Sheffield Corp. issued $6,498,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 9% effective annual interest. Sheffield Corp. closes its books annually on December 31. Complete the following amortization schedule for the dates indicated. Use the effective-interest method. (Round answers to 0 decimal places, e.g. 5,275.)

Date Cash Interest Expense Bond Discount Carrying Amount of Bonds October 1, 2020 $

April 1, 2021

October 1, 2021

SHOW LIST OF ACCOUNTS

Prepare the adjusting entry for December 31, 2021. Use the effective-interest method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 SHOW LIST OF ACCOUNTS

Compute the interest expense to be reported in the income statement for the year ended December 31, 2021. Interest expense $

1.

Ajax Enterprises had 220,000 shares of common stock issued and outstanding at December 31, 2025. Unexercised stock options to purchase 40,000 shares of common stock at $20 per share were outstanding at the beginning and end of 2026. The market price of Glendale's common stock was $25 per share during 2026. Net income for the year ended December 31, 2026, was $1,100,000. What should be Ajax's 2026 diluted earnings per common share, rounded to the nearest penny?

2.Ajax Corporation began 2024 with 100,000 common shares outstanding. On April 1, 2024 they issued 20,000 additional common shares. On August 1, 2024 they declared a 2 for 1 stock split. What is the weighted-average number of common shares for the year 2024?

The state legislature is deciding whether to increase, decrease or not change the the current tax rate for wastewater discharge. A third of the lawmakers are naturalists, a quarter of the lawmakers like the status quo the most but also receive lobby from the polluters, the remaining of lawmakers want to change current tax rate and they slightly prefer to lowering the tax rate

2. Following question 1, what will be the choice if the legislature implements Boda counts on the coting results? (the highest ranked choice receives a score of 3, then 2,1 )

Lower tax

Status quo

Raise tax

Not determined

3. Following question 2, what will be the choice of policy if the naturalists manipulate their preference in Boda counts

Lower tax

Status quo

Raise tax

Not determined

4. Following question 1, what will likely be the choice policy of the lobby is now allowed

Lower tax

Status quo

Raise tax

Not determined

5. Following question 1, what will likely be the choice policy if the legislature first vote on whether or not to change the tax rate, then vote for whether to increase or decrease the tax rate.

Lower tax

Status quo

Raise tax

Not determined

6. Following question 1, what will likely be the choice policy if the legislature first vote on whether to increase or decrease the tax rate, then vote for whether or not to change the tax rate?

Lower tax

Status quo

Raise tax

Not determined

A fund purchased an office block nine months ago for RM5 million. It will spend a further RM900,000 on refurbishment in two months’ time.

A company has agreed to occupy the office block six months from now. The lease agreement states that the company will rent the office block for fifteen years and will then purchase the property at the end of the fifteen year rental period for RM6 million. It is further agreed that rents will be paid at the beginning of each quarter and will be increased every three years at the rate of 4% per annum. The initial rent has been set at RM200,000 per quarter with the first rental payment due immediately on the date of occupation.

Calculate, as at the date of purchase of the office block, the net present value of the project to the fund assuming an effective rate of interest of 8% per annum.

A fund purchased an office block nine months ago for RM5 million. It will spend a further RM900,000 on refurbishment in two months’ time. A company has agreed to occupy the office block six months from now. The lease agreement states that the company will rent the office block for fifteen years and will then purchase the property at the end of the fifteen year rental period for RM6 million. It is further agreed that rents will be paid at the beginning of each quarter and will be increased every three years at the rate of 4% per annum. The initial rent has been set at RM200,000 per quarter with the first rental payment due immediately on the date of occupation. Calculate, as at the date of purchase of the office block, the net present value of the project to the fund assuming an effective rate of interest of 8% per annum.  

Bandar Industries manufactures sporting equipment. One of the company’s products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,100 helmets, using 2,263 kilograms of plastic. The plastic cost the company $19,462.

According to the standard cost card, each helmet should require 0.66 kilograms of plastic, at a cost of $9.00 per kilogram.

Required:

1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets?

2. What is the standard materials cost allowed (SQ × SP) to make 3,100 helmets?

3. What is the materials spending variance?

4. What is the materials price variance and the materials quantity variance?

(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)

ACTIVITY BASED BUDGETING

Fauji Fertilizer Ltd. manufactures Nitro-phosphorus Fertilizer.

