Star Videos, Inc., produces short musical videos for sale to retail outlets. The company’s balance sheet accounts as of January 1 are given below. Star Videos, Inc. Balance Sheet January 1 Assets Cash $ 89,200 Accounts receivable 106,600 Inventories: Raw materials (film, costumes) $ 13,400 Videos in process 47,400 Finished videos awaiting sale 80,400 141,200 Prepaid insurance 8,350 Studio and equipment (net) 610,000 Total assets $ 955,350 Liabilities and Stockholders’ Equity Accounts payable $ 238,000 Retained earnings 717,350 Total liabilities and stockholders’ equity $ 955,350 Because the videos differ in length and in complexity of production, the company uses a job-order costing system to determine the cost of each video produced. Studio (manufacturing) overhead is charged to videos on the basis of camera-hours of activity. The company’s predetermined overhead rate for the year ($40 per camera-hour) is based on a cost formula that estimated $280,000 in manufacturing overhead for an estimated allocation base of 7,000 camera-hours. Any underapplied or overapplied overhead is closed to cost of goods sold. The following transactions were recorded for the year: Film, costumes, and similar raw materials purchased on account, $229,000. Film, costumes, and other raw materials issued to production, $230,500 (85% of this material was considered direct to the videos in production, and the other 15% was considered indirect). Utility costs incurred (on account) in the production studio, $92,600. Depreciation recorded on the studio, cameras, and other equipment, $104,400. Three-fourths of this depreciation related to actual production of the videos, and the remainder related to equipment used in marketing and administration. Advertising expense incurred (on account), $143,000. Salaries and wages paid in cash as follows: Direct labor (actors and directors) $ 96,000 Indirect labor (carpenters to build sets, costume designers, and so forth) $ 75,500 Administrative salaries $ 103,000 Prepaid insurance expired during the year, $7,450 (70% related to production of videos, and 30% related to marketing and administrative activities). Miscellaneous marketing and administrative expenses incurred (on account), $13,850. Studio (manufacturing) overhead was applied to videos in production. The company recorded 7,250 camera-hours of activity during the year. Videos that cost $578,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment. Sales for the year totaled $954,000 and were all on account. The total cost to produce the videos that were sold according to their job cost sheets was $623,910. Collections from customers during the year totaled $904,000. Payments to suppliers on account during the year, $608,000. Underapplied or overapplied overhead $__?__. Required: 1. Prepare a transaction analysis that records all of the above transactions. 2. Prepare a schedule of cost of goods manufactured for the year. 3. Prepare a schedule of cost of goods sold for the year. 4. Prepare an income statement for the year.

Carla Vista Ltd., a private company reporting under ASPE, reported the following for the years ended May 31, 2021, and 2020.

Prepare a cash flow statement for the year using the indirect method

On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed the following transactions related to the business:

Enter the following transactions on Page 2 of the two-column journal:

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $560,000 of total manufacturing overhead for an estimated activity level of 70,000 machine-hours.

During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:

Required:

1. Compute the underapplied or overapplied overhead.

2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. Assume that the company allocates any underapplied or over appliedoverhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?

On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month:

Required:

t

he capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows:

Each project requires an investment of $440,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis.

Required:

1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place.

1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, use the minus sign to indicate a negative net present value.

2. The warehouse has a   net present value as tracking technology cash flows occur   in time. Thus, if only one of the two projects can be accepted, the   would be the more attractive.

Stock Issuance

The following transactions are for Weber Corporation in 2014

1. On March 1, the corporation was organized and received authorization to issue 5,000 shares of 8%, $100 par value preferred stock and 2,000,000 shares of $10 par value common stock.

2. On March 10, Weber issued 5,000 shares of common stock at $35 per share.

3. On March 18, Weber issued 100 shares of preferred stock at $120 per share.

4. On April 12, Weber issued another 10,000 shares of common stock at $45 per share.

Required

1. Prepare the appropriate journal entries.

2. Prepare the Stockholders’ Equity section of the balance sheet as of December 31, 2014.

3. Does the balance sheet indicate the market value of the stock at year-end? Explain.

Buffalo Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts.

The Polaris Company uses a job-order costing system. The following transactions occurred in October:

Raw materials purchased on account, $210,000.

Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials).

Accrued direct labor cost of $49,000 and indirect labor cost of $20,000.

Depreciation recorded on factory equipment, $106,000.

Other manufacturing overhead costs accrued during October, $130,000.

The company applies manufacturing overhead cost to production using a predetermined rate of $6 per machine-hour. A total of 76,200 machine-hours were used in October.

Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

Jobs that had cost $452,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 28% above cost.

