1.The following information is available for completed Job No. 402: Direct materials, $220000; direct labor, $280000; manufacturing overhead applied, $210000; units produced, 5000 units; units sold, 4000 units. The cost of the finished goods on hand from this job is
2.If a company has a discontinued operation gain of $45000 and a 34% tax rate, what is the effect on net income?
3.Cullumber Company sold its licorice division resulting in a loss of $83000. Assuming a tax rate of 29%, the loss on this disposal will be reported on the income statement at what amount?
4.Crane Company's accounting records reflect the following
inventories:
| Dec. 31, 2017 | Dec. 31, 2016 | ||
| Raw materials inventory | $210000 | $160000 | |
| Work in process inventory | 300000 | 160000 | |
| Finished goods inventory | 190000 | 150000 |
During 2017, $700000 of raw materials were purchased, direct labor
costs amounted to $670000, and manufacturing overhead incurred was
$640000.
Crane Company's total manufacturing costs incurred in 2017 amounted
to
5.Vaughn Manufacturing's accounting records reflect the
following inventories:
| Dec. 31, 2020 | Dec. 31, 2019 | ||
| Raw materials inventory | $310000 | $260000 | |
| Work in process inventory | 300000 | 160000 | |
| Finished goods inventory | 190000 | 150000 |
During 2020, $1000000 of raw materials were purchased, direct labor
costs amounted to $768200, and manufacturing overhead incurred was
$768000.
If Vaughn Manufacturing's cost of goods manufactured for 2020
amounted to $2346200, its cost of goods sold for the year is
6.Coronado Industries's accounting records reflect the following
inventories:
| Dec. 31, 2019 | Dec. 31, 2020 | ||
| Raw materials inventory | $ 84000 | $ 67000 | |
| Work in process inventory | 106000 | 118000 | |
| Finished goods inventory | 100000 | 92000 |
During 2020, Coronado purchased $1450000 of raw materials, incurred
direct labor costs of $250000, and incurred manufacturing overhead
totaling $160000.
How much raw materials were transferred to production during 2020
for Coronado?
7.Waterway Industries reported total manufacturing costs of $400000, manufacturing overhead totaling $60000, and direct materials totaling $65000. How much is direct labor cost?
In: Accounting
The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below.
| GREAT
ADVENTURES, INC. Income Statement For the year ended December 31, 2020 |
| Revenues: | |||
| Service revenue (clinic, racing, TEAM) | $543,000 | ||
| Sales revenue (MU watches) | 118,000 | ||
| Total revenues | $661,000 | ||
| Expenses: | |||
| Cost of goods sold (watches) | 70,000 | ||
| Operating expenses | 304,276 | ||
| Depreciation expense | 50,000 | ||
| Interest expense | 29,724 | ||
| Income tax expense | 57,000 | ||
| Total expenses | 511,000 | ||
| Net income | $150,000 |
| GREAT
ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 |
| 2020 | 2019 | Increase (I) or Decrease (D) | |||
| Assets | |||||
| Current assets: | |||||
| Cash | $ 322,362 | $138,000 | $ 184,362 (I) | ||
| Accounts receivable | 45,000 | 35,000 | 10,000 (I) | ||
| Inventory | 17,000 | 14,000 | 3,000 (I) | ||
| Other current assets | 13,000 | 11,000 | 2,000 (I) | ||
| Long-term assets: | |||||
| Land | $ 500,000 | $ 0 | $ 500,000 (I) | ||
| Buildings | 1,000,000 | 0 | 1,000,000 (I) | ||
| Equipment | 65,000 | 65,000 | |||
| Accumulated depreciation | (75,250) | (25,250) | 50,000 (I) | ||
| Total assets | $1,887,112 | $237,750 | |||
| Liabilities and Stockholders’ Equity | |||||
| Current liabilities: | |||||
| Accounts payable | $ 12,000 | $ 9,000 | $ 3,000 (I) | ||
| Interest payable | 750 | 750 | |||
| Income tax payable | 57,000 | 38,000 | 19,000 (I) | ||
| Long-term liabilities: | |||||
| Notes payable | 492,362 | 30,000 | 462,362 (I) | ||
| Stockholders’ equity: | |||||
| Common stock | 120,000 | 20,000 | 100,000 (I) | ||
| Paid-in capital | 1,105,000 | 0 | 1,105,000 (I) | ||
| Retained earnings | 175,000 | 140,000 | 35,000 (I) | ||
| Treasury stock | (75,000) | 0 | (75,000) (I) | ||
| Total liabilities and stockholders’ equity | $1,887,112 | $237,750 | |||
| Additional Information for 2020: |
| 1.Borrowed $500,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,638. |
| 2.Issued common stock for $1,200,000. |
| 3.Purchased 10,000 shares of treasury stock for $15 per share. |
| 4.Reissued 5,000 shares of treasury stock at $16 per share. |
| 5.Declared and paid a cash dividend of $115,000. |
Required:
Prepare the statement of cash flows for the year ended December 31, 2020, using the indirect method.
