On January 1, 2018, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows: 2018 2019 Cost Retail Cost Retail Beginning inventory $ 140,000 $ 200,000 Purchases 440,000 594,000 $ 680,000 $ 854,000 Purchase returns 3,500 4,350 3,200 4,550 Freight-in 6,600 5,000 Net markups 5,450 9,800 Net markdowns 4,300 7,000 Net sales to customers 480,000 702,000 Sales to employees (net of 20% discount) 19,200 19,200 Normal spoilage 2,900 4,000 Price Index: January 1, 2018 1.00 December 31, 2018 1.25 December 31, 2019 1.25 Required: 1. Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail method. 2. Estimate the 2018 ending inventory and cost of goods sold using the average cost retail method. 3. Estimate the 2018 ending inventory and cost of goods sold using the conventional retail method.
In: Accounting
Use the following set of information to prepare a pension worksheet. Also, make the appropriate journal entry to record pension expense for 2018. Hayworth Inc. has the following information related to its defined-benefit pension plan :
Projected Benefit Obligation, 1/1/2018 (before amendment) $675,000
Accumulated Benefit Obligation, 1/1/2018 (before amendment) 475,000
Vested Benefit Obligation, 1/1/2018 (before amendment) 375,000
Pension Assets, 1/1/2018 525,000
Service Cost 90,000
Settlement rate 6%
Expected rate of return on plan assets 10%
Actual return on plan assets 30,000
Benefits paid to retirees 72,000
Contributions to plan 80,000
Amortization of prior service costs 20,000
On 1/1/2018, Hayworth Inc. grants prior service benefits having a present value of 100,000
Unamortized Gain, 1/1/2018 100,000
Average service life of all employees 10 years
Unamortized Prior Service Cost (OCI), 1/1/2018 150,000
In: Accounting
Samantha Dolan operates a small consulting business as a sole proprietor. During 2018, she has the following transactions related to the business:
|
Customer sales on account |
$75,000 |
|
Collections from 2018 Credit Sales |
$5,000 |
|
Collections from 2018 Credit Sales |
$18,000 |
|
Business Bad debts |
$8,000 |
|
Operating expenses incurred during 2018 |
$44,000 |
|
Operating expenses from 2018 paid in 2018 |
$33,000 |
|
Operating expenses from 2018 paid in 2018 |
$10,000 |
Calculate the net income or loss from Samantha’s business using the accrual method of accounting
Calculate the net income or loss from Samantha’s business using the cash method of accounting.
What accounts for the difference in the two net incomes and how does this benefit or cause a problem for a trade or business?
Note from instructor: I would just use both as displayed. I think they’re just trying to make you take into account multiple line items like you will in real life (but they would probably be named differently).
In: Accounting
How do the all events and economic performance requirement apply to the
following transactions by an accrual basis taxpayer?
a. The company guarantees its products for six months. At the end of 2018, customers
had made valid claims for $600,000 that were not paid until 2019. Also,
the company estimates that another $400,000 in claims from 2018 sales will be
filed and paid in 2019.
b. The accrual basis taxpayer reported $200,000 in corporate taxable income for
2018. The state income tax rate was 6%. The corporation paid $7,000 in estimated
state income taxes in 2018 and paid $2,000 on 2017 state income taxes
when it filed its 2017 state income tax return in March 2018. The company filed
its 2018 state income tax return in March 2019 and paid the remaining $5,000
of its 2018 state income tax liability.
c. An employee was involved in an accident while making a sales call. The company
paid the injured victim $15 ,000 in 2018 and agreed to pay the victim
S 15,000 a year for the next nine years.
