Transactions during 2021 were as follows:

On January 2, 2021, machinery and equipment were purchased at a total invoice cost of $260,000, which included a $5,500 charge for freight. Installation costs of $27,000 were incurred.

On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $25,000. The fair value of the building on the day of the donation was $17,000

On May 1, 2021, expenditures of $50,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated

On November 1, 2021, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's common stock that had a market price of $38 per share. Pell paid legal fees and title insurance totaling $23,000. Shortly after the acquisition, the building was razed at a cost of $35,000 in anticipation of new building construction in 2022.

On December 31, 2021, Pell purchased a small storage building by giving $15,250 cash and an old automobile purchased for 18,000 in 2014 Depreciation on the old automobile recorded through December 31, 2021, totaled $13,500. The fair value of the old automobile was $3,750

Required:

Prepare Journal Entries for the above transactions. Please show all calculations

The city of Miami has received a proposal to build a new multipurpose outdoor sports stadium. The expected life of the stadium is 20 years. It will be financed by a 20-year industrial development bond that will require a payment of 8 percent interest annually. The stadium’s primary tenant will be the city’s Triple-A baseball team, the Mudhawks.

The plan’s backers anticipate that the new facility will also be used for rock concerts and college and high school sports events. The city does not pay any taxes. The city’s cost of capital is 8 percent. The costs and estimated revenues generated from the facility are presented as follows:

Required:

A large manufacturing company in Jubail is considering an electric power plant project in order to save on their electric power consumption by generating its own power supply. The company currently uses 552,000 kW of electric energy a year and pays an average of $3.05 per kwh. The construction of the power plant would require an initial cost of $1,600,000 now plus an additional $950,000 investment at the end of the first year. It is expected to be operational for 10 years with an estimated residual value of $160,000 at the end of the 11th year. Since the installation of the project would take about one year, the annual benefit (in terms of savings) as well as the annual costs would occur only starting at the end of the second year. At that time, the annual operation and maintenance cost is estimated at $750,000 and expected to increase by 5% annually until the end of its useful life. As the capacity of the power plant would be more than adequate what the company needed, the excess energy could be supplied to the neighboring establishments from the fifth year up to the end of the productive life of the project, thereby creating an additional income of $105,000 per year.
Suppose MARR=15%, evaluate this project proposal using all relevant and applicable project assessment tools and techniques. Based on the analysis results, write a detailed recommendation report explaining and justifying your decision whether the project proposal should be accepted or rejected.

Below are transactions related to Wildhorse Company.

Prepare journal entries on the books of Wildhorse Company to record these transactions

For each of these five separate cases, identify the principle(s) of internal control that is violated. Recommend what the business should do to ensure adherence to principles of internal control.

1.Latisha Tally is the company’s computer specialist and oversees its computerized payroll system. Her boss recently asked her to put password protection on all office computers. Latisha has put a password in place that allows only the boss access to the file where pay rates are changed and personnel are added or deleted from the payroll.

2.Marker Theater has a computerized order-taking system for its tickets. The system is active all week and backed up every Friday night.

3.Sutton Company has two employees handling acquisitions of inventory. One employee places purchase orders and pays vendors. The second employee receives the merchandise.

4.The owner of Super Pharmacy uses a check software/printer to prepare checks, making it difficult for ­anyone to alter the amount of a check. The check software/printer, which is not password protected, is on the owner’s desk in an office that contains company checks and is normally unlocked.

5.Lavina Company is a small business that has separated the duties of cash receipts and cash disbursements. The employee responsible for cash disbursements reconciles the bank account monthly.

Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the month of March are as follows.

Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricycles.

eTextbook and Media

Calculate the unit costs of production for materials and conversion costs for both the bicycles and the tricycles.

eTextbook and Media

Calculate the assignment of costs to units transferred out and in process at the end of the accounting period for both the bicycles and the tricycles.

Bicycles

Tricycles

eTextbook and Media

Prepare a production cost report for the month of March for the bicycles only.

1. The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:

Direct Materials processed: 24,500 gallons (after shrinkage)

The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 24,500 gallons of saleable product was $55,000.

The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the constant gross-margin percent for Kenton?

Select one:

a. 64.1%

b. 20.4%

c. 23.6%

d. 62.6%

2. The challenge of a production facility that is producing several products from is how to allocate the joint costs that are incurred ________.

Select one:

a. before the split-off point

b. after the split-off point

c. at the split-off point

d. at the end of production

3. Which of the following formulas would calculate the net realizable value of a product?

Select one:

a. sales value at the split-off point less cost to produce up to the split-off point

b. sales value x constant gross-margin

c. final sales value minus cost of goods sold

d. final sales value minus separable costs

4. Which of the following best describes how the constant gross-margin percentage NRV method allocates joint costs?

Select one:

a. a gross margin is calculated and for each product and then the gross margin is deducted along with separable costs from the final sales value of a product to derive the joint cost allocation for a product

b. an overall gross margin is calculated and for each product and then the gross margin is deducted along with separable costs from the final sales value of a all the products produced in the joint processing and the allocations are then made based on physical volume measures

c. an overall gross margin is calculated and for each product the gross margin is deducted along with separable costs from the final sales value of a product to derive the joint cost allocation for the product

d. a gross margin is calculated and for each product and then gross margin is deducted along from the final sales value of a product to derive the joint cost allocation for a product.

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(T / F) When companies offer trade discounts, the gross selling price (gross invoice price) at which the sale is recorded is equal to the list price minus any trade discounts.

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False

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(T / F) Sales discounts arise when the seller offers the buyer a cash discount of 1 percent to 3 percent to induce early payment of an amount due.

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(T / F) Cost of goods sold = Beginning inventory + Net cost of purchases − Ending inventory.

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False

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(T / F) Beginning inventory + Net cost of purchases = Cost of goods available for sale.

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(T / F) A classified income statement has four major sections—operating revenues, cost of goods sold, operating expenses, and non-operating revenues and accounts receivables.

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False

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(T / F) Non-operating revenues and expenses are revenues and expenses not related to the sale of products or services regularly offered for sale by a business.

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False

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(T / F) The two basic methods for estimating uncollectible accounts under the allowance method are the percentage-of-cost of sales method and the percentage-of-receivables method.

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False

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(T / F) Liabilities result from some past transaction and are obligations to pay cash, provide services, or deliver goods at some time in the future.

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(T / F) Generally, the lower the accounts receivable turnover, the better; and the shorter the average collection period, the better.

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(T / F) Current liabilities are classified as clearly determinable, estimated, and contingent.

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Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the month of March are as follows.

Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricycles.

eTextbook and Media

Calculate the unit costs of production for materials and conversion costs for both the bicycles and the tricycles.

eTextbook and Media

Calculate the assignment of costs to units transferred out and in process at the end of the accounting period for both the bicycles and the tricycles.

Bicycles

Tricycles

eTextbook and Media

Prepare a production cost report for the month of March for the bicycles only.