Get college assignment help at uniessay writers Schmitt Co. must make computations and adjusting entries fr the following independent situations dec 31, 2011. 1. Its line of amplifiers carries a 3-year warranty against defects. On the basis of past experience the estimated warranty costs related to dollar sales are; first yr after sale- 2% of sales; 2nd yr after sale- 3% of sales; and third yr after sale- 5% of sales. SAles and actual warranty expenditures for the first 3 years of business were Sales Warranty Expenditures 2009 $ 800,000 $6,500 2010 $1,100,000 $17,200 2011 $1,200,00 $62,00 Compute the amount that Schmitt COmpany should report as a liability in its December 31, 2011, balance sheet. Assume that all the sales are made evenly throughout the year with warranty expenses also evenly spaced relative to the rates above. 2. With some of its products, Schmitt Company includes coupons that are redeemable in merchandise. The coupons have no expiration date and in the company’s experience, 40% of them are redeemed. The liability for unredeemed coupons at Dec 31, 2010 was $9000. During 2011, coupons worth $30,000 were issued and merchandise worth $8,000 was distributed in exchange for coupons redeemed. Compute the amount of the liability that should appear on the December 31, 2011 balance sheet.
Corporate bonds issued by Johnson Corporation currently yield 8%. Municipal bonds of equal risk currently yield 6%. At what tax rate would an investor be indifferent between these two bonds
On January 10, 2007, Maxim Corporation acquired equipment for $124,000. The estimated life of the equipment is 3 years or 24,000 hours. The estimated residual value is $10,000. What is the depreciation for 2007, if Baldwin Corporation uses the asset 9,100 hours and uses the units-of-production method of depreciation? (Points: 5) $43,225 $47,017 $41,333 $38,000
Teletronics, Inc. issued a $5,000, 10-year Bond on 7/1/2008, when the Market Interest Rate was 6 1/2%. Assume that the accounting year of Teletroncis ends on December 31. Journalize the following transactions. a. Issuance of the Bond on 7/1/2008 b. Accrual of the Interest Expense on 12/31/2008 c. Payment of Interest on 1/1/2009 d. Payment of the Bond at Maturity
During 2011, Crawford Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Crawford for a lump sum of $64,000, because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below. Type No. of Chairs Estimated Selling Price Each Lounge chairs 400 $103.50 Armchairs 300 92.00 Straight chairs 800 57.50 During 2011, Crawford sells 200 lounge chairs, 100 armchairs, and 120 straight chairs. What is the amount of gross profit realized during 2011? What is the amount of inventory of unsold straight chairs on December 31, 2011? (When computing costs to determine net income, do not round the percentages for relative sales price. Round calculations for cost per chair to 2 decimal places, e.g. 2.25 and use this rounded amount for future calculations. Round final answers to 0 decimal places, e.g. 12,510.) Gross profit realized in 2011 $ Amount of inventory of unsold straight chairs $
Purchase Commitments) Prater Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2011, at an agreed price of $516,000. Under the long-term purchase commitment, all supplies are planned after December 31, 2011. At December 31, 2011, the raw material had declined in price to $470,850. What entry would you make on December 31, 2011, to recognize these facts? Description/Account Debit Credit Accounts payableRaw materialsUnrealized holding gain or loss-Income(Purchase commitments)Estimated liability on purchase commitments Estimated liability on purchase commitmentsUnrealized holding gain or loss-Income(Purchase commitments)Raw materialsAccounts payable
(Retail Inventory Method) The records of Mandy’s Boutique report the following data for the month of April. Sales $110,200 Purchases (at cost) $63,800 Sales returns 2,320 Purchases (at sales price) 102,080 Markups 11,600 Purchase returns (at cost) 2,320 Markup cancellations 1,740 Purchase returns (at sales price) 3,480 Markdowns 10,788 Beginning inventory (at cost) 34,800 Markdown cancellations 3,248 Beginning inventory (at sales price) 53,940 Freight on purchases 2,784 Compute the ending inventory by the conventional retail inventory method. (Round answer to 0 decimal places, e.g. 12,510.) Inventory $
Gorham Manufacturing’s sales slumped badly
Dear Mike I. I have a homework half way done. And I am stuck. I need your help. I do not want a free answer.I want to pay for your tutoring response. Please provide me with the appropiate response requested in this homework. This is my final. Questions: 1-Explain the process by which you completed the final statements. 2-Offer your opinion and analysis of the data in answer to the question: “What is the financial health of Lee College?” Attached are the Financial Statements of NPO of Lee College. Please help me here.