In: Accounting
The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below.
| GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020 |
||
| Revenues: | ||
| Service revenue (clinic, racing, TEAM) | $ 547,000 | |
| Sales revenue (MU watches) | 122,000 | |
| Total revenues | $ 669,000 | |
| Expenses: | ||
| Cost of goods sold (watches) | 72,000 | |
| Operating expenses | 304,476 | |
| Depreciation expense | 52,000 | |
| Interest expense | 29,924 | |
| Income tax expense | 58,200 | |
| Total expenses | 516,600 | |
| Net income | $ 152,400 | |
| GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 |
|||||||||
| 2020 | 2019 | Increase (I) or Decrease (D) |
|||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash | $ | 327,832 | $ | 140,000 | $ | 187,832 | (I) | ||
| Accounts receivable | 48,000 | 37,000 | 11,000 | (I) | |||||
| Inventory | 17,300 | 14,200 | 3,100 | (I) | |||||
| Other current assets | 13,300 | 11,200 | 2,100 | (I) | |||||
| Long-term assets: | |||||||||
| Land | 300,000 | 0 | 300,000 | (I) | |||||
| Buildings | 1,200,000 | 0 | 1,200,000 | (I) | |||||
| Equipment | 67,000 | 67,000 | |||||||
| Accumulated depreciation | (77,750) | (25,750) | 52,000 | (I) | |||||
| Total assets | $ | 1,895,682 | $ | 243,650 | |||||
| Liabilities and Stockholders' Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 12,300 | $ | 9,200 | $ | 3,100 | (I) | ||
| Interest payable | 770 | 770 | |||||||
| Income tax payable | 58,200 | 39,000 | 19,200 | (I) | |||||
| Long-term liabilities: | |||||||||
| Notes payable | 513,332 | 31,000 | 482,332 | (I) | |||||
| Stockholders' Equity: | |||||||||
| Common stock | 130,000 | 30,000 | 100,000 | (I) | |||||
| Paid-in capital | 1,105,000 | 0 | 1,105,000 | (I) | |||||
| Retained earnings | 161,080 | 133,680 | 27,400 | (I) | |||||
| Treasury stock | (85,000) | 0 | (85,000) | (I) | |||||
| Total liabilities and stockholders’ equity | $ | 1,895,682 | $ | 243,650 | |||||
Additional Information for 2020:
1. Borrowed $520,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,668.
2. Issued common stock for $1,200,000.
3. Purchased 10,000 shares of treasury stock for $17 per share.
4. Reissued 5,000 shares of treasury stock at $18 per share.
5. Declared and paid a cash dividend of $125,000.
Required:
Prepare the statement of cash flows for the year ended December 31, 2020, using the indirect method. (List cash outflows as negative amounts.)
