|
TravelToday, disclosed the following rounded amounts (in thousands) concerning the Allowance for Doubtful Accounts on its Form 10-K annual report. |
|
SCHEDULE II |
||||||||||||||||
| Allowance for Doubtful Accounts |
Balance at Beginning of Year |
Additions Charged to Bad Debt Expense |
Write-Offs | Balance at End of Year |
||||||||||||
| 2012 | $ | 9,000 | $ | 4,000 | $ | 1,200 | $ | 11,800 | ||||||||
| 2011 | 8,000 | 4,600 | 3,600 | 9,000 | ||||||||||||
| 2010 | 12,500 | 900 | ? | 8,000 | ||||||||||||
| Required: | |
| 1-a. |
Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2011 amounts from the above schedule. The balance at the beginning of each year in the Allowance for Doubtful Accounts is a credit balance. (Enter your answers in thousands.) |
| 1-b. |
Write the T-account in equation format to prove that the above items account for the changes in the account. (Enter your answers in thousands.) |
| 2. |
Record summary journal entries for 2012 related to (a) estimating Bad Debt Expense and (b) writing off specific balances. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands.) |
| 3. |
Supply the missing information for 2010. (Enter your answers in thousands.) |
| 4. |
If TravelToday had written off an additional $30 of Accounts Receivable during 2010, by how much would Net Receivables have decreased? How much would Net Income have decreased? (Enter your answers in thousands.) |
In: Accounting
Coliseum Company has budgeted the following unit sales:
Quarter Units
Qtr. 1, 2020 60,000
Qtr. 2, 2020 50,000
Qtr. 3, 2020 40,000
Qtr. 4, 2020 80,000
The finished goods inventory on hand on December 31, 2019 was 6,000 units. 90% of the next quarter’s sales will come from production during that quarter, and the remainder of next quarter’s sales will come from this quarter’s ending inventory.
Required: Prepare a production budget for the first two quarters of 2020. Include totals column.
In: Accounting
On January 1, 2020, the Maxell Company purchased P400,00 of 6% term bonds. The bonds are dated January 1, 2020, and the interest is payable semiannually on June 30 and December 31. At the time the bonds were purchased the market interest rate was 8%. The bonds mature on December 31, 2030. Maxell Company uses the effective interest method of amortization.
Instruction: Determine the following:
In: Accounting
Computing and Recording Interest Capitalization
The following information is from Bowin Inc. for a long-term construction project that is expected to be completed in January 2021. The construction project is for a building intended for the company’s own use. The capital expenditure on January 1, 2020, is for the purchase of land for the building site. No new construction loans were opened for the project in 2020. All debt was outstanding for the full year.
Capital Expenditures for 2020
| Date | Amount |
|---|---|
| Jan. 1, 2020 | $ 24,000 |
| Mar. 31, 2020 | 720,000 |
| June 30, 2020 | 1,440,000 |
| Nov. 30, 2020 | 720,000 |
Outstanding Debt in 2020
| Debt | Debt Amount | Interest Rate |
|---|---|---|
| Note payable | $800,000 | 8% |
| Note payable | 640,000 | 8% |
| Bond payable | 1,600,000 | 10% |
| Note payable | 400,000 | 9% |
Answer the following questions:
a. Compute interest to be capitalized and the interest to
be expensed in 2020.
b. Prepare the entry to record the construction
expenditures and interest for 2020.
c. Prepare the entry for depreciation in 2021 assuming
that the project is completed on January 1, 2021. Assume that the
building has a useful life of 30 years, and that the company uses
the straight-line depreciation method.
Note: Do not round until your final answers, then round to nearest whole number.
a.
| Amount of interest to be capitalized | Answer |
| Amount of interest to expense |
b.
Land
Construction in process
cash and payables
c.
In: Accounting
Carla Company sponsors a defined benefit pension plan for its
employees. The following data relate to the operation of the plan
for the year 2020 in which no benefits were paid.
| 1. | The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,500. | |
| 2. | The company’s funding policy requires a contribution to the pension trustee amounting to $144,729 for 2020. | |
| 3. | As of January 1, 2020, the company had a projected benefit obligation of $908,100, an accumulated benefit obligation of $802,100, and a debit balance of $400,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,200 at the beginning of the year. The actual and expected return on plan assets was $54,100. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid. | |
| 4. | Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020. |
Determine the amounts of the components of pension expense that should be recognized by the company in 2020.
(Should be a a table that shows the components of pension expense)
Prepare the journal entry or entries to record pension expense and the employer’s contribution to the pension trustee in 2020.
Indicate the pension-related amounts that would be reported on
the income statement and the balance sheet for Carla Company for
the year 2020.
