On January 1, 2021, the Apex Company exchanged some shares of common stock it had been holding as an investment for a note receivable. The note principal plus interest is due on January 1, 2022. The 2021 income statement reported $4,620 in interest revenue from this note and a $7,500 gain on sale of investment in stock. The stock’s book value was $31,000. The company’s fiscal year ends on December 31.
Required: 1. What is the note’s effective interest rate?
2. Reconstruct the journal entries to record the sale of the stock on January 1, 2021, and the adjusting entry to record interest revenue at the end of 2021. The company records adjusting entries only at year-end.
In: Accounting
On January 1, 2017, Monty Company purchased 9% bonds having a maturity value of $290,000, for $313,782.32. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Monty Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.
Prepare the journal entry at the date of the bond purchase.
Prepare a bond amortization schedule.
Prepare the journal entry to record the interest revenue and the amortization at December 31, 2017.
Prepare the journal entry to record the interest revenue and the amortization at December 31, 2018.
In: Accounting
Solomon Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Solomon has budgeted sales as indicated in the following table. The company expects a 10 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March.
Required
Complete the sales budget by filling in the missing amounts.
|
Determine the amount of sales revenue Solomon will report on its first quarter pro forma income statement.
Sales Revenue: _____
In: Accounting
On January 1, 2017, Wildhorse Company purchased 12% bonds having a maturity value of $310,000, for $333,502.59. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Wildhorse Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.
Prepare the journal entry at the date of the bond purchase.
Prepare a bond amortization schedule.
Prepare the journal entry to record the interest revenue and the amortization at December 31, 2017.
Prepare the journal entry to record the interest revenue and the amortization at December 31, 2018.
In: Accounting
An income statement for the first year of operations for Patti Company appears below:
| Sales | $ | 390,000 | |
| Dividend revenue | 39,000 | ||
| Interest revenue | 24,050 | ||
| Cost of goods sold | (208,000 | ) | |
| Salary expense | (26,000 | ) | |
| Depreciation expense | (70,200 | ) | |
| Income tax expense | (109,200 | ) | |
| Net income | $ | 39,650 | |
Additional information:
Salaries payable, end of year, $8,450.
Inventories, end of year, $26,000.
Accounts receivable, end of year, $32,500.
Required:
Use the direct approach to calculate the cash provided (used) by operating activities for Patti Company. (Net cash outflows and amounts to be deducted should be indicated by a minus sign.)
In: Finance
A company sells 1,200 units during the first quarter of the year at a selling price of $25 per unit. In addition, the company has a beginning inventory of 600 units that were purchased at $10 per unit, and the following purchases and sales.
Date Units sold Units purchased Cost per unit
January 10 300 $11
January 25 450
February 7 400 $12
February 14 200
March 5 300 $14
March 27 550
If the company uses a periodic inventory system and the weighted average cost method of inventory valuation, then what is the company's ending inventory?
| a. |
$5,400 |
|
| b. |
$4,600 |
|
| c. |
$4,575 |
|
| d. |
$4,200 |
|
| e. |
$4,000 |
In: Accounting
In: Accounting
Garden Glory is a company that provides yard maintenance services
to its customers. Garden Glory offers many types of services such
as grass cutting, shrubby maintenance, flowering planting,
trimming, etc. Many of its customers have multiple properties
[houses, office buildings, apartment complexes] that require
gardening and lawn maintenance services. Garden Glory wants to
maintain data on customers, properties, services offered and also
track services provided. For services provided, they want to know
what property, who that property belongs to and what services the
property receives.
Which of the following represent entities for this scenario. THERE
MAY BE MORE THAN ONE ANSWER.
Answers to choose from:
Property
Who the property belongs to
Type of property such as apartment complex
Customer
Customer Last Name
Street Address
Service Tracking
Type of service such as grass cutting
In: Computer Science
Consider the following enterprise scenario and answer the following questions. ABC is a wholesale company that sells electrical equipment and provides a website from which customers can inquiry about products and identify what they want to buy. When costumers order electrical equipment, they place their order on the ABC website. ABC does not own or hold any equipment as inventory. Rather, the ABC orders the equipment from the appropriate supplier and ranges for the equipment to be shipped directly from the supplier to the customers. The customers pay ABC and receive receipts. The ABC also pays the suppliers and keeps the excess as revenues.
NO HANDWRITING, PLEASE.
In: Computer Science
The information that follows is for Becky’s Baskets for the year ended December 31, 2017 and covers questions 20-27.
Sales 2,000 baskets at $50 per basket = $100,000
Costs: (2,000 baskets produced and sold)
Variable Costs Total Cost
Direct materials 16,000
Direct labor 14,000
Manufacturing overhead 16,000
Selling and Administrative Costs 10,000
Fixed Costs
Manufacturing overhead 30,000
Selling and Administrative Costs 14,000
Assume 2,000 baskets are produced and sold this year unless the question specifies otherwise. The relevant range is from zero to 5,000 units.
20. If 2,000 baskets are produced, what is the product cost per basket?
21. What is the variable cost per basket (including period costs) at 4,000 baskets?
22. What is the fixed product cost per basket at 3,000 baskets?
23. If 3,000 baskets are produced, what is the product cost per basket?
24. What is the incremental cost (increase in cost) by increasing production from 2,000 baskets to 2,001 baskets?
25. If the company sells produces and sells 3,000 baskets how much operating income will they make?
26. If the company produces and sells 2,000 baskets how much will their cost of goods sold be?
27. What is the contribution margin per unit at 2,000 units of production and sales?
In: Accounting