Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position):
Cash $ 3,700
Accounts receivable 5,900
Supplies inventory 29,300
Land 168,500
Buildings 116,500
Accumulated depreciation, buildings 37,500
Equipment 58,500
Accumulated depreciation, equipment 18,000
Accounts payable 25,200
Income tax payable 16,600
Interest payable 4,200
Wages payable (due in 2020) 15,700
9% Notes payable ($10,000 due June 30, 2021,
balance due June 30, 2022) 61,500
Common shares 151,500
Retained earnings, Dec. 31, 2019 52,200
Transactions during 2020:
1.The company provided sales services to customers, on credit, for $ 210,300. In addition, the company produced cash sales to customers of $ 62,300.
2.Accounts receivable from customers of $ 15,600 remains to be collected at December 31, 2020.
3.Inventory of $ 62,900 was purchased on credit and debited to the supplies inventory account.
4.Minor parts were purchased with cash for $ 7,400 and debited to the supplies inventory account.
5.Wages payable at the beginning of 2020 were paid early in 2020. In addition, wages were earned by employees and paid during 2020 in the amount of $ 112,000.
6.Income tax payable at the beginning of 2020 was paid early in 2020.
7.Payments of $ 73,000 were made to creditors for supplies previously purchased on credit.
8.One year’s interest at 9% was paid on the notes payable at July 1, 2020.
9. During 2020, Don Tallint, the principal shareholder, purchased a new car for his wife
Debbie. The new car cost $ 45,000 and was paid for with cash from personal sources.
10.Property taxes were paid on the land and buildings in the amount of $ 17,000 with cash.
11.Dividends were declared and paid in cash in the amount of $ 7,200.
The information available for year-end adjusting entries:
12.•Supplies inventory was counted on December 31, 2020, and it was determined the supplies inventory still on hand at yearend was $ 31,900.
13. •Annual depreciation on the buildings is $ 6,000.
14•Annual deprecation on the equipment is $ 5,500
15•Additional wages of $4,000 were earned but are unpaid and unrecorded at December 31, 2020.
16•Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at December 31, 2020.
17•Income taxes of $ 16,500 were unpaid and unrecorded at December 31, 2020.
Question: Prepare a classified statement of financial position for Marmidan Mold Shop Inc. as at December 31, 2020 .
In: Accounting
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position):
Cash $ 3,700
Accounts receivable 5,900
Supplies inventory 29,300
Land 168,500
Buildings 116,500
Accumulated depreciation, buildings 37,500
Equipment 58,500
Accumulated depreciation, equipment 18,000
Accounts payable 25,200
Income tax payable 16,600
Interest payable 4,200
Wages payable (due in 2020) 15,700
9% Notes payable ($10,000 due June 30, 2021,
balance due June 30, 2022) 61,500
Common shares 151,500
Retained earnings, Dec. 31, 2019 52,200
Transactions during 2020:
1.The company provided sales services to customers, on credit, for $ 210,300. In addition, the company produced cash sales to customers of $ 62,300.
2.Accounts receivable from customers of $ 15,600 remains to be collected at December 31, 2020.
3.Inventory of $ 62,900 was purchased on credit and debited to the supplies inventory account.
4.Minor parts were purchased with cash for $ 7,400 and debited to the supplies inventory account.
5.Wages payable at the beginning of 2020 were paid early in 2020. In addition, wages were earned by employees and paid during 2020 in the amount of $ 112,000.
6.Income tax payable at the beginning of 2020 was paid early in 2020.
7.Payments of $ 73,000 were made to creditors for supplies previously purchased on credit.
8.One year’s interest at 9% was paid on the notes payable at July 1, 2020.
9. During 2020, Don Tallint, the principal shareholder, purchased a new car for his wife
Debbie. The new car cost $ 45,000 and was paid for with cash from personal sources.
10.Property taxes were paid on the land and buildings in the amount of $ 17,000 with cash.
