The Bradford Company issued 8% bonds, dated January 1, with a
face amount of $70 million on January 1, 2018 to Saxton-Bose
Corporation. The bonds mature on December 31, 2032 (15 years). For
bonds of similar risk and maturity, the market yield is 10%.
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. to 3. Prepare the journal entry to record the
purchase of the bonds by Saxton-Bose on January 1, 2018, interest
revenue on June 30, 2018 and interest revenue on December 31, 2018
(at the effective rate). (Enter your answers in whole
dollars. If no entry is required for a transaction/event, select
"No journal entry required" in the first account
field.)
In: Accounting
Evans Park
Evans Park is a small amusement park that provides a variety of rides for children and teens. In a typical summer season, the park sells twice as many child tickets as adult tickets. Adult ticket prices are $18 and the children’s price is $10. Revenue from food and beverage concessions is estimated to be $60,000, and souvenir revenue is expected to be $25,000. Variable costs per person (child or adult) are $3.25. Fixed costs amount to $150,000. Build a model to show the profitability of this park based on these facts.
REQUIRED: Show the model with adult sales at the break-even point.
HINT: The EvansPark sheet gives a starting point. After entering labels and formulas for your model, use Goal Seeking to find where to adjust adult ticket sales so that profit equals zero. “Goal Seek” is found under the “What-If Analysis” button of the “Data” ribbon.
In: Accounting
Question:
The Bradford Company issued 10% bonds, dated January 1, with a face amount of $90 million on January 1, 2018 to Saxton-Bose Corporation. The bonds mature on December 31, 2037 (20 years). For bonds of similar risk and maturity, the market yield is 12%. 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. to 3. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2018, interest revenue on June 30, 2018 and interest revenue on December 31, 2018 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
In: Accounting
Lily Company began business on January 1, 2017. The company’s year-end is December 31. The following events occurred during the first year of operations: Apr. 1 Paid cash in the amount of $24,000 for a one-year rental contract on a building. July 1 Received $60,000 in cash from customers for services to be provided evenly during the next twelve months. Oct. 1 Acquired a building by borrowing $300,000 at 6% interest, principal and interest payable at maturity in ten years. Annual depreciation expense is $12,000.
1. Prepare the necessary adjusting journal entries at December 31 (10 points total). (Hint: Four adjusting entries are necessary.)
2. Bonus: For each of the adjusting entries, indicate which of the following type of entry was recorded: accrued expense, accrued revenue, deferred expense, or deferred revenue (2 points total).
In: Accounting
| he following is a partial trial balance for General Lighting Corporation as of December 31, 2016: |
| Account Title | Debits | Credits |
| Sales revenue | 2,350,000 | |
| Interest revenue | 80,000 | |
| Loss on sale of investments | 22,500 | |
| Cost of goods sold | 1,200,300 | |
| Loss from write-down of inventory due to obsolescence | 200,000 | |
| Selling expenses | 300,000 | |
| General and administrative expenses | 150,000 | |
| Interest expense | 90,000 | |
|
300,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 40%. |
| Required: | |||
| 1. |
Prepare a single-step income statement for 2016, including EPS disclosures. (Round EPS answers to 2 decimal places.)
|
||
In: Accounting
On January 1, 2012, Morgan Company acquires $300,000 of Nicklaus, Inc., 9% bonds at a price of $2... On January 1, 2012, Morgan Company acquires $300,000 of Nicklaus, Inc., 9% bonds at a price of $278,384. The interest is payable each December 31, and the bonds mature December 31, 2014. The investment will provide Morgan Company a 12% yield. The bonds are classified as held-to-maturity.
(a) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method
(b) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective interest ethod
(c) Prepare the journal entry for the interest receipt of Dec 31,2013 and discount amrtization under staright line method
(d) Prepare the journal entry for the interest receipt of Dec 31,2013 and discount amrtization under effective interesmethod
In: Accounting
Exercise 4-6 Preparing closing entries and the post-closing trial balance LO2,3,4
CHECK FIGURE: Post-closing trial balance columns = $51,300
The adjusted trial balance at April 30,2017 for Willard Co. follows
|
Debit |
Credit |
||
|
101 |
Cash |
3,600 |
|
|
106 |
Account receivable |
8,500 |
|
|
153 |
Trucks |
26,000 |
|
|
154 |
Accumulated depreciation, trucks |
8,250 |
|
|
193 |
Franchise |
13,200 |
|
|
201 |
Accounts Payable |
9,600 |
|
|
209 |
Salaries Payable |
3,200 |
|
|
233 |
Unearned Revenue |
1,300 |
|
|
301 |
Sid Willard, capital |
29,100 |
|
|
302 |
Sid Willard, withdrawals. |
9,600 |
|
|
401 |
Plumbing Revenue |
42,050 |
|
|
611 |
Depreciation Expense, Trucks |
4,900 |
|
|
622 |
Salaries Expense |
17,800 |
|
|
640 |
Rent Expense |
3,000 |
|
|
677 |
Advertising Expense |
6,900 |
|
|
901 |
Income Summary |
||
|
Totals |
93,500 |
93,500 |
|
In: Accounting
On 23 November 20X7, when engaged in preparing for the 20X7 fiscal year end, the chief accountant of Harper Ltd. discovered two accounting errors in the 20X5 statements:
a. A government ministry had paid $4.5 million in partial settlement of an amount due for a large contract. The contract revenue had already been recognized. However, the payment was accidentally credited to contract revenue instead of to accounts receivable and was included in taxable income.
b. Inventory purchases of $2.4 million had inadvertently been charged to equipment, a capital asset account, and had been amortized by 10% for each of 20X5 and 20X6. The accounting amortization rate is the same as the CCA rate for tax purposes. The ending and beginning inventories had been properly stated. Therefore, the mistake caused cost of sales to be understated by $2.4 million and pretax earnings to be overstated by the same amount.
In: Accounting
Hogue Sports Hut provides individual instruction and coaching to
children participating in the city’s baseball, softball,
basketball, and soccer youth leagues. Last year’s results were as
follows:
| Sales revenue | $921,450 | |
| Variable expenses | 647,750 | |
| Contribution margin | 273,700 | |
| Fixed expenses | 154,700 | |
| Operating income |
$119,000 |
B) If Anna Hogue, the company’s president, is successful in increasing sales revenue by 5%, by what percent will the company’s operating income increase? (Round answer to 2 decimal place, e.g. 13.25%.)
C) After achieving the sales increase in part (b), what will be the company’s new operating income? (Round answer to 0 decimal places, e.g. 25,000.)
D) After achieving the sales increase in part (b), what will be the company’s new operating leverage? (Round answer to 2 decimal places, e.g. 0.38.)
In: Accounting
Prepare the financing section of the statement of cash flows for the year ended December 31, 2018.
13) Dakota Telescopes Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement:
Dakota Telescopes Company
Income Statement
Year Ended December 31, 2019
Sales Revenue $275,000
Interest Revenue 2,600
Total Revenues $277,600
Cost of Goods Sold 135,000
Salary Expense 66,500
Depreciation Expense 32,000
Other Operating Expenses 35,900
Interest Expense 2,400
Income Tax Expense 6,500
Loss on Sale of Plant Assets 2,000
Total Expenses and Losses 280,300
Net Loss ($2,700)
Additional information provided by the company includes the following:
Current assets other than cash decreased by $25,000.
Current liabilities increased by $3,000.
Prepare the operating activities section of the statement of cash flows.
In: Accounting