The following transactions occurred for White Rock Ltd during year ended May 31, 2020.
As of the start of the year, June 1, 2019, White Rock had $3,500 of automotive
supplies on hand. During the year, it purchased $9,100 in automotive supplies. At
year end, $1,300 of automotive supplies were on hand.
On October 31, 2019, White Rock purchased $88,000 of automotive repair
equipment on account. The equipment has an 8-year useful life.
White Rock signed an agreement to rent warehouse space, starting on February 1,
2020. White Rock paid $8,250 to its new landlord on that date, for six months of
rent paid in advance.
White Rock sold equipment it doesn’t need to another business for $45,000 (e.g.
credit equipment) on March 1, 2020. The buyer paid $5,000 in cash and signed a
9%, 9-month promissory note for the remaining $40,000. The amount owed plus
accrued interest will be received from the buyer on November 30, 2020.
White Rock is open seven days a week. Employees are paid $4,900 in salaries
every two weeks. Employees were last paid on Friday, May 25 (up to and
including Friday of that week). Employees will next be paid on Friday, June 8.
For journal entries, write all your calculations instead of explanations. Record the
journal entries in proper form using the attached blank general journal sheets. Do
not abbreviate the names of the ledger accounts. Marks may be deducted for any
journal entries that do not show calculations.
REQUIRED
(a) Prepare the journal entries to record transactions on October 31, 2019, and
March 1, 2020.
(b) Prepare year-end adjusting journal entries that should be made on May 31,
2020.
(c) Show the presentation of the automotive repair equipment on the May 31,
2020 classified balance. sheet in proper form (e.g. don’t forget the
classification name).
(d) Prepare the journal entry to record payment of employee salaries on Friday,
June 8th
In: Accounting
Vaughn Corp. is a medium-sized corporation specializing in
quarrying stone for building construction. The company has long
dominated the market, at one time achieving a 70% market
penetration. During prosperous years, the company’s profits,
coupled with a conservative dividend policy, resulted in funds
available for outside investment. Over the years, Vaughn has had a
policy of investing idle cash in equity securities. In particular,
Vaughn has made periodic investments in the company’s principal
supplier, Norton Industries. Although the firm currently owns 12%
of the outstanding common stock of Norton Industries, Vaughn does
not have significant influence over the operations of Norton
Industries.
Cheryl Thomas has recently joined Vaughn as assistant controller,
and her first assignment is to prepare the 2020 year-end adjusting
entries for the accounts that are valued by the “fair value” rule
for financial reporting purposes. Thomas has gathered the following
information about Vaughn’ pertinent accounts.
| 1. | Vaughn has equity securities related to Delaney Motors and Patrick Electric. During 2020, Vaughn purchased 105,000 shares of Delaney Motors for $1,395,000; these shares currently have a fair value of $1,601,000. Vaughn’ investment in Patrick Electric has not been profitable; the company acquired 45,000 shares of Patrick in April 2020 at $21 per share, a purchase that currently has a value of $733,000. | |
| 2. |
Prior to 2020, Vaughn invested $22,345,000 in Norton Industries and has not changed its holdings this year. This investment in Norton Industries was valued at $21,478,000 on December 31, 2019. Vaughn’ 12% ownership of Norton Industries has a current fair value of $22,020,000 on December 2020. Prepare the appropriate adjusting entries for Vaughn as of December 31, 2020, to reflect the application of the “fair value” rule for the securities described above. Fair Value Adjustment.......... Unrealized Holding Gain or Loss - Income........ Prepare the entries for the Norton investment, assuming that Vaughn owns 25% of Norton’s shares. Norton reported income of $512,000 in 2020 and paid cash dividends of $108,000. Equity Investments......... Investment Income......... Cash........ Equity Investment.......... |
|
In: Accounting
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Accounting
Buffalo Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
|
BUFFALO INC. |
||||||
|---|---|---|---|---|---|---|
|
12/31/20 |
12/31/19 |
|||||
|
Cash |
$5,900 |
$7,000 |
||||
|
Accounts receivable |
61,500 |
51,300 |
||||
