On June 30, 2012, Oriole Company issued 12% bonds with a par value of $770,000 due in 20 years. They were issued at 98 and were callable at 103 at any date after June 30, 2020. Because of lower interest rates and a significant change in the company’s credit rating, it was decided to call the entire issue on June 30, 2021, and to issue new bonds. New 10% bonds were sold in the amount of $1,000,000 at 102; they mature in 20 years. Oriole Company uses straight-line amortization. Interest payment dates are December 31 and June 30.Instructions:
a. Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2021.
b. Prepare the entry required on December 31, 2021, to record the payment of the first 6 months' interest and the amortization of premium on the bonds.

Answers

Answer 1

Answer:

A. OLD BOND REDEMPTION :

June 30, 2021

Dr 12% Bonds payable 770,000

Dr Loss on retirement of bonds 31,570

Cr Cash 793,100

Cr Discount on bonds 8,470

NEW BOND ISSUE:

June 30, 2021

Dr Cash 1,020,000

Cr 10% Bonds payable 1,000,000

Cr Premium on bonds 20,000

B. Dec 31, 2021

Dr Interest expense 49,500

Dr Premium on bonds payable 500

Cr Cash 50,000

Explanation:

a. Preparation of the journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2021.

OLD BOND REDEMPTION :

June 30, 2021

Dr 12% Bonds payable 770,000

Dr Loss on retirement of bonds 31,570

Cr Cash 793,100

(103*770,000)

Cr Discount on bonds 8,470

(To record redemption of old bonds)

NEW BOND ISSUE:

June 30, 2021

Dr Cash 1,020,000

(1,000,000 * 102/100)

Cr 10% Bonds payable 1,000,000

(1,000,000 * 100/100)

Cr Premium on bonds 20,000

(1,000,000 * 2/100)

(To record issue of new bonds at premium)

CALCULATION for unamortized discount :

Discount at the time of issue 15,400

(2%*770,000)

Less: Discount amortised till june 30, 2021 (15,400 / 40 * 18) (6,930)

Unamortized discount 8,470

We made use of 18 because the interest was been given twice in a year which is December 31 and June 30

CALCULATION for loss on redemption :

Redemption of bonds 793,100

(103*770,000)

Less: Carrying value (761,530)

(770,000 - 8,470)

Loss on redemption 31,570

b. Preparation of the entry required on December 31, 2021, to record the payment of the first 6 months' interest and the amortization of premium on the bonds.

Dec 31, 2021

Dr Interest expense 49,500

(50,000-500)

Dr Premium on bonds payable 500

(20,000 / 40)

Cr Cash 50,000

(1,000,000 * 10% * 6/12)

(To record the interest expense for 6 months)

Answer 2

answer:

Credit Card Interest Charges January-June 2012

The bank that issues Card X

✔ exceeded

the legal interest rate for five of the six months.

Because of this, the bank that issues Card X is likely to be investigated by the

✔ CFPB

.


Related Questions

During 2009, Raines Umbrella Corp. had sales of $746,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $578,000, $103,000, and $130,000, respectively. In addition, the company had an interest expense of $97,000 and a tax rate of 40 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $18,000 in cash dividends, spending on net fixed assets and net working capital was zero, and no new stock was issued during the year.What is the firm’s:______.
1- Cash Flow from Assets?
2- Cash Flow to Shareholders?
3- Cash Flow to Creditors?
4- Net new Long-term Debt?

Answers

Answer:

1 $65,000

2 $18,000

3 $47,000

4 $50,000

Explanation:

1. Cash flow from Assets = $65,000

2. Cash flow to Shareholders = Dividend = $18,000

3. Cash flow to Creditors = $47,000

4. Net new long term debt = $50,000

Please find attached explanations to the answers above.

Suppose you’re evaluating three alternative MMMF investments. The first fund buys a diversified portfolio of municipal securities from across the country and yields 3.95 percent. The second fund buys only taxable, short-term commercial paper and yields 5.7 percent. The third fund specializes in the municipal debt from the state of New Jersey and yields 3.6 percent. If you are a New Jersey resident, your federal tax bracket is 35 percent, and your state tax bracket is 8 percent.1. Calculate the aftertax yield for each of the alternatives. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Aftertax Yield Municipal fund 3.95 % Taxable fund 3.31 % New Jersey municipal fund %2. Which of these three MMMFs offers you the highest aftertax yield?a. New Jersey Fundb. Municipal Fundc. Taxable Fund

Answers

Answer:

1) After tax yield for each alternative will be calculated as;

Municipal Fund after-tax yield = 0.0395*(1-0.08)

Municipal Fund after-tax yield = 0.0395*0.92

Municipal Fund after-tax yield =  0.03634

Municipal Fund after-tax yield = 3.63

Taxable Fund after-tax yield = 0.057(1 - 0.35 -0.08)

Taxable Fund after-tax yield = 0.057*0.57

Taxable Fund after-tax yield = 0.03249

Taxable Fund after-tax yield = 3.25

New jersey municipal fund after-tax yield =

2) Municipal fund offers the highest after-tax yield out of these three MMMF's

it is the list of material or ingredients for a project​

Answers

Explanation:

okay thankyou and that was very helpful (please mark me brainliest)

