Questions
XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1,...

XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1, 2021, XYZ issued an additional 47,000 shares for cash. On January 1, 2021, XYZ issued 17,000 shares of convertible preferred stock. The preferred stock had a par value of $100 per share and paid a 6% dividend. Each share of preferred stock is convertible into 9 shares of common. During 2021, XYZ paid the regular annual dividend on the preferred and common stock. Net income for the year was $270,000.

Required: Calculate XYZ's basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)

Earning per share
Basic
Diluted

In: Accounting

Crane Company purchased equipment for $100000 on January 1, 2020 and will use the double-declining-balance method...

Crane Company purchased equipment for $100000 on January 1, 2020 and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5-year life and a $18000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2022 will be

$13536.

$19680.

$14400.

$24000.

On October 1, 2022, Blossom Company places a new asset into service. The cost of the asset is $120000 with an estimated 4-year life and $20000 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2022 balance sheet assuming that Blossom Company uses the double-declining-balance method of depreciation?

$85000.

$105000.

$100000.

$112500.

Flounder Corp. bought equipment on January 1, 2022. The equipment cost $350000 and had an expected salvage value of $35000. The life of the equipment was estimated to be 4 years. The company uses the straight-line method of depreciation. The book value of the equipment at the beginning of the third year would be

$350000.

$315000.

$192500.

$157500.

A company has the following assets:

Buildings and Equipment,

    less accumulated depreciation of $4000000

$20000000

Copyrights

2000000

Patents

10000000

Land

12000000


The total amount reported under Property, Plant, and Equipment would be

$32000000.

$34000000.

$42000000.

$44000000.

In: Accounting

Challenge Exercise 7-1 Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the...

Challenge Exercise 7-1

Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity:
Sales (78,100 units) $7,107,100
Cost of goods sold 4,978,875
Gross profit 2,128,225
Operating expenses 781,000
Net income $1,347,225

Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed.

In October, Conklan Company receives a special order for 4,000 fireplaces at $61 each from Langston’s Landscape Company. Acceptance of the order would result in an additional $6,400 of shipping costs but no increase in fixed operating expenses.
Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Reject order Accept order Net Income
Increase (Decrease)
Revenues $ $ $
Costs
   Cost of Goods Sold
   Operating Expenses
   Shipping Expenses
Net Income $ $ $
Should Conklan Company accept the special order? Why or why not?

YesNo

, its income is

higherlowersame

with this order.
Before Conklan could give Langston’s Landscape Company an answer, they received a special order from Benson Building & Supply for 15,500 fireplaces. Benson is willing to pay $65 per fireplace but they want a special design imbedded into the fireplace that increases cost of goods sold by $66,650. The special design also requires the purchase of a part that costs $5,300 and will have no future use for Conklan Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are involved. Due to capacity limitations, Conklan cannot accept both special orders. Which order should be accepted? Document your decision by preparing an incremental analysis for Benson’s order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Reject order Accept order Net Income
Increase (Decrease)
Revenues $ $ $
Costs
   Cost of Goods Sold
   Operating Expenses
   Unique part
Net Income $ $ $
Conklan should accept the order from

Langston’s Landscape CompanyBenson Building and Supply

In: Accounting

Challenge Exercise 7-1 Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the...

Challenge Exercise 7-1

Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity:
Sales (68,300 units) $6,283,600
Cost of goods sold 4,354,125
Gross profit 1,929,475
Operating expenses 683,000
Net income $1,246,475

Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed.

In October, Conklan Company receives a special order for 3,600 fireplaces at $61 each from Langston’s Landscape Company. Acceptance of the order would result in an additional $6,700 of shipping costs but no increase in fixed operating expenses.
Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Reject order Accept order Net Income
Increase (Decrease)
Revenues $ $ $
Costs
   Cost of Goods Sold
   Operating Expenses
   Shipping Expenses
Net Income $ $ $
Should Conklan Company accept the special order? Why or why not?