|
Short-term debt investments (available-for-sale) |
35,000 |
17,800 |
||||
|
Inventory |
40,400 |
60,200 |
||||
|
Prepaid rent |
5,000 |
4,000 |
||||
|
Equipment |
153,400 |
129,000 |
||||
|
Accumulated depreciation—equipment |
(35,100 |
) |
(25,100 |
) |
||
|
Copyrights |
46,300 |
49,600 |
||||
|
Total assets |
$312,400 |
$293,800 |
||||
|
Accounts payable |
$46,500 |
$40,200 |
||||
|
Income taxes payable |
4,100 |
6,000 |
||||
|
Salaries and wages payable |
8,100 |
4,000 |
||||
|
Short-term loans payable |
7,900 |
10,000 |
||||
|
Long-term loans payable |
60,200 |
68,700 |
||||
|
Common stock, $10 par |
100,000 |
100,000 |
||||
|
Contributed capital, common stock |
30,000 |
30,000 |
||||
|
Retained earnings |
55,600 |
34,900 |
||||
|
Total liabilities & stockholders’ equity |
$312,400 |
$293,800 |
||||
|
BUFFALO INC. |
||||
|---|---|---|---|---|
|
Sales revenue |
$338,750 |
|||
|
Cost of goods sold |
176,400 |
|||
|
Gross profit |
162,350 |
|||
|
Operating expenses |
119,600 |
|||
|
Operating income |
42,750 |
|||
|
Interest expense |
$11,500 |
|||
|
Gain on sale of equipment |
2,000 |
9,500 |
||
|
Income before tax |
33,250 |
|||
|
Income tax expense |
6,650 |
|||
|
Net income |
$26,600 |
|||
Additional information:
| 1. | Dividends in the amount of $5,900 were declared and paid during 2020. | |
| 2. | Depreciation expense and amortization expense are included in operating expenses. | |
| 3. | No unrealized gains or losses have occurred on the investments during the year. | |
| 4. | Equipment that had a cost of $19,900 and was 70% depreciated was sold during 2020. |
Prepare a statement of cash flows using the indirect method.
(Show amounts that decrease cash flow with either a -
sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
|
BUFFALO INC. |
|---|
In: Accounting
Suppose that you are part of the Management team at Porsche. Suppose that it is the end of December 2019 and a novel coronavirus that causes a respiratory illness was identified in Wuhan City, Hubei Province, China. The illness was reported to the World Health Organization and there is heightened uncertainty around the Globe. You (as part of the management team) are reviewing Porsche’s hedging strategy for the cash flows it expects to obtain from vehicle sales in North America during the calendar year 2020. Assume that Porsche’s management entertains three scenarios:
Scenario 1 (Expected): The expected volume of North American sales in 2020 is 35,000 vehicles.
Scenario 2 (Pandemic): The low-sales scenario is 50% lower than the expected sales volume.
Scenario 3 (High Growth): The high-sales scenario is 20% higher than the expected sales volume.
Assume, in each scenario, that the average sales price per vehicle is $85,000 and that all sales are realised at the end of December 2020. All variable costs incurred by producing an additional vehicle to be sold in North America in 2020 are billed in euros (€) and amount to €55,000 per vehicle. Shipping an additional vehicle to be sold in North America in 2020 are billed in € and amount to €3,000 per vehicle.
The current spot exchange rate is (bid-ask) $1.11/€ - $1.12/€ and forward bid-ask is $1.18/€ - $1.185/€. The option premium is €0.025, and option strike price is €0.922. Your finance team made the following forecasts about the exchange rates at the end of December 2020:
• bid-ask will be $1.45/€ - $1.465/€ if the investors (and speculators) consider the euro (€) a safe haven currency during the pandemic.
• bid-ask will be $0.88/€-$0.90/€ if the investors (and speculators) consider the U.S. dollar ($) a safe haven currency during the pandemic
5. Assume that the Scenario 2 (Pandemic) took place in 2020 and the U.S. dollar became a safe haven currency during the pandemic. What are your cash flows (profits) if you did not hedge, hedged using forward contracts, and hedged using option contracts?
6. Based on the calculations in Part B, do you believe that it is a good policy to hedge Porsche’s currency exposure? Why?
In: Finance
Morgan Company’s balance sheet at December 31, 2019, is presented below.
|
MORGAN COMPANY |
||||||
| Cash | $30,000 | Accounts Payable | $12,250 | |||
| Inventory | 30,500 | Interest Payable | 300 | |||
| Prepaid Insurance | 6,084 | Notes Payable | 60,000 | |||
| Equipment | 38,520 | Owner’s Capital | 32,554 | |||
| $105,104 | $105,104 | |||||
During January 2020, the following transactions occurred. (Morgan
Company uses the perpetual inventory system.)
