eriodic Inventory by Three Methods
The units of an item available for sale during the year were as follows:
| Jan. 1 | Inventory | 13 units at $41 |
| Feb. 17 | Purchase | 5 units at $43 |
| Jul. 21 | Purchase | 17 units at $46 |
| Nov. 23 | Purchase |
20 units at $47 |
There are 5 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to one decimal and final answers to the nearest whole dollar, if required.
a. Determine the inventory cost by the
first-in, first-out method.
$
b. Determine the inventory cost by the last-in,
first-out method.
$
c. Determine the inventory cost by the weighted
average cost method.
$
In: Accounting
27) The Town of Greenfield issued the following during the year: (1) $600,000 in bonds for the installation of street lights, to be assessed against properties benefited, but secondarily backed by the town; (2) $800,000 in bonds for construction of a public golf course to be self-supported from fees collected from golf course users. How much should be accounted for through debt service funds for payments of principal over the life of the bonds?
A. $0.
B. $600,000.
C. $800,000.
D. $1,400,000.
28) On March 2, 2020, 20-year, 6 percent, general obligation serial bonds were issued at the face amount of $3,000,000. Interest of 6 percent per annum is due semiannually on March 1 and September 1. The first payment of $150,000 for redemption of principal is due on March 1, 2017. Fiscal year-end occurs on December 31. What is the interest expenditure reported in the debt service fund for the fiscal year ending December 31, 2020?
A. $90,000.
B. $135,000.
C. $150,000.
D. $180,000
29) Which of the following may properly be reported as a component of net position in the proprietary fund statement of net position?
|
A. |
Retained earnings. |
|
B. |
Designated equity. |
|
C. |
Restricted net position. |
|
D. |
Contributed capital. |
30) Internal service funds should be used only if:
A. The reporting government funds the activity with general obligation debt.
B. The reporting government provides services primarily to external participants.
C. The reporting government provides services primarily to other departments of the same
government.
D. The reporting government provides services below full cost.
31) The comprehensive annual financial report (CAFR) of a government should contain a statement of revenues, expenses, and changes in fund net position for:
A. Both proprietary and governmental funds.
B. Proprietary but not governmental funds.
C. Governmental but not proprietary funds.
D. Proprietary and fiduciary funds.
32) Under GASB standards, an internal service fund should prepare all of the following financial statements except a:
|
A. |
Statement of revenues, expenditures, and changes in fund balance. |
|
B. |
Statement of revenues, expenses, and changes in net position. |
|
C. |
Statement of net position. |
|
D. |
Statement of cash flows. |
In: Accounting
Personal Budget
At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:
| Cash balance, September 1 (from a summer job) | $6,480 |
| Purchase season football tickets in September | 90 |
| Additional entertainment for each month | 220 |
| Pay fall semester tuition in September | 3,500 |
| Pay rent at the beginning of each month | 310 |
| Pay for food each month | 180 |
| Pay apartment deposit on September 2 (to be returned December 15) | 400 |
| Part-time job earnings each month (net of taxes) | 800 |
a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign.
| KATHERINE MALLOY | ||||
| Cash Budget | ||||
| For the Four Months Ending December 31 | ||||
| September | October | November | December | |
| Estimated cash receipts from: | ||||
| Part-time job | $ | $ | $ | $ |
| Deposit | ||||
| Total cash receipts | $ | $ | $ | $ |
| Estimated cash payments for: | ||||
| Season football tickets | $ | |||
| Additional entertainment | $ | $ | $ | |
| Tuition | ||||
| Rent | ||||
| Food | ||||
| Deposit | ||||
| Total cash payments | $ | $ | $ | $ |
| Overall cash increase (decrease) | $ | $ | $ | $ |
| Cash balance at beginning of month | ||||
| Cash balance at end of month | $ | $ | $ | $ |
b. Are the four monthly budgets that are
presented prepared as static budgets or flexible budgets?
c. Malloy can see that her present plan sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $ at the end of December, with no time left to adjust.
In: Accounting
Public officials for the city of San Francisco, California, have questioned the accuracy of the year 2000 national census. An SRS of 1000 city residents was used to check the percentage of different ethnic groups living in San Francisco. The pertinent data are given in the table below.
Ethnic Origin Census Percent Observed frequency from sample
Asian 30% 290
Black 10% 65
Latino 35% 400
Native American 5% 30
Anglo 15% 160
Other 5% 55
Use the significance level of 0.05 to test the accuracy of the year 2000 census regarding the different ethnic groups.
In: Statistics and Probability
For tax year 2018 all of the following are true regarding the Claim of Right deduction under California tax law except: Group of answer choices
Deductions of $3,000 or less are not allowed because they are subject to the 2% Federal adjusted gross income (AGI) limit
If the amount repaid was not taxed by California, then no credit is allowed
If the taxpayer is eligible to take the credit for California, he or she adds the credit amount on line 76, the total payment line, of the Form 540
If the taxpayer claimed a credit for the repayment on his or her Federal tax return and is deducting the repayment for California, enter the allowable deduction as a positive amount on Schedule CA (540), line 21
In: Accounting
The following table shows the accounts from The Mockers Ltd for the year ended 31 March 2017.
