In each of the following independent cases, the company closes its books on December 31. Bridgeport Co. sells $491,000 of 8% bonds on March 1, 2017. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2020. The bonds yield 12%. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)

b-Prepare all of the relevant journal entries from the time of sale until the date indicated. (Assume that no reversing entries were made.)

c-Indigo Co. sells $440,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 8%. On October 1, 2018, Indigo buys back $140,800 worth of bonds for $147,800 (includes accrued interest).

Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)

Difference due to rounding

d-Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019. (Assume that no reversing entries were made.)

The company is in the process of preparing a budget for October and has assembled the following data:

1. Sales are budgeted at $540,000 for October and $550,000 for November. Of these sales, 35% will be for cash; the remainder will be credit sales. Forty percent of a month’s credit sales are collected in the month the sales are made, and the remaining 60% is collected in the following month. All of the September 30 accounts receivable will be collected in October.

2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following month’s cost of goods sold.

3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70% are paid for in the following month. All of the September 30 accounts payable to suppliers will be paid during October.

4. Selling and administrative expenses for October are budgeted at $93,800, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,430 for the month.

Required:

1. Using the information provided, calculate or prepare the following:

a. The budgeted cash collections for October.

b. The budgeted merchandise purchases for October.

c. The budgeted cash disbursements for merchandise purchases for October.

d. The budgeted net operating income for October.

e. A budgeted balance sheet at October 31.

A company engaged in the following transaction during October of 2019.

Record the events using the horizontal statement model provided below.

October 2 Purchased inventory from the Company costing $10,000 on account. The terms of the purchase were 1/10, n/30.
October 3 The merchandise was delivered FOB destination. Freight costs were $110.
October 5 Returned $1,000 of the inventory to the Company because it not what was ordered.
October 10 Paid the amount due to the company.
October 15 Sold inventory that had cost $5,000 for $10,000 on account to Kent, Corp, under terms 2/10, n/45.
October 16 Delivered goods FOB destination sold on October 15. Freight costs of $60 were paid in cash.
October 19 Received returned merchandise from Kent, Corp. The cost of the returned merchandise was $1,000 and was sold for $2,000.
October 25 Collected the amount due on the account receivable from Kent Corp.

Question 7. Which of the following should be accounted for as subsidiaries in the consolidated financial statements of Seabass Co?

1. 
   
2. Seabass Co owns 45% of Cod Co, but has a majority of seats on the Board which gives Seabass Co power over Cod Co
3. 
   
4. Seabass Co owns 60% of Haddock Co, and has 49% of the voting rights. The remaining 51% of the voting rights are controlled by a single shareholder.
5. 
   
6. Seabass Co owns 80% of the preference share capital of Sole Co which carry no voting rights
7. 
   
8. 
   

Cod Co, Haddock Co and Sole Co

Haddock Co and Sole Co only

Cod Co only

Haddock Co only

List and compare the relative advantages of the American and the British militaries on the eve of the American Revolution.

Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below:

The company is in the process of preparing a budget for October and has assembled the following data:

1. Sales are budgeted at $640,000 for October and $650,000 for November. Of these sales, 35% will be for cash; the remainder will be credit sales. Forty percent of a month’s credit sales are collected in the month the sales are made, and the remaining 60% is collected in the following month. All of the September 30 accounts receivable will be collected in October.

2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following month’s cost of goods sold.

3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70% are paid for in the following month. All of the September 30 accounts payable to suppliers will be paid during October.

4. Selling and administrative expenses for October are budgeted at $96,600, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,490 for the month.

Required:

1. Using the information provided, calculate or prepare the following:

a. The budgeted cash collections for October.

b. The budgeted merchandise purchases for October.

c. The budgeted cash disbursements for merchandise purchases for October.

d. The budgeted net operating income for October.

e. A budgeted balance sheet at October 31.

2. Assume the following changes to the underlying budgeting assumptions:

(1) 50% of a month’s credit sales are collected in the month the sales are made and the remaining 50% is collected in the following month, (2) the ending merchandise inventory is always 10% of the following month’s cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase and 80% are paid for in the following month. Using these new assumptions, calculate or prepare the following:

a. The budgeted cash collections for October.

b. The budgeted merchandise purchases for October.

c. The budgeted cash disbursements for merchandise purchases for October.

d. Net operating income for the month of October.

e. A budgeted balance sheet at October 31.

Prepare a budgeted balance sheet at October 31.

Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians’ Leasing purchased a lithotripter from Rand for $2,020,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2018. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
   

Required:
1. How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing?
2. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2018. Adjusting entries are recorded at the end of each fiscal year (December 31).
3. Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.7 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2018.

How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing?

.Leasee. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2018. Adjusting entries are recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.)

Record lease.

Record cash payment..

Record cash payment?.

Lessor. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2018. Adjusting entries are recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.)

Record lease.

Record cash payment..

Record cash payment?.

?Required. Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.7 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.).

.

E12-13 Preparing and Evaluating a Statement of Cash Flows (Indirect Method) from Comparative Balance Sheets and Income Statements [LO 12-1, LO 12-2, LO 12-3, LO 12-4, LO 12-5]

The thermal decomposition of dimethyl ether CH 3 2 O g CH 4 g H 2 g CO g is to be carried out in an isothermal 2.00-liter laboratory reactor at 600°C. The reactor is charged with pure dimethyl ether at a pressure of 350 torr. After about two hours, the reactor pressure is 875 torr. (a) Has the reaction proceeded to completion at the end of the two-hour period? If not, what percentage of the dimethyl ether has decomposed? (b) Taking elemental species [C(s), H2(g), O2(g)] at 25°C as references, prepare and fill in an inlet-outlet enthalpy table. (See Example 9.5-2.) Use tabulated data for methane, hydrogen, and carbon monoxide, and the following data for dimethyl ether: Δ H f 180.16 kJ mol C p J mol K 26.86 0.1659 T 4.179 10 5 T 2 T in kelvins (c) Calculate Δ H r 600 C and Δ U r 600 C for the dimethyl ether decomposition reaction. (d) How much heat (kJ) was transferred to or from the reactor (state which it is) during the two-hour period of the reaction? (e) Suppose the reaction were instead carried out in an expandable reactor at 600°C at a constant pressure of 350 torr, with the same final percentage decomposition of dimethyl ether. Calculate the final volume of the reactor and the required amount of heat transfer. (Note: These should both be quick calculations.) Explain why the values of Q calculated in Part d and in this part are different, even though the initial conditions and extents of reaction are the same.

Which resource is likely to have contributed to South Korea's rapid economic growth?