In: Accounting
|
Consider the following abbreviated financial statements for Parrothead Enterprises: |
| PARROTHEAD ENTERPRISES 2017 and 2018 Partial Balance Sheets |
||||||||||||||
| Assets | Liabilities and Owners’ Equity | |||||||||||||
| 2017 | 2018 | 2017 | 2018 | |||||||||||
| Current assets | $ | 1,248 | $ | 1,363 | Current liabilities | $ | 531 | $ | 583 | |||||
| Net fixed assets | 5,022 | 6,065 | Long-term debt | 2,705 | 2,879 | |||||||||
| PARROTHEAD ENTERPRISES 2018 Income Statement |
||
| Sales | $ | 15,634 |
| Costs | 7,198 | |
| Depreciation | 1,405 | |
| Interest paid | 416 | |
| a. | What is owners' equity for 2017 and 2018? (Do not round intermediate calculations.) |
| b. | What is the change in net working capital for 2018? (Do not round intermediate calculations.) |
| c-1. | In 2018, Parrothead Enterprises purchased $2,580 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? (Do not round intermediate calculations.) |
| c-2. | In 2018, Parrothead Enterprises purchased $2,580 in new fixed assets. What is the cash flow from assets for the year? The tax rate is 23 percent. (Do not round intermediate calculations.) |
In: Finance
ABC Ltd has accounts receivable of $99 600 at 30 April, 2019. An analysis of the accounts shows these amounts as follows:
Month of sale | Balance of Accounts Receivable | |
April, 2019 | $50 000 | |
March, 2019 | 43 000 | |
February, 2019 | 1 200 | |
January, 2019 | 5 100 | |
December and November, 2018 | 300 | |
99 600 | ||
Credit terms are 2/7, n/30. At 30 April, 2019, there is a $2000 credit balance in Allowance for Doubtful Debts before adjustment. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts. Estimates of bad debts are as follows:
Age of accounts | Estimated percentage uncollectable | ||
Current | 2% | ||
1-30 days past due | 5% | ||
31-90 days past due | 40% | ||
over 90 days | 50% | ||
Required:
a) Determine the total estimated uncollectable (1 mark)
b) Prepare the adjusting entry at 30 April, 2019 to record bad debts expense (1 mark)
c) In May, 2019, a cheque for $1500 is received from the customer whose account was written off as uncollectable in February. Prepare the journal entry. (2 marks)
(Both account names and figures should be correct in order to
award marks.
Type your response directly into the text box below. Alternatively, you may draft your response in Excel or Word and upload as an attachment into the Files section underneath.)
In: Accounting
The statement of profit or loss for Blue Cross (Pty) Ltd for the financial year ended 28 February 2019 is as follows:
R
Sales (note 1) 2000 000
Cost of sales (800 000)
Gross profit 1200 000
Salaries (450 000)
Depreciation (note 3) (100 000)
Repairs (15 000)
Profit from the sale of machinery (note 4) 30 000
Local dividends received 35 000
Interest received 28 000
Profit before tax 728 000
Note 1
Blue Cross (Pty) Ltd received a payment in advance of R40 000 from a customer. At year-end the goods still had to be delivered to the customer. This amount has not yet been recognised as revenue for accounting purposes.
Note 2
Blue Cross (Pty) Ltd entered into learnership agreements that qualify for allowances in terms of s 12H. The allowance amounts to R60 000.
Note 3
The equipment qualified for an accelerated allowance of R150 000 in terms of s 12C during the 2019 year of assessment.
Note 4
The machinery was sold for R320 000 on 30 August 2018. The recoupment of allowance for tax purposes amounted to R20 000. A capital gain of R50 000 arose on the disposal.
Statutory tax rate is 28%
Calculate the normal taxable payable by Blue Cross (Pty) Ltd for year of assessment ended on 28 February 2019.
