Get college assignment help at uniessay writers The Hamlet Company uses the periodic inventory system. Information for 2011 is as follows: Sales $2,650,000 Beginning inventory 680,000 Purchases 1,200,000 Purchase returns 12,000 Ending inventory 740,000 Hamlet’s cost of goods sold for 2011 is: a) $1,522,000. b) $1,188,000. c) $1,140,000. d) $1,128,000.
(Greenwood Corporation has paid 60 consecutive quarterly cash dividends (15 years). The last 6 months have been a real cash drain on the company, however, as profit margins have been greatly narrowed by increasing competition. With a cash balance sufficient to meet only day-to-day operating needs, the president, Gil Mailor, has decided that a stock dividend instead of a cash dividend should be declared. He tells Greenwood’s financial vice-president, Vicki Lemke, to issue a press release stating that the company is extending its consecutive dividend record with the issuance of a 5% stock dividend. “Write the press release convincing the stockholders that the stock dividend is just as good as a cash dividend,” he orders. “Just watch our stock rise when we announce the stock dividend; it must be a good thing if that happens.” Instructions (a) Who are the stakeholders in this situation? The stakeholders in this situation are (b) Is there anything unethical about president Mailor’s intentions or actions? (c) What is the effect of a stock dividend on a corporation’s stockholders’ equity accounts? Which would you rather receive as a stockholder—a cash dividend or a stock dividend? Why?
Fair Value Estimate)Killroy Company owns a trade name that was purchased in an acquisition of McClellan Company. The trade name has a book value of $3,500,000, but according to GAAP, it is assessed for impairment on an annual basis. To perform this impairment test, Killroy must estimate the fair value of the trade name. (You will learn more about intangible asset impairments in Chapter 12.) It has developed the following cash flow estimates related to the trade name based on internal information. Each cash flow estimate reflects Killroy’s estimate of annual cash flows over the next 11 years. The trade name is assumed to have no residual value after the 11 years. (Assume the cash flows occur at the end of each year.)
During Burns Company’s first year of operations, credit sales totaled $140,000 and collections on credit sales totaled $105,000. Burns estimates that bad debt losses will be 1.5% of credit sales. By year-end, Burns had written off $300 of specific accounts as uncollectible. Required: 1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. 2. Show the year-end balance sheet presentation for accounts receivable.
1. Purchased inventory costing $5,600 on account from Smoot Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $500 were paid in cash
San Jose Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On August 1 of the current year, the annual operating room overhead is estimated to be:
The following amounts relate to the Rachel’s Sales Company: Beginning Inventory $25,000 Net Cost of Purchases 85,000 Net Sales 90,000 Gross Profit 30,000 The amount of the ending inventory is: A) $80,000 B) $50,000 C) $60,000 D) $30,000
What is the reason for pooling costs?
Clancy Inc. issues $2,000,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 8%. What amount will Clancy receive when it issues the bonds? (Round the answer to zero decimal places, e.g. 1,250,250. Hint: Use tables in text.)
A project you are considering requires an initial cash outlay of $675,000 for equipment. You expect to spend an additional $45,000 in the first year to cover costs as the project will produce negligible cash inflows for that year. During years 2 through 6, you expect to receive cash inflows of $325,000 a year. What is the net present value of this project at a discount rate of 14 percent?
Get college assignment help at uniessay writers Iowa Development (ID) company made the following land sales and had the following cash collections: 2008: Sold Altoona land for $2,000,000 that cost ID $1,200,000. The land agreement required payments of $1,000,000 within one week of occupancy of the land, and the other $1,000,000 in 2009. ID received the $1,000,000 payment. 2009: Sold Boone land for $2,400,000 that cost ID $1,200,000. The land agreement required payments of $800,000 within one week of occupancy of the land and additional payments of $800,000 in 2010 and 2011. ID received the $800,000 payment, and also a $500,000 payment from Altoona land. 1. Assume ID can estimate uncollectible accounts accurately, accrues bad debts at 5% of sales, and recognizes revenue upon transfer of title. Required: Prepare journal entries to record the sale, cash collections, and recognition of gross profit (if appropriate) in 2008 and 2009. 2. Assume ID cannot estimate uncollectible accounts accurately and recognizes revenue using the installment method. Required: Prepare journal entries to record the sale, cash collections, and recognition of gross profit (if appropriate) in 2008 and 2009. 3. Assume ID cannot estimate uncollectible accounts accurately and recognizes revenue using the cost recovery method. Required: Prepare journal entries to record the sale, cash collections, and recognition of gross profit (if appropriate) in 2008 and 2009.