A bank reconciliation should be prepared… A. when an employee is suspected of fraud. B. by the person who is authorized to sign checks. C. whenever the bank refuses to lend the company money. D. to explain any difference between the depositor’s balance per books with the balance per bank. Thank you!!
Get college assignment help at uniessay writers If cash is restricted as to its use and will be used within the next year, then it should be: A. reported as a current asset separate from Cash and Cash Equivalents on the balance sheet. B. included in the Cash and Cash Equivalents line on the balance sheet. C. reported as a current liability on the balance sheet. D. reported as a noncurrent asset on the balance sheet. Thank you!!
Warehouse equiptment used to store supplies for delivery to all city departments and agencies on a cost reimbursement basis =350000 Equiptment used for supplying electric power to residents 2100000 Receivables for completed sidewalks to be paid for in installments by affected property owners. Construction was financed by special assessment bonds for which the town has no liability 1760000 Cash received from federeal government dedicated to highway maintenance that must be accounted for in a seperate fund 1640000 What amount should be accounted for in an internal service fund? A. $ 350,000. B. $2,100,000. C. $1,760,000. D. $1,640,000. What amount should be accounted for in an enterprise fund? A. $ 350,000. B. $2,100,000. C. $1,760,000. D. $1,640,000.
To establish a new internal service fund with a transfer of funds (not to be repaid), which account would be credited in the internal service fund? A. Cash. B. Interfund Transfer In. C. Interfund Transfer Out. D. Estimated Revenues.
What is the probability door number 3 contains a prize after to the host opening door number 5?
Company purchased a new machine on September 1, 2010, at a cost of $95,640. The company estimated that the machine has a salvage value of $8,280. The machine is expected to be used for 72,000 working hours during its 8-year life. Compute the depreciation expense under the straight-line method for 2010 and 2011, assuming a December 31 year-end.
4. (TCO B) Adjusting Entries: Accumulated depreciation-equipment at 1/1/10 was $230,000. At 12/31/10 the balance of the account was $380,000. During 2010, one piece of equipment was sold. The equipment had an original cost of $40,000 and was 3/4 depreciated when sold. You are to prepare the missing adjusting entry. For each journal entry write Dr for debit and Cr for credit. (Points: 10)
Adjusting Entries: Data relating to the balances of various accounts affected by adjusting or closing entries appear below. (The entries which caused the changes in the balances are not given.) You are asked to supply the missing journal entries which would logically account for the changes in the account balances. Interest receivable at 1/1/10 was $5,000. During 2010 cash received from debtors for interest on outstanding notes receivable amounted to $5,000. The 2010 income statement showed interest revenue in the amount of $4,900. You are to provide the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr for debit and Cr for credit. (Points: 10)
Please find attched document for a problem On January 1, 2009, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending inventory to base year. Inventory on January 1 was $200,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Required: Compute inventory amounts at the end of each year.
Is a gift to a foreman by a worker considered business related and therefore subject to the $25 limit?
10.2 Computing Regular Earnings, Overtime Earnings and Gross Pay During one week four production employees of Mason Manufacturing Company worked the hours shown below. All these employees receive overtime pay at one and one-half times their regular hourly rate for any hours worked beyond 40 hours in a week. Determine the regular earnings, overtime earnings and gross earnings for each employee. Employee No. Hourly Rate Hours Worked 1 $9.75 44 2 9.50 48 3 9.25 33 4 8.90 45 10.3 Determining Social Security Withholding The monthly salaries for December and the year-to-date earnings of the employees of Carter Consulting Company as of November 30 follow. Determine the amount of social security tax to be withheld from each employee’s gross pay for December. Assume a 6.2% social security tax rate and an earnings base of $90,000 for the calendar year. Employee No. December Salary Year-to-Date Earnings through November 30 1 $9200 $87,900 2 $8750 $83,450 3 $8975 $90,100 4 $6650 $67,500 10.4 Determining Deduction for Medicare Tax Using the earnings data given in Exercise 10.3, determine the amount of Medicare tax to be withheld from each employee’s gross pay for December. Assume a 1.45% Medicare tax rate and that all salaries and wages are subject to the tax. 10.5 Determining Federal Income Tax Withholding Data about the marital status, withholding allowances, and weekly salaries of the four office workers at Amos Publishing Company follow. Use the tax tables in Figure 10.2 on pages 350-351 to find the amount of federal income tax to be deducted from each employee’s gross pay. Employee No. Marital Withholding Weekly Status Allowances Salary 1 M 1 $650 2 S 2 595 3 M 3 735 4 S 2 590
