When Patey Pontoons issued 10% bonds on January 1, 2018, with a face amount of $880,000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2021 (4 years). Interest is paid semiannually on June 30 and December 31. (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. Determine the price of the bonds at January 1, 2018. 2. Prepare the journal entry to record their issuance by Patey on January 1, 2018. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2018. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2018? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2018? (Ignore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2021.
In: Accounting
When Patey Pontoons issued 6% bonds on January 1, 2018, with a
face amount of $680,000, the market yield for bonds of similar risk
and maturity was 11%. The bonds mature December 31, 2021 (4 years).
Interest is paid semiannually on June 30 and December 31. (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. Determine the price of the bonds at January 1,
2018.
2. Prepare the journal entry to record their
issuance by Patey on January 1, 2018.
3. Prepare an amortization schedule that
determines interest at the effective rate each period.
4. Prepare the journal entry to record interest on
June 30, 2018.
5. What is the amount related to the bonds that
Patey will report in its balance sheet at December 31, 2018?
6. What is the amount related to the bonds that
Patey will report in its income statement for the year ended
December 31, 2018? (Ignore income taxes.)
7. Prepare the appropriate journal entries at
maturity on December 31, 2021.
In: Accounting
Record the following transactions on the books of Benjamin College,
a private college. All of the transactions are for the year
2018.
(a) The College received $450,000 in funds that were pledged in
2017, to be used for unrestricted purposes in 2018.
(b) The College was awarded $900,000 in grants that are to be used
for restricted research purposes. $600,000 in cash was received,
and $580,000 was expended on these projects.
(c) On Dec. 1, the College received a pledge of $2,300,000 to build
a new basketball arena. The funds were not expended or received in
2018, but are expected to be received early in 2018.
(d) The College had received cash of $500,000 in 2017 to be used to
purchase computer equipment for the student labs. The equipment was
purchased and put into service in early January 2018. The equipment
has a five-year life and the College follows the practice of
maintaining the balance of fixed assets (net of depreciation) in
the temporarily restricted net asset category.
(e) On Dec. 31, the College received an unrestricted pledge to
receive $100,000 per year each year for six years, beginning on
December 31, 2018. The first installment of $ 100,000 was received
on that date. The discount rate is 6%. The present value of six
payments of $100,000 is $521,240.
In: Accounting
When Patey Pontoons issued 4% bonds on January 1, 2018, with a face amount of $500,000, the market yield for bonds of similar risk and maturity was 5%. The bonds mature December 31, 2021 (4 years). Interest is paid semiannually on June 30 and December 31. (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. Determine the price of the bonds at January 1, 2018. 2. Prepare the journal entry to record their issuance by Patey on January 1, 2018. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2018. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2018? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2018? (Ignore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2021.
In: Accounting
When Patey Pontoons issued 10% bonds on January 1, 2018, with a face amount of $560,000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2021 (4 years). Interest is paid semiannually on June 30 and December 31. (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. Determine the price of the bonds at January 1, 2018. 2. Prepare the journal entry to record their issuance by Patey on January 1, 2018. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2018. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2018? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2018? (Ignore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2021.
In: Accounting
The December 31, 2018, inventory of Tog Company, based on a
physical count, was determined to be $461,000. Included in that
count was a shipment of goods received from a supplier at the end
of the month that cost $61,000. The purchase was recorded and paid
for in 2019. Another supplier shipment costing $25,500 was
correctly recorded as a purchase in 2018. However, the merchandise,
shipped FOB shipping point, was not received until 2019 and was
incorrectly omitted from the physical count. A third purchase,
shipped from a supplier FOB shipping point on December 28, 2018,
did not arrive until January 3, 2019. The merchandise, which cost
$91,000, was not included in the physical count and the purchase
has not yet been recorded.
The company uses a periodic inventory system.
Required:
1. Determine the correct December 31, 2018,
inventory balance and, assuming that the errors were discovered
after the 2018 financial statements were issued, analyze the effect
of the errors on 2018 cost of goods sold, net income, and retained
earnings. (Ignore income taxes.)
2. Prepare a journal entry to correct the
errors.
Required 1: Effect Amount
Correct End Inv
COGS
Net Income
Retained Earnings
In: Accounting
NutraLabs, Inc., leased a protein analyzer to Werner Chemical, Inc., on September 30, 2018. NutraLabs manufactured the machine at a cost of $5 million. The five-year lease agreement calls for Werner to make quarterly lease payments of $391,548, payable each September 30, December 31, March 31, June 30, with the first payment at September 30, 2018. NutraLabs’ implicit interest rate is 12%. (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. Determine the price at which NutraLabs is “selling” the equipment (present value of the lease payments) at September 30, 2018 2. What pretax amounts related to the lease would NutraLabs report in its balance sheet at December 31, 2018? 3. What pretax amounts related to the lease would NutraLabs report in its income statement for the year ended December 31, 2018? 4. What pretax amounts related to the lease would NutraLabs report in its statement of cash flows for the year ended December 31, 2018?
