Moon Star Company obtained two notes receivable during the year of 2019. The details of the notes are as follows:
October 3, 2019 Sold goods for $24,000 on account to a customer (Sun Company) and received 8% note. The note was due on October 18, 2019.
December 5, 2019 Received 13% note for $15,000 to replace account receivable from a customer (Strong Company). The note was due on January 5, 2020.
Instructions (35 points):
a. Compute maturity value of the note receivable received on October 3 (Show supporting calculations.)
b. Journalize the collection of the note which was due on October 18, 2019.
c. Journalize the adjusting entry at December 31, 2019 to record accrued interest.
d. Compute total interest revenue earned on the note receivable received on December 5, 2019 (Show supporting calculations.)
e. Journalize the collection of the note which was due on January 5, 2020.
In: Accounting
In: Accounting
In: Accounting
Danner Company expects to have a cash balance of $45,900 on
January 1, 2020. Relevant monthly budget data for the first 2
months of 2020 are as follows.
| Collections from customers: January $86,700, February $153,000. |
| Payments for direct materials: January $51,000, February $76,500. |
| Direct labor: January $30,600, February $45,900. Wages are paid in the month they are incurred. |
| Manufacturing overhead: January $21,420, February $25,500. These costs include depreciation of $1,530 per month. All other overhead costs are paid as incurred. |
| Selling and administrative expenses: January $15,300, February $20,400. These costs are exclusive of depreciation. They are paid as incurred. |
Sales of marketable securities in January are expected to realize
$12,240 in cash. Danner Company has a line of credit at a local
bank that enables it to borrow up to $25,500. The company wants to
maintain a minimum monthly cash balance of $20,400.
Prepare a cash budget for January and February.
In: Accounting
On May 3, 2020, Pharoah Company consigned 90 freezers, costing
$490 each, to Remmers Company. The cost of shipping the freezers
amounted to $850 and was paid by Pharoah Company. On December 30,
2020, a report was received from the consignee, indicating that 45
freezers had been sold for $730 each. Remittance was made by the
consignee for the amount due after deducting a commission of 6%,
advertising of $200, and total installation costs of $310 on the
freezers sold.
(Round answers to 0 decimal places, e.g.
5,275.)
(a) Compute the inventory value of the units
unsold in the hands of the consignee.
| Inventory value |
$enter the inventory value in dollars |
(b) Compute the profit for the consignor for the
units sold.
| Profit on consignment sales |
$enter the profit on consignment sales in dollars |
(c) Compute the amount of cash that will be
remitted by the consignee.
| Remittance from consignee |
$enter the amount of cash that will be remitted by the consignee rounded to 0 decimal places |
In: Accounting
Martin Company expects to have a cash balance of $135,100 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows:
| ● | Collections from customers: January $249,800, February $442,100. | |
| ● | Payments for direct materials: January $156,600, February $246,700 | |
| ● | Direct labor: January $91,700, February $136,600. Wages are paid in the month they are incurred. | |
| ● | Manufacturing overhead: January $61,700, February $75,200. These costs include depreciation of $4,900 per month. All other overhead costs are paid as incurred. | |
| ● | Selling and administrative expenses: January $44,600, February $59,300. These costs are exclusive of depreciation. They are paid as incurred. | |
| ● | Sales of marketable securities in January are expected to realize $35,200 in cash. Martin Company has a line of credit at the local bank that enables it to borrow up to $74,700. The company wants to maintain a minimum monthly cash balance of $59,300. |
(a)
Prepare a cash budget for January and February.
In: Accounting
Question 1 Tap Sdn Bhd bought an asset on 5 April 2017 at a cost of RM180,000. The asset had an expected useful life of 10 years and an expected residual value of RM20,000. The company applies straight-line depreciation to this category of non-current assets. It also charges a full year depreciation in the year of acquisition and no depreciation in the year of disposal. Its financial year ends on 31 December.
At 31 December 2018, the company revalued the asset to RM240,000. Its expected remaining useful life is now 8 years, but its expected residual value is zero.
Required:
(a) Show in T account the accounting entries required to record the revaluation of the asset on 31 December 2018. [4 marks]
(b) The asset was sold on 12 February 2020 for RM235,000. Calculate the gain or loss on disposal reported in the income statement for Year 2020, and show the total effect on the disposal on the retained earnings of the company. Ignore taxation. [4 marks]
In: Accounting
Danner Company expects to have a cash balance of $53,100 on
January 1, 2020. Relevant monthly budget data for the first 2
months of 2020 are as follows.
| Collections from customers: January $100,300, February $177,000. |
| Payments for direct materials: January $59,000, February $88,500. |
| Direct labor: January $35,400, February $53,100. Wages are paid in the month they are incurred. |
| Manufacturing overhead: January $24,780, February $29,500. These costs include depreciation of $1,770 per month. All other overhead costs are paid as incurred. |
| Selling and administrative expenses: January $17,700, February $23,600. These costs are exclusive of depreciation. They are paid as incurred. |
Sales of marketable securities in January are expected to realize
$14,160 in cash. Danner Company has a line of credit at a local
bank that enables it to borrow up to $29,500. The company wants to
maintain a minimum monthly cash balance of $23,600.
Prepare a cash budget for January and
February.
In: Accounting
The company purchased furniture on April 1, 2020 for $5,630.
On the same date, furniture with an original cost of $119,961, was sold for $66,438.
Calculate the maximum impact on business income for the year from furniture and other miscellaneous tangible capital assets.
In: Accounting
On January 1, 2020, A Company issues $600,000, 12-year, 12%, semi-annual bonds. On the issue date, the market rate is 14%.
Determine the amount of cash received from the Issuance of the Bond. (4 Steps Must Show)
In: Accounting