The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of Thompson has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel: (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.)
Required:
Supply the correct amount for each answer box on the schedule.
(Round your intermediate calculations and final answers to
the nearest whole dollar.)
| THOMPSON CORPORATION | |||||||
| Fixed Asset and Depreciation Schedule | |||||||
| For Fiscal Years Ended September 30, 2020, and September 30, 2021 | |||||||
| Assets |
Acquisition Date |
Cost | Residual |
Depreciation Method |
Estimated Life in Years |
Depreciation for Year Ended 9/30 |
|
| 2020 | 2021 | ||||||
| Land A | 10/1/2019 | $92,700selected answer correct | N/A | not applicable | N/A | N/A | N/A |
| Building A | 10/1/2019 | 679,800selected answer correct | $40,600 | Straight-line | 47selected answer correct | $13,600 | $13,600selected answer correct |
| Land B | 10/2/2019 | 64,600selected answer correct | N/A | not applicable | N/A | N/A | N/A |
| Building B | Under construction | 170,000 to date | — | Straight-line | 30 | — | 0selected answer correct |
| Donated Equipment | 10/2/2019 | 14,400selected answer correct | 1,600 | 200% Declining balance | 10 | 2,880selected answer correct | 2,304selected answer correct |
| Equipment A | 10/2/2019 | 91,400selected answer correct | 5,000 | Sum-of-the years’-digits | 9 | 17,280selected answer correct | 15,362selected answer incorrect |
| Equipment B | 10/1/2020 | 36,000selected answer incorrect | — | Straight-line | 16 | — | |
In: Accounting
Problem 11-10
Skysong Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting department of Skysong has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company’s records and personnel.
| 1. | Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. | |
| 2. | Land A and Building A were acquired from a predecessor corporation. Skysong paid $844,000 for the land and building together. At the time of acquisition, the land had an appraised value of $86,100, and the building had an appraised value of $774,900. | |
| 3. | Land B was acquired on October 2, 2016, in exchange for 2,600 newly issued shares of Skysong’s common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $28 per share. During October 2016, Skysong paid $15,300 to demolish an existing building on this land so it could construct a new building. | |
| 4. | Construction of Building B on the newly acquired land began on October 1, 2017. By September 30, 2018, Skysong had paid $307,000 of the estimated total construction costs of $428,900. It is estimated that the building will be completed and occupied by July 2019. | |
| 5. | Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $38,900 and the salvage value at $2,700. | |
| 6. | Machinery A’s total cost of $181,800 includes installation expense of $540 and normal repairs and maintenance of $14,400. Salvage value is estimated at $6,500. Machinery A was sold on February 1, 2018. | |
| 7. | On October 1, 2017, Machinery B was acquired with a down payment of $5,280 and the remaining payments to be made in 11 annual installments of $5,540 each beginning October 1, 2017. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded). |
|
Present value |
Present value |
|||||
| 10 years | 0.463 | 10 years | 6.710 | |||
| 11 years | 0.429 | 11 years | 7.139 | |||
| 15 years | 0.315 | 15 years | 8.559 |
|||
Complete the schedule below. (Round answers to 0 decimal places, e.g. 45,892.)
SKYSONG CORPORATION
Fixed-Asset and Depreciation Schedule
For Fiscal Years Ended September 30, 2017, and September 30, 2018
|
Depreciation Year Ended |
Expense September 30 |
||||||
| Assets | Acquistion Date | Cost | Salvage | Salavage Deprectiaion Method | Estimated Life in Years | 2017 | 2018 |
| Land A | October 1, 2016 | 1.________ | N/A | N/A | N/A | N/A | N/A |
| Building A | October 1, 2016 | 2.________ | $43,400 | Straight-line | 3.________ | $14,616 |
4._______ |
| Land B | October 2, 2016 | 5.________ | N/A | N/A | N/A | N/A | N/A |
| Building B | Under Construction | $307,000 to date | _ | Straight-line | 30 | __ | 6.______ |
| Donated Equipment | October 2, 2016 | 7._______ | 2,700 | 150 % declining-balance | 10 | 8.________ | 9,_______ |
| Machinery A | October 2, 2016 | 10.______ | 6,500 | Sum-of-the-years'-digits | 8 | 11._______ | 12.______ |
| Machinery B | October 1, 2017 | 13.______ | __ | Straight-line | 20 | ___ | 14.______ |
In: Accounting
Suppose the Xenon (XO) currently is selling at $90 per share. You buy 300 shares, using $20,000 of your own money, and borrow the remainder of the purchase price from your
broker. The rate on the margin loan is 6 percent.
a. What is the percentage increase in the net wealth of your brokerage account if the price of XO immediately changes to
(1)$98
(2)$90
(3)$82
What is the relationship between your percentage return and the percentage change in the price of XO (derive the formula in general terms, not only the numbers)?
b. If the minimum margin is 30 percent, how low can XO’s price fall before you get a margin call?
c. How would your answer to (b) change if you had financed the initial purchase with only $15,000 of your own money?
d. What is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if XO is selling after one year at
(1)$98
(2) $90;
(3)$82
What is the relationship between your percentage return and the percentage change in the price of XO? Assume that XO pays no dividends.
e. Continue to assume that a year has passed. How low can XO price fall before you get a margin call?