Required:
Other information is: The repayment terms for the mortgage: payments of $1,000 are due on the 1 December each year. The profit for the year was $11,000 after tax.
|
Account |
$ |
|
Accounts payable |
5,750 |
|
Accounts receivable |
8,250 |
|
Accumulated depreciation |
11,250 |
|
Cash |
2,250 |
|
Selling and Administration expense |
18,500 |
|
Depreciation expense |
3,000 |
|
Dividends paid |
5,500 |
|
Equipment |
15,250 |
|
Income tax expense |
3,000 |
|
Interest expense |
1,000 |
|
Inventory |
7,750 |
|
Land |
6,750 |
|
Mortgage |
10,000 |
|
Retained earnings 01/04/16 |
7,750 |
|
Sales revenue |
35,000 |
|
Service revenue |
5,000 |
|
Share capital |
1,500 |
|
Supplies on hand |
1,500 |
|
Supplies expense |
3,500 |
In: Accounting
Dalton Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dalton Manufacturing's operations:
Current Assets as of December 31 (prior year):
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$4,460
Accounts receivable, net. . . . . . . . . . . . .
$46,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . .
$15,300
Property, plant, and equipment, net. . . . . . . . . . .
$123,000
Accounts payable. . . . . . . . . . . . . . . . . . . . . . .
$43,000
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$123,500
Retained earnings. . . . . . . . . . . . . . . . . . . . . . .
$23,200
|
a. |
Actual sales in December were $76,000. Selling price per unit
is projected to remain stable at $9 per unit throughout the budget
period. Sales for the first five months of the upcoming year are
budgeted to be as follows:
|
||||||||||
|
b. |
Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. | ||||||||||
|
c. |
Dalton Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units). |
||||||||||
|
d. |
Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase.Two pounds of direct material is needed per unit at $1.50 per pound. Ending inventory of direct materials should be 20% of next month's production needs. | ||||||||||
|
e. |
Most of the labor at the manufacturing facility is indirect,
but there is some direct labor incurred. The direct labor hours per
unit is 0.03. The direct labor rate per hour is $13 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows:
|
||||||||||
|
f. |
Monthly manufacturing overhead costs are $6,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.40 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. | ||||||||||
|
g. |
Computer equipment for the administrative offices will be
purchased in the upcoming quarter. In January, Dalton
Manufacturing will purchase equipment for $5,800 (cash), while February's cash expenditure will be $11,600 and March's cash expenditure will be $15,800. |
||||||||||
|
h. |
Operating expenses are budgeted to be $1.20 per unit sold plus fixed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures. | ||||||||||
|
i. |
Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,600 for the entire quarter, which includes depreciation on new acquisitions. | ||||||||||
|
j. |
Dalton Manufacturing has a policy that the ending cash balance in each month must be at least $4,400. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $160,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter. |
||||||||||
|
k. |
The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800cash at the end of February in estimated taxes. |
Requirements:
|
1. |
Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. |
|
2. |
Prepare a production budget. (Hint: Unit sales = Sales in dollars / Selling price per unit.) |
|
3. |
Prepare a direct materials budget. |
|
4. |
Prepare a cash payments budget for the direct material purchases from Requirement 3. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) |
|
5. |
Prepare a cash payments budget for direct labor. |
|
6. |
Prepare a cash payments budget for manufacturing overhead costs. |
|
7. |
Prepare a cash payments budget for operating expenses. |
|
8. |
Prepare a combined cash budget. |
|
9. |
Calculate the budgeted manufacturing cost per unit (assume
that fixed manufacturing overhead is budgeted to be
$0.90 per unit for the year). |
|
10. |
Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold = Budgeted cost of manufacturing one unit x Number of units sold.) |
In: Accounting
Find the present value of $100 due in one year if the discount rate is 5%, 8%, 10%, 15%, 20%, and 25%. Please show your work so that I understand how your arrived at your answers
Subject is Managerial Economics
In: Economics
The Allwardt Trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Lucy and Ethel) are entitled to the trust's annual accounting income in shares of one-half each.
For the current tax year, Allwardt reports the following.
|
a. How much income is each beneficiary entitled to receive?
b. What is the trust's DNI?
c. What is the trust's taxable income?
d. How much gross income is reported by each of the beneficiaries?
In: Accounting
Percent of Sales Method
At the end of the current year, Accounts Receivable has a balance of $680,000; Allowance for Doubtful Accounts has a debit balance of $6,000; and sales for the year total $3,060,000. Bad debt expense is estimated at 1/4 of 1% of sales.
a. Determine the amount of the adjusting entry
for uncollectible accounts.
$
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
| Accounts Receivable | $ |
| Allowance for Doubtful Accounts | $ |
| Bad Debt Expense | $ |
c. Determine the net realizable value of
accounts receivable.
$
In: Accounting