In: Accounting
| A. | ClassCo sells Convertible Bond with warrant to convert into stock | ||||||
| Bond with face | $1,000 | ||||||
| Face Rate | 8.00% | ||||||
| Term | 3 | Yrs. | |||||
| Market rate @ sale | 8.50% | ||||||
| issued: | 30/06/18 | ||||||
| maturity | 30/06/21 | ||||||
| Interest paid annually | |||||||
| Bond sold for | 996.00 | ||||||
| 1. determine value received from sale, Discount or Premium? | |||||||
| 2. Prepare JE to record sale, use incremental | |||||||
| assume value of Bond in the known | |||||||
| and value of warrant is incremental | |||||||
| B. | ClassCo: | PE 12/31/2018 | Fiscal = calendar Yr. | ||||
| Net income: after tax | 2000 | shares: | |||||
| Beginning: | 505 | ||||||
| 3/1 issue | 50 | ||||||
| 9/1 issue | 60 | ||||||
| Treasury Purchase 10/30 | (24) | ||||||
| on 11/22, 3 for 1 split | |||||||
| Preferred dividends this year = | 250 | ||||||
| 1. Calculate EPS | |||||||
| 2. using "as if" compute EPS & dilutive effect of Convertible Bonds | |||||||
| issued 10 bonds , $1000 bonds issued prior yr., 6%, each bond was convertible into 30 shares | |||||||
| 40% tax rate for bonds | |||||||
| C. | NET Income: | 4500 | No preferred stock | ||||
| Average # of Shares | 2200 | EPS = | 2.045 | ||||
| Stock Options: | all full Yr. | ||||||
| # option shares | 500 | ||||||
| 0ption price per share | $18 | ||||||
| Market at PE being measured | $32 | ||||||
|
Compute dilutive effect per share Please use excel to comple it |
pl |
||||||
In: Accounting
The number of hours worked per year per adult in a state is normally distributed with a standard deviation of 37. A sample of 115 adults is selected at random, and the number of hours worked per year per adult is given below. Use Excel to calculate the 98% confidence interval for the mean hours worked per year for adults in this state. Round your answers to two decimal places and use ascending order.
Number of hours
2250
1987
2029
2018
1938
2197
2099
2228
2245
1913
1903
2298
2231
2200
1902
2161
2211
2124
2082
2257
2087
2123
1929
1948
2124
2013
1973
2000
2030
1932
1993
2014
2118
1900
2195
2222
2035
2088
2010
1962
2166
1918
2070
2277
2114
1975
2045
2050
1921
2103
1954
2017
2235
1993
2156
1984
2057
2200
2133
2144
2145
2219
2222
2210
2143
2163
2168
2246
2186
1907
2072
2142
2187
2036
2207
2270
2262
2159
1914
1926
2261
2006
1948
2028
2256
2182
1955
1969
1941
1924
2176
2256
2051
2111
2221
2222
2190
2068
1942
2024
2258
2201
2085
2061
2004
2260
2136
2244
1989
1941
2297
2159
2260
2093
2293
In: Statistics and Probability
The dean of Mihaylo Business School is forecasting total student enrollment for next year based on the following historical data:
Year Total Enrollment
2015 1600
2016 2000
2017 2200
2018 2600
2019 3000
What is 2020's forecast using a 2-period moving average? Select one:
a. 2,800
b. None of the choices
c. 3,000
d. 1,960
e. 2,450
What is the MAPE value based on 2 year moving average?
Select one:
a. None of the choice
b. 0.191
c. 0.178
d. 0.144
e. 0.237
What is the forecasted value of 2020 by using a 3 year weighted
moving average by using weights of 0.6, 0.3 and 0.1.
Select one:
a. 2480
b. 2800
c. 2680
d. None of the choices
e. 2400
a. None of the choice
b. 0.191
c. 0.178
d. 0.144
e. 0.237
What is the MSE value based on exponential smoothing forecast
with smoothing constant of 0.4?
Select one:
a. 1,557,436
b. None of the choices
c. 576
d. 1,297,863
e. 357,985
Compare 2 year moving average and exponential smoothing with
alpha=0.4, which forecasting approach is better? Using MAE as your
forecast accuracy measure.
Select one:
a. Exponential smoothing with alpha=0.4
b. 2 year moving average
In: Statistics and Probability