YesNo

, its income is

higherlowersame

with this order.
Before Conklan could give Langston’s Landscape Company an answer, they received a special order from Benson Building & Supply for 15,400 fireplaces. Benson is willing to pay $64 per fireplace but they want a special design imbedded into the fireplace that increases cost of goods sold by $67,760. The special design also requires the purchase of a part that costs $4,700 and will have no future use for Conklan Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are involved. Due to capacity limitations, Conklan cannot accept both special orders. Which order should be accepted? Document your decision by preparing an incremental analysis for Benson’s order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Reject order Accept order Net Income
Increase (Decrease)
Revenues $ $ $
Costs
   Cost of Goods Sold
   Operating Expenses
   Unique part
Net Income $ $ $
Conklan should accept the order from

Benson Building and SupplyLangston’s Landscape Company

.

In: Accounting

Challenge Exercise 7-1 Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the...

Challenge Exercise 7-1

Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity:
Sales (78,100 units) $7,107,100
Cost of goods sold 4,978,875
Gross profit 2,128,225
Operating expenses 781,000
Net income $1,347,225

Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed.

In October, Conklan Company receives a special order for 4,000 fireplaces at $61 each from Langston’s Landscape Company. Acceptance of the order would result in an additional $6,400 of shipping costs but no increase in fixed operating expenses.
Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Reject order Accept order Net Income
Increase (Decrease)
Revenues $ $ $
Costs
   Cost of Goods Sold
   Operating Expenses
   Shipping Expenses
Net Income $ $ $
Should Conklan Company accept the special order? Why or why not?

YesNo

, its income is

higherlowersame

with this order.
Before Conklan could give Langston’s Landscape Company an answer, they received a special order from Benson Building & Supply for 15,500 fireplaces. Benson is willing to pay $65 per fireplace but they want a special design imbedded into the fireplace that increases cost of goods sold by $66,650. The special design also requires the purchase of a part that costs $5,300 and will have no future use for Conklan Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are involved. Due to capacity limitations, Conklan cannot accept both special orders. Which order should be accepted? Document your decision by preparing an incremental analysis for Benson’s order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Reject order Accept order Net Income
Increase (Decrease)
Revenues $ $ $
Costs
   Cost of Goods Sold
   Operating Expenses
   Unique part
Net Income $ $ $
Conklan should accept the order from

Langston’s Landscape CompanyBenson Building and Supply

.

In: Accounting

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled...

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,282,028 as follows.

Work in process, November 1
   Materials $79,300
   Conversion costs 48,900 $128,200
Materials added 1,589,900
Labor 225,000
Overhead 338,928


Production records show that 34,700 units were in beginning work in process 30% complete as to conversion costs, 660,800 units were started into production, and 24,300 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.

Determine the equivalent units of production and the unit production costs for the Assembly Department.

Determine the assignment of costs to goods transferred out and in process.
Prepare a production cost report for the Assembly Department.

In: Accounting

Sandhill Company has the following information available for September 2020. Unit selling price of video game...

Sandhill Company has the following information available for September 2020.

Unit selling price of video game consoles $480
Unit variable costs $288
Total fixed costs $57,600
Units sold 600

Part 1

Compute the unit contribution margin.

Unit contribution margin enter the unit contribution margin

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Part 2

Prepare a CVP income statement that shows both total and per unit amounts.

SANDHILL COMPANY
CVP Income Statement
For the Month Ended September 30, 2020

Total

Per Unit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

$enter a dollar amount

$enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

enter a dollar amount

enter a dollar amount
select a summarizing line for the first part                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

enter a total amount for the first part

$enter a total amount per unit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

enter a dollar amount
select a closing name for this statement                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

$enter a total net income or loss amount

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Part 3

Compute Sandhill’ break-even point in units.

Break-even point in units enter Break-even point in units units

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Part 4

Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.

SANDHILL COMPANY
CVP Income Statement
For the Month Ended September 30, 2020

Total

Per Unit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

$enter a dollar amount

$enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

enter a dollar amount

enter a dollar amount
select a summarizing line for the first part                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

enter a total amount for the first part

$enter a total amount per unit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

enter a dollar amount
select a closing name for this statement                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

$enter a total net income or loss amount

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In: Accounting

Cullumber Construction Company uses the percentage-of-completion method of accounting. In 2020, Cullumber began work under a...

Cullumber Construction Company uses the percentage-of-completion method of accounting. In 2020, Cullumber began work under a non-cancellable contract #E2-D2, which provided for a contract price of $2,178,000. Other details follow:

2020 2021

Costs incurred during the year

 $706,640 $1,422,000

Estimated costs to complete, as at December 31

 899,360 0

Billings during the year (non-refundable)

 420,000 1,713,600

Collections during the year

 352,000 1,481,000

How much revenue should be recognized in 2020 and in 2021?

