Chowan Corporation issued $115,000 of 9% bonds dated January 1, 2016, for $111,283.65 on January 1, 2016. The bonds are due December 31, 2019, were issued to yield 10%, and pay interest semiannually on June 30 and December 31. Chowan uses the effective interest method of amortization.
Required:
| Prepare the journal entries to record the issue of the bonds on January 1, 2016, and the interest payments on June 30, 2016, December 31, 2016, and June 30, 2017. In addition, prepare a bond interest expense and discount amortization schedule for the bonds through June 30, 2017. |
In: Accounting
You are given the following information for Company ABC as of December 31, 2016:
Capital Stock, $1,000,000 ($1 par)
Paid-In Capital in Excess of Par Value—Common, $4,000,000
Retained Earnings Balance on January 1, 2016, $400,000
Retained Earnings Balance on December 31, 2016, $300,000
Dividends declared and paid in 2016: $1,100,000
What was the company's net income for 2016?
Select one:
a. $1,200,000
b. $100,000
c. $0
d. None of the above
How many shares of stock are issued and outstanding?
Select one:
a. 4,000,000
b. 5,000,000
c. 1,000,000
d. None of the above
In: Accounting
Weiland Co. shows the following information on its 2016 income statement: sales = $173,000; costs = $91,400; other expenses = $5,100; depreciation expense = $12,100; interest expense = $8,900; taxes = $21,090; dividends = $9,700. In addition, you’re told that the firm issued $2,900 in new equity during 2016 and redeemed $4,000 in outstanding long-term debt. a. What is the 2016 operating cash flow? b. What is the 2016 cash flow to creditors? c. What is the 2016 cash flow to stockholders? d. If net fixed assets increased by $23,140 during the year, what was the addition to NWC?
In: Finance
Ahmad Corporation paid $350,000 for a 30 percent interest in Fakhry Corporation on July 1, 2016, when Fakhry Corporation’s common stock was at $350,000 and retained earnings at $150,000. In 2016, Fakhry declared and paid dividends of $20,000 each on March 1 and September 1. Fakhry’s income for 2016 is summarized below: Income before extraordinary item $80,000 Extraordinary gains, December 2016 20,000 Net income $100,000 Fakhry’s assets and liabilities were stated at fair values on July 1, 2016, except for land that was undervalued by $25,000 and equipment with a five-year remaining useful life that was undervalued by $50,000. >Prepare all the journal entries (other than closing entries) on the books of Ahmad Corporation during 2016 to account for the investment in Fakhry!
In: Accounting
Satsuma Berhad bought 8 % of Natural Herb 's ordinary shares for RM210 million on 2January 2016. Under general conditions, the shares would be categorized by Satsuma as an Available for Sale. However, Satsuma elected the fair value option for the investment. On 31 December 2016, the fair value of the shares held by Satsuma was RM215 millior. Meanwhile, Natural Herb's net income for the year ended 31 December 2016 was RM320 million. Dividend declared by Natural Herb during 2016 was RM80 million. Required: (a) Explain how the investment would be classified in Satsuma's statement of financial position (i.e. as Available for Sale, Held to Maturity, trading or others). (b) Provide the journal entries during the year 2016 to account for the transactions. (c) Discuss the effect of this investment on 2016 income before taxes.
In: Accounting
Clark Fork, Inc. had 100,000 shares of common stock outstanding on December 31, 2014. The following changes occurred during 2015 and 2016:
| April 1, 2015 | issued an additional 10,000 shares | |
| July 1, 2015 | 2:1 stock split | |
| October 1, 2015 | 5,000 treasury shares purchased | |
| December 1, 2015 | reissued the 5,000 treasury shares | |
| March 1, 2016 | 50% stock dividend | |
| July 1, 2016 | issued an additional 30,000 shares |
The 2016 income statement will include earnings per share computations for 2015 and 2016.
For calculating basic earnings per share for that statement, what is the weighted average number of shares outstanding for the year 2015? What is the weighted average number of shares outstanding for the year 2016?
In: Accounting
PQR Corporation had an inventory of widgets on hand on January 1, 2016 which cost $10 per widget. During 2016 PQR increased its widget inventory through two purchases. On February 1, PQR purchased another 1000 widgets at a cost of $13 per widget; and on September 1, 2016 it purchased another 1000 widgets at 15 per widget. There was only one sale of widgets during 2016. It occurred on December 11, 2016 when 1500 widgets were sold.
