High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
| Beginning inventory | 0 | |
| Units produced | 42,000 | |
| Units sold | 37,000 | |
| Selling price per unit | $ | 80 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 3 |
| Fixed (per month) | $ | 561,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 16 |
| Direct labor cost per unit | $ | 9 |
| Variable manufacturing overhead cost per unit | $ | 3 |
| Fixed manufacturing overhead cost (per month) | $ | 798,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
In: Accounting
Catherine is a U.S. citizen who is employed by DSC, Inc., a global company. Beginning on August 1, 2018, Catherine began working in Augsburg, Germany. She worked for 153 days of 2018. She worked there until March 31, 2019, when she transferred to Kamnik, Slovenia. She worked in Kamnik for the remainder of 2019. Her salary for the first seven months of 2018 was $225,000, and it was earned in the United States. Her salary for the remainder of 2018 was $165,000, and it was earned in Augsburg. Catherine's 2019 salary from DSC was $425,000, with part being earned in Augsburg and part being earned in Kamnik.
Assume the 2019 indexed statutory amount is the same as the 2018 indexed amount. Assume a 365-day year.
When required, round any fractions out to four decimal places. Round final answers to the nearest dollar.
a. Is Catherine eligible for the foreign income exclusion for 2018? Yes
b. Catherine may exclude $ ? from her gross income for 2018.
c. Is Catherine eligible for the foreign income exclusion for 2019? Yes
d. Catherine may exclude $ 103,900 from her gross income for 2019.
In: Accounting
All I need is a general response, please!
Phase I:
1. "The combination of husband, wife, and children that 99.8 percent of people in the United States believe constitutes a family is not representative of 99.8 percent of U.S. families. According to 2010 census data, only 66 percent of children under seventeen years old live in a household with two married parents." Describe what your family unit currently looks like. (Mom, Dad, Brothers, Sisters?) Do you all live with one another? Do you plan on starting a family of your own one day? If yes - do you want your family to look like your family that you had growing up? If not - why not? (200 words)
2.
- Choose one variation of family life (see list): Single Parents, Cohabitation, Same-Sex Couples, or Staying Single. - which one of these do you think is shaping the way that we think about and navigate how we define 'family' the most? Why? Is there a theoretical perspective that supports your idea (see Theoretical Perspectives on Marriage and Family - (200 words)
In: Operations Management
Short Answer - MORAKE
Must Include Supporting Documentation in File Upload portion of
exam. Please label page as "Morake."
The following stockholders' equity section was taken from the books of Morake & Berg, Inc on January 1, 2020.
| Common Stock, $9 par value, 500,000 shares authorized, 300,000 shares issued and outstanding | 2,700,000 |
| Additional paid in capital in excess of par - Common | 1,200,000 |
| Additional paid in capital from Treasury Stock transactions | 0 |
| Additional paid in capital - retired stock | 0 |
| Retained earnings | 1,800,000 |
| Total Stockholders' Equity | 5,700,000 |
| The following transactions occurred in 2020: |
| a) On January 3, 2020, Morake & Berg issued 10,000 new shares of its $9 par value common stock for $20 per share. The company paid the underwriter $7,000 in issue costs. |
| b) On February 5, 2020, Morake & Berg repurchased 50,000 of its shares at a purchase price of $17 per share. |
| c) On April 1, 2020, Morake & Berg reissued 15,000 of its treasury shares at a price of $15 per share. |
| d) On August 1, 2020, Morake & Berg opted to retire 8,000 of the treasury shares. |
| e) On December 31, 2020, Morake & Berg declared a net profit for the year of $1,500,000. |
| f) On December 31, 2020, Morake & Berg declared dividends
of $400,000 to be paid on January 25, 2021. (Note, you are not required to calculate total number shares outstanding since total dollar amount of dividend is given.) |
REQUIRED:
Based on the information above, please answer the following
questions as of December 31, 2020. Your supporting documentation
should clearly show how you arrived at the answers you provide
below given (a) through (f) above. You may opt to show your work
using journal entries, T-accounts, or a clear calculation of what
is increasing/decreasing each account.
1. What is the 12/31/2020 balance of Additional Paid-in-Capital for
Common Stock?
