|
Discount Group names: |
||||
| On Jan 1, 2016, Zahid sold a truck to Othaim in exchange for a $200,000, 6% (payable annually), 5 year, notes payable. On Jan 1, 2016, the market rate was 8%. | ||||
| Amortization Table | ||||
| Date | Cash Received | Int. Revenue | Dis Amrt. | Carrying Value |
| 1-Jan-16 | ||||
| 1-Jan-17 | ||||
| 1-Jan-18 | ||||
| 1-Jan-19 | ||||
| 1-Jan-20 | ||||
| 1-Jan-21 | ||||
| Requirements: | ||||
| What is the sale revenue that Zaid should recognize on Jan 1, 2016? | ||||
| What is the interest revenue that Zaid should recognize on Dec 31, 2016? | ||||
| What is the Dis Amrt. that Zaid should recognize on Dec 31, 2018? | ||||
| What is the carrying value of the notes on Dec 31, 2019? | ||||
| What is the interest receivable related to the notes on Dec 31, 2020? | ||||
In: Accounting
Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $6 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 5%, and the forecasted retention ratio is 40%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.
Now assume the company's assets totaled $4 million at the end of 2016. Is the company's "capital intensity" the same or different comparing to initial situation?
In: Finance
| he following is a partial trial balance for General Lighting Corporation as of December 31, 2016: |
| Account Title | Debits | Credits | ||||
| Sales revenue | 2,550,000 | |||||
| Interest revenue | 84,000 | |||||
| Loss on sale of investments | 24,500 | |||||
| Cost of goods sold | 1,230,000 | |||||
| Loss from write-down of inventory due to obsolescence | 240,000 | |||||
| Selling expenses | 340,000 | |||||
| General and administrative expenses | 170,000 | |||||
| Interest expense | 83,000 | |||||
|
300,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 40%. |
| Required: | |
| 1. |
Prepare a single-step income statement for 2016, including EPS disclosures. (Round EPS answers to 2 decimal places.) |
| 2. |
Prepare a multiple-step income statement for 2016, including EPS disclosures. (Round EPS answers to 2 decimal places.) |
In: Accounting
Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $6 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 7%, and the forecasted retention ratio is 25%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent. Now assume the company's assets totaled $4 million at the end of 2016. Is the company's "capital intensity" the same or different comparing to initial situation?
In: Finance
Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $5 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 7%, and the forecasted retention ratio is 45%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.
$
Now assume the company's assets totaled $3 million at the end of
2016. Is the company's "capital intensity" the same or different
comparing to initial situation?
-Select-DifferentThe sameItem 2
In: Finance
Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $6 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and the forecasted retention ratio is 35%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.
$
Now assume the company's assets totaled $4 million at the end of
2016. Is the company's "capital intensity" the same or different
comparing to initial situation?
-Select-DifferentThe sameItem 2
In: Finance
Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $5 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 40%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.
$
Now assume the company's assets totaled $3 million at the end of
2016. Is the company's "capital intensity" the same or different
comparing to initial situation?
-Select-Different or The same
In: Finance
|
Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $6 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 3%, and the forecasted retention ratio is 45%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent. $ Now assume the company's assets totaled $4 million at the end of
2016. Is the company's "capital intensity" the same or different
comparing to initial situation? |
In: Finance
On January 1, 2016, Billips Corporation purchased equipment having a fair value of $72,054.94 by issuing a $90,000 note, payable in three $30,000 annual installments beginning December 31, 2016.
Required:
| Prepare (1) the journal entry to record the purchase of the equipment, (2) a schedule to compute the annual interest expense, and (3) the journal entries to record yearly interest expense and note repayments over the life of the note. |
General Journal
Prepare the journal entry to record the purchase of the equipment on January 1, 2016 and a single entry on December 31, 2016, 2017 and 2018 to record the annual interest expense and the installment payment on the note. Additional Instructions
PAGE 2016PAGE 2017PAGE 2018
GENERAL JOURNAL
| DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
|
1 |
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|
2 |
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|
3 |
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|
4 |
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|
5 |
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|
6 |
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|
7 |
Analysis
Prepare a schedule to compute the annual interest expense. Additional Instructions
|
Billips Corporation |
|
1 |
2016 |
2017 |
2018 |
|
|
2 |
Note payable (beg. of year) |
|||
|
3 |
Less: Unamortized discount |
|||
|
4 |
Carrying value (beg. of year) |
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|
5 |
Effective interest rate |
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|
6 |
Interest expense and discount amortization |
In: Accounting
Vaughn Company began operations on January 2, 2016. It employs
12 individuals who work 8-hour days and are paid hourly. Each
employee earns 9 paid vacation days and 6 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 | Vacation Days Used | Sick Days Used | ||||||||||
2016 | 2017 | 2016 | 2017 | 2016 | 2017 | |||||||
| $9 | $10 | 0 | 8 | 4 | 5 | |||||||
Vaughn 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.)
In: Accounting