On February 28, 20X1, your company purchases a machine for $150,000 with an estimated useful life of last 10 years and a salvage value of $10,000. Your company uses SYD depreciation and depreciates assets purchased between the 1st and 15th of the month for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. What is 20X1 depreciation expense? $22,727 $27,273 $25,455 $21,212

Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31:

Record these transactions on page 10:

Record these transactions on page 11:

Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31:

Record these transactions on page 10:

Record these transactions on page 11:

CT13.4 Tom Epps and Mary Jones are examining the following statement of cash flows for Guthrie Company for the year ended January 31, 2020.

Tom claims that Guthrie’s statement of cash flows is an excellent portrayal of a superb first year with cash increasing $105,000. Mary replies that it was not a superb first year. Rather, she says, the year was an operating failure, that the statement is presented incorrectly, and that $105,000 is not the actual increase in cash. The cash balance at the beginning of the year was $140,000. Assume that all merchandise purchased has been sold.

Instructions

With the class divided into groups, answer the following.

1. a. Using the data provided, prepare a statement of cash flows in proper form using the indirect method. The only noncash items in the income statement are depreciation and the gain from the sale of the investment. (please explain how you get each value)
2. b. With whom do you agree, Tom or Mary? Explain your position.

Profit Center Responsibility Reporting for a Service Company

Thomas Railroad Company organizes its three divisions, the North (N), South (S), and West (W) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31:

The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer’s Department. The Treasurer’s Department and general corporate officers’ salaries are not controllable by division management. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the inventories of railroad cars. It makes sure the right freight cars are at the right place at the right time. The Treasurer’s Department conducts a variety of services for the company as a whole. The following additional information has been gathered:

Required:

1. Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations.

Feedback

1. Determine the dispatching rate per train by dividing service cost by output. For each division's dispatching cost, multiply the dispatching rate by the number of scheduled trains. Repeat this process for the other service department charges. Subtract the service department charges for a division from that division's income from operations before such charges.

2. What is the profit margin of each division? Round to one decimal place.

Identify the most successful region according to the profit margin.
West

3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?

1. The method used to evaluate the performance of the divisions should be reevaluated.
2. A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets).
3. A better divisional performance measure would be the residual income (income from operations less a minimal return on divisional assets).
4. None of these choices would be included.
5. All of these choices (a, b & c) would be included.

Question 3)The final grades in Math class of 80 students at State University are recorded in the accompanying table.

A.The given data set is in ascending order. If class interval size is 3 for the constructed 14 classes, find “m”.(Note: This section is not related with section B)

B.Construct a frequency table with 8 classes and find its frequencies.

i)Find median class

ii)Sketch the ogive curves by using either the cumulative frequency or the cumulative relative frequency.

iii)Using the ogive curve find the following probabilities:

P(x<76.5)=

P(x>88.5)=

P(x>84)=

P(x<90)=

P(74<x<92)=

P(x=78)=

iv)Find interquartile range (IQR)

v)Sketch box and whisker plot.

vi)Comment on skewness.

vii)The standard deviation and mean of another math class of 49 students from Technology University is 10.3 and 88.6, respectively. Compare the Math class in State University with Math class in Technology University, which one is more consistent? In other words which Math class has less spread of values around its mean? Show your work and explain why?Note: You can find the necessary parameters for the State University either from raw data given or from the frequency table you constructed.

3) On May 1, 2020, Vuitton Company established a petty cash fund by issuing a check for
€600
On May 31, 2020, petty cash fund was replenished when there is €35 cash in the fund, in
addition, these receipts were in the petty cash fund:
Freight-in
€300
Supplies Expense 205
Postage Expense 70
Prepare journal entry of replenishing the petty cash fund (entry of May 31):

1.   Kit Kat purchased $10,000 of US Treasury bonds at their face amount on January 1, 2019. Brokerage commission was $1,000. The bonds have an interest rate of 5% received semiannually June 30 and December 31.

• Journalize purchasing the bond and the first interest payment on June 30.

On December 31 Kit Kat sold the treasury bonds at 105, which is a price equal to 105% of their face amount.

• Journalize the sale of the bonds

2.    Homer Company purchases $18,000 of US Treasury bonds at their face amount on March 17, 2016, plus accrued interest for 45 days. The bonds have an interest rate of 6%, payable semiannually: July 31 and January 31.

On July 31, Homer Company receives a semiannual interest payment.

1. Homer Company’s accounting period ends on December 31 of each year, journalize the adjusting entry for accrued interest

On January 31, 2017, Homer received semiannual interest payment

On January 31, 2017 Homer company sells the Treasury bonds at 98, which is a price equal to 98% of their face amount

Journalize these transactions

3. On September 1, 1,550 shares of Jonny Top are acquired at a price of $24 per share plus a $40 brokerage commission.

On October 14, a $0.60 per share dividend was received on the Jonny Top stock.

On November 11, 775 shares of Jonny Top stock were sold for $20 per share less a $45 brokerage commission.

Prepare the journal entries for the original purchase, dividend, and sale.

4. Kit Kat purchased 40% interest in Jonny Cake corporation common stock on January 2, 2018 for $350,000.

On December 31 Jonny Cake reported net income of $105,000.

During the year, Jonny Cake declared and paid cash dividends of $45,000.

Kit Kat sold Jonny Cake’s stock on January 1, 2019 for $400,000.

Journalize these transactions for Kit Kat

5   On December 31, the cost of a company’s trading securities portfolio was $79,200, and the fair value was $76,800.

On December 31, the cost of a company’s trading securities portfolio was $80,200, and the fair value was $82,800.

Prepare the December 31 adjusting entries to record the unrealized gain or loss on trading investments.