PROBLEM 1
The following information relates to the debt investments to Mayor Company on 2020.
Instructions
In: Accounting
Solare Company acquired mineral rights for $60,000,000. The diamond deposit is estimated at 6,000,000 tons. During the current year, 2,300,000 were mined and sold.
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a.
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Determine the depletion rate.
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b.
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Determine the amount of depletion expense for the current year.
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c.
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Journalize the adjusting entry to recognize the depletion expens |
In: Accounting
IBM had acquired a German company in 1922 and, like other American companies, found itself operating after 1933 in a country whose government violently suppressed political dissent and engaged in intimidation and discrimination against Jews. Discuss the options and responsibilities of multinationals with investments in politically reprehensible regimes.
In: Economics
Discuss a mental model that the leaders of your current or former organization hold that needs to be changed. Describe the model and explain how it needs to be changed. How will/would making this change, affect the culture of your organization?
In: Operations Management
If the company paid $12,500 in salaries and wages in 2020, what was the balance in salaries and wages payable on December 31.2019?
Presented below are adjusted and unadjusted trial balance
| December 31, 2020 | Unadjusted ( U ) | Adjusted (A) | |||||
| Balance Sheet ( B)/ Income Statement Item (I) | Dr | Cr | Dr | Cr | |||
| B | Cash | 11,000 | 11,000 | ||||
| B | Accounts Receivable | 20,000 | 23,500 | ||||
| B | Supplies | 8,400 | 3,000 | ||||
| B | Prepaid Insurance | 3,350 | 2,500 | ||||
| B | Equipment | 60,000 | 60,000 | ||||
| B | Accumulated Depreciation - Equipment | 28,000 | 33,000 | ||||
| B | Accounts Payable | 5,000 | 5,000 | ||||
| B | Interest Payable | 150 | |||||
| B | Notes Payable | 5,000 | 5,000 | ||||
| B | Unearned Service Revenue | 7,000 | 5,600 | ||||
| B | Salaries and Wages Payable | 0 | 1,300 | ||||
| B | Common Stock | 10,000 | 10,000 | ||||
| B | Retained Earnings | 3,500 | 3,500 | ||||
| I | Service Revenue | 58,600 | 63,500 | ||||
| I | Salaries and Wages Expense | 10,000 | 11,300 | ||||
| I | Insurance Expense | 850 | |||||
| I | Interest Expense | 350 | 500 | ||||
| I | Depreciation Expense | 5,000 | |||||
| I | Supplies Expense | 5,400 | |||||
| I | Rent Expense | 4,000 | 4,000 | ||||
| Totals | 117,100 | 117,100 | 127,050 | 127,050 | |||
In: Accounting
The following purchases and sales for Smith Company are for November 2020. There was no inventory on November 1.
| Nov. 2 | Purchased 6,000 units at $32 each |
| Nov. 6 | Sold 1,400 units at $40 each |
| Nov. 10 | Purchased 1,700 units at $35 each |
| Nov. 12 | Sold 1,300 units at $41 each |
| Nov. 22 | Purchased 2,100 units at $36 each |
| Nov. 25 | Sold 2,300 units at $42 each |
| Nov. 29 | Purchased 2,000 at $37 each |
Required:
A. Compute the ending inventory as of November 30, 2020, using the perpetual inventory procedure, under each of the following methods: (1) FIFO, (2) LIFO, and (3) Weighted Average (please carry unit costs to four decimal places, and round the total cost to the nearest dollar).
B. Repeat Part A using the periodic inventory procedure.
In: Accounting
O’Brien Company is in the process of closing its books at the end of 2020. The company's preliminary income statement for 2020 and its reported income statement for 2019 are given below.
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2020 |
2019 |
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Sales Revenues |
675,000 |
660,000 |
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Cost of Goods Sold |
(427,500) |
(428,750) |
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Gross Profit |
247,500 |
231,250 |
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Depreciation |
(56,250) |
(53,750) |
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Other Expenses |
(81,020) |
(76,520) |
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Net Income |
110,230 |
100,980 |
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O’Brien's records reveal the following information:
Year FIFO Average
2018 426,500 428,000
2019 428,750 430,000
2020 427,500 432,000
O’Brien purchased equipment on July 2, 2016. The asset's original cost was $30,000, and this amount was entirely expensed in 2016. This particular asset has a 10-year useful life and a $5,000 residual value. The straight-line method was chosen for depreciation purposes.
