Questions
Cost Flow Relationships The following information is available for the first year of operations of Creston...

Cost Flow Relationships

The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment:

Sales $1,270,300
Gross profit 343,000
Indirect labor 114,300
Indirect materials 47,000
Other factory overhead 21,600
Materials purchased 647,900
Total manufacturing costs for the period 1,402,400
Materials inventory, end of period 47,000

Using the above information, determine the following amounts:

a. Cost of goods sold $
b. Direct materials cost $
c. Direct labor cost $

In: Accounting

At the beginning of the year, Lambert Motors issued the three notes described below. Interest is...

At the beginning of the year, Lambert Motors issued the three notes described below. Interest is paid at year-end. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

  1. The company issued a two-year, 12%, $600,000 note in exchange for a tract of land. The current market rate of interest is 12%.
  2. Lambert acquired some office equipment with a fair value of $94,643 by issuing a one-year, $100,000 note. The stated interest on the note is 6%. The current market rate of interest is 12%.
  3. The company purchased a building by issuing a three-year installment note. The note is to be repaid in equal installments of $1 million per year beginning one year hence. The current market rate of interest is 12%.


Required:

Prepare the journal entries to record each of the three transactions and the interest expense at the end of the first year for each. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.)

In: Accounting

Suppose you have invested the following sums on the last day of each year in a...

Suppose you have invested the following sums on the last day of each year in a mutual fund with front-end loads of 4% and management fees of 0.4%. The fund earned 11% per year. How much will you have at the end of year 10?

Year                Cash Flow

    0                       $1600

    1                       $2500

    2                       $3000

In: Finance

Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...

Analysis of Receivables Method

At the end of the current year, Accounts Receivable has a balance of $490,000; Allowance for Doubtful Accounts has a debit balance of $4,500; and sales for the year total $2,210,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $18,500.

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

You are the auditor of Ounass Company and have started work on the current year audit....

You are the auditor of Ounass Company and have started work on the current year audit. Ounass is a distributor of high-end designer clothing doing business in the last three years. Your firm has handled the audit of Ounass eversince. Recently, the Ounass business has suffered as a result of low-consumer spending and increased competition in the past two years. Later, as you were discussing with Ounass personnel, it was revealed that the counting of inventory was performed a few days ago at the warehouse without prior notice to you (being the auditor). No documentation or feedback from that counting of inventory was given to the audit team, except for OMR 10,000 inventory adjustment in the books, no reason was given on the adjustment. You have discussed the issue with senior management, and they are aware that audit evidence is missing regarding the OMR 100,000 amount of inventory. Inventory list provided was incomplete and cost data was inaccurate. There is no other available alternative method to validate the balance of inventory at this time. Total assets of Ounass is OMR 500,000 and the balance of inventory is considered significant.
Required: Explain your answer to the following questions:
1. Based on the given situation, write your reasons if the auditor can form his opinion on the financial statements? Formulate your answer based on ISA 200 and ISA 700 concepts.
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          FINALMEXAMINATIONSEMESTER2ACADEMICYEAR2019-2020FINALMEXAMINATIONSEMESTER1ACADEMICYEAR2019-2020FINALMEXAMINATIONSEMESTER2ACADEMICYEAR2019-2020FINALMEXAMINATIONSEMESTER2ACADEMICYEAR2019-2020 FINALMEXAMINATIONSEMESTER2ACADEMICYEAR2019-2020
  
2. What are the key decision points that could be obtained by the auditor from the case in forming his opinion? Determine the appropriate auditor’s opinion to be included in the auditor’s report whether Unmodified Opinion or Modified Opinion. Justify your decision(I need more details please)

In: Accounting

A 22 year old woman reported to your health centre with a complaint of fever for...

A 22 year old woman reported to your health centre with a complaint of fever for 6 days. What questions will you ask the patient in the History of Presenting Complaints?

In: Nursing

Ms. Early Saver has decided to invest $1,000 at the end of each year for the...

  1. Ms. Early Saver has decided to invest $1,000 at the end of each year for the next 10 years, then she will just let the amount compound for 25 additional years. Her brother, Late Saver, has a different investment program: He will invest nothing for the next 10 years but will invest $1,000 per year (at the end of each year) for the following 25 years. If we assume a 3% percent rate of return, compounded annually, which investment program will be worth more 35 years from now? If instead, the assumed interest rate is 8% percent rate which investment program will be worth more in 35 years?

   Are the results with different interest rates different? Using your results elaborate on the power of compounding and how it impacts savings in the long run.

