Kingbird Company, a manufacturer of small tools, provided the
following information from its accounting records for the year
ended December 31, 2020.
| Inventory at December 31, 2020 (based on physical count of goods in Kingbird’s plant, at cost, on December 31, 2020) | $1,419,220 | |
| Accounts payable at December 31, 2020 | 1,295,400 | |
| Net sales (sales less sales returns) | 8,926,300 |
Additional information is as follows.
| 1. | Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31, 2020. These tools had a cost of $32,100 and were billed at $41,100. The shipment was on Kingbird’s loading dock waiting to be picked up by the common carrier. | |
| 2. | Goods were in transit from a vendor to Kingbird on December 31, 2020. The invoice cost was $77,100, and the goods were shipped f.o.b. shipping point on December 29, 2020. | |
| 3. | Work in process inventory costing $31,100 was sent to an outside processor for plating on December 30, 2020. | |
| 4. | Tools returned by customers and held pending inspection in the returned goods area on December 31, 2020, were not included in the physical count. On January 8, 2021, the tools costing $33,100 were inspected and returned to inventory. Credit memos totaling $48,100 were issued to the customers on the same date. | |
| 5. | Tools shipped to a customer f.o.b. destination on December 26, 2020, were in transit at December 31, 2020, and had a cost of $27,100. Upon notification of receipt by the customer on January 2, 2021, Kingbird issued a sales invoice for $43,100. | |
| 6. | Goods, with an invoice cost of $28,100, received from a vendor at 5:00 p.m. on December 31, 2020, were recorded on a receiving report dated January 2, 2021. The goods were not included in the physical count, but the invoice was included in accounts payable at December 31, 2020. | |
| 7. | Goods received from a vendor on December 26, 2020, were included in the physical count. However, the related $57,100 vendor invoice was not included in accounts payable at December 31, 2020, because the accounts payable copy of the receiving report was lost. | |
| 8. | On January 3, 2021, a monthly freight bill in the amount of $9,100 was received. The bill specifically related to merchandise purchased in December 2020, one-half of which was still in the inventory at December 31, 2020. The freight charges were not included in either the inventory or in accounts payable at December 31, 2020. |
Prepare a schedule of adjustments as of December 31, 2020, to the
initial amounts per Kingbird’s accounting records. (If
an amount reduces the account balance then enter either with a
negative sign preceding the number, e.g. -15,000 or in parenthesis,
e.g. (15,000).)
|
KINGBIRD COMPANY |
||||||
|
Inventory |
Accounts Payable |
Net Sales |
||||
| Initial amounts | $1,419,220 | $1,295,400 | $8,926,300 | |||
| Adjustments: | ||||||
| 1. | ||||||
| 2. | ||||||
| 3. | ||||||
| 4. | ||||||
| 5. | ||||||
| 6. | ||||||
| 7. | ||||||
| 8. | ||||||
| Total adjustments | ||||||
| Adjusted amounts | $ | $ | $ | |||
In: Accounting
Sunland Company, a manufacturer of small tools, provided the
following information from its accounting records for the year
ended December 31, 2020.
| Inventory at December 31, 2020 (based on physical count of goods in Sunland’s plant, at cost, on December 31, 2020) | $1,467,950 | |
| Accounts payable at December 31, 2020 | 1,182,000 | |
| Net sales (sales less sales returns) | 7,990,400 |
Additional information is as follows.
| 1. | Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31, 2020. These tools had a cost of $31,700 and were billed at $40,700. The shipment was on Sunland’s loading dock waiting to be picked up by the common carrier. | |
| 2. | Goods were in transit from a vendor to Sunland on December 31, 2020. The invoice cost was $76,700, and the goods were shipped f.o.b. shipping point on December 29, 2020. | |
| 3. | Work in process inventory costing $30,700 was sent to an outside processor for plating on December 30, 2020. | |
| 4. | Tools returned by customers and held pending inspection in the returned goods area on December 31, 2020, were not included in the physical count. On January 8, 2021, the tools costing $32,700 were inspected and returned to inventory. Credit memos totaling $47,700 were issued to the customers on the same date. | |
| 5. | Tools shipped to a customer f.o.b. destination on December 26, 2020, were in transit at December 31, 2020, and had a cost of $26,700. Upon notification of receipt by the customer on January 2, 2021, Sunland issued a sales invoice for $42,700. | |
| 6. | Goods, with an invoice cost of $27,700, received from a vendor at 5:00 p.m. on December 31, 2020, were recorded on a receiving report dated January 2, 2021. The goods were not included in the physical count, but the invoice was included in accounts payable at December 31, 2020. | |
| 7. | Goods received from a vendor on December 26, 2020, were included in the physical count. However, the related $56,700 vendor invoice was not included in accounts payable at December 31, 2020, because the accounts payable copy of the receiving report was lost. | |
| 8. | On January 3, 2021, a monthly freight bill in the amount of $8,700 was received. The bill specifically related to merchandise purchased in December 2020, one-half of which was still in the inventory at December 31, 2020. The freight charges were not included in either the inventory or in accounts payable at December 31, 2020. |
Prepare a schedule of adjustments as of December 31, 2020, to the
initial amounts per Sunland’s accounting records. (If
an amount reduces the account balance then enter either with a
negative sign preceding the number, e.g. -15,000 or in parenthesis,
e.g. (15,000).)