In: Accounting
The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below.
| GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020 |
||
| Revenues: | ||
| Service revenue (clinic, racing, TEAM) | $ 547,000 | |
| Sales revenue (MU watches) | 122,000 | |
| Total revenues | $ 669,000 | |
| Expenses: | ||
| Cost of goods sold (watches) | 72,000 | |
| Operating expenses | 304,476 | |
| Depreciation expense | 52,000 | |
| Interest expense | 29,924 | |
| Income tax expense | 58,200 | |
| Total expenses | 516,600 | |
| Net income | $ 152,400 | |
| GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 |
|||||||||
| 2020 | 2019 | Increase (I) or Decrease (D) |
|||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash | $ | 327,832 | $ | 140,000 | $ | 187,832 | (I) | ||
| Accounts receivable | 48,000 | 37,000 | 11,000 | (I) | |||||
| Inventory | 17,300 | 14,200 | 3,100 | (I) | |||||
| Other current assets | 13,300 | 11,200 | 2,100 | (I) | |||||
| Long-term assets: | |||||||||
| Land | 300,000 | 0 | 300,000 | (I) | |||||
| Buildings | 1,200,000 | 0 | 1,200,000 | (I) | |||||
| Equipment | 67,000 | 67,000 | |||||||
| Accumulated depreciation | (77,750) | (25,750) | 52,000 | (I) | |||||
| Total assets | $ | 1,895,682 | $ | 243,650 | |||||
| Liabilities and Stockholders' Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 12,300 | $ | 9,200 | $ | 3,100 | (I) | ||
| Interest payable | 770 | 770 | |||||||
| Income tax payable | 58,200 | 39,000 | 19,200 | (I) | |||||
| Long-term liabilities: | |||||||||
| Notes payable | 513,332 | 31,000 | 482,332 | (I) | |||||
| Stockholders' Equity: | |||||||||
| Common stock | 130,000 | 30,000 | 100,000 | (I) | |||||
| Paid-in capital | 1,105,000 | 0 | 1,105,000 | (I) | |||||
| Retained earnings | 161,080 | 133,680 | 27,400 | (I) | |||||
| Treasury stock | (85,000) | 0 | (85,000) | (I) | |||||
| Total liabilities and stockholders’ equity | $ | 1,895,682 | $ | 243,650 | |||||
Additional Information for 2020:
1. Borrowed $520,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,668.
2. Issued common stock for $1,200,000.
3. Purchased 10,000 shares of treasury stock for $17 per share.
4. Reissued 5,000 shares of treasury stock at $18 per share.
5. Declared and paid a cash dividend of $125,000.
Required:
Prepare the statement of cash flows for the year ended December 31, 2020, using the indirect method. (List cash outflows as negative amounts.)
In: Accounting
1.) Barnes Medical Center purchased an x-ray machine on December 1, 2018, for $120,000. The machine has an $87,000 accumulated depreciation. On January 1, 2020, it is sold for $40,000. Record the sale of the x-ray machine. (4 pts.) Use the space provided to type in your journal entry, following the correct general journal format. Please note, debit account title(s) must be listed in the first line, then on the next line(s) credit account title(s).
2.) Grey Landscaping purchased an L-mower with a cost of $8,500. The current book value is $2,500. On January 1, 2020, it is sold for $1,750. Record the sale of the L-mower. Use the correct general journal format.
3.) On December 1, 2020, Gene Furniture traded its old cash register in for a new cash register. The old cash register had cost $3,500 originally, but currently has a book value of $500. The new cash register has a list price of $4,800. Ogle Furniture was granted an $800 trade-in allowance for the old cash register and paid the difference. Use the correct general journal format.
4.) Rover Furniture purchased equipment on January 1, 2018, for $50,000, with a $5,000 salvage value and a 9-year life. Laramie uses straight-line depreciation. Depreciation has been recorded through December 31, 2020. On April 1, 2021, the equipment is sold for $22,000. Record all necessary transactions on April 1st. Use the correct general journal format.
5.) On October 1, 2020, Lance Company exchanged a delivery vehicle with a cost of $64,000 and a book value of $42,000, plus cash of $17,000 for a new delivery vehicle. The old vehicle had a fair value of $38,000. Prepare the journal entry to record the exchange of assets. Use the correct general journal format.
