Maddow and Wells, Inc. purchased equity securities in 2018. The management of the company has decided that the securities will not be sold immediately, but will be held for at least three years. This will allow MW to maximize the potential gains from holding the securities. The new accountant at the company wants to classify the securities as held-to-maturity because they will be held for three years; the company has never held securities for this long before. How would you advise the management of the company to classify the securities? At the end of each reporting year, how will the securities be recognized on the company’s books? Support your response with an appropriate ASC reference (ASC xxx-xx-xx-x) or ASU (accounting standard update).

1. Multiple Choice.

1. A group of related accounts that comprise a complete unit is called

1. Journal
2. Liability
3. Ledger
4. Transaction

2. A chart of accounts is

1. The same as a balance sheet
2. usually a listing of accounts in alphabetical order
3. usually a listing of accounts in financial statement order
4. used in place of a ledger

3. The Debit side of an account

1. Depends on whether the account is an asset, liability, or owner’s equity
2. Can be either side of the account depending on how the accountant set up the system
3. Is the right side of the account
4. Is the left side of the account

4. Which of the following describes the classification and normal balance of the fees earned account?

1. Asset, credit
2. Liability, credit
3. Owner’s equity, debit
4. Revenue, credit

5. The classification and normal balance of the accounts payable account is

1. An asset with a credit balance
2. a liability with a credit balance
3. owner’s equity with a credit balance
4. revenue with a credit balance

6. In which of the following types of accounts are decreases recorded by debits

1. Assets
2. Revenues
3. Expenses
4. Drawing

7. A debit balance in which of the following accounts would indicate a likely error?

1. Salaries Expense
2. Notes Payable
3. N. McGee, Drawing
4. Supplies

8. Which of the following entries records the investment of cash by Tito , owner of a proprietorship?

1. Debit Tito, Capital; credit Accounts Receivable
2. Debit cash; credit Tito, Capital
3. Debit Tito, Drawing; credit cash
4. Debit cash; credit Tito, Drawing

9. Office supplies were sold by J’s Appliance Repair at cost to another repair shop , with cash received. Which of the following entries for J’s Appliance Repair records this transaction?

1. Office Supplies, debit; Cash, credit
2. Office Supplies, debit; Accounts Payable, credit
3. Cash, debit; Office Supplies, credit
4. Accounts Payable, debit; Office Supplies, credit

10. The process of initially recording a business transaction is called

1. Trial balancing
2. Posting
3. Journalizing
4. Balancing

11. Which of the following entries records the acquisition of office supplies on account?

1. Office Supplies, debit; Cash, credit
2. Cash, debit; Office Supplies, credit
3. Office Supplies, debit; Accounts Payable, credit
4. Accounts Receivable, debit; Office Supplies, credit

12. Which of the following entries records the acquisition of equipment on account?

1. Equipment, debit; Accounts Payable, credit
2. Equipment, debit; Cash, credit
3. Accounts Payable, debit; Equipment, credit
4. Accounts Payable, debit; Notes Payable, credit

On June 30, 2018, Blue, Inc. leased a machine from Big Leasing Corporation. The lease agreement qualifies as a capital lease and calls for Blue to make semiannual lease payments of $286,143 over a three-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Blue’s incremental borrowing rate is 8%, the same rate Big uses to calculate lease payment amounts. The lease agreement qualifies as a finance lease. Amortization is recorded on a straight-line basis at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the present value of the lease payments at June 30, 2018, (to the nearest $000) that Blue uses to record the right-of-use asset and lease liability. 2. What would be the amounts related to the lease that Blue would report in its balance sheet at December 31, 2018? (Ignore taxes.) 3. What would be the amounts related to the lease that Blue would report in its income statement for the year ended December 31, 2018? (Ignore taxes.) (For all requirements, round your answers to the nearest whole dollar amounts.)

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow. Additional Information Items An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. An inventory count shows that teaching supplies costing $2,318 are available at year-end 2017. Annual depreciation on the equipment is $10,698. Annual depreciation on the professional library is $5,349. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,700, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,561 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. The balance in the Prepaid Rent account represents rent for December.

Help!

I just need to know how to get the (f)

f. account receivable

tuition fees earned

pls explain

Required:

Using the data provided, compute the margin of safety and margin of safety ratio.

mos:

mos ratio:

Craig owns a home with a replacement cost of $200,000 that is subject to a $100,000 mortgage held by First Federal as the mortgagee. Craig has the home insured for $160,000 under the HO-3 policy, and First Federal is named as mortgagee under the Mortgage Clause. Assume there is a covered fire loss to the dwelling in the amount of $50,000. To whom would the loss be paid?