11.Dividends were declared and paid in cash in the amount of $ 7,200.
The information available for year-end adjusting entries:
12.•Supplies inventory was counted on December 31, 2020, and it was determined the supplies inventory still on hand at yearend was $ 31,900.
13. •Annual depreciation on the buildings is $ 6,000.
14•Annual deprecation on the equipment is $ 5,500
15•Additional wages of $4,000 were earned but are unpaid and unrecorded at December 31, 2020.
16•Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at December 31, 2020.
17•Income taxes of $ 16,500 were unpaid and unrecorded at December 31, 2020.
Question: Prepare a statement of retained earnings for Marmidan Mold Shop Inc. for the year ended December 31, 2020.
In: Accounting
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position):
Cash $ 3,700
Accounts receivable 5,900
Supplies inventory 29,300
Land 168,500
Buildings 116,500
Accumulated depreciation, buildings 37,500
Equipment 58,500
Accumulated depreciation, equipment 18,000
Accounts payable 25,200
Income tax payable 16,600
Interest payable 4,200
Wages payable (due in 2020) 15,700
9% Notes payable ($10,000 due June 30, 2021,
balance due June 30, 2022) 61,500
Common shares 151,500
Retained earnings, Dec. 31, 2019 52,200
Transactions during 2020:
1.The company provided sales services to customers, on credit, for $ 210,300. In addition, the company produced cash sales to customers of $ 62,300.
2.Accounts receivable from customers of $ 15,600 remains to be collected at December 31, 2020.
3.Inventory of $ 62,900 was purchased on credit and debited to the supplies inventory account.
4.Minor parts were purchased with cash for $ 7,400 and debited to the supplies inventory account.
5.Wages payable at the beginning of 2020 were paid early in 2020. In addition, wages were earned by employees and paid during 2020 in the amount of $ 112,000.
6.Income tax payable at the beginning of 2020 was paid early in 2020.
7.Payments of $ 73,000 were made to creditors for supplies previously purchased on credit.
8.One year’s interest at 9% was paid on the notes payable at July 1, 2020.
9. During 2020, Don Tallint, the principal shareholder, purchased a new car for his wife
Debbie. The new car cost $ 45,000 and was paid for with cash from personal sources.
10.Property taxes were paid on the land and buildings in the amount of $ 17,000 with cash.
11.Dividends were declared and paid in cash in the amount of $ 7,200.
The information available for year-end adjusting entries:
12.•Supplies inventory was counted on December 31, 2020, and it was determined the supplies inventory still on hand at yearend was $ 31,900.
13. •Annual depreciation on the buildings is $ 6,000.
14•Annual deprecation on the equipment is $ 5,500
15•Additional wages of $4,000 were earned but are unpaid and unrecorded at December 31, 2020.
16•Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at December 31, 2020.
17•Income taxes of $ 16,500 were unpaid and unrecorded at December 31, 2020.
Question: Prepare a single step income statement for Marmidan Mold Shop Inc. for the year ended December 31, 2020.
In: Accounting
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position):
Cash $ 3,700
Accounts receivable 5,900
Supplies inventory 29,300
Land 168,500
Buildings 116,500
Accumulated depreciation, buildings 37,500
Equipment 58,500
Accumulated depreciation, equipment 18,000
Accounts payable 25,200
Income tax payable 16,600
Interest payable 4,200
Wages payable (due in 2020) 15,700
9% Notes payable ($10,000 due June 30, 2021,
balance due June 30, 2022) 61,500
Common shares 151,500
Retained earnings, Dec. 31, 2019 52,200
Transactions during 2020:
1.The company provided sales services to customers, on credit, for $ 210,300. In addition, the company produced cash sales to customers of $ 62,300.
2.Accounts receivable from customers of $ 15,600 remain to be collected at December 31, 2020.
3.Inventory of $ 62,900 was purchased on credit and debited to the supplies inventory account.
4.Minor parts were purchased with cash for $ 7,400 and debited to the supplies inventory account.
