The Painting Department of Y Manufacturing Company has the following production and manufacturing cost data for October. Production: Beginning inventory 8,000 units that are 100% complete as to materials and 40% complete as to conversion costs; units started into production 27,000; ending inventory of 12,000 units that are 20% complete as to conversion costs. Manufacturing Costs: Beginning work in process inventory of $40,000, comprised of $30,000 of materials and $10,000 of conversion costs. Materials added during the month, $110,000; labor and overhead applied during the month, $62,000 and $55,000, respectively. Instructions 1. Compute the equivalent units of production for materials and conversion costs for the month of October. Physical units Materials Conversion cost Transferred out Work in process (October 31st) Total 2. Compute the unit costs for materials and conversion costs. Total Per unit Materials Conversion cost Total 3. Determine the costs to be assigned to the units transferred out and ending work in process. Cost to be accounted for Total Transferred out Work in process Materials Conversion cost

Stupendous Games developed a new play station called StupendouS. Stupendous Games has a standard cost system to help control its costs. The following standards have been established for StupendouS.
• Direct materials 15 grams per StupendouS.
• Standard direct material cost per StupendouS is $11.
• Direct labour 1.2 hours per StupendouS.
• Standard cost of direct labour is $15.00 per StupendouS.

During October the company produced 9,000 StupendouS units. Production data for October are:

• Direct materials: 165,000 grams were purchased at a cost of $115,000; 20,000 grams of this was still in inventory at the end of the month.
• Direct labour: 11,000 direct labour hours were worked at a cost of $142,500.

Required:
Compute the following variances for October:
a) Direct materials price and quantity variances.
b) Direct labour rate and efficiency variances.
c) Are the variances computed in (a) and (b) linked? Provide a brief commentary on the variances computed above, including explanations regarding the price and the quantity, and the rate and the efficiency variances.

Jake's Sporting Goods sells sporting goods and apparel in Omaha, NE. On October 17, Jake’s purchased $50,000 of sporting goods from Cincinnati Wholesale Distributors with terms FOB shipping point and 1/10, n/EOM. On October 18, Jake’s purchased $45,000 of sporting goods from the Chicago Sports Wholesalers with terms FOB destination and 3/15, n/30. Both suppliers hired KC Trucking Company to deliver the goods.

The trucks carrying these goods collided on the bridge over the Missouri River between Omaha and Council Bluffs. Both drivers were "fished" out of the river and were not hurt. However, all of the merchandise was destroyed. Both suppliers have sent Jake's Sporting Goods invoices and are expecting payment. The date is October 25.

Advise Jake on what he should do and how much he should pay. Show your calculations and include a description of the advantages of using various shipping terms.

On March 3rd, 4J Corporation issued 5,000 shares of its $2.00 par common stock for $15 per share. On July 1, the company bought back 1,500 shares of its own common stock for $17 per share.

The journal entry to record the buy back on July 1 would be a debit to_____ for_____ and a credit to_____ for_______.

On September 2nd, they resold 500 shares for $20 per share.

The journal entry to record the September 2nd resale would include a debit to____ for____ , a credit to____ for____ and a credit to_____ for______.

On September 15th, they resold 600 shares for $15. On October 14th, the board of directors declared a $1 dividend per share of outstanding stock for shareholders on record as of October 28th, which will be paid out on November 2nd.

The jorunal entry to record the October 14th declaration would be a debit to _____ for _______and a credit to _______for ______.

The journal entry to record the November 2nd payment of dividends would be a debit to ______ for _______ and a credit to _______ for ___________.

Finance: Debt

*Please do not use Excel. If you could show working that would be amazing and appreciated. Thank you very much

1. A bond with a face value of $10,000 that matures in exactly seven years has a price of $10,494.63. The coupon rate is 4.2% p.a. and coupons are paid every six months. Which of the following figures is the closest to the yield to maturity? ( I know the answer is C but I do not know how to work that out)

(a) 4.2% p.a.

(b) 5.40% p.a

(c) 3.40% p.a.

(d) 1.70% p.a.

2. On the 1st October 2016, K.J Limited issued bonds with a maturity date of 1st October 2028. One K.J bond has a face value of $100,000 and the coupon rate is 4.50% p.a. with interest payable half-yearly. Assuming the market yield is 6% p.a. calculate the value of one bond:

(a) on the 1st October 2020.

(b) five years before maturity.

(c) one year before maturity.

Janenda Inc. issued $5,000,000 of convertible

5-year bonds on July 1, 2017. The bonds provide for 6% interest payable semiamuially on January 1 and July 1. The discount in

connection with the issue was $120,000, which is being amortized monthly on a straight-line basis.

