Questions
In 2000, the Gandoff Company purchased all of the outstanding stock of Bilbo Company at book...

In 2000, the Gandoff Company purchased all of the outstanding stock of Bilbo Company at book value. Gandoff accounts for its investment in Bilbo under the initial value method and Bilbo pays no dividends

In 2016, Gandoff sold inventory to Bilbo Co for $600,000 on credit. This merchandise had cost Gandoff $300,000. At the end of 2016 Bilbo had not sold any of this merchandise nor had they paid Gandoff for the merchandise

In 2017 Bilbo paid off Gandoff and had sold 70% of the merchandise acquired from Gandoff.

In 2018 Bilbo sold the rest of the merchandise it had acquired from Gandoff

REQUIRED:

A) MAKE THE JOURNAL ENTRY GANDOFF MAKES WHEN IT SELLS THE MERCHANDISE TO BILBO (GANDOFF USES THE PERPETUAL METHOD FOR INVENTORY)

B) MAKE THE JOURNAL ENTRY BILBO MAKES WHEN IT BUYS THE MERCHANDISE FROM GANDOFF (BILBO ALSO USES PERPETUAL INVENTORY METHOD)

C) MAKE ANY NECESSARY WORKSHEET ENTRIES FOR 2016 CONNECTED WITH THIS MERCHANDISE

D)MAKE ANY NECESSARY WORKSHEET ENTRIES IN 2017 CONNECTED WITH THIS MERCHANDISE

E) MAKE ANY NECESSARY WORKSHEET ENTRIES IN 2018 CONNECTED WITH THIS MERCHANDISE

F) IN 2016, GANDOFF REPORTED UNCONSOLIDATED INCOME OF $4,000,000 AND BILBO REPORTED INCOME OF $300,000 WHAT WAS CONSOLIDATED INCOME IN 2016

G) IN 2017, GANDOFF REPORTED UNCONSOLIDATED INCOME OF $4,300,000 AND BILBO REPORTED INCOME OF $333,000 WHAT WAS CONSOLDIATED INCOME IN 2017

H) IN 2018 GANDOFF REPORTED UNCONSOLIDTED INCOME OF $5,000,000 AND BILBO REPORTED INCOME OF $500,000 WHAT WAS CONSOLIDATED INCOME IN 2018?

In: Accounting

The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2016, the...

The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2016, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $640,000 on January 1, 2016, the beginning of the year. During the year, dividends of $43,000 were paid.

Accounts payable $ 65,500
Accounts receivable 264,000
Cash 180,500
Common stock 70,000
Fees earned 849,200
Land 541,000
Miscellaneous expense 6,900
Rent expense 32,000
Supplies 5,200
Supplies expense 4,100
Utilities expense 28,000
Wages expense 520,000
Required:
1. Prepare an income statement for the year ended December 31, 2016. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred, enter that amount as a negative number using a minus sign. A colon (:) will automatically appear if it is required.
2. Prepare a retained earnings statement for the year ended December 31, 2016. Refer to the information given and the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Enter all amounts as positive numbers. The word “Less” or “Add” is not needed in the Retained Earnings Statement.
3. Prepare a balance sheet as of December 31, 2016. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.
4. What item appears on both the retained earnings statement and the balance sheet?

In: Accounting

Sweet Dates Company offers a premium to its customers—a glass bowl (cost to Sweet Dates is...

Sweet Dates Company offers a premium to its customers—a glass bowl (cost to Sweet Dates is $0.90) upon return of 40 coupons. Two coupons are placed in each box of dates sold. The company estimates, on the basis of past experience, that only 70% of the coupons will ever be redeemed. During 2016, 10 million boxes of dates are sold, for cash, at $0.30 each. Eight million coupons are redeemed during 2016. Sweet Dates purchased 360,000 glass bowls for the plan on January 1, 2016.

1. Prepare the journal entries related to the sale of dates and the premium plan in 2016.
2. Show how the preceding items would be reported on the December 31, 2016, balance sheet.

q2

On January 1, 2017, Fro-Yo Inc. began offering customers a cash rebate of $5.00 if the customer mails in 10 proof-of-purchase labels from its frozen yogurt containers. Based on historical experience, the company estimates that 20% of the labels will be redeemed. During 2017, the company sold 5,000,000 frozen yogurt containers at $1, cash, per container. From these sales, 800,000 labels were redeemed in 2017, 150,000 labels were redeemed in 2018, and the remaining labels were never redeemed.

1. Prepare the journal entries related to the sale of frozen yogurt and the cash rebate offer for 2017 and 2018.
2. Next Level Assume that 300,000 labels were redeemed in 2018. Prepare the journal entries related to the cash rebate offer for 2018.

