XYZ Company began operations on January 1, 2020. The company has the following items included in the owners' equity section of its balance sheet. 8% Preferred Stock, $100 par, 100,000 shares authorized, 25,000 shares issued and outstanding $2,500,000 Common Stock, $3 par, 500,000 shares authorized; 150,000 shares issued and outstanding 450,000 Additional paid-in capital 2,250,000 Total dividends declared and paid were: 2020 $170,000 2021 210,000 2022 240,000 A. Referring to the information above, if XYZ Company's preferred stock were CUMULATIVE, provide the dividends paid for 2022: 6 points, show your work for credit: Preferred Shareholders Common Shareholders 2022 B. Provide the payments for 2021 assuming XYZ Company's preferred stock is noncumulative, 4 pts:
In: Accounting
Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Windsor Company. The following information relates to this agreement.
| 1. | The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. | |
| 2. | The fair value of the asset at January 1, 2020, is $59,000. | |
| 3. | The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $4,000, none of which is guaranteed. | |
| 4. | The agreement requires equal annual rental payments of $19,211 to the lessor, beginning on January 1, 2020. | |
| 5. | The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee. | |
| 6. | Windsor uses the straight-line depreciation method for all equipment. |
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.)
|
WINDSOR COMPANY (Lessee) |
||||||||
|---|---|---|---|---|---|---|---|---|
|
Date |
Annual Lease |
Interest on |
Reduction of Lease |
Lease Liability |
||||
|
1/1/20 |
||||||||
|
1/1/20 |
||||||||
|
1/1/21 |
||||||||
|
1/1/22 |
||||||||
Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
enter an account title To record the lease |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record the lease |
enter a debit amount |
enter a credit amount |
|
|
(To record the lease) |
|||
|
enter an account title To record lease payment |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record lease payment |
enter a debit amount |
enter a credit amount |
|
|
(To record lease payment) |
|||
|
enter an account title To record interest expense |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record interest expense |
enter a debit amount |
enter a credit amount |
|
|
(To record interest expense) |
|||
|
enter an account title To record amortization of the right-of-use asset |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record amortization of the right-of-use asset |
enter a debit amount |
enter a credit amount |
|
|
(To record amortization of the right-of-use asset) |
|||
|
enter an account title To reverse interest expense |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To reverse interest expense |
enter a debit amount |
enter a credit amount |
|
|
(To reverse interest expense) |
|||
|
enter an account title To record lease payment |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record lease payment |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record lease payment |
enter a debit amount |
enter a credit amount |
|
|
(To record lease payment) |
|||
|
enter an account title To record interest expense |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record interest expense |
enter a debit amount |
enter a credit amount |
|
|
(To record interest expense) |
|||
|
To record amortization of the right-of-use asset |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record amortization of the right-of-use asset |
enter a debit amount |
enter a credit amount |
|
|
(To record amortization of the right-of-use asset) |
In: Accounting
Kang Company was organized on April 1, 2020. The company
prepares quarterly financial statements. The adjusted trial balance
amounts at June 30 are shown below (amounts in millions).
|
Debit |
Credit |
|
Cash ₩ 6,700 |
Accumulated Depreciation – |
|
Accounts Receivable 600 |
Equipment ₩ 850 |
|
Prepaid Rent 900 |
Notes Payable 5,000 |
|
Supplies 1,000 |
Accounts Payable 1,510 |
|
Equipment 15,000 |
Salaries and Wages Payable 400 |
|
Dividends 600 |
Interest Payable 50 |
|
Salaries and Wages Expense 9,400 |
Unearned Rent Revenue 500 |
|
Rent Expense 1,500 |
Share Capital-Ordinary 14,000 |
|
Depreciation Expense 850 |
Service Revenue 14,200 |
|
Supplies Expense 200 |
Rent Revenue 800 |
|
Utilities Expense 510 |
|
|
Interest Expense 50 |
|
|
₩ 37,310 |
₩ 37,310 |
In: Accounting
Laura Leasing Company signs an agreement on January 1, 2020, to
lease equipment to Marigold Company. The following information
relates to this agreement.
