In: Accounting
The following information was taken from the accounting records of CJTR Company as of December 31, 2020: Accounts Payable .......... ? Accounts Receivable ....... $43,000 Building .................. $68,000 Cash ...................... $17,000 Common Stock .............. $62,000 Cost of Goods Sold ........ $41,000 Dividends ................. ? Equipment ................. $79,000 Interest Revenue .......... $46,000 Inventory ................. $63,000 Land ...................... $82,000 Notes Payable ............. $65,000 Rent Expense .............. $17,000 Retained Earnings ......... ? Salaries Expense .......... $52,000 Salaries Payable .......... $29,000 Sales Revenue ............. $94,000 Supplies .................. $28,000 Trademark ................. $18,000Additional information: 1) At January 1, 2020, CJTR Company reported total assets of $223,000; total liabilities of $121,000; and common stock of $40,000. 2) 20% of CJTR’s 2020 net income was paid to stockholders as dividends. Calculate the balance in the accounts payable account at December 31, 2020.
In: Accounting
The following information was taken from the accounting
records of CJTR Company as of December 31, 2020:
Accounts Payable .......... ?
Accounts Receivable ....... $44,000
Building .................. $68,000
Cash ...................... $17,000
Common Stock .............. $56,000
Cost of Goods Sold ........ $41,000
Dividends ................. ?
Equipment ................. $79,000
Interest Revenue .......... $40,000
Inventory ................. $63,000
Land ...................... $82,000
Notes Payable ............. $67,000
Rent Expense .............. $23,000
Retained Earnings ......... ?
Salaries Expense .......... $52,000
Salaries Payable .......... $34,000
Sales Revenue ............. $94,000
Supplies .................. $23,000
Trademark ................. $10,000
Additional information:
1) At January 1, 2020, CJTR Company reported total
assets of $223,000; total liabilities of $118,000;
and common stock of $40,000.
2) 20% of CJTR’s 2020 net income was paid to stockholders
as dividends.
Calculate the balance in the accounts payable account at
December 31, 2020.In: Accounting
Prepare a lease schedule and journal entries for the leased motor vehicle. Useful life = 8 years, no residual value.
18 Feb 2020, entered a lease agreement $42,000
Lease term 5 years, the number of monthly lease payments is 60 months (134 days from 18 Feb 2020 to 30 June 2020), the year 2020 = 366 days
The first lease payment of $660 is made in advance, hence no interest on the first payment.
Thereafter, 59 monthly lease payments are due on the 18th day of each. The final payment is due on 18 Jan 2025.
In the final payment, the company also has to make the guaranteed lease residual payment of $10,000, the company intends to pay out the guaranteed lease residual in 5 years time and take full legal possession.
In: Accounting
A company has the following results for the year ending December 31, 2020
| Sales Revenue | $4,995,000 |
| Cost of Goods Sold | $1,785,000 |
| Salaries and Wages Expense | $602,000 |
| Sales Commissions | $575,000 |
| Sales Discounts | $490,000 |
| Other Administrative Expenses | $307,000 |
| Depreciation of Equipment | $189,000 |
| Rent Revenue | $120,000 |
| Advertising Expense | $85,000 |
| Interest Expense | $55,000 |
| Dividend Revenue | $30,000 |
| Loss of Sale of Investments | $7,000 |
On September 1, 2020, the company decided to eliminate a division. During 2020, losses relating to the eliminated division total $253,000. The above results in the table do not include this amount.
The company's income tax rate is 40%. All given amounts are pre-tax figures.
What is the company's net income or loss from 2020?
In: Accounting
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 9%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $109 to purchase these supplies.
For years, Worley believed that the 9% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:
|
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 9%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $109 to purchase these supplies. For years, Worley believed that the 9% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:
Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $36,000 to buy from manufacturers):
Questions 1. Compute the total revenue that Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to University and Memorial. 4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $36,000 cost of goods sold that Worley incurred serving each hospital.) |
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In: Accounting
Accounting Changes-Depreciation
Described below are two independent and unrelated situations
involving accounting
changes. Each change occurs during 2016 before any adjusting
entries or closing entries
were prepared.
a. On December 30, 2012, Rival Industries acquired its office
building at a cost of
$1,000,000. It was depreciated on a straight-line basis assuming a
useful life of 40
years and no salvage value. However, plans were finalized in 2016
to relocate the
company headquarters at the end of 2020. The vacated office
building will have a
salvage value at that time of $700,000.
b. At the beginning of 2013, the Hoffman Group purchased office
equipment at a cost of
$330,000. 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,
2016, the company changed to the straight-line method.
