Wildhorse Company began operations on January 2, 2016. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual Hourly Wage Rate Vacation Days Used by Each Employee Sick Days Used by Each Employee 2016 2017 2016 2017 2016 2017 $7 $8 0 10 5 6 Wildhorse Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned.Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1-Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 2-Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016 and 2017.

A company began operations on January 2, 2016. A company established a policy whereby it would provide paid vacation days (10 days each year) as long as the employee worked for the company in the preceding year (employees can use vacation days earned in. The policy further provided that employees will be paid a maximum of 5 days each year for absences due to illness ( employees can use days in the year in which they are earned). Any unused "sick days" would accumulate. A company employs 10 individuals in 2016 and 2017. The company has a 5 days work week and requires 8 hours per work day. A company accrues vacation days and sick days based upon wages in effect during the period in which the employees earn the compensated absences (vacation and sick days). The following information provides information about vacation days and sick days taken by A company employees: 2016 Actual Hourly Wage Rate $12.00. 2017 Actual Hourly Wage Rate $12.50. 2016 Vacation Days Used by Each Employee is 0. 2017 Vacation Days Used by Each Employee is 7. 2016 Sick Days Used by Each Employee is 5. 2017 Sick Days Used by Each Employee is 5. a) Prepare journal entries to record transactions related tk compensated absences during 2016 and 2017. b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016 and 2017. $

Titan Football Manufacturing had the following operating results for 2016: sales = $19,850; cost of goods sold = $13,910; depreciation expense = $2,300; interest expense = $310; dividends paid = $620. At the beginning of the year, net fixed assets were $17,300, current assets were $3,010, and current liabilities were $2,000. At the end of the year, net fixed assets were $20,540, current assets were $3,420, and current liabilities were $2,090. The tax rate for 2016 was 30 percent.

a. What is net income for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Net income : $

b. What is the operating cash flow for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Operating cash flow : $

c. What is the cash flow from assets for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow from assets : $

Assume no new debt was issued during the year.

d. What is the cash flow to creditors for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow to creditors : $

e. What is the cash flow to stockholders for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow to stockholders : $

Titan Football Manufacturing had the following operating results for 2016: sales = $19,930; cost of goods sold = $13,830; depreciation expense = $2,220; interest expense = $270; dividends paid = $700. At the beginning of the year, net fixed assets were $21,300, current assets were $3,090, and current liabilities were $1,920. At the end of the year, net fixed assets were $25,340, current assets were $3,580, and current liabilities were $2,010. The tax rate for 2016 was 30 percent.

a. What is net income for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Net income             $

b. What is the operating cash flow for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Operating cash flow             $

c. What is the cash flow from assets for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow from assets            $

Assume no new debt was issued during the year.

d. What is the cash flow to creditors for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow to creditors            $

e. What is the cash flow to stockholders for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow to stockholders            $

Titan Football Manufacturing had the following operating results for 2016: sales = $19,920; cost of goods sold = $13,840; depreciation expense = $2,230; interest expense = $275; dividends paid = $690. At the beginning of the year, net fixed assets were $20,800, current assets were $3,080, and current liabilities were $1,930. At the end of the year, net fixed assets were $24,740, current assets were $3,560, and current liabilities were $2,020. The tax rate for 2016 was 40 percent.

a. What is net income for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Net income             $

b. What is the operating cash flow for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Operating cash flow             $

c. What is the cash flow from assets for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow from assets            $

Assume no new debt was issued during the year.

d. What is the cash flow to creditors for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow to creditors            $

e. What is the cash flow to stockholders for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow to stockholders

Bill and Alice Savage, husband and wife and both age 42, have the following transactions during 2016:

a. They sold their old residence on January 28, 2016, for $380,000. The basis of their old residence, purchased in 2006, was $70,000. The selling expenses were $20,000. On May 17, 2016, they purchased and moved into another residence costing $150,000.

b. On April 28, 2016, they sold for $8,000 stock that Alice had received as a gift from her mother, who had purchased the stock for $10,000 in 2011. Her mother gave Alice the stock on November 15, 2015, when the fair market value was $9,400.