|
SUNLAND COMPANY |
||||||
|
Inventory |
Accounts Payable |
Net Sales |
||||
| Initial amounts | $1,467,950 | $1,182,000 | $7,990,400 | |||
| Adjustments: | ||||||
| 1. | ||||||
| 2. | ||||||
| 3. | ||||||
| 4. | ||||||
| 5. | ||||||
| 6. | ||||||
| 7. | ||||||
| 8. | ||||||
| Total adjustments | ||||||
| Adjusted amounts | $ | $ | $ | |||
In: Accounting
1. Angelo uses the equity method to account for its investment in Fischer on January 1. On the date of acquisition, Fischer’s land and buildings were undervalued on its balance sheet. During the year following the acquisition, how do these excesses of fair values over book values affect Angelo's Equity Income from Fischer?
a. Building, Decrease; Land, No Effect
b. Building, Decrease; Land, Decrease
c. Building, Increase; Land, Increase
d. Building, Increase; Land, No Effect
2. On January 2, 2020, Campbell, Inc. purchased a 20% interest in Renner Corp. for $2,000,000 cash. During 2020, Renner's net income was $2,500,000 and it paid dividends of $750,000.
Equity Investment balance should Campbell report at December 31, 2020?
a. $2,500,000
b. $ 500,000
c. $2,350,000
d. $2,150,000
3. On December 31, 2020, Park Inc. paid $500,000 for all of the common stock of Smith Corp. On that date, Smith had assets and liabilities with book values of $400,000 and $100,000; and fair values of $450,000 and $125,000, respectively.
What amount of goodwill will be reported on the December 31, 2020 balance sheet?
a. $ 50,000
b. $100,000
c. $200,000
d. $175,000
4. Francis, Inc. acquired 40% of Park's voting stock on January 1, 2020 for $420,000. During 2020, Park earned $120,000 and paid dividends of $60,000. During 2021, Park earned $160,000 and paid dividends of $50,000 on April 1 and $40,000 on December 1. On July 1, 2021, Francis sold half of its stock in Park for $275,000 cash.
The Equity Investment balance at December 31, 2020 is:
a. $420,000
b. $444,000
c. $408,000
d. $492,000
5. On January 1, 2020, Cracker Co. purchased 40% of Dallas Corp.'s common stock at book value of net assets. The balance in Cracker's Equity Investment account was $820,000 at December 31, 2020. Dallas reported net income of $500,000 for the year ended December 31, 2020, and paid dividends totaling $150,000 during 2020.
How much did Cracker pay for its 40% interest in Dallas?
a. $680,000
b. $500,000
c. $560,000
d. $760,000
In: Accounting
Property Plant and Equipment is an important component of manufacturers. Pick a manufacturing company from any source and tell us how they account for their PP&E in terms of obsolescence, depreciation and maintaining it - also if they develop their own equipment. Also, tell us what else you may have learned by reading the notes or other material.
In: Accounting
Property Plant and Equipment is an important component of manufacturers. Pick a manufacturing company from any source and tell us how they account for their PP&E in terms of obsolescence, depreciation and maintaining it - also if they develop their own equipment. Also, tell us what else you may have learned by reading the notes or other material.
In: Accounting
A US importer who owes and Belgian company 500,000 Euros payable in 30 days from today expects that the US Dollar will weaken during this period. What would you advise the importer to do? What would happen if the imported took your advice yet instead of the dollar weakening, the dollar actually strengthened?
In: Operations Management
A US importer who owes and Belgian company 500,000 Euros payable in 30 days from today expects that the US Dollar will weaken during this period. What would you advise the importer to do? What would happen if the imported took your advice yet instead of the dollar weakening, the dollar actually strengthened??
In: Economics
Property Plant and Equipment is an important component of manufacturers. Pick a manufacturing company from any source and tell us how they account for their PP&E in terms of obsolescence, depreciation and maintaining it - also if they develop their own equipment. Also, tell us what else you may have learned by reading the notes or other material.
In: Accounting
subject human resources management
What is the role of Immediate Supervisor during an appraisal interview? Explain with an example
(at least one page)
please I needed unique and not copy and paste from internet
In: Operations Management
Business Management Case #1 – Volkswagen Scandal
Facts:
Volkswagen, in 2015, was accused of rigging software in its car to defeat emissions tests. This software could detect when testing was occurring and blocked emissions.
EPA investigation confirmed the car’s software gave lower results than EPA allowable maximum – when, in fact, the emissions were 40 times higher than allowable emissions.
After the scandal broke the CEO resigned and 9 top executives were fired.
This software affected 11 million vehicles affected, ½ million in US.
Volkswagen recalled the cars at a cost of $18 billion and paid customers affected another $14 billion.
The company fell to #2 from its previous # 1 slot in Europe.
Questions:
Identify the stakeholders and how they are affected.
Review the five principles of ethics and analyze the case from each of these ethical perspectives (egoism, utilitarianism, rights, duties, virtues) defining what actions you as head of the board of VW would do if you acted according to each principle and why.
Example:
Egoism principle says you will act in your own best interest for the long term—what would you do?
Utilitarianism says you what is best for the most people—what would you do? Etc, etc.
In: Operations Management