Questions
Degreed accountants have the opportunity to obtain certifications in the accounting career field that they choose....

Degreed accountants have the opportunity to obtain certifications in the accounting career field that they choose. Research and describe the types and requirements of certifications that are available. How do XBRL, blockchain, and internet privacy/security influence these professions?

In: Accounting

A loan is taken out for $25,000 from ACME Credit Union at 9% APR, compounded monthly....

A loan is taken out for $25,000 from ACME Credit Union at 9% APR, compounded monthly. The loan is to be repaid in equal monthly payments over a 5-year period.

Find the:

1) loan payment amount,

2) interest payment in the 25th period,

3) principal payment in the 25th period,

4) the unpaid principle after the 25th payment,

5) and the loan pay-off amount at the end of the 25th period

In: Accounting

Your local athletic center is planning a $1.32 million expansion to its current facility. This cost...

Your local athletic center is planning a $1.32 million expansion to its current facility. This cost will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $624,000 in additional annual sales. Variable costs are 38 percent of sales, the annual fixed costs are $79,400, and the tax rate is 25 percent. The athletic center paid $125,000 on a feasibility study and estimates interest expenses to be $65,000 per year. The expansion of the athletic center will reduce the metered parking area and the athletic center will lose $32,000 annually from the loss in parking. What is the annual operating cash flow of this project?

In: Accounting

Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items...

Lotus Ltd has identified the following overhead costs and cost
drivers for next year
Overhead Items E ( cost) $
Setups cost 90,000
Ordering Cost 50,000
Maintenance cost 150,000
Power 30,000
Cost Driver E( actual transactions)
Number of setups 400
Number of orders 4,000
Machine Hours 25,000
Kilowatt hours 75,000
The following is one of the jobs completed during the year
Job 700 Job 701
Direct materials $1200 $600
Direct Labor $900 $400
Units completed 250 100
DLH 40 20
Number of setups 2 1
Number of orders 10 4
Machine hours 50 40
Kilowatt hours 60 25
Actual overhead $2500 $1250
The company’s practical activity is 9000 DHL

REQUIRED
Part A
1. Calculate the predetermined rate for Job 700 using FBC
based on DHL for each job
2. Calculate total product cost using FBC based on DHL for
job 700
3. Calculate the unit cost of the job
4. Is the overhead over-applied or under-applied
Part B
1. Calculate the PR for job 701 using machine hours
2. Calculate the total product cost using FBC based on machine
hours for job 701
3. Calculate the unit cost
4. Is the overhead under or over-applied?

In: Accounting

The equity sections from OnPoint Group’s 2016 and 2017 year-end balance sheets follow. Stockholders’ Equity (December...

The equity sections from OnPoint Group’s 2016 and 2017 year-end balance sheets follow. Stockholders’ Equity (December 31, 2016) Common stock—$8 par value, 120,000 shares authorized, 50,000 shares issued and outstanding $ 400,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 330,000 Total stockholders’ equity $ 790,000 Stockholders’ Equity (December 31, 2017) Common stock—$8 par value, 120,000 shares authorized, 55,520 shares issued, 4,000 shares in treasury $ 444,160 Paid-in capital in excess of par value, common stock 115,200 Retained earnings ($64,000 restricted by treasury stock) 590,000 1,149,360 Less cost of treasury stock (64,000 ) Total stockholders’ equity $ 1,085,360 The following transactions and events affected its equity during year 2017. Jan. 5 Declared a $0.60 per share cash dividend, payable on January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $0.60 per share cash dividend, payable on April 10. July 5 Declared a $0.60 per share cash dividend, payable on July 10. July 31 Declared a 12% stock dividend when the stock’s market value was $18 per share. Aug. 14 Issued the stock dividend that was declared on July 31. Oct. 5 Declared a $0.60 per share cash dividend, date of record October 10. need to find solve the general journal, general ledger, trial balance, cash dividends, and stock dividend

In: Accounting

You have $1,000,000 (One million USD). This week, you will purchase the currency of a country...

You have $1,000,000 (One million USD). This week, you will purchase the currency of a country with this amount. In Week 6, you will exchange that currency back into $ (USD). You cannot trade this currency in the intervening time – one purchase this Week and one sale in Week 6.  


For your written assignment, clearly state what you purchased and when. Write a minimum of 1 page on your prediction of what will happen with this currency exchange rate by Week 6. What besides just a guess can you use to make your prediction? What events might drive the currencies up or down in these two countries? Are there any economic, political or cultural trends or anticipated risks that might impact this rate? Any analysis that you have researched or tools that can help you in your prediction? Think of your facilitator as the CFO of your company, who knows little about this country, and how helpful your prediction will be.

In: Accounting

Costing systems provide information that is used for a large variety of business decisions including planning...

Costing systems provide information that is used for a large variety of business decisions including planning production of goods and services, pricing products, and controlling associated costs of production. Thus, the choice of an appropriate costing system is a key underlying foundation for good decision making. In a response of 400-600 words address the following questions:

  1. In what type of situation would a company use multiple cost accounting systems?
  2. What factors should a company take into consideration in deciding whether to use job order costing or process costing?
  3. Describe two products or services that might use both process and job order costing methods to determine the cost of a finished unit.