| 1. | Morgan paid $300 interest on the note payable on January 1, 2020. The note is due December 31, 2021. | |
| 2. | Morgan purchased $240,000 of inventory on account. | |
| 3. | Morgan sold for $489,000 cash, inventory which cost $263,000. Morgan also collected $31,785 in sales taxes. | |
| 4. | Morgan paid $236,000 in accounts payable. | |
| 5. | Morgan paid $16,500 in sales taxes to the state. | |
| 6. | Paid other operating expenses of $20,500. | |
| 7. | On January 31, 2020, the payroll for the month consists of salaries and wages of $58,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $8,700 federal income taxes are withheld. The salaries and wages are paid on February 1. |
Adjustment data:
| 8. | Interest expense of $300 has been incurred on the notes payable. | |
| 9. | The insurance for the year 2020 was prepaid on December 31, 2019. | |
| 10. | The equipment was acquired on December 31, 2019, and will be depreciated on a straight-line basis over 5 years with a $3,060 salvage value. | |
| 11. |
Employer’s payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.8% federal unemployment tax. |
Can you please help me find these answers. Thank you!!
A)Prepare journal entries for the transactions listed above and the adjusting entries.
B)Prepare an adjusted trial balance at January 31, 2020.
C)Prepare an income statement.
D)Prepare an owner’s equity statement for the month ending January 31, 2020.
E)Prepare a classified balance sheet as of January 31, 2020
In: Accounting
Suppose that you are part of the Management team at Porsche. Suppose that it is the end of December 2019 and a novel coronavirus that causes a respiratory illness was identified in Wuhan City, Hubei Province, China. The illness was reported to the World Health Organization and there is heightened uncertainty around the Globe.
You (as part of the management team) are reviewing Porsche’s hedging strategy for the cash flows it expects to obtain from vehicle sales in North America during the calendar year 2020. Assume that Porsche’s management entertains three scenarios:
Scenario 1 (Expected): The expected volume of North American sales in 2020 is 35,000 vehicles.
Scenario 2 (Pandemic): The low-sales scenario is 50% lower than the expected sales volume.
Scenario 3 (High Growth): The high-sales scenario is 20% higher than the expected sales volume.
Assume, in each scenario, that the average sales price per vehicle is $85,000 and that all sales are realised at the end of December 2020. All variable costs incurred by producing an additional vehicle to be sold in North America in 2020 are billed in euros (€) and amount to €55,000 per vehicle. Shipping an additional vehicle to be sold in North America in 2020 are billed in € and amount to €3,000 per vehicle.
The current spot exchange rate is (bid-ask) $1.11/€ - $1.12/€ and forward bid-ask is $1.18/€ - $1.185/€. The option premium is 2.5% of US$ strike price, and option strike price is $1.085/€. Your finance team made the following forecasts about the exchange rates at the end of December 2020:
In: Finance
Question 3 (30 pts)
Kobani Corporation produces high quality Greek yogurts that pass through three departments – Fermentation Department (Department I), Mixing Department (Department II), and Packaging Department (Department III).
The production process in the Mixing Department requires the input of two main types of ingredients. One is the basic ingredients and the other one is the special ingredients. 100% of the basic ingredients are added at the beginning of the process. For the special ingredients, they are added gradually. 30% of these special ingredients are added at the beginning of the process, 50% are added midway through the process and the remainder of the special ingredients are added at the three-quarter way through the process.
The following information was available concerning the operation of the Mixing Department for the month of October 2020.
Beginning work-in process (WIP) (1 October 2020): 2,500 units were 40% completed with respect to conversion costs (CC). Costs pertaining to the beginning WIP as at 1 October 2020 were: Department I $10,000, Basic Ingredients $30,000, Special Ingredients $15,000 and CC $10,000.
Units started in the month were 15,000 units. Costs added to production during the month of October 2020 were: Department I $60,000, Basic Ingredients $188,750, Special Ingredients $203,400, and CC $154,500.
Ending WIP as at 31 October 2020 were 3,500 units and 70% completed with respect to CC.
Required:
A) Use of the weighted average (WA) process costing method, calculate
i. the units completed in October 2020.
ii. the equivalent units for the Special Ingredients.
iii. the total costs per equivalent unit.
iv. the total costs of completed products transferred to the Packaging Department.
B) Use the first-in-first-out (FIFO) process costing method, calculate
v. the units completed in October 2020.
vi. the equivalent units for the Special Ingredients.
vii. the total costs per equivalent unit.
viii) the total costs of completed products transferred to the Packaging Department.
C) Discuss the main differences of the FIFO method as compared to the weighted average method. In what situation will the results from the two methods produce similar result?