2. What is the 12/31/2020 balance of Treasury Stock?
3. What is the 12/31/2020 balance of Retained Earnings?
In: Accounting
A comparative statement of financial position for Ayayai
Corporation follows:
| AYAYAI CORPORATION Statement of Financial Position |
||||||
| December 31 | ||||||
| Assets | 2020 | 2019 | ||||
| Cash | $48,100 | $21,460 | ||||
| Accounts receivable | 64,380 | 43,660 | ||||
| Inventory | 98,420 | 59,940 | ||||
| FV-OCI investments in shares | 46,620 | 62,160 | ||||
| Land | 48,100 | 76,220 | ||||
| Equipment | 288,600 | 318,200 | ||||
| Accumulated depreciation—equipment | (86,580 | ) | (63,640 | ) | ||
| Goodwill | 91,760 | 128,020 | ||||
| Total | $599,400 | $646,020 | ||||
| Liabilities and Shareholders’ Equity | ||||||
| Accounts payable | $8,880 | $37,740 | ||||
| Dividends payable | 11,100 | 23,680 | ||||
| Notes payable | 162,800 | 247,900 | ||||
| Common shares | 196,100 | 92,500 | ||||
| Retained earnings | 213,120 | 210,160 | ||||
| Accumulated other comprehensive income | 7,400 | 34,040 | ||||
| Total | $599,400 | $646,020 | ||||
Additional information:
| 1. | Net income for the fiscal year ending December 31, 2020, was $14,060. | |
| 2. | In March 2020, a plot of land was purchased for future construction of a plant site. In November 2020, a different plot of land with original cost of $63,640 was sold for proceeds of $70,300. | |
| 3. | In April 2020, notes payable amounting to $103,600 were retired through the issuance of common shares. In December 2020, notes payable amounting to $18,500 were issued for cash. | |
| 4. | FV-OCI investments were purchased in July 2020 for a cost of $11,100. By December 31, 2020, the fair value of Ayayai’s portfolio of FV—OCI investments decreased to $46,620. No FV—OCI investments were sold in the year. | |
| 5. | On December 31, 2020, equipment with an original cost of $29,600 and accumulated depreciation to date of $8,880 was sold for proceeds of $15,540. No equipment was purchased in the year. | |
| 6. | Dividends on common shares of $23,680 and $11,100 were declared in December 2019 and December 2020, respectively. The 2019 dividend was paid in January 2020 and the 2020 dividend was paid in January 2021. Dividends paid are treated as financing activities. | |
| 7. | A loss on impairment was recorded in the year to reflect a decrease in the recoverable amount of goodwill. No goodwill was purchased or sold in the year. |
(a)
Prepare a statement of cash flows using the indirect method for
cash flows from operating activities. (Show amounts
that decrease cash flow with either a - sign e.g. -15,000 or in
parenthesis e.g. (15,000).)
In: Accounting
P5.11 A comparative statement of financial position for Spencer Corporation follows:
Spencer Corporation
Statement of Financial Position
December 31
Assets
2020
2019
Cash
$ 65,000
$ 29,000
Accounts receivable
87,000
59,000
Inventory
133,000
81,000
FV-OCI investments in shares
63,000
84,000
Land
65,000
103,000
Equipment
390,000
430,000
Accumulated depreciation—equipment
(117,000)
(86,000)
Goodwill
124,000
173,000
Total
$810,000
$873,000
Liabilities and Shareholders' Equity
Accounts payable
$ 12,000
$ 51,000
Dividends payable
15,000
32,000
Notes payable
220,000
335,000
Common shares
265,000
125,000
Retained earnings
288,000
284,000
Accumulated other comprehensive income
10,000
46,000
Total
$810,000
$873,000
Additional information:
1. Net income for the fiscal year ending December 31, 2020, was
$19,000.
2. In March 2020, a plot of land was purchased for future
construction of a plant site. In November 2020, a different plot of
land with original cost of $86,000 was sold for proceeds of
$95,000.
3. In April 2020, notes payable amounting to $140,000 were retired
through the issuance of common shares. In December 2020, notes
payable amounting to $25,000 were issued for cash.
4. FV-OCI investments were purchased in July 2020 for a cost of
$15,000. By December 31, 2020, the fair value of Spencer's
portfolio of FV-OCI investments decreased to $63,000. No FV-OCI
investments were sold in the year.
5. On December 31, 2020, equipment with an original cost of $40,000
and accumulated depreciation to date of $12,000 was sold for
proceeds of $21,000. No equipment was purchased in the year.
6. Dividends on common shares of $32,000 and $15,000 were declared
in December 2019 and December 2020, respectively. The 2019 dividend
was paid in January 2020 and the 2020 dividend was paid in January
2021. Dividends paid are treated as financing activities.
7. A loss on impairment was recorded in the year to reflect a
decrease in the recoverable amount of goodwill. No goodwill was
purchased or sold in the year.
Instructions
a. Prepare a statement of cash flows using the indirect method for
cash flows from operating activities along with any necessary note
disclosure.
b. From the perspective of a shareholder, comment in general on the results reported in the statement of cash flows.
