Blanton Plastics, a household plastic product manufacturer, borrowed $14 million cash on October 1, 2018, to provide working capital for year-end production. Blanton issued a four-month, 12% promissory note to L&T Bank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm’s fiscal period is the calendar year. Required: 1. Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank’s receivable on October 1, 2018. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2019. 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 12% is the bank’s stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2018, the adjusting entry at December 31, and payment of the note at maturity. (b) What would be the effective interest rate?

Blanton Plastics, a household plastic product manufacturer, borrowed $28 million cash on October 1, 2018, to provide working capital for year-end production. Blanton issued a four-month, 12% promissory note to L&T Bank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm’s fiscal period is the calendar year.

Required:
1. Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank’s receivable on October 1, 2018.
2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2019.
3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 12% is the bank’s stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2018, the adjusting entry at December 31, and payment of the note at maturity. (b) What would be the effective interest rate?

The Village of Green Bay received a gift of $3,000,000 from a local resident on April 1, 2017 and signed an agreement that the funds would be invested permanently and that the income would be used to maintain the city cemetery. The following transactions took place during the year ended December 31, 2017.

A.The gift was recorded on April 1.

B.On April 1, 2017, XYZ Company bonds were purchased in the amount of $3,000,000, at par. The bonds carry an annual interest rate of 5 percent, payable semiannually on October 1 and April 1.

C.On October 1, the semiannual interest was received.

D.From October 1 through December 1, payments were made totaling $20,800 to a lawn service.

E.On December 31, an accrual was made for interest.

F.Also, on December 31, a reading of the financial press indicated that XYZ bonds had a fair value of $3,003,500, exclusive of accrued interest.

G. The books were closed.

Required:

Record the transactions on the books of the Cemetery Perpetual Care Fund using the template provided in this module.

General Fabricators assembles its product in two departments. It has two departments that process all units: Cutting and Finishing. During October, Cutting department allocated a total cost of $75,000 to units that were finished in the cutting process and transferred to the finishing process.

In October, beginning work in process in the finishing department was 75% complete as to conversion. Direct materials are added at the end of the finishing process. Conversion costs are added evenly in the finishing process. Beginning inventories in finishing department included $9,000 for transferred-in costs and $20,000 for conversion costs. Ending inventory in finishing department was 30% complete. Additional information about the departments in October follows:

Required:

1. Determine a) the amount of ending WIP, b) the amount of transferred- out cost (credit amount), usingWeighted Averagefor the finishing department.

Given:

The sales performance of the Luggage Department in a Sporting Goods Store last Fall was:

August                        $80,000,

September                   $90,000,

October                       $100,000,

November                   $140,000,

December                    $160,000, and

January                        $120,000

Total Seasonal Sales    $690,000

As the six-month merchandising plan for this department was being formulated for this fall season, the following decisions were made:

1. An 8% sales increase could be attained this year due to the introduction and addition of a new classification of carry-on travel luggage that is well priced and of exceptional value.

2. The planned BOM stock-to-sales ratio for each month this year would be the same as last year, i.e.

August               3.3,

September          3.1,

October              2.9,

November          2.5,

December           2.2,

January               2.6    with an ending retail inventory for the period of $288,000.

3. The planned total reductions (markdowns) for last year were 11.6% and were distributed with 7% for August, 9% in September, 18% in October, 12% in November, 26% in December and 28% in January.

Compute:

1. The planned monthly retail receipts (purchases) for each month.
2. The planned average stock and the planned stock turnover.

FC.71 Five-star sells school related products. Their top seller, the five subject spiral notebook, has done very well. The notebook's sales during the back-to-school season (July through October) over the last three years are shown below:

For the five-subject notebook, Five-star's projected sales for the 2020 back-to-school season of are 375,000. Based on the past sales and this year's projected sales, answer the following questions.

Given the above information and using the most appropriate forecasting method, what should be the forecast for July 2020 sales? (Display your answer to the nearest whole number.)

   

What is the forecast for August 2020 sales? (Display your answer to the nearest whole number.)

   

What is the forecast for September 2020 sales? (Display your answer to the nearest whole number.)

   

What is the forecast for October 2020 sales? (Display your answer to the nearest whole number.)

A partial list of Waterways’ accounts and their balances for the month of November follows.

Accounts Receivable       $274,500
Advertising Expenses       54,200
Cash       261,000
Depreciation—Factory Equipment       16,800
Depreciation—Office Equipment       2,500
Direct Labor       41,900
Factory Supplies Used       16,700
Factory Utilities       10,300
Finished Goods Inventory, November 30       68,800
Finished Goods Inventory, October 31       73,100
Indirect Labor       48,100
Office Supplies Expense       1,600
Other Administrative Expenses       71,500
Prepaid Expenses       41,400
Raw Materials Inventory, November 30       52,300
Raw Materials Inventory, October 31       37,600
Raw Materials Purchases       184,100
Rent—Factory Equipment       46,800
Repairs—Factory Equipment       4,600
Salaries       323,000
Sales Revenue
1,354,600
Sales Commissions       40,500
Work In Process Inventory October 31       52,600
Work In Process Inventory, November 30       42,200

  
Collapse question part
(b1)
A list of accounts and their values are given above. From this information, prepare a cost of goods manufactured schedule.

WATERWAYS CORPORATION
Cost of Goods Manufactured Schedule

At the end of the current year, Bamboo Co. included $1,420,000 of recent purchases still in transit shipped F.O.B. Destination in their ending inventory. How will including this value affect Bamboo Co.'s financial statements?

1. The semi-annual bond for Williams Co. matures in 13 years, has a yield to maturity of 5.4%, and is trading at 96.815% of par. (To get the Price of the bond, take the 96.815% and multiply it by its par value of $1000. Use $1,000 as the future value)
   1. What is the coupon rate for the Williams Co. bond? Give your answer as a coupon percent.