In: Accounting
CASE STUDY QUESTION
Miss Yinnary is one of the many women who own their own businesses and her experience is not very different from others, who must contend with being a mother, a spouse and a family cheerleader in addition to owning and operating a business. She is the owner of the famous Y-Hotel. It was her first business, though she had some family background in this business. Her two sisters were also in the same line of business. But she borrowed some money, put in some of her savings and started her own venture. She was the first woman ever to enter into this business, most of her clients could not understand that a woman could be interested in the hospitality industry. To Step up her game in the hospitality Industry , Miss Yinari is seeking someone who understands innovative entrepreneurship to assist her.
During her rise to success and in management of her hotel business, she also needs to manage a family, stay teaching in university and dealing with community affairs.
In her mind, there is nothing more exhilarating than owning her own business, and for her, the fun is in facing the challenges of turning the hotel into a first ever hotel that provide customers an unforgettable experience with innovation
In the present time, more women are making this choice, pursuing entrepreneurship rather than staying as housewives or traditional careers. For the past few years, the number of women starting new ventures is three times as large as the number of men. There are several good reasons for this trend. Some women find that owning a business is the only way to combine a decent income with time for their children by having the flexibility to control their schedules. Others see themselves as unlikely corporate managers and recognizing the gender problem that exists for achieving success, they choose the entrepreneurial route. Still others see entrepreneurship as a way of controlling their lives, pursuing interests that would be impossible in a corporate job.
The dual roles of mother and entrepreneur often conflict, and husbands and wives
tend to develop separate career tracks that often cannot be reconciled. Women can
also find it lonely in a business world, especially if clients are predominantly men,
this was a problem for Yinari too.
Many women, however, have businesses that fit well with their interest and with
women customers. These include services in beauty care, nutrition, education,
entertainment etc. Nevertheless, being in business often exacts a double price for
women, yet for those with determination like Yinari, the rewards are always waiting.
Your Task as Business Consultant , Prepare a report regarding the following issues below :
e. Provide SCAMPER for your Innovation
f. Draw a Maslow Triangle of Needs and Explain in each stage of those theories the function of your Innovation where possible.
NOTE : PLEASE DO IN THE PIECE OF PAPER / SCREEN SHOT AND TAKE PIC MORE CLEARLY AND PLEASE SEND IT HERE THANK YOU
In: Economics
CASE STUDY QUESTION
Miss Yinnary is one of the many women who own their own businesses and her experience is not very different from others, who must contend with being a mother, a spouse and a family cheerleader in addition to owning and operating a business. She is the owner of the famous Y-Hotel. It was her first business, though she had some family background in this business. Her two sisters were also in the same line of business. But she borrowed some money, put in some of her savings and started her own venture. She was the first woman ever to enter into this business, most of her clients could not understand that a woman could be interested in the hospitality industry. To Step up her game in the hospitality Industry , Miss Yinari is seeking someone who understands innovative entrepreneurship to assist her. During her rise to success and in management of her hotel business, she also needs to manage a family, stay teaching in university and dealing with community affairs.
In her mind, there is nothing more exhilarating than owning her own business, and for her, the fun is in facing the challenges of turning the hotel into a first ever hotel that provide customers an unforgettable experience with innovation
In the present time, more women are making this choice, pursuing entrepreneurship rather than staying as housewives or traditional careers. For the past few years, the number of women starting new ventures is three times as large as the number of men. There are several good reasons for this trend. Some women find that owning a business is the only way to combine a decent income with time for their children by having the flexibility to control their schedules. Others see themselves as unlikely corporate managers and recognizing the gender problem that exists for achieving success, they choose the entrepreneurial route. Still others see entrepreneurship as a way of controlling their lives, pursuing interests that would be impossible in a corporate job.
The dual roles of mother and entrepreneur often conflict, and husbands and wives
tend to develop separate career tracks that often cannot be reconciled. Women can
also find it lonely in a business world, especially if clients are predominantly men,
this was a problem for Yinari too.
Many women, however, have businesses that fit well with their interest and with
women customers. These include services in beauty care, nutrition, education,
entertainment etc. Nevertheless, being in business often exacts a double price for
women, yet for those with determination like Yinari, the rewards are always waiting.
Your Task as Business Consultant , Prepare a report regarding the following issues below :
H. If unrelated diversification is not possible, explain your thought in term of related diversification
I.What is the Tao of Innovation? Explain in detail the 9 elements of the Tao of Innovation. Give examples !
number h and i the question were based on study case article from above you need to explain more detail and provide the example
In: Economics