Questions
2016 Dec. 16 Accepted a $13,200, 60-day, 12% note dated this day in granting Wang Lee...

2016
Dec. 16 Accepted a $13,200, 60-day, 12% note dated this day in granting Wang Lee a time extension on his past-due account receivable.
31 Made an adjusting entry to record the accrued interest on the Lee note.
2017
Feb. 14 Received Lee’s payment of principal and interest on the note dated December 16.
Mar. 2 Accepted a $10,000, 6%, 90-day note dated this day in granting a time extension on the past-due account receivable from Collins Co.
17 Accepted a $10,800, 30-day, 7% note dated this day in granting Kathy Perry a time extension on her past-due account receivable.
Apr. 16 Perry dishonored her note when presented for payment.
May 31 Collins Co. refused to pay the note that was due to Hall Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Collins Co.’s accounts receivable.
July 16 Received payment from Collins Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 6%.
Aug. 7 Accepted a $20,000, 90-day, 6% note dated this day in granting a time extension on the past-due account receivable of Brown Co.
Sep. 3 Accepted a $3,000, 60-day, 10% note dated this day in granting Hao Lee a time extension on his past-due account receivable.
Nov. 2 Received payment of principal plus interest from Lee for the September 3 note.
Nov. 5 Received payment of principal plus interest from Brown for the August 7 note.
Dec. 1 Wrote off the Perry account against the Allowance for Doubtful Accounts.
2016
Dec. 16 Accepted a $13,200, 60-day, 12% note dated this day in granting Wang Lee a time extension on his past-due account receivable.
31 Made an adjusting entry to record the accrued interest on the Lee note.
2017
Feb. 14 Received Lee’s payment of principal and interest on the note dated December 16.
Mar. 2 Accepted a $10,000, 6%, 90-day note dated this day in granting a time extension on the past-due account receivable from Collins Co.
17 Accepted a $10,800, 30-day, 7% note dated this day in granting Kathy Perry a time extension on her past-due account receivable.
Apr. 16 Perry dishonored her note when presented for payment.
May 31 Collins Co. refused to pay the note that was due to Hall Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Collins Co.’s accounts receivable.
July 16 Received payment from Collins Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 6%.
Aug. 7 Accepted a $20,000, 90-day, 6% note dated this day in granting a time extension on the past-due account receivable of Brown Co.
Sep. 3 Accepted a $3,000, 60-day, 10% note dated this day in granting Hao Lee a time extension on his past-due account receivable.
Nov. 2 Received payment of principal plus interest from Lee for the September 3 note.
Nov. 5 Received payment of principal plus interest from Brown for the August 7 note.
Dec. 1 Wrote off the Perry account against the Allowance for Doubtful Accounts.

In: Accounting

On December 31, 2020, Ivanhoe Associates owned the following securities, held as a long-term investment. The...

On December 31, 2020, Ivanhoe Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.

Common Stock

Shares

Cost

Gehring Co.

 2,000 $64,000

Wooderson Co.

 5,200 36,400

Kitselton Co.

 1,800 39,600


On December 31, 2020, the total fair value of the securities was equal to its cost. In 2021, the following transactions occurred:

Aug. 1 Received $0.50 per share cash dividend on Gehring Co. common stock.
Sept. 1 Sold 1,560 shares of Wooderson Co. common stock for cash at $6 per share.
Oct. 1 Sold 800 shares of Gehring Co. common stock for cash at $35 per share.
Nov. 1 Received $2 per share cash dividend on Kitselton Co. common stock.
Dec. 15 Received $0.50 per share cash dividend on Gehring Co. common stock.
Dec. 31 Received $2 per share annual cash dividend on Wooderson Co. common stock.


At December 31, the fair values per share of the common stocks were: Gehring Co. $34, Wooderson Co. $6, and Kitselton Co. $20.

Journalize the 2021 transactions and post to the account Stock Investments. (Use the T-account form.) (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. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date                                                                      Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31
choose a transaction date                                                                      Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31

choose a transaction date                                                                      Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31

choose a transaction date                                                                      Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31

choose a transaction date                                                                      Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31

choose a transaction date                                                                      Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31

Stock Investments

choose a transaction date                                                                      Jan. 1 Bal.July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31Dec. 31 Bal.

enter a debit amount

choose a transaction date                                                                      Jan. 1 Bal.July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31Dec. 31 Bal.

enter a debit balance

choose the end date of the accounting period                                                                      Jan. 1 Bal.July 1Aug. 1Sept. 1Oct. 1Nov. 1Dec. 15Dec. 31Dec. 31 Bal.

