Trainor Corporation purchased equipment at a cost of $500,000. The equipment has an estimated residual value of $50,000 and an estimated life of 5 years, or 10,000 hours of operation. The equipment was purchased on January 1, 2020 and was used 2,500 hours in 2020 and 2,100 hours in 2021. On January 1, 2022, the company decided to sell the equipment for $315,000. Trainor Corporation uses the units-of- production method to account for the depreciation on the equipment.

Based on this information, the entry to record the sale of the equipment will show a gain of:

Select one:

A. $45,000

B. $72,000

C. $5,000

D. $22,000

Brief Exercise 18-11 b (Essay)

The following data are taken from the financial statements of Colby Company.

(b)

What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period.

A new van costs $25,000, has an estimated useful life of five years and an estimated salvage value of $5,000 at the end of that time. It is expected that the van will be driven 100,000 miles during its useful or service life.

The Nation Express Company purchases this van on April 1, 2019. During 2019 the van is driven 13,000 miles and during 2020 it was driven 21,000 miles. On January 1, 2021, the van is sold for $7,000.

Calculate the depreciation expense for 2019 and 2020 using:

1. Straight-line

2. Double-declining-balance

3. Units-of-production

Question 2: Balance Sheet Build and Analysis

Q.Clean, a student run dry-cleaning service has the following financial information as of December 31, 2020:

• The cash ending balance for the year was $117,820

• Buildings & Equipment for the year was $91,350

• Accounts Receivables for the year was $31,510

• Common Shares for the year was $194,860

• Inventory for the year was $87,970

• Land for the year for the year was $281,490

• Accounts Payable for the year was $74,250

• Retained earnings for the year was $70,100

• Buildings & Equipment Accumulated Depreciation for the year was $40,000

• Wages payable for the year was $46,190

• Short-term debt for the year was $10,500

• Taxes payable for the year was $55,750

• Mortgage for the year was $60,010

• 10-year bond for the year was $20,500

• Interest Payable for the year was $37,980

1. Prepare a 2020 Balance Sheet for the company. Ensure you categorize your accounts into Current and Non-Current Assets/Liabilities, and Shareholders’ Equity.

2. Calculate the Net Working Capital and Quick Ratio of the company. Explain what these values are and what they are used for. Comment on the company’s financial position, based on the ratios you calculated.

3. In 2021, the company plans to purchase additional retail space in Ray Hall. This space will cost $100,000. Half of the purchase will be made in cash, and the other half will be added to the mortgage. Also, the company takes an additional $35,000 of short-term debt. Please answer the following questions:

1. Describe the effect that these transactions will have on the 2020 Balance Sheet.

2. Will this impact the Income Statement in any way? If yes, identify and explain the impact. If no, explain why there is no impact.

the accountant's Company

Income Statement

For the Year Ended December 31, 2018

Sales                                                               $8,500,000

Manufacturing Expenses

Variable                                $3,250,000

Fixed overhead                       640,000       3,890,000

Gross Margin                                                  $4,610,000

Selling and administrative expenses

Commissions                           $580,000

Fixed marketing expenses       300,000

Fixed admin expenses               450,000      1,330,000

Net Operating Income                                     $3,280,000

Fixed Interest expenses                                       230,000    

Income before Taxes                                      $3,050,000     

Income Taxes (21%)                                            640,500

Net Income                                                     $2,409,500

1.Restate the income statement in a contribution margin format.

2.Compute the break-even point in sales dollars given the current structure.

3.Compute the operating leverage at the 2018 level of sales.

4.Compute the margin of safety in both dollars and percentage for the 2018 level of sales.

Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales. The outsourcing would remove the commissions, reduce the marketing by $270,000, and reduce the fixed administrative expenses by $35,000. The out-sourcing firm, Jangler Marketing, will charge a fee of 14% of sales. Jangler requires a 3-year contract. Jangler believes that it can increase sales by 10% for 2019 and 13% each year after (2020 and 2021). The company believes that with its current sales and marketing staff, sales will increase by 8% for 2019 and 9% in each year after (2020 and 2021).

1.Prepare contribution format projected income statements for 2019, 2020 & 202a assuming the company hires Jangler Marketing.

2.Prepare contribution format projected income statements assuming the outsourcing is rejected.

In this simulation, you continue in your role of Senior Vice President for Marketing at Enhanced Analytics, Inc., a provider of marketing and consulting services, with headquarters in Austin, Texas. In this role, you report directly to the CEO of the company and are responsible for decision-making and marketing strategy. You oversee a department with 25 employees at the company.
The company's board of directors thinks that a reorganization of the company will improve decision-making and profitability. You have just found out that the board has been in discussions with the company's CEO regarding the appropriate funding level and structure of each department. The activities of each department and office will be reviewed within the next 60 days. A prominent member of the board thinks that funding for the marketing department - your department - should be reduced significantly. In his opinion, primary emphasis and the most funding should go to the management and finance areas.
You disagree. While most funding in your department is used to plan and create specific marketing campaigns, some of the money is spent on training and on keeping your staff up to date on the latest technologies and trends in marketing management. You think both activities are essential and a reduction in funding will be detrimental to the long-term success of the department. A reduction in funding will also result in a need to lay off staff.
In your role as head of the department, you are given an opportunity to present your views. There is an apparent lack of appreciation for marketing among some of the folks who make up the reorganization committee. The CEO of the company admitted as much at breakfast, this morning, when she has asked you to prepare a persuasive presentation to convince the reorganization committee of the importance of marketing within the organization.
Along with your in-person presentation at the committee's next meeting, your task is to prepare a written report for the committee members.
Prepare a written report for the members of the reorganization committee, containing the following sections:
1. Marketing Management - introduce the concept of marketing, its importance and application

2. Case Study - introduce and describe an example of a company (choose a well-known company that your audience can easily recognize and relate to) and illustrate how marketing is an essential function within the organization. You may use sources such as the company's annual report, scholarly articles found using Google Scholar and articles from business periodicals, such as the Wall Street Journal, Financial Times and BusinessWeek. Since this is a persuasive report, make sure to use specific data and facts that are both truthful and convincing.