In: Accounting

Johnson, Inc. manufactures car seats in its Houston plant. Each car seat passes through the Assembly...

Johnson, Inc. manufactures car seats in its Houston plant. Each car seat passes through the Assembly Dept and the Testing Dept. This problem focuses on the Assembly Dept. the process-costing system at Johnson, Inc. has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the Assembly Dept finished work on each car seat, it is immediately transferred to Testing.

Johnson, Inc. uses the First In First Out Method of process costing. Data for the Assembly Dept for June 2016 is:

                                                      Physical Units             Direct                  Conversion     

                                                (Car Seats)                 Materials           Costs

Work-in-process, June 1*             5,000               $1,250,000      $402,750

Started during Jun 2016              20,000

Completed during Jun 2016        22,500

Work-in-process Jun 30**            2,500

Total costs added during

   June 2016                                                           $4,500,000      $2,337,500

*Degree of completion: DM ?%; CC 60%

**Degree of completion: DM ?%; CC 70%

  1. For each cost category; compute equivalent units in the Assembly Dept. Show

      physical units in the first column of the schedule.

  1. For each cost category, summarize total Assembly Dept costs for June 2016 and

             calculate the cost per equivalent unit.

  1. Assign total costs to units completed and transferred out and to units in ending Work in Process

     

  1. Prepare the journal entry to move costs from WIP-Assembly Dept to the WIP-         

Testing Department.

In: Accounting

1. Calculate the average return over the last 3 years. 2. Calculate the standard deviation of...

1. Calculate the average return over the last 3 years.

2. Calculate the standard deviation of your company’s returns over the last 3 years.

[I will make sure to give thumbs up to those who answer]

8/1/2016

100.975754

9/1/2016

108.172951

10/1/2016

108.6418

11/1/2016

105.752083

12/1/2016

111.392426

1/1/2017

116.711029

2/1/2017

131.753159

3/1/2017

138.767197

4/1/2017

138.757538

5/1/2017

147.557281

6/1/2017

139.689148

7/1/2017

144.257507

8/1/2017

159.068329

9/1/2017

150.072464

10/1/2017

164.600632

11/1/2017

167.336838

12/1/2017

165.378021

1/1/2018

163.618988

2/1/2018

174.065674

3/1/2018

164.629501

4/1/2018

162.15683

5/1/2018

183.361038

6/1/2018

182.334488

7/1/2018

187.436829

8/1/2018

224.21698

9/1/2018

223.135147

10/1/2018

216.334518

11/1/2018

176.519318

12/1/2018

156.463837

1/1/2019

165.093445

2/1/2019

171.749146

3/1/2019

189.221313

4/1/2019

199.900192

5/1/2019

174.398407

6/1/2019

197.919998

7/1/2019

203.300003

In: Finance

Required information Exercise 17-8 Liquidity analysis and interpretation LO P3 [The following information applies to the...

Required information

Exercise 17-8 Liquidity analysis and interpretation LO P3

[The following information applies to the questions displayed below.]

Simon Company’s year-end balance sheets follow.

At December 31 2017 2016 2015
Assets
Cash $ 25,420 $ 29,713 $ 30,952
Accounts receivable, net 89,900 62,900 55,300
Merchandise inventory 114,000 82,500 55,000
Prepaid expenses 8,186 7,800 3,439
Plant assets, net

197,691

 192,257 171,109
Total assets $ 435,197 $ 375,170 $ 315,800
Liabilities and Equity
Accounts payable $ 107,280 $ 62,770 $ 41,269
Long-term notes payable secured by
mortgages on plant assets		 80,999 85,426 69,094
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 84,418 64,474 42,937
Total liabilities and equity $ 435,197 $ 375,170 $ 315,800


The company’s income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit:

For Year Ended December 31 2017 2016
Sales $ 565,756 $ 446,452
Cost of goods sold $ 345,111 $ 290,194
Other operating expenses 175,384 112,952
Interest expense 9,618 10,268
Income taxes 7,355 6,697
Total costs and expenses 537,468 420,111
Net income $ 28,288 $ 26,341
Earnings per share $ 1.74 $ 1.62

1. Compute days' sales uncollected

Days' Sales Uncollected
Choose Numerator: / Choose Denominator: x Days = Days' Sales Uncollected
Current assets / Current liabilities x = Days' Sales Uncollected
2017: / x = 0 days
2016: / x = 0 days

2. Compute accounts receivable turnover

Accounts Receivable Turnover
Choose Numerator: / Choose Denominator: = Accounts Receivable Turnover
Current assets / Current liabilities = Accounts receivable turnover
2017: / = 0 times
2016: / = 0 times

3. Compute inventory turnover

Inventory Turnover
Choose Numerator: / Choose Denominator: = Inventory Turnover
/ = Inventory turnover
2017: / = times
2016: / = times

4. Compute days' sales in inventory

Days’ Sales In Inventory
Choose Numerator: / Choose Denominator: x Days = Days’ Sales In Inventory
/ x = Days’ sales in inventory
2017: / x = days
2016: / x = days

In: Accounting

Common-Size Income Statements and Horizontal Analysis Income statements for Mariners Corp. for the past two years...

