• Journalize the transactions for the month of July, 2019, beginning on page GJ 1. Be sure and list the Debit Account(s) first; Credit Account(s) next. Be sure and write a brief explanation for each transaction.

You made the following transactions for Floral & Fauna Landscaping   during the month of July:

July   1        You deposited $25,000 in a bank account in the name of the business.

1           You invested your personal gardening equipment, with a fair market value of $1,500, in the business.

6           Bought a used trailer on account from Trailers R Us , $800, Inv. #286.

7           Paid the rent for July, $1485, Ck. # 1000.

8           Bought a used backhoe from Deere Equipment, $8,500, paying $4,000 in cash and placing the balance on account, Inv. #3562,       Ck. # 1001.

          10        Bought liability insurance for one year, $2,400, Ck. #1002.

11       Sold landscaping services on account to Bel-Red Business Park,    $2,225, Inv. #100.  

15       Bought supplies on account from Garden Suppliers, Inc., $1,585,        Inv. #6283.

16       Sold landscaping services on account to Phylla Dendron, $1,850,   Inv. #101.

18       Received and paid the bill from Gas To Go for gas and oil for the equipment, $95, Ck. #1003.

19       Sold landscaping services for cash to A Chinzy Company, $1,978,   Inv. #102.

20       Paid on account to Trailers R Us, $600, Inv. #286, Ck #1004.

21       Received on account from Bel-Red Business Park, $725, Inv. 100.

22       Sold landscaping services on account to Bonsai, Inc.,$1,626,         Inv. #103.

25       Received and paid the utility bill, $184, Ck. #1005.

30       Paid salaries of the employees, $3,000, Ck. #1006.

31       You withdrew cash for your personal use, $1,500, Ck. #1007.

Marigold Corp. was organized on January 1, 2021. During its first year, the corporation issued 1,900 shares of $50 par value preferred stock and 125,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $4,100; 2022, $12,700; and 2023, $29,400.

Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 5% and noncumulative. (Do not leave any answer field blank. Enter 0 for amounts.)

Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and cumulative.

Journalize the declaration of the cash dividend at December 31, 2023, under part (b).

Account Titles and Explanation

Date Debit Credit

Dec. 31   

Sam's Construction had a balance in its allowance for doubtful accounts at the end of 2014 of $44,500. Sam reported credit sales of $5,000,000 in 2014 and wrote off receivables of $43,000 during 2014. At the end of the year, Sam estimates un-collectible accounts receivable based on the year-end aging using the assumptions provided at left.

What should the balance be in Sam's Construction allowance for doubtful accounts as of December 31,2015?

Sam's Construction had a balance in its allowance for doubtful accounts at the end of 2014 of $44,500. Sam reported credit sales of $5,000,000 in 2014 and wrote off receivables of $43,000 during 2014. At the end of the year, Sam estimates un-collectible accounts receivable based on the year-end aging using the assumptions provided at left.

What should Sam report as bad debt expense for 2015?

Joe has common stock and preferred stock outstanding. The preferred stock has a par value of $100, a dividend rate of 4.5%, and is cumulative. During the past 3 years, Joe declared and paid dividends provided at left. Compute the amount of dividends paid to preferred and common shareholders each year.

The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.50 per share on January 1, 2017. The remaining 20 percent of Devine’s shares also traded actively at $7.50 per share before and after Holtz’s acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine’s underlying accounts except that a building with a 5-year future life was undervalued by $46,500 and a fully amortized trademark with an estimated 10-year remaining life had a $76,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $351,500.

Following are the separate financial statements for the year ending December 31, 2018:

At year-end, there were no intra-entity receivables or payables.

1. Prepare a worksheet to consolidate these two companies as of December 31, 2018.

2. Prepare a 2018 consolidated income statement for Holtz and Devine.

3. If instead the noncontrolling interest shares of Devine had traded for $5.74 surrounding Holtz’s acquisition date, what is the impact on goodwill?

How would you define a substantial interest in the workings of the firm?

Describe the differences among the cost center, profit center, and investment center. Discuss at least two different measures that can be used to evaluate the performance of an investment center.

The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

Units to be produced:

1st Quarter = 5,400
2nd Quarter = 8,400
3rd Quarter = 7,400
4th Quarter = 6,400

In addition, 6400 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is 3280. Each unit requires 8.40 grams of raw material that costs $1.40 per gram. Management desires to end each quarter with an inventory of raw materials equal to 30% of the following quarter's production needs. The desired ending inventory for the 4th Quarter is 8400 grams. Management plans to pay for 50% of raw material purchases in the quarter acquired and 50% in the following quarter. Each unit requires 0.30 direct labor-hours and direct laborers are paid $10.70 per hour.