The following incorrect income statement was prepared by the accountant of the Axel Corporation:
AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains:
Sales revenue $ 592,000
Interest revenue 32,000
Gain on sale of investments 86,000
Total revenues and gains 710,000
Expenses and losses:
Cost of goods sold $ 325,000
Selling expense 67,000
Administrative expense 87,000
Interest expense 16,000
Restructuring costs 55,000
Income tax expense 40,000
Total expenses and losses 590,000
Net Income $ 120,000
Earnings per share $ 1.20
Required: Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)

Answers

Answer:

AXEL CORPORATION

Income Statement

For the Year Ended December 31, 2021:

Sales revenue                              $ 592,000

Cost of goods sold                         (325,000 )

Gross profit                                  $ 267,000

Operating Expenses:

Selling expense              67,000

Administrative expense 87,000     (154,000)

Operating Profit                             $113,000

Interest revenue                               32,000

Gain on sale of investments            86,000

Profit before Interest expense    $231,000

Interest expense                             (16,000)

Restructuring costs                        (55,000)

Profit before tax                           $160,000

Income tax expense                      (40,000 )

Net Income                                 $ 120,000

Earnings per share                          $ 1.20

Explanation:

a) Data and Calculations:

AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains:

Sales revenue $ 592,000

Interest revenue 32,000

Gain on sale of investments 86,000

Total revenues and gains 710,000

Expenses and losses:

Cost of goods sold $ 325,000

Selling expense 67,000

Administrative expense 87,000

Interest expense 16,000

Restructuring costs 55,000

Income tax expense 40,000

Total expenses and losses 590,000

Net Income $ 120,000

Earnings per share $ 1.20

b) Axel Corporation's Income Statement is a financial statement that shows the profitability of the corporation.  It reveals how the corporation is able to convert the costs it incurred in the business into profitability for the stockholders.  It is one of the key financial statements, whose result (called the bottom-line or net income or loss) is carried forward to the next accounting period.

Prepare the adjusting journal entries for the following transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1. Supplies for office use were purchased during the year for $500, of which $100 remained on hand (unused) at year-end.
2. Interest of $250 on a note receivable was earned at year-end, although collection of the interest is not due until the following year.
3. At year-end, salaries and wages payable of $3,600 had not been recorded or paid.
4. At year-end, one-half of a $2,000 advertising project had been completed for a client, but nothing had been billed or collected.
5. Redeemed a gift card for $600 of services.

Answers

Answer:

S/N      Account Titles and Explanation         Debit     Credit

a.         Supplies Expenses                                $400

                  Supplies                                                         $400

            (To record the adjusting entry for supplies on hand)

b.          Interest receivable                                 $250

                    Interest income                                             $250

             (To record the adjusting entry for interest income)

c.          Wages expenses                                    $3,600

                   Wages payable                                               $3,600

            (To record the adjusting entry for wage payable)

d.          Accounting revenue                                 $1,000

             ($2,000 * 1/2)

                    Advertising revenue                                         $1,000

             (To record the service of service revenue)

e.           Unearned revenue                                    $600

                     Service revenue                                                $600

               (To record the entry of service revenue)

This information relates to Sheffield Real Estate Agency.

Oct. 1 Stockholders invest $33,860 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $31,320.
3 Buys office furniture for $3,850, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,620 (not paid by Roads at this time).
10 Receives cash of $220 as commission for acting as rental agent renting an apartment.
27 Pays $790 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $2,610 in salary for October.

Required:
Prepare the debit-credit analysis for each transaction.

Answers

Answer:

cash 33,860 debit (+assests)

 common stock 33,860 credit (+equity)

---

no entry required

--

furniture 3,850 debit (+assets)

  account payable 3,850 credit (+liabilities)

---

accounts receivables 10,620 debit (+assets)

     commissions revenues    10,620 credit (+revenue / +equity)

---

cash        220 debit (+assets)

   commissions revenues    220 credit (+revenue / +equity)

---

Accounts Payable 790 debit (- liaiblities)

            cash                 790 credit (- assets)

---

Salaries expense 2,610 debit (+ expense / - equity)

           cash               2,610 credit (-assets)

Explanation:

We do the journal entries following the accounting rules

debit = credit

and we usethe accoutnign equation analysis

Assets   +   Expenses =  Liablities +  Equity  +   Revenues

DEBIT            CREDIT              DEBIT            CREDIT

+ + +              - - -                      - - -               + + +

The left side increase from debit and decrease from credit

while the element of the right side increase through credit and decrease by debit

Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 43,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $540,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Harris’s actual manufacturing overhead cost for the year was $787,704 and its actual total direct labor was 43,500 hours.

Required:
Compute the company’s plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.)

Answers

Answer:

$16.56 per direct labor hour.

Explanation:

Plant wide predetermined overhead rate for the year

= Total estimated overhead cost ÷ Total estimated allocation base

= $712,000 / 43,000 direct labor hour

= $16.56 per direct labor hour.

Note : Total estimated overhead cost

Fixed manufacturing overhead $540,000

Add: Variable manufacturing overhead ($4 × 43,000 hour) $172,000

Total estimated manufacturing cost $712,000

Predictive analytics in business is an important application of multiple regression analysis. Generally speaking, what is meant by predictive analytics

Answers

Answer:

Predictive analytics is a branch of statistics that is used to predict unknown events in the future

Explanation:

Predictive analytics uses various tools such as data mining, predictive modelling, and machine learning for the purpose of analysing historical data to predict future outcomes.

