Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 2018 2017 Sales $ 4,600,000 $ 3,700,000 Cost of goods sold 2,900,000 2,040,000 Administrative expenses 840,000 715,000 Selling expenses 400,000 352,000 Interest revenue 154,000 144,000 Interest expense 208,000 208,000 Loss on sale of assets of discontinued component 66,000 — On July 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2018, for $66,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/18-9/30/18 2017 Sales $ 440,000 $ 540,000 Cost of goods sold (310,000 ) (344,000 ) Administrative expenses (54,000 ) (44,000 ) Selling expenses (24,000 ) (34,000 ) Operating income before taxes $ 52,000 $ 118,000 In addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: A fire caused $54,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event. Inventory that had cost $44,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $7,000. Income taxes have not yet been recorded. Required: Prepare a multiple-step income statement for the Reed Company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 500,000 shares of common stock

The city of Brock’s Water Enterprise Fund leases water treatment equipment. The life of the noncancel-lable lease is 10 years, and the expected life of the equipment is 12 years. Using an 8 percent interest rate, the present value of the lease payments is $905,861. The first payment of $125,000 is due when the lease begins, January 5, 2018. An additional payment is due on January 5th for each of the next 9 years. Prepare journal entries to record:

1. The lease of the equipment on January 5, 2018.

2. The first lease payment on January 5, 2018.

3. Amortization expense for fiscal year ending December 31, 2018

4. The second lease payment on January 5, 2019

Required: Identify each of the costs accordingly by placing an “X” in the appropriate boxes. Each cost can be classified multiple times. Please tell why for each. Thank you

1. You have been asked by a long-term friend to fill a vacancy on the five-person board of trustees for a small private company. The company’s principal asset is a banana plantation located on a remote South Pacific island. Your friend is the sole manager of the company which was organized as a trust for the benefit of her and her two brothers, who are also members of the trust’s board. The only other trustee director is the company’s long-time chief accountant.

Before making your decision, you made inquiries about the company’s financial reporting practices. You learned the following:

• The company’s annual financial statements were not audited by an independent certified public accountant. The trustees believed the benefits of audited financial statements were not worth the cost.

• The company’s fiscal period ran from January 1 to December 31.

• A full set of semiannual financial statements was prepared each year for the six-month period ending June 30. Like the annual financial report, they were available approximately two to three months after the close of the accounting period.

How might the information you learned about the financial reporting practices influence your decision to join the board of trustees?

Problem 08-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $6.00 per Ib.) $ 24.00 Direct labor (1.9 hrs. @ $13.00 per hr.) 24.70 Overhead (1.9 hrs. @ $18.50 per hr.) 35.15 Total standard cost $ 83.85 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 90,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $ 150,000 Fixed overhead costs Depreciation—Building 24,000 Depreciation—Machinery 72,000 Taxes and insurance 18,000 Supervision 263,250 Total fixed overhead costs 377,250 Total overhead costs $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 Ibs. @ $6.20 per lb.) $ 378,200 Direct labor (22,000 hrs. @ $13.10 per hr.) 288,200 Overhead costs Indirect materials $ 41,050 Indirect labor 176,800 Power 17,250 Repairs and maintenance 34,500 Depreciation—Building 24,000 Depreciation—Machinery 97,200 Taxes and insurance 16,200 Supervision 263,250 670,250 Total costs $ 1,336,650 rev: 04_27_2020_QC_CS-209738

Problem 08-3A Part 5 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.)

On 31 December 20X7, a company has the following bond on the statement of financial position:

On 28 February 20X8, 20% of the bond was retired for $1,804,000 plus accrued interest to 28 February. Interest was paid on this date only for the portion of the bonds that were retired. Premium amortization was recorded on this date in the amount of $660, representing amortization on the retired debt only.

Required:

Provide the entries to record the bond interest on 28 February and the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

- Record the entry to update interest expense and amortization.

- Record the entry to retire bonds.

The following is a partial trial balance for General Lighting Corporation as of December 31, 2018: Account Title Debits Credits Sales revenue 2,650,000 Interest revenue 86,000 Loss on sale of investments 25,500 Cost of goods sold 1,250,000 Loss from write-down of inventory due to obsolescence 260,000 Selling expenses 360,000 General and administrative expenses 180,000 Interest expense 85,000 300,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40%. Required: 1. Prepare a single-step income statement for 2018, including EPS disclosures. 2. Prepare a multiple-step income statement for 2018, including EPS disclosures.

Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales.

The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $330,000 of manufacturing overhead for an estimated activity level of $200,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows:

During the year, the following transactions were completed:

1. Raw materials purchased on account, $275,000.
2. Raw materials used in production, $280,000 (materials costing $220,000 were charged directly to jobs; the remaining materials were indirect).
3. Costs for employee services were incurred as follows:

4. Rent for the year was $18,000 ($13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities).
5. Utility costs incurred in the factory, $57,000.
6. Advertising costs incurred, $140,000.
7. Depreciation recorded on equipment, $100,000. ($88,000 of this amount related to equipment used in factory operations; the remaining $12,000 related to equipment used in selling and administrative activities.)
8. Record the manufacturing overhead cost applied to jobs.
9. Goods that had cost $675,000 to manufacture according to their job cost sheets were completed.
10. Sales for the year (all paid in cash) totaled $1,250,000. The total cost to manufacture these goods according to their job cost sheets was $700,000.

