Get college assignment help at uniessay writers During 2010, Bleeker Corp. entered into the following transactions. 1. Borrowed $60,000 by issuing bonds. 2. Paid $9,000 cash dividend to stockholders. 3. Received $17,000 cash from a customer who had previously been billed for services provided. 4. Purchased supplies on account for $3,100. Using the following tabular analysis, show the effect of each transaction on the accounting equation
Sales-Type/BPO Lease Problem Accompanying Financial Statements: Sheldon Co. leases some heavy construction equipment from Molly Inc. The lease is for 5 years and the $250,000 payments are made semi-annually beginning on August 1, 2005, the day the lease is signed. The equipment has a life of 8 years. At the end of the lease, Sheldon can purchase the equipment using a bargain purchase option in the lease. The BPO is $400,000. Molly charges an interest rate of 8%. The FMV of the equipment at the inception of the lease is $2,379,058.57. At the end of the lease, Sheldon exercises the BPO. The cost of the equipment to Molly is $2,000,000. Molly has no significant uncertainties about future unreimbursable costs. Also, collectability of the cash is reasonably assured. Assume that Molly makes reversing entries at the beginning of each year- be careful of this when reporting financial statement balances. Prepare an amortization table for the lease. Prepare the journal entries that Molly would record for each year of the lease. You do not have to record the reversing entries for the purposes of this exercise. You will need to assume they are made, but I am not asking you to record them here. You may elect to do so if it helps you keep track of what is going on. For the years ended 2006 and 2007, identify what would appear on the Balance Sheet, Income Statement and Statement of Cash Flows for Molly, related to the lease. On the Balance Sheet, you need to separate the current assets from the non current assets. On the Statement of Cash Flows assume the direct method is used. Also, indicate the section of the statement the cash flow would appear in and identify the source or use of cash (ex. Operating section –cash received from dividends). Ignore taxes. You need not report cash on the balance sheet. I have completed the amortization table and journal entries and believe I did them correctly. However, it is a different story with the financial statements. I’m not an idiot but I really feel like one. I lack confidence in my financial statement abilities because we aren’t instructed how to calculate and report in certain circumstances, and I lack background accounting knowledge. I feel like I am doing them incorrectly, and I am confused on the statement of cash flows. We spent point two seconds on that. This is my first accounting class in years, and I know only what is provided from the professor and the book. The internet has offered no help- I’ve looked for days! I know I am making a mountain out of a molehill. Help?
Compute the annual breakeven number of meals and sales revenue for the restaurant. Also compute the number of meals and the amount of sales revenue needed to earn operating income of $75,600 for the year. How many meals must the Homs serve each night to earn their target income of $75,600? Should the couple open the restaurant?
South Co. purchased a machine that was installed and placed on Jan. 1, 2007 at a cost of 240,000.00 over 10 yrs using the double-declining method for the year ending Dec 31, 2008 what amount should Sout Co. report as its depreciation expense
On January 1, 2009, Pacer Company paid $1,920,000 for 60,000 shares of Lennon Co.’s voting common stock which represents a 45% investment. No allocation to goodwill or other specific account was made. Significant influence over Lennon was achieved by this acquisition. Lennon distributed a dividend of $2.50 per share during 2009 and reported net income of $670,000. What was the balance in the Investment in Lennon Co. account found in the financial records of Pacer as of December 31, 2009