6.) On October 1, 2020, the Lance Company ledger shows Equipment with a balance of $100,000 and Accumulated Depreciation – Equipment of $50,000. Straight-line depreciation has been used for the asset which had a 9-year useful life, and salvage of $10,000. On this date, the company concludes that the equipment has a remaining useful life of only 3 years with a $2,000 salvage value. Compute the revised annual depreciation.
In: Accounting
Question One
Given the following account information for Howard Corporation, prepare a balance sheet in report form for the company as of December 31, 2020. All accounts have normal balances. Assume Howard uses IFRS.
Equipment........................................................................................ 60,000
Interest Expense.............................................................................. 2,400
Interest Payable............................................................................... 600
Retained Earnings, beginning.......................................................... 113,200
Dividends.......................................................................................... 50,400
Land.................................................................................................. 137,320
Accounts Receivable....................................................................... 102,000
Bonds Payable................................................................................. 78,000
Accumulated other comprehensive income ……………………….. 19,000
Notes Payable (due in 6 months).................................................... 29,400
Common Stock................................................................................ 70,000
Accumulated Depreciation—Equip.................................................. 10,000
Prepaid Advertising.......................................................................... 5,000
Service Revenue.............................................................................. 341,400
Buildings........................................................................................... 80,400
Supplies............................................................................................ 1,860
Income Taxes Payable.................................................................... 3,000
Utilities Expense............................................................................... 1,320
Advertising Expense........................................................................ 1,560
Salaries and Wages Expense.......................................................... 53,040
Salaries and Wages Payable........................................................... 900
Accumulated Depr. Bldg.................................................................. 20,000
Cash................................................................................................. 45,000
Depreciation Expense...................................................................... 8,000
Investment in Bonds to be held to maturity ………………………… 100,000
FV-OCI Investments (Fair value = 16,000)…………………………. 12,000
FV-NI Investments …………………………………………………… 3,200
Assets held for sale …………………………………………….. 22,000
Cash is comprised of $50,000 at RBC and a bank overdraft of $5,000 at BMO.
Question 2
The controller of Nebula Corporation has provided you with the following information:
Nebula Corporation
Income Statement
For the Year Ended December 31, 2020
Net sales.................................................................................................. 620,000
Operating expenses................................................................................ 410,000
Income from operations.......................................................................... 210,000
Other revenues and expenses
Gain on sale of equipment............................................................... 30,000
Interest expense............................................................................... 8,000 22,000
Income before income taxes................................................................... 232,000
Income taxes........................................................................................... 92,800
Net income.............................................................................................. 139,200
Nebula Corporation
Comparative Account Information
Relating to Operations
For the Year Ended December 31, 2020
2020 2019
Accounts receivable 56,000 40,000
Prepaid insurance 5,000 6,000
Accounts payable 59,000 47,000
Interest payable 600 1,500
Income taxes payable 4,200 6,000
Unearned revenue 20,000 14,000
Instructions
In: Accounting
Treasure Corp. is a public company and has 100,000 common shares outstanding and 15,000 cumulative $2 preferred shares outstanding. In 2020, the company reported income from continuing operations before income tax of $2,830,000. Additional transactions not considered in the $2,830,000 are as follows: 1. In 2020, Treasure Corp. sold equipment for $65,000. The machine had originally cost $60,000 and had accumulated depreciation to date of $45,000. 2. The company sold one of its subsidiaries during the current year. Assume that this transaction meets the criteria for discontinued operations. The loss on 2020 operations of this subsidiary was $60,000 before tax. The loss from disposal of the subsidiary was $7,000 before tax. 3. Treasure purchased new computers for $20,000 cash at the end of 2020 to take advantage of a supplier promotion. By doing so, the company saved $4,000. 4. At year end, the company reviewed its accounts receivable and determined that a $6,700 of accounts receivable that had been outstanding since May appeared unlikely to be collected. No allowance for doubtful accounts was previously set up. 5. An internal audit discovered that amortization (depreciation) expense on a patent had been erroneously missed for both 2019 and 2020. The patent had a cost of $120,000 and has an 8-year useful life. 6. The company had an unrealized gain of $41,000 (not taxable) on their FV-OCI investment. Instructions: a. Make a list with one to six and for each of the 6 points, indicate if the transaction would effect Continuing Operations, Discontinued Operations, Other Comprehensive Income or N/A and by what before-tax amount, positive or negative. E.g. “8. Discontinued +53,000” b. Taking into account the above information, prepare a Statement of Financial Performance for the year 2020, starting with income from continuing operations before income tax. Calculate earnings per share as it should be shown on the face of the income statement (The preferred share dividends are $30,000). Assume a total effective tax rate of 30% on all points, unless otherwise indicated. c. Not all information is created equal. Using an example from the information provided in points 1 through 6, explain how the quality of earning information could have shortcomings. Be clear but concise and limit your answer to two to three sentences.
