Questions
What was the failure of Mary Barra and how Mary Barra dealed with it? (GM'S CEO)...

What was the failure of Mary Barra and how Mary Barra dealed with it? (GM'S CEO) Thank you.

In: Operations Management

What was the success of Mary Barra and how Mary Barra dealed with it? (GM'S CEO)...

What was the success of Mary Barra and how Mary Barra dealed with it? (GM'S CEO) Thank you.

In: Operations Management

What are some of the actions taken by Ken Lay as the CEO of Enron and...

What are some of the actions taken by Ken Lay as the CEO of Enron and what were the ethical issues?

In: Economics

In Nike’s sweatshop case what’s the first thing a CEO of nike should do as a...

In Nike’s sweatshop case what’s the first thing a CEO of nike should do as a business leader?

In: Operations Management

Multiple regression is used by accountants in cost analysis to shed light on the factors that...

Multiple regression is used by accountants in cost analysis to shed light on the factors that cause costs to be incurred and the magnitudes of their effects.

A petroleum company wanted to evaluate different blends of its gasoline - made by inserting different additives into the manufacturing process. To test this the firm acquired thirty identical cars (make and model) from an auto company and randomly assigned the cars to one of the three blends. The cars were then driven for 30 eight hour days on a dynamometer simulating city and highway driving conditions and the mileage obtained (MPG) was measured at the conclusion of the study. The results are below and require analysis to obtain a decision as to whether one of the blends or more was superior to the others.

Gasoline Blends

Blend A Blend B Blend C
28.6 25.6 29.6
27.6 26.6 28.6
31 31 32.5
29.2 29.4 29.8
30.2 29.5 29.6
28.9 30 29.4
29.1 29.6 32
30.2 27.5 31.2
28.6 31.1 31.9
28.4 29.1 28.2

In: Statistics and Probability

ABC has spend 1.8 million in developing a new software for its payment system for the...

ABC has spend 1.8 million in developing a new software for its payment system for the period of 1 Jan 2015-31 Dec 2016. The company is able to demonstrate that from 1 July 2016 the production process met the criteria for recognition as an intangible asset. The financial year end is 31 Dec. During 2016, the total training cost to improve the employees skill were 300,000£. A focus group of other retail banking providers was invied to a conference of the introduction of the new software in 2016. Cost of the conference was 100,000£. In 2016, ABC acquired another rival company XYZ for a total sum of 200 million. At this date a brand valuation expert valued XYZ brand at 40 million on the basis of useful life of 20 years. Other net assets were deemed to have a fairu value of 125£ million. Explain, how the costs given above should be treated in the financial statement of ABC for the year ending 31 Dec 2016 in relation to intangible assets per IAS38.

In: Accounting

What is the best way to measure the incident of hospital acquired infections? If the goal...

What is the best way to measure the incident of hospital acquired infections? If the goal is to reduce the incidence of hospital acquired infection? What is a reliable tool that can be used to measure this quality indicator?

In: Statistics and Probability

Exercise 21-11 The following facts pertain to a non-cancelable lease agreement between Teal Mountain Leasing Company...

Exercise 21-11

The following facts pertain to a non-cancelable lease agreement between Teal Mountain Leasing Company and Sandhill Company, a lessee.
Commencement date May 1, 2020
Annual lease payment due at the beginning of
   each year, beginning with May 1, 2020 $17,225.30
Bargain purchase option price at end of lease term $4,000
Lease term 5 years
Economic life of leased equipment 10 years
Lessor’s cost $55,000
Fair value of asset at May 1, 2020 $77,000
Lessor’s implicit rate 8 %
Lessee’s incremental borrowing rate 8 %

The collectibility of the lease payments by Teal Mountain is probable.

Click here to view factor tables.
Compute the amount of the lease receivable at commencement of the lease. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answer to 2 decimal places, e.g. 5,275.15.)
Lease receivable at commencement $
Prepare a lease amortization schedule for Teal Mountain for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.)

TEAL MOUNTAIN LEASING COMPANY (Lessor)
Lease Amortization Schedule

Date

Annual Lease Payment Plus
BPO

Interest on Lease
Receivable

Recovery of Lease
Receivable

Lease Receivable

5/1/20 $ $ $ $
5/1/20
5/1/21
5/1/22
5/1/23
5/1/24
4/30/25
$ $ $
Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2020 and 2021. The lessor’s accounting period ends on December 31. Reversing entries are not used by Teal Mountain. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

(To record the lease)

(To record lease payment)

Suppose the collectibility of the lease payments was not probable for Teal Mountain. Prepare all necessary journal entries for the company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15.)

Date

Account Titles and Explanation

Debit

In: Accounting

On January 1, 2020, Ayayai Co. borrowed and received $465,000from a major customer evidenced by...

On January 1, 2020, Ayayai Co. borrowed and received $465,000 from a major customer evidenced by a zero-interest-bearing note due in 5 years. As consideration for the zero-interest-bearing feature, Ayayai agrees to supply the customer’s inventory needs for the loan period at lower than the market price. The appropriate rate at which to impute interest is 10%.

(a)
Prepare the journal entry to record the initial transaction on January 1, 2020.
(b)
Prepare the journal entry to record any adjusting entries needed at December 31, 2020. Assume that the sales of Ayayai’s product to this customer occur evenly over the 5-year period.


(Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

(a)Jan. 1, 2020Dec. 31, 2020

















(b)

Jan. 1, 2020Dec. 31, 2020











(To record Interest Expense)




Jan. 1, 2020Dec. 31, 2020











(To record Unearned Sales Revenue)

In: Accounting

The following trial balance was extracted from the books of Big Bamboo Limited on December 31,...

The following trial balance was extracted from the books of Big Bamboo Limited on December 31, 2020               

                                           Big Bamboo Ltd

Trial Balance as at January 1, 2020

Motor vehicle at cost

10,600

Provision for depreciation on Motor Vehicle

2,120

Building at cost

90,000

Provision for depreciation on Buildings

1,800

Stock at January 1, 2020

53,000

Carriage inwards

500

Debtors

50,130

Returns Inwards

6,000

Returns Outwards

5,560

Bad debt provision

1,100

Cash

3,200

Creditors

30,350

Bank overdraft

15,500

Sales

600,000

Purchases

440,000

Wages

93,200

Insurance

54,100

Discount received

8,300

Drawings

14,000

Capital

150,000

814,730

814,730

Additional Information:

1.      Stock at December 31, 2020 $80,000

2.      Payment of $10,100 for insurance relates to the first quarter of 2021.

3.      Wages owing $4,800

4.      Provision for bad debt is to be increased to $1,500

5.      Depreciation on fixed assets:

-          Motor vehicles 10% on cost

-          Buildings 15 % on the reducing balance method

Required:

Prepare for Big Bamboo Limited:

(a)    An income statement for the year ended December 31, 2020

(b)   A statement of financial position as at December 31, 2020

In: Accounting