QUESTION:

Do you think the US should adopt IFRS. Why or why not? I really just want your opinion about changing from US GAAP to IFRS. What will be the pros and cons?

Marin Company owes $225,000 plus $20,200 of accrued interest to Headland State Bank. The debt is a 10-year, 10% note. During 2020, Marin’s business deteriorated due to a faltering regional economy. On December 31, 2020, Headland State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $317,000, accumulated depreciation of $174,350, and a fair value of $202,000.

Prepare journal entries for Marin Company and Headland State Bank to record this debt settlement. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

How should Marin report the following in its 2020 income statement?

eTextbook and Media

List of Accounts

Assume that, instead of transferring the machine, Marin decides to grant 12,000 shares of its common stock ($10 par) which has a fair value of $202,000 in full settlement of the loan obligation. If Headland State Bank treats Marin’s stock as a trading investment, prepare the entries to record the transaction for both parties. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Problem 8-19 Cash Budget; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-8, LO8-9, LO8-10]

Minden Company is a wholesale distributor of premium European chocolates. The company’s balance sheet as of April 30 is given below:

The company is in the process of preparing a budget for May and has assembled the following data:

1. Sales are budgeted at $254,000 for May. Of these sales, $76,200 will be for cash; the remainder will be credit sales. One-half of a month’s credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May.

2. Purchases of inventory are expected to total $137,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April 30 accounts payable to suppliers will be paid during May.

3. The May 31 inventory balance is budgeted at $45,000.

4. Selling and administrative expenses for May are budgeted at $98,400, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $5,550 for the month.

5. The note payable on the April 30 balance sheet will be paid during May, with $350 in interest. (All of the interest relates to May.)

6. New refrigerating equipment costing $8,700 will be purchased for cash during May.

7. During May, the company will borrow $27,400 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.

Required:

1. Calculate the expected cash collections from customers for May.

2. Calculate the expected cash disbursements for merchandise purchases for May.

3. Prepare a cash budget for May.

4. Prepare a budgeted income statement for May.

5. Prepare a budgeted balance sheet as of May 31.

1. Transfer Pricing

   Birrell Scientific Inc. manufactures electronic products, with two operating divisions, the GPS Systems and Communication Systems divisions. Condensed divisional income statements, which involve no intracompany transfers and which include a breakdown of expenses into variable and fixed components, are as follows:

   Birrell Scientific Inc. Divisional Income Statements For the Year Ended December 31, 20Y5
   	GPS Systems Division			Communication Systems Division			Total
   Sales:
   85,000 units @ $60 per unit	$5,100,000						$5,100,000
   145,000 units @ $115 per unit				$16,675,000			16,675,000
   	$5,100,000			$16,675,000			$21,775,000
   Expenses:
   Variable:
   85,000 units @ $40 per unit	$(3,400,000)						$(3,400,000)
   145,000 units @ $90 per unit*				$(13,050,000)			(13,050,000)
   Fixed	250,000			(500,000)			(750,000)
   Total expenses	$(3,650,000)			$(13,550,000)			$(17,200,000)
   Operating income	$1,450,000			$3,125,000			$4,575,000

   *$60 of the $90 per unit represents materials costs, and the remaining $30 per unit represents other variable conversion expenses incurred within the Communication Systems Division.

   The GPS Systems Division is presently producing 85,000 units out of a total capacity of 150,000 units. Materials used in producing the Communication Systems Division's product are currently purchased from outside suppliers at a price of $60 per unit. The GPS Systems Division is able to produce the materials used by the Communication Systems Division at a variable cost of $40 per unit. Except for the possible transfer of materials between divisions, no changes are expected in sales and expenses.

   Required:

   1. Would the market price of $60 per unit be an appropriate transfer price for Birrell Scientific Inc.?
   No

   • Yes
   • No

   2. If the Communication Systems Division purchases 25,000 units from the GPS Systems Division, rather than externally, at a negotiated transfer price of $52 per unit, how much would the operating income of each division and the total company operating income increase?

   The GPS Systems Division's operating income would increase by
   $

   The Communication Systems Division's operating income would increase by
   $

   Birrell Scientific Inc.'s total operating income would increase by
   $

   Feedback

   Review how transfer pricing functions.

   2. Multiply the units transferred by the difference between the transfer price (supplying company) or the market price (purchasing company) and the variable cost per unit.

   3. Prepare condensed divisional income statements for Birrell Scientific Inc. based on the data in part (2).

   Birrell Scientific, Inc.
   Divisional Income Statements
   For the Year Ended December 31, 20Y5
   	GPS Division	Communication Division	Total
   Sales:
   85,000 units	$		$
   25,000 units
   145,000 units		$
   	$	$	$
   Expenses:
   Variable:
   110,000 units	$		$
   25,000 units		$
   120,000 units
   Fixed
   Total expenses	$	$	$
   Operating income	$	$	$

   Feedback

   3. Keep in mind, 25,000 units are transferred in at $52 per unit plus $38 in other variable conversion expenses incurred within the division.

