NutraLabs, Inc., leased a protein analyzer to Werner Chemical, Inc., on September 30, 2018. NutraLabs manufactured the machine at a cost of $4.75 million. The five-year lease agreement calls for Werner to make quarterly lease payments of $401,337, payable each September 30, December 31, March 31, June 30, with the first payment at September 30, 2018. NutraLabs’ implicit interest rate is 12%.
1. Determine the price at which NutraLabs is
“selling” the equipment (present value of the lease payments) at
September 30, 2018.
2. What pretax amounts related to the lease would
NutraLabs report in its balance sheet at December 31, 2018?
3. What pretax amounts related to the lease would
NutraLabs report in its income statement for the year ended
December 31, 2018?
4. What pretax amounts related to the lease would
NutraLabs report in its statement of cash flows for the year ended
December 31, 2018?
In: Accounting
Exercise 22-11
Bridgeport Co. purchased a equipment on January 1, 2015, for
$511,500. At that time, it was estimated that the equipment would
have a 10-year life and no salvage value. On December 31, 2018, the
firm’s accountant found that the entry for depreciation expense had
been omitted in 2016. In addition, management has informed the
accountant that the company plans to switch to straight-line
depreciation, starting with the year 2018. At present, the company
uses the sum-of-the-years’-digits method for depreciating
equipment.
Prepare the general journal entries that should be made at December
31, 2018, to record these events. (Ignore tax effects.)
(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.)
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Date |
Account Titles and Explanation |
Debit |
Credit |
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Dec. 31, 2018 |
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(To correct for the omission of depreciation expense in 2016.) |
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Dec. 31, 2018 |
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(To record depreciation expense for 2018.) |
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In: Accounting
Diaz Company issued $101,000 face value of bonds on January 1, 2018. The bonds had a 8 percent stated rate of interest and a ten-year term. Interest is paid in cash annually, beginning December 31, 2018. The bonds were issued at 99. The straight-line method is used for amortization.
Required
Use a financial statements model like the one shown below to demonstrate how (1) the January 1, 2018, bond issue and (2) the December 31, 2018, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company’s financial statements.
Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, 2018.
Determine the amount of interest expense reported on the 2018 income statement.
Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, 2019.
Determine the amount of interest expense reported on the 2019 income statement.
In: Accounting
For each of the two companies, analyse their ability to successfully manage each of their categories of expenses in 2019 as compared to 2018. Use three profit margin ratios to support your answer and explain any change in the ability of each company to control costs. Note: ensure that you analyse in this question, not just describe the ratio values. (300 words)
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ZEN |
CEN |
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Gross profit margin |
2018: 51,429,000 - 22,882,000 / 51,429,000 x 100 = 55.50 2019: 55,037,000 - 23,715,000 / 55,037,000 x 100 = 56.91 |
2018: 1,974,685,866 - 1,362,927,633 / 1,974,685,866 x 100= 30.98 2019: 2,337,029,248 - 2,601,988,144 / 2,337,029,248 x 100 = -11.34 |
|
Operating profit margin |
2018: 14,130,000 / 51,429,000 = 0.2747477104. 0.2747477104 x 100 = 27.47 2019: 12,533,000 / 55,037,000 = 0.2277195. |
2018: 217,371,365 / 1,974,685,866 = 0.1100789. 0.1100789 x 100 = 11.01 2019: 288,663,735 / 2,337,029,248 = 0.12351738. 0.12351738 x 100 = 12.35 |
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Net profit margin |
2018: 8,473,000 / 51,429,000 = 0.1647514. 0.1647514 x 100 = 16.48 2019: 5,814,000 / 55,037,000 = 0.105638. 0.105638 x 100 = 10.56 |
2018: 102,724,020 / 1,974,685,866 = 0.05202 0.05202 x 100 = 5.20 2019: 155,801,949 / 2,337,029,248 = 0.06666 0.06666 x 100 = 6.67 |
In: Accounting
Kim and Kim (K&K) Company’s balance sheet at December 31, 2017, reported the following
Accounts receivable............................................................... $2,000,000
Allowance for uncollectible accounts.....................................$0.00 DR
Requirements:
1. What was the net realizable value of these receivables at December 31, 2017?
2. Journalize, without explanations, 2018 entries for Kim and Kim Company:
a. Total credit sales for 2018 were $1,200,000; 2% of sales were estimated to be uncollectible.
b. K&K Company received cash payments on account during 2018 of $780,000.
c. Accounts receivable identified to be uncollectible totaled $38,000.
d. December 31, 2018, the aging of receivables indicates that $43,000 of the receivables is uncollectible (target balance).
3. Post the transactions to the Accounts receivable and the Allowance for uncollectible accounts T-accounts. Calculate and report K&K’s receivables and related allowance on the December 31, 2018 balance sheet.
