| XYZ stock price and dividend history are as follows: |
| Year | Beginning-of-Year Price | Dividend Paid at Year-End |
| 2010 | $ 124 | $ 4 |
| 2011 | $ 135 | $ 4 |
| 2012 | $ 115 | $ 4 |
| 2013 | $ 120 | $ 4 |
|
An investor buys six shares of XYZ at the beginning of 2010, buys another two shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all seven remaining shares at the beginning of 2013. |
What are the geometric average time-weighted rates of return for the investor?
In: Finance
| 4) | An extended warranty for 3 years is sold for $1,155.00 on January 1, 2009. | ||||||||||||||
| $200 is spent by the company to honor the warranty on March 7, 2009. | |||||||||||||||
| Revenue is recognized for unused portion of the warranty on December 31, 2009. | |||||||||||||||
| No money is spent in 2010 on warranties. Revenue is recognized for the unused | |||||||||||||||
| portion of the warranty on December 31, 2010. | |||||||||||||||
| (check figure: 12/31/2009 entry to unearned extended warranty = $185.00 debit) | |||||||||||||||
| Create the general journal entries to record the four transactions. | |||||||||||||||
In: Accounting
On January 2, 2010, Sayre Company purchased a machine for $45,000. The machine has a five-year estimated useful life and a $5,000 estimated residual value. In addition, the company expects to use the machine 250,000 hours. Assuming that the machine was used 40,000 and 45,000 hours during 2010 and 2011, respectively, complete the following chart.
|
Depreciation Expense |
Depreciation Expense |
Accumulated Depreciation |
Net Book Value |
|
|
Straight-Line Method |
||||
|
Declining Balance Method |
In: Finance
WidgetMakers LLC started business January, 01, 2010. They paid a $6,000 premium for insurance coverage on their inventory. The coverage expires June 01, 2010. At this time they renew for the remainder of the year by paying an additional premium of $7,700. What is the quarterly insurance expense that WidgetMakers should report for the period ending June 30,2010. Please explain to me how to do this. why do we multiply 6000 by 2 for april and may if it starts in january and then divide by 5 and same process with the 7700
In: Accounting
Q1. Firoz Corp. obtained a trade name in January 2010, incurring legal costs of SAR15,000. The company amortizes the trade name over 8 years. Moon successfully defended its trade name in January 2011, incurring SAR 4,900 in legal fees. At the beginning of 2012, based on new marketing research, Moon determines that the recoverable amount of the trade name is SAR 12,000.
Prepare the necessary journal entries for the years ending December 31, 2010, 2011, and 2012.
In: Finance
Hassellhouf Company’s trial balance at December 31, 2020, is as
follows. All 2020 transactions have been recorded except for the
items described following the trial balance.
|
Debit |
Credit |
|||
|
Cash |
$28,000 |
|||
|
Accounts Receivable |
35,000 |
|||
|
Notes Receivable |
8,300 |
|||
|
Interest Receivable |
0 |
|||
|
Inventory |
36,400 |
|||
|
Prepaid Insurance |
3,600 |
|||
|
Land |
20,600 |
|||
|
Buildings |
138,000 |
|||
|
Equipment |
61,200 |
|||
|
Patents |
10,600 |
|||
|
Allowance for Doubtful Accounts |
$400 |
|||
|
Accumulated Depreciation—Buildings |
46,000 |
|||
|
Accumulated Depreciation—Equipment |
24,480 |
|||
|
Accounts Payable |
27,200 |
|||
|
Salaries and Wages Payable |
0 |
|||
|
Unearned Rent Revenue |
2,100 |
|||
|
Notes Payable (due in 2018) |
13,000 |
|||
|
Interest Payable |
0 |
|||
|
Notes Payable (due after 2018) |
36,000 |
|||
|
Owner’s Capital |
99,620 |
|||
|
Owner’s Drawings |
12,500 |
|||
|
Sales Revenue |
905,000 |
|||
|
Interest Revenue |
0 |
|||
|
Rent Revenue |
0 |
|||
|
Gain on Disposal of Plant Assets |
0 |
|||
|
Bad Debts Expense |
0 |
|||
|
Cost of Goods Sold |
637,000 |
|||
|
Depreciation Expense |
0 |
|||
|
Insurance Expense |
0 |
|||
|
Interest Expense |
0 |
|||
|
Other Operating Expenses |
61,600 |
|||
|
Amortization Expense |
0 |
|||
|
Salaries and Wages Expense |
101,000 | |||
|
Total |
$1,153,800 |
$1,153,800 |
Unrecorded transactions:
| 1. | On May 1, 2020, Hassellhouf purchased equipment for $17,600 plus sales taxes of $1,500 (all paid in cash). | |
| 2. | On July 1, 2020, Hassellhouf sold for $3,500 equipment which originally cost $5,100. Accumulated depreciation on this equipment at January 1, 2020, was $1,800; 2020 depreciation prior to the sale of the equipment was $500. | |
| 3. | On December 31, 2020, Hassellhouf sold on account $5,000 of inventory that cost $3,200. | |
| 4. | Hassellhouf estimates that uncollectible accounts receivable at year-end is $3,900. | |
| 5. | The note receivable is a one-year, 8% note dated April 1, 2020. No interest has been recorded. | |
| 6. | The balance in prepaid insurance represents payment of a $3,600 6-month premium on September 1, 2020. | |
| 7. | The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,000. | |
| 8. | The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. | |
| 9. | The equipment purchased on May 1, 2020, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,000. | |
| 10. | The patent was acquired on January 1, 2020, and has a useful life of 10 years from that date. | |
| 11. | Unpaid salaries and wages at December 31, 2020, total $2,000. | |
| 12. | The unearned rent revenue of $2,100 was received on December 1, 2020, for 3 months’ rent. | |
| 13. | Both the short-term and long-term notes payable are dated January 1, 2020, and carry a 9% interest rate. All interest is payable in the next 12 months. |
a)Prepare journal entries for the transactions listed above
b)Prepare an updated December 31, 2020, trial balance.
