Please fill in all of these amounts and show you arrived at your calculations.

Sage Co. sells $440,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 8%. On October 1, 2018, Sage buys back $132,000 worth of bonds for $137,000 (includes accrued interest).

Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.

Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

6/1/17 Cash-Debit Premium on Bonds Payable-Credit Bonds Payable-Credit

Interest Expense-Debit Premium on Bonds Payable-Debit Cash-Credit

Interest Expense-Debit Premium on Bonds Payable-Debit Interest Payable-Credit (3 entries)

Interest Expense-Debit Interest Payable-Debit Premium on Bonds Payable-Debit Cash-Credit  

I

Bonds Payable-Debit Premium on Bonds Payable-? Gain on Redemption of Bonds-? Cash-Credit

Bonds Payable-Debit Premium on Bonds Payable-? Gain on Redemption of Bonds-Debit Cash-Credit

3 Entries

3 Entries

4 Entries

12/1/19 3 Entries

Comparative financial statement data for Carmono Company follow:

For this year, the company reported net income as follows:

This year Carmono declared and paid a cash dividend. There were no sales of property, plant, and equipment during this year. The company did not repurchase any of its own stock this year.

Required:

1. Using the indirect method, prepare a statement of cash flows for this year.

2. Compute Carmono’s free cash flow for this year.

SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system: Driver and guard wages $ 1,180,000 Vehicle operating expense 610,000 Vehicle depreciation 490,000 Customer representative salaries and expenses 520,000 Office expenses 380,000 Administrative expenses 680,000 Total cost $ 3,860,000 The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages 50 % 35 % 10 % 5 % 100 % Vehicle operating expense 70 % 5 % 0 % 25 % 100 % Vehicle depreciation 60 % 15 % 0 % 25 % 100 % Customer representative salaries and expenses 0 % 0 % 90 % 10 % 100 % Office expenses 0 % 20 % 30 % 50 % 100 % Administrative expenses 0 % 5 % 60 % 35 % 100 % Required: Complete the first stage allocations of costs to activity cost pools.

The accountant for Baird’s Dress Shop prepared the following cash budget. Baird’s desires to maintain a cash cushion of $24,000 at the end of each month. Funds are assumed to be borrowed and repaid on the last day of each month. Interest is charged at the rate of 1 percent per month.

Required

1. Complete the cash budget by filling in the missing amounts.

2. Determine the amount of net cash flows from operating activities Baird’s will report on the third quarter pro forma statement of cash flows.

3. Determine the amount of net cash flows from financing activities Baird’s will report on the third quarter pro forma statement of cash flows.

Complete the cash budget by filling in the missing amounts. (Any shortages or repayments should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.)

Determine the amount of net cash flows from both operating and financing activities Baird's will report on the third quarter pro forma statement of cash flows. (Round intermediate calculations and final answers to the nearest whole dollar amount.)

rev: 09_29_2016_QC_CS-63658

The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Las Lemus, Inc. for an operating period.

Assuming Las Lemus, Inc. uses weighted-average (periodic) inventory procedures, the ending inventory cost is:

At 30 June 2013, the financial statements of Detroit Ltd showed a building with a cost of $300,000 and accumulated depreciation of $150,000. The business uses the straight-line method to depreciate the building. When acquired, the building’s useful life was estimated at 50 years with no residual value. On 1 January 2019, Detroit Ltd completed structural improvements to the building costing $93,000 and paid with cash. As a result of the improvements, the useful life of the building was changed to 50 years from the date of the improvements. No change is expected in the residual value. Ignore GST.

Required:

1. Calculate the number of years the building had been depreciated to 30 June 2013.
2. Prepare the general journal entry to record the cost of the structural improvements on 1 January 2019
3. Prepare the general journal entry to record the building’s depreciation expense for the year ended 30 June 2019. Assume no depreciation had been recorded since 30 June 2018.

Sales Tax

Far and Wide Broadband provides Internet connection services to customers living in remote areas. During February 2020, it billed a customer a total of $295,000 before taxes. Weston also must pay the following taxes on these charges:

1. State of Kansas sales tax of 6%
2. Federal excise tax of 0.2%
3. State of Kansas excise tax of 0.4%

Required:

Assuming Far and Wide collects these taxes from the customer, what journal entry would Far and Wide make when the customer pays their bill? If an amount box does not require an entry, leave it blank.

“One of the means by which the interests of the shareholders and other parties interested in the affairs of a company can be satisfied is the production and availability of comprehensive information about the financial and other standings through an annual report”.

(a)        Identify and briefly discuss each of the components of a financial statement.

(b)        Describe the functions of the auditor’s reports and the types of opinions in an annual report.

(c)        An annual report consists of some other basic reports that are qualitative in nature. Enumerate and examine the reasons for the inclusion of such reports in the annual report of a company.

At year-end (December 31), Chan Company estimates its bad debts as 0.40% of its annual credit sales of $879,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $440 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions.

Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Holly Springs paid for the lathe by issuing a $310,000 note due in three years. Interest, specified at 4%, was payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions for which 8% was a reasonable rate of interest. Holly Springs uses the effective interest method of amortization.

Required:
1. Prepare the journal entry on January 1, 2018, for Holly Springs’ purchase of the lathe.
2. Prepare an amortization schedule for the three-year term of the note.
3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity.

A project has an initial cost of $160,000 and an estimated salvage value after 15 years of $75,000. Estimated average annual receipts are $30,000. Estimated average annual disbursements are $16,000. Assuming that annual receipts and distributions will be uniform for the 15 years, compute the prospective rate of return before taxes.

Liang Company began operations on January 1, 2015. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.

2015

1. Sold $1,348,600 of merchandise (that had cost $980,800) on credit, terms n/30.
2. Wrote off $19,500 of uncollectible accounts receivable.
3. Received $665,200 cash in payment of accounts receivable.
4. In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible.

2016

5. Sold $1,502,800 of merchandise (that had cost $1,260,400) on credit, terms n/30.
6. Wrote off $32,500 of uncollectible accounts receivable.
7. Received $1,267,700 cash in payment of accounts receivable.
8. In adjusting the accounts on December 31, the company estimated that 2.20% of accounts receivable will be uncollectible.

Required:

Prepare journal entries to record Liang’s 2015 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest dollar amount.)