In: Finance
Vaniteux's Returns (B). Spencer Grant is a New York-based investor. He has been closely following his investment in400shares of Vaniteux, a French firm that went public in February 2010. When he purchased his 400 shares at€18.07 per share, the euro was trading at$1.3602/€.Currently, the share is trading at€27.68per share, and the dollar has fallen to $1.4065/€. Spencer considers selling his shares at this time but chooses not to sell them after all. He waits, expecting the share price to rise further after the announcement of quarterly earnings. His expectations are correct, and the share price rises to €31.17 per share after the announcement. The current spot exchange rate is $1.3231/€.
a. If Spencer sells his shares today, what percentage change in the share price would he receive?
b. What is the percentage change in the value of the euro versus the dollar over this same period?
c. What would be the total return Spencer would earn on his shares if he sold them at these rates?
a. If Spencer sells his shares today, what percentage change in the share price would he receive?
The shareholder return is
72.5072.50%.
(Round to two decimal places.)
b. What is the percentage change in the value of the euro versus the dollar over this same period?
The percentage change in the value of the euro versus the dollar is
nothing%.
(Round to two decimal places.)
In: Finance
Percentage-of-Completion and Completed Contract Methods
Philbrick Company signed a three-year contract to provide sales training to the employees of Elliot Company. The contract price is $1,200 per employee and the estimated number of employees to be trained is 400. The expected number to be trained in each year and the expected training costs follow.
| Number of Employees |
Training Costs Incurred |
|
|---|---|---|
| 2016 | 125 | $60,000 |
| 2017 | 200 | 75,000 |
| 2018 | 75 | 40,000 |
| Total | 400 | $175,000 |
Required
For each year, compute the revenue, expense, and gross profit
reported assuming revenue is recognized using the following
method.
(Do not round until your final answers. Round your answers to two
decimal places.)
1. Percentage-of-completion method, where percentage-of-completion is determined by the number of employees trained.
| Revenue | Expense | Gross Profit | |
|---|---|---|---|
| 2016 | Answer | Answer | Answer |
| 2017 | Answer | Answer | Answer |
| 2018 | Answer | Answer | Answer |
| Total | Answer | Answer | Answer |
2. Percentage-of-completion method, where percentage-of-completion is determined by the costs incurred.
| Revenue | Expense | Gross Profit | |
|---|---|---|---|
| 2016 | Answer | Answer | Answer |
| 2017 | Answer | Answer | Answer |
| 2018 | Answer | Answer | Answer |
| Total | Answer | Answer | Answer |
3. Completed contract method.
| Revenue | Expense | Gross Profit | |
|---|---|---|---|
| 2016 | Answer | Answer | Answer |
| 2017 | Answer | Answer | Answer |
| 2018 | Answer | Answer | Answer |
| Total | Answer | Answer | Answer |
In: Accounting
Workers are compensated by firms with “benefits” in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2000, workers at one steel plant were paid $30 per hour and in addition received health benefits at the rate of $6 per hour. Also suppose that by 2010 workers at that plant were paid $31.5 per hour but received $13.5 in health insurance benefits.
a. By what percentage did total compensation (wages plus benefits) change at this plant from 2000 to 2010? Instructions: Round your answer to 2 decimal places. Total compensation by: What was the approximate average annual percentage change in total compensation? Instructions: Round your answer to 2 decimal places.
b. By what percentage did wages change at this plant from 2000 to 2010? Instructions: Enter your answer as a whole number. Wages by: What was the approximate average annual percentage change in wages? Instructions: Round your answer to 1 decimal place.
c. If workers value a dollar of health benefits as much as they value a dollar of wages, by what total percentage will they feel that their incomes have risen over this time period? Instructions: Round your answer to 2 decimal places. What if they only consider wages when calculating their incomes? Incomes by:
d. Is it possible for workers to feel as though their wages are stagnating even if total compensation is rising?