3. Lifelong Learning - explain the importance of continuous learning and of staying up to date in the field of marketing.

4. Conclusion - sum up your key points and ask the committee to maintain or increase the funding for your department.
Include outside research to support your ideas and your conclusion. There is no page limit to this assignment. The assignment will be considered well-done if it contains all the required sections, if it is clearly written and your thoughts and ideas are supported by specific data and research.

Below are the statements of financial position for Jupiter Plc, Neptune Limited, Pluto Limited and Venus Co for the year ended 30 April 2021.

i) Share CapitalNotes to the Above Accounts

• All ordinary shares other than those in Venus Co have a par value of 50 pence.
• Ordinary shares in Venus Co have a par value of K1.

ii)     Exchange Rates

• Rate at 1 May 2020: £1 = K10  £1 = €1.25
• Average for year to 30 April 2021: £1 = K10 £1 = €1.55
• Rate at 30 April 2021: £1 = K12 £1 = €1.60

iii) Neptune Limited

• Jupiter Plc purchased 7,500,000 ordinary shares in Neptune Limited on 31 October 2020. The purchase consideration was made up of 2 new ordinary shares in Jupiter valued at £1.20 each for every 3 shares held in Neptune Limited and £11,000,000 paid in 12 months’ time. Jupiter Plc has recorded the £11,000,000 payable in current borrowings and investments, but the accountant has not recorded the number or value of shares issued in Jupiter Plc’s investments.
• Jupiter Plc’s cost of capital is 10% and Neptune Limited’s cost of capital is 8%
• Profit for the year to 30 April 2021 for Neptune Limited was £1,000,000.
• At the date of acquisition, the fair value of Neptune Limited’s freehold properties was agreed to be £4,000,000 higher than book value; properties had an average remaining useful life of 10 years at the date of acquisition. This fair value adjustment has not been included in Neptune Limited’s books of account.
• It is group policy to capitalise development expenditure. Neptune Limited writes off development expenditure as it is incurred. At 31 October 2020 Jupiter Limited had written off development expenditure amounting to £600,000 and the total development expenditure written off up to 30 April 2021 amounted to £1,800,000.
• On 29 April 2021, Jupiter Limited remitted a payment to Pluto Limited for £100,000 to clear Jupiter Limited’s current account balance with Pluto Limited at the year end. Pluto Limited did not receive this cheque until 2 May 2021 and has not reflected this payment in trade receivables.
• At the date of acquisition, the non-controlling interest in Neptune Limited was agreed to have a fair value of £3,750,000.

iv) Pluto Limited

• Neptune Limited paid £1,648,000 to acquire 800,000 ordinary shares in Pluto Limited on 1 May 1996. Neptune Limited had no significant influence over Pluto Limited at this time as there was a controlling shareholder.
• Jupiter Plc paid £600,000 to acquire 300,000 ordinary shares in Pluto Limited on 1 May 2020.
• The retained earnings for Pluto Limited were as follows:

• The inventories of Jupiter Plc include goods which had cost Pluto Limited £2,300,000 and to which Pluto Limited had added a 25% mark up.
• At the point of acquisition, the non-controlling interest in Pluto Limited was agreed to have a fair value of £1,200,000

v)  Venus Co

• Venus Co is a company incorporated in Krulia.
• Jupiter Plc acquired 1,750,000 of the ordinary shares in Venus Co on 1 May 2020 at a cost of £400,000 when the retained earnings of Venus Co stood at K6,000,000.

• At the date of acquisition, the fair value of net assets was the same as the book value of net assets.

vi) Borrowings

• Jupiter Plc’s non-current liabilities includes borrowings which are denominated in Euros. The loan is for €4,000,000. This loan was last translated at 30 April 2020. No adjustment for movements in exchange rates have been made since this date. The loan remains in Jupiter Plc’s statement of financial position at the sterling value as at 30 April 2020

vii) Goodwill

• Positive goodwill is carried at cost and is reviewed annually for impairment.
• Negative goodwill is credited directly to retained earnings.
• An impairment review of goodwill had been carried out at year end and concluded that there had been no impairment of the goodwill associated with any of the investee companies.
• It is the group’s policy to value any non-controlling interests at their fair value.

YOU ARE REQUIRED TO:

Prepare the group statement of financial position for the Jupiter Plc Group as at 30 April 2021.
All your calculations should be made to the nearest £000.

Which of the following is a description of the ITU, the organization to which the 5G specification will be submitted by 2020?

Group of answer choices

The International telephone company.

A union for workers in the telecommunications profession.

The United Nations specialized agency for information and communication technologies.

An IT organization at Universities.

Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $195,000. The trial balances for the two companies on December 31, 20X7, included the following amounts:

Additional Information

1. On January 1, 20X7, Sword reported net assets with a book value of $136,000. A total of $26,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7.
2. Sword’s depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment.
3. Prince used the equity-method in accounting for its investment in Sword.
4. Detailed analysis of receivables and payables showed that Sword owed Prince $25,000 on December 31, 20X7.

Required:
a. Prepare all journal entries recorded by Prince with regard to its investment in Sword during 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c. Prepare a three-part consolidation worksheet as of December 31, 20X7. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)