Comfort Company manufactures pillows. The 2020 operating budget is based on production of 1,000 pillows with 0.50 machine-hour allowed per pillow. Budgeted variable overhead per hour was $10. Actual production for 2020 was 750 pillows using 400 machine-hours. Actual variable costs were $9 per machine-hour.
Required: Calculate the variable overhead spending and efficiency variances.
In: Accounting
Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with payment of 12,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 12,000 dinars on March 1, 2021. The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows:
| Date | Spot Rate | Forward Rate (to March 1, 2021) |
||||
| December 1, 2020 | $ | 3.00 | $ | 3.075 | ||
| December 31, 2020 | 3.10 | 3.200 | ||||
| March 1, 2021 | 3.25 | N/A | ||||
Icebreaker must close its books and prepare financial statements at December 31.
a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars.
a-2. What is the impact on 2020 net income?
a-3. What is the impact on 2021 net income?
a-4. What is the impact on net income over the two accounting periods?
b-1. Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars.
b-2. What is the impact on 2020 net income?
b-3. What is the impact on 2021 net income?
b-4. What is the impact on net income over the two accounting periods?
In: Accounting
Cheyenne Company reports pretax financial income of $70,000 for 2020. The following items cause taxable income to be different than pretax financial income.
| 1. | Depreciation on the tax return is greater than depreciation on the income statement by $15,100. | |
| 2. | Rent collected on the tax return is greater than rent recognized on the income statement by $23,200. | |
| 3. | Fines for pollution appear as an expense of $10,300 on the income statement. |
Cheyenne’s tax rate is 30% for all years, and the company expects
to report taxable income in all future years. There are no deferred
taxes at the beginning of 2020.
Compute taxable income and income taxes payable for 2020.
|
Taxable income |
$enter a dollar amount |
|
|---|---|---|
|
Income taxes payable |
$enter a dollar amount |
Prepare the journal entry to record income tax expense, deferred
income taxes, and income taxes payable for 2020.
(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.)
Prepare the income tax expense section of the income statement
for 2020, beginning with the line “Income before income taxes.”
(Enter negative amounts using either a negative sign
preceding the number e.g. -45 or parentheses e.g.
(45).)
Compute the effective income tax rate for 2020.
(Round answer to 1 decimal places, e.g.
25.5%.)
| Effective income tax rate |
enter the Effective income tax rate in percentages rounded to 1 decimal place |
In: Accounting
On January 1, 2020, Coronado Company purchased at face value, a
$1300, 9% bond that pays interest on January 1. Coronado Company
has a calendar year end.
The entry for the receipt of interest on January 1, 2021 is
Outstanding stock of the Sheridan Corporation included 20800
shares of $5 par common stock and 5100 shares of 6%, $10 par
noncumulative preferred stock. In 2019, Sheridan declared and paid
dividends of $1900. In 2020, Sheridan declared and paid dividends
of $6400. How much of the 2020 dividend was distributed to
preferred shareholders?
Marigold, Inc. has 3100 shares of 4%, $50 par value, cumulative preferred stock and 62000 shares of $1 par value common stock outstanding at December 31, 2019. The board of directors declared and paid a $2700 dividend in 2019. In 2020, $18100 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2020?
Chenard, Jennings, and Blair share profits and losses is 2:3:5, respectively. The balance sheet is:
CHENARD, JENNINGS, AND BLAIR PARTNERSHIP
Balance Sheet
December 31, 2020
Assets Liabilities and Owners'
Equity
Cash $ 37700
Liabilities $141000
Noncash assets 283000 Chenard,
Capital 59500
Jennings,
Capital 89400
Blair,
Capital 30800
Total
$320700
Total
$320700
If the partnership is liquidated by selling the noncash assets for $384000, and creditors are paid in full, what is the total amount of cash that Chenard will receive in the distribution of cash to partners?
In: Accounting
Sully Company’s January 1, 2020 balance sheet is as follows:
Assets Liabilities & Equity
Cash, receivables $ 3,000,000 Current liabilities $ 2,000,000
Inventories 4,000,000 Long-term liabilities 6,500,000
Equity method investments 1,000,000 Capital stock 2,000,000
Land, buildings & equipment 5,500,000 Retained earnings 3,500,000
Accumulated other comprehensive loss (400,000)
_________ Treasury stock (100,000)
Total assets $13,500,000 Total liabilities & equity $13,500,000
On January 1, 2020, Pronto Corporation acquired Sully’s assets and liabilities for $50 million in cash. Sully’s cash and receivables, and current liabilities were reported at values approximating fair value. However, its inventories were overvalued by $2,000,000, and its equity method investments were undervalued by $3,000,000. Its land, buildings & equipment were overvalued by $2,500,000, and its long-term liabilities were undervalued by $500,000. The accountants identified the following possible intangible assets attributed to Sully but not currently recorded on its balance sheet:
Fair Value
Skilled workforce $7,000,000
Favorable leases 5,000,000
Developed technology 2,000,000
Prospective customer contracts 1,500,000
Synergies on future projects 3,000,000
Required
Prepare Prance’s journal entry to record the acquisition.
In: Accounting
Woody and Ruby are married and filing a joint return. They have combined wages of $135,000 in 2020. The couple's 2020 stock transactions are detailed in the following table. In addition, they have $6,200 of qualifying dividends.
|
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Which of the following statements is true?
Which of the following statements is true?
|
They would report a $500 S/T capital gain and $5,500 L/T capital gain. |
||
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They would report a $5,500 L/T capital gain. |
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He should report a $500 S/T capital loss and $6,000 L/T capital Gain |
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The net gain will be subject to ordinary tax rates. |
||
|
None of the statements are correct |
In: Accounting
Imagine a company is evaluating taking a 20,000,000 loan at a 10% interest rate, with 2% principal mandatory amortization and a maturity of 10 years on January 1, 2020. Create the necessary schedule(s) for the company so that they can make a proper evaluation.
In: Finance
VI. Communication: For this part of the assessment, you will prepare memorandums to upper management addressing certain scenarios or situations.
A. As the controller of Target Corporation, compose a memo to the CEO addressing the advantages and disadvantages of transitioning from GAAP to IFRS.
B. As the controller of Target Corporation, compose a memo to the CEO addressing the following scenario: Your biggest customer has just gone bankrupt, and you must inform the CEO how this will affect your accounts receivable. Assume that the accounts receivable balance is at least $100,000.
When writing your paper considers the following:
When discussing Accounts Receivable make sure you do consider whether Target Corporation uses the direct write-off method, or an allowance? How would handling this scenario be different based on the method used? What accounts would be affected based on the method used to account for bad debt?
Please do make sure you fully address each critical element with appropriate detail and that you defend your content in your paper with scholarly sources.
Support your arguments with at least three peer-reviewed sources cited in APA format
In: Accounting
8. All of the following are necessary for a successful interview of the patient with a psychiatric illness EXCEPT:
a. The use of closed-ended questions
b. The demonstration of empathy towards the patient
c. Presence of an informant
d. Reassuring the patient that you are not judging them
In: Nursing
What are the difficulties, the likes, and dislikes of an interview of a variety of ages, ethnicities, races, and genders?
Questions are:
1) Age
2) Race
3) Ethnicity
4) Gender
5) Where the subject grew up
6) What is “old” to you? How do you know when you are old?
7) How do you feel about old people? Why?
8) Name two different ways that you were brought up that you think are different from most other people. For example, you may say you were raised on a farm, or your father was in the military.
9) Were you part of social, religious, or other types of group growing up?
10) Who were your role models when you were growing up? How did they influence you?
In: Nursing