Sean Ltd. follows a policy of a 10% depreciation charge per year on machinery and a 5% depreciation charge per year on buildings.
The following transactions occurred in 2017:
March 31, 2017 A warehouse which Sean had purchased on January 1, 2005 for $1.7 million (with a current fair value of $1 million) was exchanged for another warehouse which also had a current fair value of $1 million. Depreciation has been properly charged from Jan 1, 2005 through Dec 31, 2016. Both parcels of land on which the warehouses were located were equal in value, and had a fair value equal to book value.
June 30, 2017 Machinery with a cost of $120,000 and accumulated depreciation through December 31, 2016 of $90,000 was exchanged, along with $75,000 cash, for a parcel of land with a fair market value of $115,000.
Required
Prepare all appropriate journal entries for Sean Ltd. for the above dates.
In: Accounting
The life expectancy for females in a certain country born during 1980−1985 was approximately 75.2 years. This grew to 76 years during 1985−1990 and to 76.2 years during 1990−1995. Construct a model for this data by finding a quadratic equation whose graph passes through the points (0,75.2),(5,76),and (10,76.2). Use this model to estimate the life expectancy for females born between 1995 and 2000 and for those born between 2000 and 2005.
Let x be the number of years since 1980 and y be the life expectancy for a person born between (1980+x) and
(1980+x+5). Find a quadratic equation whose graph passes through the points (0,75.2), (5,76), and (10,76.2).
Y=?
According to the model, the life expectancy of a female born between 1995 and 2000 in this country is ___?_ years.
According to the model, the life expectancy of a female born between 2000 and 2005 in this country is __?__ years.
In: Statistics and Probability
Cordova, Inc., reported the following receivables in its December 31, 2017, year-end balance sheet:
| Current assets: | |||
| Accounts receivable,
net of $51,000 in allowance for uncollectible accounts |
$ | 383,000 | |
| Interest receivable | 22,950 | ||
| Notes receivable | 410,000 | ||
Additional information:
The notes receivable account consists of two notes, a $120,000 note and a $290,000 note. The $120,000 note is dated October 31, 2017, with principal and interest payable on October 31, 2018. The $290,000 note is dated March 31, 2017, with principal and 10% interest payable on March 31, 2018. Interest rate on $120,000 note is 6%
During 2018, sales revenue totaled $2,110,000, $1,970,000 cash was collected from customers, and $40,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end gross accounts receivable.
Required:
1. In addition to sales revenue, what revenue and
expense amounts related to receivables will appear in Cordova’s
2018 income statement?
2. Calculate the receivables turnover ratio for
2018. (Round your answer to 2 decimal places.)
Interest Revenue
Bad Debt Expense
AR Turnover Rate?
In: Accounting
The following transactions occurred during December 31, 2021,
for the Falwell Company.
Prepare the necessary adjusting entries for each of the above
situations. Assume that no financial statements were prepared
during the year and no adjusting entries were recorded. (If
no entry is required for a transaction/event, select "No journal
entry required" in the first account field.)
In: Accounting
In: Finance
Create journal entries for each transactions and post them to the correct ledger/t-accounts.
Standard Transactions:
1. On November 1, Chris Clark deposited $25,000 in a bank account in the name of NetSolutions.
2. On November 5, NetSolutions paid $20,000 for the purchase of land as a future building site.
3. On November 10, NetSolutions purchased supplies on account for $1,350.
4. On November 18, NetSolutions received cash of $7,500 from customers for services provided.
5. On November 30, 2018, NetSolutions paid the following expenses: wages, $2,125; rent, $800; utilities, $450; and miscellaneous, $275.
6. On November 30, 2018, NetSolutions paid creditors on account, $950.
7. On November 30, 2018, Chris Clark determined that the cost of supplies on hand at the end of the month was $550.
8. On November 30, 2018, Chris Clark withdrew $2,000 from NetSolutions for personal use.
9. On December 1, NetSolutions paid rent for December, $800.
10. On December 1, NetSolutions received an offer from a local retailer to rent the land purchased on November 5. The retailer plans to use the land as a parking lot for its employees and customers. NetSolutions agreed to rent the land to the retailer for three months, with the rent payable in advance. NetSolutions received $360 for three months’ rent beginning December 1.
11. On December 4, NetSolutions purchased office equipment on account from Executive Supply Co. for $1,800.
12. On December 6, NetSolutions paid $180 for a newspaper advertisement.
13. On December 11, NetSolutions paid creditors $400.
14. On December 13, NetSolutions paid a receptionist and a part-time assistant $950 for two weeks’ wages.
15. On December 16, NetSolutions received $3,100 from fees earned for the first half of December.
16. Fees earned on account totaled $1,750 for the first half of December.
17. On December 20, NetSolutions paid $900 to Executive Supply Co. on the $1,800 debt owed from the December 4 transaction.
18. On December 21, NetSolutions received $650 from customers in payment of their accounts.
19. On December 23, NetSolutions paid $1,450 for supplies.
20. On December 27, NetSolutions paid the receptionist and the part-time assistant $1,200 for two weeks’ wages.
21. On December 31, NetSolutions paid its $310 telephone bill for the month.
22. On December 31, NetSolutions paid its $225 electric bill for the month.
23. On December 31, NetSolutions received $2,870 from fees earned for the second half of December.
24. On December 31, fees earned on account totaled $1,120 for the second half of December.
25. On December 31, Chris Clark withdrew $2,000 for personal use
Adjusting Entries:
26. Assume that NetSolutions signed an agreement with Dankner Co. on December 15 to provide services at a rate of $20 per hour. As of December 31, NetSolutions had provided 25 hours of services. The revenue will be billed on January 15.
