On January 1, 2018, Wright Transport sold four school buses to
the Elmira School District. In exchange for the buses, Wright
received a note requiring payment of $526,000 by Elmira on December
31, 2020. The effective interest rate is 7%. (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.):
Required:
1. How much sales revenue would Wright
recognize on January 1, 2018, for this transaction?
2. Prepare journal entries to record the sale of
merchandise on January 1, 2018 (omit any entry that might be
required for the cost of the goods sold), the December 31, 2018,
interest accrual, the December 31, 2019, interest accrual, and
receipt of payment of the note on December 31, 2020.
Required 1: How much sales revenue would Wright recognize on January 1, 2018, for this transaction? (Round your final answer to nearest whole number.)
|
Required 2: - Record the sale of goods on January 1, 2018 in exchange for the long term note.
- Record the interest accrual on December 31, 2018.
- Record the interest accrual on December 31, 2019.
- Record the interest revenue in 2020 and collection of the note.
In: Accounting
On January 1, 2016, Sunland Corporation acquired equipment costing $73,280. It was estimated at that time that the equipment would have a useful life of eight years and no residual value. The company uses the straight-line method of depreciation for its equipment, and its year end is December 31.
1. Calculate the equipment’s accumulated depreciation and carrying amount at the beginning of 2018.
---Equipment’s accumulated depreciation =
----Carrying amount=
2.What is the amount of the gain or loss that would arise when a quarter of the equipment was sold on January 1, 2018, for cash proceeds of $19,760?
gain / loss ? from sale of equipment =?
3. What is the depreciation expense for January 1, 2018, to October 31, 2018? Depreciation expense=
4.On November 1, 2018, the company purchased additional equipment for $9,600 that also had a useful life of eight years and no residual value. What is the depreciation for the two months ending December 31, 2018? Total depreciation for 2 months=
5. On December 31, 2018, the company sold some equipment for a loss of $3,020. After recording the sale, the balances in the Equipment account and Accumulated Depreciation account were $52,760 and $14,418, respectively. Based on this information, what were the proceeds received when this equipment was sold?
Cash proceeds from sale =
In: Accounting
Parent Company owns a controlling share of Subsidiary company's common stock. During 2017 and 2018, Parent sold inventory to Subsidiary company. The sales and cost of sales information are detailed below. There were no intercompany sales prior to 2017. In both 2017 and 2018, Subsidiary sold 80% of the intercompany inventory purchased in that year. In 2018, all the beginning inventory was sold first.
Ownership Percentage 75%
2017 intercompany sales $550,000
2018 intercompany sales $470,000
2017 Cost of Goods Sold $350,000
2018 Cost of Goods Sold $310,000
A) Record all 2017 elimination entries necessary due to the inventory transactions.
B) Record all 2018 elimination entries necessary due to the inventory transactions.
I think I know the entries so far, but getting the numbers is what is tripping me up.
For 2017 entries:
Debit Sales, Credit COGS then Debit COGS Credit Inventory - Bal Sheet
And for 2018.... Debit Beg R/E and Credit COGS (and then Debit Sales Credit COGS and Debit COGS and Credit Inventory???)
A little confused here... I think because the wording is different than the questions my professor went over in the powerpoint. Any help is appreciated. Thanks in advance!
In: Accounting
Oriole Ltd. purchased a new machine on April 4, 2014, at a cost of $ 184,000. The company estimated that the machine would have a residual value of $ 16,000. The machine is expected to be used for 10,500 working hours during its four-year life. Actual machine usage was1,500 hours in 2014; 2,400 hours in 2015; 2,500 hours in 2016; 2,100 hours in 2017; and 2,000 hours in 2018. Oriole has a December 31 year end.
Calculate depreciation for the machine under each of the following methods:
Straight-line for 2014 through to 2018.
| 2014 expense | $ enter a dollar amount | ||
|---|---|---|---|
| 2015 expense | $ enter a dollar amount | ||
| 2016 expense | $ enter a dollar amount | ||
| 2017 expense | $ enter a dollar amount | ||
| 2018 expense |
$ |
Diminishing-balance using double the straight-line rate for 2014
through to 2018.
| 2014 expense | $ enter a dollar amount | ||
|---|---|---|---|
| 2015 expense | $ enter a dollar amount | ||
| 2016 expense | $ enter a dollar amount | ||
| 2017 expense | $ enter a dollar amount | ||
| 2018 expense | $ enter a dollar amount |
(3) Units-of-production for 2014 through to
2018.
| 2014 expense | $ enter a dollar amount | ||
|---|---|---|---|
| 2015 expense | $ enter a dollar amount | ||
| 2016 expense | $ enter a dollar amount | ||
| 2017 expense | $ enter a dollar amount | ||
| 2018 expense | $ |
In: Accounting
Jamdown & Associates Ltd produces two products, Glam120 and Glam220. The following table provides information on budgeted production for 2018:
Production Forecast
|
Product |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
Total |
|
Glam120 |
5,000 |
6,000 |
4,800 |
5,500 |
21,300 |
|
Glam220 |
6,500 |
4,600 |
5,400 |
6,200 |
22,700 |
Notes:
It is the company’s policy to have stock on hand at the end of each quarter equaling to 10% of production for the next quarter.
Budgeted production for the first quarter of 2019 were: Glam120, 7,000 units and Glam220, 5,800 units.
During 2018, the company plans to sell one unit of Glam120 for $600 and one unit of Glam220 for $700.