4. What is the net realizable value of receivables at December 31, 2018?
5. How much is the uncollectible account expense for 2018?
I need my values I wrotten here to remain the same please. also i would like the answers for all the questions because this isnone question
In: Accounting
Allmond Corporation, organized on January 3, 2018, had pretax
accounting income of $15 million and taxable income of $23 million
for the year ended December 31, 2018. The 2018 tax rate is 40%. The
only difference between accounting income and taxable income is
estimated product warranty costs. Expected payments and scheduled
tax rates (based on recent tax legislation) are as
follows:
| 2019 | $ | 3 million | 30 | % |
| 2020 | 1 million | 30 | % | |
| 2021 | 2 million | 30 | % | |
| 2022 | 2 million | 25 | % | |
Required:
1. Determine the amounts necessary to record
Allmond’s income taxes for 2018 and prepare the appropriate journal
entry.
Determine the amounts necessary to record Allmond’s income taxes for 2018. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Enter all amounts as positive values.)
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Record 2018 income taxes.
2. What is Allmond’s 2018 net income?
In: Accounting
Vibrant Company had $910,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $505,000 in each of those years. It also maintained a $210,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $190,000 rather than the correct $210,000.
Determine the correct amount of the company's gross profit in each of the years 2016−2018.
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Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.
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In: Accounting
Edison Leasing leased high-tech electronic equipment to
Manufacturers Southern on January 1, 2018. Edison purchased the
equipment from International Machines at a cost of $139,107. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
| Related Information: | |
| Lease term | 2 years (8 quarterly periods) |
| Quarterly rental payments | $18,000 at the beginning of each period |
| Economic life of asset | 2 years |
| Fair value of asset | $139,107 |
| Implicit interest rate | 4% |
| (Also lessee’s incremental borrowing rate) | |
Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2019. Edison’s fiscal year ends December 31.
1. 1/1/2018 Record the lease.
2. 1/1/2018 Record cash received
3. 4/1/2018 Record cash received.
4. 7/1/2018 Record cash received.
5. 10/1/2018 Record cash received.
6. 12/31/2018 Record interest receivable.
7. 1/1/2019 Record cash received.
In: Accounting
Benjamin, Inc., operates an export/import business. The company has considerable dealings with companies in the country of Camerrand. The denomination of all transactions with these companies is alaries (AL), the Camerrand currency. During 2017, Benjamin acquires 22,000 widgets at a price of 8 alaries per widget. It will pay for them when it sells them. Currency exchange rates for 1 AL are as follows:
| September 1, 2017 | $ | 0.48 | |
| December 1, 2017 | 0.42 | ||
| December 31, 2017 | 0.50 | ||
| March 1, 2018 | 0.43 | ||
(Input all amounts as positive values.)
Effect of Exchange Rate Fluctuations
a.2017
2018
b.2017
c.2017
2018
In: Accounting
Comparative data for the “I Told You So Company” for the two-year period 2017-2018 are presented below.
|
Income Statement Data |
||
|
2018 |
2017 |
|
|
Net Sales |
$1,500,000 |
$1,200,000 |
|
Cost of Goods Sold |
934,000 |
741,000 |
|
Gross Profit |
$ 566,000 |
$ 459,000 |
|
Operating Expense |
376,000 |
277,000 |
|
Operating Income |
$ 190,000 |
$ 182,000 |
|
Other Expense (interest) |
15,000 |
12,000 |
|
Earnings Before Income Tax |
$ 175,000 |
$ 170,000 |
|
Income Taxes |
66,000 |
71,000 |
|
Net Income Earnings per share 2018 = $ 4.00 2017 = $3.50
|
$ 109,000 |
$ 99,000 |
|
Dividends Paid |
48,000 |
42,000 |
|
Net Increase in Retained Earnings |
$ 61,000 |
$ 57,000 |
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Balance sheet Data Acct 742 Final page 12 |
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|
Assets |
2018 |
2017 |
|
Cash |
$ 30,000 |
$ 10,000 |
|
Receivables (net) |
130,000 |
90,000 |
|
Inventory |
170,000 |
113,000 |
|
Land, Buildings, and Equipment (net) |
650,000 |
547,000 |
|
Intangible Assets |
20,000 |
20,000 |
|
$1,000,000 |
$780,000 |
|
|
Liabilities and Stockholders' Equity |
2018 |
2017 |
|
Trade Notes and Accounts Payable |
$ 100,000 |
$ 40,000 |
|
Miscellaneous Current Liabilities |
50,000 |
11,000 |
|
5% Bonds Payable |
300,000 |
240,000 |
|
Common Stock, $10 Par |
100,000 |
100,000 |
|
Additional Paid-In Capital |
51,000 |
51,000 |
|
Retained Earnings |
399,000 |
338,000 |
|
$1,000,000 |
$780,000 |
|
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Continued on next page |
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Market price of stock end-of-each year repsecitively: $81 $68 |
Acct 742 Final page 13 |
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In: Accounting