In: Accounting
You work as an analyst for an institution located in Riyadh, Kingdom of Saudi Arabia (or KSA).
The Saudi Arabia’s Monetary Authority, KSA’s Central Bank, has recently released a report on the regulation of the quantity of money in the country for the upcoming Year 2021.
In answering the questions that follow: show all relevant formulas and calculations. Keep two decimal points.
As part of the report, Saudi’s Central Bank created a reference value for money growth between 2020 and 2021, according to which they expect real growth to stay between -4.2% and -6.3%, inflation rate to be between 3.9% and 5.8%, and velocity growth to range between -1.8% and -3.1%.
Using the averages for the figures provided above, calculate KSA’s estimated money growth rate. (2 points)
Suppose that the Central Bank’s report also states that between 2019 and 2020, due to the anticipated inflation in the MENA region brought on by 2020, the Saudi Arabian Monetary Authority is planning to DECREASE the country’s ‘M2’ from SR 230 billion to SR 205 billion (SR = Saudi Riyal).
According to the report, between 2020 and 2021, the KSA’s measure of velocity is expected to stay constant at 3.25.
Using the Quantity Theory of Money, calculate the percentage change in the KSA’s nominal GDP. (1.5 points)
*** Note: Question 4(b) is not related to Question 4(a).
The report states that, due to the anticipated deflation in the MENA region brought on by EXPO 2020, between 2020 and 2021, the Saudi Consumer Price Index is expected to DECREASE from 185 to 155.
Using Fisher’s Equation, determine the impact of this change on the level of the nation’s real GDP. (1.5 points)
*** Note: Question 4(c) is a continuation from Question 4(b) and is not related to Question 4(a).
BECN 250 – Money and Banking – Formulas
CPI = Cost of Basket in Current YearCost of Basket in Base Year × 100%
GDP deflator= Nominal GDPReal GDP
Inflation rate 1= New CPI - Old CPIOld CPI ×100% = New Cost of Basket - Old Cost of BasketOld Cost of Basket × 100%
Percentage change = New - OldOld ×100%
% Δ M + % Δ V = % Δ P + % Δ Y = % Δ Nominal GDP
Money growth + Velocity growth = Inflation + Real growth
In: Economics
The following trial balance relates to Atlop Sdn Bhd at 31 March 2020 :
|
RM’000 |
RM’000 |
|||||
|
Ordinary share @ RM0.50 per share |
70,000 |
|||||
|
Retained profit at 1 April 2019 |
11,200 |
|||||
|
Land and building at cost (land RM100milion) |
60,000 |
|||||
|
(note i) |
||||||
|
Plant and equipment at cost (note i) |
94,500 |
|||||
|
Accumulated depreciation at 1 April 2019 : |
||||||
|
- |
Building |
20,000 |
||||
|
- |
Plant and equipment |
24,500 |
||||
|
Inventories at 31 March 2020 |
43,700 |
|||||
|
Trade receivables |
42,200 |
|||||
|
Bank |
6,800 |
|||||
|
Deferred tax (note ii) |
6,200 |
|||||
|
Trade payables |
35,100 |
|||||
|
Revenue |
550,000 |
|||||
|
Cost of sales |
411,500 |
|||||
|
Distribution cost |
21,500 |
|||||
|
Administrative expenses |
30,900 |
|||||
|
Dividend paid |
20,000 |
|||||
|
Bank interest |
700 |
|||||
|
Current tax (note ii) |
1,200 |
|||||
|
725,000 |
725,000 |
|||||
The following notes are relevant :
8
On 1 April 2019, the director decided that the financial statements would show an improved position if land and building were revalued to market value. At the date, an independent valuer valued the land at RM12 million and the building at RM35 million and these valuations were accepted by the directors. The remaining life of the buildings at that date was 14 years. Atlop does not make a transfer to retained profit for excess depreciation. Ignore deferred tax on the revaluation surplus.
