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In: Accounting
Sweet Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $10,000,000 on January 1, 2020. Sweet expected to complete the building by December 31, 2020. Sweet has the following debt obligations outstanding during the construction period.
| Construction loan-10% interest, payable semiannually, issued December 31, 2019 | $4,000,000 | |
| Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 2021 | 2,800,000 | |
| Long-term loan-9% interest, payable on January 1 of each year. Principal payable on January 1, 2024 | 2,000,000 |
A. Assume that Sweet completed the office and warehouse building on December 31, 2020, as planned at a total cost of $10,400,000, and the weighted-average amount of accumulated expenditures was $7,200,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.)
| Avoidable Interest |
$ |
B. Compute the depreciation expense for the year ended December 31, 2021. Sweet elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $600,000. (Round answer to 0 decimal places, e.g. 5,275.)
| Depreciation Expense |
$ |
In: Accounting
Cheyenne Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $15,000,000 on January 1, 2020. Cheyenne expected to complete the building by December 31, 2020. Cheyenne has the following debt obligations outstanding during the construction period.
| Construction loan-12% interest, payable semiannually, issued December 31, 2019 | $6,000,000 | |
| Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 | 4,200,000 | |
| Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 | 3,000,000 |
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.
Assume that Cheyenne completed the office and warehouse building on December 31, 2020, as planned at a total cost of $15,600,000, and the weighted-average amount of accumulated expenditures was $10,800,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.)
| Avoidable Interest |
$ |
Compute the depreciation expense for the year ended December 31,
2021. Cheyenne elected to depreciate the building on a
straight-line basis and determined that the asset has a useful life
of 30 years and a salvage value of $900,000. (Round
answer to 0 decimal places, e.g. 5,275.)
| Depreciation Expense |
$ |
In: Accounting
National Highways Authority (NHA) is considering a public-private partnership with Friends construction as main contractor using a DBOMF contract for a new 50-mile motorway on the outskirts of Baluchistan Province. The design includes seven 10-mile-long commercial/retail corridors on both sides of the road. Motorway construction is expected to require 6 years at an average cost of $4 million per mile. The discount rate is 11% per year, and the study period is 30 years. Initial investment is $200 million distributed over 5 years; $50 million now and in year 6 and remaining amount equally in rest of the years. Annual operating cost is $10 million per year, plus an additional $5 million every six years. Annual revenues Include tolls and retail/commercial growth; start at $5 million in first year, increasing by a constant $2 million annually through year 10, and then increasing by a constant $3 million per year through year 20 and remaining constant thereafter. Disbenefits include loss of income to people in surrounding areas; start at $15 million in year 1, decrease by $2 million per year through year 21, and remain at zero thereafter.
Required: Evaluate the economics of the proposal using (a) the modified B/C analysis from the NHA’s perspective and (b) the profitability index from the Friends construction viewpoint in which disbenefits are included and not included.
In: Advanced Math
Cheyenne Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,971,900 on January 1, 2017. Cheyenne expected to complete the building by December 31, 2017. Cheyenne has the following debt obligations outstanding during the construction period.
| Construction loan-10% interest, payable semiannually, issued December 31, 2016 | $1,999,900 | |
| Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 2018 | 1,611,800 | |
| Long-term loan-9% interest, payable on January 1 of each year. Principal payable on January 1, 2021 | 1,006,500 |
Assume that Cheyenne completed the office and warehouse building
on December 31, 2017, as planned at a total cost of $5,212,300, and
the weighted-average amount of accumulated expenditures was
$3,779,200. Compute the avoidable interest on this project.
(Use interest rates rounded to 2 decimal places, e.g.
7.58% for computational purposes and round final answers to 0
decimal places, e.g. 5,275.)
Avoidable Interest:
Compute the depreciation expense for the year ended December 31,
2018. Cheyenne elected to depreciate the building on a
straight-line basis and determined that the asset has a useful life
of 30 years and a salvage value of $302,700. (Round
answer to 0 decimal places, e.g. 5,275.)
| Depreciation Expense |
Part 1
In: Accounting
Bramble Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $7,500,000 on January 1, 2020. Bramble expected to complete the building by December 31, 2020. Bramble has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $3,000,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 2,100,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,500,000
Assume that Bramble completed the office and warehouse building
on December 31, 2020, as planned at a total cost of $7,800,000, and
the weighted-average amount of accumulated expenditures was
$5,400,000. Compute the avoidable interest on this project.
