The Prince-Robbins partnership has the following capital account balances on January 1, 2018:

Prince, Capital $ 150,000

Robbins, Capital 140,000

Prince is allocated 60 percent of all profits and losses with the remaining 40 percent assigned to Robbins after interest of 6 percent is given to each partner based on beginning capital balances.

On January 2, 2018, Jeffrey invests $85,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 6 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2018, the partnership reports a net income of $24,000.

a. Prepare the journal entry to record Jeffrey’s entrance into the partnership on January 2, 2018.

b. Determine the allocation of income at the end of 2018.

22.) bob and sally transferred property to new in exchange for 100% of news stock but failed to attach a 351 election to the corporate tax return the failure to elect will trigger recognition of any gains reazlied?

True OR False

23.) bob and ted transferred property to new in return for 67% if news common stock. In the same transaction carol received 33% of new cos stock in return for legal services. Bob and teds transfers will qualify for 351 treatment however carols will not?

True OR False

24.)Janice transferred property with a FMV of 100,000 basis 25,000 in return for 50% of news stock. In the same transaction jerry received 50% of news stock in return for property with a FMV if 15,000 plus marketing services he will provide over the next three months. The transactions will qualify for 351 treatment?

True OR False

1. Research has shown that for a company’s toy truck every increase of $0.10 in the price will

result in 200 fewer sales. At one point, when the price was $2.35, the company sold 18,500

trucks. A reasonable employee of the company wondered aloud what price would maximize

the revenue generated by the sale of the trucks for the company.

a.) Determine the formula of the function N(x) that gives the number of trucks sold when

the price is x dollars. Draw a graph of the function N(x).

b.) Determine the formula for the function R(x) that gives the revenue generated when

the price is x dollars. Graph y=R(x).

c.) Determine algebraically the price that yields the maximum revenue. How much

revenue is generated? How many trucks are sold at this price?

d.) Let’s say that the company wants to sell 20,000 trucks. How much should they

charge and how much revenue is generated?

e.) What is the average rate of change in revenue from x=$2.50 to x=$2.85? What is the

average rate of change from x=$3.00 to $3.25? What units are associated with the

average rate of change? Interpret each average rate of change in the context of the

given situation. What do these average rates of change tell you about the shape of the

graph of R(x)?

1) A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $75,930 and is expected to generate cash inflows of $30,000 each year for three years. The approximate internal rate of return on this project is

2)

A company has a minimum required rate of return of 9%. It is considering investing in a project which costs $140,000 and is expected to generate cash inflows of $56,000 at the end of each year for three years. The net present value of this project is (use the tables in Appendix D)

3)

A company projects an increase in net income of $180,000 each year for the next five years if it invests $900,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $300,000. What is the annual rate of return on this investment?

4)

If an asset cost $70,000 and is expected to have a $10,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of $10,000 each year, the cash payback period is

Dinkins Company purchased a truck that cost $81,000. The company expected to drive the truck 100,000 miles over its 5-year useful life, and the truck had an estimated salvage value of $12,500. If the truck is driven 33,500 miles in the current accounting period, what would be the amount of depreciation expense for the year? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

• $22,948

• $27,135

• $13,700

• $32,400

The balance sheet of Flo's Restaurant showed total assets of $400,000, liabilities of $120,000 and stockholders’ equity of $330,000. An appraiser estimated the fair value of the restaurant assets at $465,000. If Alice Company pays $585,000 cash for the restaurant, what is the amount of goodwill?

• $120,000

• $185,000

• $255,000

• $240,000

On January 1, Year 1, Friedman Company purchased a truck that cost $56,000. The truck had an expected useful life of 100,000 miles over 8 years and an $9,000 salvage value. During Year 2, Friedman drove the truck 30,000 miles. Friedman uses the units-of-production method. What is depreciation expense in Year 2? (Do not round intermediate calculations.):

• $14,100

• $16,800

• $5,875

• $7,000

Chico Company paid $610,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture, $165,000; Building, $510,000, and Land, $135,000. Based on this information, what is the cost that should be allocated to the office furniture? (Round your intermediate percentages to four decimal places: ie .054231 = 5.42%.)