List of Accounts

  

  

Prepare the adjusting entry at December 31, 2021, to show the securities at fair value. (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.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

enter an account title for the adjusting entry on December 31

enter a debit amount

enter a credit amount

enter an account title for the adjusting entry on December 31

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

  

  

Show the balance sheet presentation of the investments at December 31, 2021. At this date, Ivanhoe Associates has common stock $1,411,000 and retained earnings $1,156,000.

Ivanhoe Associates
Balance Sheet (Partial)
choose the accounting period                                                                      December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021

$enter a dollar amount

In: Accounting

The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1...

The following selected transactions were completed during August between Summit Company and Beartooth Co.:

Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,800.
2 Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1.
5 Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was $40,000.
9 Beartooth Co. paid freight of $2,300 on August 5 purchase from Summit Company.
15 Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,675, which was added to the invoice. The cost of the goods sold was $35,000.
16 Beartooth Co. paid Summit Company for purchase of August 1.
25 Beartooth Co. paid Summit Company on account for purchase of August 15.
31 Beartooth Co. paid Summit Company on account for purchase of August 5.

Journalize the August transactions for (1) Summit Company and (2) Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.

CHART OF ACCOUNTS
Summit Company
General Ledger
ASSETS
110 Cash
121 Accounts Receivable-Beartooth Co.
125 Notes Receivable
130 Inventory
131 Estimated Returns Inventory
140 Office Supplies
141 Store Supplies
142 Prepaid Insurance
180 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
216 Salaries Payable
218 Sales Tax Payable
219 Customer Refunds Payable
221 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
521 Delivery Expense
522 Advertising Expense
524 Depreciation Expense-Store Equipment
525 Depreciation Expense-Office Equipment
526 Salaries Expense
531 Rent Expense
533 Insurance Expense
534 Store Supplies Expense
535 Office Supplies Expense
536 Credit Card Expense
539 Miscellaneous Expense
710 Interest Expense
CHART OF ACCOUNTS
Beartooth Co.
General Ledger
ASSETS
110 Cash
120 Accounts Receivable
125 Notes Receivable
130 Inventory
131 Estimated Returns Inventory
140 Office Supplies
141 Store Supplies
142 Prepaid Insurance
180 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
211 Accounts Payable-Summit Company
216 Salaries Payable
218 Sales Tax Payable
219 Customer Refunds Payable
221 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
521 Delivery Expense
522 Advertising Expense
524 Depreciation Expense-Store Equipment
525 Depreciation Expense-Office Equipment
526 Salaries Expense
531 Rent Expense
533 Insurance Expense
534 Store Supplies Expense
535 Office Supplies Expense
536 Credit Card Expense
539 Miscellaneous Expense
710 Interest Expense

In: Accounting

   2016 Dec. 16 Accepted a $14,500, 60-day, 7% note dated this day in granting Danny...

  

2016

Dec. 16 Accepted a $14,500, 60-day, 7% note dated this day in granting Danny Todd a time extension on his past-due account receivable.
31 Made an adjusting entry to record the accrued interest on the Todd note.


2017

Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16.
Mar. 2 Accepted a(n) $6,200, 7%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co.
17 Accepted a(n) $3,000, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable.
Apr. 16 Privet dishonored her note when presented for payment.
May 31 Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable.
July 16 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 7%.
Aug. 7 Accepted a(n) $8,150, 90-day, 9% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.
Sep. 3 Accepted a(n) $3,610, 60-day, 12% note dated this day in granting Noah Carson a time extension on his past-due account receivable.
Nov. 2 Received payment of principal plus interest from Carson for the September 3 note.
Nov. 5 Received payment of principal plus interest from Mulan for the August 7 note.
Dec. 1 Wrote off the Privet account against the Allowance for Doubtful Accounts.


Required:
1-a. First, complete the table below to calculate the interest amount at December 31, 2016.
1-b. Use the calculated value to prepare your journal entries for 2016 transactions.
1-c. First, complete the table below to calculate the interest amounts.
1-d. Use those calculated values to prepare your journal entries for 2017 transactions.