1. (TCO 4) The postponement of a project until conditions are more favorable: is not a valuable option. is referred to as the option to extend. could cause a negative net present value project to become a positive net present value project. will generally cause the internal rate of return for a project to decline. 2. (TCO 4) ____________, refers to the situation a firm faces when it has positive net present value projects, but cannot obtain financing for those projects. capital planning. soft rationing. capital rationing. hard rationing. a sunk cause. 3. (TCO 4) Assume Company X plans to invest $60,000 in industrial equipment. Using Tables 9.6 and 9.7 of your textbook (Page 277), which is the first year depreciation amount under MACRS? $12,000 $8,574 $19,800 None of the above 4. (TCO 1 and 4) Assume a corporation has earnings before depreciation, and taxes of $100,000, depreciation of $40,000, and that it has a 30 percent tax bracket. What are the after-tax cash flows for the company? $82,000 $110,000 $42,000 none of these .70 .90 5. (TCO 1) Which of the these activities is a capital budgeting task? Select all that apply: determining the amount of cash needed on a daily basis to operate a firm identifying assets that produce value in excess of the cost to acquire those assets establishing the inventory level analyzing the amount of funds needed and the cost of funds establishing a new credit policy 6. (TCO 1) Market value is important to the financial manager because: It reflects the value of the asset based on generally-accepted accounting principles. Is a crucial component of the balance sheet, and can impact the financial statements. Market values reflect the amount someone is willing to pay today for an asset. The market value of an asset reflects its historical cost. 7. (TCO 1) Use the following tax table to answer this question: McKenzie, Inc. earned $144,320 in taxable income for the year. What is the company’s approximate average tax rate? 27% 29% 31% 33% 35% 8. (TCO 3) Regional Bank offers you an APR of nine percent compounded quarterly, and local bank offer you an ear of 9.15% for a new auto loan you should choose; a. regional bank apr b. local bank ear c. regional bank ear d. local bank apr 9. (TCO 3) You deposited $11,000 in your bank account today. Which of the following will decrease the future value of your deposit, assuming that all interest is reinvested? Assume the interest rate is a positive value. Select all that apply: (Points: 4) a decrease in the interest rate increasing the initial amount of your deposit decreasing the frequency of the interest payments decreasing the length of the investment period 10. (TCO 7) Which one of the following statements concerning financial leverage is correct? The benefits of leverage are unaffected by the amount of a firm’s earnings. The use of leverage will always increase a firm’s earnings per share. The shareholders of a firm are exposed to greater risk anytime a firm uses financial leverage. Earnings per share are unaffected by changes in a firm’s debt-equity ratio. Financial leverage is beneficial to a firm only when the firm has minimal earnings. 11. (TCO 3) SmithKline Company’s bonds are currently selling for $1,157.75 per $1000 par-value bond. The bonds have a 10 percent coupon rate and will mature in 10 years. What is the approximate yield to maturity? 6.96% 7.69% 11.0% 12.1% 12. (TCO 8) Which of the following is true regarding bonds? Bonds do not carry default risk. Bonds are sensitive to changes in the interest rates. Moody’s and Standard and Poor’s provide information regarding a bond’s interest rate risk. Municipal bonds are free of default risk. None of the above is true 13. (TCO 8) Two years ago, Maple Enterprises issued six percent, 20-year bonds and Temple Corp issued six percent, 10-year bonds. Since their time of issue, interest rates have increased. Which of the following statements is true of each firm’s bond prices in the market, assuming they have equal risk? Maple’s decreased more than Temple’s Temple’s decreased more than Maple’s Maple’s increased more than Temple’s They are both priced the same 14. (TCO 6) A sinking fund is an account managed by a bond trustee for the sole purpose of: paying interest payments on a semi-annual basis. redeeming bonds early. repaying the face value at maturity. paying the expenses required to reissue outstanding bonds. paying the “balloon payment” at maturity.
Goofy Inc. bought 15,000 shares of crazy co.’s stock for $150,000 on May 5, 2008, and classified the stock as available for sale. The market value of the stock declined to $118,000 by December 31,2008. Goofy reclassified this investment as trading securities in December of 2009 when the market value had risen to $125,000. What effect on 2009 income should be reported by Goofy for the Crazy Co. Shares?
False Value Hardware began 2009 with a credit balance of $32,000 in the allowance for sales return account. Sales and cash collections from customers during the year were $650,000 and $610,000 respectively. False value estimates that 6% of all sales will be returned. During 2009, customers returned merchandise for credit of $28,000 to their accounts. What is the balance in the allowance for sales returns account at the end of 2009?
