Allocating Payments and Receipts to Fixed Asset Accounts

The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk.

Required:

1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign.

2. Determine the amount debited to Land, Land Improvements, and Building.

3. Since land used as a plant site lose its ability to provide services, it depreciated. Land improvements lose their ability to provide services as time passes and are therefore .

4. What would be the effect on the income statement and balance sheet if the cost of paving the parking lot of $21,600 [payment (o)] was incorrectly classified as Land rather than Land Improvements? Assume Land Improvements are depreciated over a 10-year life using the double-declining-balance method.

a) Depreciation expense would be overstated, land improvements would be overstated and net income would be overstated.

b)Depreciation expense would be understated, land would be overstated, and net income would be overstated.

Having issues starting an assignment. Still learning so If you don't mind could you explain

public Theater()

Initialize the 2-D array “seats”, with 3 rows and 4 columns. To assign the price
for each seat, you need to open and read from the file “seatPrices.txt”. The file
contains 12 doubles representing the price for each row. All seats in a given
row are the same price, but different rows have different prices. You also need
to initialize “totalSeats” to 0.

public void displayChart()

This method is required to print out the seating chart with costs of the seats
with a tab between columns in the same row and a newline between rows. So
the initial seating chart would be printed:
12.5 12.5 12.5 12.5
10.0 10.0 10.0 10.0
8.0 8.0 8.0 8.0

----

import java.util.Scanner;
import java.io.*;

public class Assignment8
{   public static void main(String[] args)throws IOException
   {
       Theater t = new Theater();
       char command;
       Scanner keyboard = new Scanner(System.in);

      
      
      
       // print the menu
       printMenu();
       do
       {
           // ask a user to choose a command
           System.out.println("\nPlease enter a command or type ?");
           command = keyboard.next().toLowerCase().charAt(0);
           switch (command)
           {
               case 'a': // display remaining seats
                   System.out.println();
                   t.displayChart();
           }/*                   break;
/*               case 'b': // Print total from sales so far
                   System.out.println("\nTotal: " + t.getTotal());
                   break;
               case 'c': // sell ticket

                   if (t.soldOut())
                       System.out.println("\nSorry we are sold out.");
                   else
                   {
                       System.out.print("\nEnter the row you want: ");
                       int row = keyboard.nextInt();
                       System.out.print("Enter the column you want: ");
                       int col = keyboard.nextInt();
                       if (t.sellTicket(row, col))
                           System.out.println("\nEnjoy the show!");
                       else
                           System.out.println("\nThe seat is sold and/or is invalid seat!");
                   }
                   break;
               case 'd': // print number of seats sold
                   System.out.println("\nNumber of seats sold: " + t.numSold());
                   break;

               case '?': // display menu
                   printMenu();
                   break;
               case 'q':   // quit
                   break;
               default:
                   System.out.println("Invalid input!");

           }

*/       } while (command != 'q');

   } //end of the main method

   // this method prints out the menu to a user
   public static void printMenu()
   {
       System.out.print("\nCommand Options\n"
           + "-----------------------------------\n"
           + "a: print seating chart\n"
           + "b: display total sales\n"
           + "c: sell ticket\n"
           + "d: display number of seats sold\n"
           + "?: display the menu again\n"
           + "q: quit this program\n\n");
   } // end of the printMenu method

}
-----

package assignment8;
import java.io.BufferedReader;
import java.io.FileNotFoundException;
import java.io.FileReader;
import java.io.IOException;

public class Theater
{
//a two dimensional double array to hold the prices of the seats
//double to hold the total amount of sales generated from the theater.
   private double seats[][];
   double totalSales=0;
  
   String fileName="seatPrices.txt";
   String seatPrices="";
  
   static final int NUM_ROWS=3;
   static final int NUM_COLUMNS=4;
  
  
/*Initialize the 2-D array “seats”, with 3 rows and 4 columns
To assign the price for each seat, you need to open and read from the file “seatPrices.txt”. The file
contains 12 doubles representing the price for each row.
All seats in a given row are the same price, but different rows have different prices
*/
   public Theater()
   {
   Double seats[][]= new Double[NUM_ROWS][NUM_COLUMNS];
   int totalSeats=0;
   Double temp[][]=seats;
  
  
   try
{
// Instantiate a FileReader object to open the input file
// Note: "filename" should match the input file you made in Step 4
          
