Dave's Lighting Inc. produces lamps for the construction industry. During the year, the company incurred the following costs:

Inventories for the year were:

Required:

Prepare a statement of Cost of Goods Sold.

Jack’s Construction Co. has 80,000 bonds outstanding with annual coupon rate of 8.5% selling at par value. The bonds have 10 years to maturity. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The risk free rate 4 percent and the market risk premium is 8 percent. Jack’s tax rate is 35 percent. What is Jack’s weighted average cost of capital?

You are trying to decide if you should build a factory or simply leave the money in

the bank collecting interest. It will cost $10M to build the factory and two years of

time. Assume the factory will run for 25 years after that and generate $1.5M per

year in profit each year. Assume a discount rate of 4%. Also assume that all of the

$10M building costs are spent on day-one of construction. Should you build the

factory or leave the money in the bank at a 3% interest rate?

1) why is the difference between an avoidable delay and an unavoidable delay important to a contractor? 2) What is the difference between a calender day and a working day? 3) Why would it be necessary and desirable to perform resource leveling for a construction schedule? 4) In which parts of a schedule should a contractor share the most detail with an owner? 5) As a contractor, what concern would you have regard cost and productivity if an owner directed you to use overtime to catch up on a scehdule?

Casting Crown Construction entered into the following transactions during a recent year:

Required:
1-a. Analyze the accounting equation effects. (Enter any decreases to accounts with a minus sign.)

1-b. Prepare the journal entries for each of the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization that Casting Crown Construction should report for the quarter that ended March 31. The equipment is depreciated using the double-declining-balance method with a useful life of five years and $44,000 residual value.

3. Prepare a journal entry to record the depreciation and amortization calculated in requirement 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4. Not available in Connect.

On January 1, 2021, the company obtained a $3 million loan with a 10% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows:

On January 1, 2021, the company obtained a $3 million construction loan with a 10% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2021 and 2022. The company’s other interest-bearing debt included two long-term notes of $4,400,000 and $6,400,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company’s fiscal year-end is December 31.

Required:
1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the weighted-average method.
2. What is the total cost of the building?
3. Calculate the amount of interest expense that will appear in the 2021 and 2022 income statements.

On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019.

Expenditures on the project were as follows:

On January 1, 2018, the company obtained a $3 million construction loan with a 10% interest rate. The loan was outstanding all of 2018 and 2019. The company’s other interest-bearing debt included two long-term notes of $4,000,000 and $6,000,000 with interest rates of 6% and 8%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company’s fiscal year-end is December 31.

Required:
1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method.
2. What is the total cost of the building?
3. Calculate the amount of interest expense that will appear in the 2018 and 2019 income statements.

Req 1 and 3

Req 2

Problem 5-3

The adjusted trial balance of Culver Company and other related information for the year 2017 are presented as follows.

Additional information:

Prepare a balance sheet as of December 31, 2017, so that all important information is fully disclosed. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Problem 5-3

The adjusted trial balance of Indigo Company and other related information for the year 2017 are presented as follows.

Additional information:

Prepare a balance sheet as of December 31, 2017, so that all important information is fully disclosed. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

A negatively charged rod is brought near an isolated metal ball. which of the sketches best illustrates the arrangement of charges on the ball?