1.Prepare the company's direct materials budget for the upcoming fiscal year (Round "Unit cost of raw materials" answers to 2 decimal places).
2.Prepare a schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year.
3.Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Round "Direct labor-hours per unit" and "Direct labor cost per hour" answers to 2 decimal places.)

Define the difference between current and long term liabilities. Creditors use several measures to assess a company's creditworthiness, such as working capital, current ratio, payables turnover, and days' payable. Discuss what these measures are and why it's important to carefully measure cash flows related to current liabilities.

On May 8, 2015, Jett Company (a U.S. company) made a credit sale to Lopez (a Mexican company). The terms of the sale required Lopez to pay 1,340,000 pesos on February 10, 2016. Jett prepares quarterly financial statements on March 31, June 30, September 30, and December 31. The exchange rates for pesos during the time the receivable is outstanding follow.

Compute the foreign exchange gain or loss that Jett should report on each of its quarterly statements for the last three quarters of 2015 and the first quarter of 2016

Compute the amount reported on Jett's balance sheets at the end of its last three quarters

Calculating Weighted-Average Cost Inventory Values The Brattle Corporation began operations in 2018. Information relating to the company’s purchases of inventory and sales of products for 2018 and 2019 is presented below.

2018

March 1 Purchase 220 units @ $12 per unit

June 1 Sold 120 units @ $25 per unit

September 1 Purchase 100 units @ $15 per unit

November 1 Sold 130 units @ $25 per unit

2019

March 1 Purchase 70 units @ $16 per unit

June 1 Sold 80 units @ $30 per unit

September 1 Purchase 100 units @ $18 per unit

November 1 Sold 90 units @ $35 per unit

Calculate the weighted-average cost of goods sold and ending inventory for 2018 and 2019 assuming use of (a) the periodic method and (b) the perpetual method.

a. Weighted-Average Periodic. Do not round your cost per unit. Do not round until your final answer. Round your answers to the nearest whole number.

2018

Cost of goods sold ___3,234_______

Ending inventory _____906_____

2019

Cost of goods sold ____3,195______

Ending inventory ______945____

b. Weighted-Average Perpetual. Do not round your cost per unit. Do not round until your final answer. Round your answers to the nearest whole number.

2018

Cost of goods sold _____3,195_____

Ending inventory _____945_____

2019

Cost of goods sold __________?

Ending inventory __________?

Dividends Per Share

Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,700 shares of cumulative preferred 3% stock, $15 par, and 400,000 shares of $24 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $57,000 ; second year, $77,200 ; third year, $80,900 ; fourth year, $100,600 .

Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".

Assume that Smukers manufactures and sells 15,000 cases of jelly each year. The following data are available for the third quarter:

Total fixed manufacturing overhead..................$45,000

Fixed selling and administrative expenses.......10,000

Sales price per case.........................................32

Direct materials per case ................................12

Direct labor per case........................................ 6

Variable manufacturing overhead per case..... 3

REQUIRED:

1. Compare the cost per case under both absorption costing and variable costing.
2. Compute net income under both absorption costing and variable costing.
3. Reconcile any differences in income. Explain.

HB ltd has been experiencing dwindling sales in its business operations due to competitions from other agents dealing in communication equipment. On 1 January 2006, HB Ltd decided to diversify its operations to the information technology (IT) industry by acquiring SL Ltd, a company dealing in the manufacture of IT equipment and software design.

The summarized financial statements of HB Ltd and SL Ltd were as follows:

Income statement for the year ended 30September 2006

Statement of financial position as at 30 September 2006

                                                       10,000        3,600

Total equity and liabilities            45,600        16,000

Additional information:

1. HB ltd acquired 80% of ordinary share capital of SL ltd for sh. 10,280,000 and also acquired half of the 10% debentures in the company.
2. The fair value of the assets of SL Ltd at the date of acquisition were the same as their book values except for plant whose fair value were more by sh. 3.2 million. As at 1 January 2006, the plant had a remaining useful life of four years. SL Ltd depreciates plant on straight line basis on cost.
3. During the post-acquisition period, HB Ltd sold goods to SL Ltd for sh 12 million. These goods had a cost HB Ltd sh 9 million. Subsequently, SL Ltd sold some of the goods purchased from HB at sh 10 million for 15 million.
4. On 30 June 2006, HB Ltd and SL Ltd paid dividends of sh 1000,000 and 500,000 respectively.
5. Included in the account receivables and payables is sh 750,000 being the amount SL Ltd owed HB Ltd.
6. Goodwill is considered to be impaired by 25% as at September 2006. Goodwill impairment is classified as an administrative expense by the group company.

Required

1. Group Income statement for the year ended 30 September 2006.
2. Group Statement of financial position as at 30 September 2006.