FileReader fr = new FileReader("seatPrices.txt");
//FileReader fr = new FileReader("/autograder/submission/" + fileName);
          
// BufferedReader is for efficient reading of characters
BufferedReader bfReader = new BufferedReader(fr);


// As we have determined the number of lines in our file, we will
// use constants to define the loop conditions

for (int r = 0; r {
for (int c= 0; c < NUM_COLUMNS; c++)
{
// Read a line from the file
// invoke .readLine() on the BufferedReader bfReader
// and save the returned value to the element at array position (i, j)
// -->
    seatPrices= bfReader.readLine();
    temp[r][c]=Double.valueOf(seatPrices);
      
   
   
}
seats=temp;

}
  
bfReader.close();

}
catch (FileNotFoundException e)
{
System.err.println("File not found");
}
catch (IOException e)
{
System.err.println("I/O error occurs");
}
        
   }

   public void displayChart()
   {   
  
   for (int r = 0; r {
for (int c= 0; c < NUM_COLUMNS; c++)
{
   System.out.print(seats[r][c]+ "\t");
}
System.out.println();
   }

   }
}

-------

seatPrices.txt

12.50
12.50
12.50
12.50
10.00
10.00
10.00
10.00
8.00
8.00
8.00
8.00

A firm has the following project (assume that the expenditures are at the end of the year in question):
1) The land will be acquired for $ 500,000 in year zero
2) The first year, $ 1 million will be spent on the construction of the plant.
3) The equipment will be purchased on year 2 at a cost of $1.5 million.
4) The third year, $ 500,000 will be disbursed to start operating the plant.
5) The plant and equipment will depreciate in a straight line for the next 10 years, beginning year 4 (project ends in year 13). The equipment and the physical construction will be worthless after these 10 years, but the land can be sold at its original cost, when the plant is closed.
6) The annual income (during the 10 years, that is, from the 4th to the 13th year) is 2 million.
7) The annual fixed cost (excluding depreciation) will be $ 200,000
8) The variable costs are annually of $ 300,000, assuming that the plant operates at its maximum capacity during the 10 years
9) The tax rate will be 50 percent as it will be treated as if it were a private business of the state itself (i.e. treat the state as a company, that is, pure neoliberalism)

Calculate the Net Present Value of the Project, if the discount rate is 14%.

ndiana Co. began a construction project in 2021 with a contract price of $150 million to be received when the project is completed in 2023. During 2021, Indiana incurred $36 million of costs and estimates an additional $84 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.

In 2022, Indiana incurred additional costs of $58.5 million and estimated an additional $40.5 million in costs to complete the project. Indiana:

A. Recognized $15 million gross profit on the project in 2022.

B. Recognized $13.5 million gross profit on the project in 2022.

C. Recognized $6 million gross profit on the project in 2022.

D. Recognized $1.5 million gross profit on the project in 2022.

The following information relates to Dane City during its fiscal year ended December 31, 20X2:

1. On October 31, 20X2, to finance the construction of a city hall annex, Dane issued 8 percent, 9-year general obligation bonds at their face value of $617,000. Construction expenditures during the period equaled $365,300.
2. Dane reported $110,300 from hotel room taxes restricted for tourist promotion in a special revenue fund. The fund paid $82,000 for general promotions and $23,000 for a motor vehicle.
3. Dane transferred 20X2 general fund revenues of $105,500 to a debt service fund and used them to repay $97,000 of 9 percent, 14-year term bonds and to pay $8,500 of interest. The bonds were used to acquire a citizens’ center.
4. At December 31, 20X2, as a consequence of past services, city firefighters had accumulated entitlements for compensated absences of $83,000. General fund resources available at December 31, 20X2, are expected to be used to settle $18,000 of this amount, and $65,000 is expected to be paid out of future general fund resources.
5. At December 31, 20X2, Dane was responsible for $84,000 of outstanding general fund encumbrances, including the $8,900 for supplies in the following table.
6. Dane uses the purchases method to account for supplies. The following information relates to supplies:

Required:
For items 1 through 10, determine the amounts based solely on the preceding information.