Required:
In: Accounting
The following purchases and sales for Sipple Company are for November 2020. There was no inventory on November 1.
| Nov. 2 | Purchased 6,000 units at $32 each |
| Nov. 6 | Sold 1,400 units at $40 each |
| Nov. 10 | Purchased 1,700 units at $35 each |
| Nov. 12 | Sold 1,300 units at $41 each |
| Nov. 22 | Purchased 2,100 units at $36 each |
| Nov. 25 | Sold 2,300 units at $42 each |
| Nov. 29 | Purchased 2,000 at $37 each |
Required:
A. Compute the ending inventory as of November 30, 2020, using the perpetual inventory procedure, under each of the following methods: (1) FIFO, (2) LIFO, and (3) Weighted Average (please carry unit costs to four decimal places, and round the total cost to the nearest dollar).
B. Repeat Part A using the periodic inventory procedure.
Starting:
| Purchased | Sold | Balance | ||||||||
| Unit | Total | Unit | Total | Unit | Total | |||||
| Date | Units | Cost | Cost | Units | Cost | Cost | Units | Cost | Cost | |
| Nov. 2 | ||||||||||
In: Accounting
| The balances of the ledger accounts for a Company on November 30, 2020 are as follows: |
| Account Name | Balance | |
| Cash | $ | 21,000 |
| Accounts Receivable | 10,200 | |
| Supplies | 4,000 | |
| Prepaid Insurance | 10,800 | |
| Equipment | 12,000 | |
| Accumulated Depreciation—Equipment | − | |
| Accounts Payable | 6,800 | |
| Alicia Santiago, Capital | 48,000 | |
| Alicia Santiago, Drawing | 4,600 | |
| Fees Income | 35,000 | |
| Advertising Expense | 4,400 | |
| Rent Expense | 7,200 | |
| Salaries Expense | 13,200 | |
| Supplies Expense | − | |
| Insurance Expense | − | |
| Utilities Expense | 2,400 | |
| Depreciation Expense—Equipment | − | |
| Adjustment information: | |
| (a) |
The supplies were purchased on November 1, 2020. An inventory of supplies showed $2,800 on hand on November 30, 2020. |
| (b) |
The amount of Prepaid Insurance represents a payment made November 1, 2020, for a six-month insurance policy. |
| (c) |
The equipment, purchased November 1, 2020, has an estimated useful life of 5 years with no salvage value. The firm uses the straight-line method of depreciation. |
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Prepare the Trial Balance section, record the adjustments, and complete the worksheet. |
In: Accounting
You are the director of international operations for North and South America for Lenovo. In 2015 you developed a five-year marketing plan to aggressively market personal computers in Canada, Mexico and Brazil. A key element of your plan called for meeting the competitive prices of HP and local manufacturers every step of the way. In addition you planned to spend heavily on marketing. Your yearly budget for marketing in the major target markets was set as follows:
Canada C$ 2,000,000
Mexico Pesos 5,000,000
Brazil Reals 1,000,000
Your 2015 price set in U.S.$ for your top selling laptop was $2,000 in each market. Market prices have declined 20% on a U.S$ basis over the years.
1. What do your marketing budgets look like in 2015 and today in US$?
2. What do the computer prices look like in local currencies in 2015 and today?
3. What actions would you plan to take in each market to fulfill your goals while
addressing current conditions? (Hint: look at the marketing expenditures and the prices together).
CURRENCY PROBLEM 2
You are the director of U.S. operations for Nissan. In 2015, you developed plans for a new sports truck model, the Nissan Minimax to be sold at $30,000. This model can be made in both the U.S. and Japan. Gross margin (meaning margin after all direct costs) is approximately 50%.
1. What is the cost of the Minimax to Nissan if it is made in
Japan vs. made in the U.S. in 2015 and 2020, assuming
no inflation?
2. What actions would you recommend to the home office in
Tokyo to address the current situation?
SPOT RATES FOR CURRENCY EXERCISE
Country Spot Rates (3-11-15) Spot Rates (3-11-20)
Canada C$ 0.7683 0.7282
Mexico pesos 0.0646 0.0474
Brazil reals 0.3315 0.2133
Japan yen 0.0083 0.0095
In: Accounting