Common-Size Income Statements and Horizontal Analysis

Income statements for Mariners Corp. for the past two years are as follows:

(amounts in thousands
of dollars)
2017 2016
Sales revenue $60,000 $50,000
Cost of goods sold 42,000 30,000
   Gross profit $18,000 $20,000
Selling and administrative expense 9,000 5,000
   Operating income $9,000 $15,000
Interest expense 2,000 2,000
   Income before tax $7,000 $13,000
Income tax expense 2,000 4,000
   Net income $5,000 $9,000

Required:

1. Using the format in Example 13-5, prepare common-size comparative income statements for the two years for Mariners Corp. Round percentages to one decimal point.

Mariners Corp.
Common-Size Comparative Income Statements
For The Years Ended December 31, 2017 And 2016 (In Thousands of Dollars)
2017 Dollars 2017 Percent 2016 Dollars 2016 Percent
Sales revenue $ % $ %
Cost of goods sold
Gross profit $ % $ %
Selling and administrative expense
Operating income $ % $ %
Interest expense
Income before tax $ % $ %
Income tax expense
Net income $ % $ %

Feedback

Prepare in correct form common-size comparative income statements for two years. Set up with five columns.

2. Based on Mariner's common size statements in 2017 compared to 2016, it can be concluded that

all of these are true.

gross profit as a percentage of sales declined due to higher cost of goods sold.

net income decreased both in dollars and as a percentage of sales.

selling and administrative expenses increased both in dollars as well as percentage of sales.

a

Feedback

Correct

3. Using the format in Example 13-2, prepare comparative income statements for Mariners Corp., including columns for the dollars and for the percentage increase or decrease in each item on the statement. Round all percentages to the nearest whole percent. If an answer is zero, enter "0".

Mariners Corp.
Comparative Statements of Income
For The Years Ended December 31, 2017 And 2016
December 31, 2017 December 31, 2016 Increase/Decrease Dollars Increase/Decrease (Percent)
Sales revenue $ $ $ %
Cost of goods sold
Gross profit $ $ $
Selling and administrative expense
Operating income $ $ $
Interest expense
Income before tax $ $ $
Income tax expense
Net income $ $ $

In: Accounting

Common-Size Income Statements and Horizontal Analysis Income statements for Mariners Corp. for the past two years...

Common-Size Income Statements and Horizontal Analysis

Income statements for Mariners Corp. for the past two years are as follows:

(amounts in thousands
of dollars)
2017 2016
Sales revenue $60,000 $50,000
Cost of goods sold 42,000 30,000
   Gross profit $18,000 $20,000
Selling and administrative expense 9,000 5,000
   Operating income $9,000 $15,000
Interest expense 2,000 2,000
   Income before tax $7,000 $13,000
Income tax expense 2,000 4,000
   Net income $5,000 $9,000

Required:

1. Using the format in Example 13-5, prepare common-size comparative income statements for the two years for Mariners Corp. Round percentages to one decimal point.

Mariners Corp.
Common-Size Comparative Income Statements
For The Years Ended December 31, 2017 And 2016 (In Thousands of Dollars)
2017 Dollars 2017 Percent 2016 Dollars 2016 Percent
Sales revenue $ % $ %
Cost of goods sold
Gross profit $ % $ %
Selling and administrative expense
Operating income $ % $ %
Interest expense
Income before tax $ % $ %
Income tax expense
Net income $ % $ %

Feedback

Prepare in correct form common-size comparative income statements for two years. Set up with five columns.

2. Based on Mariner's common size statements in 2017 compared to 2016, it can be concluded that

all of these are true.

gross profit as a percentage of sales declined due to higher cost of goods sold.

net income decreased both in dollars and as a percentage of sales.

selling and administrative expenses increased both in dollars as well as percentage of sales.

a

Feedback

Correct

3. Using the format in Example 13-2, prepare comparative income statements for Mariners Corp., including columns for the dollars and for the percentage increase or decrease in each item on the statement. Round all percentages to the nearest whole percent. If an answer is zero, enter "0".

