) Jaeco Corporation asks you to review its December 31, 2020 inventory values and prepare the adjustments that are needed to the books. The following information is given to you: • 1. Jaeco uses the periodic method of recording inventory. A physical count reveals $234,890 of inventory on hand at December 31, 2020, although the books have not yet been adjusted to reflect the ending inventory. • 2. Not included in the physical count of inventory is $10,420 of merchandise purchased on December 15 from Shamsi. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31. • 3. Included in inventory is merchandise sold to Sage on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $12,800 on December 31. The merchandise cost $7,350, and Sage received it on January 3. • 4. Included in the count of inventory was merchandise received from Dutton on December 31 with an invoice price of $15,630. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded. • 5. Not included in inventory is $8,540 of merchandise purchased from Growler Industries. This merchandise was received on December 31, after the inventory had been counted. The invoice was received and recorded on December 30. • 6. Included in inventory was $10,438 of inventory held by Jaeco on consignment from Jackel Industries. • 7. Included in inventory was merchandise sold to Kemp, f.o.b. shipping point. This merchandise was shipped after it was counted, on December 31. The invoice was prepared and recorded as a sale for $18,900 on December 31. The cost of this merchandise was $11,520, and Kemp received the merchandise on January 5. • 8. Excluded from inventory was a carton labelled “Please accept for credit.” This carton contained merchandise costing $1,500, which had been sold to a customer for $2,600. No entry had been made to the books to record the return, but none of the returned merchandise seemed damaged. • 9. Jaeco sold $12,500 of inventory to Simply Corp. for $21,000 on account on December 15, 2020. These items were shipped f.o.b. shipping point. The terms of sale indicate that Simply Corp. will be permitted to return an unlimited amount until May 15, 2021. Jaeco has never provided unlimited returns in the past and is not able to estimate the amount of any potential returns that Simply may make. Instructions a. Determine the proper inventory balance for Jaeco Corporation at December 31, 2020. b. Prepare any adjusting/correcting entries that are needed at December 31, 2020. Assume the books have not been closed and that Jaeco follows IFRS. c. Assume instead that Jaeco follows ASPE. Prepare any adjusting/correcting entries at December 31, 2020, that are needed.
In: Accounting
PLEASE ANSWER AND MAKE A SOLUTION.
1. The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows:
Preference share capital, 20,000 shares, $20 par =
$400,000
Share premium - preference = 160,000
Ordinary share capital, 50,000 shares, $80 par = 4,000,000
Share premium – ordinary = 600,000
Retained earnings = 360,000
During the year ending December 31, 2010, the following summarizes the transactions affecting the shareholders’ equity
April 30 - 1,000 preference shares were retired at $25 per share.
June 15 - 2,000 treasury shares, ordinary, were purchased at $85 per share.
June 30 - A two-for-one ordinary share split was declared.
July 31 - 800 treasury shares were reissued at $50 per share.
Dec. 31 – Profit for 2010 was $300,000.
What was the total share premium on December 31, 2020?
a. $760,000 c. $755,000
b. $766,000 d.
$761,000
2. Black Corporation was organized on January 3, 2020. Black was authorized to issue 50,000 ordinary shares with a par value of P$10 per share. On January 4, Black issued 30,000 ordinary shares at $25 per share. On July 15, Black issued an additional 10,000 shares at $20 per share. Black reported income of $33,000 during 2020. In addition, Black declared a dividend of $0.50 per share on December 31, 2020. The amount reported on Black Corporation's December 31, 2020, balance sheet as shareholders' equity was
a. $400,000 c. $550,000
b. $950,000 d. $963,000
3. White Corporation was incorporated on June 1, 2020 with an authorized 200,000, no-par, ordinary shares, stated value $10 and 10,000, 9% par value $30, preference shares. Transactions affecting company’s equity as of July 31, 2020 were as follows:
June 1 - 50,000 ordinary shares were issued at $10.
June 5 - Assets with a total appraised value of $600,000 were acquired in exchange for 50,000 ordinary shares.
June 15 - Subscriptions were received for 100,000 ordinary shares at $15 and for 5,000 preference shares at $35.
June 25 - Payments in full for the ordinary and preference shares subscribed June 15 were received and the corresponding shares were issued.