Consider the following scenario: The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable research, a cross-country ski line has been developed. Because of the conservative nature of the company management, however, Minnetonka’s president has decided to introduce only one type of the new ski for this coming winter. If the product is a success, further expansion in future years will be initiated. The ski selected is a mass-market ski with a special binding. It will be sold to wholesalers for $80 per pair. Because of availability capacity, no additional fixed charges will be incurred to produce the skis. A $100,000 fixed charge will be absorbed by the skis, however, to allocate a fair share of the company’s present fixed costs to the new product. Using the estimated sales and production of 10,000 pairs of skis as the expected volume, the accounting department has developed the following cost per pair of skis and bindings: Direct Labor: $35 Direct Material: $30 Total Overhead: $15 Total: $80 Ski Pro has approached a subcontractor to discuss the possibility of purchasing the bindings. The purchase price of the bindings from the subcontractor would be $5.25 per binding, or $10.50 per pair. If the Ski Pro Corporation accepts the purchase proposal, it is predicted that direct-labor and variable-overhead costs would be reduced by 10% and direct-material costs would be reduced by 20%.
Messier Inc. manufacturers cycling equipment. The board decided to issue $3,000,000 of 11% term corporate bonds on March 1, 2010 with interest payable each March 1 and September 1, beginning September 1, 2010. At the time of issuance, the market interest rate for similar financial instruments is 10%. Which of the following is a correct piece of the journal entry on September 1, 2010?
Get college assignment help at uniessay writers Wicker Corporation operates a manufacturing plant in California. Due to a change in business climate, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant: Cost $58,500,000 Accumulated depreciation $26,400,000 Estimated of total cash inflows (not discounted) from selling products made in California. $30,000,000. The fair value of the California plant is estimated to be $24,000,000. Determine the amount of impairment loss, if any.
Alpha Manufacturing produces two types of entry doors, deluxe and standard. The assignment basis for support cost has been direct labor dollars. For 2008 Alpha compiled the following data for the two products: Deluxe Standard Sales units 50,000 400,000 Sales price per unit $650.00 $475.00 Direct material and labor cost per unit $180.00 $130.00 Manufacturing support cost per unit $30.00 $120.00 Last year Alpha Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an ABC analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC information for 2008. Activity cost Drive Cost Total Deluxe Standard setups of setups $500,000 500 400 100 Machine – related of machine hours $44,000,000 600,000 300,000 300,000 Packing of shipments $5,000,000 250,000 50,000 200,000 Required: a) Using the current system, what is the estimated, 1. Total cost of manufacturing one unit for each type of door? 2. Profit per unit for each type of door? b) Using the activity-based costing data presented above. 1. Compute the revised total cost to manufacture one unit of each type of entry door. 2. Compute the profit per unit for each type of door. c) Explain the pros and cons of activity based costing.
what has happened in recent industrial history to reduce the usefulness of direct labor as the primary basis for allocating overhead to products.
The following transactions occurred during 2011. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 A building that cost $112,000 in 1994 is torn down to make room for a new building. The wrecking contractor was paid $5,100 and was permitted to keep all materials salvaged. Mar. 10 Machinery that was purchased in 2004 for $16,000 is sold for $2,900 cash, f.o.b. purchaser’s plant. Freight of $300 is paid on the sale of this machinery. Mar. 20 A gear breaks on a machine that cost $9,000 in 2006. The gear is replaced at a cost of $3,000. The replacement does not extend the useful life of the machine. May 18 A special base installed for a machine in 2005 when the machine was purchased has to be replaced at a cost of $5,500 because of defective workmanship on the original base. The cost of the machinery was $14,200 in 2005. The cost of the base was $4,000, and this amount was charged to the Machinery account in 2005. June 23 One of the buildings is repainted at a cost of $6,900. It had not been painted since it was constructed in 2007
Music Equipment owned by the business: original purchase price was $54,000, estimated useful life was 8 years, and estimated residual value was $7,700 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.
