Required information

Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2

[The following information applies to the questions displayed below.]

Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $71,100, $276,500, and $442,400, respectively. They predict annual partnership net income of $471,000 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary allowances of $81,600 to Mo, $61,200 to Lu, and $92,000 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb.

rev: 09_28_2017_QC_CS-102797

Problem 12-4A Part 3

3. Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (c) and that net income is $471,000. Mo, Lu, and Barb withdraw $36,400, $50,400, and $66,400, respectively, at year-end. Also close the withdrawals accounts.

Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2

[The following information applies to the questions displayed below.]

Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $71,100, $276,500, and $442,400, respectively. They predict annual partnership net income of $471,000 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary allowances of $81,600 to Mo, $61,200 to Lu, and $92,000 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb.

Problem 12-4A Part 2

2. Prepare a statement of partners’ equity showing the allocation of income to the partners assuming they agree to use plan (c), that income earned is $471,000, and that Mo, Lu, and Barb withdraw $36,400, $50,400, and $66,400, respectively, at year-end. (Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.)

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department:

Units:
Beginning Inventory: 86,000 units, 70% complete as to materials and 25% complete as to conversion.
Units started and completed: 256,000.
Units completed and transferred out: 342,000.
Ending Inventory: 33,000 units, 40% complete as to materials and 10% complete as to conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: $37,200.
Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800.
Costs incurred in October - Conversion: $919,300.

Calculate the equivalent units of conversion.

Multiple Choice

• 256,000

• 323,800

• 303,600

• 378,300

• 388,200

Keesha Co. borrows $250,000 cash on December 1 of the current year by signing a 120-day, 12%, $250,000 note.

1. On what date does this note mature?

2. & 3. What is the amount of interest expense in the current year and the following year from this note?

4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity.

JY investment Ltd holds a well-diversified portfolio of shares that has a market value of $1.5 million on 30 June 2019. JY is concerned about possible downturns in the share market and on 1 March 2020 decides to take out a sell position in eleven “September 2020 SPI 200 Futures” units when the SPI 200 is 5500. The SPI 200 Futures contract unit value is the value of SPI 200 multiplied by $25. To enter the contract, JY pays an initial cash deposit (margin) of $150,000 to a broker. On 30 June 2020, the reporting date of JY investment Ltd, the unit price of the September SPI futures contracts has fallen to 5300 and the market value of the firm’s portfolio of shares is $1 435 000. Assume broker allows a $50,000 drop before making a margin call to allow for minor fluctuations in the market. The shares are sold on 31 August 2020 when the market value of the shares is $1 290 000 and the September SPI 200 futures contract closed out at 5250 on 31 August 2020. Assume the futures contracts qualify as a hedge, the shares are marked to market.

REQUIRED: Prepare journal entries to account for the above events from 1 March 2020 to 31 August 2020. Show all calculations and round them to the nearest dollar amount. No narration is required.

GE has an outstanding bond issue that is currently selling for $110.21 to yield 6.59%. The bond pays a semi-annual coupon of 8% and will mature in 10 years. Find the convexity of this bond using the approximate convexity formula. (You may use 10 basis point change in yield to approximate the convexity).

Burns Corporation's net income last year was $97,400. 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 $4,300.

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.

The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends. Year Net Income Profitable Capital Expenditure

1 $ 16 million $ 8 million

2 24 million 12 million

3 16 million 7 million

4 21 million 7 million

5 23 million 9 million

The Hastings Corporation has 2 million shares outstanding. (The following questions are separate from each other).

a. If the marginal principle of retained earnings is applied, how much in total cash dividends will be paid over the five years? (Enter your answer in millions.)

b. If the firm simply uses a payout ratio of 30 percent of net income, how much in total cash dividends will be paid? (Enter your answer in millions and round your answer to 1 decimal place.)

c. If the firm pays a 10 percent stock dividend in years 2 through 5, and also pays a cash dividend of $3.40 per share for each of the five years, how much in total dividends will be paid?

d. Assume the payout ratio in each year is to be 30 percent of the net income and the firm will pay a 20 percent stock dividend in years 2 through 5, how much will dividends per share for each year be? (Assume the cash dividend is paid after the stock dividend.) (Round your answers to 2 decimal places.)

The Disco Biscuit Company is a resident company that owns and operates a car dealership. During the year, the company has provided the use of a car to a number of people. The details are shown below. For each of the below transactions, explain by referencing to legislation and case laws applicable whether the provision of the vehicle represents a fringe benefit. a. Mary, the wife of Damon who is a salesperson of the company, received a car to use. b. Gabby operates the business of providing an advertising consulting services to clients. The Disco Biscuit Company gives Gabby the use of a Mercedes for her services provided to it instead of paying a fee for her service upon their mutual agreement. c. Nigel, a salesperson, receives the use of a Lexus, a luxury car. d. Tristan, the managing director, is given the use of a Jaguar (car) instead of receiving a director’s fee

1. On June 1 of this year, J. Larkin, Optometrist, established the Larkin Eye Clinic. The clinic's account names are presented below. Transactions completed during the month follow.