The journal entries for 1 d are listed below:

Received Todd’s payment of principal and interest on the note dated December 16.

Accepted a $6,200, 7%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co.

Accepted a $3,000, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable.

Privet dishonored her note when presented for payment.

Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.’s accounts receivable.

Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 7%.

Accepted a $8,150, 90-day, 9% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.

Accepted a $3,610, 60-day, 12% note dated this day in granting Noah Carson a time extension on his past-due account receivable.

Received payment of principal plus interest from Carson for the September 3 note.

Received payment of principal plus interest from Mulan for the August 7 note.

Wrote off the Privet account against Allowance for Doubtful Accounts.


  

In: Accounting

Case Study: Housing NSW Housing NSW is an agency of the Department of Family and Community...

Case Study:

Housing NSW Housing NSW is an agency of the Department of Family and Community Services that is responsible for the provision and management of public housing services with the aim to prevent homelessness in the state of New South Wales, Australia. Housing NSW provides a range of services including public and community housing, housing for people of Aboriginal and Torres Strait Islander backgrounds, support services for people with special needs linked to government and non-government agencies, private rental assistance and subsidies, advice and assistance for home-buyers, the development of affordable housing, community regeneration, and development and regulation of social housing policies.

“Our vision is a simple client experience, where modern technology and straightforward processes empower staff to deliver great client service and enable clients to choose how they interact with us and manage their own information”.

Imagine that you are the system analyst in the initial stages of the project. The projects aim is to build a system ‘MyHousing’ that will allow clients to submit applications online, clients can apply for housing assistance or make a change to their application, quickly and easily. This service is available 24/7. It enables clients to upload supporting documents and confirm identity and income information online. Client application forms are then integrated automatically into back end systems, significantly reducing administrative tasks. Note: This is a real project, so there will be many sources of information available for you to research. This MyHousing project is actually complete and in use, however, when you are completing this assessment and writing the vision document assume the project is in the early stages and the system has not yet been built. Complete the Following Tasks You are a business systems analyst that is part of a project that is currently being proposed.

Your task is to investigate the scope of business information system of the given case study and you are required to develop a System Vision Document which includes problem description, system capabilities, business benefits, stakeholder map, and broad feasibility of the project (including possible risks).

In: Economics

Savanna Co. - Investments Company Shares owned by Savanna Total outstanding shares Price per share 12/31/16...

Savanna Co. - Investments

Company

Shares owned by Savanna

Total outstanding shares

Price per share 12/31/16

Price per share 12/31/17

Dividends per share 12/31/16

Dividends per share 12/31/17

Kate Co.

100

1,000

20.00

15.00

1.50

2.00

Kali Co.

100

2,000

20.00

30.00

2.00

2.00

Peyton Co.

100

600

35.00

40.00

1.00

1.00

1. Assuming all three investments are considered Trading Securities, compute the balance sheet value for Savanna's investment on 12/31/2017 2017.

2. Assuming all three investments are considered Trading Securities, compute the income statement effect for Savanna's investment in 2017.

3. Would your answer in 1) or 2) have been different if all three investments were considered available for sale securities in 2017? If so, what would Savanna have reported differently?

4. If Peyton Co. had repurchased 200 shares of its own stock (but none from Savanna) 0n 01/01/2017, would Savanna have accounted for this investment differently than it would have had Peyton not made the repurchases? If so, what additional information would Savanna need to account for this investment?

In: Accounting

Sheldon Company had 2,000 units of inventory costing $10,000 in beginning inventory at July 1st. During...

Sheldon Company had 2,000 units of inventory costing $10,000 in beginning inventory at July 1st. During July, Sheldon Co. engaged in the following transactions:

July 3rd - The company paid cash to purchase 1,000 units of inventory for $6,500.
July 10th - The company paid cash to purchase 1,200 units of inventory for $8,400.

July 24th – The company paid cash to purchase 250 units of inventory for $2,125.

Throughout July, the company sold inventory 3,700 units of inventory for $44,400 cash.

20. What is the total cost of goods available for sale?

a.

$ 27,025
b.

$ 17,375
c.

$ 44,400
d.

$ 17,025

21Under a FIFO valuation method, what is the dollar value of Sheldon Co.’s cost of goods sold in July?

a.

