Julia Baker died, leaving to her husband Henry an insurance policy contract that provides that the beneficiary (Henry) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables Correct answer. Your answer is correct. (a) $55,260 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $Entry field with correct answer 55260 SHOW SOLUTION LINK TO TEXT LINK TO TEXT Correct answer. Your answer is correct. (b) $4,040 every 3 months payable at the end of each quarter for 5 years. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $Entry field with correct answer 62980 SHOW SOLUTION LINK TO TEXT LINK TO TEXT Correct answer. Your answer is correct. (c) $19,160 immediate cash and $1,916 every 3 months for 10 years, payable at the beginning of each 3-month period. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $Entry field with correct answer 68459 SHOW SOLUTION LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. (d) $4,040 every 3 months for 3 years and $1,490 each quarter for the following 25 quarters, all payments payable at the end of each quarter. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $Entry field with incorrect answer 68894 LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. Which option would you recommend that Henry exercise?

On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,350,000. During 2021, costs of $2,140,000 were incurred, with estimated costs of $4,140,000 yet to be incurred. Billings of $2,668,000 were sent, and cash collected was $2,390,000.

In 2022, costs incurred were $2,668,000 with remaining costs estimated to be $3,810,000. 2022 billings were $2,918,000, and $2,615,000 cash was collected. The project was completed in 2023 after additional costs of $3,940,000 were incurred. The company’s fiscal year-end is December 31. This project does not qualify for revenue recognition over time.

Required:

1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.

2a. Prepare journal entries for 2021 to record the transactions described (credit "various accounts" for construction costs incurred).

2b. Prepare journal entries for 2022 to record the transactions described (credit "various accounts" for construction costs incurred).

3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021.

3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022.

The Town of Brown has the following financial transactions:

1. The town council adopts an annual budget for the general fund estimating general revenues of $2.0 million, approved expenditures of $1.6 million, approved transfers pf $150,000.

2. The town levies property taxes of $1.5 million. It expects to collect all but 4% of these taxes during the year. Of the levied amount, $50,000 will be collected next year but after more than 60 days.

3. The town orders three new police cars at an approximate cost of $120,000.

4. A transfer of $60,000 is made from the general fund to the debt service fund.

5. The town makes a payment on a bond payable of $50,000 along with $15,000 of interest using the money previously set aside.

6. The Town of Brown issues a $3 million bond at face value in hopes of acquiring a building to convert into a high school.

7. The two police cars are received with an invoice price of $115,000. The voucher has been approved and will not be paid for three weeks.

8. The town purchases the building for the high school for $2.5 million in cash and immediately begins renovating it.

9. Depreciation on the new police cars is computed at $35,000 for the period.

10. The town borrows $120,000 on a 30-day-tax anticipation note.

11. The Town of Brown begins a special assessment curbing project. The government issues $900,000 in notes at face value to finance this project. The town has guaranteed the debt if the assessments collected do not cover the entire balance.

12. A contractor completes the curbing project and is paid $900,000 as agreed.

13. The town assesses citizens $900,000 for the completed curbing project.

14. The town collects the special assessments of $900,000 in full and repays the debt plus $40,000 in interest.

15. The town receives a $20,000 cash grant from a regional charity to beautify a local park. The grant must be used to cover the specific costs that the town incurs.

16. The town spends the first $5,000 to beautify the park.

Question 1. – Please prepare journal entries for the town based on the production of fund financial statements.

Question 2 – Please prepare journal entries in anticipation of preparing government-wide financial statements.

Incorporated manufactures medium-size desks in its Processing Department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some products are spoiled due to non-detectible defects. Inspection occurs at the end of the process. Spoiled desks generally constitute 10% of the good units. Data for March 2019 are as follows: WIP, beginning inventory 3/1/2019 30,000 Units Direct materials (100% complete) Conversion costs (50% complete) Started during March 80,000 Units Completed and transferred out 3/31/2019 85,000 Units WIP, ending inventory 3/31/2019 7,500 Units Direct materials (100% complete) Conversion costs (20% complete) Costs for March: WIP, beginning Inventory: Direct materials $ 40,000 Conversion costs 75,000 Direct materials added 415,000 Conversion costs added 417,000

Q1) What is the number of total spoiled units?