   4. If a transfer price of $49 per unit is negotiated, how much would the operating income of each division and the total company operating income increase?

   The GPS Systems Division’s operating income would increase by
   $

   The Communication Systems Division's operating income would increase by
   $

   Birrell Scientific Scientific Inc.'s total operating income would increase by
   $

   5a. What is the range of possible negotiated transfer prices that would be acceptable for Birrell Scientific Inc.?

   Between $ and $

   5b. Assuming that the managers of the two divisions cannot agree on a transfer price, what transfer price would represent the best compromise? If required, round your answer to the nearest dollar.

   $50

   • 35
   • 40
   • 50
   • 65

The following balances are from the accounts of Tappan Parts:

Direct materials used during the year amount to $46,500 and the cost of goods sold for the year was $53,100.

Prepare a cost of goods sold statement.

petro company donated inventory to hospitals. the basis of the inventory was 70,000 and its fair market value was 120000. petro made no other cintributions this year. what is the charitable contribution deduction assuming that petry co taxes income before the dividend received deduction and charitable contributions deduction is 600,000 and included in income was a 100000 dividende received from a 15% owned domestic coproation

Class: ACCT-301 --> WEEK 7: CAPITAL BUDGETING

What is the target cost, and how is it determined?

It's NOT letting me upload a photo. I don't know why. Maybe you can google a photo? I'm sorry. Didn't think this would be such a hassle.

Required Prepare a vertical analysis of both the balance sheets and income statements for 2019 and 2018.  Analysis Bal Sheet Analysis Inc Stmt  Complete this question by entering your answers in the tabs below. Prepare a vertical analysis of the balance sheets for 2019 and 2018. (Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .23 should be entered as 23.45).) Analysis Bal Sheet Analysis Inc Stmt $ $ $ $ $ $ $ $ MUNOZ COMPANY Vertical Analysis of Balance Sheets 2019 2018 Amount Percentage of Total Amount Percentage of Total

Assets

Current assets

Cash 16,900 2.95 % 13,900 %

Marketable securities 21,600 7,500

Accounts receivable (net) 56,000 46,600

Inventories 135,600 143,600

Prepaid items 25,900 11,600

Total current assets 256,000 223,200

Investments 27,000 21,100

Plant (net) 271,400 255,900

Land 29,300 25,800

Total long-term assets 327,700 302,800

Total assets 583,700 526,000

Liabilities and stockholders' equity

Liabilities

Current liabilities

Notes payable 16,800 4,200

Accounts payable 113,600 99,800

Salaries payable 19,100 13,900

Total current liabilities 149,500 117,900

Noncurrent liabilities

Bonds payable 99,400 99,400

Other 30,800 26,900

Total noncurrent liabilities 130,200 126,300

Total liabilities 279,700 244,200

Stockholders' equity

Preferred stock (par value $10, 4% cumulative, nonparticipating; 6,000 shares authorized and issued 6)0,000 60,000

Common stock (no par; 50,000 shares authorized; 10,000 shares issued) 60,000 60,000

Retained earnings 184,000 161,800

Total stockholders' equity 304,000 281,800

Total liabilities & stockholders’ equity 583,700 % 526,000 %

I need 2019 percentages of sale which is first. Then 2018 percentage of sale which is the row of second numbers (going down).

Required Prepare a vertical analysis of both the balance sheets and income statements for 2019 and 2018.  Analysis Bal Sheet Analysis Inc Stmt  Complete this question by entering your answers in the tabs below. Prepare a vertical analysis of an income statements for 2019 and 2018. (Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) Analysis Bal Sheet Analysis Inc Stmt $ $ $ $ MUNOZ COMPANY Vertical Analysis of Income Statements 2019 2018 Amount Percentage of Sales Amount Percentage of Sales

Revenues Sales (net) 230,800 % 211,700 %

Other revenues 8,800 5,900

Total revenues 239,600 217,600

Expenses

Cost of goods sold 119,200 102,400 Selling, general, and administrative expense 53,800 49,500

Interest expense 7,000 6,200

Income tax expense 23,000 22,000

Total expenses 203,000 180,100

Net income 36,600 % 37,500 %

I need 2019 percentages of sale which is first. Then 2018 percentage of sale which is the row of second numbers (going down).