• $165,000

• $124,257

• $158,333

• $52,500

On January 1, Year 1, Friedman Company purchased a truck that cost $35,000. The truck had an expected useful life of 8 years and an $7,000 salvage value. Friedman uses the double-declining-balance method. What is the book value of the truck at the end of Year 1? (Do not round intermediate calculations.)

$19,250

• $26,250

• $28,000

• $21,000

On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $72,000. The cab has an expected salvage value of $26,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 54,000 miles the first year and 84,000 the second year. What is the amount of depreciation expense reported on the Year 2 income statement and the book value of the taxi at the end of Year 2, respectively? (Do not round intermediate calculations.)

• $30,240 and $22,320

• $30,240 and $-3,680

• $19,320 and $40,260

• $19,320 and $14,260

The following events apply to Gulf Seafood for the Year 1 fiscal year:

1. The company started when it acquired $35,000 cash by issuing common stock.
2. Purchased a new cooktop that cost $12,900 cash.
3. Earned $21,300 in cash revenue.
4. Paid $11,900 cash for salaries expense.
5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $2,600. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1.

b. Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period. (Amounts to be deducted should be indicated by a minus sign.)
c. What is the net income for Year 1?

d. What amount of depreciation expense would Gulf Seafood report on the Year 2 income statement?
e. What amount of accumulated depreciation would Gulf Seafood report on the December 31, Year 2, balance sheet?
f. Would the cash flow from operating activities be affected by depreciation in Year 2?

Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,425,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $370,000; Building, $1,100,000 and Equipment, $730,000. (Round percentages to two decimal places: ie .054 = 5%).

What value will be recorded for the building?

• $175,000

• $325,000

• $712,500

• $1,100,000

  What journal entry would be used to record the purchase of the above assets?

• Land	370,000
  Building	1,100,000
  Equipment	730,000
  Cash		2,200,000

• Land	370,000
  Building	1,100,000
  Equipment	730,000
  Cash		350,000
  Notes payable		1,850,000

• Land	370,000
  Building	1,100,000
  Equipment	730,000
  Cash		1,075,000
  Notes payable		350,000
  Gain on purchase of long-term assets		775,000

• Land	242,250
  Building	712,500
  Equipment	470,250
  Cash		350,000
  Notes payable		1,075,000

On April 1, Year 1, Fossil Energy Company purchased an oil producing well at a cash cost of $12,000,000. It is estimated that the oil well contains 600,000 barrels of oil, of which only 500,000 can be profitably extracted. By December 31, Year 1, 25,000 barrels of oil were produced and sold. What is depletion expense for Year 1 on this well?

• $800,000

• $600,000

• $480,000

• $500,000

  Which of the following terms is used to describe the process of expense recognition for property, plant and equipment?

• Amortization

• Depreciation

• Depletion

• Revision

Use the following information for the Problems below.

Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s income statement and balance sheets follow.

Additional Information on Year 2017 Transactions

1. The loss on the cash sale of equipment was $15,125 (details in b).
2. Sold equipment costing $76,875, with accumulated depreciation of $40,125, for $21,625 cash.
3. Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term note payable for the balance.
4. Borrowed $5,000 cash by signing a short-term note payable.
5. Paid $55,125 cash to reduce the long-term notes payable.
6. Issued 3,500 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $52,100.