Q2) Normal spoilage totals ________.

Q3) Abnormal spoilage totals ________.

Q4) What is the total cost per equivalent unit using the First-In-First Out method of process costing?

Q5) What cost is allocated to abnormal spoilage using the First-In-First Out method?

Q6) What is the amount of direct materials and conversion costs assigned to ending work in process using the First-In-First Out method?

Q7) What is the cost assigned to units completed and transferred out using the First-In-First Out method? 

PLEASE: (Answer the questions with the details)

What are the factors that are key for establishing product differentiation in the new post-recession consumer environment especially as it relates to economic indicators? What is a luxury good and should marketers of luxury goods abandon their efforts to establish premium pricing? How do changes in societal attitudes toward companies and products affect the way marketers of consumer goods think about the customer value chain? Provide examples of companies that have changed their approach to marketing in response to a shift in consumers’ value in changing economic times.

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below:

Required:

1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales.

2. The president believes that a $6,900 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $89,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company’s monthly net operating income?

3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $31,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)?

4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.40 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,000?

5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $57,000 each month.

a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales.

b. Assume that the company expects to sell 20,200 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.)

c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,200)?

The president believes that a $6,900 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $89,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company’s monthly net operating income? (Do not round intermediate calculations.)

Assignment 3:

P13-12A The income statement and unclassified statement of financial position for E-Perform, Inc. follow:

Additional information:

1. Prepaid expenses and accrued liabilities relate to operating expenses.
2. An unrealized gain on held for trading investments of $14,000 was recorded.
3. New equipment costing $85,000 was purchased for $25,000 cash and a $60,000 long-term bank loan payable.
4. Old equipment having an original cost of $57,500 was sold for $1,500.
5. Accounts payable relate to merchandise creditors.
6. Some of the bank loan was repaid during the year.
7. A dividend was paid during the year.
8. Operating expenses include $46,500 of depreciation expense and a $7,500 loss on disposal of equipment.

Instructions

(a) Prepare the statement of cash flows, using the direct method.

(b) E-Perform's cash position more than doubled between 2017 and 2018. Identify the primary reason(s) for this significant increase.

Assignment 3:

P9-6A Altona Limited purchased delivery equipment on March 1, 2016, for $130,000 cash. At that time, the equipment was estimated to have a useful life of five years and a residual value of $10,000. The equipment was disposed of on November 30, 2018. Altona uses the diminishing-balance method at one time the straight-line depreciation rate, has an August 31 year end, and makes adjusting entries annually.

Instructions

(a) Record the acquisition of equipment on March 1, 2016.

(b) Record depreciation at August 31, 2016, 2017, and 2018.

(c) Record the disposal of the equipment on November 30, 2018, under each of the following independent assumptions:

1. It was sold for $60,000.
2. It was sold for $80,000.
3. It was retired for no proceeds.

Listed below (in alphabetical order) are the general ledger and budgetary accounts for the City of Walland. All balances are year end, unless otherwise noted. All accounts have a normal balance. At the end of the year, the City Council passed an ordinance that all outstanding orders would be honored in the following fiscal year. Also, the Finance Officer set aside $40 for equipment replacement.

Requirements:

1.              Prepare the Statement of Revenues, Expenditures, and Changes in Fund Balance for the year ended June 30, 20X4.