Businesses use this method to predict rail and opportunities based on previous transactional data.

It eventually provides predictive score or probability that can be used in credit risk, marketing, healthcare, and fraud detection

Techuxia Corporation worked on four jobs during October: Job A256, Job A257, Job A258, and Job A260. At the end of October, the job cost sheets for these jobs contained the following data:
Job A256 Job A257 Job A258 Job A260
Beginning balance $920 $640 $0 $0
Charged to the jobs during October:
Direct materials $2,750 $4,020 $1,550 $3,750
Direct labor $1,150 $930 $650 $460
Manufacturing overhead
applied $4,420 $1,760 $2,345 $400
Units completed 210 0 101 0
Units in process at the
end of October 0 310 0 253
Units sold during October 155 0 52 0
Jobs A256 and A258 were completed during October. The other two jobs had not yet been completed at the end of October. There was no finished goods inventory on October 1. In October, overhead was overapplied by $1,380. The company adjusts its cost of goods sold every month for the amount of the underapplied or overapplied overhead.
Required:
1. Using the direct method, what is the cost of goods sold for October?
2. What is the total value of the finished goods inventory at the end of October?
3. What is the total value of the work in process inventory at the end of October?

Answers

Answer:

1 $10,540

2 $4,625

3 $11,960

Explanation:

1. Cost of goods sold for October is $10,540

2. Total value of finished goods inventory for October is $4,625

3. Total value of work in process inventory at the end of October is $11,960

Please find attached explanations to the above answers.

A company is considering constructing a plant to manufacture a proposed new product. The land costs ​$​, the building costs ​$​, the equipment costs ​$​, and ​$ additional working capital is required. It is expected that the product will result in sales of ​$ per year for ​years, at which time the land can be sold for ​$​, the building for ​$​, and the equipment for ​$. All of the working capital would be recovered at the EOY . The annual expenses for​ labor, materials, and all other items are estimated to total ​$. If the company requires a MARR of ​% per year on projects of comparable​ risk, determine if it should invest in the new product line. Use the AW method.
a) The AW is $.........
b) According to the AW decision rule the investment in the new product line .. (is not/is) economically justified.

Answers

Complete question :

A company is considering constructing a plant to manufacture a proposed new product. The land costs $350,000, the building costs $600,000, the equipment costs $250,000, and $150,000 additional working capital is required. It is expected that the product will result in sales of $900,000 per year for 10 years, at which time the land can be sold for $450,000, the building for $400,000, and the equipment for $50,000. All of the working capital would be recovered at the EOY 10. The annual expenses for labor, materials, and all other items are estimated to total $500,000. If the company requires a MARR of 15% per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method.

Answer: $182,800

Explanation:

Given the following :

land costs = $350,000

building costs = $600,000

equipment costs = $250,000

additional working capital = $150,000

Expected sales per year for 10 years = $900,000

Salvage value After (10years):

Cost of land = $450,000

Building = $400,000

Equipment = $50,000

All working capital will be recovered at end of year, Hence, working capital will be $150,000

Annual expenses = $500,000

MARR = 15% per annum

Total amount invested = $(350,000 + 600,000 + 250,000 + 150,000) = $1,350,000

Expected sales per Annum = annual revenue = $900,000

Expenditure per year = $500,000

Net income = Revenue - Expenditure

Net income = $900,000 - $500,000 = $400,000

Worth or valuation of investment after 10 years :

($450,000 + $50,000 + $400,000 + $150,000)

= $1,050,000

Hence,

Capital recovery factor : (A/P, 15%, 10) = 0.199

Sinking fund table : (A/F, 15%, 10) =0.049

NET ANNUAL WORTH :

-Initial investment(A/P, 15%, 10) + annual net income + salvage value(A/F, 15%,10)

= - 1,350,000(0.199) + 400,000 + 1,050,000(0.049)

= $182,800

The investment is economically justified as the net annual worth yields a positive value.

The following balance sheet for the Hubbard Corporation was prepared by the company:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2016
Assets
Buildings $ 760,000
Land 280,000
Cash 70,000
Accounts receivable (net) 140,000
Inventories 260,000
Machinery 290,000
Patent (net) 110,000
Investment in marketable equity securities 80,000
Total assets $ 1,990,000
Liabilities and Shareholders' Equity
Accounts payable $ 225,000
Accumulated depreciation 265,000
Notes payable 520,000
Appreciation of inventories 90,000
Common stock, authorized and issued
110,000 shares of no par stock 440,000
Retained earnings 450,000
Total liabilities and shareholders' equity $ 1,990,000
Additional information:
1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $51,000 but, due to a significant increase in market value, is listed at $122,000. The increase in the land account was credited to retained earnings.
2. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $21,000 of which will be sold in the coming year.
3. The remainder will be held indefinitely.Notes payable are all long term. However, a $110,000 note requires an installment payment of $27,500 due in the coming year.
4. Inventory is recorded at current resale value. The original cost of the inventory is $161,000.
Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)

Answers

Answer:

Corrected Classified:

HUBBARD CORPORATION

Balance Sheet

At December 31, 2016

Assets

Current Assets:

Cash                                         70,000

Accounts receivable (net)      140,000

Inventories                              170,000

Investment in marketable

equity securities                     21,000

Total current assets                                                $401,000

Land                                                       280,000

Buildings                               760,000

Accumulated depreciation -265,000   495,000

Machinery                                             290,000

Patent (net)                                             110,000

Investment in marketable

equity securities                                   59,000

Total long-term assets                                        $1,234,000

Total assets                                                        $ 1,635,000

Liabilities and Shareholders' Equity :

Current liabilities:

Accounts payable            $ 225,000

Short-term Notes payable    27,500

Total current liabilities                                         $252,500

Long-term liabilities:

Notes payable                                                      $492,500

Total liabilities                                                       $745,000

Equity:

Common stock, authorized and issued

110,000 shares of no par stock 440,000

Retained earnings                     379,000

Other comprehensive income    71,000             $890,000

Total liabilities and shareholders' equity        $ 1,635,000

Explanation:

HUBBARD CORPORATION

Balance Sheet

At December 31, 2016

Assets

Buildings                            $ 760,000

Land                                      280,000

Cash                                        70,000

Accounts receivable (net)     140,000

Inventories                           260,000

Machinery                            290,000

Patent (net)                            110,000

Investment in marketable

equity securities                   80,000

Total assets                   $ 1,990,000

Liabilities and Shareholders' Equity

Accounts payable            $ 225,000

Accumulated depreciation 265,000

Notes payable                     520,000

Appreciation of inventories 90,000

Common stock, authorized and issued

110,000 shares of no par stock 440,000

Retained earnings                     450,000

Total liabilities and shareholders' equity $ 1,990,000

1. Retained Earnings     450,000

  Fair Value Gain: Land  (71,000)

Balance                         379,000

Other comprehensive income:

Fair Value Gain of Land   71,000

3. Short-term Investment 21,000

   Long-term Investment 59,000

4. Notes payable                520,000

Short-term Notes payable  (27,500)

Long-term Notes payable 492,500

5. Inventory                            260,000

Appreciation of inventories (90,000 )

Inventory value                      170,000

This activity is important marketing managers need to understand how buy-classes affect organizational buying behavior. Organizations face three different types of buying situations called buy-class situations; new buy, straight rebuy, and modified rebuys. The type of buy-class affects the way buying centers make purchase decisions.
The goal of this exercise is to demonstrate your understanding of the three different types of buy-classes.
Hover over the product name to reveal the hint. Then match the product with the correct buy-class situation
Legal pads and pens
Service trucks
Shipping crane
Solar panels
Copier paper
Record-keeping software
Buy-Class Situation New Buy Straight Rebuy Modified Rebuy

Answers

Question attached

Answer and Explanation:

New buy: solar panels, shipping cranes

Straight rebuy: legal pads and pens, copier paper

Modified rebuy : service trucks, record keeping software

New buy is typical of buyers who are buying a product for the first time and have no previous experience about it and therefore need to research and make proper buying decision

Straight rebuy: this class buy these products regularly and so do not need to make a critical decision.

modified rebuy: this buy class only need that the product be modified albeit the same product but with slightly different specifications. They have some experience as they have previously purchased the product. Example a company ordering for new logos and business cards.

Different products belong to different economical classes.

Different products and economical classes

New buy                 Straight Re-buy            Modified Re-buy

Solar panels         Legal pads and pan      Service trucks

Shipping crane        Copier paper             Record-keeping software

Buyers in the new buy class have never purchased a product before. Because the customer is making their first purchase, they must be included in the decision-making process.

Buyers in the straight-buy category buy the product on a regular basis. As a result, less input is required.

Modified rebuy: Buyer has some product purchase experience.

Find out more information about 'Buyers'.

https://brainly.com/question/8394668?referrer=searchResults

Christopher likes cupcakes (C) and muffins (M). His preferences can be represented by the utility function U(C, M) = C0.5M0.5. He received a gift basket with 16 cupcakes and 4 muffins, but when he was about to eat them, he found out his younger brother Dan had eaten 14 cupcakes and 2 muffins. Christopher made Dan buy what he'd eaten back. However, the bakery was out of muffins and Dan only bought cupcakes. How many cupcakes did Dan buy if, in addition to what he had not eaten from the basket, the new cupcakes provide Christopher with the same level of utility as the original gift basket?

Answers

Answer:

16 cupcakes

Explanation:

U(C, M) = C⁰°⁵ x M⁰°⁵ = √C x √M

total utility obtained by eating 16 cupcakes and 4 muffins = √16 x √4 = 4 + 2 = 6

since the bakery is out of muffins, then utility function = √C x √2 = √C x 1.4142

√C x 1.4142 = 6

√C = 6 / 1.4142 = 4.2426

C = 4.2426² = 18

since there were 2 cupcakes left, Christopher must purchase 18 - 2 = 16 cupcakes

According to the sectoral shifts hypothesis:_______.
a. frictional unemployment will cause workers to extend their temporary lay-offs.
b. most unemployed workers will return to their previous job because the firm knows the skills of the worker.
c. there will always be a pool of unemployed workers who experience spells of unemployment because they do not aggressively search for work cyclical unemployment will always exceed frictional unemployment.
d. there will be always be some level of unemployment because the skills of the workers do not match the skill requirements of employers.

Answers

Answer:

a. frictional unemployment will cause workers to extend their temporary lay-offs.

Explanation:

Remember, frictional unemployment is a type of unemployment that is self-inflicted by workers who want to change jobs (sectorial shifting) within the same economy; thus, they quit their present job in search of a new one.