$44,400
b.

$8,750
c.

$21,400
d.

$23,275

22Under a FIFO valuation method, what is the dollar value of Sheldon Co.’s ending inventory balance at July 31st?

a.

$5,625
b.

$3,750
c.

$17,375
d.

$8,750

23Under a LIFO valuation method, what is the dollar value of Sheldon Co.’s cost of goods sold for July?

a.

$44,400
b.

$21,400
c.

$18,275
d.

$23,275

24Under a LIFO valuation method, what is the dollar value of Sheldon Co.’s ending inventory balance at July 31st?

a.

$17,375
b.

$23,275
c.

$3,750
d.

$5,625

In: Accounting

Problem 15-4A Recording, adjusting, and reporting stock investments with insignificant influence LO P4 [The following information...

Problem 15-4A Recording, adjusting, and reporting stock investments with insignificant influence LO P4

[The following information applies to the questions displayed below.]

Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence.

Apr. 16 Purchased 8,000 shares of Gem Co. stock at $24.50 per share.
July 7 Purchased 4,000 shares of PepsiCo stock at $54.00 per share.
20 Purchased 2,000 shares of Xerox stock at $17.00 per share.
Aug. 15 Received a(n) $0.90 per share cash dividend on the Gem Co. stock.
28 Sold 4,000 shares of Gem Co. stock at $31.25 per share.
Oct. 1 Received a $1.80 per share cash dividend on the PepsiCo shares.
Dec. 15 Received a $1.05 per share cash dividend on the remaining Gem Co. shares.
31 Received a $1.40 per share cash dividend on the PepsiCo shares.

Problem 15-4A Part 3

3. Prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments.

fair value for Gem Co. $107,000

fair value for Pepsi $205,000

fair value for Xerox $28,000

In: Accounting

Problem 15-4A Recording, adjusting, and reporting stock investments with insignificant influence LO P4 [The following information...

Problem 15-4A Recording, adjusting, and reporting stock investments with insignificant influence LO P4

[The following information applies to the questions displayed below.]

Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence.

Apr. 16 Purchased 8,000 shares of Gem Co. stock at $24.50 per share.
July 7 Purchased 4,000 shares of PepsiCo stock at $54.00 per share.
20 Purchased 2,000 shares of Xerox stock at $17.00 per share.
Aug. 15 Received a(n) $0.90 per share cash dividend on the Gem Co. stock.
28 Sold 4,000 shares of Gem Co. stock at $31.25 per share.
Oct. 1 Received a $1.80 per share cash dividend on the PepsiCo shares.
Dec. 15 Received a $1.05 per share cash dividend on the remaining Gem Co. shares.
31 Received a $1.40 per share cash dividend on the PepsiCo shares.

Problem 15-4A Part 2

2. Prepare a table to compare the year-end cost and fair values of Rose's short-term stock investments. The year-end fair values per share are Gem Co., $26.75; PepsiCo, $51.25; and Xerox, $14.00.

cost fair value unrealized amount

In: Accounting

Question 3 Case 1: Otter Co. is valuing its inventory at year-end. The company has on...

Question 3

Case 1: Otter Co. is valuing its inventory at year-end. The company has on hand $22,000 in inventory in its warehouse. The company purchased $4,500 of inventory, which was shipped on December 29 with FOB shipping terms. The company didn’t receive the items until after year-end. The company also shipped $6,900 of merchandise inventory to customers on December 27 with FOB shipping terms. The customers all received the items after year-end. What should the company record as inventory at year-end?
Case 2: Otter Co. has $16,700 of merchandise inventory in its warehouse as of the year-end. Included in this amount is $1,400 of cosigned inventory, for which Otter Co. acts as a consignee. Otter Co. did not include $2,400 of inventory that was shipped on December 29 to customers FOB destination. The customers received the items after year-end. What should the company record as inventory on its balance sheet?
Case 3: Otter Co. acts as a consigner for $5,000 of merchandise inventory at retail locations. The company has $8,900 of inventory in its warehouse. The company also has a purchase with shipping terms FOB destination in transit as of year-end that includes $1,500 of merchandise. The company has sales of $1,100 of merchandise in transit at year-end that was shipped FOB destination. What should the company record as inventory on its balance sheet?

In: Accounting