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

On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

1. Borrowed $118,000 for nine years. Will pay $7,500 interest at the end of each year and repay the $118,000 at the end of the 9th year.
2. Established a plant remodeling fund of $492,250 to be available at the end of Year 10. A single sum that will grow to $492,250 will be deposited on January 1 of this year.
3. Agreed to pay a severance package to a discharged employee. The company will pay $76,500 at the end of the first year, $114,000 at the end of the second year, and $151,500 at the end of the third year.
4. Purchased a $177,500 machine on January 1 of this year for $35,500 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year.

References

Section BreakP9-11 Computing Present Values LO9-7, 9-8

11.

value:
7.14 points

Required information

P9-11 Part 1

Required:

1. In transaction (a), determine the present value of the debt. (Round your answer to nearest whole dollar.)

References

eBook & Resources

WorksheetDifficulty: 3 HardLearning Objective: 09-08 Apply the present value concept to the reporting of long-term liabilities.

P9-11 Part 1Learning Objective: 09-07 Compute and explain present values.

Check my work

12.

value:
7.14 points

Required information

P9-11 Part 2

2-a. In transaction (b), what single sum amount must the company deposit on January 1 of this year? (Round your answer to nearest whole dollar.)

2-b. What is the total amount of interest revenue that will be earned? (Round your answer to nearest whole dollar.)

References

eBook & Resources

WorksheetDifficulty: 3 HardLearning Objective: 09-08 Apply the present value concept to the reporting of long-term liabilities.

P9-11 Part 2Learning Objective: 09-07 Compute and explain present values.

Check my work

13.

value:
7.14 points

Required information

P9-11 Part 3

3. In transaction (c), determine the present value of this obligation.

References

eBook & Resources

WorksheetDifficulty: 3 HardLearning Objective: 09-08 Apply the present value concept to the reporting of long-term liabilities.

P9-11 Part 3Learning Objective: 09-07 Compute and explain present values.

Check my work

14.

value:
7.18 points

Required information

P9-11 Part 4

4-a. In transaction (d), what is the amount of each of the equal annual payments that will be paid on the note?

4-b. What is the total amount of interest expense that will be incurred?

I don't understand the question..what method?

Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

The company has reported the following actual results for the product for September:

Required:

a. Compute the materials price variance for September.

b. Compute the materials quantity variance for September.

c. Compute the labor rate variance for September.

d. Compute the labor efficiency variance for September.

e. Compute the variable overhead rate variance for September.

f. Compute the variable overhead efficiency variance for September.

(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Brief Exercise 20-6

Carla Vista Ltd., a public company following IFRS 16, recently signed a lease for equipment from Costner Ltd. The lease term is 3 years and requires equal rental payments of $41,336 at the beginning of each year. The equipment has a fair value at the lease’s inception of $119,300, an estimated useful life of 3 years, and no residual value. Carla Vista pays all executory costs directly to third parties. The appropriate interest rate is 4%. . Using tables, a financial calculator, or Excel functions, calculate the amount of the right-of-use asset and lease liability. Prepare the initial entry to reflect the signing of the lease agreement and the first payment under the lease.

State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows.

The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, number of employees; and Facilities, square footage occupied.

Required:

a. Assume that the bank elects to distribute service department costs to production departments using the direct method. What amount of Communications Department costs is allocated to the Deposits Department?

b. Assume the same method of allocation as in requirement (a). What amount of Administration Department costs is allocated to the Loans Department?

c. Assuming that the bank elects to distribute service department costs to other departments using the step method (starting with Facilities and then Communications), what amount of Facilities Department costs is allocated to the Communications Department?

d. Assume the same method of allocation as in requirement (c). What amount of Communication Department costs is allocated to Facilities?

Wildhorse Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. WILDHORSE RESORT TRIAL BALANCE AUGUST 31, 2017 Debit Credit Cash $25,000 Prepaid Insurance 9,900 Supplies 8,000 Land 26,000 Buildings 126,000 Equipment 22,000 Accounts Payable $9,900 Unearned Rent Revenue 10,000 Mortgage Payable 66,000 Common Stock 102,400 Retained Earnings 9,000 Dividends 5,000 Rent Revenue 82,200 Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 Totals $279,500 $279,500 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2017. 2. An inventory count on August 31 shows $431 of supplies on hand. 3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $4,152 was earned prior to August 31. 5. Salaries of $410 were unpaid at August 31. 6. Rentals of $791 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year.

Can someone provide insight on Facebooks financial analysis against its top 3 publicly traded competitors? I am guess one is Google the second is Youtube. I am not sure who the third is?

Required information

Exercise 6-4A Calculate inventory amounts when costs are rising (LO6-3)

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

During the year, TRC Corporation has the following inventory transactions.

For the entire year, the company sells 432 units of inventory for $62 each.

Exercise 6-4A Part 3

3. Using weighted-average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 4 decimal places and all other answers to the nearest whole number.)

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2006 by two talented engineers with little business training. In 2018, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2018 before any adjusting entries or closing entries were prepared.

