he inventory of Sandhill Company on December 31, 2020, consists
of the following items.
|
Part |
Quantity |
Cost per |
Net Realizable |
||||||
|---|---|---|---|---|---|---|---|---|---|
| A419 | 4,600 | $11 | $19 | ||||||
| A435 | 3,910 | 8 | 6 | ||||||
| A545 | 9,292 | 7 | 11 | ||||||
| A615 | 6,900 | 10 | 7 | ||||||
| A721 | 10,120 | 9 | 10 | ||||||
| A885 | 12,880 | 15 | 18 | ||||||
| A999 | a | 8,464 | 6 | 1 | |||||
a Part No. A999 is obsolete and has a realizable value
of $1 each as scrap.
(a) Determine the inventory as of December 31,
2020, by the LCNRV method, applying this method to each
item.
| Inventory as of December 31, 2020 | $enter the dollar amount of inventory at December 31, 2017 |
(b) Determine the inventory by the LCNRV method,
applying the method to the total of the inventory.
| Inventory as of December 31, 2020 | $enter the dollar amount of inventory at December 31, 2017 |
In: Accounting
The DeVille Company
reported pretax accounting income on its income statement as
follows:
| 2018 | $ | 365,000 | |
| 2019 | 285,000 | ||
| 2020 | 355,000 | ||
| 2021 | 395,000 | ||
Included in the income of 2018 was an installment sale of property
in the amount of $34,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected
on the installment sale was $13,600 in 2019, $17,000 in 2020, and
$3,400 in 2021.
Included in the 2020 income was $12,000 interest from investments
in municipal bonds.
The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new
tax legislation was passed reducing the tax rate to 25% for the
years 2020 and beyond.
Required:
Prepare the year-end journal entries to record income taxes for the
years 2018–2021. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)
In: Accounting
The DeVille Company reported pretax accounting income on its
income statement as follows:
| 2018 | $ | 410,000 | |
| 2019 | 330,000 | ||
| 2020 | 400,000 | ||
| 2021 | 440,000 | ||
Included in the income of 2018 was an installment sale of property
in the amount of $54,000. However, for tax purposes, DeVille
reported the income in the year cash was collected. Cash collected
on the installment sale was $21,600 in 2019, $27,000 in 2020, and
$5,400 in 2021.
Included in the 2020 income was $22,000 interest from investments
in municipal bonds.
The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new
tax legislation was passed reducing the tax rate to 25% for the
years 2020 and beyond.
Required:
Prepare the year-end journal entries to record income taxes for the
years 2018–2021. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.
In: Accounting
Cho Co. includes one coupon in each box of cereal it sells. In return for 5 coupons and $1, customers receive a Cho branded spoon that the company purchases for $2 each. Cho's experience indicates that 40 percent of the coupons will be redeemed. During 2019, 200,000 boxes of cereal were sold, 20,000 spoons were purchased, and 55,000 coupons were redeemed. During 2020, 280,000 boxes of cereal were sold, 25,000 spoons were purchased, and 90,000 coupons were redeemed. The premium payable account balance at the beginning of the 2019 fiscal year was $8,000. Determine the premium expense reported in the income statement and the ending premium liability balance reported in the balance sheet for 2019 and 2020.
2019 Premium Expense: $
2019 Ending Premium Liability: $
2020 Premium Expense: $
2020 Ending Premium Liability: $
In: Accounting
During 2018, Pina Inc., a furniture store, issued two different series of bonds, details of which follow:
First issue: 670 $100, 10% bonds, at par, each convertible into 6 common shares.
Second issue: 390 $100, 7% bonds, at par, each convertible into 3 common shares.
For the year ended December 31, 2020, the company had net income of $53,850. Throughout 2020, 2,500 common shares were outstanding; none of the bonds were converted or redeemed. The company’s tax rate was 19%. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).
