Clarks & Co. signed a contract on January 15, 2020 to
provide Daisies Cake Factory with an
ingredient-weighing system for a price of $150,000. The system
included finely tuned scales that
fit into Daisies automated line, Clarks proprietary software
modified to allow the weighing
system to function in Dasies automated system, and a two-year
contract to calibrate the
equipment and software on an as-needed basis. If Clark was to
provide these goods or services
separately, it would charge $120,000 for the scales, $20,000 for
the software, and $30,000 for the
calibration contract. Clark Company delivered and installed the
equipment and software on
February 1, 2020, and the calibration service commenced on that
date.
A. Assume that the scales, software and calibration service are all
separate performance
obligations.
1. How much revenue will Clark recognize in 2020 for this
contract?
2. Record in General Journal form the above transactions and
required adjusting
entry at December 31, 2020.
B. Assume that the scales, software and calibration service are
viewed as one performance
obligation. How much revenue will Clark recognize in 2020 for this
contract?
In: Accounting
| The balances of the ledger accounts for a Company on November 30, 2020 are as follows: |
| Account Name | Balance | |
| Cash | $ | 21,000 |
| Accounts Receivable | 10,200 | |
| Supplies | 4,000 | |
| Prepaid Insurance | 10,800 | |
| Equipment | 12,000 | |
| Accumulated Depreciation—Equipment | − | |
| Accounts Payable | 6,800 | |
| Alicia Santiago, Capital | 48,000 | |
| Alicia Santiago, Drawing | 4,600 | |
| Fees Income | 35,000 | |
| Advertising Expense | 4,400 | |
| Rent Expense | 7,200 | |
| Salaries Expense | 13,200 | |
| Supplies Expense | − | |
| Insurance Expense | − | |
| Utilities Expense | 2,400 | |
| Depreciation Expense—Equipment | − | |
| Adjustment information: | |
| (a) |
The supplies were purchased on November 1, 2020. An inventory of supplies showed $2,800 on hand on November 30, 2020. |
| (b) |
The amount of Prepaid Insurance represents a payment made November 1, 2020, for a six-month insurance policy. |
| (c) |
The equipment, purchased November 1, 2020, has an estimated useful life of 5 years with no salvage value. The firm uses the straight-line method of depreciation. |
|
Prepare the Trial Balance section, record the adjustments, and complete the worksheet. |
In: Accounting
What is the 95 percent confidence intervals for the average daily inventory holding cost Pre- and Post- COVID-19 (X_1&〖 X〗_2 )? And what do you conclude by comparing these intervals? Also what is the 99 percent confidence interval for the average daily inventory holding cost Post- COVID-19 (X_2 )? And what do you conclude by comparing the 95 and 99 percent confidence intervals for the average daily inventory holding cost Post- COVID-19 (X_2 )?
| Date | 1/Nov/2019 | 2/Nov/2019 | 3/Nov/2019 | 4/Nov/2019 | 5/Nov/2019 | |
| Pre-COVID-19 | Y1 | 4614.6 | 4615.0 | 4614.6 | 4614.9 | 4616.1 |
| X1 | 8.4 | 8.1 | 9.2 | 8.4 | 6.1 | |
| Date | 1/Apr/2020 | 2/Apr/2020 | 3/Apr/2020 | 4/Apr/2020 | 5/Apr/2020 | |
| Post-COVID-19 | Y2 | 2938.2 | 2942.9 | 2937.9 | 2941.2 | 2934.4 |
| X2 | 11.7 | 8.0 | 10.2 | 9.3 | 11.3 | |
In: Statistics and Probability
4. On January 1, 2019, Roberts Inc. purchased 10% of the outstanding 1,000,000 common shares of Sunk for $200,000. Roberts Inc. considers this investment to be a non-strategic investment. At the
December 31, 2020-year end, the fair value of this investment was $208,000. Sunk's profit in 2020 was $100,000. Sunk paid a dividend of $.60 per common share. On January 1, 2021, Robert decided to buy an additional 25% of Sunk's 1,000,000 common shares for $500,000. This second purchase allowed Robert to significantly influence Sunk. In 2021, Sunk's profit was $140,000. Sunk paid dividends of $.50 per common share in 2021.
