Cullumber Company purchased a patent on January 1, 2020 for
$712000. The patent had a remaining useful life of 10 years at that
date. In January of 2021, Cullumber successfully defends the patent
at a cost of $302400, extending the patent’s life to 12/31/32. What
amount of amortization expense would Cullumber record in
2021?
| $101440 |
| $71200 |
| $78600 |
| $83600 |
In: Accounting
During 2020, Blossom Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available.
|
2020 |
2021 |
2022 |
||||
|---|---|---|---|---|---|---|
|
Costs incurred to date |
$410,000 | $901,180 | $1,067,000 | |||
|
Estimated costs to complete |
590,000 | 197,820 | –0– | |||
|
Billings to date |
297,000 | 903,000 | 1,590,000 | |||
|
Collections to date |
271,000 | 805,000 | 1,434,000 |
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
|
Gross profit recognized in 2020 |
$enter a dollar amount |
|
|---|---|---|
|
Gross profit recognized in 2021 |
$enter a dollar amount |
|
|
Gross profit recognized in 2022 |
$enter a dollar amount |
Prepare all necessary journal entries for 2021.
(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. For costs incurred use account Materials, Cash,
Payables.)
|
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|
|
enter an account title to record cost of construction |
enter a debit amount |
enter a credit amount |
|
enter an account title to record cost of construction |
enter a debit amount |
enter a credit amount |
|
(To record cost of construction.) |
||
|
enter an account title to record progress billings |
enter a debit amount |
enter a credit amount |
|
enter an account title to record progress billings |
enter a debit amount |
enter a credit amount |
|
(To record progress billings.) |
||
|
enter an account title to record collections |
enter a debit amount |
enter a credit amount |
|
enter an account title to record collections |
enter a debit amount |
enter a credit amount |
|
(To record collections.) |
||
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
enter an account title to recognize revenue |
enter a debit amount |
enter a credit amount |
|
(To recognize revenue.) |
Compute the amount of gross profit to be recognized each year,
assuming the completed-contract method is used.
|
2020 |
2021 |
2022 |
||||
|---|---|---|---|---|---|---|
|
Gross profit |
$enter a dollar amount |
$enter a dollar amount |
$enter a dollar amount |
In: Accounting
Presented below is an aging schedule for the Ivan Company at December 31, 2020:
| Customer | Balance | Not Yet Due | 1-30 past due | 31-60 past due | 61-90 past due | Over 90 |
| Culberson | $24,000 | $ 9,000 | $15,000 | |||
| Samsa | 30,000 | $30,000 | ||||
| Burks | 50,000 | 5,000 | 5,000 | $40,000 | ||
| Greuel | 38,000 | $38,000 | ||||
| Others | 120,000 | 72,000 | 35,000 | 13,000 | ||
| $262,000 | $107,000 | $49,000 | $28,000 | $40,000 | $38.000 | |
| % estimated uncollectible | 3% | 7% | 12% | 24% | 60% | |
| Total estimated uncollectible | $42,400 | $3,210 | $3,430 | $3,360 | $9,600 | $22,800 |
At December 31 2020, the unadjusted balance in Allowance for Doubtful Account is a credit of $10,000.
Instructions: Cut and paste the general journal below in your window and use it to journalize your entries to answer questions A, C, And D.
[A] Using information above, record the adjusting entry to adjust the allowance for doubtful accounts at December 31, 2020.
General Journal:
| Question# | Account | Debit | Credit |
[B] What is the net (cash) realizable value of accounts receivable after the adjustment is made to record bad debt expense?
(please label answer clearly in your solution/window)
[C] Journalize the following events that occurred in 2021. If no journal entry is required please indicate that no entry is necessary. Use the general journal that you cut and paste in your solution to answer the question.
(1) March 1, a customer with an accounts receivable balance of $400 is deemed uncollectible.
(2) May 1, a check for $400 is received from the customer above.
[D] Journalize the entry to adjust the allowance for doubtful accounts at December 31, 2021 assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,400 and the aging schedule indicates that total estimated collectible accounts will be $36,700.
In: Accounting
For the year ended December 31, 2020, the job cost sheets of
DeVoe Company contained the following data:
| Job Number | Explanation | Direct Materials |
Direct Labour |
Manufacturing Overhead |
Total Costs |
||||||
| 7640 | Balance 1/1 | $25,100 | $24,500 | $29,800 | $79,400 | ||||||
| Current year’s costs | 31,000 | 35,300 | 43,300 | 109,600 | |||||||
| 7641 | Balance 1/1 | 11,600 | 18,800 | 21,900 | 52,300 | ||||||
| Current year’s costs | 43,900 | 48,400 | 58,600 | 150,900 | |||||||
| 7642 | Current year’s costs | 48,900 | 56,000 | 66,600 | 171,500 | ||||||
Other data:
| 1. | Raw materials inventory totalled $15,200 on January 1. During the year, $140,300 of raw materials were purchased on account. |
| 2. | Finished goods on January 1 consisted of Job No. 7638 for $87,200 and Job No. 7639 for $92,200. |
| 3. | Job No. 7640 and Job No. 7641 were completed during the year. |
| 4. | Jobs 7638, 7639, and 7641 were sold on account for $530,400. |
| 5. | Manufacturing overhead incurred on account totalled $118,000. |
| 6. |
Other manufacturing overhead consisted of indirect materials $13,600, indirect labour $19,500, and depreciation on factory machinery $8,000. |
Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Calculate each of the following, then post each to the T account: (1) beginning balance, (2) direct materials, (3) direct labour, (4) manufacturing overhead, and (5) completed jobs. (Post entries in the order displayed in the problem statement.)