Plant and equipment is depreciated at 20% per annum using the reducing balance method and time apportioned appropriate. All depreciation is charged to cost of sales but none has yet been charged on any non current asset for the year ended 31 March 2020.
Required :
c) Prepare the changes on equity on related column only.
In: Accounting
The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below.
|
GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020 |
||
| Revenues: | ||
| Service revenue (clinic, racing, TEAM) | $ 555,000 | |
| Sales revenue (MU watches) | 130,000 | |
| Total revenues | $ 685,000 | |
| Expenses: | ||
| Cost of goods sold (watches) | 76,000 | |
| Operating expenses | 304,876 | |
| Depreciation expense | 56,000 | |
| Interest expense | 30,324 | |
| Income tax expense | 60,600 | |
| Total expenses | 527,800 | |
| Net income | $ 157,200 | |
|
GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 |
|||||||||
| 2020 | 2019 |
Increase (I) or Decrease (D) |
|||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash | $ | 313,784 | $ | 144,000 | $ | 169,784 | (I) | ||
| Accounts receivable | 54,000 | 41,000 | 13,000 | (I) | |||||
| Inventory | 17,900 | 14,600 | 3,300 | (I) | |||||
| Other current assets | 13,900 | 11,600 | 2,300 | (I) | |||||
| Long-term assets: | |||||||||
| Land | 600,000 | 0 | 600,000 | (I) | |||||
| Buildings | 1,000,000 | 0 | 1,000,000 | (I) | |||||
| Equipment | 71,000 | 71,000 | |||||||
| Accumulated depreciation | (82,750) | (26,750) | 56,000 | (I) | |||||
| Total assets | $ | 1,987,834 | $ | 255,450 | |||||
| Liabilities and Stockholders' Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 12,900 | $ | 9,600 | $ | 3,300 | (I) | ||
| Interest payable | 810 | 810 | |||||||
| Income tax payable | 60,600 | 41,000 | 19,600 | (I) | |||||
| Long-term liabilities: | |||||||||
| Notes payable | 555,284 | 33,000 | 522,284 | (I) | |||||
| Stockholders' Equity: | |||||||||
| Common stock | 120,000 | 20,000 | 100,000 | (I) | |||||
| Paid-in capital | 1,105,000 | 0 | 1,105,000 | (I) | |||||
| Retained earnings | 193,240 | 151,040 | 42,200 | (I) | |||||
| Treasury stock | (60,000) | 0 | (60,000) | (I) | |||||
| Total liabilities and stockholders’ equity | $ | 1,987,834 | $ | 255,450 | |||||
Additional Information for 2020:
1. Borrowed $560,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,716.
2. Issued common stock for $1,200,000.
3. Purchased 10,000 shares of treasury stock for $12 per share.
4. Reissued 5,000 shares of treasury stock at $13 per share.
5. Declared and paid a cash dividend of $115,000.
Required:
Prepare the statement of cash flows for the year ended December 31, 2020, using the indirectmethod. (List cash outflows as negative amounts.)
In: Accounting