In: Accounting

Johnson Controls Corp., a major U.S. auto parts supplier, has a manufacturing subsidiary in Nuevo Laredo,...

Johnson Controls Corp., a major U.S. auto parts supplier, has a manufacturing subsidiary in Nuevo Laredo, Mexico, which assembles wiring harnesses for auto electrical systems. Quarterly, Johnson Controls must consolidate the financial statements of all its foreign subsidiaries into one overall corporate-wide financial statement as required by U.S. accounting standards. This results in translation gains and losses as exchange rates fluctuate against the U.S. dollar. The Mexican peso has been particularly volatile the last few years so the Treasurer of Johnson Controls has been following the translation exposure of the Mexican subsidiary with unusual interest. Prepare the Translation Exposure Report by both the current rate and temporal methods from the balance sheet information for the Mexican subsidiary presented below (all accounts are in pesos 000’s).

Assets                                                               Liabilities                                  

Cash                             Ps 5400                         Accounts Payable                                    Ps 4600

Accounts Receivable             8750                         Bank loans                                    13800

Inventory                             12860                         Bonds                                           8370

Plant & Equipment              25430                        Common Stock                              24000

                                                                        Retained Earnings                            1670

  1. If the exchange rate is Ps 14.2650/$ at the end of the next quarter, what would be the translation gain or loss by the a. current rate method and b. temporal method?
  2. If the exchange rate is Ps 16.8455/$ at the end of the next quarter, what would be the translation gain or loss by the a. current rate method and b. temporal method?            

In: Accounting

You are considering an investment for which you require a 13.5 percent rate of return. The...

You are considering an investment for which you require a 13.5 percent rate of return. The investment costs $58,900 and will produce cash inflows of $25,000 for 3 years. Should you accept this project based on its internal rate of return? Why or why not?


A. Yes; because the IRR is 13.13 percent
B. Yes; because the IRR is 13.65 percent
C. Yes; because the IRR is 13.67 percent
D. No; because the IRR is 13.13 percent
E. No; because the IRR is 13.65 percent

F. There is no IRR for the project

In: Accounting

CH 12 Homework Question 4 of 5 - / 1 View Policies Current Attempt in Progress...

CH 12 Homework

Question 4 of 5

- / 1

View Policies

Current Attempt in Progress

Blue Spruce Corp.’s comparative balance sheets are presented below:

Blue Spruce Corp.
Comparative Balance Sheets
December 31

2019

2018

Cash

$ 16,600

$ 17,700

Accounts receivable

25,400

22,000

Investments

19,850

15,750

Equipment

59,750

70,050

Accumulated depreciation—equipment

(14,250

)

(10,100

)

   Total

$107,350

$115,400

Accounts payable

$ 14,450

$ 11,050

Bonds payable

10,600

30,100

Common stock

50,300

45,100

Retained earnings

32,000

29,150

   Total

$107,350

$115,400


Additional information:

1. Net income was $18,450. Dividends declared and paid were $15,600.
2. Equipment which cost $10,300 and had accumulated depreciation of $1,900 was sold for $3,500.
3. No noncash investing and financing activities occurred during 2019.

Prepare a statement of cash flows for 2019 using the indirect method.

Compute free cash flow

In: Accounting

Paula is considering forming her own pool service and supply company. She has decided to incorporate...

Paula is considering forming her own pool service and supply company. She has decided to incorporate the business to limit her legal liability. She invests $39,000 of her own savings and receive 3,000 shares of common stock. Her first year of operations results in the following amounts at the end of the year December 31, current year: Cash in bank, $13,800; amounts due from customers for services rendered, $4,200; pool supplies inventory, $16,800; equipment, $29,900 ($5,000 in depreciation); amounts owed to a pool supply wholesaler, $5,400; loan

payable to the bank, $6,900 at 10% interest per year. She has $13,400 in retained earnings.

Paula sees next year (Year 2) sales of $71,400, wages (DL) of $25,900, cost of supplies used $10,100, other administrative expenses $6,400, and income tax expense of $5,900. She expects to pay herself a $10,000 dividend as the sole stockholder of the company. See collected all of the outstanding AR and 66,000 of current year sales.

Please make opening (end of year 1) and closing balance sheet, and an income statement.

In: Accounting

Rundle Company is a retail company that specializes in selling outdoor camping equipment. The company is...

Rundle Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks:

Problem 14-23 Part 1

Required

  1. October sales are estimated to be $350,000, of which 35 percent will be cash and 65 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget.

  2. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts.

  3. The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month’s cost of goods sold. However, ending inventory of December is expected to be $13,100. Assume that all purchases are made on account. Prepare an inventory purchases budget.

  4. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the following month. Prepare a cash payments budget for inventory purchases.