(TCO1) The two types of accounting are:____ and _____ (Points: 5) profit and nonprofit. financial and managerial. internal and external. bookkeeping and decision-oriented. 2. (TCO2) A company purchased inventory on account. This transaction increased assets and: (Points: 5) increased equity increased liabilities increased revenues decreased assets 3. (TCO1) Which of the following statements is FALSE? (Points: 5) reliable data may be supported by objective evidence. the informed opinion of owners is an important source of objective evidence. an independent appraisal, conducted by a licensed professional, is usually considered reliable. reliable data are verifiable. 4. (TCO2) A company purchased office supplies for cash. This transaction ______________________. (Points: 5) increased assets and decreased assets. increased assest and increased liabilities. increased assets and increased revenues. decreased assets and decreased liabilities. 5. (TCO2) Which type of account is increased when a company records a debt? (Points: 5) expense retained earnings liability none of the above are correct. 6. (TCO2) A trial balance has which of the following features? (Points: 5) totals for balance sheet accounts only totals for income statement accounts only totals for all accounts listed in the general ledger both A and B are correct 7. (TCO3) A company started the year with $400 of supplies. During the year the company purchased additional supplies costing $1,600. There were $800 of supplies on hand at the end of the year. An adjusted trial balance prepared at the end of the accounting period will show the which of the following balance in Supplies: (Points: 5) $1,400. $800. $600. $0. 8. (TCO3) The book value of an asset is computed as: (Points: 5) the cost of a plant asset less accumulated depreciation. the cost of a plant asset plus accumulated depreciation. depreciation expense plus accumulated depreciation. the cost of a plant asset less depreciation expense. 9. (TCO5) Differences between the amount of cash reported on a company’s bank statement and the balance in the company’s Cash account before the bank reconciliation are primarily due to: (Points: 5) errors in the accounting process by the company. errors made by the bank. differences between the cash basis and accrual basis of accounting. timing difference in recording transactions. 10. (TCO5) Under the allowance method, the entry to reinstate an account previously written off: (Points: 5) increases total assets. increases net income and increases total assets. decreases net income and increases total assets. has no effect on net income or total assets. 11. (TCO5) Portia Incorporated uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,000,000, and management estimates 2% will be uncollectible. Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $1,900. The amount of expense reported on the income statement and the balance in Allowance for Uncollectible accounts, respectively, will be: (Points: 5) $41,900 and $40,000. $40,000 and $38,100. $38,100 and 40,000. $40,000 and $41,900. 12. (TCO5) If the Maturity Value of a 210 day note is $63,500 and the interest is $3,500, based on 10%, what is the principal of this note? (Points: 5) $ 3,500 $ 6,000 $63,500 $60,000 13. (TCO4) Deciding on which inventory method a company should use affects: (Points: 5) the profits to be reported. the income taxes to be paid. the values of ratios reported from the balance sheet. all of the above. 14. (TCO4) A company whose inventory consists of very unique items would probably use which inventory method? (Points: 5) first-in, first-out last-in, first-out specific unit cost weighted-average of only the unique items Time Remaining: 1. (TCO4) Which inventory method produces the highest net income in a time of rising costs? (Points: 5) FIFO. Average Cost. LIFO. KIFO. 2. (TCO6) All expenditures to repair and renovate an existing building for its intended use are charged to: (Points: 5) land. land improvements. land improvements expense. building. 3. (TCO6) Which of the following statements is false? (Points: 5) depreciation is a process of subjective valuation. depreciation is a non-cash expense. accumulated depreciation represents a growing amount of cash to be used to replace the existing asset. accumulated depreciation is that portion of a plant asset’s cost that has been recorded previously as an expense. 4. (TCO6) On January 10, 2006, Maxim Corporation acquired equipment for $124,000. The estimated life of the equipment is 3 years or 24,000 hours. The estimated residual value is $10,000. What is the balance of Accumulated Depreciation on December 31, 2007, if Baldwin Corporation uses the asset 5,500 hours in 2006 and 4,500 hours in 2007? (Points: 5) $76,000 $61,218 $52,083 $47,500 5. (TCO6) Valtrex Inc. sells a major plant asset. (Points: 5) depreciation expense should be recorded through the date of sale. the book value of the asset should be credited to the asset account. no gain should be recognized if depreciation expense was taken on the asset before the asset was sold. a loss should be recognized, but not a gain, if depreciation expense was taken on the asset before the asset was sold. 6. (TCO6) Current liabilities fall into two categories which are referred to as: (Points: 5) liabilities of a known amount and estimated liabilities. contingent liabilities and noncontingent liabilities. contingent liabilities and contra-liabilities. unearned liabilities and accrued liabilities. 