Problem 16-3A Indirect: Statement of cash flows LO A1, P1, P2, P3

Required:
1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

1. What Companies created each of these methodologies (Lean and Six Sigma) and approximately what date?
2. Define “Lean” and “Six Sigma” and identify the purpose or goal of each in their most fundamental terms.
3. What is “Lean Six Sigma”?
4. What is the basic methodology used in Lean versus the basic methodology used in Six Sigma?
5. What are the major tools used by Lean versus by Six Sigma?
6. Identify a company that has implemented, Lean and report a significant quantitative measure of improvement.
7. Identify a company that has implemented, Six Sigma and report a significant quantitative measure of improvement.
8. Identify a company that has implemented, Lean Six Sigma and report a significant quantitative measure of improvement.

Question 11

Pronghorn Corporation was organized on January 1, 2020. It is authorized to issue 11,000 shares of 8%, $100 par value preferred stock, and 498,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.

*Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

*Post to the stockholders’ equity accounts. (Post entries in the order of journal entries presented in the previous part.)

*Prepare the paid-in capital section of stockholders’ equity at December 31, 2020. (Enter the account name only and do not provide the descriptive information provided in the question.)

GrandSlam, Inc., incurred the following costs during March: Selling expenses $ 158,400 Direct labor 284,000 Interest expense 41,200 Manufacturing overhead, actual 130,940 Raw materials used 482,000 Administrative expenses 119,400 During the month, 19,800 units of product were manufactured and 10,900 units of product were sold. On March 1, GrandSlam, Inc., carried no inventories. On March 31, there were no inventories for raw materials or work in process. Required:

a. Calculate the cost of goods manufactured during March and the average cost per unit of product manufactured. (Round "Average cost per unit" to 2 decimal places.)

b. Calculate the cost of goods sold during March. (Round "Average cost per unit" to 2 decimal places.)

c-1. Calculate the difference between cost of goods manufactured and cost of goods sold. (Round "Average cost per unit" to 2 decimal places.)

c-2. How will this amount be reported in the financial statements? Finished goods inventory Raw materials inventory Work in progress inventory

d. Prepare a traditional (absorption) income statement for GrandSlam, Inc., for the month of June. Assume that sales for the month were $1,031,000 and the company's effective income tax rate was 30%. (Round "Average cost per unit" to 2 decimal places.)

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

1. Issued 80,000 shares of common stock at $21, receiving cash.
2. Issued 13,000 shares of preferred 2% stock at $116.
3. Purchased 48,000 shares of treasury common for $20 per share.
4. Sold 24,000 shares of treasury common for $23 per share.
5. Sold 16,000 shares of treasury common for $18 per share.
6. Declared cash dividends of $2.00 per share on preferred stock and $0.10 per share on common stock.
7. Paid the cash dividends.

Journalize the entries to record the transactions.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Required:

a. Issued 80,000 shares of common stock at $21, receiving cash.

b. Issued 13,000 shares of preferred 2% stock at $116.

c. Purchased 48,000 shares of treasury common for $20 per share.

d. Sold 24,000 shares of treasury common for $23 per share.

e. Sold 16,000 shares of treasury common for $18 per share.

f. Declared cash dividends of $2.00 per share on preferred stock and $0.10 per share on common stock.

g. Paid the cash dividends.

How would you weigh the time value of money? Is there something in your life, financial or otherwise, that you would have paid in advance for a better return later? How much? How long would you be willing to wait for that return? What would be an acceptable return?

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 written response 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.

Describe the differences between managerial and financial accounting. Include discussion on the differences as they relate to the primary users of the information and whether they are both required to follow the Generally Accepted Accounting Principles (GAAP).

Also include a discussion on the principal differences between activity-based costing (ABC) and traditional product costing?

Assume Bella Donna’s General Store bought, on credit, a truckload of merchandise from American Wholesaling costing $1,610. The company paid $104 in transportation cost to National Trucking to deliver the merchandise to Bella Donna. Bella Donna immediately returned goods to American Wholesaling costing $540, and then took advantage of American Wholesaling’s 1/10, n/30 purchase discount. When Bella Donna pays American Wholesale within the discount period, the debit to accounts payable will be $______.