  5. Budgeted selling and administrative expenses per month follow:

Salary expense (fixed) $ 19,100
Sales commissions 4 % of Sales
Supplies expense 2 % of Sales
Utilities (fixed) $ 2,500
Depreciation on store fixtures (fixed)* $ 5,100
Rent (fixed) $ 5,900
Miscellaneous (fixed) $ 2,300
  1. *The capital expenditures budget indicates that Rundle will spend $153,400 on October 1 for store fixtures, which are expected to have a $31,000 salvage value and a two-year (24-month) useful life.

Use this information to prepare a selling and administrative expenses budget.

  1. Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses.

  2. Rundle borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 2 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $23,000 cash cushion. Prepare a cash budget.

Rundle Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks:

Problem 14-23 Part 2

  1. Prepare a pro forma income statement for the quarter.

  2. Prepare a pro forma balance sheet at the end of the quarter.

  3. Prepare a pro forma statement of cash flows for the quarter.

In: Accounting

The cash account for American Medical Co. at April 30 indicated a balance of $14,740. The...

The cash account for American Medical Co. at April 30 indicated a balance of $14,740. The bank statement indicated a balance of $17,460 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

  1. Checks outstanding totaled $6,290.
  2. A deposit of $6,550, representing receipts of April 30, had been made too late to appear on the bank statement.
  3. The bank collected $3,400 on a $3,230 note, including interest of $170.
  4. A check for $440 returned with the statement had been incorrectly recorded by American Medical Co. as $400. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
  5. A check drawn for $40 had been erroneously charged by the bank as $400.
  6. Bank service charges for April amounted to $20.

In: Accounting

Problem 12-9 Securities held-to-maturity; securities available for sale, trading securities and equity investments [LO12-1, 12-2, 12-3,...

Problem 12-9 Securities held-to-maturity; securities available for sale, trading securities and equity investments [LO12-1, 12-2, 12-3, 12-4, 12-5]

Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated’s investment activities during the last quarter of 2018 and the first month of 2019. The only securities held by Amalgamated at October 1 were $55 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1 at face value and held in Amalgamated’s trading portfolio. The company’s fiscal year ends on December 31.

2018
Oct. 18 Purchased 2 million preferred shares of Millwork Ventures Company for $63 million.
31 Received semiannual interest of $3.3 million from the Kansas Abstractors bonds.
Nov. 1 Purchased 10% bonds of Holistic Entertainment Enterprises at their $120 million face value, to be held until they mature in 2025. Semiannual interest is payable April 30 and October 31.
1 Sold the Kansas Abstractors bonds for $49 million because rising interest rates are expected to cause their fair value to continue to fall. No unrealized gains and losses had been recorded on these bonds previously.
Dec. 1 Purchased 12% bonds of Household Plastics Corporation at their $40 million face value, to be held until they mature in 2028. Semiannual interest is payable May 31 and November 30.
20 Purchased U. S. Treasury bonds for $7.5 million as trading securities, hoping to earn profits on short-term differences in prices.
21 Purchased 4 million common shares of NXS Corporation for $54 million, planning to earn profits from dividends or gains if prevailing market conditions encourage sale.
23 Sold the Treasury bonds for $8.1 million.
29 Received cash dividends of $3 million from the Millwork Ventures Company preferred shares.
31 Recorded any necessary adjusting entry(s) and closing entries relating to the investments. The market price of the Millwork Ventures Company preferred stock was $28.50 per share and $15.50 per share for the NXS Corporation common. The fair values of the bond investments were $58.6 million for Household Plastics Corporation and $18.6 million for Holistic Entertainment Enterprises.
2019
Jan. 7 Sold the NXS Corporation common shares for $52 million.


Required:
Prepare the appropriate journal entry for each transaction or event. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).)

  • 1

    Record the purchase of 2 million preferred shares of Millwork Ventures Company for $63 million.

  • 2

    Record the receipt of semiannual interest of $3.3 million from the Kansas Abstractors bonds.

  • 3

    Record the purchase of 10% bonds of Holistic Entertainment Enterprises at their $120 million face value.

  • 4

    Record the entry to adjust to fair value on the date of sale of the Kansas Abstractor bonds.

  • 5

    Record the sale of the investment in Kansas Abstractors bonds.

  • 6

    Record the purchase of 12% bonds of Household Plastics Corporation at their $40 million face value.

  • 7

    Record the purchase of U.S. Treasury bonds for $7.5 million.

  • 8

    Record the purchase of 4 million common shares of NXS Corporation for $54 million.

  • 9

    Record the entry to adjust to fair value on the date of sale of the U.S. Treasury bonds.

  • 10

    Record the sale of the Treasury bonds for $8.1 million.

  • 11

    Record the receipt of cash dividends of $3 million from the Millwork Ventures Company preferred shares.

  • 12

    Record the accrued interest.

  • 13

    Record the entry to adjust to fair value for the Millwork Ventures preferred stock.

  • 14

    Record the entry to adjust to fair value for the NXS Corporation common shares.

  • 15

    Record the entry to adjust to fair value on the date of sale of the NXS Corporation common shares.

  • 16

    Record the sale of the NXS Corporation common shares for $52 million.

In: Accounting

Describe the application of cost volume profit analysis to a new restaurant concept as a memo

Describe the application of cost volume profit analysis to a new restaurant concept as a memo

In: Accounting