In: Economics
The National Football League (NFL) records a variety of performance data for individuals and teams. To investigate the importance of passing on the percentage of games won by a team, the following data show the average number of passing yards per attempt (Yds/Att) and the percentage of games won (Win%) for a random sample of NFL teams.
| Team | Yds/Att | Win% |
| Team 1 | 6.5 | 43 |
| Team 2 | 7.9 | 76 |
| Team 3 | 8.0 | 74 |
| Team 4 | 7.6 | 63 |
| Team 5 | 7.3 | 66 |
| Team 6 | 7.9 | 76 |
| Team 7 | 7.7 | 72 |
| Team 8 | 8.0 | 77 |
| Team 9 | 5.0 | 19 |
| Team 10 | 5.9 | 36 |
|
c. Develop the estimated regression equation that could be used to predict the percentage of games won given the average number of passing yards per attempt. Enter negative value as negative number. win= ( )+ ( )(Yds/Att) (to 2 decimals) d. Provide an interpretation for the slope of the estimated regression equation (to 1 decimal). The slope of the estimated regression line is approximately _____. So, for every_______of one yard in the average number of passes per attempt, the percentage of games won by the team increases by____ %. e. The average number of passing yards per attempt for the other Team was 7.3. Use the estimated regression equation developed in part (c) to predict the percentage of games won by the team. ____ %. |
In: Statistics and Probability
Oak Bay Software has 10.6% coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 108.2% of par.
What is the YTM? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
YTM %
What is the effective annual yield? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Effective annual yield %
Bond J is a 4.7% coupon bond. Bond K is a 10.7% coupon bond. Both bonds have 15 years to maturity, make semiannual payments and have a YTM of 7.7%. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round the final answers to 2 decimal places.)
If interest rates suddenly rise by 2%, what is the percentage price change of these bonds?
| Percentage change in price of Bond J | % |
| Percentage change in price of Bond K | % |
What if rates suddenly fall by 2% instead?
| Percentage change in price of Bond J | % |
| Percentage change in price of Bond K | % |
Colwood Corp. has 8.9% coupon bonds making annual payments with a YTM of 8.1%, current market value of $1,060.10.
How many years do these bonds have left until they mature? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Years left to maturity years
In: Finance
Percentage-of-Completion and Completed Contract Methods
Philbrick Company signed a three-year contract to provide sales training to the employees of Elliot Company. The contract price is $1,200 per employee and the estimated number of employees to be trained is 400. The expected number to be trained in each year and the expected training costs follow.
| Number of Employees |
Training Costs Incurred |
|
|---|---|---|
| 2016 | 125 | $60,000 |
| 2017 | 200 | 75,000 |
| 2018 | 75 | 40,000 |
| Total | 400 | $175,000 |
Required
For each year, compute the revenue, expense, and gross profit
reported assuming revenue is recognized using the following
method.
(Do not round until your final answers. Round your answers
to two decimal places.)
1. Percentage-of-completion method, where percentage-of-completion is determined by the number of employees trained.
| Revenue | Expense | Gross Profit | |
|---|---|---|---|
| 2016 | $Answer | $Answer | $Answer |
| 2017 | $Answer | $Answer | $Answer |
| 2018 | $Answer | $Answer | $Answer |
| Total | $Answer | $Answer | $Answer |
2. Percentage-of-completion method, where percentage-of-completion is determined by the costs incurred.
| Revenue | Expense | Gross Profit | |
|---|---|---|---|
| 2016 | $Answer | $Answer | $Answer |
| 2017 | $Answer | $Answer | $Answer |
| 2018 | $Answer | $Answer | $Answer |
| Total | $Answer | $Answer | $Answer |
3. Completed contract method.
| Revenue | Expense | Gross Profit | |
|---|---|---|---|
| 2016 | $Answer | $Answer | $Answer |
| 2017 | $Answer | $Answer | $Answer |
| 2018 | $Answer | $Answer | $Answer |
| Total | $Answer | $Answer | $Answer |
In: Accounting
In a study of the accuracy of fast food drive-through orders, Restaurant A had 206 accurate orders and 57 that were not accurate. a. Construct a 95% confidence interval estimate of the percentage of orders that are not accurate. b. Compare the results from part (a) to this 95% confidence interval for the percentage of orders that are not accurate at Restaurant B: 0.198less thanpless than0.299. What do you conclude? a. Construct a 95% confidence interval. Express the percentages in decimal form. nothingless thanpless than nothing (Round to three decimal places as needed.) b. Choose the correct answer below. A. Since the upper confidence limit of the interval for Restaurant B is higher than both the lower and upper confidence limits of the interval for Restaurant A, this indicates that Restaurant B has a significantly higher percentage of orders that are not accurate. B. No conclusion can be made because not enough information is given about the confidence interval for Restaurant B. C. Since the two confidence intervals overlap, neither restaurant appears to have a significantly different percentage of orders that are not accurate. D. The lower confidence limit of the interval for Restaurant B is higher than the lower confidence limit of the interval for Restaurant A and the upper confidence limit of the interval for Restaurant B is also higher than the upper confidence limit of the interval for Restaurant A. Therefore, Restaurant B has a significantly higher percentage of orders that are not accurate.
In: Statistics and Probability