The total shareholders’ equity as of July 31, 2020 is
a. $2,875,000 c. $2,750,000
b. $2,300,000 d.
$2,775,000
In: Accounting
Please discuss if innovation is still the motor of industry or everything is invented already.
Should companies invest in innovation which is applicable worldwide, or just in the influence area?
Has innovation returns in a short time?
In: Economics
In: Operations Management
Analysis and Interpretation of Profitability
Balance sheets and income statements for 3M Company follow.
| Consolidated Statements of Income | |||
|---|---|---|---|
| Years ended December 31 ($ millions) | 2010 | 2009 | 2008 |
| Net sales | $26,662 | $23,123 | $25,269 |
| Operating expenses | |||
| Cost of sales | 13,831 | 12,109 | 13,379 |
| Selling, general and administrative expenses | 5,479 | 4,907 | 5,245 |
| Research, development and related expenses | 1,434 | 1,293 | 1,404 |
| Loss/(gain) from sale of business | -- | -- | 23 |
| Total operating expenses | 20,744 | 18,309 | 20,051 |
| Operating income | 5,918 | 4,814 | 5,218 |
| Interest expenses and income | |||
| Interest expense | 201 | 219 | 215 |
| Interest income | (38) | (37) | (105) |
| Total interest expense | 163 | 182 | 110 |
| Income before income taxes | 5,755 | 4,632 | 5,108 |
| Provision for income taxes | 1,592 | 1,388 | 1,588 |
| Net income including noncontrolling interest | 4,163 | 3,244 | 3,520 |
| Less: Net income attributable to noncontrolling interest | 78 | 51 | 60 |
| Net income | $ 4,085 | $ 3,193 | $ 3,460 |
| Consolidated Balance Sheets | ||
|---|---|---|
| ($ millions) | 2010 | 2009 |
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $ 3,377 | $ 3,040 |
| Marketable securities-current | 1,101 | 744 |
| Accounts receivable-net | 3,615 | 3,250 |
| Inventories | ||
| Finished goods | 1,476 | 1,255 |
| Work in process | 950 | 815 |
| Raw materials and supplies | 729 | 569 |
| Total inventories | 3,155 | 2,639 |
| Other current assets | 967 | 1,122 |
| Total current assets | 12,215 | 10,795 |
| Marketable securities-noncurrent | 540 | 825 |
| Investments | 146 | 103 |
| Property, plant and equipment | 20,253 | 19,440 |
| Less: Accumulated depreciation | (12,974) | (12,440) |
| Property, plant and equipment-net | 7,279 | 7,000 |
| Goodwill | 6,820 | 5,832 |
| Intangible assets-net | 1,820 | 1,342 |
| Prepaid pension benefits | 74 | 78 |
| Other assets | 1,262 | 1,275 |
| Total assets | $ 30,156 | $ 27,250 |
| Liabilities | ||
| Current liabilities | ||
| Short-term borrowings and current portion of long-term debt | $ 1,269 | $ 613 |
| Accounts payable | 1,662 | 1,453 |
| Accrued payroll | 778 | 680 |
| Accrued income taxes | 358 | 252 |
| Other current liabilities | 2,022 | 1,899 |
| Total current liabilities | 6,089 | 4,897 |
| Long-term debt | 4,183 | 5,097 |
| Pension and postretirement benefits | 2,013 | 2,227 |
| Other liabilities | 1,854 | 1,727 |
| Total liabilities | 14,139 | 13,948 |
| Equity | ||
| 3M Company shareholders' equity: Common stock, par value $.01 per share; | 9 | 9 |
| Additional paid-in capital | 3,468 | 3,153 |
| Retained earnings | 25,995 | 23,753 |
| Treasury stock | (10,266) | (10,397) |
| Accumulated other comprehensive income (loss) | (3,543) | (3,754) |
| Total 3M Company shareholders' equity | 15,663 | 12,764 |
| Noncontrolling interest | 354 | 538 |
| Total equity | 16,017 | 13,302 |
| Total liabilities and equity | $ 30,156 | $ 27,250 |
(a) Compute net operating profit after tax (NOPAT) for 2010. Assume
that the combined federal and statutory rate is: 37.0% (Round your
answer to the nearest whole number.)
