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
In: Finance
Apple Inc.
Introduction. Start with an introductory paragraph or two explaining the purpose of the report.
Brief History of the Company. In no more than one (1) page
address the following:
• What is the company’s principal line of business and
major competitors?
• What are their key products/services?
• On what day does the company’s fiscal year end?
• Provide a brief history of the company: When did the
company first go public? Have they had any stock splits since then?
Any other relevant data about their stock.
• Who is their current CEO, CFO?
• What else would a potential investor want to
know?
In: Accounting
On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,392,300 in cash. The price paid was proportionate to Sellinger’s total fair value, although at the acquisition date, Sellinger had a total book value of $1,700,000. All assets acquired and liabilities assumed had fair values equal to book values except for a patent (six-year remaining life) that was undervalued on Sellinger’s accounting records by $279,000. On January 1, 2018, Palka acquired an additional 25 percent common stock equity interest in Sellinger Company for $536,250 in cash. On its internal records, Palka uses the equity method to account for its shares of Sellinger.
During the two years following the acquisition, Sellinger reported the following net income and dividends:
| 2017 | 2018 | |||||
| Net income | $ | 472,500 | $ | 622,500 | ||
| Dividends declared | 150,000 | 180,000 | ||||
Show Palka’s journal entry to record its January 1, 2018, acquisition of an additional 25 percent ownership of Sellinger Company shares.
Prepare a schedule showing Palka’s December 31, 2018, equity method balance for its Investment in Sellinger account.
Show Palka’s journal entry to record its January 1, 2018, acquisition of an additional 25 percent ownership of Sellinger Company shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Prepare a schedule showing Palka’s December 31, 2018, equity method balance for its Investment in Sellinger account. (Amounts to be deducted should be indicated with a minus sign.)
In: Accounting
Case study: The Good, the Bad and the Ugly - A Story of Vadym
Hetman As CEO of Avani International, Hetman headed the growth of a
corporate giant. At its peak, Avani was gobbling up 200 companies a
year. Under his leadership, the value of Avani increased 70-fold.
In 2011, Hetman proclaimed his desire to be remembered as the world
greatest business executive. Things turn sour when Hetman and his
former chief financial officer were accused of running criminal
enterprise within Avani. The two were charged stealing $170 million
directly from the company and pocketing an additional $450 million
through manipulated sales of stock. Hetman’s action has almost
destroyed the company where he worked for 25 years. In 2012 alone
the value of the company’s stock dropped $90 billion. Hetman spent
his early years in humble circumstances. He grew up in the 1960’s
in Jackson, Alabama. He said he was the son of a cop. It was only
after he was accused did it come out that his father was never a
police officer in Jackson or anywhere else. However, his mother did
work for the Jackson Police Department as a school crossing guard.
His father, in actuality, was a wheeler-dealer who was a practiced
deceiver and an effective persuader. He had a strong personality
but for the most part kept his misdeeds to little white lies.
Friends remember Hetman as an easygoing kid who did well in school
without trying very hard. He was elected “class politician” by high
school graduating class. He went on to Samford, paying his way to
college by playing guitar in a band. He served in Bangkok held a
few accounting job, and eventually joined Avani in 1980s. Over the
course of the 1990s, Hetman’s happy-go-lucky character disappeared.
As he climbed the ladder at Avani, he became a corporate tough guy,
both respected and feared. He eventually became CEO in 2001 and
administered the rapid expansion of the company. Meanwhile, Hetman
learned to live big. He had a $18 million apartment in Los Angeles,
a $35 million mansion in Georgia, and a $20 million yacht. He spent
$25 million on art for his luxury homes. He took extravagance to
the extreme, for instance, spending $5, 000 on a shower curtain.
The more he made, the more he spent, and the more he allegedly
stole. Although his total compensation was $160 million in 2008, it
wasn’t enough. He manipulated the company’s relocation fund and
Employee Loan Program to take hundreds of millions in interest-free
funds. In 2010 for instance, he gave his wife $1.5 million to start
a restaurant, spent $2 million on birthday party in the Hawaii
Island for his wife, and gave away $50 million in corporate funds
to make humanitarian contributions in his own name. (Source:
Adapted from Stephen, P. Robbins, “Organizational Behavior”,
2005)
1 Based on the case study:
(a) Examine Hetman’s personality trait.
(b) Discuss how Hetman’s past shaped his personality
(c) Based on your answer in (a). Discuss two (2) character traits that might influence Hetman’s behaviour and performance at work.
(d) Discuss two (2) factors present in the case study that most likely influence Hetman’s perception of achievement.
(e) Which motivation theory do you think best explains Hetman’s behaviour and work performance? Justify your answer.
(f) “Hetman just did what anybody would do if they had the chance. The people at fault in this case are Avani’s Board of Directors for not controlling their CEO”. Do you agree or disagree with this statement? Discuss your answer based on the characteristics of effective team.
(g) Discuss what Avani International should do if symptoms of groupthink exist in the company.
In: Operations Management
The break-even point tells a company the number of units or the amount of revenue that it must sell or earn in order to pay for all of its costs. At this point, the company has neither profit nor loss.
Companies have two main types of costs: variable costs and fixed costs.
Variable costs are those costs that vary with the number of units produced. Examples of variable costs are direct labor, direct materials and overhead.
Fixed costs are those costs that a company incurs that do not depend on production. For example, most selling, and all administrative costs are fixed. A company must pay these costs even if it does not have any production activity.
The formulas for computing break-even follow:
B/E (# units) = . Fixed Cost .
Contribution Margin
B/E (Revenue) = . Fixed Cost .
Contribution Margin Ratio
If you will notice, both formulas use something called Contribution Margin. Contribution Margin represents the amount of revenue available after all variable costs have been paid for. It represents what is left over to pay for the fixed costs. The Contribution Margin ratio is the percentage Revenue that the Contribution Margin represents. In concept this is similar to Gross Profit.
In Cost Accounting Variable Costs are grouped together, and Fixed Costs are grouped together to create a variation of the traditional Income Statement. This variation is called a Contribution Margin Income Statement.
Read the following ethical dilemma.
Spillproof Company produces molded plastic cup holders for automobiles. Below is a summary of its Contribution Margin Income Statement from last year:
Because the company’s CEO is very concerned about the firm’s net losses, she asks the production manager if there are any ways in which they can reduce costs.
A few weeks later, the production manager returns with a proposal to reduce variable costs to 53% of revenues by lowering the cost estimates that the company uses for environmental clean-up costs. Some years the company has to perform waste clean-up and other years it does not. Either way, the company records this estimated cost as part of Variable Cost since it is based on the number of units produced.
The CEO likes the new projected net income and new break-even point, but is concerned that this change in the estimate will misrepresent the potential liability. The manager disagrees. He feels that the company will not be violating any laws by changing their estimate, and that there is only a possibility of environmental costs in the future anyway.
Requirements for your Main thread post:
In: Finance
A divorce agreement entered into in 2017 requires Alice to pay her former spouse $50,000 a year for the next ten years. Will the payments qualify as alimony? Why or why not?
In: Accounting
Is it unethical to hire someone you are familiar with (family member, friend, former colleague) instead of a higher-qualified candidate? Discuss why or why not, or if it depends on certain factors.
In: Operations Management