| 1. | The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. | |
| 2. | The fair value of the asset at January 1, 2020, is $73,000. | |
| 3. | The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $10,000, none of which is guaranteed. | |
| 4. | The agreement requires equal annual rental payments of $22,213.44 to the lessor, beginning on January 1, 2020. | |
| 5. | The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee. | |
| 6. | Marigold uses the straight-line depreciation method for all equipment. |
Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 2 decimal places, e.g. 5,265.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
In: Accounting
Laura Leasing Company signs an agreement on January 1, 2020, to
lease equipment to Novak Company. The following information relates
to this agreement.
|
1. |
The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. |
|
|
2. |
The fair value of the asset at January 1, 2020, is $74,000. |
|
|
3. |
The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $8,000, none of which is guaranteed. |
|
|
4. |
The agreement requires equal annual rental payments of $22,886.45 to the lessor, beginning on January 1, 2020. |
|
|
5. |
The lessee’s incremental borrowing rate is 4%. The lessor’s implicit rate is 3% and is unknown to the lessee. |
|
|
6. |
Novak uses the straight-line depreciation method for all equipment. |
Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 2 decimal places, e.g. 5,265.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
In: Accounting
Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with payment of 16,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 16,000 dinars on March 1, 2021. The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows: Date Spot Rate Forward Rate (to March 1, 2021) December 1, 2020 $ 2.70 $ 2.775 December 31, 2020 2.80 2.900 March 1, 2021 2.95 N/A Icebreaker must close its books and prepare financial statements at December 31. Company purchases materials from a foreign supplier on December 1, 2020, with payment of 16,000 dinars to be made on March 1, 2021. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2020, Brandlin enters into a forward contract to purchase 16,000 dinars on March 1, 2021.
a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars. a-2. What is the impact on 2020 net income? a-3. What is the impact on 2021 net income? a-4. What is the impact on net income over the two accounting periods? b-1. Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars. b-2. What is the impact on net income in 2020 and in 2021? b-3. What is the impact on net income over the two accounting periods?
Journal Entries for a-1: Record the purchase of materials. Record the forward contract. Record the entry to revalue the foreign currency account payable. Record the change in the fair value of the forward contract. Record the foreign exchange gain or loss on the forward contract. Record the amortization of the forward contract premium or discount. Record the entry to revalue the foreign currency account payable. Record the entry to adjust the carrying value of the forward contract to its current fair value. Record the foreign exchange gain or loss on the forward contract. Record the amortization of the forward contract premium or discount. Record settlement of the forward contract. Record the payment of dinars to the foreign supplier. Journal entries for b-1: Record the purchase of materials. Record the forward contract. Record the entry to revalue the foreign currency account payable. Record the change in the fair value of the forward contract Record the foreign exchange gain or loss on the forward contract. Record the entry to adjust the net amount recognized as foreign exchange gain or loss to reflect the amortization of the forward contract premium or discount. Record the entry to revalue the foreign currency account receivable. Record the entry to adjust the carrying value of the forward contract to its current fair value. Record the foreign exchange gain or loss on the forward contract.Record the entry to adjust the net amount recognized as foreign exchange gain or loss to reflect the amortization of the forward contract premium or discount. Record the settlement of the forward contract. Record the payment of dinars to the foreign supplier.
In: Accounting
Laura Leasing Company signs an agreement on January 1, 2020, to
lease equipment to Kingbird Company. The following information
relates to this agreement.
|
1. |
The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. |
|
|
2. |
The fair value of the asset at January 1, 2020, is $85,000. |
|
|
3. |
The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $5,000, none of which is guaranteed. |
|
|
4. |
The agreement requires equal annual rental payments of $27,911 to the lessor, beginning on January 1, 2020. |
|
|
5. |
The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee. |
|
|
6. |
Kingbird uses the straight-line depreciation method for all equipment. |
Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.)
Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.)