Mariners Corp.
Comparative Statements of Income
For The Years Ended December 31, 2017 And 2016
December 31, 2017 December 31, 2016 Increase/Decrease Dollars Increase/Decrease (Percent)
Sales revenue $ $ $ %
Cost of goods sold
Gross profit $ $ $
Selling and administrative expense
Operating income $ $ $
Interest expense
Income before tax $ $ $
Income tax expense
Net income $ $

In: Accounting

Smart Hardware purchased new shelving for its store on April 1, 2013. The shelving is expected...

Smart Hardware purchased new shelving for its store on April 1, 2013. The shelving is expected to have a 20-year life and no residual value. Smart Hardware adopts the cost model as its accounting policy in subsequently measuring its property, plant, and equipment. The following expenditures were associated with the purchase:

  

  Cost of the shelving $ 120,000  
  Freight charges 5,200
  Sales taxes 7,800
  Installation of shelving 27,000
  Cost to repair shelf damaged during installation 4,000

    

a-1.

Compute depreciation expense for the years 2013 through 2016, using the straight-line method with fractional years rounded to the nearest whole month. (Omit the "$" sign in your response.)

  

Year Depreciation expense
2013 $   
2014   
2015   
2016   

   

a-2.

Compute depreciation expense for the years 2013 through 2016, using the 200 percent declining-balance, using the half-year convention. (Omit the "$" sign in your response.)

  

Year Depreciation expense
2013 $   
2014   
2015   
2016   

  

a-3.

Compute depreciation expense for the years 2013 through 2016, using the 150 percent declining-balance, using the half-year convention. (Omit the "$" sign in your response.)

  

Year Depreciation expense
2013 $   
2014   
2015   
2016   

  

c-1.

Which of the depreciation methods applied in part a resulted in the lowest reported book value at the end of 2016?
(Click to select)

  

c-2.

Is book value an estimate of an asset’s fair value?
(Click to select)Yes or No
d-1.

Assume that Smart Hardware sold the old shelving that was being replaced. The old shelving had originally cost $90,000. Its book value at the time of the sale was $4000. Record the sale of the old shelving was sold for $12,000 cash. (Omit the "$" sign in your response.)
General Journal Debit Credit
  (Click to select)    
  (Click to select)    
       (Click to select)    
       (Click to select)    
d-2.

Assume that Smart Hardware sold the old shelving that was being replaced. The old shelving had originally cost $90,000. Its book value at the time of the sale was $4000. Record the sale of the old shelving was sold for $2,000 cash. (Omit the "$" sign in your response.)

  

General Journal Debit Credit
  (Click to select)    
  (Click to select)    
  (Click to select)    
       (Click to select)    

In: Accounting

American customer satisfaction index: Starbucks in the U.S. 2006-2016 2006 77 2007 78 2008 77 2009...

American customer satisfaction index: Starbucks in the U.S. 2006-2016

2006

77

2007

78

2008

77

2009

76

2010

78

2011

80

2012

76

2013

80

2014

76

2015

74

2016

75

ABOUT THIS STATISTIC: This statistic shows the American customer satisfaction index scores of Starbucks in the United States from 2006 to 2016. Starbucks had an ACSI score of 75 in 2016.

Starbucks

The Starbucks Corporation is a coffeehouse chain based in Seattle which operates more than 25 thousand stores worldwide (as of 2016). Just over 50 percent (around 7,880) of all Starbucks stores were company-operated stores, from which Starbucks generates around 79 percent of its revenue. Around 5,292 stores are licensed stores. Starbucks, which became a publicly traded company on June 26, 1992, generated around 21.32 billion U.S. dollars in revenue in the 2016 fiscal year.

In its company-operated stores Starbucks generates 74 percent of revenue from the sale of beverages, 19 percent from food sales and three percent from the sale of packaged and single serve coffees. Another four percent of retail sales are attributable to coffee-making equipment and other merchandise.

The United States is Starbucks’ biggest and most important market. In 2016, revenues from Starbucks Americas segment amounted to more than 14 billion U.S. dollars. The

Americas segment comprises over 13,000 stores in the U.S., Canada, Mexico, Puerto Rico, Brazil Chile and other American countries with around 86 percent of those stores located in the United States. 2

  1. Plot this set of data as a scatterplot in excel. Insert excel graph here:
  1. Find the correlation coefficient.
  2. Is it positive or negative?
  3. What does the sign tell us?
  4. What does the correlation imply about the relationship between the time and the satisfaction?
  1. Is the correlation significant? Why or why not? (Answer in 1-2 complete sentences.) (Use the Pearson calculator).

20) Draw the trendline in excel. Can the regression line be used for prediction? No, it is too weak. Insert excel graph here:

In: Statistics and Probability