he E.N.D. partnership has the following capital balances as of the end of the current year:
| Pineda | $ | 130,000 |
| Adams | 110,000 | |
| Fergie | 100,000 | |
| Gomez | 90,000 | |
| Total capital | $ | 430,000 |
Answer each of the following independent questions:
Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $125,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners?
Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $325,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)
In: Accounting
A family has a $ 144447 , 20 -year mortgage at 6.6 % compounded monthly. Find the monthly payment. Also find the unpaid balance after 5 years and after 10 years.
In: Finance
As the end of the year 1999 approached, many people worried that banks and more specifically the banks' computers would not be able to read the year 2000 correctly. This was commonly known as the Y2K problem. Many people were concerned that their bank would lose the record of their deposits etc., and made plans to take most of their funds out of the bank.
Address the potential Y2K problem from the standpoint of bank risk. What kind of bank risk potentially could have been involved? Back to the end of the year 1999, how should the different banks have prepared for the potential risks?
Your short essay will be assessed based on the qualities of structured organization, grammatical expression, and logic flow. It should consist of no more than 400 words. You should state the word count at the end of the essay.
In: Accounting
Sean Ltd. follows a policy of a 10% depreciation charge per year on machinery and a 5% depreciation charge per year on buildings.
The following transactions occurred in 2017:
March 31, 2017 A warehouse which Sean had purchased on January 1, 2005 for $1.7 million (with a current fair value of $1 million) was exchanged for another warehouse which also had a current fair value of $1 million. Depreciation has been properly charged from Jan 1, 2005 through Dec 31, 2016. Both parcels of land on which the warehouses were located were equal in value, and had a fair value equal to book value.
June 30, 2017 Machinery with a cost of $120,000 and accumulated depreciation through December 31, 2016 of $90,000 was exchanged, along with $75,000 cash, for a parcel of land with a fair market value of $115,000.
Required
Prepare all appropriate journal entries for Sean Ltd. for the above dates.
In: Accounting
You are on the audit team of Apollo Shoes for the year ending December 31, 2015.
Your manager has asked you to draft the audit report for the year ended December 31, 2015.
Some other things to note:
Appollo Shoes is a public entity and you did not test controls for effectivness
The following were NOT noted during the audit
No departures from GAAP
No scope limitations
No material misstatements noted
No other inforamtion presented with the financial statements
Instructions: Prepare a draft of the audit for Apollo Shoes as of December 31, 2015
Expert Answer
In: Accounting
ZYX Corporation is preparing a cash budget for January of the coming year. The following data have been forecasted:
| January | February | |||
| Sales | 750,000 | 800,000 | ||
| Purchases | 450,000 | 480,000 | ||
|
Operating expenses |
||||
| Payroll | 146,800 | 167,000 | ||
| Advertising | 52,700 | 62,800 | ||
| Rent | 8,750 | 8,750 | ||
| Depreciation | 23,750 | 23,750 | ||
|
End-of-December balances |
||||
| Cash | 120,000 | |||
|
Accounts payable |
250,000 | |||
| Bank loan | 480,000 |
Sales are 40% cash. The term of credit sales is 2/10, n/30.
The collection pattern for credit sales is 75% in the month following the month of sale (of which 80% are collected within 10 days), and 23% in the month thereafter. The remaining credit sales are considered as uncollectible.
The accounts receivable balance on January 1 is $1,000,000, of which $ 700,000 represents uncollected December sales and $300,000 represents uncollected November sales.
Purchases are all on credit, with 40% paid in the month of purchase and the balance the following month.
Operating expenses are paid in the month incurred.
Starting from January, the firm desires to maintain a minimum cash balance of $150,000 at the end of each month. 6% APR loans are used to maintain the minimum cash balance.
At the end of each month, monthly interest is paid on the outstanding loan balance as of the beginning of the month. Repayments are made (at the end of the month) whenever the cash balance exceeds $150,000.
Required:
What is the amount of cash inflow from operations, what is the amount of cash outflow from operations, and what is the amount of loan balance at the end of January after loan repayments, if any?
