On January 1, 2020, Kingbird Inc. issued $350,000 of 6-year, 3% bonds to yield a market interest rate of 4%. Interest is paid every quarter on January 1, April 1, July 1, and October 1. Kingbird has a calendar year end. After recording the December 31, 2021 accrual for quarterly interest, and making the payment on January 1, 2022, all the bonds were redeemed at 101.

Prepare a bond amortization schedule for the first two years (8 interest periods). (Round answers to 0 decimal places, e.g. 5,276.) KINGBIRD INC. Bond Discount Amortization Schedule Effective-Interest Method Semi-Annual Interest Period Interest Payment Interest Expense Amortization Bond Amortized Cost Issue Date, Jan. 1, 2020 $ Apr. 1, 2020 $ $ $ $ Jul. 1, 2020 Oct 1, 2020 Dec. 31, 2020 (accrual) Apr. 1, 2021 Jul. 1, 2021 Oct 1, 2021 Dec. 31, 2021 (accrual)

Schedule of Cash Payments for a Service Company

EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March). The Accrued Expenses Payable balance on January 1 is $25,400. The budgeted expenses for the next three months are as follows:

Other operating expenses include $3,200 of monthly depreciation expense and $700 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 80% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.

Prepare a schedule of cash payments for operations for January, February, and March. Enter all amounts as positive numbers.

Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2017. January February March April May Estimated unit sales 12,000 14,000 13,000 11,000 11,000 Sales price per unit $50.00 $47.50 $47.50 $47.50 $47.50 Direct labor hours per unit 2.0 2.0 1.5 1.5 1.5 Wage per direct labor hour $8.00 $8.00 $8.00 $9.00 $9.00 Lowell has a labor contract that calls for a wage increase to $9.00 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Lowell expects to begin the year with 17,600 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month’s sales, plus 40% of the second following month’s sales.

Prepare a direct labor budget for Lowell Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours.

Schedule of Cash Payments

EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March). The Accrued Expenses Payable balance on January 1 is $33,100. The budgeted expenses for the next three months are as follows:

Other operating expenses include $4,200 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 65% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.

Prepare a schedule of cash payments for operations for January, February, and March.

Managers conclude that the combination of two firms will expand revenues through cross selling of products, efficient exploitation of brands, and geographic and product line extension.

They forecast new revenues of $100 million in the first year and $200 million in year two, growing at 2.5% per year there after. The cost of goods underline these new revenues is 45% of the revenues.

To achieve these synergies will require an investment of $400 million initially, and 5% of the added revenue each year, to find working capital growth.

Find the net present value of the synergy is using a discount rate of 15% and a marginal tax rate of 40%

The following data applies to a particular item of merchandise:

On hand at start of period                   300      $5.10

1st purchase                                        500      5.20

2nd purchase                                       700      5.30

3rd purchase                                        600      5.50

Number of units available for sale      2,100

On hand at end of period                    500

Number of units sold during period 1,600

Of the 1,600 units sold during the period, 300 were from the beginning inventory; 500 from the first purchase; 600 from the second purchase; And 200 from the last purchase. The amount of the cost of goods sold would be

FIFO

LIFO

Weighted Avg

Prepare summary journal entries to record the following transactions for a company in its first month of operations.

1. Raw materials purchased on account, $88,000.
2. Direct materials used in production, $39,000. Indirect materials used in production, $17,800.
3. Paid cash for factory payroll, $55,000. Of this total, $39,000 is for direct labor and $16,000 is for indirect labor.
4. Paid cash for other actual overhead costs, $7,500.
5. Applied overhead at the rate of 120% of direct labor cost.
6. Transferred cost of jobs completed to finished goods, $60,600.
7. Sold jobs on account for $86,500. The jobs had a cost of $60,600.

1. Briefly critique the following statements : (No more than five sentences!) (a) The First Welfare Theorem demonstrates that a free market in equilibrium is Pareto efficient. We, therefore, know that the distribution of goods in equilibrium is fair. (b) The Second Welfare Theorem demonstrates that any Pareto Efficient allocation of resources can be maintained by the free market system. Hence, what we need to do for the purpose of efficient public policy is to tax people until we get the desired allocation. (For example: by taxing shelter so that it becomes more expensive relative to food and using the tax revenues to buy shelter for the poor.)

Question:

Elmo has the following information for the month of October, its first month of operations

Work in Process October 1st $0

Units completed & transferred out in October $120,000

Work in Process October 30th $32,000

100% completed for materials

80% completed for conversion costs

Costs added in October shown below

Materials $145,900

Direct Labour $ 96,000

Overhead $108,000

(1.) Determine the equivalent units of production for October.

(2.) Determine the cost of the ending work-in-process.
(3.) Determine the cost of goods completed.
(4) What is meant by the term equivalent full units?

What are the basic principles for just ownership in Nozick's "entitlement theory" of justice? What methods of obtaining property does each of the first two principles cover? What does his third principle reveal about any claims about the right of poor people to goods now held by others as a matter of justice? What does the principle of rectification add to the basic principles? Describe the Wilt Chamberlain story used by Nozick to illustrate libertarian justice. What is this story meant to show?. Explain why you find Nozick’s arguments convincing or not regarding the definition of a just economic system.