1. What is the amount of 20X2 general fund transfers out?

general fund transfers out

2. How much should be reported in 20X2 as general fund liabilities from entitlements for compensated absences?

general fund liabilities

3. What is the 20X2 assigned amount of the general fund balance?

general fund balance

4. What is the 20X2 capital projects fund balance?

capital projects fund balance

5. What is the 20X2 fund balance on the special revenue fund for tourist promotion?

special revenue fund

6. What is the amount of 20X2 debt service fund expenditures?

debt service fund expenditures

7. What amount should be included in the governmentwide financial statements for the cost of long-term assets acquired in 20X2?

cost of long-term assets

8. What amount stemming from the 20X2 transactions and events decreased the long-term debt liabilities reported in the governmentwide financial statements?

amount of decrease

9. Using the purchases method, what is the amount of 20X2 supplies expenditures?

supplies expenditures

10. What was the total amount of 20X2 supplies encumbrances?

supplies encumbrances

Chapter 2 Mastery Problem

The T – Accounts are set up for you in the excel spreadsheet.

Hassan Rahim won a concession to rent bicycles in the local park during the summer. During the month of June, Hassan completed the following transactions for his bicycle rental business:

Chart of Accounts

Question:

Suppose you have organized another business under the name “PAPA’s Hotel & Restaurant” on December 1, 2019. In order to compete in the market, you have decided to avail of financing from Azizi Bank for further expansion. Bank requires a list of documents including financial statements for further process. The business transactions during the month of December are as follows:

Dec 01: You have invested cash of $2,500,000 in your business, PAPA’s Hotel & Restaurant.

Dec 01: Purchased hotel building for $550,000. Made a $180,000 cash down payment and issued a note payable for balance amount.

Dec 01: You have agreed with Unilever Corporation to provide meeting hall and charge fixed revenue of $5,000 per month. The entire six-month rent revenue of $30,000 was collected in advance and credited to Unearned Rent Revenue.

Dec 01: Purchased food items for the restaurant on credit $10,000

Dec 10: Received cash of $80,000 from customers as rent revenue from customers.

Dec 15: Paid $10,000 salary to employees for services during the first half of December.

Dec 18: Purchased restaurant supplies of $2,500 on account.

Dec 31: Paid cash $10,000 for food items purchased on Dec 01.

Dec 31: You withdrew $5,000 cash from the business for personal use.

As you are following the accrual basis of accounting so adjustments are needed as at December 31, 2019. The information regarding adjustments is as follows:

1. Salaries earned by employees but not paid amount to $10,000 for second half of Dec.
2. As of Dec. 31, you have earned $20,000 rent revenue but not received any amount yet.
3. On Dec 1, entire six-month rent revenue of $30,000 was collected in advance and credited to Unearned Rent Revenue. As at December 31, adjustment is needed.
4. A Toyota Corolla car had been rented on Dec 09, at daily rate of $80 to provide transportation facility. No rental payment has yet been made.
5. Depreciation on Hotel’s building is based on an estimated useful life of 15 years. The original cost of building was $550,000 and residual value of $50,000.

Instructions:

1. Prepare Journal Entries, Post to the ledger, Prepare Trial Balance, Prepare adjusting entries, and then Prepare adjusted Trial Balance
2. Prepare financial statements (balance sheet & income statement) as of December 31, 2019 based on above information as it is the compulsory requirement of Azizi bank.
3. Evaluate the financial position and profitability of your business?
4. If you have applied for the financing of $250,000, whether you are qualified against the collateral of hotel building as at December 31, 2019?

Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements.

A.The government sells $900,000 in bonds at face value to finance construction of a warehouse.

B. A $1.1 million contract is signed for construction of the warehouse. The commitment is required, if allowed.

C. A $130,000 transfer of unrestricted funds was made for the eventual payment of the debt in (a).

D. Equipment for the fire department is received with a cost of $12,000. When it was ordered, an anticipated cost of $11,800 had been recorded.

E. Supplies to be used in the schools are bought for $2,000 cash. The consumption method is used.

F. A state grant of $90,000 is awarded to supplement police salaries. The money will be paid to reimburse the government after the supplement payments have been made to the police officers.

G.Property tax assessments are mailed to citizens of the government. The total assessment is $600,000, although officials anticipate that 4 percent will never be collected. There is an enforceable legal claim for this money and the government can use it immediately.