In: Accounting
On December 31, 2017, Berclair Inc. had 400 million shares of common stock and 14 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 120 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $700 million. Also outstanding at December 31 were 63 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 63 million common shares at an exercise price of $60 per share. During 2018, the market price of the common shares averaged $70 per share. The options were exercised on September 1, 2018. Required: Compute Berclair’s basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
In: Accounting
The following data was collected from 1 bag of Hershey Kisses®. Each Kiss® was weighed (in grams) and recorded in the table below. Hershey claims that there is 368 grams of chocolate in one bag.
| 4.76 | 4.72 | 4.74 | 4.55 | 4.91 | 4.74 | 4.78 | 4.71 | 4.8 |
| 4.78 | 4.78 | 4.75 | 4.79 | 4.82 | 4.91 | 4.83 | 4.68 | 4.74 |
| 4.7 | 4.8 | 4.7 | 4.76 | 4.7 | 4.83 | 4.93 | 4.74 | 4.84 |
| 4.82 | 4.78 | 4.77 | 4.72 | 4.78 | 4.83 | 4.75 | 4.74 | 4.68 |
| 4.84 | 4.71 | 4.71 | 4.76 | 4.66 | 4.78 | 4.73 | 4.74 | 4.92 |
| 4.77 | 4.8 | 4.79 | 4.86 | 4.64 | 4.78 | 4.7 | 4.75 | 4.78 |
| 4.76 | 4.83 | 4.66 | 4.77 | 4.83 | 4.78 | 4.69 | 4.81 | 4.68 |
| 4.78 | 4.88 | 4.72 | 4.85 | 4.85 | 4.81 | 4.74 | 4.8 | 4.82 |
| 4.84 | 4.7 | 4.85 | 4.7 | 4.81 | 4.72 | 4.79 | 4.63 |
To help you answer the questions below use your scientific calculator. Your scientific calculator is capable of doing calculations on entire data sets by first entering the data and then pressing combinations of keys to find the average and standard deviation etc... You should check with your calculator manual to see how this special data handling feature works. Let the instructor know if you have any questions. You will need to learn how to do this for testing purposes. Note: Instructions for several brands of calculators in included in the folder Course Overview/Excel & Calculator Instructions.
1. What is the Mean and Median? (you may want to use your calculator!)
2. In general, each Kiss® is approximately how many grams? Explain what measure you used and why.
3. What is the Range? Are you surprised at this? Why or why not?
4. What could be some reasons for variation in the weights of the Kisses®? NOTE: Take time answering this one. There are lots of thingsto consider here and I'll be looking for a well thought out answer with several given reasons contributing to the variation. Of course, the wrappers and tags could vary but what about the drops of chocolate themselves? Why aren't they all the same?
5. Would you say that there are any two Kisses that could have exactly the same weight? (I mean exactly the same weight!)
6. How many Kisses® were there in the bag?
7. Based on Hersheys® claim for 368 total net grams of chocolate in the bag, approximately how many Kisses® too many or too few are there? Give some possible explanations for this difference.
8. EXCEL: Click on and print out one of the following: Excel Descriptive Statistics 2016/2013 to see how to enter the Kiss data into a worksheet and obtain a list of descriptive statistics and a histogram with no more than 12 classes. Also, make sure to sort your data using the Sort command under Data on the menu bar. Submit your Excel file to the Lab1 Part 1 Dropbox.
9. Standard Deviation & Empirical Rule:
Variation is a big factor in the analysis of most any data set and
it will be very important to have a way of measuring it.
Standard Deviation is one such measure that you
will study and learn to calculate in an upcoming section. For now,
find the Standard Deviation number on your
Descriptive Statistics read-out from Excel. There is a rule for
"mound-shaped" distributions that can help you have some feeling
for what this standard deviation number is telling you. It's called
the Empirical Rule and is stated below:
For any data set having a bell-shaped (or mound-shaped)
distribution the following are true:
- Approximately 68% of the data values will be within one
standard deviation of the mean.
- Approximately 95% of the data values will be within two standard
deviation of the mean.
- Almost all of the data values will be within three standard
deviation of the mean.
Use the standard deviation value given in Excel and the Empirical
Rule (stated above) to find answers to the following:
a) Find the percentage of all the Kisses in the
bag that fell within 1 standard deviation of the mean? ... within
2?, … within 3?