Sales are seasonal due to different crops. The expected pattern of sales for the next year (2021) is as follows:

Quarter 1st 2nd 3rd 4th Year

Sales in tons 500 1,500 2,000 1,000 5,000

• Each ton sells for Rs.25,000. All sales are on account, and Fauji’s experience with cash collections is that 55% of each quarter’s sales are collected during the same quarter as the sale. The remaining 45% of sales is collected in the quarter after the sale. Fauji experiences negligible bad debts, and so this is ignored in the budgeting process.

• Sales in the fourth quarter of 2020 are Rs25,000,000 (1000 tons).

• Fauji desires to have 10% of the following quarter’s sales needs in finished-goods inventory at the end of each quarter. (On December 31, 2020, Fauji expects to have 80 tons fertilizer in inventory.)

• Each ton Fertilizer requires two tons of raw material. Fauji desires to have 10% of the next quarter’s raw material in inventory at the end of each quarter. (On December 31, 2020, Fauji expects to have 105 tons of raw material in inventory.)

• The raw material price is Rs.5,000 per ton. The company buys its raw material on account and pays 65% of the resulting accounts payable during the quarter of the purchase. The remaining 35% is paid during the following quarter. (The raw-material purchases in the fourth quarter of 2020 are expected to be Rs.10,000,000.)

• Each ton of fertilizer requires 5 labor hours, whereas one labor hour costs Rs.200.

• Manufacturing-Overhead estimates for the year 2020 are as follows

Quarter 1st 2nd 3rd 4th Year

Unit-level costs:

Indirect material 24,000 72,000 96,000 48,000 240,000 Utilities 5,000 15,000 20,000       10,000        50,000

Batch-level costs:

Production runs 10 30 40 20 100

Setup 4,800 14,400 19,200 9,600 48,000 Purchasing 6,000 18,000 24,000 12,000 60,000

Quality control 6,000 18,000 24,000      12,000        60,000

Product-level costs:

Chemical engineering 10,000 10,000 10,000 10,000 40,000

Facility- and general-operations-level costs:

Supervisory salaries 100,000 100,000 100,000 100,000 400,000 Insurance 50,000 50,000 50,000 50,000 200,000 Maintenance 50,000 50,000 50,000 50,000 200,000 Utilities 80,000 80,000 80,000 80,000 320,000 Depreciation 200,000 200,000 200,000 200,000      800,000

• Selling, General & Administrative Expense estimates for the year 2020 are as follows

Quarter 1st 2nd 3rd 4th Year

Unit-level expenses:

Sales Commission 15,000 45,000 60,000 30,500 150,000

Customer-level expenses:

Sales Salaries 90,000 270,000 360,000 180,000 900,000

Operator Salaries 50,000 150,000 200,000 100,000 600,000

Facilities and General Operations Expenses:

Packaging Design 19,200 19,200 19,200 19,200 76,800

Facility- and general-operations-level costs:

Manager salaries 152,500 152,500 152,500 152,500 610,000 Advertising 100,000 100,000 100,000 100,000 400,000

Admin. Salaries 147,500 147,500 147,500 147,500 590,000

• Following is Investing and Financing estimate for the year 2020 are as follows

Quarter 1st 2nd 3rd 4th Year

Bank Loan (12%) 100,000,000

Loan Repayment 25,000,000 25,000,000 25,000,000 25,000,000 100,000,000

Plant Addition 20,000,000 50,000,000 12,000,000 5,000,000 87,000,000

Assuming same opening and ending balance in WIP, prepare all the budget schedules for 2021 except Balance Sheet (12 schedules). Include a column for each quarter, and for the year. This project should be done in MS Excel. Best of Luck!

Camden Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks:

Required

A. October sales are estimated to be $125,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 8 percent per month. Prepare a sales budget.

B. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts.

C. The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month’s cost of goods sold. However, ending inventory of December is expected to be $6,000. Assume that all purchases are made on account. Prepare an inventory purchases budget.

The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month’s cost of goods sold. However, ending inventory of December is expected to be $6,000. Assume that all purchases are made on account. Prepare an inventory purchases budget.

D. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Prepare a cash payments budget for inventory purchases.

E. Budgeted selling and administrative expenses per month follow:

*The capital expenditures budget indicates that Camden will spend $82,000 on October 1 for store fixtures, which are expected to have a $10,000 salvage value and a three-year (36-month) useful life. Use this information to prepare a selling and administrative expenses budget.

F. Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses.

G. Camden borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $6,000 cash cushion. Prepare a cash budget.

H. Prepare a pro forma income statement for the quarter.

I. Prepare a pro forma balance sheet at the end of the quarter.

J. Prepare a pro forma statement of cash flows for the quarter.