5.Wages payable at the beginning of 2020 were paid early in 2020. In addition, wages were earned by employees and paid during 2020 in the amount of $ 112,000.
6.Income tax payable at the beginning of 2020 was paid early in 2020.
7.Payments of $ 73,000 were made to creditors for supplies previously purchased on credit.
8.One year’s interest at 9% was paid on the notes payable at July 1, 2020.
9. During 2020, Don Tallint, the principal shareholder, purchased a new car for his wife
Debbie. The new car cost $ 45,000 and was paid for with cash from personal sources.
10.Property taxes were paid on the land and buildings in the amount of $ 17,000 with cash.
11.Dividends were declared and paid in cash in the amount of $ 7,200.
Information available for year end adjusting entries:
12.•Supplies inventory was counted on December 31, 2020 and it was determined the supplies inventory still on hand at yearend was $ 31,900.
13. •Annual depreciation on the buildings is $ 6,000.
14•Annual deprecation on the equipment is $ 5,500
15•Additional wages of $4,000 were earned but are unpaid and unrecorded at December 31, 2020.
16•Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at December 31, 2020.
17•Income taxes of $ 16,500 were unpaid and unrecorded at December 31, 2020.
Required:
Prepare a classified statement of financial position for Marmidan Mold Shop Inc. as at December 31, 2020. (Please record on the electronic worksheet)
In: Accounting
You are the Director of Global Compliance for a U.S. company that just created a revolutionary new portable personal computer (PPC) that is half the size of a laptop, performs the same functions as existing laptop computers but costs only half as much to manufacture. Several patents were filed and approved protect the unique design of this computer. Your CEO asked you to formulate a recommendation for how to expand into South America.Evaluate the pros and cons if you were to export from the United States
In: Operations Management
Sunland Corp. has 149,080 shares of common stock outstanding. In
2020, the company reports income from continuing operations before
income tax of $1,217,100. Additional transactions not considered in
the $1,217,100 are as follows.
| 1. | In 2020, Sunland Corp. sold equipment for $35,600. The machine had originally cost $80,500 and had accumulated depreciation of $34,300. The gain or loss is considered non-recurring. | |
| 2. | The company discontinued operations of one of its subsidiaries during the current year at a loss of $197,400 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $93,300 before taxes; the loss from disposal of the subsidiary was $104,100 before taxes. | |
| 3. | An internal audit discovered that amortization of intangible assets was understated by $35,300 (net of tax) in a prior period. The amount was charged against retained earnings. | |
| 4. | The company recorded a non-recurring gain of $128,000 on the condemnation of some of its property (included in the $1,217,100). |
Analyze the above information and prepare an income statement for
the year 2020, starting with income from continuing operations
before income tax. Compute earnings per share as it should be shown
on the face of the income statement. (Assume a total effective tax
rate of 19% on all items, unless otherwise indicated.)
(Round earnings per share to 2 decimal places, e.g.
1.47.)
In: Accounting
The global impact of COVID-19 is felt all over the world. This pandemic continues to impact us at the macro and micro level of economics. Since March of 2020 we've seen a dramatic decline of GDP in numerous countries. I would like for you to explain why our economy here in the USA has contracted. You should draw from the formula of GDP which includes consumption, investment, government spending, as well as net exports. Describe how at least two factors of GDP have been impacted and provide evidence to support your claim. Please use at least 250 characters.
In: Economics
Brief Exercise 18-11 b (Essay)
The following data are taken from the financial statements of
Colby Company.
|
2020 |
2018 |
|||
| Accounts receivable (net), end of year | $550,000 | $540,000 | ||
| Net sales on account | 4,300,000 | 4,000,000 | ||
| Terms for all sales are 1/10, n/45 |
| 2020 | 2019 | |||||
| Accounts Receivable turnover | 7.9 | times | 7.5 | times | ||
| Average collection period | 46.2 | days | 48.7 | days | ||
(b)
What conclusions about the management of accounts receivable can be
drawn from the accounts receivable turnover and the average
collections period.
