On January 1, 2018, Stoops Entertainment purchases a building for $480,000, paying $110,000 down and borrowing the remaining $370,000, signing a 9%, 10-year mortgage. Installment payments of $4,687.00 are due at the end of each month, with the first payment due on January 31, 2018. Complete the first three rows of amortization schedule. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
In: Accounting
Suppose you opened a new account and invested $10,000 in your asset in the beginning of 2014, that on June 30, 2016 you invested an additional $5,000, and that on January 31, 2017 you withdrew $2,000.
If there were no other cash flows coming into or out of the account, what was the dollar balance at the end of 2018 (yes, do include the effect of the return earned during December 2018)?
Rate of return -0.88
In: Finance
A Firm purchased an old Machinery for RM37,000 on 1 January, 2017 and spent RM3,000 on its overhauling. On 1 July 2018, another machine was purchased for RM 10,000. On 1 July 2019, the machinery which was purchased on 1 January 2017, was sold for RM28,000 and the same day a new machinery costing RM25,000 was purchased. On 1 July, 2020, the machine which was purchased on 1 July, 2018 was sold for RM2,000. Depreciation is charged at 10% per annum on straight line method. The firm changed the method and adopted diminishing balance method with effect from 1 January, 2018 and the rate was increased to 15% per annum. The books are closed on 31 December every year.
Required:-
Prepare Machinery account for four years from 1 January 2017.
In: Accounting
A Firm purchased an old Machinery for RM37,000 on 1 January, 2017 and spent RM3,000 on its overhauling. On 1 July 2018, another machine was purchased for RM 10,000. On 1 July 2019, the machinery which was purchased on 1 January 2017, was sold for RM28,000 and the same day a new machinery costing RM25,000 was purchased. On 1 July, 2020, the machine which was purchased on 1 July, 2018 was sold for RM2,000. Depreciation is charged at 10% per annum on straight line method. The firm changed the method and adopted diminishing balance method with effect from 1 January, 2018 and the rate was increased to 15% per annum. The books are closed on 31 December every year.
Required:
Prepare Machinery account for four years from 1 January, 2017.
In: Other
When Patey Pontoons issued 4% bonds on January 1, 2018, with a
face amount of $580,000, the market yield for bonds of similar risk
and maturity was 5%. The bonds mature December 31, 2021 (4 years).
Interest is paid semiannually on June 30 and December 31. (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:
5. What is the amount related to the bonds that
Patey will report in its balance sheet at December 31, 2018?
6. What is the amount related to the bonds that
Patey will report in its income statement for the year ended
December 31, 2018? (Ignore income taxes.)
7. Prepare the appropriate journal entries at
maturity on December 31, 2021.
In: Accounting
In: Accounting
Broussard Skateboard's sales are expected to increase by 25% from $7.8 million in 2018 to $9.75 million in 2019. Its assets totaled $5 million at the end of 2018. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 65%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.
In: Finance
Ryder System is a full-service truck leasing, maintenance, and rental firm with operations in North America and Europe. The firm forecasts the following financial statements in North America and Europe. The firm forecasts the following financial statements for 2018 and 2019 (in millions):
2018 2019
Revenues $5,192.00 $5,400.0
Operating Expenses $3,768.5 $3848.0
Depreciation $573.5 $580.0
Interest Expenses $170.0 $172.0
Taxes $652.1 $670.0
Net Income $117.9 $130.0
Increase in Net Working Capital $57.2 ($462.0)
The firm estimates capital expenditures of $800 million in 2018 and $850 million in 2019. What is the value of the firm today if we assume that the free cash flows will grow at 4.5% per year from 2020 onward and the firm has a weighted average cost of capital of 16.5%?
In: Finance
Askew Company uses a periodic inventory system. The June 30,
2018, year-end trial balance for the company contained the
following information:
| Account | Debit | Credit | ||
| Merchandise inventory, 7/1/17 | 32,400 | |||
| Sales | 384,000 | |||
| Sales returns | 12,400 | |||
| Purchases | 244,000 | |||
| Purchase discounts | 6,400 | |||
| Purchase returns | 10,400 | |||
| Freight-in | 17,800 | |||
In addition, you determine that the June 30, 2018, inventory
balance is $40,400.
Required:
1. Calculate the cost of goods sold for the Askew
Company for the year ending June 30, 2018.
2. Prepare the year-end adjusting entry to record
cost of goods sold.
Prepare the year-end adjusting entry to record cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
In: Accounting
SBS Corporation borrowed $70,000 from the bank on July 1, 2017. The note had a 6 percent annual rate of interest and matured on April 30, 2018. Interest and principal were paid in cash on the maturity date.
Required:
A. What amount of interest expense was recognized on the 2017 income statement?
|
Interest Expense |
$ |
B. What amount of cash did SBS pay for interest in 2017?
|
Amount of Cash Paid |
$ |
C. What amount of total liabilities was reported on the December 31, 2017, balance sheet?
|
Total Liabilities |
$ |
D. What amount of interest expense was reported on the 2018 income statement?
|
Interest Expense |
$ |
E. What total amount of cash was paid to the bank on April 30, 2018, for principal and interest?
|
Amount of Cash Paid |
$ |
In: Accounting