2020 2021

Revenue to be recognized

 $enter a dollar amount $enter a dollar amount

Assuming the same facts as those above except that Cullumber uses the completed-contract method of accounting, how much revenue should be recognized in 2021?

2021

Revenue to be recognized

 $enter a dollar amount

  

  

Prepare a complete set of journal entries for 2020. (using the percentage-of-completion method. Use Materials, Cash, Payables for costs incurred to date.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

enter an account title to record cost of construction

enter a debit amount

enter a credit amount

enter an account title to record cost of construction

enter a debit amount

enter a credit amount

(To record cost of construction)

enter an account title to record progress billings

enter a debit amount

enter a credit amount

enter an account title to record progress billings

enter a debit amount

enter a credit amount

(To record progress billings)

enter an account title to record collections

enter a debit amount

enter a credit amount

enter an account title to record collections

enter a debit amount

enter a credit amount

(To record collections)

enter an account title to record revenues

enter a debit amount

enter a credit amount

enter an account title to record revenues

enter a debit amount

enter a credit amount

(To record revenues)

enter an account title to record construction expenses

enter a debit amount

enter a credit amount

enter an account title to record construction expenses

enter a debit amount

enter a credit amount

(To record construction expenses)

In: Accounting

Cullumber Company has the following information available for September 2020. Unit selling price of video game...

Cullumber Company has the following information available for September 2020.

Unit selling price of video game consoles $500
Unit variable costs $400
Total fixed costs $50,000
Units sold 600

Compute the unit contribution margin.

Prepare a CVP income statement that shows both total and per unit amounts.

Compute Cullumber’ break-even point in units.

Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.

In: Accounting

Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021....

Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021.

2020
Mar. 14 Purchased merchandise on credit from Ferris Inc. for $168,000. The terms
were 1/10, n/30 (assume a perpetual inventory system).
Apr. 14 Zing paid $39,000 cash and replaced the $129,000 remaining balance of the account
payable to Ferris Inc. with a 5%, 60-day note payable.
May 21 Borrowed $139,000 from Scotiabank by signing a 4.0%, 90-day note.
? Paid the note to Ferris Inc. at maturity.
? Paid the note to Scotiabank at maturity.
Dec. 15 Borrowed $114,000 and signed a 5.25%, 120-day note with National Bank.
Dec. 31 Recorded an adjusting entry for the accrual of interest on the note to National Bank.
2021
? Paid the note to National Bank at maturity.


Required:
1. Determine the maturity dates of the three notes just described.



2. Present journal entries for each of the preceding dates. (Use 365 days an year. Do not round intermediate calculations and round the final answers to 2 decimal places.)

next question -

Johnson Inc.’s non-strategic investment portfolio at December 31, 2019, consisted of the following:

Debt and Equity Investments* Cost Fair Value
11,300 Xavier Corp. common shares $ 184,755 $ 163,850
1,900 Young Inc. common shares 98,800 94,240
133,000 Zed Corp. common shares 43,900 39,500

*The fair value adjustments were recorded on December 31, 2019.

Johnson had no other debt and equity investments at December 31, 2019, other than those shown above. During 2020, Johnson engaged in the following transactions:

2020
Jan. 17 Sold 1,400 common shares of Young Inc. for $67,200. Johnson Inc. planned to hold these shares for less than one year.
Mar. 3 Purchased 6,300 common shares of Allen Corp. for $378,000. The shares represent a 30% ownership in Allen Corp.
June 7 Received dividends from Allen Corp. at the rate of $3.80 per share.
Aug. 14 Sold the remaining Young Inc. shares at $32.80.
Nov. 28 Purchased a 5% ownership in Davis Corp. by acquiring 11,300 common shares at a total of $100,570. Johnson Inc. will sell these shares in six to nine months.
Dec. 30 Sold 11,300 shares of Xavier Corporation for $180,800.
Dec. 31 Allen Corp. announced a net profit of $286,500 for the year.


Required:
Journalize the above transactions.




Analysis Component:
Assume the Allen Corp. shares were sold on January 16, 2021, for $377,000. Calculate the investment income or loss and select whether it is unrealized/realized?

In: Accounting