In: Finance

The following information was taken from the records of Bridgeport Inc. for the year 2017: Income...

The following information was taken from the records of Bridgeport Inc. for the year 2017: Income tax applicable to income from continuing operations $206,448; income tax applicable to loss on discontinued operations $27,336, and unrealized holding gain on available-for-sale securities (net of tax) $23,700.

Gain on sale of equipment

$97,700

Cash dividends declared

$139,500

Loss on discontinued operations

80,400

Retained earnings January 1, 2017

611,500

Administrative expenses

244,100

Cost of goods sold

933,800

Rent revenue

44,200

Selling expenses

277,800

Loss on write-down of inventory

60,600

Sales Revenue

1,981,600


Shares outstanding during 2017 were 109,300.

(a) Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.48.)

b) prepare a comprehensive income statement for 2017, using the two statement format.

c) prepare a retained earnings statement, or 2017.

In: Accounting

The following information is available about the company: a. All sales during the year were on...

The following information is available about the company:
a. All sales during the year were on account.
b. There was no change in the number of shares of common stock outstanding during the year.
c. The interest expense on the income statement relates to the bonds payable; the amount of
bonds outstanding did not change during the year.
d. Selected balances at the beginning of the current year were:
  Accounts receivable $ 340,000
  Inventory $ 450,000  
  Total assets $ 1,880,000  


e. Selected financial ratios computed from the statements below for the current year are:


  Earnings per share $ 3.15
  Debt-to-equity ratio 0.900
  Accounts receivable turnover 15.0
  Current ratio 2.10
  Return on total assets 12 %
  Times interest earned ratio 6.0
  Acid-test ratio 1.19
  Inventory turnover 8.0


Required:

Compute the missing amounts on the company's financial statements. (Hint: What’s the difference between the acid-test ratio and the current ratio?) (Do not round intermediate calculations.)

Pepper Industries
Income Statement
For the Year Ended March 31
Sales $4,800,000
Cost of goods sold 3,234
Gross margin 2,343
Selling and administrative expenses 1,893
Net operating income 20,789
Interest expense 63,000
Net income before taxes 129,089
Income taxes (40%) 12,900
Net income $12,000
Pepper Industries
Balance Sheet
March 31
Current assets:
Cash $200
Accounts receivable, net 300
Inventory 690
Total current assets 780
Plant and equipment, net 980
Total assets $742
Liabilities:
Current liabilities $270,000
Bonds payable, 10% 234
Total liabilities 128
Stockholders’ equity:
Common stock, $2.80 par value 145
Retained earnings 178
Total stockholders’ equity 132
Total liabilities and stockholders equity $198

Please Fill in the last 2 charts with the correct numbers.

In: Accounting

The following information is available about the company: a. All sales during the year were on...

The following information is available about the company:
a. All sales during the year were on account.
b. There was no change in the number of shares of common stock outstanding during the year.
c. The interest expense on the income statement relates to the bonds payable; the amount of
bonds outstanding did not change during the year.
d. Selected balances at the beginning of the current year were:
  Accounts receivable $ 350,000
  Inventory $ 460,000  
  Total assets $ 2,560,000  


e. Selected financial ratios computed from the statements below for the current year are:


  Earnings per share $ 5.76
  Debt-to-equity ratio 0.920
  Accounts receivable turnover 16.0
  Current ratio 2.20
  Return on total assets 12 %
  Times interest earned ratio 7.0
  Acid-test ratio 1.20
  Inventory turnover 9.0


Required:

Compute the missing amounts on the company's financial statements. (Hint: What’s the difference between the acid-test ratio and the current ratio?) (Do not round intermediate calculations.)

Pepper Industries
Income Statement
For the Year Ended March 31
Sales $4,900,000
Cost of goods sold 2,649,375
Gross margin 307,200
Selling and administrative expenses 128,750
Net operating income 588,750
Interest expense 64,000
Net income before taxes 72,000
Income taxes (40%) 23,987
Net income $289,009
Pepper Industries
Balance Sheet
March 31
Current assets:
Cash $23,000
Accounts receivable, net 12,000
Inventory 43,000
Total current assets 45,987
Plant and equipment, net 12,000
Total assets $12,000
Liabilities:
Current liabilities $280,000
Bonds payable, 10% 32,908
Total liabilities 12,000
Stockholders’ equity:
Common stock, $2.90 par value 12,000
Retained earnings 12,000
Total stockholders’ equity 6,000
Total liabilities and stockholders equity $98,000

Please Fill in the chart with correct numbers.

In: Accounting