Hyrkas Corporation's most recent balance sheet and income statement appear below:

Dividends on common stock during Year 2 totaled $39 thousand. The market price of common stock at the end of Year 2 was $14.40 per share.

Required:

Compute the following for Year 2:

a. Gross margin percentage. (Round your answer to 1 decimal place.)

b. Earnings per share. (Round your answer to 2 decimal places.)

c. Price-earnings ratio. (Do not round intermediate calculations. Round your answer to 1 decimal place.)

d. Dividend payout ratio. (Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place.)

e. Dividend yield ratio. (Round your "Percentage" answer to 2 decimal places.)

f. Return on total assets. (Do not round intermediate calculations. Round your "Percentage" answer to 2 decimal places.)

g. Return on equity. (Round your "Percentage" answer to 2 decimal places.)

h. Book value per share. (Round your answer to 2 decimal places.)

i. Working capital. (Input your answer in thousands of dollars.)

j. Current ratio. (Round your answer to 2 decimal places.)

k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.)

l. Accounts receivable turnover. (Round your answer to 2 decimal places.)

m. Average collection period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)

n. Inventory turnover. (Round your answer to 2 decimal places.)

o. Average sale period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)

p. Times interest earned ratio. (Round your answer to 2 decimal places.)

q. Debt-to-equity ratio. (Round your answer to 2 decimal places.)

Burns Corporation's net income last year was $96,500. Changes in the company's balance sheet accounts for the year appear below:

The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,100.

Required:

a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.)

b. Prepare the investing activities section of the company's statement of cash flows for the year.

c. Prepare the financing activities section of the company's statement of cash flows for the year.

Assigned (800 words) to write by my own word about Activity-based accounting (ABC): its concept, how to implement it, its advantages and disadvantages.( no Plagiarism)

On 5/2/20, Anna Company purchased $100,000 of the 9%, 10-year bonds of Dexter Corporation for $106,247, which provides an 8% return on annual interest payments made every 5/ Anna does not intend to hold the bonds until maturity, but will hold them for longer than a year. The market value of the bonds at 12/31/20 is $106,100 and at 12/31/21 is $106,000. On 3/1/22, Anna sells the bonds for $105,950. What journal entries will Anna make in 2020 and 2021 to appropriately record these transactions and to report this investment on the year-end financial statements and on 3/1/22 to record the sale of the investment?

Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 102,000 kilometers during a year, the average operating cost is 11.3 cents per kilometer. If a truck is driven only 68,000 kilometers during a year, the average operating cost increases to 12.9 cents per kilometer.

Required:

1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks.

2. Express the variable and fixed costs in the form Y = a + bX.

3. If a truck were driven 85,000 kilometers during a year, what total operating cost would you expect to be incurred?

Southern Corporation began operations in January 2019 and purchased a machine for $120,000 at that time. Southern uses straight-line depreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2019, 30% in 2020, and 20% in 2021. Pretax accounting income for 2020 – which is the SECOND year of using this machine – is $150,000, which includes interest revenue of $20,000 from municipal bonds. The enacted tax rate is 30% for all years. There are no other differences between accounting and taxable income.

Prepare the JE for 2020

Holly Sportsballs has three product lines in its retail stores: soccer balls, baseballs, and tennis balls. Results of the fourth quarter are presented below:

                                                           Soccer Balls      Baseballs       Tennis Balls          Total

Units sold                                         1,000               2,000               2,000               5,000

Revenue                                      $22,000           $40,000           $23,000           $85,000

Variable departmental costs          15,000             22,000             12,000             49,000

Direct fixed costs                             1,000               3,000               2,000               6,000

Allocated fixed costs                        8,000               8,000               8,000           28,000

Net income (loss)                         $ (2,000)          $ 7,000           $ 1,000           $ 6,000

The allocated fixed costs cannot be avoided. There will be no changes in the demand of individual products caused by changes in other product lines.

Instructions

What will happen to profits if Holly Sportsballs discontinues the Soccer Balls product line?

1. In a manufacturing firm, which are the most important accounts to analyze for liquidity problems?

a. Cash account on the balance sheet

b. Cash, Accruals, Prepaid, and Accounts Receivable

c. Notes Payable, Cash, and Accounts Payable

d. Accounts Receivable, Inventory, and Accounts Payable

2. Golf Inc. and Golfanatics Corp. are close competitors. Last year, both had the same level of cost of goods sold, but Golf Inc. turned its inventory over five times during the year, whereas Golfanatics turned its inventory over every 65 days. If the objective is to keep low inventory, which of the following is true?

- Golf Inc., did a better job because its inventory turnover was lower

- Golfanatics did a better job because its inventory turnover was higher

- Golf Inc., did a better job because its day sales in inventory was lower

- Golf Inc., did a better job because its level of inventory was lower was lower