2.              Prepare the Balance Sheet for the year ended June 30, 20X4.

3.              Prepare all necessary closing entries.

City of Walland

Preclosing Trial Balance

For the Year Ended June 30, 20X4

Advance to Enterprise Fund................................................................................          1,000

Allowance for Uncollectible Taxes......................................................................             300

Appropriations....................................................................................................          8,850

Budgetary Fund Balance......................................................................................             150

Cash.....................................................................................................................        $5,000

Due from Special Revenue Fund.........................................................................             100

Encumbrances Outstanding.................................................................................               60

Encumbrances......................................................................................................               60

Estimated Revenues.............................................................................................          9,000

Expenditures – Capital Outlay............................................................................          2,500

Expenditures – Operating....................................................................................          6,340

Fund Balance (July 1, 20X3)...............................................................................          9,505

Investments.........................................................................................................          2,500

OFS – Proceeds from Sale of Vehicle..................................................................               50

OFS – Transfer from Capital Projects Fund.......................................................               60

OFU – Transfer to Debt Service Fund................................................................             100

OFU – Transfer to Enterprise Fund....................................................................             200

Revenues – Other................................................................................................          1,250

Revenues – Property Taxes.................................................................................          7,500

Salaries Payable...................................................................................................               50

Special Item – Proceeds from Sale of Land..........................................................             350

Supplies...............................................................................................................             175

Taxes Receivable..................................................................................................          1,500

Vouchers Payable................................................................................................             350

analyze the write-off of the $23 Billion in GOODWILL by General Electric (GE).....Is there really an ASSET called GOODWILL????....Should Goodwill be recorded as an EXPENSE????

The Paver Corporation produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below:

The company has an offer from Duvall Valves to produce the part for $1,996 per unit and supply 910 valves (the number needed in the coming year). If the company accepts this offer and shuts down production of valves, production workers and supervisors will be reassigned to other areas where, unfortunately, they really are not needed. The equipment cannot be used elsewhere in the company, and it has no market value. However, the space occupied by the production of the valve can be used by another production group that is currently leasing space for $56,050 per year.

Should the company make or buy the valve?

The Meals for the Homeless is a private, not-for-profit organization that provides free meals for the destitute in a large city. The following transactions took place in the accounts of Meals for the Homeless during 2020.

1.         Restricted Cash gifts of $80,000 that were received last year (in cash)         were spent on food (this year) in 2020.

2.         Unrestricted Cash of $200,000 was received as a donation in 2020.

Additional Information: The January 1, 2020 balances from the Statement of Financial Position (balance sheet) were as follows:

a)         Cash $700,000 (debit)

b)         Net Assets Unrestricted By Donor $500,000 (credit)

c)         Net Assets Restricted By Donor $200,000 (credit)

Required:

A)        Record the two transactions above in journal entry form.

B)        Prepare a Statement of Activities for the year 2020.

C)        Prepare a Statement of Changes in Net Assets for 2020.

D)        Prepare a Statement of Financial Position (balance sheet) as of December 31, 2020.

Broadhead Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 2,940 $ 11 For the current year: Purchase, April 11 8,900 9 Purchase, June 1 7,940 14 Sales ($60 each) 10,980 Operating expenses (excluding income tax expense) $ 186,500

1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.

Financial information for two companies are presented below.

Fill in the missing amounts.

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List of Accounts

Calculate the profit margin and the gross profit rate for each company. (Round answers to 1 decimal place, e.g. 15.5%.)

On June 10, Oriole Company purchased $ 7,500 of merchandise from Ivanhoe Company, terms  2/10, n/30. Oriole Company pays the freight costs of $ 360 on June 11. Goods totaling $ 300 are returned to Ivanhoe Company for credit on June 12. On June 19, Oriole Company pays Ivanhoe Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Prepare separate entries for each transaction on the books of Oriole Company. (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. Record journal entries in the order presented in the problem.)

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List of Accounts

Prepare separate entries for each transaction for Ivanhoe Company. The merchandise purchased by Oriole Company on June 10 cost Ivanhoe Company $ 2,960, and the goods returned cost Ivanhoe Company $ 200. (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. Record journal entries in the order presented in the problem.)

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