Instructions:
a. Briefly describe the way company should report this accounting
change in the
financial statements.
b. Prepare any 2016 journal entry related to the change.
In: Accounting
Business Strategic Management:
Make a Leadership Handbook of Apple Inc. and Apple's CEO Company 'Five Strategy Slides'
In: Operations Management
Andy’s Co. is a manufacturing firm of a computer hardware device. Its sales forecasts for the year 2020 is as follows:
|
Quarter |
Sales in units |
Price |
Revenue |
|
Q1, 2020 |
500 |
$ 400 |
$ 200,000 |
|
Q2, 2020 |
1000 |
400 |
400,000 |
|
Q3, 2020 |
1000 |
400 |
400,000 |
|
Q4, 2020 |
1000 |
400 |
400,000 |
|
Q1, 2021 |
2000 |
400 |
800,000 |
|
Q2, 2021 |
1500 |
400 |
600,000 |
|
Q3, 2021 |
1000 |
$ 400 |
$ 400,000 |
The company will start its business this year with $30,000 of cash balance. As of Q4 of the fiscal year 2019, it does not have any material, work in progress, or finished goods inventories. The company currently has no debt and entirely owned by shareholders. The balance sheet of Andy’s Co. as of the end of the year 2019 is as follows:
|
Cash |
30,000 |
Equity |
30,000 |
Direct material costs per unit are $150. Each unit requires three direct labor hours to be completed. The hourly wage is $40. For the year 2020, the company expects the variable overhead to be $136,000. The company allocates variable overhead by direct labor hours. Fixed overhead is expected to be $204,000, including the depreciation of the equipment ($47,500). The company will evenly allocate the fixed overhead for each quarter.
At the beginning of the year 2020, the company will invest in $95,000 for the equipment.
The company supplies products with no material selling and administrative expenses. Their products are immediately picked up by other manufacturers in the complex for cash. Due to the highly efficient just-in-time inventory management system, the company does not hold materials inventories. All materials are purchased just enough to be used in production each quarter. The company also does not hold work in progress inventories. However, they keep 10% of next quarter’s sales as ending inventories of finished goods.
The company also engages in flexible cash management. They require a minimum balance of zero. Whenever they run short of cash, they can borrow from a partnered venture capital at the quarterly interest rate of 2%. They obtain the short-term loan at the beginning of the quarter, and they repay both principal and interest at the end of the quarter if they have enough cash.
The company will incur 20% of taxable income (operating income less interest expenses) as tax expenses but will pay the income taxes in the year 2021.
5) Complete the overhead budget including the cash disbursement for Andy’s Co. for the fiscal year 2020
6) Complete the cost of goods manufactured budget for Andy’s Co. for the fiscal year 2020
7) Complete the cost of goods sold budget for Andy’s Co. for the fiscal year 2020
8) Complete the cash budget for Andy’s Co. for the fiscal year 2020
9) Complete the income statement for Andy’s Co. for the fiscal year 2020
10) Complete the balance sheet for Andy’s Co. for the fiscal year 2020
11) An alternative plan for operation requires more investment in the equipment. If the company can invest $210,000 instead of $95,000 in the equipment at the beginning of the year 2020, the company can reduce direct labor hours required for each unit to 2 hours. The depreciation of the equipment will be $105,000 for the year 2020. Calculate the impacts of the additional investment on net income and operating cash flows for the year 2020. You can present an alternative income statement, cash budget, and balance sheet.
12) The executives of Andy’s Co. are debating over whether to invest $95,000 or $210,000. The market analysts suggest that the demand for the products will be at a similar level over the next few years. Based on the sales forecasts of the market analysts, provide advice to the executives. Support your advice quantitatively.
In: Accounting
In: Operations Management