Minden Company is a wholesale distributor of premium European chocolates. The company’s balance sheet as of April 30 is given below:

The company is in the process of preparing a budget for May and has assembled the following data:

1. Sales are budgeted at $260,000 for May. Of these sales, $78,000 will be for cash; the remainder will be credit sales. One-half of a month’s credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May.

2. Purchases of inventory are expected to total $155,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April 30 accounts payable to suppliers will be paid during May.

3. The May 31 inventory balance is budgeted at $59,500.

4. Selling and administrative expenses for May are budgeted at $99,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,550 for the month.

5. The note payable on the April 30 balance sheet will be paid during May, with $460 in interest. (All of the interest relates to May.)

6. New refrigerating equipment costing $11,000 will be purchased for cash during May.

7. During May, the company will borrow $21,500 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.

Required:

1. Calculate the expected cash collections from customers for May.

2. Calculate the expected cash disbursements for merchandise purchases for May.

3. Prepare a cash budget for May.

4. Prepare a budgeted income statement for May.

5. Prepare a budgeted balance sheet as of May 31.

1. Calculate the expected cash collections from customers for May.

2. Calculate the expected cash disbursements for merchandise purchases for May.

Prepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated by a minus sign.)

Prepare a budgeted income statement for May.

Prepare a budgeted balance sheet as of May 31.

Problem 2-1A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2

Karla Tanner opens a Web consulting business called Linkworks and completed the following transactions in its first month of operations.
  

  
Required:
1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); K. Tanner, Capital (301); K. Tanner, Withdrawals (302); Services Revenue (403); and Utilities Expense (690).
2. Post the journal entries from part 1 to the ledger accounts.
3. Prepare a trial balance as of April 30.

Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations.
  

  
Required:
1.Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690).
2. Post the journal entries from part 1 to the ledger accounts.
3. Prepare a trial balance as of April 30.

Need a jounalentry worksheet Part1

Part2 - Post the journal entries from part 1 to the ledger accounts

Part3 - Prepare a trial balance as ofAprol30

Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations. April 1 Tanner invests $105,000 cash along with office equipment valued at $25,200 in the company. 2 The company prepaid $7,200 cash for twelve months' rent for office space. (Hint: Debit Prepaid Rent for $7,200.) 3 The company made credit purchases for $12,600 in office equipment and $2,520 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received $2,000 cash. 9 The company completed a $8,400 project for a client, who must pay within 30 days. 13 The company paid $15,120 cash to settle the account payable created on April 3. 19 The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.) 22 The company received $6,720 cash as partial payment for the work completed on April 9. 25 The company completed work for another client for $2,640 on credit. 28 Tanner withdrew $6,200 cash from the company for personal use. 29 The company purchased $840 of additional office supplies on credit. 30 The company paid $700 cash for this month's utility bill. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); K. Tanner, Capital (301); K. Tanner, Withdrawals (302); Services Revenue (403); and Utilities Expense (690).

2. Suppose a British investor is expected to receive payment of 10,000 dollars ($) in twelve months from a U.S. bank. The annual interest rate in dollar deposit is 5% and the annual interest rate in pound deposit is 10%. If the present exchange rate is 0.50 pound per dollar deposit and interest parity holds, then.

(a) How many pounds does the British investor expect to receive at the maturity date of his      U.S. investment?

(b) How many pounds were initially invested? Fully explain all your answers.

3.

     (a) Suppose a computer sells for US$1,200 in the U.S. and for £855 in London. If the exchange rate is £0.65 per dollar, is there any arbitrage (profit opportunity)? Explain

     (b) If the Canadian dollar price of one Euro was C$1.30 in 2003 and the exchange rate adjusted to 0.85 Euro per C$ in 2004, did the Canadian dollar appreciate or depreciate against the Euro. Explain.

1. In its first month of operations, Pharoah Company made three purchases of merchandise in the following sequence: (1) 155 units at $10, (2) 560 units at $11, and (3) 135 units at $12.

a. Calculate the average unit cost.

2. In its first month of operations, Wildhorse Co. made three purchases of merchandise in the following sequence: (1) 190 units at $10, (2) 540 units at $11, and (3) 100 units at $12.

a. Calculate the average unit cost.

b. Compute the cost of the ending inventory under the average-cost method, assuming there are 270 units on hand.

3. At December 31, 2019, the following information was available for Pina Colada Corp.: ending inventory $38,250, beginning inventory $58,500, cost of goods sold $273,000, and sales revenue $366,000.

a. Calculate days in inventory for Pina Colada Corp..

Division Y has asked Division X of the same company to supply it with 8,000 units of part L763 this year to use in one of its products. Division Y has received a bid from an outside supplier for the parts at a price of $48 per unit. Division X has the capacity to produce 32,000 units of part L763 per year. Division X expects to sell 28,800 units of part L763 to outside customers this year at a price of $52.00 per unit. To fill the order from Division Y, Division X would have to cut back its sales to outside customers. Division X produces part L763 at a variable cost of $40 per unit. The cost of packing and shipping the parts for outside customers is $2 per unit. These packing and shipping costs would not have to be incurred on sales of the parts to Division Y.

Required:

a. What is the range of transfer prices within which both the Divisions' profits would increase as a result of agreeing to the transfer of 8,000 parts this year from Division X to Division Y? (Round your final answers to 2 decimal places.)

b. Is it in the best interests of the overall company for this transfer to take place?

a company reports the following information for the current year. all beginning inventory amounts =$0 this year.

unites produced this year 43,000 units, units sold this year 25,800, direct materials 27, direct labor 29 variable overheard 129,000 fixed overheard $215,000.

units sold this year 25,800. Given the data, and the knowledge that the product is sold for $83 per unit and operating expenses are $380,000, compute the net income under absorption and variable costing?

Ayden's Toys, Inc., just purchased a $474,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its six-year economic life. Each toy sells for $27. The variable cost per toy is $12, and the firm incurs fixed costs of $281,000 each year. The corporate tax rate for the company is 35 percent. The appropriate discount rate is 11 percent. What is the financial break-even point for the project?

Jimstan & Jimstan Corp. can sell a new 10-year bond with an annual coupon of 5.5% and a face value of $1,000 for $1,206.33. The company will incur flotation costs of $40 per bond and has a tax rate of 27%.

Part 1

What are the net proceeds from selling the bond?

Nd=P−F=1,206.33−40=Nd=P-F=1,206.33-40= 1,166.33 Correct ✓

Part 2

What is the company's pre-tax cost of debt?