However, due to uncontrolled circumstances, they may extend their temporary layoffs or period of unemployment, making them become frictionally unemployed.

Pearl Corporation bought Noodle Bowl Limited at the end of the fiscal year. While negotiating the purchase price, Pearl’s management team referred to the following three recent appraisals from independent valuation consultants.

Appraised Value Appraisal Method
Noodle Bowl brand name $50 million Cash flow model based on observed royalty rates
Noodle Bowl workforce $40 million Estimate of the replacement cost to recruit and train an equivalent workforce
Favorable lease agreements $20 million Cash flow model of the anticipated savings from Noodle Bowl's favorable (below market) $20 million contractually guaranteed rental rates for retail space

Required:

Which of the above intangibles is likely to be recorded as a distinct identiflable asset in Pearl Corporation's consolidated financia statement? Which is likely to be recorded as part of goodwill? Explain your reasoning.

Answers

Answer:

Identifiable Asset is the one which can be separated from the business and can be identified separately. The asset should have the capability to be disposed of individually. Favorable lease agreements are one such asset which qualifies these conditions. Thus, Favorable lease agreements should be recorded as a distinct asset in Pearl Corporation's consolidated financial statement.

Every such asset which cannot be identified separately should be recorded as goodwill. We cannot recognize Noodle Bowl workforce and Noodle Bowl brand name as a distinctive asset. Thus, they both should be recorded as a part of goodwill.

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,082,125, divided into two departments: Fabrication, $841,500, and Assembly, $240,625. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require three direct labor hours in Fabrication and three direct labor hours in Assembly. Each product is budgeted for 5,500 units of production for the year.If required, round all per unit answers to the nearest cent.a. Determine the total number of budgeted direct labor hours for the year in each department.Fabrication direct labor hoursAssembly direct labor hoursb. Determine the departmental factory overhead rates for both departments.Fabrication $per dlhAssembly $per dlhc. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.Speedboat: $per unitBass boat: $per unit

Answers

Answer:

a. Determine the total number of budgeted direct labor hours for the year in each department.

Fabrication 33,000 direct hours Assembly 27,500 direct hours

b. Determine the departmental factory overhead rates for both departments.

Fabrication $841,500 / 33,000 direct hours = $25.50 per direct labor hour Assembly $240,625 / 27,500 direct hours = $8.75 per direct labor hour

c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.

Speedboats = (3 x $25.50) + (2 x $8.75) = $94Bass boats = (3 x $25.50) + (3 x $8.75) = $102.75

Explanation:

total overhead expense $1,082,125

Fabrication $841,500Assembly $240,625

speedboats (5,500 units)

Fabrication 3 hour x 5,500 = 16,500 hours Assembly 2 hour x 5,500 = 11,000 hours

bass boats (5,500 units)

Fabrication 3 hour x 5,500 = 16,500 hours Assembly 3 hours x 5,500 = 16,500 hours

Basic job Costing

1. Our company makes customized jewelry Customer 101 orders a ring (job 101).
2. It requires 2 grams of 14k gold, 1 diamond and 3 rubies.
c. Customer 102 orders a pendant (job 102). It requires 4 grams of 14 k gold, and 1 ruby.
d. Purchasing buys 1,000 grams of 14k gold for $24,000. 10 diamonds for $28,000, and 10 rubies for $14,000.
e. For the month, the company had factory labor costs of $280,000 and 10,000 hours.

Required:
Prepare the journal entry for the purchases/receivings.
Prepare the journal entry for the direct materials requisitions (by job).
Prepare the journal entry for factory payroll.

Answers

Answer:

1) Prepare the journal entry for the purchases/receivings.

Dr Inventory: 14k gold 24,000

Dr Inventory: diamonds 28,000

Dr Inventory: rubies 14,000

    Cr Cash (or accounts payable) 66,000

2) Prepare the journal entry for the direct materials requisitions (by job).

Dr Work in process (job 101) 7,480

    Cr Inventory: 14k gold 480

    Cr Inventory: diamonds 2,800

    Cr Inventory: rubies 4,200

Dr Work in process (job 102) 2,360

    Cr Inventory: 14k gold 960

    Cr Inventory: rubies 1,400

3) Prepare the journal entry for factory payroll.

Dr Work in process 280,000

    Cr Wages payable 280,000

Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2100 units, while 1600 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $149,315. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:
Expected activity
Estimated
Activity cost Overhead
pool cost Toasters Blenders Total
Setup costs $8,585 215 batches 450 batches 665 batches
Engineering costs $73,980 870 engineering 820 engineering 1,690 engineering
hours hours
Maintenance costs $66,750 2,7250 direct 1,195 direct 3,945 direct
labor hours labor hours labor hours
Total $149,315
The overhead cost per Blenders using the traditional costing system would be closest to:____.
A. $28.27.
B. $37.85.
C. $93.32.
D. $19.40.

Answers

Answer:

a. Overhead cost per blender = $28.27

Explanation:

Overhead rate = $149,315 / 3,945

Overhead rate = $37.85

Overhead cost per blender = (Blender Direct labor hours * Overhead rate) / Units of blunder Produced and sold

Overhead cost per blender = (1,195 * $37.85) / 1,600

Overhead cost per blender = $45,230.75 / 1,600

Overhead cost per blender = $28.27

Indicate whether the following statements about the conceptual framework are true or false. (a) Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. select an option (b) General-purpose financial reports are most useful to company insiders in making strategic business decisions. select an option (c) Accounting standards based on personal conceptual frameworks generally will result in consistent and comparable accounting reports. select an option (d) Capital providers are the only users who benefit from general-purpose financial reporting. select an option (e) Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company. select an option (f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result.