| 1. | beginning balance | $ | |
| 2. | direct materials | $ | |
| 3. | direct labour | $ | |
| 4. | manufacturing overhead | $ | |
| 5. | completed jobs | $ | |
| closing balance | $ |
Prepare the adjusting entry for manufacturing overhead, assuming
the balance is allocated entirely to Cost of Goods Sold.
(Credit account titles are automatically indented when
the amount is entered. Do not indent
manually.)
|
Account Titles and Explanation |
Debit |
Credit |
|
In: Accounting
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In: Accounting
At 2020 fye Poppers Corp. Net Income was $4.830 m and the
company had an issue of 24,000
options with a strike price of $50.00. There were 2.8 m shares of
common stock outstanding. The company’s market
cap was $127 m and its balance sheet showed $3.6m of $100 par, 4.3%
convertible preferred stock. Poppers uses the
treasury method for calculating diluted eps. The preferred stock
may be converted at the ratio of four common shares
per one share of preferred.
What is the basic and fully diluted eps?
Please explain how you got the answer
In: Accounting
Use the following information below for The Cashew Company for March 31, 2020:
- Balance per bank statement is $27,248 and the balance per books is $30,851.
- Checks, amounting to $1,341, were still outstanding as of March 31
- A note receivable was collected by Persons’ Bank on behalf of Cashew and credited to the company’s account for $5,150.
- Bank service fees amounted to $120
- Interest was credited to Cashew’s account for $98.
- Check no. 114, for utilities expense, had erroneously been entered into the Cashew’s books as $608; the check cleared the bank for $806.
- Check No. 1272 for $500 was classified as “Not-Sufficient-Funds” (NSF) by Persons’ Bank and returned to Cashew. The check had been written by Jane Jones, who is one of Cashew’s customers
- Cashew deposited $9,374 into the ATM machine’s drop box at Persons’ Bank on March 31st. The bank has not yet credited the account.
Directions:
Prepare the bank reconciliation and prepare all necessary adjusting entries to update the cash balance at the end of the month.
In: Accounting
Blossom Company, a machinery dealer, leased a machine to Dexter
Corporation on January 1, 2020. The lease is for an 8-year period
and requires equal annual payments of $32,207 at the beginning of
each year. The first payment is received on January 1, 2020.
Blossom had purchased the machine during 2016 for $146,000.
Collectibility of lease payments by Blossom is probable. Blossom
set the annual rental to ensure a 6% rate of return. The machine
has an economic life of 10 years with no residual value and reverts
to Blossom at the termination of the lease.
Click here to view factor tables.
Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e.g. 5,275.)
| Amount of the lease receivable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Prepare all necessary journal entries for Blossom for 2020.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually. Round answers to 0
decimal places e.g. 5,275.)
|
In: Accounting
Crane Company, a machinery dealer, leased a machine to Dexter
Corporation on January 1, 2020. The lease is for an 8-year period
and requires equal annual payments of $30,688 at the beginning of
each year. The first payment is received on January 1, 2020. Crane
had purchased the machine during 2016 for $115,000. Collectibility
of lease payments by Crane is probable. Crane set the annual rental
to ensure a 6% rate of return. The machine has an economic life of
10 years with no residual value and reverts to Crane at the
termination of the lease.
Click here to view factor tables.
Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e.g. 5,275.)
| Amount of the lease receivable |
$enter a dollar amount of the lease receivable rounded to 0 decimal places |
Prepare all necessary journal entries for Crane for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
1/1/20 |
enter an account title to record the lease on January 1 |
enter a debit amount |
enter a credit amount |
|
enter an account title to record the lease on January 1 |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record the lease on January 1 |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record the lease on January 1 |
enter a debit amount |
enter a credit amount |
|
|
(To record the lease) |
|||
|
enter an account title to record the first lease payment on January 1 |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record the first lease payment on January 1 |
enter a debit amount |
enter a credit amount |
|
|
(To record the first lease payment) |
|||
|
12/31/20 |
enter an account title for the journal entry on December 31 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the journal entry on December 31 |
enter a debit amount |
enter a credit amount |
Suppose the collectibility of the lease payments was not probable for Crane. Prepare the necessary journal entry for the company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
1/1/20 |
enter an account title for the journal entry on January 1 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the journal entry on January 1 |
enter a debit amount |
enter a credit amount |
Suppose at the end of the lease term, Crane receives the asset and determines that it actually has a fair value of $1,150 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Crane at the end of the lease term. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
1/1/20 |
enter an account title for the journal entry on January 1 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the journal entry on January 1 |
In: Accounting
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In: Accounting