In: Accounting
Prepare a flexible budget for Oman Electro-Mechanical Company for the year 2020. The company has provided the following production data for the production of 10,000 units. Table Q5 shows the budgeted expenses for the specified production output. Based on the information given, you are required to prepare a budget for a production of 15,000 units for the same product of the company
Table Q5
|
Items |
Amount (OMR) |
|
Direct materials |
4,576 |
|
Direct labor |
2,029 |
|
Variable overhead expenses |
2,059 |
|
Fixed overheads |
1,611 |
|
Selling expenses (20% fixed, 80% variable) |
1,681 |
|
Administration expenses (fixed for all level of production) |
386 |
|
Distribution expenses (30% fixed, 70% variable) |
489 |
In: Operations Management
Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Larkspur Company. The following information relates to this agreement.
| 1. | The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. | |
| 2. | The fair value of the asset at January 1, 2020, is $66,000. | |
| 3. | The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $5,000, none of which is guaranteed. | |
| 4. | The agreement requires equal annual rental payments of $21,328 to the lessor, beginning on January 1, 2020. | |
| 5. | The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee. | |
| 6. | Larkspur uses the straight-line depreciation method for all equipment. |
Click here to view factor tables.
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
Part 1
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.
Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.)
|
LARKSPUR COMPANY (Lessee) |
||||||||
|---|---|---|---|---|---|---|---|---|
|
Date |
Annual Lease |
Interest on |
Reduction of Lease |
Lease Liability |
||||
|
1/1/20 |
$enter a dollar amount |
$enter a dollar amount |
$enter a dollar amount |
$enter a dollar amount |
||||
|
1/1/20 |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
||||
|
1/1/21 |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
||||
|
1/1/22 |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
||||
|
$enter a total amount for this column |
$enter a total amount for this column |
$enter a total amount for this column |
||||||
eTextbook and Media
List of Accounts
Part 2
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.
Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
|---|---|---|---|---|
|
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021 |
enter an account title To record the lease |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record the lease |
enter a debit amount |
enter a credit amount |
||
|
(To record the lease) |
||||
|
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021 |
enter an account title To record lease payment |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record lease payment |
enter a debit amount |
enter a credit amount |
||
|
(To record lease payment) |
||||
|
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021 |
enter an account title To record interest expense |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record interest expense |
enter a debit amount |
enter a credit amount |
||
|
(To record interest expense) |
||||
|
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021 |
enter an account title To record amortization of the right-of-use asset |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record amortization of the right-of-use asset |
enter a debit amount |
enter a credit amount |
||
|
(To record amortization of the right-of-use asset) |
||||
|
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021 |
enter an account title To reverse interest expense |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To reverse interest expense |
enter a debit amount |
enter a credit amount |
||
|
(To reverse interest expense) |
||||
|
enter an account title To record lease payment |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record lease payment |
enter a debit amount |
enter a credit amount |
||
|
enter an account title To record lease payment |
enter a debit amount |
enter a credit amount |
||
|
(To record lease payment) |
||||
|
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021 |
enter an account title To record interest expense |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record interest expense |
enter a debit amount |
enter a credit amount |
||
|
(To record interest expense) |
||||
|
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021 |
enter an account title To record amortization of the right-of-use asset |
enter a debit amount |
enter a credit amount |
|
|
enter an account title To record amortization of the right-of-use asset |
enter a debit amount |
enter a credit amount |
||
|
(To record amortization of the right-of-use asset) |
In: Accounting
A U.S. based internet company offers an on-line proficiency
course in
basic accounting. Completion of this online course satisfies the
"Fundamentals of Accounting"
course requirement in many MBA programs. In the first semester 315
students have enrolled in
the course. The marketing research manager divided the country into
seven regions of
approximately equal populations. The course enrollment values in
each of the seven regions
are given below. The management wants to know if there is equal
interest in the course across
all regions. (Hint: To answer this question you must determine the
expected frequency per
region if it is equal)
a. State the null and alternative hypotheses
b. What is the test statistic?
c. Using a .05 significance level, what is the decision rule?
d. Show the test statistic and essential calculations.
e. Interpret you results
Region 1 2 3 4 5 6 7
enrollment 45 60 30 40 50 55 35
In: Statistics and Probability