Required:

1. Prepare journal entries to record the transactions for the year.

2. Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don’t forget to enter the beginning balances in your inventory accounts).

3A. Is Manufacturing Overhead underapplied or overapplied for the year?

3B. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.

4. Prepare an income statement for the year. (All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.)

Give specific example of the Quality Management Principle:

• Principle 7: Factual approach to decision making

Comprehensive CVP analysis:

Bison Industries manufactures 16GB flash drives. The current sales volume is 100,000 units per month. Price and cost data for a relevant rage extending to 200,000 units per month is as follows:

1. Prepare a contribution margin format income statement in good form including per unit and ratio columns.
   
2. What is the company’s contribution margin per unit? Contribution margin ratio? Total contribution margin?
   
3. What would the company’s monthly operating income be if it sold 130,000 units?
   
4. What would the company’s monthly operating income be if it had sales of $4,000,000?
   
5. What is the breakeven point in units and dollars?
   
6. What is the current margin of safety in units and dollars?
   
7. How many units would the company have to sell to earn a target monthly profit of $260,100?
   
8. Management is currently in contract negations with the labor union. If the negotiations fail, direct labor costs will increase by 10% and fixed costs will increase by $23,500 per month. If these costs increase, how many units will the company have to sell each month to breakeven?

(Entries for Equipment Acquisitions) Jane Geddes Engineering Corporation purchased conveyor equipment with a list price of $10,000. The vendors credit terms were 2/10, n/30. Presented below are two independent cases related to equipment. Assume that the purchases of equipment are recorded gross. (Round to nearest dollar)

a.) Geddes paid cash for the equipment 8 days after the purchase. The vendor's credit terms are 2/10, n/30. Assume equipment purchases are initially recorded gross.
b.) Geddes traded in equipment with a book value of $2,000 (initial cost $8,000) and paid $9,500 in case one month after the purchase. The old equipment could have been sold for $400 at the date of trade. Assume the exchange has commercial substance.

c.) Geddes gave the vendor a $10,800 zero-interest-bearing note for the equipment on the date of purchase. The note was due in one year and was paid on time. Assume that the effective-interest rate in the market was 9%

Instructions
Prepare the general journal entries required to record the acquisition and payment in cash of the independent cases above. Round to the nearest dollar.

A company will sell Widgets to consumers at a price of $85 per unit. The variable cost to produce Widgets is $23 per unit. The company expects to sell 15,000 Widgets to consumers each year. The fixed costs incurred each year will be $110,000. There is an initial investment to produce the goods of $2,900,000 which will be depreciated straight line over the 13 year life of the investment to a salvage value of $0. The opportunity cost of capital is 10% and the tax rate is 31%.

a) What is operating cash flow each year? answer 634953.85

b) Using the an annual operating cash flow of $634,953.85, what is the net present value of this investment?  

Should the company accept or reject this project?

I know how to do part a but i dont know how to do part b, can u provide steps please

United Rentals Corporation is authorized to issue 100,000 shares of 5%, $60 par value preferred stock and 5,000,000 shares of no-par common stock with a stated value of $3 per share. During 2018, its first year of operation, the company has the following transactions.    

    Jan. 1 Issued 15,000 shares of preferred stock for cash at $106 per share.    

    Jan. 15 Issued 500,000 shares of common stock for cash at $8 per share.    

    Mar. 2 Issued 20,000 shares of common stock for land. The land had an

              asking price of $300,000. The stock is currently selling

              on a national exchange at $14 per share.

    Apr. 30 Issued 4,000 shares of common stock to attorneys in payment of

              their bill for $50,000 for legal services rendered in helping the

              company incorporate.

    Sept. 5 Purchased 10,000 shares of its own common stock at

              $15 per share.    

    Dec. 6 Sold 8,000 shares of the treasury stock at $16 per share.

    Dec. 10 Sold the remaining treasury stock for $14 per share.    

     INSTRUCTIONS

     Journalize the transactions for United Rentals Corporation.

1. The Urban Outfitters Company had the following financial information on June 30,2018, the end of their fiscal year:

       Preferred stock, 9%, $100 par value,75,000 shares

        authorized, ____??___shares issued.................    $4,000,000

        Common stock, $15 par value, 2,500,000 shares

        authorized; __??__ shares issued and _??____

        outstanding ..................................         9,000,000

        Additional paid-in capital

           In excess of par value-common...................      900,000   

        Retained Earnings ..................................   2,400,000                                                        

        Treasury stock (5,000 shares)..............              240,000

     INSTRUCTIONS

     Complete the following statements and show your computations. (Show

    computations)    

1. The number of shares of common stock outstanding was _______________.
2. The total annual preferred stock dividend is_______________.
3. The total Paid-In-Capital is_____________________.    

     (d) The number of shares of preferred stock issued was __________.

     (e) The average sales price per share of the common stock when issued was                                  

     (f) The cost per share of the treasury stock was $_____________.

Impact of the 2018 Tax Changes...and the resulting increases vs decreases to the corporation's value