1. A five-year casualty insurance policy was purchased at the beginning of 2016 for $31,500. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2018, the company changed the salvage value used in calculating depreciation for its office building. The building cost $592,000 on December 29, 2007, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $120,000. Declining real estate values in the area indicate that the salvage value will be no more than $30,000.
3. On December 31, 2017, merchandise inventory was overstated by $21,500 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2018 for both financial statement and income tax purposes. The change will cause a $925,000 increase in the beginning inventory at January 1, 2019.
5. At the end of 2017, the company failed to accrue $14,800 of sales commissions earned by employees during 2017. The expense was recorded when the commissions were paid in early 2018.
6. At the beginning of 2016, the company purchased a machine at a cost of $650,000. Its useful life was estimated to be 10 years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2017, was $416,000. On January 1, 2018, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.70% is a better indication of the actual cost. Management effects the change in 2018. Credit sales for 2018 are $3,300,000; in 2017 they were $3,000,000.
8. 
   Required:
   For each situation:
   1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
   2. Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for 2018 related to the situation described. (Ignore tax effects.)
     
   

The following cost data relate to the manufacturing activities of Black Company during the just completed year: Manufacturing overhead costs incurred: Property taxes, factory $ 2,900 Utilities, factory 4,900 Indirect labor 9,900 Depreciation, factory 23,900 Insurance, factory 5,900 Total actual manufacturing overhead costs $ 47,500 Other costs incurred: Purchases of raw materials $ 32,200 Direct labor cost $ 39,400 Inventories: Raw materials, beginning $ 8,400 Raw materials, ending $ 6,700 Work in process, beginning $ 5,100 Work in process, ending $ 7,400 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 11,500 machine-hours was recorded for the year. All raw materials ultimately become direct materials—none are classified as indirect materials.

Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year.

______ overhead cost __________

2. Prepare a schedule of cost of goods manufactured for the year using the indirect method. (Enter all deductions as a negative.)

Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2018 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 40% in all years. Any tax effects should be adjusted through the deferred tax liability account.

1. Fleming Home Products introduced a new line of commercial awnings in 2017 that carry a one-year warranty against manufacturer’s defects. Based on industry experience, warranty costs were expected to approximate 4% of sales. Sales of the awnings in 2017 were $2,500,000. Accordingly, warranty expense and a warranty liability of $100,000 were recorded in 2017. In late 2018, the company’s claims experience was evaluated and it was determined that claims were far fewer than expected: 3% of sales rather than 4%. Sales of the awnings in 2018 were $3,000,000, and warranty expenditures in 2018 totaled $68,250.
2. On December 30, 2014, Rival Industries acquired its office building at a cost of $800,000. It was depreciated on a straight-line basis assuming a useful life of 40 years and no salvage value. However, plans were finalized in 2018 to relocate the company headquarters at the end of 2022. The vacated office building will have a salvage value at that time of $600,000.
3. Hobbs-Barto Merchandising, Inc., changed inventory cost methods to LIFO from FIFO at the end of 2018 for both financial statement and income tax purposes. Under FIFO, the inventory at January 1, 2018, is $590,000.
4. At the beginning of 2015, the Hoffman Group purchased office equipment at a cost of $220,000. Its useful life was estimated to be 10 years with no salvage value. The equipment was depreciated by the sum-of-the-years’-digits method. On January 1, 2018, the company changed to the straight-line method.
5. In November 2016, the State of Minnesota filed suit against Huggins Manufacturing Company, seeking penalties for violations of clean air laws. When the financial statements were issued in 2017, Huggins had not reached a settlement with state authorities, but legal counsel advised Huggins that it was probable the company would have to pay $100,000 in penalties. Accordingly, the following entry was recorded:

Late in 2018, a settlement was reached with state authorities to pay a total of $240,000 in penalties.

6. At the beginning of 2018, Jantzen Specialties, which uses the sum-of-the-years’-digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net earnings by $335,000.

Required:
For each situation:
1. Identify the type of change.
2. Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described.

Presented below are certain account balances of Metlock Products Co.

From the foregoing, compute the following: (a) total net revenue, (b) net income, (c) income attributable to controlling stockholders, if Metlock has allocation to noncontrolling interest of $18,440.

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at the end of the year was $27. All of the company’s sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,220 $ 1,250 Accounts receivable, net 9,000 6,600 Inventory 13,200 11,700 Prepaid expenses 640 500 Total current assets 24,060 20,050 Property and equipment: Land 9,100 9,100 Buildings and equipment, net 48,262 43,433 Total property and equipment 57,362 52,533 Total assets $ 81,422 $ 72,583 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 20,400 $ 19,400 Accrued liabilities 1,020 830 Notes payable, short term 140 140 Total current liabilities 21,560 20,370 Long-term liabilities: Bonds payable 8,700 8,700 Total liabilities 30,260 29,070 Stockholders' equity: Common stock 700 700 Additional paid-in capital 4,000 4,000 Total paid-in capital 4,700 4,700 Retained earnings 46,462 38,813 Total stockholders' equity 51,162 43,513 Total liabilities and stockholders' equity $ 81,422 $ 72,583 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 70,980 $ 65,000 Cost of goods sold 38,595 34,000 Gross margin 32,385 31,000 Selling and administrative expenses: Selling expenses 11,100 10,600 Administrative expenses 7,200 6,200 Total selling and administrative expenses 18,300 16,800 Net operating income 14,085 14,200 Interest expense 870 870 Net income before taxes 13,215 13,330 Income taxes 5,286 5,332 Net income 7,929 7,998 Dividends to common stockholders 280 525 Net income added to retained earnings 7,649 7,473 Beginning retained earnings 38,813 31,340 Ending retained earnings $ 46,462 $ 38,813 Required: Compute the following financial data for this year: 1. Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) 6. Total asset turnover. (Round you