The company has the following account balances on June 1, 2020. (all accounts have their ‘normal’ balances)

Drawings: 1000

Cash: 20000

Service revenue: 50000

Capital: 15000

Depreciation Expense: 700

Equipment: 30000

Accounts Payable: 5000

Insurance Expense: 500

Unearned Service Revenue: 4000

Prepaid Service Revenue: 500

Accounts Receivable: 4000

Rent Expense: 5000

Salaries Expense: 16000

Accumulated Depreciation - Equipment: 3000

During June 2018, the following events took place. Where appropriate, record a journal entry for each transaction. If no journal entry is required, write ‘no entry’.

1. On June 2, the company prepaid rent for July to September for $6,000.
2. On June 8, someone invested $3,000 cash and a computer system valued at $2,000 into the company.
3. On June 10, the company collected $4,000 it was owed on account.
4. On June 15, The company provided a quotation for membership fees to a corporation looking to provide fitness benefits to its employees. The quotation was for $10,000. The corporation will decide next month if it is a good fit.
5. On June 22 the company provided product and collected $5,000.
6. On June 24 the company received a $1,000 bill for advertising expense that it will pay in the near future.
7. On June 27 the company paid $2,000 cash on account.
8. On June 29, the owner withdrew $600 for personal use.
9. On June 30, the company purchased $1,000 of supplies on account.
10. On June 30, the company paid employee salaries of $3,000.

Question: Open T-accounts using the beginning balances provided and post entries into T-accounts. Calculate the balance of each one.

The company has the following account balances on June 1, 2020. (all accounts have their ‘normal’ balances)

Drawings: 1000

Cash: 20000

Service revenue: 50000

Capital: 15000

Depreciation Expense: 700

Equipment: 30000

Accounts Payable: 5000

Insurance Expense: 500

Unearned Service Revenue: 4000

Prepaid Service Revenue: 500

Accounts Receivable: 4000

Rent Expense: 5000

Salaries Expense: 16000

Accumulated Depreciation - Equipment: 3000

During June 2018, the following events took place. Where appropriate, record a journal entry for each transaction. If no journal entry is required, write ‘no entry’.

1. On June 2, the company prepaid rent for July to September for $6,000.
2. On June 8, someone invested $3,000 cash and a computer system valued at $2,000 into the company.
3. On June 10, the company collected $4,000 it was owed on account.
4. On June 15, The company provided a quotation for membership fees to a corporation looking to provide fitness benefits to its employees. The quotation was for $10,000. The corporation will decide next month if it is a good fit.
5. On June 22 the company provided product and collected $5,000.
6. On June 24 the company received a $1,000 bill for advertising expense that it will pay in the near future.
7. On June 27 the company paid $2,000 cash on account.
8. On June 29, the owner withdrew $600 for personal use.
9. On June 30, the company purchased $1,000 of supplies on account.
10. On June 30, the company paid employee salaries of $3,000.

Prepare the unadjusted trial balance for the company at June 31, 2018.

On April 1, 2020, Dalinar Company began construction on a new distribution warehouse. Construction was completed on December 31, 2020, at which time the building was placed in service. Dalinar made an initial payment toward construction on April 1, 2020 of $240,000 and made additional payments $30,000 every two months thereafter, beginning on June 1 and continuing through December 1. A final payment of $100,000 was made on December 31 at the completion of construction. Dalinar borrowed $150,000 at 4% on April 1 to partially finance the previously mentioned payment on that date. All other construction costs were paid using cash on hand.

The only other liability currently owed by Dalinar is a long-term, $120,000 note payable with principal due on December 31, 2024. The long-term note was issued at face-value, has a stated rate of 6%, and has interest payable annually every 12 months at October 31. At the time the note was issued, the market rate for similar notes was 6%.

What are the weighted average accumulated expenditures for the year?

What is Dalinar's capitalized interest on specific debt?

What is Dalinar's capitalized interest on non-specific debt?

Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2020. An analysis reveals the following:

1. During December, Superior sold 6,700 skateboards that carry a 60-day warranty. The skateboard sales totalled $392,000. The company expects 8% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $40.
2. A disgruntled employee is suing the company. Legal advisers believe that it is probable that Superior will have to pay damages, the amount of which cannot be reasonably estimated.
3. Superior needs to record previously unrecorded cash sales of $2,120,000 (cost of sales 65%) plus applicable HST.
4. Superior recognizes that $97,000 of $162,000 received in advance for skateboards has now been earned.

Presented below is information related to equipment owned by Blossom Company at December 31, 2020.

Blossom intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,600. As of December 31, 2020, the equipment has a remaining useful life of 4 years.

Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Prepare the journal entry (if any) to record depreciation expense for 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

The asset was not sold by December 31, 2021. The fair value of the equipment on that date is $6,519,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $24,600. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company’s Assembling Department is as follows.

The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 62,000 units were produced.

State the total monthly budgeted cost formula. Prepare a budget report for August using flexible budget data. In September, 68,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August

The stockholders’ equity accounts of Waterway Company have the following balances on December 31, 2020.

Shares of Waterway Company stock are currently selling on the Midwest Stock Exchange at $34.

Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2020. To obtain these shares, Flynn pays $400 (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays $15 (in thousands) to a local investment firm for arranging the transaction. An additional $10 (in thousands) was paid by Flynn in stock issuance costs.

The preacquisition book values for both Flynn and Macek as of January 1, 2020 follow. The fair value

of each of Flynn and Macek accounts is also included. In addition, Macek holds a fully amortized

trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related

question also is in thousands.

Required: Compute the amounts requested . All answers must be in thousands

1. What is the amount of goodwill?

2. What is the amount will be reported for consolidated receivables?

3. What amount will be reported for consolidated cash?

4. What amount will be reported for consolidated common stock?

5. What amount will be reported for consolidated additional paid-in capital?

Gundy Company expects to produce 1,304,400 units of Product XX in 2020. Monthly production is expected to range from 87,000 to 127,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $1.

In March 2020, the company incurs the following costs in producing 107,000 units: direct materials $455,000, direct labor $746,000, and variable overhead $971,000. Actual fixed costs were equal to budgeted fixed costs.

Prepare a flexible budget report for March. (List variable costs before fixed costs.)

Were costs controlled? Select an option

YesNo

resented below is information related to equipment owned by Windsor Company at December 31, 2020.

Windsor intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $21,600. As of December 31, 2020, the equipment has a remaining useful life of 5 years.

Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Prepare the journal entry (if any) to record depreciation expense for 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

The asset was not sold by December 31, 2021. The fair value of the equipment on that date is $5,724,000. Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $21,600. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)