What was the cost of goods sold and closing inventory value for the widgets at December 31, 2016, the end of PQR’s fiscal year using A) the average cost method, B) the FIFO cost method and C) the LIFO cost method?
Opening and ending inventory quantity are not provided.
In: Accounting
|
The Kwok Company’s inventory balance on December 31, 2016, was $165,000 (based on a 12/31/16 physical count) before considering the following transactions: |
| 1. |
Goods shipped to Kwok f.o.b. destination on December 20, 2016, were received on January 4, 2017. The invoice cost was $30,000. |
| 2. |
Goods shipped to Kwok f.o.b. shipping point on December 28, 2016, were received on January 5, 2017. The invoice cost was $17,000. |
| 3. |
Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2016, were received by the customer on January 3, 2017. The sales price was $40,000 and the merchandise cost $22,000. |
| 4. |
Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2016, were received by the customer on December 30, 2016. The sales price was $20,000 and the merchandise cost $13,000. |
| 5. |
Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2016, were received by the customer on January 4, 2017. The sales price was $25,000 and the merchandise cost $12,000. |
|
Determine the correct inventory amount to be reported in Kwok’s 2016 balance sheet. |
In: Accounting
Nature’s Harvest, Inc. produces and sells granola bars available in the health foods section of local grocery stores. In 2016 (first year of operations) the company produced 150,000 units of its Bounty Bar product line. The sales price is $3.00 each. Related information appears below for 2016.ItemTotal CostAlmonds$27,000Whole Grain Oats9,000Wages for Factory Production Staff62,000Costs for Product Packaging45,000Canola Oil / Honey / Sugar20,000Utilities for the Factory6,000Salaries for Corporate Staff (CFO/CEO)100,000Wages for Factory Cleaning Staff15,000Rent on Corporate Headquarters 25,000Rent on Factory and Equipment50,000Required:1) What are the company’s total product costs for:a. direct labor b. direct materials c. factory overhead 2) What are the product costs to make 1 Bounty Bar? 3) What are the company’s total period costs? 4) If the company sold 120,000 units of the 150,000 units produced in 2016: a. What amount of cost of goods sold would have appeared in its 2016 income statement? b. What is their 2016 Gross Profit? c. What is their ending 2016 inventory value (Beg 2016 inventory was zero)? 5) Ignoring taxes what is their 2016 Net Income
In: Accounting
You represent the Executive team for Mountainside Medical Center and have the following operating results for the year ended 12/31/2016.
| Item | Actual 2016 | |
| Revenues | ||
| Patient Care Revenues | ||
| Gross Revenue | ||
| Inpatient Revenue | 359,826,750 | |
| Outpatient Revenue | 138,190,000 | |
| Total Gross Revenue | $498,016,750 | |
| Deductions & Allowances | $287,728,213 | |
| Bad Debt | 22,410,754 | |
| Charity Care | 8,715,293 | |
| Net Patient Revenue | $179,162,491 | |
| Other Operating Revenue | 147,300 | |
| Total Operating Revenue | $179,309,791 | |
| Expenses | ||
| Salaries & Wages | $57,200,000 | |
| Employee Benefits | 18,161,000 | |
| Supplies | 53,748,747 | |
| Purchased Services | 19,707,874 | |
| Depreciation & Amortization | 17,122,000 | |
| Other Operating Expenses | 4,479,062 | |
| Total Operating Expenses | $170,418,683 | |
| Operating Profit | $8,891,107 | |
| Net Income | $8,891,107 | |
You are asked to make a quick estimate of income for 2017. You believe that the volume of services will remain the same from 2016 to 2017, but expect the following changes:
Net revenues will increase by 2%;
Bad debts will increase by 1% over the rate seen in 2016 (take bad debt as a % of gross for 2016 and increase it by 101%). Charity will remain at the same rate as in 2016.
Salaries will increase by 3%. Benefits will remain at the same percentage of salaries as in 2016;
Supplies will increase by 4% over the rate seen in 2016 (take supplies as a % of net for 2016 and increase it by 104%) ;
The hospital will add one item of capital equipment that will add $262,775 in depreciation in 2017.
All other items are expected to remain the same as in 2016.
Your task is to create an income projection for the Medical Center for 2017 given the changes described above.
In: Finance