The Wade Corporation has the capacity to produce 10,000 units per year. Its predicted operations for the year are as follows:

Sales (8,000 units @ $25 each)                        $200,000

Manufacturing costs:

Variable                                                         $8 per unit

Fixed                                                                 $50,000

Marketing and administrative costs:

Variable                                                         $1 per unit

Fixed                                                                 $15,000

The accounting department has prepared the following projected income statement for     the coming year for your use in making decisions.

Sales                                                                                               $200,000

Variable costs:

Manufacturing ($8 x 8,000)                            $64,000

Marketing ($1 x 8,000)                                       8,000                       72000

Contribution margin                                                                       $128,000

Fixed costs:

Manufacturing                                               $50,000                       

Marketing                                                        15,000                        65,000

Operating profit                                                                                $63,000

Required:

1. Should the company accept a special order for 500 units at a selling price of $10? Assuming that there are no variable marketing and administrative costs for this order and that regular sales will not be affected, what is the impact of this decision on company profits?
2. Suppose there was a one-time setup fee of $2,000 for the preceding order. Should the special order be accepted? Why?
3. What other factors should be considered and how would they impact your decision to accept the special order?

Lindon Company is the exclusive distributor for an automotive product that sells for $24.00 per unit and has a CM ratio of 30%. The company’s fixed expenses are $118,800 per year. The company plans to sell 18,100 units this year.

Required:

1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.)

2. What is the break-even point in unit sales and in dollar sales?

3. What amount of unit sales and dollar sales is required to attain a target profit of $46,800 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.40 per unit. What is the company’s new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $46,800?

Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. and would like you to prepare the cash flow statement. The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31, 2023 for the years 2023 and 2022 and the income statement for the year ended October 31, 2023, are presented below.

Additional information:

Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2023, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)Partially correct answer iconYour answer is partially correct.

Prepare a statement of cash flows for Cookie & Coffee Creations Inc. for the year ended October 31, 2023, using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

1) ABC Ltd is considering a project which will require the purchase of a machine for RO1,000,000 at time zero, this machine will have a scrap value at the end of its four - year life: this will be equal to its written - down value. (25% declining balance writing - down allowance on the machine each year). Corporation tax, at a rate of 30% of taxable income, is payable. ABC Ltd's required rate of return is 12%. Operating cash flows, excluding depreciation, and before taxation, are forecast to be: Time (year) 1 2 3 4 Cash flows before tax 300,000 500,000 400,000 200,000 Note: All cash flows occur at year ends.

2) XYZ Company is considering the purchase of a new machinery which will result in a capital outlay of RO25,000. The machinery is useful for five years. The expected salvage value at the end of its useful life is RO4,000. It is expected that the machinery will fetch an additional income (Cash flow before tax) of RO5,000 (Year 1), RO7,500 (Year 2), RO10,000 (Year 3). RO5,000 (Year 4) and RO5,000 (Year 5) during the five years. The tax rate is 109. Assume that the company is expecting a minimum rate of return of 12%, Will you recommend the purchase of machinery? (Use NPV Method)
2)

Waiters, Inc. has been manufacturing 10,000 units of part 2050 per month, which is used in manufacturing one of its products. At this level of production, the cost per unit to manufacture part 2050 follows:

                               Direct materials           $10.00

                               Direct labor                    25.00

                               Variable overhead          13.00

                               Fixed overhead               12.00

                               Total                              $60.00

Westbrook Company has offered the sell Waiters 10,000 units of part 2050 for $55 a unit. Waiters has determined that it could use the facilities presently used to manufacture part 2050 to manufacture produce RAC, which would generate an additional contribution margin per month of $50,000. Waiters also has determined that one-third of the fixed overhead will be incurred even if it purchases part 2050 from Westbrook and makes product RAC.

Required:

Determine whether or not Waiters should purchase from Westbrook. Assume that Waiters would take the opportunity to make product RAC.

Goran Grill Company makes a single product - a handmade                                                             specialty barbeque grill that sells for $600. Data for last year’s                                                          operations follow:

                                    Units in beginning inventory                           0

                                    Units produced                                     50,000

                                    Units sold                                                40,000

                                    Variable costs per unit:

                                    Direct materials                                   $      150

                                    Direct labor                                                 120

                                    Variable manufacturing overhead              100

                                    Variable selling and administrative              30

                                    Total variable cost per unit                 $      400

                                    Fixed costs:

                                    Fixed manufacturing overhead        $1,500,000

                                    Fixed selling and administrative         600,000

                                    Total fixed costs                              $2,100,000

                                    Required:

1. Compute the unit product cost for one barbeque grill for absorption costing and variable costing.
2. Prepare an income statement for the year using the absorption costing approach.
3. Prepare an income statement for the year using the variable costing approach.
4. Explain the difference in operating income for the absorption and variable costing approaches.