Information on Swifty Corporation, which reports under ASPE,
follows:
| July 1 | Swifty Corporation sold to Wildhorse Co. merchandise having a sales price of $8,500, terms 2/10, n/60. Ignore cost of goods sold entry. | |
| 3 | Wildhorse Co. returned defective merchandise having a sales price of $700. The merchandise was not saleable and was scrapped. | |
| 5 | Accounts receivable of $19,600 are factored with Ayayai Corp. without recourse at a financing charge of 9%. Cash is received for the proceeds and collections are handled by the finance company. | |
| 9 | Specific accounts receivable of $16,600 (gross) are pledged to Landon Credit Corp. as security for a loan of $10,800 at a finance charge of 3% of the loan amount plus 9% interest on the outstanding balance. Swifty will continue to make the collections. All the accounts receivable pledged are past the discount period and were originally subject to a 2% discount. | |
| Dec. 29 | Wildhorse Co. notifies Swifty that it is bankrupt and will be able to pay only 10% of its account. Give the entry to write off the uncollectible balance using the allowance method. |
(a)
Prepare all necessary journal entries on Swifty Corporation’s
books.
List of possible accounts are as follows:
Accounts Payable
Accounts Receivable
Accrued Liabilities
Accumulated Depreciation - Equipment
Advances to Employees
Advertising Expense
Allowance for Doubtful Accounts
Allowance for Sales Returns and Allowances
Bad Debt Expense
Bank Charges Expense
Cash
Cash Over and Short
Due from Factor
Entertainment Expense
Equipment
Finance Expense
Finance Revenue
Freight in
Freight out
Gain on Disposal of Equipment
Gain on Disposal of Land
Interest Expense
Interest Income
Interest Receivable
Inventory
Land
Loss on Disposal of Equipment
Loss on Disposal of Land
Loss on Disposal of Receivables
Loss on Impairment
Miscellaneous Expense
No Entry
Notes Payable
Notes Receivable
Office Expense
Petty Cash
Postage Expense
Prepaid Expenses
Purchase Discounts
Recourse Liability
Refund Liability
Rent Expense
Sales Discounts
Sales Discounts Forfeited
Sales Returns and Allowances
Sales Revenue
Servicing Liability
Service Revenue
Supplies
Supplies Expense
Unearned Revenue
In: Accounting
| Revenue | 46867 | Cash & Equivalents | 575 | |
| Total Revenue | 46867 | Short Term Investments | 1358 | |
| Cost of Revenue, Total | 32918 | Cash and Short Term Investments | 1933 | |
| Gross Profit | 13948 | Total Receivables, Net | 722 | |
| Selling/General/Admin. Expenses, Total | 9726 | Total Inventory | 6744 | |
| Depreciation/Amortization | 1414 | Prepaid Expenses | 116 | |
| Unusual Expense (Income) | 13.8 | Other Current Assets, Total | 163 | |
| Total Operating Expense | 44072 | Total Current Assets | 9677 | |
| Operating Income | 2794 | Property/Plant/Equipment, Total - Gross | 36137 | |
| Interest Inc.(Exp.),Net-Non-Op., Total | -286 | Accumulated Depreciation, Total | -14748 | |
| Other, Net | 5.4 | Property/Plant/Equipment, Total - Net | 21389 | |
| Net Income Before Taxes | 2514 | Goodwill, Net | 475 | |
| Provision for Income Taxes | 552 | Intangibles, Net | 40 | |
| Net Income After Taxes | 1961 | Other Long Term Assets, Total | 504 | |
| Net Income Before Extra. Items | 1961 | Total Assets | 32084 | |
| Total Extraordinary Items | 7.2 | Accounts Payable | 7440 | |
| Net Income | 1969 | Accrued Expenses | 2354 | |
| Notes Payable/Short Term Debt | 0 | |||
| Current Port. of LT Debt/Capital Leases | 121 | |||
| Market Value Info (in thousands) | Other Current liabilities, Total | 951 | ||
| Shares Out | 500 | Total Current Liabilities | 10865 | |
| Market Cap | 40,000.00 | Long Term Debt | 7526 | |
| Capital Lease Obligations | 977 | |||
| Total Long Term Debt | 8504 | |||
| Total Debt | 8624 | |||
| Deferred Income Tax | 842 | |||
| Other Liabilities, Total | 2999 | |||
| Total Liabilities | 23210 | |||
| Common Stock, Total | 32 | |||
| Additional Paid-In Capital | 4670 | |||
| Retained Earnings (Accumulated Deficit) | 4825 | |||
| Other Equity, Total | -651 | |||
| Total Equity | 8875 | |||
| Total Liabilities & Shareholders' Equity | 32084 |
Equity Multiplier
Accounts Receivable Days
ROE (in decimal form, not %)
EPS
P/E
Fixed Asset Turnover:
Operating Margin (in decimal form, not %)
Inventory Turnover
Interest Coverage Ratio (TIE)
Quick Ratio
In: Finance
According to ISA 520, analytical procedure means “the evaluation of financial information through the analysis of plausible relationships among both financial and non-financial data. It includes the investigation of identified fluctuations, or relationships that are inconsistent with other relevant information, or that differ from expected values by significant amount”. Corona virus or the COVID19 pandemic has affected most, if not all, of the business industries not only in Oman but all over the world. This is due to the imposed “lockdown” of areas affected by the pandemic to not spread the disease and worsen the situation. One of the industries that are considered affected by this pandemic is the Entertainment Industry. Based on the news, countries have been preventing mass gatherings of people. This includes stopping the operations of cinemas and gaming centers. Also, because employees are getting sick or afraid to contract the virus, only few are able to report to work. Assume that you are a member of an audit team assigned to analyze the effects of the corona virus (COVID19) pandemic on businesses. Answer the following questions related to this business sector: Entertainment Industry (example VOX Cinema) Required: Answer the following questions on analytical procedures: 1. In your opinion, will this business sector be favorably or unfavorably affected by the COVID19 pandemic? Explain your answer focusing on the financial impact. 2. How could the auditor analyze the financial impact to the industry given? Give at least two suitable examples of analysis that you can use to analyze the impact of the pandemic to a specific business belonging to the entertainment industry, like the VOX Cinema.
In: Accounting
Number of Pages Printed
2120 1953 2289 1897 2187 2283 2321 1956 2551 2423 2034 2221 2507 2110 2043 2476 2067 2119 1889 1734 2501 2333 2139 1998
Construct a 95% confidence interval to estimate the population mean of printable page numbers from the new printer and PLEASE interpret the result.
d) Repeat the same questions as (c) with 90% confidence level
In: Statistics and Probability
In: Economics
As consumers, we continually interact and consume brands to satisfy our functional and emotional needs. Applying the theory covered as part of this module to your own experience as consumers,
In: Operations Management
4. Understanding the facts/background of a transaction: Caesars Entertainment is in negotiations to purchase a new hotel. You are an analyst in the accounting policy department and are in the first step of the research process (understanding the facts/background of the transaction). Identify three resources you could consult to gather additional background/precedent for this issue.
In: Accounting
(AI Technologies & Intelligent Agents) Write one page or two pages with examples/case studies to briefly discuss your perspectives for the following questions:
Which of these industries will be most affected by AI in the next 5 years?
In: Computer Science
A bank offers a CD that pays a simple interest rate of 9.5 %. How much must you put in this CD now in order to have $2500 for a home-entertainment center in 3 years.
The present value that must be invested to get $2500 after 3 year to get an interest rate of 9.5% is?
In: Finance
Assuming a 21 percent marginal tax rate, compute the after-tax
cost of the following business expenses:
In: Finance