(Use interest rates rounded to 2 decimal places, e.g.
7.58% for computational purposes and round final answers to 0
decimal places, e.g. 5,275.)
| Avoidable Interest |
$ |
Compute the depreciation expense for the year ended December 31,
2021. Bramble elected to depreciate the building on a straight-line
basis and determined that the asset has a useful life of 30 years
and a salvage value of $450,000. (Round answer to 0
decimal places, e.g. 5,275.)
| Depreciation Expense |
In: Accounting
LarkspurFurniture Company started construction of a combination
office and warehouse building for its own use at an estimated cost
of $6,000,000 on January 1, 2020. Larkspur expected to complete the
building by December 31, 2020. Larkspur has the following debt
obligations outstanding during the construction period.
| Construction loan-14% interest, payable semiannually, issued December 31, 2019 | $2,400,000 | |
| Short-term loan-12% interest, payable monthly, and principal payable at maturity on May 30, 2021 | 1,680,000 | |
| Long-term loan-13% interest, payable on January 1 of each year. Principal payable on January 1, 2024 | 1,200,000 |
A. Assume that Larkspur completed the office and warehouse
building on December 31, 2020, as planned at a total cost of
$6,240,000, and the weighted-average amount of accumulated
expenditures was $4,320,000. Compute the avoidable interest on this
project. (Use interest rates rounded to 2 decimal
places, e.g. 7.58% for computational purposes and round final
answers to 0 decimal places, e.g. 5,275.)
| Avoidable Interest |
$ |
B. Compute the depreciation expense for the year ended December
31, 2021. Larkspur elected to depreciate the building on a
straight-line basis and determined that the asset has a useful life
of 30 years and a salvage value of $360,000. (Round
answer to 0 decimal places, e.g. 5,275.)
| Depreciation Expense |
$ |
In: Accounting
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Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $250,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be $25 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow:
Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 125 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month. Required: 1. Calculate the balance in Work in Process as of June 30. $ 2. Calculate the balance in Finished Goods as of June 30. $ 3. Calculate the cost of goods sold for June. $ 4. Calculate the price charged for Job 39. Round your answer to the nearest cent. $ 5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods? - Select your answer -Finished Goods would increaseFinished Goods would decreaseFinished Goods would not changeItem 5 What would happen to the balance of Cost of Goods Sold?- Select your answer -Cost of Goods Sold would increaseCost of Goods Sold would decreaseCost of Goods Sold would not changeItem 6 |
In: Accounting
I have a question regarding the percentage-of-completion.
For example, A company wants to make a contract with B constructor. The estimated cost was $900,000, and the contractor wants to add a margin of 10% on its cost estimate.
On the day of the formed of the contract, the finalized cost was $1,000,000. The small storage room will be finished in 3 years, and each year $95,000, $120,000, $250,000 will be incurred for 3 years.
1. Please recognized the revenue over time with the percentage-of-completion method.
2. Does that margin is necessary for the calculation, and if not, when do I need to use it.
In: Accounting
The following summarized data were provided by the records of Mystery Incorporated for the year ended December 31:
| Administrative Expense | $ | 22,200 |
| Cost of Goods Sold | 181,000 | |
| Income Tax Expense | 20,800 | |
| Sales Returns and Allowances | 8,600 | |
| Selling Expense | 46,600 | |
| Sales of merchandise for cash | 320,000 | |
| Sales of merchandise on credit | 50,000 | |
1. Based on these data, prepare a multi-step income statement for internal reporting purposes
.2-a. What was the amount of gross profit?
2-c. Which of the following(s) is true? (Select all that apply.)
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3. Did the gross profit percentage in the current year improve, or decline, relative to the 48 percent gross profit percentage in the prior year?
There is _______ in the gross profit percentage when compared to
48% in the previous year.
In: Accounting