Miller Corp. has reported pre-tax income of $250,000 for calendar 2020, before considering the five items below. Prepare the adjusting entries needed at December 31, 2020 in order to correctly state the 2020 pre-tax income. If no entry is needed, write NONE.
1. Interest on a $42,000, 7%, six-year note payable was last paid on September 1, 2020.
2. On May 31, 2020, Melody entered into a contract to provide services to a customer for eighteen months beginning June 1. The customer paid the $18,000 fee in full on June 1 and Maison credited it to Service Revenue.
3. On August 1, 2020, Maison paid a year’s rent in advance on a warehouse, and debited the $48,000 payment to Prepaid Rent.
4. Depreciation on office equipment for 2020 is $17,000.
5. On December 18, 2020, Maison paid the local newspaper $1,000 for an advertisement to be run in January of 2021, debiting it to Prepaid Advertising.
In: Accounting
At January 1, 2020, Headland Company’s outstanding shares
included the following.
| 295,000 shares of $50 par value, 7% cumulative preferred stock |
| 854,000 shares of $1 par value common stock |
Net income for 2020 was $2,499,000. No cash dividends were declared
or paid during 2020. On February 15, 2021, however, all preferred
dividends in arrears were paid, together with a 5% stock dividend
on common shares. There were no dividends in arrears prior to
2020.
On April 1, 2020, 436,000 shares of common stock were sold for $10
per share, and on October 1, 2020, 106,000 shares of common stock
were purchased for $21 per share and held as treasury stock.
Compute earnings per share for 2020. Assume that financial
statements for 2020 were issued in March 2021. (Round
answer to 2 decimal places, e.g. $2.55.)
| Earnings per share |
$ |
In: Accounting
JTC purchased call options on Flynn common shares on July 7, 2020, for $200 as a speculative investment. The call options give JTC the right to buy 100 shares at a strike price of $20 each. The options expire on January 31, 2021.
The following data is observed through 2020:
| Flynn Stock Price | Option Time Value | |
| July 7, 2020 | $20 | $200 |
| September 30, 2020 | $18 | $150 |
| December 31, 2020 | $22 | $90 |
a. At September 30, 2020, the options are on JTC's balance sheet at a value of ? Muliple Choice: ["$350", "$150", "$200", "$1,950"].
b. In the fourth quarter (October - December) of 2020, JTC records a loss in time value of? Muliple Choice: ["$150", "$90", "$110", "$60"].
c. At December 31, 2020, the options are on JTC's balance sheet at a value of? Muliple Choice: ["$260", "$350", "$460", "$490", "$200", "$290"].
In: Finance
XYZ Company recorded the following information related to their inventory
accounts for 2020:
January 1, 2020 December 31, 2020
Direct materials 31,000 50,000
Work in process 38,000 41,000
Finished goods 22,000 34,000
The following information was taken from XYZ Company's accounting records
for 2020:
Sales revenue ........................................... $630,000
Direct materials purchased .............................. ?
Depreciation, factory equipment ......................... 34,000
Prime costs ............................................. 250,000
Utilities (60% for factory; 40% for office building) .... 20,000
Sales commissions ....................................... 71,000
Indirect materials ...................................... ?
Depreciation, office equipment .......................... 30,000
Rent, factory building .................................. 56,000
Net income .............................................. 10,000
Direct labor ............................................ ?
Advertising ............................................. 68,000
Production supervisor's salary .......................... 74,000
Additional information:
1. Direct labor comprised 35% of the conversion costs for 2020.
2. The actual overhead cost for 2020 was equal to the overhead applied
to production. Thus there was no overhead variance for 2020.
Calculate XYZ Company's indirect materials cost for 2020.In: Accounting
XYZ Company recorded the following information related to their inventory
accounts for 2020:
January 1, 2020 December 31, 2020
Direct materials 31,000 50,000
Work in process 38,000 41,000
Finished goods 22,000 34,000
The following information was taken from XYZ Company's accounting records
for 2020:
Sales revenue ........................................... $630,000
Direct materials purchased .............................. ?
Depreciation, factory equipment ......................... 34,000
Prime costs ............................................. 250,000
Utilities (60% for factory; 40% for office building) .... 20,000
Sales commissions ....................................... 71,000
Indirect materials ...................................... ?