The bonds are convertible after one year into 15 shares of Janenda Inc.’s $1 par value common stock for each $1,000 of bonds.

On October 1, 2018, $600,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly

and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash.

Instructions

Instructions

Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following

dates. (Round to the nearest dollar.)

(a) October 1, 2018. (Assume the book value method is used.)

(b) October 31, 2018.

(c) December 31, 2018, including closing entries for end-of-year.

Why might some economists argue that plentiful commodities (natural resources & minerals) might be an economic drag overall? What is your view, as for example regarding Russian oil and other such examples? discus through the article....

Raw materials need not undermine the countries that export them

THE LAMP POSTS in Kliptown, South Africa, do not all stand up straight. One lists awkwardly, laden with cables carrying stolen electricity to a squatters' settlement nearby. Many families in this suburb of Soweto, a formerly black township in greater Johannesburg, are still crammed into makeshift housing. When it is hot outside, the temperature inside is "times two", says one resident, who shares six rooms with 20 others. And when it turns cold, the chill inside is also "times two".

On the other side of the railway tracks the government is investing heavily in Walter Sisulu Square, where in 1955 the African National Congress (ANC) and its allies adopted the Freedom Charter, a statement of principles for a post-apartheid nation. The charter's commitments, written in stone on a monument in the square, include demolishing slums and building well-lit suburbs. They also include transferring ownership of the mineral wealth beneath the soil to the people. The contrast between what the charter says and what the slum itself reveals tells you how broken the system is, says one squatter.

The resources beneath South Africa's soil, including iron ore, precious metals and coal, ought to be an unmitigated blessing. Johannesburg, the city of gold, owes its existence to these riches. Its landscape is still dotted with piles of sandy residue, or "tailings", from mining and quarrying. The industry accounts for over 20% of South Africa's exports and employs over 450,000 people. But it also adds to the volatility of South Africa's economy and the pugnacity of its politics.

Mining and quarrying shrank by 4.7% in 2016, then rebounded, growing by 4.3% year-on-year in the first half of 2017. This improvement partly reflects stronger growth in China, which consumes almost half of the world's coal, 30% of its gold jewellery and over 40% of its steel. But the industry's economic prospects remain hostage to its political fortunes.

Like any industry, mining must offer sufficiently rewarding pay and profits to attract the capital and labour it requires. Unlike other industries, however, mining tends to generate excess returns or "rents" on top of that. Bosses, workers and politicians are then tempted to squabble over the division of those rents, sometimes to the detriment of the sector as a whole. This kind of economic volatility and political bitterness are two of the more troublesome "tailings" from resource wealth, not only in South Africa but in many emerging markets. In 11 of the 24 countries in MSCI's benchmark equity index, resource rents exceeded 5% of GDP between 2011 and 2015. That qualified them as "resource-rich", according to the World Bank. The rents of all 24 members taken together also amounted to about 5% of their combined GDP.

Many of these resource-rich economies have gone through a twin-peaked or "M-shaped" cycle since the mid-2000s. Their commodities sector (as a proportion of GDP) peaked on the eve of the financial crisis in 2007, plunged, then rebounded between 2008 and 2011 and faltered again after 2014. The first drop reflected a collapse in demand following the global financial crisis. The second one was more complicated. A slowdown in Chinese commodity purchases played a part, especially in the case of coal and construction-related resources such as iron ore. But in the case of oil, a rise in supply (and projected supply) was more important. The boom in tight oil and shale production in America prompted OPEC, the oil exporters' cartel, to pump more crude to defend its market share. Cheap energy, in turn, cut the cost of agricultural production and dampened demand for biofuels, leading to lower prices for grains and soyabeans.

It is not easy to cope with a commodity cycle of this magnitude, driven by a boom in demand in the world's second-biggest economy, then a supply boom in the biggest. In the face of these global forces, emerging economies can resemble the squatter's house in Kliptown: their economies run twice as hot when commodity markets warm up, and twice as cold when the temperature drops. But although resource-rich economies cannot entirely escape the ups and downs of global commodity cycles, they can do a lot to moderate them. By containing the upturns, they can cushion the downturns. The key to this lies not in the mining industry itself, but in a country's central bank and finance ministry. Resource-rich economies need equally resourceful macroeconomic policies.

One of the best examples is Chile. Its fiscal rule curbs government spending when the copper price exceeds its long-term trend, as judged by an independent committee of experts. During good times, fiscal restraint makes room for mining to boom without unduly squeezing the rest of the economy. During bad times, it leaves scope for fiscal easing to offset the damage.

