Universal foods issued 12% bonds, dated January 1, with a face amount of $155 million on January 1, 2018 to Wang Communcations. The bonds mature on December 31, 2032 (15 years). The market rate of interest for similar issues was 14%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight line method. Universal Foods sold the entire bond issue to Wang Communications.
Required: 1-3. Prepare the journal entry to record the purchase of the bonds by Wang Communications on January 1, 2018, interest revenue on June 30, 2018 and interest revenue on December 31, 2025.
In: Accounting
The financial statements of Procter & Gamble in available online either through the SEC website or the corporation's website. Access the financial statements for the fiscal year end June 30, 2020 answer the following questions:
a. What type of income statement formate does P & G use?
b. What are P & G's primary revenue sources?
c. Why does P & G make a distinction between operating and nonoperating revenue?
d. Compute P & G's gross profit ratio of each of the years presented the June 30, 2020 annual report. Did the gross profit ratio increase or decrease? Explain why.
In: Accounting
Indiana Co. began a construction project in 2021 with a contract
price of $164 million to be received when the project is completed
in 2023. During 2021, Indiana incurred $38 million of costs and
estimates an additional $83 million of costs to complete the
project. Indiana recognizes revenue over time and for this project
recognizes revenue over time according to the percentage of the
project that has been completed.
Indiana:
A. Recognized no gross profit or loss on the project in 2021.
B. Recognized $81.00 million loss on the project in 2021.
C. Recognized $38.00 million loss on the project in 2021.
D. Recognized $13.50 million gross profit on the project in 2021.
In: Accounting
1.Which of the following transactions will affect the balance
of? Owner, Capital?
A.
collection on account
B.
paid accounts payable
C.
paid rent expense for the month
D.
purchased land for cash
2..Which of the following appears on both the income statement and statement of? owner's equity? A. Net income B. ?Owner, Capital, ending balance C. Total revenues D. ?Owner, Withdrawals
3.A liability created when a business receives cash from
customers in advance of providing services or delivering goods is
called? a(n) ________.
A.
notes receivable
B.
unearned revenue
C.
accrued liability
D.
service revenue
In: Accounting
create a multi-step P&L in good form.
| Speedy Incorporated | ||
| Debit | Credit | |
| Common Dividends Paid | $ 80,000 | |
| Cost of Goods Sold | $ 800,000 | |
| Dividend revenue | $ 60,000 | |
| Gain on Sale of Discontinued Operations | $ 120,000 | |
| Gain on Sale of Equipment | $ 70,000 | |
| Restructuring charge | $ 10,000 | |
| Interest Expense | $ 100,000 | |
| Loss on Discontinued Operations | $ 75,000 | |
| Net Sales Revenue | $ 1,730,000 | |
| Preferred Dividends Paid | $ 100,000 | |
| Selling & Admin Expense | $ 540,000 | |
| Additional information: | ||
| Tax rate | 20% | |
| Common Shares Outstanding 12/31/20 | 1,000,000 | |
| Preferred Shares Outstanding 12/31/20 | 800,000 | |
In: Accounting
A local zoo offers three different memberships:
an individual membership for $99 per year, a dual membership for $175 per year,
and a family membership for $225 per year. The membership director wants a program
that displays the total membership revenue for the year,
as well as the amount of the total revenue contributed by each membership type.
a. enter the input, processing, and output items, as well as the algorithm, in the first column.
b.Desk-check the algorithm twice. For the first desk-check, use 50, 75, and 150
as the numbers of individual, dual, and family memberships sold during the year.
For the second desk-check, use 35, 150, and 265.
In: Computer Science
The following account balances are taken from Sherwood Ltd.’s
adjusted trial balance at June 30, 2020:
|
Debit |
Credit |
||||||
|---|---|---|---|---|---|---|---|
|
Sales revenue |
$1,254,000 | ||||||
|
Advertising expense |
$123,000 | ||||||
|
Cost of goods sold |
594,000 | ||||||
|
General and administrative expenses |
39,000 | ||||||
|
Selling expenses |
75,000 | ||||||
|
Depreciation expense |
70,000 | ||||||
|
Interest expense |
39,000 | ||||||
|
Interest revenue |
43,000 | ||||||
|
Income tax expense |
12,000 | ||||||
|
Wages expense |
166,000 | ||||||
|
Utilities expense |
107,000 | ||||||
Prepare a single-step statement of income for the year ended June 30, 2020.
.
.
.
Prepare a multi-step statement of income for the year ended June 30, 2020.
In: Accounting
Depreciation is considered as accounting policy and operational expense for the accounting period.
The value to be included in the financial statement is calculated based on the decision of the Board.
(a) You are required to:
In: Accounting
I need to make a multi step income statement using the following data
Net sales $1,950,000
Cost of goods sold 1,200,000
Selling expenses 95,000
Administrative expenses 70,000
Dividend revenue 30,000
Interest revenue 20,000
Interest expense 45,000
Loss on write-off of goodwill due to impairment 75,000
Depreciation expense omitted in 2015 105,000
Dividends declared on common stock 120,000
Loss from operations of discontinued component of business 240,000
Gain from disposal of component of business 300,000
there are 200,000 shares and a tax rate of 30% please show all work w/ explanation if possible
In: Accounting
Depreciation is considered as accounting policy and operational expenses for the accounting period. the value to be included in the financial statement is calculated based on the decision of the board.
a) you are required to:
(i) Explain the difference between capital expenditure and revenue expenditure, and how each type of expenditure will affect the financial statements of a business.
ii) Explain why it is important to distinguish between capital expenditure and revenue expenditure and briefly explain the accounting treatment of each type of expenditure
iii) Under what circumstance will you consider the reducing balance method as the most appropriate method in calculating depreciation?
(b) Does depreciation decrease cash in a business? Explain your answer.
In: Accounting