27. NetSolutions pays it employees biweekly. During December, NetSolutions paid wages of $950 on December 13 and $1,200 on December 27. As of December 31, NetSolutions owes $250 of wages to employees for Monday and Tuesday, December 30 and 31.
28. NetSolutions paid wages of $1,275 on January 10. This payment includes the $250 of accrued wages recorded on December 31.
29. The December 31 unadjusted trial balance of NetSolutions indicates a balance in the unearned rent account of $360. This balance represents the receipt of three months’ rent on December 1 for December, January, and February. At the end of December, one month’s rent has been earned.
30. The December 31, 2018, unadjusted trial balance of NetSolutions indicates a balance in the supplies account of $2,000. Some of these supplies were used during December, and some are still on hand (not used). Assuming that on December 31 the amount of supplies on hand is $760, the amount to be transferred from the asset account to the expense account is computed as follows:
31. The December 31, unadjusted trial balance of NetSolutions indicates a balance in the prepaid insurance account of $2,400. The debit balance of $2,400 represents the December 1 prepayment of insurance for 12 months. At the end of December, the insurance expense account is increased (debited), and the prepaid insurance account is decreased (credited) by $200, the insurance for one month.
32. NetSolutions’ office equipment depreciates $50 during December.
In: Accounting
| Income Statement | 2008 | 2009 | ||
| Total Market (lawns professionally treated) | 45,000 | 43,000 | ||
| LR Lawns Treated (unit volume) | 11,000 | 12,000 | ||
| Sales Revenue | $ 860,000 | $ 885,000 | ||
| Memo: Market Share | 24% | 28% | ||
| Memo: Avg. Revenue/Lawn | $ 78 | $ 74 | ||
| Less: Variable Cost of Sales Revenue | ||||
| Chemicals | $ 115,000 | $ 125,000 | ||
| 1099 Workers * | $ 175,000 | $ 182,000 | ||
| Truck Running Costs | $ 40,000 | $ 40,000 | ||
| Total Cost of Sales Revenue | $ 330,000 | $ 347,000 | ||
| = Gross Profit Margin | $ 530,000 | $ 538,000 | ||
| Memo: Gross Profit Margin % | 38% | 39% | ||
| Less: Overhead (Other Operating) Expenses: | ||||
| Salaried Employees | $ 190,000 | $ 180,000 | ||
| Office and Warehouse rent | $ 90,000 | $ 90,000 | ||
| Depreciation of Trucks | $ 30,000 | $ 40,000 | ||
| Advertising | $ 30,000 | $ 40,000 | ||
| Total Overhead Expenses | $ 340,000 | $ 350,000 | ||
| = EBIT (net operating income) | $ 190,000 | $ 188,000 | ||
| less: Interest Expense | $ 23,000 | $ 35,000 | ||
| = Pretax Income (profit) | $ 167,000 | $ 153,000 | ||
| less: Income taxes | $ 40,000 | $ 35,000 | ||
| = Net Income (profit) | $ 127,000 | $ 118,000 | ||
| Memo: Profit Margin % | 15% | 13% | ||
| Balance Sheet | ||||
| Cash | $ 5,000 | $ 5,000 | ||
| Accounts Receivable | $ 25,000 | $ 40,000 | ||
| Inventories | $ 8,000 | $ 9,000 | ||
| = Current Assets | $ 38,000 | $ 54,000 | ||
| Fixed Assets | $ 500,000 | $ 550,000 | ||
| - Accumulated Depreciation | $ 80,000 | $ 120,000 | ||
| = Net Fixed Assets | $ 420,000 | $ 430,000 | ||
| Total Assets | $ 458,000 | $ 484,000 | ||
| Accounts Payable | $ 8,000 | $ 20,000 | ||
| Bank Loans | $ 275,000 | $ 300,000 | ||
| = Total Liabilities | $ 283,000 | $ 320,000 | ||
| Common Stock (Invested capital) | $ 100,000 | $ 100,000 | ||
| Retained Earnings | $ 75,000 | $ 64,000 | ||
| Total Liabilities and Owner's Equity | $ 458,000 | $ 484,000 | ||
| * Workers are paid based upon the number of lawns treated (not hourly). | ||||
Please calculate the following for 2009:
a) Return on Assets:
b) Current Ratio:
c) Debt/Equity Ratio:
d) Cash flow from Operations:
e) Cash flow from Investing Activities:
f) Cash Flow from Financing Activities:
g) Net Change in Cash for the year:
In: Finance
Grunewald Industries sells on terms of 3/10, net 60. Gross sales last year were $4,916,500 and accounts receivable averaged $480,500. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places.
Nominal cost=
Effective cost=
In: Finance
Cost of Trade Credit
Grunewald Industries sells on terms of 3/10, net 60. Gross sales last year were $4,385,500 and accounts receivable averaged $466,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places.
In: Finance
The Brampton store has customers arrive every 95 seconds and average service rate of 55 customers per hour. What is the average number of customers waiting in line? Answer to 2 decimal places.The Hamilton store has an arrival rate of 30. If the store wanted the average time in the system to be 6 minutes, what would the service rate have to be? Answer to one decimal place.The Brantford store has a service rate of 60 customers per hour. What is the probability that checkout time will take between 1 and 3 minutes.
In: Operations Management