Chile's fiscal benchmarks were better calibrated than the rule Russia introduced in 2008 (and overhauled in 2013). Rather than allow an independent committee to estimate the long-term oil price, Russia used a backward-looking average. According to the IMF, that resulted in a benchmark oil price of $85 a barrel in 2016 when prices had already fallen to $42.

Russia was forced to abandon its fiscal rule in 2015. By then the country's central bank had also given up trying to defend the rouble, allowing it to fall in line with the price of crude. At the time Russia's devaluation was humiliating. But a cheaper exchange rate can be a godsend for an oil exporter when the price of crude drops. Russia's diminished currency kept the rouble value of oil revenues steady. And by boosting Russia's competitiveness, it helped to offset the damage that lower oil prices inflicted on the country's trade balance. Unemployment is now lower than it was in 2013, when oil prices were around $100 a barrel.

Having survived the M-shaped commodity cycle, resource-rich emerging markets can hope for an easier script in the years ahead. China's growth has stopped slowing and OPEC production has stopped rising. The cartel decided in November 2016 to cut production by over 3% to 32.5m barrels per day (a decision matched by restraint from 11 other oil producers, including Russia). America, meanwhile, has become an "unwitting swing producer" of oil, in the words of the Economist Intelligence Unit, a sister company of The Economist. When crude prices drop below $45 a barrel, shale producers withdraw, pushing the price back up. When prices rise above $56, America's nimble operators invest in new rigs, pushing the price back down. So another bout of commodity-price volatility should not scupper the emerging-market recovery.

The economic instability and political division sometimes associated with natural resources have caused some economists to think of them as a curse, not a blessing. In a seminal paper published in 1995, Jeffrey Sachs and Andrew Warner, two economists then both at Harvard, found that economies dependent on resource exports grew more slowly than others not so blessed.

But economic thinking on this issue is also prone to division and swings in sentiment. Several researchers have questioned whether the resource curse is real or just a statistical illusion. The seminal Sachs-Warner study, they say, may be marred by reverse causality: rather than resource dependence leading to slow growth, it could be the other way around. This is because the two authors calculate resource exports as a proportion of GDP, so anything that lowers GDP will mechanically increase resource dependence by their measure, creating the illusion of a causal link from resources to growth.

Economists may have missed the blessings of natural resources because they were looking in the wrong place. Oil, gold, copper and other endowments may add to the level of GDP but not its growth rate. Imagine, for example, a $100bn economy growing at 1% a year. Suppose it suddenly discovers a big platinum deposit, which yields a steady additional income of $100bn, year in, year out. That would double the country's GDP to about $200bn, much to the benefit of its people. But it would also halve the country's growth rate, because now half of this $200bn economy is growing at 1% and the other half not at all.

Graham Davis of the Colorado School of Mines calls this phenomenon "resource drag". In South Africa the mining and quarrying industry has been growing more slowly than the economy as a whole since 1980, dragging down South Africa's overall GDP growth by about 0.4 percentage points. But having both the resources and the drag is still better than having neither.

Patricio Meller of CIEPLAN, a Chilean think-tank, reckons that economists have been biased against natural resources ever since Adam Smith, who witnessed impressive advances in pin-making but comparative stasis in agriculture. Even in Smith's day that was a mistake, says Mr Meller. After all, Britain's industrial revolution owed a lot to coal-mining.

Mr Meller sees the natural resources in his country as a platform for technological innovation. Many of the lorries that serve Chile's mining industry, for example, are remotely controlled by people sitting in an office in Santiago, over 1,000km away. Indeed, the combination of technologies--big data, end-to-end sensors, analytics--now being applied to advanced manufacturing could also be applied to mining and agriculture.

The application of new technologies to commodities may alleviate whatever curses natural resources can bring. But their application to manufacturing industry is raising a different fear in labour-rich emerging markets. As industrial machines become more sophisticated, will they increasingly replace industrial workers? And if fewer jobs are on offer in metal-bashing and clothes-making, who will employ them?