In: Accounting
University Backpacks (Part 1)
You are the owner-manager of University Backpacks, a company that
you started this year (20X1). The company sells backpacks to
students attending several local colleges in the area. Your company
sells two types of backpacks: those for transporting laptop
computers and smaller ones not intended for laptop storage. The
latter type comes in two styles, with dividers and zippered pockets
and without. All back-packs carry the unique logos of the colleges
in the community. For this right, University Backpacks pays a
licensing fee on a percentage-of-sales basis. You order only enough
inventory to meet immediate sales, so there is no inventory at year
end. Few alterations or adjustments are made to the backpacks
received from your wholesaler. However, in addition to affixing the
local college emblems, customers sometimes request special
stitching or the addition of extra patches to meet their own unique
tastes. During its first year of business, University Backpacks
sold 3,800 backpacks (almost evenly split between laptop and
non-laptop styles) and reported the following operating
results:
University Backpacks
Actual Income Statement
For the Year Ended December 31, 20X1
Sales $152,000
Cost of Sales 113,256
Gross Profit $38,744
Expenses:
Advertising 5,000
Licensing fee 6,200
Depreciation 2,500
Insurance 2,700
Miscellaneous 1,688
Payroll Taxes (on owner’s salary) 2,000
Owner’s Salary 20,000
Storage 1,000
Income Taxes (Refund) (2,503)
Telephone 2,500
Travel and Entertainment 3,500
Total Expenses 44,585
Net Loss $(5,841)
1. Review the above income statement (prepared in accordance
with generally accepted accounting principles) and determine which
costs are fixed and which are variable.
2. Using the information provided above and in the income
statement, answer the following questions: a. What is the
contribution margin per unit? b. What is the breakeven point in
units? c. What is the contribution margin ratio? d. What is the
breakeven point in sales dollars? e. How many units must be sold to
produce a target profit of $25,000? f. How many dollars of sales
must be generated to produce a target profit of $25,000? g. What is
the margin of safety with a target profit of $25,000?
In: Accounting
Mr. Raju just appointed as an account manager at NH Sdn Bhd, a retail company selling merchandises for local market. Mr. Raju is being responsible to prepare and monitor the budget and expenses of the company business. Currently the company is preparing the quarterly budget as of 31 December 2020 and he has been asked by Ms. Sally, the owner of the company, to prepare a master budget. The sales forecast for the merchandises are provided as follows:
Unit sales | |
August 2020 | 1,500 actual |
September 2020 | 1,600 actual |
October 2020 | 1,700 budgeted |
November 2020 | 2,300 budgeted |
December 2020 | 2,400 budgeted |
January 2021 | 1,300 budgeted |
The average selling price and the average purchase price per unit are RM250 and RM120 respectively. As for desired ending inventory is expected 30% of next month’s unit sales. Collections from customers will be 20% in month of sale, 50% in month after sale and 30% two months after sale.
As for projected cash payments, inventory purchases will be paid in the month following acquisition. Meanwhile, variable cash expenses are equal to 35% of each month’s sales and paid in the month of sale. Fixed cash expenses are RM20,000 per month and are paid in the month incurred. Depreciation on equipment is RM2,000 per month. Desired ending cash balance per month will be RM20,000.
NH Sdn Bhd also has provided the following information at 30 September 2020
Balance Sheet as at 30 September 2020
RM | |
Cash | 30,000 |
Account Receivable | 245,000 |
Merchandise inventory(650 unit) | 78,000 |
Fixed Assets (net) | 110,000 |
Total assets | 463,800 |
Account Payable(Merchandise) | 148,800 |
Owner’s Equity | 315,000 |
Total liability and equity | 463,800 |
Required:
Based on the information given, you are required to prepare the following budget** for the upcoming quarter ending 31 December 2020.
In: Accounting