Answers

Answer:

Explanation:

(a) Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. select an option (TRUE)

This is true be

(b) General-purpose financial reports are most useful to company insiders in making strategic business decisions. select an option (FALSE)

This is false because General-purpose financial reports are most useful to investors as well as shareholders. And it let us financial information about a particular business.

(c) Accounting standards based on personal conceptual frameworks generally will result in consistent and comparable accounting reports. select an option(FALSE)

This is false because Accounting standards based on personal conceptual frameworks will have a diverse report, that cannot be compared.

(d) Capital providers are the only users who benefit from general-purpose financial reporting. select an option (FALSE)

(e) Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company. select an option(FALSE)

(f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result.(TRUE)

The Esposito Import Company had 1 million shares of common stock outstanding during 2021. Its income statement reported the following items: income from continuing operations, $7 million; loss from discontinued operations, $1.4 million. All of these amounts are net of tax.
Required:
Prepare the 2021 EPS presentation for the Esposito Import Company.

Answers

Answer:

$5.60 million

Explanation:

Preparation of the 2021 EPS presentation for the Esposito Import Company.

Earnings per share :

Income from continuing operations $7.00 million

Less: Loss from discontinued operations ($1.40 million)

Net income $5.60 million

Therefore the 2021 EPS presentation for the Esposito Import Company will be $5.60 million

The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019.

Current assets $540,000
Debt investments (trading) 624,000
Common stock (par value $10) 500,000
Paid-in capital in excess of par 150,000
Retained earnings 840,000

Required:
Prepare the required journal entries for the following unrelated items.

a. A 5% stock dividend is declared and distributed at a time when the market price per share is $39.
b. The par value of the common stock is reduced to $2 with a 5-for-1 stock split.
c. A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.

Answers

Answer:

Please see below

Explanation:

a. A 5% stock dividend is declared and distributed when the market per share was $39.

Common stock par value($10) 500,000

Retained earning = 50,000 × 5% × 39

= $97,500

Common stock dividend distributed

50,000 × 5% × $10

= $25,000

See attached further explanations.

Mrs. JK recently made a gift to her 19-year old daughter, Alison. Mrs. JK’s marginal income tax rate is 35 percent and Alison’s marginal income tax rate is 15 percent. In each of the following cases, compute the annual income tax savings resulting from the gift. (Keep in mind the assignment of income doctrine in deciding if there will be income tax savings.)

a. The gift consisted of a corporate bond paying $7,500 annual interest to its owner.
b. The gift consisted of the $7,500 interest payment on a corporate bond owned by Mrs. JK.
c. The gift consisted of rental property generating $8,300 of annual rental income to its owner.
d. The gift consisted of an $8,300 rent check written by the tenants who lease rental property owned by Mrs. JK.

Answers

Answer:

a. The gift consisted of a corporate bond paying $7,500 annual interest to its owner.

annual tax savings = interest income x (Mrs. JK's tax bracket - Allison's tax bracket) = $7,500 x (35% - 15%) = $1,500

b. The gift consisted of the $7,500 interest payment on a corporate bond owned by Mrs. JK.

no tax savings since the bond is still owned by Mrs. JK, and income will be taxed at her marginal tax rate.

c. The gift consisted of rental property generating $8,300 of annual rental income to its owner.

annual tax savings = $8,300 x (35% - 15%) = $1,660

d. The gift consisted of an $8,300 rent check written by the tenants who lease rental property owned by Mrs. JK.

no tax savings since the rental property is still owned by Mrs. JK, and income will be taxed at her marginal tax rate.

Your Task Revise the following sentences to emphasize the perspective of the audience and the "you" view.
We are taking the proactive step of issuing all our customers new chip-enabled credit cards to replace expired or lost cards and prevent increasingly costly payouts we have suffered from fraud. We take great pride in announcing our new schedule of low-cost, any-day flights to Hawaii. Our strict safety policy forbids us from renting power equipment to anyone who cannot demonstrate proficiency in its use. We're requesting that all employees complete the attached online survey by April 1 so that we may develop a master schedule for summer vacations more efficiently. Our social media engineers are excited to announce a new free app called Fan Boosters that we believe will get fans to share, like, and subscribe to your content. To save the expense of having team trainers set up your training classes in our limited office space, we suggest offering a customized class for your employees right in your own building. Because we take pride in our national policy of selling name brands at discount prices, we can allow store credit but we cannot give cash refunds on returned merchandise.

Answers

Answer:

Using the ''You'' view means that the audience is made the subject of the correspondence. This makes the message more effective as the audience will see it from their perspective.

You will issued a new chip-enabled credit cards to replace expired or lost cards and prevent increasingly costly pay-outs resulting from fraud.

With a new schedule of low-cost, any-day flights, you can now fly to Hawaii whenever you want.

Should you wish to rent power equipment, you must demonstrate your proficiency in its use.

Employees are requested to complete the attached online survey by April 1 to enable the development of master schedule to efficiently manage your summer vacations.

Your content can now be shared, liked and subscribed to via the new free app, Fan Boosters.