[Need Income Statement (partial), Comprehensive Income Statement,
and Balance Sheet (partial)]
In: Accounting
Assume the following sales took place during 2020 for a variety of individual capital assets for Ron (all normal capital assets with gains subject to 0%, 15%, or 20% tax rates).
|
Property purchase date |
Property sale date | Adjusted basis | Sale proceeds | Gain/Loss | Character of gain/loss |
| 12/6/2020 | 12/9/2020 | 1,000 | 1,060 | 60 | short term gain |
| 1/7/2000 | 6/15/2020 | 5,000 | 6,200 | 1,200 | long term gain |
| 11/6/2013 | 8/20/2020 | 5,000 | 4,200 | -800 | long term loss |
| 5/1/2020 | 10/31/2020 | 2,500 | 2,200 | -300 | short term loss |
| 6/8/2011 | 3/22/2020 | 8,600 | 10,000 | 1,400 | long term gain |
| 7/10/1999 | 1/19/2020 | 2,000 | 4,100 | 2,100 | long term gain |
| 3/16/2016 | 3/16/2020 | 5,300 | 6,000 | 700 | long term gain |
(I also want to make sure the characters of gain/loss and numbers are correct)
Second enter the information to the Form 8949
Column a: description of property, column b: date acquired, column c: date sold, column d: sales proceeds, column e: cost, column f: codes from instruction, column g:amount of adjustment, column h: gain or loss
In: Accounting
The following data relates to Rogers Company for the year ending December 31, 2020:
Net Income for 2020= $920,000
Preferred Stock= 10,000 shares of $100 par 8% cumulative preferred stock were outstanding throughout the year. The preferred stock is non-convertible
Common Stock= 300,000 shares of common stock were issued and outstanding throughout the year. No shares were issued or repurchased, and there were no stock splits or dividends.
Convertible Bonds= 12% convertible bonds at $4,000,000 face amount. (These bonds were issued in 2015 and they are convertible to a total of 120,000 common shares.
Stock Options=500,000 (These options were issued on July 1, 2020. Each option allows the option holder to purchase one common share for $20. The average market price of the common stock in 2020 was $32 a share.
Other information:
Rogers income tax rate for 2020 is 40%
Rogers did not declare or pay any dividends in 2020
Question:
a. What is Rogers "Income available to common shareholders" for 2020?
b. What is Rogers "Weighted average common shares outstanding" for 2020?
c. Compute Rogers Basic Earnings Per Share for 2020?
d. What will be the "Numerator Effect of the convertible bonds?
e. What will be the "Denominator Effect" of the convertible bonds?
f. What will be the "Numerator Effect" of the stock options?
g. What will be the "Denominator Effect" of the stock options?
h. Compute Rogers Diluted Earnings Per Share for 2020?
In: Accounting
Grocery workers are one of the essential workers in the time of COVID19 pandemic. One of the grocery workers are Costco workers. Suppose that the Costco company wants to hire more workers due to COVID 19 and Costco workers want to work fewer hours due to COVID 19. What will happen to equilibrium wage per hour of Costco workers and equilibrium number of hours of Costco workers? Analyze how equilibrium wage and number of working hours will change due to COVID 19 in three graphs because there may be three cases depending on the relative size of change in labor demand and labor supply. Label clearly Y-axis, X-axis, and two equilibrium points as E0 before COVID 19 and as E1 after COVID 19 and labor demand and supply as LD0 and LS0 before COVID 19 and labor demand and supply as LD1 and LS1 after COVID19. Show the change in equilibrium wage and working hours by arrows and summarize how these two (wage and working hours) changes in each case in words after drawing graphs
In: Economics
A company recently switched its compensation plan. Prior to the switch, salespeople were paid a higher salary, but their commission on each item sold was smaller. After the switch, the salary was less, but the commission for each item sold was larger. A complaint was lodged with HR with the threat of legal action claiming the sales team was making less money. The HR director examined the salaries of nine randomly selected salespeople. Their salaries ($1000’s) before and after the switch are shown in the table below.
Salesperson 1 2 3 4 5 6 7 8 9
Before 55 22 34 22 25 61 55 36 68
After 53 24 36 28 31 61 58 38 72
(a) Is there evidence that salaries decreased under the new compensation plan? Test at the 2.5% level of significance.
(b) Explain the meaning of the P-value in the context of the study.
(c) Explain the meaning of a Type I error in the context of the study.
(d) Explain the meaning of a Type II error in the context of the study.
In: Statistics and Probability
Grocery workers are one of the essential workers in the time of COVID19 pandemic. One of the grocery workers are Costco workers. Suppose that the Costco company wants to hire more workers due to COVID 19 and Costco workers want to work fewer hours due to COVID 19. What will happen to equilibrium wage per hour of Costco workers and equilibrium number of hours of Costco workers? Analyze how equilibrium wage and number of working hours will change due to COVID 19 in three graphs because there may be three cases depending on the relative size of change in labor demand and labor supply. Label clearly Y-axis, X-axis, and two equilibrium points as E0 before COVID 19 and as E1 after COVID 19 and labor demand and supply as LD0 and LS0 before COVID 19 and labor demand and supply as LD1 and LS1 after COVID19. Show the change in equilibrium wage and working hours by arrows and summarize how these two (wage and working hours) changes in each case in words after drawing graphs.
In: Economics