7. (TCO7) In a corporation, the two-basic sources of stockholders’ equity are: (Points: 5) donated capital and contributed capital. par value and no-par value stock. preferred stock and common stock. paid-in capital and retained earnings. 8. (TCO7) When 100 shares of $10 par value Common Stock are sold at $53 per share, Paid-in Capital in Excess of Par value–Common will: (Points: 5) increase $1,000. increase $4,300. increase $5,300. not be affected. 9. (TCO7) The number of shares of treasury stock plus the number of shares outstanding equals the number of shares: (Points: 5) authorized that have not been issued. authorized. issued. issued that have not been reacquired by the company. 10. (TCO2) Consider the following transactions: I. Owners invested $8,000 cash to begin the business II. Provided services for cash, $6,000 III. Provided services on account, $4,000 IV. Paid cash for expenses, $7,500 How much cash does the business have? (Points: 5) $2,500 $4,500 $6,500 $10,500 ) Your friend, Jacob, has opened a movie theater. Jacob states that he does not have time to develop and implement a system of internal controls. a. Provide Jacob with the objectives of a system of internal control. b. Explain to Jacob why he should develop a system of internal control. (Points: 10) 2. (TCO6) Credit Company incurred the following costs in acquiring plant assets: • purchased land for a $50,000 down payment and signed a $100,000 note payable for the balance • delinquent property tax of $2,500 and legal fees of $1,500 • $5,000 to remove an unwanted building • architect fee of $2,000 for the design of a building • constructed an office building at a cost of $500,000 • interest cost on construction loan for the building, $20,000 • $7,500 for fencing, $4,000 for landscaping, and $5,000 for lighting Determine the cost of the land, land improvements, and building. (Points: 20) 3. (TCO2) List the steps in the Accounting Cycle. (Points: 20) 1. (TCO6) Block Company issued a $20,000, 10-year Bond on 7/1/2008, when the Market Interest Rate was 6.5%. Assume that the accounting year of Block Company ends on December 31. Journalize the following transactions. a. Issuance of the Bond on 7/1/2008 b. Accrual of the Interest Expense on 12/31/2008 c. Payment of Interest on 1/1/2009 d. Payment of the Bond at Maturity (Points: 20) 2. (TCO7) The Cosmo Company was started by issuing 800 shares of $10 par value stock at an average market price of $20 per share. The company repurchased 100 shares at a market price of $15 per share. The company later sold 50 shares at a market price of $25 per share. At the end of the first year of operations the company has $2,600 of retained earnings in addition to its contributed capital. Prepare the equity section of the balance sheet for Cosmo Company. (Points: 20) 3. (TCO1) The following information has been obtained from the accounting records of Sandy Shores Enterprises. Prepare the operating section of the statement of cash flows for Sandy Shores Enterprises for the year ended December 31, 2007, using the indirect method. Principal payments on long-term debt $50,000 Increase in accounts payable 24,300 Acquisition of equipment by issuing long-term note payable 70,000 Amortization expense 18,700 Proceeds from sale of investments, not including a $5,100 gain 49,100 Increase in accounts receivable 8,700 Cash payments to purchase plant assets 62,000 Decrease in accrued liabilities 60,300 Payment of cash dividends 64,500 Proceeds from sale of plant assets, not including a $7,400 loss 22,600 Net income 174,100 Depreciation expense 35,500 Proceeds from issuance of common stock 300,000 Increase in inventory 71,400 Bonds payable converted into common stock 130,000 Decrease in prepaid expenses 12,800 Cash balance: December 31, 2006 52,500 Cash balance: December 31, 2007 373,000 (Points: 20) 4. (TCO 1) The income statement for the OverUnder Company for the year ended December 31, 2007, appears below. Sales 670,000 Costs of goods sold 390,000 Gross profit 280,000 Expenses 180,000* Net income $100,000 *Includes $25,000 of interest expense and $20,000 of income tax expense. Additional information: a. Common stock outstanding on January 1, 2007, was 50,000 shares. On July 1, 2007, 10,000 more shares were issued. b. The market price of OverUnder’s stock was $18 at the end of 2007. c. Cash dividends of $35,000 were paid, $5,000 of which were paid to preferred stockholders. Part 1: Compute the following ratios for 2007 (show your work): a. Earnings per share. b. Price-earnings. c. Times interest earned. Part 2: Please explain the meaning of these ratios and the results you have calculated. (Points: 20)
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