c)Prepare a 2020 income statement.
d)Prepare a 2020 an owner’s equity statement.
e)Prepare a December 31, 2020, classified balance sheet. (List Current Assets in order of liquidity. List Property, Plant and Equipment in the order of Land, Buildings and Equipment.)
In: Accounting
XYZ stock price and dividend history are as follows:
| Year | Beginning-of-Year Price | Dividend Paid at Year-End | |
| 2010 | $ | 102 | $ 3 |
| 2011 | $ | 105 | $ 3 |
| 2012 | $ | 91 | $ 3 |
| 2013 | $ | 96 | $ 3 |
An investor buys three shares of XYZ at the beginning of 2010, buys another one shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all three remaining shares at the beginning of 2013.
a. What are the arithmetic and geometric average
time-weighted rates of return for the investor? (Do not
round intermediate calculations. Round your answers to 2 decimal
places.)
| Arithmetic mean | % |
| Geometric mean | % |
b-1. Prepare a chart of cash flows for the four
dates corresponding to the turns of the year for January 1, 2010,
to January 1, 2013. (Negative amounts should be indicated
by a minus sign.)
| Date | Cash Flow |
| 1/1/2010 | $ |
| 1/1/2011 | |
| 1/1/2012 | |
| 1/1/2013 | |
b-2. What is the dollar-weighted rate of return?
(Hint: If your calculator cannot calculate internal rate
of return, you will have to use a spreadsheet or trial and error.)
(Negative value should be indicated by a minus sign. Round
your answer to 4 decimal places.)
Rate of return %
In: Finance
Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare a retained earnings statement.
Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2010 an analysis of the accounts and discussions with company officials revealed the following information:
Sales $1,100,000
Purchase discounts 18,000
Purchases 642,000
Income from operations of discontinued product line 35,000
Loss on disposal of discontinued production line 70,000
Selling expenses 128,000
Cash 60,000
Accounts receivable 90,000
Unrealized gain on available for sale securities 12,000
Common stock 200,000
Accumulated depreciation – machinery 180,000
Dividend revenue 8,000
Inventory, January 1, 2010 152,000
Inventory, December 31, 2010 125,000
Unearned service revenue 4,400
Interest payable 1,000
Land 370,000
Retained earnings, January 1, 2010 290,000
Interest expense 17,000
Administrative expenses 170,000
Dividends declared 24,000
Allowance for doubtful accounts 5,000
Notes payable (maturity 7/1/13) 200,000
Machinery 450,000
Materials 40,000
Accounts payable 60,000
Pension loss from minimum pension adjustment 20,000
Correction of error – overstatement of depreciation expense in 2015 32,000
Assume an income tax rate of 30%
In: Accounting
In: Accounting
On November 10, 2009, King Co. sold inventory to a customer in a foreign country. King agreed to accept local currency units (LCU) in full payment for this inventory. Payment was to be made on Feb 1, 2010. On December 1, 2009, King entered into a forward contract wherein the total payment to be received would be delivered to a currency broker in two months. Additional information is as follows:
Total payment in local currency units (LCU) for the inventory: 120,000
Date Rate Description Exchange Rate per LCU
Nov. 10, 2009 Spot Rate $0.28
Dec. 1, 2009 Spot Rate $0.30
2-Month Forward Rate $0.32
Dec. 31, 2009 Spot Rate $0.34
1-Month Forward Rate $0.36
Feb. 1, 2010 Spot Rate $0.38
The present value factor for one month based on the company's borrowing rate is 0.9901
Assume this hedge is designated as a cash flow hedge, what items relating to this transaction should the company report on its 2009 and 2010 financial statements? Please prepare journal entries and show what items (account name and dollar amounts) related to the export sale and forward contract the company will report on its 2009 and 2010 financial statements.
In: Accounting