In: Accounting
A comparative statement of financial position for Whispering
Winds Corporation follows:
|
WHISPERING WINDS CORPORATION Statement of Financial Position |
||||||
| December 31 | ||||||
| Assets | 2020 | 2019 | ||||
| Cash | $74,100 | $33,060 | ||||
| Accounts receivable | 99,180 | 67,260 | ||||
| Inventory | 151,620 | 92,340 | ||||
| FV-OCI investments in shares | 71,820 | 95,760 | ||||
| Land | 74,100 | 117,420 | ||||
| Equipment | 444,600 | 490,200 | ||||
| Accumulated depreciation—equipment | (133,380 | ) | (98,040 | ) | ||
| Goodwill | 141,360 | 197,220 | ||||
| Total | $923,400 | $995,220 | ||||
| Liabilities and Shareholders’ Equity | ||||||
| Accounts payable | $13,680 | $58,140 | ||||
| Dividends payable | 17,100 | 36,480 | ||||
| Notes payable | 250,800 | 381,900 | ||||
| Common shares | 302,100 | 142,500 | ||||
| Retained earnings | 328,320 | 323,760 | ||||
| Accumulated other comprehensive income | 11,400 | 52,440 | ||||
| Total | $923,400 | $995,220 | ||||
Additional information:
| 1. | Net income for the fiscal year ending December 31, 2020, was $21,660. | |
| 2. | In March 2020, a plot of land was purchased for future construction of a plant site. In November 2020, a different plot of land with original cost of $98,040 was sold for proceeds of $108,300. | |
| 3. | In April 2020, notes payable amounting to $159,600 were retired through the issuance of common shares. In December 2020, notes payable amounting to $28,500 were issued for cash. | |
| 4. | FV-OCI investments were purchased in July 2020 for a cost of $17,100. By December 31, 2020, the fair value of Whispering Winds’s portfolio of FV—OCI investments decreased to $71,820. No FV—OCI investments were sold in the year. | |
| 5. | On December 31, 2020, equipment with an original cost of $45,600 and accumulated depreciation to date of $13,680 was sold for proceeds of $23,940. No equipment was purchased in the year. | |
| 6. | Dividends on common shares of $36,480 and $17,100 were declared in December 2019 and December 2020, respectively. The 2019 dividend was paid in January 2020 and the 2020 dividend was paid in January 2021. Dividends paid are treated as financing activities. | |
| 7. | A loss on impairment was recorded in the year to reflect a decrease in the recoverable amount of goodwill. No goodwill was purchased or sold in the year. |
(a)
Prepare a statement of cash flows using the indirect method for
cash flows from operating activities. (Show amounts
that decrease cash flow with either a - sign e.g. -15,000 or in
parenthesis e.g. (15,000).)
In: Accounting
Martinez Inc. has sponsored a noncontributory, defined benefit pension plan for its employees since 1997. Prior to 2020, cumulative net pension expense recognized equaled cumulative contributions to the plan. Other relevant information about the pension plan on January 1, 2020, is as follows.
| 1. | The company has 200 employees. All these employees are expected to receive benefits under the plan. The average remaining service life per employee is 12 years. | |
| 2. | The projected benefit obligation amounted to $4,948,000 and the fair value of pension plan assets was $2,965,000. The market-related asset value was also $2,965,000. Unrecognized prior service cost was $1,983,000. |
On December 31, 2020, the projected benefit obligation and the
accumulated benefit obligation were $4,772,000 and $4,033,000,
respectively. The fair value of the pension plan assets amounted to
$4,129,000 at the end of the year. A 10% settlement rate and a 10%
expected asset return rate were used in the actuarial present value
computations in the pension plan. The present value of benefits
attributed by the pension benefit formula to employee service in
2020 amounted to $199,000. The employer’s contribution to the plan
assets amounted to $759,000 in 2020. This problem assumes no
payment of pension benefits.
Part 1
Prepare a schedule, based on the average remaining life per employee, showing the prior service cost that would be amortized as a component of pension expense for 2020, 2021, and 2022. (Round answers to 0 decimal places, e.g. 2,525.)
| Prior Service Cost Amortization | ||
| 2020 |
$ |
|
| 2021 |
$ |
|
| 2022 |
$ |
|
Compute pension expense for the year 2020. (Round
answers to 0 decimal places, e.g. 2,525.)
| Pension expense |
$ |
Compute the amount of the 2020 increase/decrease in net gains or
losses and the amount to be amortized in 2020 and 2021.
(Round answers to 0 decimal places, e.g.
2,525.)
| Net gain 12/31/20 |
$ |
|
| Amortization in 2020 |
$ |
|
| Amortization in 2021 |
$ |
Prepare the journal entries required to report the accounting for the company’s pension plan for 2020. (Round answers to 0 decimal places, e.g. 2,525. 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 |
In: Accounting
Harvey Smidlap is an insurance agent. To facilitate writing an insurance policy for Wilhelmina Jones, Harvey agrees to give Wilhelmina a portion of the commission he receives on the sale this policy to Wilhelmina. Which one of the following statements about Harvey’s action is true?
Select one:
a. It is illegal in almost all states.
b. It is required in almost all states.
c. It is legal in most states.
d. It is proper in all states
In: Operations Management
Which statement best describes the difference between the charge of a polyatomic ion and the oxidation states of its constituent atoms? (For example, the charge of NO−3 is 1-, and the oxidation states of its atoms are +5 for the nitrogen atom and -2 for each oxygen atom.) Which statement best describes the difference between the charge of a polyatomic ion and the oxidation states of its constituent atoms? (For example, the charge of is 1-, and the oxidation states of its atoms are +5 for the nitrogen atom and -2 for each oxygen atom.)
a.The charge of a polyatomic ion is not a real physical property, while the oxidation states of atoms are actual physical properties.
b.The oxidation state of the ion is the same as its charge.
c.The charge of a polyatomic ion is a property of the entire ion, while the oxidation states are assigned to each individual atom.
In: Chemistry