Closing the Balances in The Variance Accounts at the End of the Year

Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end:

Unadjusted Cost of Goods Sold equals $1,590,000, unadjusted Work in Process equals $296,000, and unadjusted Finished Goods equals $240,000.

Required:

1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cost of Goods Sold. Note: Close the variances with a debit balance first. If an amount box does not require an entry, leave it blank or enter "0".

What is the adjusted balance in Cost of Goods Sold after closing out the variances?

$

2. What if any ending balance in a variance account that exceeds $8,000 is considered material? (a) Close the immaterial variance accounts to Cost of Goods Sold. (b) Prorate the largest of the labor variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. (c) Prorate the largest of the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is $1,060,000, the prime cost in Work in Process is $164,000, and the prime cost in Finished Goods is $133,000. If an amount box does not require an entry, leave it blank or enter "0".

Note: Round all interim calculations to three decimal places, and round your final answers to the nearest dollar. Adjust credit entry for rounding to ensure debits equal credits in journal entry.

What are the adjusted balances in Work in Process, Finished Goods, and Cost of Goods Sold after closing out all variances?

The E.N.D. partnership has the following capital balances as of the end of the current year:

Answer each of the following independent questions:

1. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $226,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners?

2. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $350,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)

1. What is the present value of $2,625 per year at a discount rate of 8%, if the first payment is received six years from now and the last payment is received 20 years from now?

PLEASE USE excel

The balance of Landy ​Corporation's accounts payable at the beginning of the most recent year was $ 50,000. At the end of the​ year, the accounts payable balance was $ 54,000. Landy's sales revenue for the year was $ 3,105,000​, while its cost of goods sold for the year was $ 1,508,000. Calculate Landy's ​days' payable outstanding​ (DPO) for the year. Assume inventory levels are constant throughout the year. If the credit terms from Landy's suppliers are​ n/30, how would you interpret Landy's ​DPO?

Suppose the mean income of firms in the industry for a year is 25 million dollars with a standard deviation of 9 million dollars. If incomes for the industry are distributed normally, what is the probability that a randomly selected firm will earn less than 34 million dollars? Round your answer to four decimal places.

You invest $12,500 in Fund VSML at the start of the year. The fund has a front-end load of 3% and an annual expense fee of 2.25% of the ending asset value at year end. You expect the fund to have a gross rate of return of 8% this year. With your investment, what is your expected value in one year?

A.        Under $12,250
B.         Between $12,250 and $12,500
C.         Between $12,500 and $12,750
D.        Between $12,750 and $13,000
E.         Over $13,000

Ans:

4.         Investor demand for the shares determines the number of shares outstanding in a(n) __________.

A.        general partnership
B.         limited partnership
C.         open-end mutual fund
D.        REIT
E.         closed-end mutual fund

5.         Fees considered “12b-1 fees” are:

A.        fees that investment companies must pay to the SEC.
B.        fees charged by some mutual funds, due to distribution and marketing costs.
C.        up-front “load” fees, charged by some mutual funds.
D.        back-end “load” fees, charged by some mutual funds.
E.         fees charged by mutual funds, to compensate the portfolio manager

An investor is considering the purchase of a 2 year bond with a 5.5% coupon rate, with interest paid annually. Assuming the following sequence of spot rate: 1 year , 4% and 2 year, 3% the yield to maturity of the bond is:
A. 3.5%
B. 3.03 %
C. 3.98%

The directors of a company are considering the company’s draft financial statements for the year ended 31 December 2017.

The following material points are unsolved:

a. From past experience, the management estimated that 6% of trade receivables were uncollectible.

b. Land is measured using the revaluation model. In February 2018, the company received confirmation that land has a fair value increase of $10,500 million at 31 December 2017. Land is not subject to depreciation.

c. The balance on current tax in the trial balance (Debit 4,800 million) represents the under/over provision of tax liability of the previous year. Current tax expense amount is estimated to be $2,700 million. The tax consultant advised that the deferred tax liability balance (including the tax effects of item b) should be $7,400 million at 31 December 2017. Corporate tax rate is 20%.

With reference to relevant International Accounting Standards,

Explain whether each of the above items (a) to (c) should be included in the financial statements for the year ended 31 December 2017. If the answer is yes, what should be the adjustment /amount that would appear in the financial statements? (Note: the items do   not carry equal weighting).

On January 8 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,399,500; $322,000 was allocated to the basis of the land and the remaining $1,077,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

d. Answer the question in part (a), except assume that the building is residential property.

For 2016, Clapton Company reported a decline in net income. At the end of the year, S. Hand, the president, is presented with the following condensed comparative income statement:

Income Statement

Prepare a comparative income statement with horizontal analysis for the two-year period, using 2015 as the base year. Use the minus sign to indicate an amount or percent decrease. If required, round percentages to one decimal place.

Final Question

To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis.

Net income has from 2015 to 2016. Sales have ; however, the cost of goods sold has by a percentage, causing the gross profit to at a slower pace than sales.