In: Accounting
Suppose a firm buys a machine with a 4 year useful life for $280,000. The machine has a salvage value of $20,000. Do each question separately.
V. Assume the firm uses straight-line depreciation. After two years
of depreciation, the firm conducts an impairment test. It concludes
the net cash flows from the machine for the remaining two years
will be $60,000 per year. Is the machine impaired? Record the
journal entry if it is impaired. Assume that the appropriate
discount rate is 4%.
VI. Assume the firm uses the units of activity depreciation method
where it allocates depreciation expense proportionate to the number
of hours the machine is operated. It anticipates operating the
machine for 3,000; 3,200; 3,300 and 3,500 hours in the next four
years, respectively. Calculate the depreciation expense and net
book value for each year.
VII. A steelmaker’s assets will largely consist of tangible assets
like inventories and property, plant and equipment. List a firm for
which the most valuable things that the firm owns are intangible
assets that are not recorded on the balance sheet. Which of the two
firms (the steelmaker or the firm you selected) is likely to have
the larger market to book ratio? Explain why.
In: Accounting
The patient is a 57-year old woman with a history of hypertension and chronic stable angina. She arrives in the ED complaining of indigestion-type pain that occurs more frequently than her chest pain and takes over 20 minutes to go away. She appears mildly short of breath, with vital signs of BP 155/98, pulse rate 100, respiratory rate 24/min. What should be considered as the most likely cause of this patient’s pain? Why? What is the difference between stable and unstable angina? Why might this new pain most likely be considered unstable angina?
In: Nursing
You are working on the financial report audit for a wholesaling company the year ended 30 June 2020. You are currently considering the audit approach for the property, plant and equipment account. The balance of the property, plant and equipment account was $325,000 at 30 June 2019. The balance at 30 June 2020 is $410,000. The materiality threshold for this client is $50,000.
You note that all property, plant and equipment has been valued based on fair value estimates. The fair value of the property, plant and equipment is heavily affected by changes in economic conditions. You note that the internal controls for this account are weak.
Required:
Explain why the internal controls are likely to be weak for the property, plant and equipment account.
Comment on whether a lower assessed level of control risk approach, or a predominantly substantive approach be more appropriate for this account.
Identify the main assertion that is likely to be at-risk for this account for this client. Explain why it is at risk.
Identify an audit procedure that would provide evidence for this assertion.
In: Accounting
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2015:
| Gibson | Davis | |||
|---|---|---|---|---|
| Sales | $ | (666,000 ) | $ | (398,000 ) |
| Cost of goods sold | 308,000 | 177,000 | ||
| Operating expenses | 181,000 | 61,000 | ||
| Dividend income | (18,000 ) | 0 | ||
| Net income | $ | (195,000 ) | $ | (160,000 ) |
| Retained earnings, 1/1/15 | $ | (760,000 ) | $ | (415,000 ) |
| Net income | (195,000 ) | (160,000 ) | ||
| Dividends declared | 70,000 | 30,000 | ||
| Retained earnings, 12/31/15 | $ | (885,000 ) | $ | (545,000 ) |
| Cash and receivables | $ | 306,200 | $ | 148,000 |
| Inventory | 512,000 | 113,000 | ||
| Investment in Davis | 583,800 | 0 | ||
| Buildings (net) | 545,000 | 632,000 | ||
| Equipment (net) | 455,000 | 496,000 | ||
| Total assets | $ | 2,402,000 | $ | 1,389,000 |
| Liabilities | $ | (887,000 ) | $ | (504,000 ) |
| Common stock | (630,000 ) | (340,000 ) | ||
| Retained earnings, 12/31/15 | (885,000 ) | (545,000 ) | ||
| Total liabilities and stockholders' equity | $ | (2,402,000 ) | $ | (1,389,000 ) |
Gibson acquired 60 percent of Davis on April 1, 2015, for $583,800. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $60,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $389,200.
Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2015.
a. Prepare a consolidated income statement for the year ending December 31, 2015.
b. Determine the consolidated balance for each of the following accounts as of December 31, 2015.
In: Accounting