For 2020, the investment is considered to be a fair value through profit and loss investment:
Required:
For 2020, the investment is considered to be a fair value through profit and loss inv.
In: Accounting
On June 30, 2020, Buffalo Company issued $4,860,000 face value of 14%, 20-year bonds at $5,591,240, a yield of 12%. Buffalo uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.
(a) Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2020. (2) The payment of interest and the amortization of the premium on December 31, 2020. (3) The payment of interest and the amortization of the premium on June 30, 2021. (4) The payment of interest and the amortization of the premium on December 31, 2021. No. Date Account Titles and Explanation Debit Credit (1) June 30, 2020 (2) December 31, 2020 (3) June 30, 2021 (4) December 31, 2021
In: Accounting
During 2020, Sandhill Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Sandhill for a
lump sum of $119,700 because it is discontinuing manufacturing
operations and wishes to dispose of its entire stock. Three types
of chairs are included in the carload. The three types and the
estimated selling price for each are listed below.
|
Type |
No. of Chairs |
Estimated Selling |
|||
|---|---|---|---|---|---|
|
Lounge chairs |
720 | $90 | |||
|
Armchairs |
540 | 80 | |||
|
Straight chairs |
1,260 | 50 | |||
During 2020, Sandhill sells 400 lounge chairs, 200 armchairs, and
240 straight chairs.
What is the amount of gross profit realized during 2020? What is
the amount of inventory of unsold straight chairs on December 31,
2020? (Round cost per chair to 2 decimal places, e.g.
78.25 and final answer to 0 decimal places, e.g.
5,845.)
|
Gross profit realized during 2020 |
$enter a dollar amount |
|
|---|---|---|
|
Amount of inventory of unsold straight chairs |
$enter a dollar amount |
In: Accounting
During 2020, Skysong Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Skysong for a
lump sum of $77,805 because it is discontinuing manufacturing
operations and wishes to dispose of its entire stock. Three types
of chairs are included in the carload. The three types and the
estimated selling price for each are listed below.
|
Type |
No. of Chairs |
Estimated Selling |
|||
|---|---|---|---|---|---|
|
Lounge chairs |
520 | $90 | |||
|
Armchairs |
390 | 80 | |||
|
Straight chairs |
910 | 50 | |||
During 2020, Skysong sells 260 lounge chairs, 130 armchairs, and
156 straight chairs.
What is the amount of gross profit realized during 2020? What is
the amount of inventory of unsold straight chairs on December 31,
2020? (Round cost per chair to 2 decimal places, e.g.
78.25 and final answer to 0 decimal places, e.g.
5,845.)
|
Gross profit realized during 2020 |
$enter a dollar amount |
|
|---|---|---|
|
Amount of inventory of unsold straight chairs |
$enter a dollar amount |
In: Accounting
Machinery purchased for $41,200 by Swifty Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $6,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $7,000 at the end of that time. Assume straight-line depreciation and that Swifty Corp. uses IFRS for financial statement purposes.
Prepare the entry that is required to correct the prior years’ depreciation, if any
Prepare the entry to record depreciation for 2020.
Repeat part (b) assuming Swifty Corp. uses ASPE and the machinery is originally estimated to have a physical life of 8.5 years and a salvage value of $0. In 2020, it is determined that the total estimated physical life (including 2020) should have been 11 years, with a salvage value of $400 at the end of that time.
Repeat part (b) assuming Swifty Corp. uses the double-declining-balance method of depreciation.
In: Accounting
On February 1, 2018 Cromley Motor Products issued 10% bonds, dated February 1, with a face amount of $90 million. The bonds mature on January 31, 2022 (4 years). The market yield for bonds of similar risk and maturity was 12%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $90,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31.use FVof 1$, PV of 1$ etc.)
Required: 1. Determine the price of the bonds issued on February 1, 2018
PRICE OF THE BOND ……
2a. prepare amortization schedules that indicate Cromley’s effective interest expense for each period during the term to maturity.