c. On May 24, 2016, Bill sold for $21,000 stock inherited from his father. His father died on June 14, 2015, when the fair market value of the stock was $9,000. Bill's father paid $7,000 for the stock in 2009.

d. On August 11, 2016, they sold a personal automobile for $8,000; basis of the automobile was $20,000 and it was purchased in 2013.

e. They had a carryover and other stock transactions as follows:

Bill had a salary of $40,000 and Alice had a salary of $28,000. They have no children. They paid state income taxes of $3,200, sales tax of $400, federal income taxes of $15,000, and property taxes of $1,800. In addition, they contributed $5,600 to their church and paid $4,000 interest on their home mortgage.

Compute bill and Alice's taxable income for 2016.

Perkasa Berhad (PB) was formed on 1 January 2016. Additional data for the year follow:

On 1 January 2016, PB issued no par common stock for RM500,000.

    Early in January, PB made the following cash payments:

1. For store fixtures, RM54,000

2. For merchandise inventory, RM270,000

3. For rent expense on a store building, RM11,000

Later in the year, PB purchased merchandise inventory on account for RM244,000. Before year-end, PB paid RM144,000 of this account payable.

During 2016, PB sold 2,300 units of merchandise inventory for RM225 each. Before year-end, the company collected 90% of this amount. Cost of goods sold for the year was RM320,000 and ending merchandise inventory totaled RM194,000.

The store employs three people. The combined annual payroll is RM88,000, of which PB still owes RM6,000 at year-end.

At the end of the year, PB paid income tax of RM20,000. There are no income taxes payable.

    Late in 2016, PB paid cash dividends of RM35,000.

For store fixtures, PB uses the straight-line depreciation method, over five years, with zero residual value.

1. Prepare PB’s income statement for the year ended 31 December 2016. Use the single-step format, with all revenues and all expenses listed together.

2. Prepare PB’s classified balance sheet at 31 December 2016.

3. Prepare PB’s statement of cash flows using the indirect method for the year ended 31 December 2016.

Selected transactions of Divad Corporation during 2016 follow.

QUESTION 8

If a company overstates its ending inventory balance for 2017 by $10,000, and overstates its ending inventory balance for 2016 by $5,000 what are the effects on its net income for 2017 and 2016?

1 points   

QUESTION 9

Which of these is not an acceptable inventory costing method under IFRS?

1 points   

QUESTION 10

A company lost all but $50 of its inventory in a fire on Feb. 22, 2017. The company’s financial records are listed below:

2015                       2016                   

Net Sales                     10,000                      12,300                   

COGS                           6,500                        7,995                   

       Gross Profit                  3,500                        4,305                   

       Operating Exp.             2,000                        2,500                   

       Net Income                   1,500                        1,805                   

              For 2017 the company’s records showed beginning inventory of $350, purchases of $500 and purchase returns of $90.  

        Net sales for the first part of the year totaled $1,000.

      Determine the amount of inventory destroyed in the fire. (You must first calculate the company’s historical gross profit percentage.)

On January? 1, 2016?, Fast issued its common stock for $ 575, 000. Early in? January, Fast made the following cash? payments:

a. $ 200,000 for equipment

b. $ 324,000 for inventory ?(9 cars at $ 36, 000 ?each)

c. $ 24, 000 for 2016 rent on a store building

In? February, Fast purchased four cars for inventory on account. Cost of this inventory was $ 192,000 ?($ 48,000 ?each). Before? year-end, Fast paid $ 115,200 of this debt. The company uses the? first-in, first-out? (FIFO) method to account for inventory. During 2016?, Fast sold 10 autos for a total of $ 650 ,000. Before? year-end, it had collected 50?% of this amount. The business employs six people. The combined annual payroll is $ 150,000?, of which Fast owes $ 6, 000 at? year-end. At the end of the? year, Fast paid income tax of $ 13,000. Late in 2016?, Fast declared and paid cash dividends of $ 29,000. For? equipment, Fast uses the? straight-line depreciation? method, over five? years, with zero residual value.