You can now save costs on the location of your training class by having a customized class for your employees right in your own building.

You can now only receive store credit for returned merchandise.

Sarasota Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred:

Apr. 1 Stockholders invested $24,300 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $506 per week, payable monthly.
2 Paid office rent for the month $1,215.
3 Purchased architectural supplies on account from Burmingham Company $1,755.
10 Completed blueprints on a carport and billed client $2,565 for services.
11 Received $945 cash advance from M. Jason to design a new home.
20 Received $3,780 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $2,024.
30 Paid $405 to Burmingham Company for accounts payable due.

Required:
Journalize the transactions.

Answers

Answer:

Date        Account Titles and Explanation    Debit    Credit

Apr. 1       Cash                                               $24,300  

                    Common Stock                                          $24,300

              (To record the amount of cash invested into the business)

Apr. 1     No entry for hiring an employee because there is no monetary transaction.

Apr. 2       Office Rent                                       $1,215

                     Cash                                                          $1,215

              (To record the payment of office rent by cash)  

Apr. 3         Supplies                                            $1,755

                         Accounts Payable                                  $1,755

              (To record the purchase of supplies on account)  

Apr. 10         Accounts Receivable                      $2,565

                          Service Revenue                                     $2,565

               (To record the services provided on account)  

Apr. 11           Cash                                                  $945

                           Unearned Service Revenue                    $945

               (To record the receipt of cash for the services to be

                provided in future)

Apr. 20          Cash                                                  $3,780

                            Accounts Receivable                               $3,780

                (To record the collection of cash from the

                  credit services provided)

 

Apr. 30           Salaries Expense                              $2,024  

                              Cash                                                         $2,024

                  (To record the payment of salaries by cash)  

Apr. 30             Accounts Payable                             $405

                                Cash                                                         $405

                   (To record the payment of accounts payable due)

Munchies, Inc., dominates the snack-food industry with its Salty Chip brand. Assume that Munchies purchased Sweet Snacks Company for $5.4 million cash. The market value of Sweet Snacks’ assets is $10 million, and Sweet Snacks has liabilities with a market value of $7.1 million.

Required:
a. Compute the cost of the goodwill purchased by Munchies.
b. Explain how Munchies will account for goodwill in future years.

Answers

Answer:

$2500000

Explanation:

A

1. Goodwill = purchase consideration - market value of net assets of the company

Market value of net assets of the company =$10000000-$7100000

=$2900000

Therefore goodwill=$5400000-$2900000=

$2500000

2. Under GAAP and IFRS, goodwill is an intangible asset that has an indefinite useful life and not amortized like other depreciable assets

At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $70 million attributable to a temporary book-tax difference of $280 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $208 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $504 million and the tax rate is 25%.
Payne has a valuation allowance of $28 million for the deferred tax asset at the beginning of 2021.Required:A. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full.B. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.

Answers

Answer:

A.

1. Dr Income tax expense $144

Cr To Deferred Tax Assets $18

Cr To Income Tax Payable $126

2. No Journal Entry

B.

1. Dr Income tax expense $144

Cr To Deferred Tax Assets $18

Cr To Income Tax Payable $126

2. Dr Income tax expense $39

Cr To Valuation Allowance - Deferred Tax Assets $39

Explanation:

A. Preparation of the journal entry(s) to record Payne’s income taxes for 2021

1. Dr Income tax expense $144

($126+$18)

Cr To Deferred Tax Assets $18

[($280-$208)*25%]

Cr To Income Tax Payable $126

($504*25%)

(Being income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )

2 No Journal Entry

B. Preparation of the journal entry(s) to record Payne’s income taxes for 2021

1. Dr Income tax expense $144

($126+$18)

Cr To Deferred Tax Assets $18

[($280-$208)*25%]

Cr To Income Tax Payable $126

($504*25%)

(Being income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )

2. Dr Income tax expense $39

Cr To Valuation Allowance - Deferred Tax Assets $39

[($208*75%)*25%]

(To record valuation allowance for deferred tax assets)

Exam Style Questions
TelCom owns a phone network and provides phone network services to many
consumers. The business does not manufacture phones and it does not own
retail stores selling them. Senior managers at TelCom are considering a takeover
of either a phone manufacturer or a chain of phone shops. TelCom employs
4000 workers and, last year, recorded total sales of $300 million. In contrast,
the largest manufacturer of mobile phones, PhonTec, has 450 workers and
recorded total sales last year of $1200 million.
a) What is meant by 'takeover'?
[2]
b) Identify two other ways a business might grow apart from takeovers. (2)
c) Identify and explain two reasons why external groups would be
interested in measuring the size of businesses such as TelCom.
[4]
d) Identify and explain two possible reasons why senior managers at
Telcom want to expand the business.
[6]
e) How should TelCom expand - taking over a phone manufacturer or a
chain of shops selling mobile phones? Justify your answer.
[6]

Answers

Answer:

a) What is meant by 'takeover'?

In this context, a takeover means vertical integration, either backwards (buying a supplier, in this case, the phone manufacturer), or forwards (buying a distributor, in this case, the retail store).

b) Identify two other ways a business might grow apart from takeovers.

Businesses can grow by internal expansion: by pouring their own resources into a new business division, a new product, a new sector, and so on.