1. Calculate basic earnings per share for the year ended December 31, 2020.
2. Calculate diluted earnings per share for the year ended December 31, 2020.
In: Accounting
| Discuss how the following affect Assets, Income, Liabilities, Common Stock and Retained Earnings on the end of 2019 financial statements (Increase by $x, Decreases by $x, or No Effect): |
| 1. In June 2019, $1000 of gift cards were sold. At the end of the year 2019, $200 has not been redeemed. |
| 2. On November 1st 2019, John paid $300 for a 12 month insurance policy, with it beginning on the same day, and he showed all of it as an expense. |
| 3. The water bill for November 2019 was $100 |
| 4. On December 1st 2019, a consulting contract was signed for work in 2020, with the work starting in January 2020, and gets paid $10000 March 1st 2020. |
| 5. A company pays employees on the first day of the month. This is for working the previous month. December 2019's salaries will be paid on Jan. 1st 2020 is $1200 |
In: Accounting
Blossom Company sells goods that cost $250,000 to Ayayai Company for $400,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $41,000. The fair value of the goods is $369,000. The goods were delivered on March 1, 2020. Installation is considered a separate performance obligation and was completed on June 18, 2020. Under the terms of the contract, Ayayai Company pays Blossom $250,000 upon delivery of the goods and the balance at the completion of the installation.
Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Blossom. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. 5,275.)
| Performance Obligation | When? | How much? | ||
|---|---|---|---|---|
|
Deliver goods |
choose a transaction date January 2, 2020March 1, 2020June 18, 2020 | $enter a dollar amount rounded to 0 decimal places | ||
|
Installation |
choose a transaction date January 2, 2020March 1, 2020June 18, 2020 | enter a dollar amount rounded to 0 decimal places | ||
|
Total |
$enter a total amount rounded to 0 decimal places |
eTextbook and Media
List of Accounts
Prepare the journal entries for Blossom on January 2, March 1, and June 18, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
|
Account Titles and Explanation |
Debit |
Credit |
||
|---|---|---|---|---|
|
choose a transaction date January 2, 2020June 18, 2020March 1, 2020 |
enter an account title |
enter a debit amount |
enter a credit amount |
|
|
enter an account title |
enter a debit amount |
enter a credit amount |
||
|
enter an account title to record sales |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record sales |
enter a debit amount |
enter a credit amount |
||
|
enter an account title to record sales |
enter a debit amount |
enter a credit amount |
||
| (To record sales) | ||||
|
choose a transaction date January 2, 2020June 18, 2020March 1, 2020 |
enter an account title to record cost of goods sold |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record cost of goods sold |
enter a debit amount |
enter a credit amount |
||
| (To record cost of goods sold) | ||||
|
choose a transaction date June 18, 2020January 2, 2020March 1, 2020 |
enter an account title |
enter a debit amount |
enter a credit amount |
|
|
enter an account title |
enter a debit amount |
enter a credit amount |
||
|
enter an account title |
enter a debit amount |
enter a credit amount |
In: Accounting
Two former roommates from college contact you about an opportunity to make big money. Their idea is to start a business to market a new video game system (the computer science major developed the software, the engineer created the hardware). They estimate it will take $5 million to $10 million to begin production, and they want to raise money by selling shares in the company to investors. They think their product is superior, and they are aware of the time factor. They want to get started as soon as possible. Your field of expertise is securities marketing.
Can the three of you just begin advertising for investors?
What steps must be followed to comply with the law?
How much time is needed before potential investors can be approached legally?
In: Accounting
Case Study: Greenly Insurance Company
Greenly has worked hard over the past year and has increased their marketing efforts to reach certain “untapped” demographics. Greenly has determined that it has been able to retain its Generation Y customers, who have established their own households. Greenly’s new survey of former customers has revealed that it is losing its Baby Boomer customers who like to shop for coverage based on price. One of the reasons most often cited for leaving is the inability to obtain quotes through Greenly’s Web site.
Create your own assumptions using the information presented to evaluate Greenly’s and recommend an action plan / strategies for growth.
In: Operations Management
A company is developing a new high performance wax for cross country ski racing. In order to justify the price marketing wants, the wax needs to be very fast. Specifically, the mean time to finish their standard test course should be less than
5555
seconds for a former Olympic champion. To test it, the champion will ski the course 8 times. Complete parts a and b below.
a) The champion's times (selected at random) are
59.259.2,
63.563.5,
51.851.8,
53.153.1,
46.746.7,
45.145.1,
52.152.1,
and
40.240.2
seconds to complete the test course. Should they market the wax? Assume the assumptions and conditions for appropriate hypothesis testing are met for the sample. Assume
alphaαequals=0.05.
Choose the correct null and alternative hypotheses below.
In: Statistics and Probability