   Assets

   =

   Liabilities

   +

   Owner's Equity

   Office

   Accounts

   Cash

   +

   Supplies

   +

   Equipment

   =

   Payable

   +

   Capital

   −

   Drawing

   +

   Revenue

   −

   Expenses

   1. Larkin deposited $25,000 in a bank account in the name of the business.
   2. Paid the office rent for the month, $950, Ck. No. 1001 (Rent Expense).
   3. Bought supplies for cash, $357, Ck. No. 1002.
   4. Bought office equipment on account from NYC Office Equipment Store, $8,956.
   5. Bought a computer from Warden's Office Outfitters, $1,636, paying $750 in cash and placing the balance on account, Ck. No. 1003.
   6. Sold professional services for cash, $3,482 (Professional Fees).
   7. Paid on account to Warden's Office Outfitters, $886, Ck. No. 1004.
   8. Received and paid the bill for utilities, $382, Ck. No. 1005 (Utilities Expense).
   9. Paid the salary of the assistant, $1,050, Ck. No. 1006 (Salary Expense).
   10. Sold professional services for cash, $3,295 (Professional Fees).
   11. Larkin withdrew cash for personal use, $1,250, Ck. No. 1007.

   Required:

   1. Record the transactions and the balances after each transaction.
   2. After all transactions have been entered, enter the total assets and the total liabilities plus owner's equity in the entry boxes below the transactions. If the two totals do not equal each other, first check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.

      1. Enter increases to accounts as positive amounts and decreases to accounts as negative amounts. If an amount box does not require an entry, leave it blank or enter "0".

   Assets

   =

   Liabilities

   +

   Owner's Equity

   Office

   Accounts

   J. Larkin,

   J. Larkin,

   Cash

   +

   Supplies

   +

   Equipment

   =

   Payable

   +

   Capital

   −

   Drawing

   +

   Revenue

   −

   Expenses

   (a)

   (b)

   Bal.

   =

   (c)

   Bal.

   =

   (d)

   Bal.

   =

   (e)

   Bal.

   =

   (f)

   Bal.

   =

   (g)

   Bal.

   =

   (h)

   Bal.

   =

   (i)

   Bal.

   =

   (j)

   Bal.

   =

   (k)

   Bal.

   +

   +

   =

   +

   −

   +

   −

   Assets

   $

   Liabilities and Owner's Equity

   $

Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow:

These products are customized to some degree for specific customers.

Required:

1. The company's manufacturing overhead costs for the year are expected to be $450,000. Using the company's conventional costing system, compute the unit product costs for the two products.

2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year:

Compute the unit product costs for the two products using the proposed ABC system.

Applied Overhead and Unit Overhead Cost: Plantwide Rates

Seco, Inc., produces two types of clothes dryers: deluxe and regular. Seco uses a plantwide rate based on direct labor hours to assign its overhead costs. The company has the following estimated and actual data for the coming year:

Required:

1. Calculate the predetermined plantwide overhead rate, using direct labor hours.
$ per hour

Calculate the applied overhead for each product, using direct labor hours.

2. Calculate the overhead cost per unit for each product. If required, round your answers to the nearest cent.

3. What if the deluxe product used 24,000 hours (to produce 24,000 units) instead of 12,000 hours (total expected hours remain the same)? Calculate the effect on the profitability of this product line if all 24,000 units are sold.

Profits would - Select your answer -increasedecreaseItem 6 by $

The American Accounting Association defines accounting as "the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information." Accountants record every financial transaction the business engages in and summarizes this information into various reports and analyses. Accounting can be broken into financial and managerial accounting. Can you explain the differences between the two?

Entries for Installment Note Transactions

On January 1, Year 1, Bryson Company obtained a $26,000, four-year, 12% installment note from Campbell Bank. The note requires annual payments of $8,560, beginning on December 31, Year 1.

a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4.

Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out.

b. Journalize the entries for the issuance of the note and the four annual note payments.

Note: For a compound transaction, if an amount box does not require an entry, leave it blank. For the Year 4 entry (due to rounding), adjust Notes Payable up or down to ensure that debits equal credits.

c. How will the annual note payment be reported in the Year 1 income statement?
  of $ would be reported on the income statement.

The accounting records of Wall’s China Shop reflected the following balances as of January 1, Year 3:

The following five transactions occurred in Year 3:

1. First purchase (cash): 120 units @ $89
2. Second purchase (cash): 195 units @ $97
3. Sales (all cash): 350 units @ $193
4. Paid $13,800 cash for salaries expense
5. Paid cash for income tax at the rate of 25 percent of income before taxes
   

Required
a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. Compute the income tax expense for each method.
b. Use a vertical model to show the Year 3 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.)

I need the Retained earnings for the FIFO LIFO AND WA? please it is not 20100

also I need in the cash flow statement I need the cash flows investing activity and plus; beginning cash balance ?

AND THIS QUESTION;;

At the end of the year, Randy’s Parts Co. had the following items in inventory:

Required
a. Determine the amount of ending inventory using the lower-of-cost-or-market rule applied to each individual inventory item.
  

b. Provide the adjustment necessary to write down the inventory based on Requirement a. Assume that Randy’s Parts Co. uses the perpetual inventory system.
  

c. Determine the amount of ending inventory, assuming that the lower-of-cost-or-market rule is applied to the total inventory in aggregate.
  

d. Provide the adjustment necessary to write down the inventory based on Requirement c. Assume that Randy’s Parts Co. uses the perpetual inventory system.