2010 NOPAT =4266
($ millions)
(b) Compute net operating assets (NOA) for 2010 and 2009. Treat
noncurrent Investments as a nonoperating item.
2010 NOA =Answer
($ millions)
2009 NOA =Answer
($ millions)
(c) Compute 3M's RNOA, net operating profit margin (NOPM) and net
operating asset turnover (NOAT) for 2010. (Round your answers to
two decimal places. Do not round until your final answer. Do not
use NOPM x NOAT to calculate RNOA.)
2010 RNOA =Answer
%
2010 NOPM =16%
%
2010 NOAT =
(d) Compute net nonoperating obligations (NNO) for 2010 and
2009.
2010 NNO =Answer
($ millions)
2009 NNO =Answer
($ millions)
(e) Compute return on equity (ROE) for 2010. (Round your answers to
two decimal places. Do not round until your final answer.)
2010 ROE =28.74
%
(f) What is the nonoperating return component of ROE for 2010?
(Round your answers to two decimal places.)
Hint: Use your prior rounded answers to compute
this answer.
2010 nonoperating return =
In: Accounting
Question 2
You are an expert in sustainable innovation and tasked to give a report on the factors of innovation. Briefly, analyseand discuss the factors of innovation.
In your report, analyse and discuss the following areas, you may also search the internet for information. Factors of innovation may include personality, motivation, cognition, structure, leadership traits, tasks characteristics, culture, strategy and resources. (25)
In: Psychology
Clearly explain three theories of collective behavior. Provide one clear example of each of the three theories
In: Psychology
Identify and describe the major tactics used by unions and management when collective bargaining efforts break down.
In: Economics
The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.54 million. Interest expense is expected to remain unchanged at $40,000, and the firm plans to pay $69,000 in cash dividends during 2020.Metroline Manufacturing's income statement for the year ended December 31,2019, is given, along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components.
a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31,2020.
b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31,2020.
c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2020 income? Explain why.
Metroline Manufacturing
Income Statement
for the Year Ended December 31, 2012
Sales revenue $1,394,000
Less: Cost of goods sold 901,000
Gross profits $493,000
Less: Operating expenses 121,000
Operating profits $372,000
Less: Interest expense 40,000
BREAKDOWN OF COSTS AND EXPENSES
Cost of goods sold
Fixed cost $217,000
Variable cost 684,000
Total cost $901,000
Operating expenses
Fixed expenses $39,000
Variable expenses 82,000
Total expenses $121,000
Net profits before taxes $332,000
Less: Taxes (rate = 40%) 132,800
Net profits after taxes $199,200
Less: Cash dividends 66,000
To retained earnings $133,200
Pro Forma Income Statement
Metroline Manufacturing, Inc.
for the Year Ended December 31, 2020
(percent-of-sales method)
Sales $
Less: Cost of goods sold %
Gross profits $
Less: Operating expenses %
Operating profits $
Less: Interest expense
Net profits before taxes $
Less: Taxes
Net profits after taxes $
Less: Cash dividends
To retained earnings $
In: Accounting
Burr Industries has the following events transpire in June of 2020: Event Details Buy Inventory Buy 6,000 units of inventory for $6/unit on credit. Sell Inventory Sell 4,765 units of inventory for $44/unit on credit. Close Books Books are closed for the month of June.
Burr Industries has the following events transpire in June of 2020:
|
Event |
Details |
|
Buy Inventory |
Buy 6,000 units of inventory for $6/unit on credit. |
|
Sell Inventory |
Sell 4,765 units of inventory for $44/unit on credit. |
|
Close Books |
Books are closed for the month of June. |
Additional Info: Inventory is always purchased for $6/unit. Beginning inventory is 1,840 units.
Assuming Burr uses the Periodic Inventory System, please provide the necessary journal entries. If no entry is required, please put “N/A”
You may round your answers to the nearest dollar.
(A) Please provide the journal entry for the purchase of inventory:
(B) Please provide the journal entry for the sale of inventory:
(C) Please provide the journal entry which Burr would record when closing its books/the adjusting entry relating to inventory:
In: Accounting