On December 31, 2019, of the current year Smith Enterprises physically counted $1,500,000 of inventory. The following additional information is also available:
Question 1: For letter A, does Smith adjust or not adjust the physical count for the in-transit goods? Explain.
Question 2: For letter B, does Smith adjust or not adjust the physical count for the in-transit goods? Explain.
Question 3: For letter C, does Smith adjust or not adjust the physical count for the in-transit goods? Explain.
Question 4: For letter D, does Smith adjust or not adjust the physical count for the in-transit goods? Explain.
Question 5a: Consider the in-transit items described above and further assume that Smith’s general ledger reports a Merchandise Inventory balance at 12/31/2019 of $1,750,000. What adjusting entry should Smith prepare at 12/31/2019 to record this inventory shrink? (Make sure to provide the calculations for the number you use in your journal entry!)
Date: MM/DD/YY
Dr. Account………...XX
Cr. Account…………...XX
Question 5b: Consider your entry in 5a, what could have caused this shrink?
In: Accounting
In: Statistics and Probability
Many students accumulate debt by the time they graduate from college. Shown in the following table is the percentage of graduates with debt and the average amount of debt for these graduates at four universities and four liberal arts colleges. University % with Debt Amount($) College % with Debt Amount($) 1 72 32,970 1 83 28,754 2 68 32,110 2 94 29,000 3 58 11,228 3 56 10,201 4 64 11,853 4 49 11,015 a. If you randomly choose a graduate of College 2, what is the probability that this individual graduated with debt (to 2 decimals)? b. If you randomly choose one of these eight institutions for a follow-up study on student loans, what is the probability that you will choose an institution with more than 80% of its graduates having debt (to 3 decimals)? c. If you randomly choose one of these eight institutions for a follow-up study on student loans, what is the probability that you will choose an institution whose graduates with debts have an average debt of more than $ 20,000 (to 3 decimals)? d. What is the probability that a graduate of University 1 does not have debt (to 2 decimals)? e. For graduates of University 1 with debt, the average amount of debt is $ 32,970. Considering all graduates from University 1, what is the average debt per graduate? Round to nearest dollar.
In: Statistics and Probability
On January 1, 2020, Bristol Corporation issued one 3-year, 10% (stated rate), $20,000 bond at a price which would yield the purchaser an 9% return. Payment of interest is made on December 31. The year end is December 31. The company uses the ‘effective interest’ method to account for bond interest.
In: Accounting
Exercise 21-10 (Part Level Submission)
The following facts pertain to a non-cancelable lease agreement
between Sandhill Leasing Company and Teal Mountain Company, a
lessee.
| Commencement date | May 1, 2020 | ||
| Annual lease payment due at the beginning of | |||
| each year, beginning with May 1, 2020 | $19,656.69 | ||
| Bargain purchase option price at end of lease term | $7,000 | ||
| Lease term | 5 | years | |
| Economic life of leased equipment | 10 | years | |
| Lessor’s cost | $65,000 | ||
| Fair value of asset at May 1, 2020 | $93,000 | ||
| Lessor’s implicit rate | 6 | % | |
| Lessee’s incremental borrowing rate | 6 | % |
The collectibility of the lease payments by Sandhill is
probable.
c. Prepare a lease amortization schedule for Rode for the 5-year lease term.
d. Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2020 and 2021. Rode's annual accounting period ends on December 31. Reversing entries are used by Rode.
In: Accounting
On January 1, 2020, Flounder Company purchased 11% bonds, having
a maturity value of $320,000 for $344,893.28. The bonds provide the
bondholders with a 9% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Flounder Company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are classified
as available-for-sale category. The fair value of the bonds at
December 31 of each year-end is as follows.
|
2020 |
$342,600 |
2023 |
$330,400 | |||
|---|---|---|---|---|---|---|
|
2021 |
$329,200 |
2024 |
$320,000 | |||
|
2022 |
$328,300 |
| (a) | Prepare the journal entry at the date of the bond purchase. | |
|---|---|---|
| (b) | Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. | |
| (c) | Prepare the journal entry to record the recognition of fair value for 2021. |
(Round answers to 2 decimal places, e.g. 2,525.25.
Credit account titles are automatically indented when 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.)
In: Accounting
Teal Construction Company has entered into a contract beginning
January 1, 2020, to build a parking complex. It has been estimated
that the complex will cost $597,000 and will take 3 years to
construct. The complex will be billed to the purchasing company at
$908,000. The following data pertain to the construction
period.
|
2020 |
2021 |
2022 |
||||
| Costs to date | $286,560 | $453,720 | $609,000 | |||
| Estimated costs to complete | 310,440 | 143,280 | –0– | |||
| Progress billings to date | 273,000 | 548,000 | 908,000 | |||
| Cash collected to date | 243,000 | 498,000 | 908,000 |
(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.
| Gross profit recognized in 2020 |
| Gross profit recognized in 2021 |
Gross profit recognized in 2022
(b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period
| Gross profit recognized in 2020 |
Gross profit recognized in 2021
Gross profit recognized in 2022
In: Accounting
Presented below is an income statement for Crane Company for the
year ended December 31, 2020.
| Crane
Company Income Statement For the Year Ended December 31, 2020 |
|||
| Net sales | $786,000 | ||
| Costs and expenses: | |||
| Cost of goods sold | 555,000 | ||
| Selling, general, and administrative expenses | 77,000 | ||
| Other, net | 30,000 | ||
| Total costs and expenses | 662,000 | ||
| Income before income taxes | 124,000 | ||
| Income taxes | 37,200 | ||
| Net income | $86,800 | ||
Additional information:
| 1. | "Selling, general, and administrative expenses" included a usual but infrequent charge of $8,000 due to a loss on the sale of investments. | ||
| 2. | "Other, net" consisted of interest expense, $10,000, and a discontinued operations loss of $20,000 before taxes. If the discontinued operations loss had not occurred, income taxes for 2020 would have been $43,200 instead of $37,200. | ||
| 3. | Crane had 20,000 shares of common stock outstanding during 2020. |
Using the single-step format, prepare a corrected income statement,
including the appropriate per share disclosures.
In: Accounting
interview questions
what steps do you follow to study a problem before making a
decision?
what strategic challege would you set as an outreach specialist
?
In: Psychology
6. About 46% of all US debt is owed to foreign governments.
a. List what you think would be two advantages to borrowing money from foreign governments by the US.
b. List what you think would be two disadvantages to borrowing money from foreign governments by the US.
c. In your own opinion, how could the fact that we owe foreign countries money we’ve borrowed from them be a possible preventive measure against the war (technological, economic, or military)?
In: Economics