(Show how you calculated these percentages!)
b) How close is the Empirical Rule in predicting
the percentages that you calculated above?
c) If your calculated percentages did not line up
with the percentages claimed by the Empirical Rule, speculate on
some possible reasons for this.
10. How might standard deviation and the shape of the distribution indicate how consistent Hershey® is in the manufacturing of their Kisses®?
PART 2 - Data Collection & Discussion
Task 1: Answer the following Questions
In Lab 1 Part 1 you have constructed a Histogram
for the Hershey Kisses by using Excel. Think about the following
questions then answer them thoroughly.
Would you consider the distribution of the weights to be roughly mound-shaped? Why or why not?
Is the shape of the distribution what you might have expected?
Why or why not?
(In other words, give a non-technical explanation as to why you
might have thought that the weights from a bag of Hershey Kisses
would produce a mound-shaped histogram.)
If you answered 'no' to this question, explain why you should have
expected it to be mound-shaped.
Do you think that Hershey® collects and analyzes the same kind of data we have collected thus far? Why? Of what value could this be to them?
Task 2: Collect your own data!
The mound shaped distribution is a very common distribution. Find something other than Kisses® to collect data on that would produce a mound-shaped distribution. Also, don't use weights nor candy, make it something totally different than the Hershey Kisses. Follow the steps below.
Step 1) Think of other things you could collect
data on that might produce a mound-shaped distribution (histogram).
There are lots of possibilities here and there are lots of other
measurements besides weight such as quantity, length, time,
dollars, etc ... .
You shouldn't have to do anything that costs you money!
Step 2) Collect data on this.
Step 3) Do an analysis similar to what was done
with the Hershey Kisses®. In other words, Put your data
into Excel, get a Descriptive Statistics output and create a
histogram. Instructions for Excel are located in the
Excel & Calculator Instructions folder under
Course Overview.
Step 4) Put together a small report that explains
what the data was taken from and how you collected it.
Make sure to upload the answers to all the questions in Task 1, Excel file (with data, descriptive statistics, histogram) and report from Task 2 to the Lab 1 Part 2 Dropbox located in this folder. Actually you can just put everything into one Excel file and upload it!
In: Math
Baci is a well-known lollipops maker in Western Australia and produces lollipops in two size, i.e., regular and large. The company sells their products to convenience stores, fairs, schools for fundraisers and in bulk on the internet. 2018 summer is approaching and Baci is preparing its budget for the December. All Baci’s lollipops are hand-made, mostly out of sugar, and attached to wooden sticks. Expected sales are based on past experience.
Other information for December 2018 is as follows:
Input prices :
Direct materials:
Sugar $0.50 per kg
Sticks $0.30 each
Direct manufacturing labour $8 per direct manufacturing labour hour (DMLH)
Input quantities per unit of output
Regular Large
Direct materials:
Sugar 0.25 kg 0.5 kg
Sticks 1 1
Direct manufacturing labour hour (DMLH) 0.2 hour 0.25 hour
Set-up hours per batch 0.08 hour 0.09 hour
Inventory data for direct materials1
Sugar Sticks
Beginning inventory 125 kg 350
Target ending inventory 240 kg 480
Cost of beginning inventory $64 $105
1: Baci accounts for direct materials using a FIFO cost flow assumption.
Sales and inventory data for finished goods2
Regular Large
Expected sales in units 3,000 1,800
Selling price $3 $4
Target ending inventory in units 300 180
Beginning inventory in units 200 150
Beginning inventory in dollars $500 $474
2: Baci uses a FIFO cost flow assumption for finished goods inventory.
All the lollipops are made in batches of 10. Baci incurs manufacturing overhead cost, and marketing and general administration costs, but customers pay for shipping. Other 3 than manufacturing labour costs, monthly processing costs are very small. Baci uses activity-based costing (ABC) and has classified all overhead costs for December 2018 as follows:
Cost type Denominator activity Rate
Manufacturing:
Set-up Set-up hours $20 per set-up hour
Processing Direct manufacturing labour hour (DMLH) $1.70 per DMLH
Non-manufacturing:
Marketing & general admin Sales revenue 10%
Required 1. Prepare each of the following for December 2018:
(a) Revenue budget
(b) Production budget in units
(c) Direct materials usage budget and direct materials purchases budget
(d) Direct manufacturing labour cost budget
(e) Manufacturing overhead cost budgets for processing and set-up activities
(f) Budgeted unit cost of ending finished goods inventory and ending inventories budget
(g) Cost of goods sold budget
(h) Marketing and general administration costs budget
In: Accounting