Required:

1. Prepare journal entries to record the transactions given above.

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $36,000.

Record transactions using journal entries: Suppose Mask, Inc. identified the following transactions during January 2018:

1/1/18: Purchased inventory worth $11,300 on account.

1/3/18: Sold inventory, which originally cost $2,750, for $3,180 on account to customers.

1/15/18: Paid $5,000 cash to suppliers from transaction a.

1/20/18: Received $1,700 cash payment from customers in transaction b.

1/31/18: Paid $2,250 cash for January wages.

Record all of the above transactions using journal entries (HINT: there will be two separate entries to record for transaction b.). I have completed transaction a. for you as an example. Assume Mask, Inc, uses the following accounts: Cash, A/R, Inventory, A/P, Sales Revenue, Cost of Goods Sold (COGS), Wages Expense.

1/1/18                                                       DEBIT             CREDIT

            Inventory                                             $11,300

                        Accounts Payable (A/P)                                  $11,300

            To record purchase of inventory on account.

T-accounts: Below is the T-account for Accounts Receivable (A/R) for She’s A Star, Ltd.:

                                                   Accounts Receivable (A/R)

                    Beginning balance $135,000

                              (transaction 1) $21,800           $12,500 (transaction 2)

                                                                        $XX,XXX (transaction 3)

                      Ending balance      $126,560

What is the missing value $XX,XXX for transaction 3?

Give one example of a transaction that would have resulted in the posting of transaction 1 to the A/R account.

Give one example of a transaction that would have resulted in the posting of transaction 2 to the A/R account.

The sch of technology, art, and design STAD is considering buying a package machine for its Engineering Technology program. it is expected that this machine will generate a revenue for the school through several projects and partnership with local companies. it is estimated that the net profit in the first year will be $75000 and decreasing at the rate of $10000 for the next five years after that profit stays constant at $7000 until the end of its time life (10 years). if interest rate is 10%, determine the amount of money that the STAD can invest on this machine.
assume there is no salvage value of the machine.
b)determine the equivalent annual for the following cash flow:
year 0-------0
year 1-------$200,000
year 2-------$180,000
year 3-------$160,000
year 4-------$140,000
year 5-------$120,000
year 6-------$100,000
year 7-------$80,000
year8-------$60,000

On July 1, 2017, Torvill Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. On July 1, Torvill estimated that it would take between 2 and 3 years to complete the building. On December 31, 2019, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2017, 2018, and 2019. At 12/31/17 At 12/31/18 At 12/31/19 Contract costs incurred to date $  300,000 $1,200,000 $2,100,000 Estimated costs to complete the contract  1,200,000    800,000 -0- Billings to Gumbel    300,000  1,100,000  1,850,000 Instructions (a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.) (b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.)

Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics:

Given that there are various types of seasoned auditors such as generalists and specialists, do you think it easier or more difficult for specialists to perform audit outside their specialty (domain) than generalists?

Cocoa Company *

2016 2017

Cash 100 75

Cost of Goods Sold 1000 1100

Debt (LT) 10000 12000

Depreciation 2000 2200

Equity (total) 5300 5125

Interest Expense 600 720

Inventories 400 400

Payables 1200 1350

Property, Plant, Equipment 16000 18000

Revenues 6500 7500

Salaries 2200 2100

Share Capital 4964 4491

* All values given are in 1000s of dollars.

1. Construct a statement of comprehensive income for Cocoa Co. up through Earnings-Before- Taxes (EBT) for both 2016 and 2017. Use three columns: The left column should list the relevant accounts, the middle column should show the appropriate values for each account in 2016, and the right column should show the appropriate values for 2017.

2. Compute full (combined federal and provincial) corporate taxes for Cocoa Co. for both 2016 and 2017. Cocoa is a small corporation based in New Brunswick. As such it pays only 15.5% (i.e., 11% federal and 4.5% provincial tax) on the first $425,000 it earns, and then pays 27.0% (i.e., 15% federal and 12% provincial tax) on the remainder.

3. What was net income for both years?

4. If Cocoa’s payout ratio is always 40%, what was the addition to retained earnings for both years?

5. Construct a statement of financial position for Cocoa Co. for both 2016 and 2017. (In constructing the SFP, please use three columns: The left column should list the relevant accounts that appear on the SFP, the middle column should show the appropriate values for each account in 2016, and the right column should show the appropriate values for each account in 2017.)

6. Calculate Cocoa’s current ratio for 2017. Explain what it means, and state whether you think it’s good news or bad news for Cocoa’s managers.

7. If the value of Cocoa’s assets are to remain unchanged for the foreseeable future, and its profits are expected to increase, what do you expect will happen to its ROA.