Oct. 1 Paid the premium on a one-year insurance policy, $1,200. Prepare adjusting entries using the following information in the General Journal below. Show your calculations! a) One month’s insurance has expired.
GAAP requires that some lease agreements be accounted for as purchases. The theoretical justification for this treatment is that a lease is of this type: . A. Complies with the concept of form over substance B. Reflects the relationship of cause and effect C. Satisfies the concept of historical cost D. Conveys most of the risks and benefits of property ownership .
Assignment: choose any disaster First of all, decide whether you want to risk manage (for purposes of doing your assignment). It could be a ‘whole organisation’ or ‘part of an organisation’. Make it clear at the beginning of your assignment what exactly you have chosen to risk manage. Your assignment is then as follows: Your usual insurer has just sent you a quote for next year’s insurance premium and you consider it to be too high. a) Explain the alternative risk management courses of action available to you, and b) Explain the thought processes and analysis that should be undertaken in order to choose between the alternative courses of action.
New Company acquired 75 percent of Old Company’s stock at underlying book value on January 1, 2009. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Old Company. Old Company reported shares outstanding of $350,000 and retained earnings of $100,000. During 2009, Old Company reported net income of $60,000 and paid dividends of $3,000. In 2010, Old Company reported net income of $90,000 and paid dividends of $15,000. The following transactions occurred between New Company and Old Company in 2009 and 2010: Old Co. sold computer equipment to New Co. for a $42,000 profit on December 26, 2009. The equipment had a five-year estimated economic life remaining at the time of intercompany transfer and is depreciated on a straight-line basis. New Co. sold land costing $90,000 to Old Company on June 28, 2010, for $110,000. Required: Give all eliminating entries needed to prepare a consolidation workpaper for 2010 assuming that New Co. uses the fully adjusted equity method to account for its investment in Old Company.
Reporting comprehensive income in the United States can be accomplished by which of the following methods: a. In the statement of shareholder’s equity. b. A combined statement of income and comprehensive income. c. A separate statement of comprehensive income. d. All of the above are acceptable methods.
Gunk Goblin sells vacuums and just launched a policy where customers have the right to return a vacuum during a three-year period following purchase. Gunk management has no experience under this sort of policy, and does not believe it can accurately estimate returns. What is the longest period of time that Gunk may have to wait before recognizing gross profit associated with one of these sales? a. No time delay, recognize gross profit upon delivery. b. Gunk should recognize gross profit as cash is recieved under the installment method. c. Gunk should defer gross until costs are recovered under the cost recovery method. d. Three years, after the right of return has expired.
This question has to do with computing the depreciation rate and composite life. Thank you for your help.
This question has to do with computing depreciation. Thank you for your help.
This question has to do with determining the asset turnover ratio, profit margin on sales, and rate of return on assets. Thank you very much for your help.
9. False Value Hardware began 2009 with a credit balance of $32,000 in the allowance for sales returns 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? (Points : 4) a $11,000. b $39,000. c $43,000. d $ 4,000. 10. False Value Hardware began 2009 with a credit balance of $32,000 in the allowance for sales returns 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. False Value’s 2009 income statement would report net sales of: (Points : 4) a $622,000. b $607,000. c $646,000. d $611,000. 11. A company uses the allowance method to account for bad debts. What is the effect on each of the following accounts of the collection of an account previously written off? (Points : 3) A. Allowance for Uncollectables – Increase Accounts Receivable – decrease B. Allowance for Uncollectables – no effect Accounts Receivable – decrease C. Allowance for Uncollectables – increase Accounts Receivable – no effect D. Allowance for Uncollectables – no effect Accounts Receivable – no effect 12. Collection of accounts receivable that previously have been written off results in an increase in cash and an increase in: (Points : 3) A Accounts receivable. B Allowance for uncollectible accounts. C Bad debts expense. D Retained earnings. 17. The balance in accounts receivable at the beginning of 2009 was $300. During 2009, $1,600 of credit sales were recorded. If the ending balance in accounts receivable was $250 and $100 in accounts receivable were written off during the year, the amount of cash collected from customers during 2009 was: (Points : 3) a $1,600. b $1,650. c $1,550. d $1,900. 24. Drebin Security Systems sold merchandise to a customer in exchange for a $50,000, 5-year, noninterest-bearing note when an equivalent loan would carry 10% interest. Drebin would record sales revenue on the date of sale equal to: (Points : 3) a $50,000. b Zero. c The future value of $50,000 using a 10% interest rate. d The present value of $50,000 using a 10% interest rate.
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