Depreciation, office equipment .......................... 30,000
Rent, factory building .................................. 56,000
Net income .............................................. 10,000
Direct labor ............................................ ?
Advertising ............................................. 68,000
Production supervisor's salary .......................... 74,000
Additional information:
1. Direct labor comprised 35% of the conversion costs for 2020.
2. The actual overhead cost for 2020 was equal to the overhead applied
to production. Thus there was no overhead variance for 2020.
Calculate the direct materials purchased by XYZ Company in 2020.In: Accounting
XYZ Company recorded the following information related to their inventory
accounts for 2020:
January 1, 2020 December 31, 2020
Direct materials 31,000 50,000
Work in process 38,000 41,000
Finished goods 22,000 34,000
The following information was taken from XYZ Company's accounting records
for 2020:
Sales revenue ........................................... $630,000
Direct materials purchased .............................. ?
Depreciation, factory equipment ......................... 34,000
Prime costs ............................................. 250,000
Utilities (60% for factory; 40% for office building) .... 20,000
Sales commissions ....................................... 71,000
Indirect materials ...................................... ?
Depreciation, office equipment .......................... 30,000
Rent, factory building .................................. 56,000
Net income .............................................. 10,000
Direct labor ............................................ ?
Advertising ............................................. 68,000
Production supervisor's salary .......................... 74,000
Additional information:
1. Direct labor comprised 35% of the conversion costs for 2020.
2. The actual overhead cost for 2020 was equal to the overhead applied
to production. Thus there was no overhead variance for 2020.
Calculate XYZ Company's indirect materials cost for 2020.In: Accounting
Suppose General Motors demands labor according to the labor demand function ? = 40 − 0.5?, where ? is the hourly wage and ? is the number of employees. The United Auto Workers Union has a utility function given by ? = ? ∗ ?.
a. In 1984, the United Auto Workers Union started negotiations with General Motors by assuming that they were a monopoly union. Find the wage and employment demands that the United Auto Workers Union would have demanded before any bargaining began.
b. If General Motors and the United Auto Workers Union both had excellent bargaining representatives, would this be the final labor contract? If not, then explain in words and graphically where they would end up after the bargaining process.
In: Economics
Suppose General Motors demands labor according to the labor demand function ? = 40 − 0.5?, where ? is the hourly wage and ? is the number of employees. The United Auto Workers Union has a utility function given by ? = ? ∗ ?.
a. In 1984, the United Auto Workers Union started negotiations with General Motors by assuming that they were a monopoly union. Find the wage and employment demands that the United Auto Workers Union would have demanded before any bargaining began.
b. If General Motors and the United Auto Workers Union both had excellent bargaining representatives, would this be the final labor contract? If not, then explain in words and graphically where they would end up after the bargaining process.
In: Economics
Carla Vista Corp.’s net income for 2020 is $140,600. The only potentially dilutive securities outstanding were 1,000 call options issued during 2019, with each option being exercisable for one share at $16. None have been exercised, and 28,700 common shares were outstanding during 2020. The average market price of the company’s shares during 2020 was $20.
QUESTIONS:
A) Calculate diluted earnings per share for the year ended December 31, 2020.
B) Assuming that the 1,000 call options were instead issued on November 1, 2020 (rather than in 2019), calculate diluted earnings per share for the year ended December 31, 2020. The average market price during the last two months of 2020 was $20.
In: Accounting
On 1 March 2020, goods valuing $1000 were bought from Mr. D.
On 15 March 2020, goods, valued at $200, returned to Mr. D .
On 1 May 2020, goods for $2000 were sold to Mr. E.
On 15 May 2020, Mr. E returned goods, valued at $500, to the business.
On 1 June 2020, goods, valued at $600, were bought from Mr. Z on credit.
On 15 June 2020, the due amount of $800 was paid to Mr. D through cheque.
On 15 July 2020, the due amount of $1500 was received from Mr. E through cheque.
Draw the T account of Purchases, Sales, Mr. D, Mr. E, Return inwards, Return outwards, Mr. Z and Bank.
In: Accounting