Management has forecasted that variable overhead cost per unit for Glam120 and Glam200 would be $100 and $120 respectively during 2018, while fixed overheads for the same period were estimated to be $2,400,000 and would be incurred in equal amounts quarterly.
Required:
Calculate the number of units to be sold for both products during each quarter of 2018.
Prepare the sales budget for 2018.
Prepare the overhead cost budget for the four quarters in 2018.
Explain what is meant by a limiting budget factor.
Describe two limiting factors that could influence the achievement of Jamdown & Associates profit objectives for 2018.
In: Accounting
Jamdown & Associates Ltd produces two products, Glam120 and Glam220. The following table provides information on budgeted production for 2018:
Production Forecast
|
Product |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
Total |
|
Glam120 |
5,000 |
6,000 |
4,800 |
5,500 |
21,300 |
|
Glam220 |
6,500 |
4,600 |
5,400 |
6,200 |
22,700 |
Notes:
It is the company’s policy to have stock on hand at the end of each quarter equaling to 10% of production for the next quarter.
Budgeted production for the first quarter of 2019 were: Glam120, 7,000 units and Glam220, 5,800 units.
During 2018, the company plans to sell one unit of Glam120 for $600 and one unit of Glam220 for $700.
Management has forecasted that variable overhead cost per unit for Glam120 and Glam200 would be $100 and $120 respectively during 2018, while fixed overheads for the same period were estimated to be $2,400,000 and would be incurred in equal amounts quarterly.
Required:
Calculate the number of units to be sold for both products during each quarter of 2018.
Prepare the sales budget for 2018.
Prepare the overhead cost budget for the four quarters in 2018.
Explain what is meant by a limiting budget factor.
Describe two limiting factors that could influence the achievement of Jamdown & Associates profit objectives for 2018.
In: Accounting
WellmanWellman
Insurance purchased
$50,000
of
8%
KLP
bonds on January 1,
2018,
at a price of
92
when the market rate of interest was
10%.
WellmanWellman
intends to hold the bonds until their maturity date of January 1,
2023.
The bonds pay interest semiannually on each January 1 and July 1.
Wellman
recorded the following journal entries on January 1,
2018
and July 1,
2018:
Make the adjusting entries that
WellmanWellman
Insurance would need to make on December 31,
20182018,
related to the investment in
KLP
bonds. (Record debits first, then credits. Exclude explanations from any journal entries.)First, record the entry for the interest receivable at December 31,
2018.
|
Journal Entry |
||||
|
Date |
Accounts |
Debit |
Credit |
|
|---|---|---|---|---|
|
Dec |
31 |
|||
Now record the entry for the amortization of bond discount at December 31,
2018.
|
Journal Entry |
||||
|
Date |
Accounts |
Debit |
Credit |
|
|---|---|---|---|---|
|
Dec |
31 |
|||
How would the bonds be reported on
WellmanWellman
Insurance's balance sheet as of December 31,
2018?
(Abbreviation used: AFSS = available-for-sale security)
|
The balance sheet reports |
of $ |
as a |
. |
||||
|
Also, the balance sheet will include the |
of $ |
. |
|||||
What amount of interest revenue would be reported on
WellmanWellman
Insurance's income statement for the year ended December 31,
2018,
related to the
KLP
bonds?
|
The income statement reports |
of $ |
. |
In: Accounting
Exercise 22-20
The before-tax income for Tamarisk Co. for 2017 was $98,000 and
$80,300 for 2018. However, the accountant noted that the following
errors had been made:
| 1. | Sales for 2017 included amounts of $41,300 which had been received in cash during 2017, but for which the related products were delivered in 2018. Title did not pass to the purchaser until 2018. | |
| 2. | The inventory on December 31, 2017, was understated by $7,800. | |
| 3. | The bookkeeper in recording interest expense for both 2017 and 2018 on bonds payable made the following entry on an annual basis. |
|
Interest Expense |
18,200 |
|
|
Cash |
18,200 |
| The bonds have a face value of $260,000 and pay a stated interest rate of 7%. They were issued at a discount of $14,000 on January 1, 2017, to yield an effective-interest rate of 8%. (Assume that the effective-yield method should be used.) |
| 4. | Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2017 and 2018. Repairs in the amount of $8,200 in 2017 and $9,300 in 2018 were so charged. The company applies a rate of 10% to the balance in the Equipment account at the end of the year in its determination of depreciation charges. |
Prepare a schedule showing the determination of corrected income
before taxes for 2017 and 2018.
In: Accounting
In: Statistics and Probability
I. Solve the homogeneous differential equations with the constant coefficient.
a. ? ′′ + 5? ′ + 6? = 0
b. 4? ′′ − 8? ′ + 3? = 0 ? (0) = 2, ? ′ (0) = ½
II. Solve non-homogeneous differential equations with the indeterminate coefficient method.
a. ?′′ − 3? ′ = 5cos(?)
b. ? ′ ′ + 5? ′ + 2? ′ = 7? 3?
III. Solve non-homogeneous differential equations with the parameter variation method.
a. ? ′′ − 2? ′ + 3? = ? 2? ? 2
b. ? ′′ − ? = 3??(?)
IV. Solve non-homogeneous differential equations by the operator’s method.
a. 3? ′′ + 3? ′ + ? = √?? −?
b. 6? ′′ − 2? ′ + ? = ? 2
In: Civil Engineering