6-10 The Village of Parry reported the following for its Print Shop Fund for the year ended April 30, 2009. VILLAGE OF PARRY—PRINT SHOP FUNDStatement of Revenues, Expenses, and Changes in Net Assets For the Year Ended April 30, 2009 Operating revenues: Â Â Â Charges for services Â $1,000,000 Operating expenses: Â Â Â Salaries and benefits $500,000 Â Â Depreciation 200,000 Â Â Supplies used 200,000 Â Â Utilities 70,000 970,000 Income from operations Â 30,000 Nonoperating income (expenses): Â Â Â Interest revenue 30,000 Â Â Interest expense (50,000) (20,000) Net income before transfers Â 10,000 Transfers in Â 180,000 Â Changes in net assets Â 190,000 Â Net assets—beginning Â 1,120,000 Â Net assets—ending Â $1,310,000 The Print Shop Fund records also revealed the following: 1. Contribution from Water Utility Fund for working capital needs Â $ 80,000 2. Contribution from General Fund for purchase of equipment Â 100,000 3. Loan from Water Utility Fund for purchase of equipment Â 300,000 4. Purchase of equipment Â (450,000) 5. Purchase of one-year investments Â (100,000) 6. Paid off a bank loan outstanding at May 1, 2008 Â $50,000 Â Paid interest Â $1,000 Â The loan was for short-term operating purposes. Â Â 7. Signed a capital lease on April 30, 2009 Â $42,180 The following balances were observed in current asset and current liability accounts. ( ) denote credit balances: Â 5/1/08 4/30/09 Cash $151,000 $233,000 Accrued interest receivable 5,000 10,000 Due from other funds 40,000 50,000 Accrued salaries and benefits (20,000) (30,000) Utility bills payable (4,000) (5,000) Accounts payable (30,000) (25,000) Accrued interest payable (5,000) (7,000) Prepare a Statement of Cash Flows for the Village of Parry Print Shop Fund for the Year Ended April 30, 2009. Include the reconciliation of operating income to net cash provided by operating activities.
The following information relates to Halloran Co.’s accounts receivable for 2009: Accounts receivable balance, 1/1/09 $ 840,000 Credit sales for 2009 3,300,000 Accounts receivable written off during 2009 70,000 Collections from customers during 2009 3,100,000 Allowance for uncollectible accounts balance, 12/31/2009 210,000 What amount should Halloran report for accounts receivable, before allowances, at December 31, 2009? A. $1,040,000. B. $ 970,000. C. $ 760,000. D. None of these.
What is the probability door number 3 contains a prize after to the host opening door number 5?
Jager Inc. holds 30% of the outstanding voting shares of Kinson Co. and appropriately applies the equity method of accounting. Amortization associated with this investment equals $11,000 per year. For 2008, Kinson reported earnings of $100,000 and paid cash dividends of $40,000. During 2008, Kinson acquired inventory for $62,400, which was then sold to Jager for $96,000. At the end of 2008, Jager still held some of this inventory at its transfer price of $50,000. Required: Determine the amount of Equity in Investee Income Jager should have reported for 2008. Show all of your work.
Glo-Brite Paint Co Chapter 7 workbook I am off by .24 on the net paid. I have 11122.81 and should be 11122.57 can you help me where I am wrong?
Company produces a single product. Last year, the company‘s net operating income under absorption costing was $4,400 lower than variable costing. The company sold 8,000 units during the year, and its variable costs were $8 per unit, of which $3 was variable selling expense. Fixed manufacturing overhead was $1 per unit in beginning inventory under absorption costing. How many units did the company produce during the year?
The post During 2010, Bleeker Corp. entered into the following transactions. 1. Borrowed appeared first on uniessay writers.