Block quote: Economists have questioned whether the "resource curse" is real. Rather than resource dependence leading to slow growth, it could be the other way around

1.   Tony signed up and paid $1200 for a 6-month painting course on June 1 with Master Piece Painting (MPP). As of August 1, MPP's accounting records would indicate

    A. $400 of revenue, $800 of deferred revenue

   B. $1,200 of revenue, $1,200 of cash

   C. $400 of revenue, $800 of accounts receivable

   D. $800 of revenue, $400 of accounts receivable

2. On July 15, 2016, Ortiz & Co. signed a contract to provide EverFresh Bakery with an ingredient-weighing system for a price of $90,000. The system included finely tuned scales that fit into EverFresh's automated assembly line, Ortiz's proprietary software modified to allow the weighing system to function in EverFresh's automated system, and a one-year contract to calibrate the equipment and software on an as-needed basis. (Ortiz competes with other vendors who offer ongoing calibration contracts for Ortiz's systems.) If Ortiz was to provide these goods or services separately, it would charge $60,000 for the scales, $10,000 for the software, and $30,000 for the calibration contract. Ortiz delivered and installed the equipment and software on August 1, 2016, and the calibration service commenced on that date. Assume that the scales, software, and calibration service are all separate performance obligations. How much revenue will Ortiz recognize in 2016 for this contract?

   A. $74,250

   B. $90,000

C. $63,000

   D. $0

3.   On June 1, Lucy & Bros. received an order for 500 cupcakes. Lucy delivered the cupcakes to the client on June 25. A $50 deposit was received on June 5 and the remaining $450 was paid on June 30. Lucy likely would recognize revenue on

  A. June 1.

   B. June 30.

   C. June 5.

   D. June 25.

4.   In 2015, Solid Construction Co. (SCC) began work on a two-year fixed-price contract project. SCC uses the percentage-of-completion method to account for such projects and provides you with the following information (dollars in millions):

Accounts receivable (from construction progress billings)               $37.5

Actual construction costs incurred in 2015            $135

Cash collected on project during 2015     $105

Construction in progress, 12/31/15          $207

Estimated percentage of completion during 2015              60%

What's the amount of gross profit on the project recognized by SCC during 2015?

   A. $160 million

   B. $48 million

   C. The answer can't be determined from the given information.

   D. $72 million

5. On October 1, 2015, Justice Company purchased equipment from Naples Inc. in exchange for a noninterest-bearing note payable in five equal annual payments of $500,000, beginning October 1, 2016. Similar borrowings have carried an 11% interest rate. The equipment would be recorded at

A. $1,847,950.

   B. $2,225,000.

   C. $2,115,270.

   D. $2,500,000.

6.   Gimme Auto Loan Department wishes to know the payment required at the first of each month on a $10,500, 48-month, 11% auto loan. To determine this amount, Gimme would

     A. multiply $10,500 by the present value of an ordinary annuity of 1.

   B. divide $10,500 by the future value of an ordinary annuity of 1.

   C. multiply $10,500 by the present value of 1.

   D. divide $10,500 by the present value of an annuity due of 1.

Peanut Company acquired 75 percent of Snoopy Company's stock at underlying book value on January 1, 20X8. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Snoopy Company. Snoopy Company reported shares outstanding of $350,000 and retained earnings of $100,000. During 20X8, Snoopy Company reported net income of $60,000 and paid dividends of $3,000. In 20X9, Snoopy Company reported net income of $90,000 and paid dividends of $15,000. The following transactions occurred between Peanut Company and Snoopy Company in 20X8 and 20X9:

Snoopy Co. sold equipment to Peanut Co. for a $42,000 gain on December 31, 20X8. Snoopy Co. had originally purchased the equipment for $140,000 and it had a carrying value of $28,000 on December 31, 20X8. At the time of the purchase, Peanut Co. estimated that the equipment still had a seven-year remaining useful life.

Peanut sold land costing $90,000 to Snoopy Company on June 28, 20X9, for $110,000.

Required:

Give all consolidating entries needed to prepare a consolidation worksheet for 20X9 assuming that Peanut Co. uses the cost method to account for its investment in Snoopy Company.

Debt Restructuring

Sectron Co. has a note payable of $480,000 with a 10 percent interest rate due to Prime First Trust on january 1, 2005. Sectron Co. recently experienced financial hardship due to slow sales in the appliance industry. Sectron restructured the note with Prime First Trust, reducing the principal to $400,000, and interest rate to 8 percent, in addition to extending the maturity by three years.

1. Calculate the gain, or loss to Prime First Trust and Sectron CO., if any from restructuring the note. If Sectron does not gain from the restructuring, calculate the effective interest rate after the restructuring.

2. Prepare a schedule of interest and amortizaation for Prime First Trust and Sectron Co. after the restructuring.

3. Prepare the ournal entries Prime First Trust and Sectron Co. would make related to the restructuring for the following.

a. The restructuring agreement.

b. Interest payments for the first, second, and third year after the restructuring.

c. Repayment of principal.

4. Repeat #1-#3, assuming the interst rate was reduced to 6 percent after the restructuring.

**** Please show all work and calculations so I can follow along and learn***

Thanks!