The inventory account of Cullumber Company at December 31, 2020,
included the following items:
| Inventory Amount | ||
| Merchandise out on
consignment at sales price (including markup of 40% on selling price) |
|
|
| Goods purchased, in transit (shipped f.o.b. shipping point) |
49000 |
|
| Goods held on consignment by Cullumber |
63000 |
|
| Goods out on approval (sales price $31400, cost $26600) |
31400 |
Based on the above information, the inventory account at December
31, 2020, should be reduced by
| $141200. |
| $104400. |
| $92200. |
| $92400. |
In: Accounting
1. On January 1, 2020, Travis Corporation issued $800,000, 6%, 5-year bonds for $735,110. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid semiannually on July 1 and January 1. The company uses the effective-interest method of amortization. Instructions: Prepare the journal entries that Travis Corporation would make on January 1, June 30, December 31, 2020, January 1, 2021 and at maturity, related to the bond issue
In: Accounting
On March 1, 2020, Spring Break Company sold 4,000 individual bonds. The bond terms were as follows: 25 years, $1,000 face value, and 2.1% coupon rate. The bonds were issued at an annual effective interest rate of 1.9%. Interest is payable semi-annually and is due each year on September 1 and March 1. As of March 1, 2020, bond issue costs of $103,500 were incurred in preparing and selling the bond issue. Calculate the selling price of the bond
In: Accounting
Astrom Ltd. purchased a piece of equipment on May 12, 2020, for $51,200. At the time, management determined that the equipment would have a 4-year useful life and a residual value of $4,400. Astrom uses the straight-line depreciation method for its equipment, and the company has a December 31 year end. Also assume that Astrom sold the equipment on September 25, 2022, for $20,725. Prepare all necessary journal entries for 2020, 2021, and 2022 related to each of the following scenarios:
In: Accounting
TTT is a television ratings company. TTT announced that on 11th of June 2020, for a specific program on DDD TV channel, 10% of all televisions in NY tuned to DDD TV channel. It is known that the similar specific program will be presented on 25th of June 2020 on DDD TV channel. What is the probability that in a random sample of 20 television sets in NY , 3 or fewer would have been tuned to DDD TV channel? Find the mean and standard deviation. Explain your solution in detail.
In: Statistics and Probability
In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,044,000 $ 2,628,000 $ 2,890,800 Estimated costs to complete as of year-end 5,256,000 2,628,000 0 Billings during the year 2,170,000 2,502,000 5,328,000 Cash collections during the year 1,885,000 2,600,000 5,515,000 Westgate recognizes revenue over time according to percentage of completion. Required:
In: Accounting
Module 7 &8: Management Issues for Non-Depository Institutions
The Save You Insurance Company has the following financial statements. 2020 2019
Net Premiums Written 48,612 47,398
-------------------------------------------------------------------------------
Income Statement ($ mils.)
Premiums Earned 42,624 48,321
Loss Expenses 30,746 34,364
Operating Expenses 17,720 17,693
Total Policy Expenses 48,466 52,057
Net Underwriting Gain/Loss (5,842) (3,736)
Net Investment Income 15,700 19,995
Operating Income before taxes 9,858 16,259
Dividends to Policyholders 6,517 10,361
Income Tax 1,294 1,670
Net Income $2,047 $ 4,228
Ave Investment Yield 4.94% 5.89%
(mils.) 2020 2019
Total Assets $381,972 $406,529
Liabilities
Total Liabilities $349,069 $369,700
Total Equity 32,903 36,829
Total Liabs. & Equity $381,972 $406,529
Dupont Analysis:
Asset Turnover
Net Profit Margin
ROA
ROE
OROA
Equity Multiplier (EM)
Give an overview for why the insurance companies overall profitability changed in 2020 including trends in the expense ratio, loss ratio, and combined rate, and average investment yield. Also do a Dupont analysis explaining why the ROE and ROA for the insurance company changed in 2020 (based on the Operating Profit Margin, Asset Utilization, and the Equity Multiplier.
In: Finance
Mike's Company purchased equipment that cost $118,000 on August 1, 2018. The equipment has an estimated useful life of eight years with an estimated salvage of $10,000. Mike's Company has a December 31 year-end. Calculate the following, showing all of your computations well-labeled and in good form under each of the followingindependent scenarios:
1. The equipment is depreciated using machine hours. The machine is expected to be used for a total of 110,000 hours over it estimated useful life. The following hours of usage were recorded in 2018, 2019, and 2020:
2018 2019 2020
6,000 hours 13,000 hours 12,000 hours
(a) Calculate the depreciation for 2019 using the above data.
Round to the nearest hundredth.
(b) Calculate the book value on the machine at December 31,
2020.
Straight-line method.
(a) Calculate the depreciation for 2019 using the above
data.
(b) Calculate the book value on the machine at December 31,
2020.
Sum-of-the-years’ digits method
(a) Calculate the depreciation for 2019 using the above data.
(b) Calculate the book value on the machine at December 31, 2019.
Double declining-balance method. Round your calculations to the nearest dollar.
(a) Calculate the depreciation for 2019 using the above
data.
(b) Calculate the book value on the machine at December 31,
2019.
In: Accounting
On January 1, 2019, Garner issued 10-year, $200,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Garner $2 par value common stock. The company has had 10,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2020. (Ignore all tax effects.)
Requirement 1: Accounting
Requirement 2: Analysis
Show how Garner will report income and EPS for 2020 and 2019. Briefly discuss the importance of GAAP for EPS to analysts evaluating companies based on price-earnings ratios. Consider comparisons for a company over time, as well as comparisons between companies at a point in time.
In: Accounting
During the annual fund-raising drive, the Cancer Society raised $900,000 in pledges of financial support for general operations. By fiscal year-end, the society had collected $600,000 of the pledges. The society estimates that 10% of the remaining pledges will be uncollectible. The NET amount of revenue the society should recognize during the current year from this pledge drive is
$900,000.
$870,000. answer
$810,000.
$600,000.
2.
In June 2015, a public university bills and collects $45 million in tuition for the summer semester that runs from June 1 through July 15. In addition, in May and June it bills $300 million for the fall semester that runs from September 1 through December 15. Of this amount it collects only $120 million (expecting to collect the balance prior to September 1). In its statement of revenues, expenses, and changes in net position for the fiscal year ending June 30, 2015 it should recognize as tuition revenue
a) $30 million , answer
b) $45 million
c) $150 million
d) $165 million
3. In 2014, a public university was awarded a federal reimbursement grant of $18 million to carry out research. Of this, $12 million was intended to cover direct costs and $6 million to cover overhead. In a particular year, the university incurred $4 million in allowable direct costs and received $3.4 million from the federal government. It expected to incur the remaining costs and collect the remaining balance in 2015. For 2014 it should recognize revenues from the grant of
a) $3.4 million
b) $4.0 million
c) $6.0 million , answer
d) $18.0 million
I have the answer, but please explain briefly how to get the answer and why.
In: Accounting