Payment Number Cash Payment Effective Interest Increase in Balance Outstanding Balance
1
2
3
4
5
6
7
8
Totals
2b. Prepare amortization schedules that indicate Barnwell’s effective interest revenue for each interest period during the term to maturity. (Enter your answers in whole dollars.) Payment Number Cash Payment Effective Interest Increase in Balance Outstanding Balance
1
2
3
4
5
6
7
8
Totals
3. Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwell’s investment on February 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) a. Record the issuance of the bonds by Cromley. On February 1, 2018 b. Record the Bond investment by Barnwell. On February 1, 2018 4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
a. Record the payment of interest for Cromley Company., on July 31, 2018
b. Record the accrued interest for Cromley Company. On December 31, 2018
c. Record the payment of interest for Cromley Company, on January 31, 2019
d. Record the payment of interest for Cromley Company. On July 31, 2019
e. Record the accrued interest for Cromley Company. On December 31, 2019
f. Record the payment of interest for Cromley Company. On January 31, 2020
5. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
a. Record the payment of interest for Barnwell Company., on July 31, 2018
b. Record the accrued interest for Barnwell Company. . On December 31, 2018
c. Record the receipt of interest for Barnwell Company. on January 31, 2019
d. Record the receipt of interest for Barnwell Company. On July 31, 2019
e. Record the accrued interest for Barnwell Company. On December 31, 2019
f. Record the receipt of interest for Barnwell Company. On January 31, 2020
In: Accounting
It wasn’t long ago that products from Apple, perhaps the most
recognizable name in electronics manufacturing around the world,
were made entirely in America. This is not so anymore. Now, almost
all of the approximately 70 million iPhones, 30 million iPads, and
59 million other Apple products sold yearly are manufactured
overseas. This change represents more than 20,000 jobs directly
lost by U.S. workers, not to mention more than 700,000 other jobs
and business given to foreign companies in Asia, Europe, and
elsewhere. The loss is not temporary. As the late Steven P. Jobs,
Apple’s iconic co-founder, told President Obama, “Those jobs aren’t
coming back.”
At first glance, the transfer of jobs from one
workforce to another would seem to hinge on a difference in wages,
but Apple shows this is an oversimplification. In fact, paying U.S.
wages would add only $65 to each iPhone’s expense, while Apple’s
profits average hundreds of dollars per phone. Rather, and of more
concern, Apple’s leaders believe the intrinsic characteristics of
the labor force available to them in China which they identify as
flexibility, diligence, and industrial skills are superior to those
of the U.S. labor force. Apple executives tell stories of shorter
lead times and faster manufacturing processes in China that are
becoming the stuff of company legend. “The speed and flexibility is
breathtaking,” one executive said. “There’s no American plant that
can match that.” Another said, “We shouldn’t be criticized for
using Chinese workers. The U.S. has stopped producing people with
the skills we need.”
Because Apple is one of the most imitated companies in
the world, this perception of an overseas advantage might suggest
that the U.S. workforce needs to be better led, better trained,
more effectively managed, and more motivated to be proactive and
flexible. If U.S. (and Western European) workers are less motivated
and less adaptable, it’s hard to imagine that does not spell
trouble for the future of the American workforce. Perhaps, though,
Apple’s switch from “100% Made in the U.S.A.” to “10% Made in the
U.S.A.” represents the natural growth pattern of a company going
global. At this point, the iPhone is largely designed in the United
States (where Apple has 43,000 employees), parts are made in South
Korea, Taiwan, Singapore, Malaysia, Japan, Europe and elsewhere,
and products are assembled in China. The future of at least 247
suppliers worldwide depends on Apple’s approximately $30.1 billion
in orders per quarter. And we can’t forget that Apple posted $16.1
billion in revenue from the first quarter of 2014, perhaps in part
because its manufacturing in China builds support for the brand
there.
As makers of some of the most cutting-edge, revered
products in the electronics marketplace, perhaps Apple serves not
as a failure of one country to hold onto a company completely, but
as one of the best examples of global ingenuity.
Questions:
What are the pros and cons for local and overseas
labor forces of Apple’s going global? What are the potential
political implications for country relationships?
Do you think Apple is justified in drawing the
observations and conclusions expressed in the case? Why or why not?
Do you think it is good or harmful to the company that its
executives have voiced these opinions?
How could managers use increased worker flexibility
and diligence to increase the competitiveness of their
manufacturing sites? What would you recommend?
In: Operations Management