On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable costing concept:

Prepare an income statement under absorption costing. Round all final answers to whole dollars.

Foyert Corp. requires a minimum $7,600 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $7,600 and the company has an outstanding loan of $3,600. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.

Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)

C1.          On October 15, our company has executed a purchase order for new equipment to be purchased from a supplier in Denmark for a purchase price of DKK 1.2 million. The equipment is deliverable on March 31. In order to hedge the commitment to pay DKK1.2 million, we enter into a forward exchange contract on October 15 to receive DKK1.8 million on March 31 at an exchange rate of $0.17: DKK1. Assume the following exchange gates:

Required: Prepare the journal entries to record the following:

• Execution of the purchase order and forward contract
• Adjusting entries at December 31

Receipt of equipment and payment to equipment supplier on March 31.

Marko Company sold spray paint equipment to Spain for 4,000,000 pesetas (P) on October 1, with payment due in six months. The exchange rates were

Required:
a. Did the dollar strengthen or weaken relative to the peseta during the period from October 1 to December 31? Did it strengthen or weaken between January 1 and April 1 of the next year?

b. Prepare all required journal entries for Marko as a result of the sale and settlement of the foreign transaction, assuming that its fiscal year ends on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot’s credit terms are n/30. As of the end of business on October 31, the following accounts receivable were past due:

Determine the number of days each account is past due as of October 31.

Marshall Department Stores has budgeted sales revenues as follows:

     Credit sales        July     $250,000

                         August   190,000

                         September 150,000

                         October 140,000

In the past, 69% of the credit sales were collected in the month of sale, 21% were collected in the first month following the sale and 10% in the second month following the sale. Purchases of inventory are all on credit and 28% is paid in the month of purchase and 72% in the month following purchase. Budgeted inventory purchases are:

                  July            $200,000  

                  August          100,000

                  September        125,000

                  October          150,000

     Other cash disbursements budgeted: (a) selling and administrative

     expenses of $20,000 each month, (b) dividends of $45,000 will be

     paid in September, and (c) purchase of a used van in October for $60,000

     cash.

     The company wishes to maintain a minimum cash balance of $50,000 at

     the end of each month. Borrowed money is repaid in months when there is an

     excess cash balance. The beginning cash balance on September 1 was $50,000.

    If money is borrowed, ignore interest

     INSTRUCTIONS

     (a) Prepare separate schedules for (1) expected collections from customers

         and (2)expected payments for purchases of inventory. SHOW ALL

         CALCULATIONS.

     (b) Prepare a cash budget for the months of September and October.

Compound Interest

22.) You borrow 1,000,000 for one year from a friend at an interest rate of 1% per month instead of taking a loan from a bank at a rate of 13% per year. Compare how much money you will save or lose on the transaction.

24.) John expects to receive Php 20,000 in 10 years. How much is the money worth now considering interest at 6% compounded quarterly?

25.) A man who won P 500,000 in a lottery decided to place 50% of his winning in a trust fund for the college education of his son. If the money will earn 14% per year compounded quarterly, how much will the man have at the end of 10 years when his son will be starting his college education?

26.) Rex borrowed a certain amount on October 1990 from Jason. Two years later, Rex borrowed again from Jason an amount of P500. Rex paid P200 on October 1993and discharged his balance by paying P700 on October 1995 What was the amount borrowed by Rex on October 1990 if the interest rate is 8% compounded annually?

Company manufactures car seats in its plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The​ process-costing system at

Hoffman

Company has a single​ direct-cost category​ (direct materials) and a single​ indirect-cost category​ (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car​ seat, it is immediately transferred to testing. Hoffman Company uses the FIFO method of process costing.

aDegree of​ completion: direct​ materials, ?%; conversion​ costs, 45​%.

bDegree of​ completion: direct​ materials, ?%; conversion​ costs, 65​%.

Construction of a new building began on April 1 and was completed on October 29. Construction expenditures were as follows:

MMI borrowed $5,000,000 at 6% on April 1 to help finance construction. This loan, plus interest, will be paid in 2022. The company also had a $6,650,000, 8% long-term note payable outstanding throughout 2021.

Weighted Average Accumulated Expenditures were: [Round expenditure to nearest dollar]

Construction of a new building began on April 1 and was completed on October 29. Construction expenditures were as follows:

MMI borrowed $5,000,000 at 6% on May 1 to help finance construction. This loan, plus interest, will be paid in 2022. The company also had a $6,650,000, 8% long-term note payable outstanding throughout 2021.

Avoidable interest on the building was:

[Hint: Lesser of Avoidable or Actual Interest is capitalized.]

The building would be recorded on the balance sheet as:

Please take the following transactions and complete the following:

Prepare the Balance Sheet, Income Statement and Statement of Cash Flows as of and for the period ending December 31, 2019.

The following are the transactions for DML, Inc. who opened their manufacturing facility on October 1, 2018.

A) Sold $25,000 of Common Stock to a number of different investors on October 1, 2019.

B) Purchased a 1-year General Liability Insurance Policy on October 2, for $1,500.

C) Paid a total of $6,000 for six months of rent in advance on October 1, 2019.

D) Borrowed $12,000 from TD Bank on 10/2/19. Payment is due on September 30, 2019. The interest rate is 6% compounding annually.

E) Purchased $12,000 in manufacturing Equipment on 10/3/19. The equipment will be depreciated for 10 years.

F) Received $15,000 in advance for material it will deliver to a customer in January, 2020.

G) Paid Utilities of $1,000, $1,200, and $1,100 for Utilities in October, November, and December, respectively.

H) Paid $12,000 in salaries during the quarter.

I) Purchased $10,000 of inventory on account in November.

J) Sold $25,000 of finished goods to customers. $15,000 was received by December 31, 2019. The remainder was still due to DML, Inc. at December 31, 2019.

K) Paid $6,000 towards the inventory purchased by December 31, 2019.

L) A dividend of $500 was paid on December 20, 2019. M) After preparing these entries in A) to L) adjust those accounts that are required