,380,000
   		Total long-term liabilities	$ 2,500,000		$ 1,380,000
   Total liabilities			$ 3,248,860		$ 2,751,140
   Stockholders' Equity
   Preferred $0.70 stock, $50 par			$ 500,000		$ 500,000
   Common stock, $10 par			570,000		570,000
   Retained earnings			2,991,075		2,468,925
   Total stockholders' equity			$ 4,061,075		$ 3,538,925
   Total liabilities and stockholders' equity			$ 7,309,935		$ 6,290,065

   Required:

   Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

   1. The excess of the current assets of a business over its current liabilities.Working capital	$
   2. A financial ratio that is computed by dividing current assets by current liabilities.Current ratio
   3. A financial ratio that measures the ability to pay current liabilities with quick assets (cash, temporary investments, accounts receivable), computed as quick assets divided by current liabilities.Quick ratio
   4. The relationship between sales and accounts receivable, computed by dividing the sales by the average net accounts receivable; measures how frequently during the year the accounts receivable are being converted to cash.Accounts receivable turnover
   5. The relationship between sales and accounts receivable, computed by dividing the average accounts receivable by the average daily sales.Number of days' sales in receivables		days
   6. The relationship between the volume of goods sold and inventory, computed by dividing the cost of goods sold by the average inventory.Inventory turnover
   7. The relationship between the volume of sales and inventory, computed by dividing average inventory by the average daily cost of goods sold.Number of days' sales in inventory		days
   8. A solvency ratio that measures how much fixed assets a company has to support its long-term debt.Ratio of fixed assets to long-term liabilities
   9. A comprehensive leverage ratio that measures the relationship of the claims of creditors to stockholders' equity, calculated as total liabilities divided by total stockholders' equity.Ratio of liabilities to stockholders' equity
   10. A ratio that measures the risk that interest payments will not be made if earnings decrease, calculated as income before income tax and interest expense divided by interest expense.Times interest earned
   11. Ratio that measures how effectively a business uses its assets to generate revenues, computed as sales divided by average total assets.Asset turnover
   12. A measure of the profitability of assets, without regard to the equity of creditors and stockholders in the assets.Return on total assets		%
   13. A measure of profitability computed by dividing net income by average total stockholders’ equity.Return on stockholders’ equity		%
   14. A measure of profitability computed by dividing net income, reduced by preferred dividend requirements, by average common stockholders' equity.Return on common stockholders’ equity		%
   15. The profitability ratio of net income available to common shareholders to the number of common shares outstanding.Earnings per share on common stock	$
   16. The ratio of the market price per share of common stock, at a specific date, to the annual earnings per share.Price-earnings ratio
   17. Measures the extent to which earnings are being distributed to common shareholders.Dividends per share of common stock	$
   18. A ratio, computed by dividing the annual dividends paid per share of common stock by the market price per share at a specific date, that indicates the rate of return to stockholders in terms of cash dividend distributions.Dividend yield