Businesses can also grow by forming strategic alliances with other companies.

c) Identify and explain two reasons why external groups would be  interested in measuring the size of businesses such as TelCom.

Investors, as an external group, are interested in measuring the size of the business in order to determine is value, and decide if investing in the business is a good decision or not.

The government, as an external group, is interested in measuring the size of the business simply to determine how many taxes to impose on it.

d) Identify and explain two possible reasons why senior managers at

Telcom want to expand the business.

They may want to expand the business because they want to increase profits, and larger companies almost always have larger profits than smaller ones.

They also may want to expand the business in order to meet some other corporate strategy goal, like reducing costs, or achieving a specific amount of sales.

e) How should TelCom expand - taking over a phone manufacturer or a

chain of shops selling mobile phones? Justify your answer.

They should do what is most profitable. Apparently, the retail business is less profitable than the mobile manufacturing business, so under this scenario, TelCom should integrate backwards, and buy the manufacturer.

Barnes Corporation expected to sell 150,000 board games during the month of November, and the company’s master budget contained the following data related to the sale and production of these games:_______.Revenue $2,400,000Cost of goods sold:Direct materials $675,000Direct labor $300,000Variable Overhead $450,000Contribution Margin $975,000Fixed overhead $250,000Fixed selling and administration $500,000Operating income $225,000Actual sales during November were 180,000 games. Using a flexible budget, the company expects the operating income for the month of November to be:_____.A) $225,000B) $270,000C) $420,000D) $510,000

Answers

Answer:

C) $420,000

Explanation:

Barnes Corporation

                                                  Master budget            Flexible budget

                                                   150,000 games       180,000  games

Revenue                                  $2,400,000                   $2,880,000    

Cost of goods sold:

Direct materials                     $675,000                         $810,000        

Direct labor                           $300,000                         $360,000        

Variable Overhead               $450,000                          $540,000

Contribution Margin             $975,000                           $ 1170,000

Fixed overhead                    $250,000                            $ 250,000

Fixed selling and administration $500,000                    $500,000    

Operating income                 $225,000                          $420,000

We calculate each term by dividing the cost by 150,000 units and multiplying the unit cost with the actual units  180,000. It is assumed that the fixed costs remain constant for the range of units from 150,000 - 200,000.

This gives an operating income of $ 420,000

Purple Panda Pharmaceuticals Inc.’s free cash flows (FCFs) are expected to grow at a constant long-term growth rate ( gL ) of 13% per year into the future. Next year, the company expects to generate a free cash flow of $10,000,000. The market value of Purple Panda’s outstanding debt and preferred stock is $75,000,000 and $41,666,667, respectively. Purple Panda has 4,500,000 shares of common stock outstanding, and its weighted average cost of capital (WACC) is 19%.Given the preceding information, complete the adjacent table (rounding each value to the nearest whole dollar), and assuming that the firm has not had any nonoperating assets in its balance sheet. Term Value Value of Operations Value of Firm's Common Equity Value of Common Stock (per share) Oops, a more careful review of Purple Panda's balance sheet actually reports a $2,370,000 portfolio of marketable securities. How does this new information affect the intrinsic value of Purple Panda's common equity (expressed on a per-share basis) assuming no other changes to the Purple Panda financial situation? Review the statements below and select those that accurately describe Purple Panda's financial situation.
A. The intrinsic value of the company's common stock isn't affected by the new information.
B. The intrinsic value of Purple Panda's common stock decreases with the inclusion of the company's marketable securities portfolio into the analysis.
C. The revised intrinsic value of Purple Panda's common stock is $1.27 per share.
D. The intrinsic value of Purple Panda's common stock increases with the inclusion of the company's marketable securities portfolio into the analysis.

Answers

Answer:

Total value of PPP = $10,000,000 / (19% - 13%) = $166,666,667

Total equity value = $166,666,667 - $41,666,667 = $125,000,000 (preferred stocks are considered equity)

Common stock equity value = $125,000,000 - $75,000,000 = $50,000,000

Per share value = $50,000,000 / 4,500,000 = $11.11 ≈ $11 (to the nearest $)

Oops, a more careful review of Purple Panda's balance sheet actually reports a $2,370,000 portfolio of marketable securities. How does this new information affect the intrinsic value of Purple Panda's common equity (expressed on a per-share basis) assuming no other changes to the Purple Panda financial situation? Review the statements below and select those that accurately describe Purple Panda's financial situation.

A. The intrinsic value of the company's common stock isn't affected by the new information.

Marketable securities are short term investments (included in current assets). Since we are not given any more information regarding PPP's assets nor how it earns a profit, we cannot determine for sure if this discovery affects stock. personally, I believe it shouldn't unless the securities include high risk stocks that could affect the companies future earnings. We determined the price of PPP based on its future cash flows, not based on its assets.

The information shown below is taken from the accounts of Wildhorse Corporation for the year ended December 31, 2020.
Net income $370,000
Amortization of patent 12,000
Proceeds from issuance of common stock 150,000
Decrease in inventory 27,000
Sale of building at a $14,000 gain 84,000
Decrease in accounts payable 12,000
Purchase of equipment 150,000
Payment of cash dividends 28,000
Depreciation expense 54,000
Decrease in accounts receivable 20,000
Payment of mortgage 71,000
Increase in short-term notes payable 8,000
Sale of land at a $7,000 loss 44,000
Purchase of delivery van 30,000
Cash at beginning of year 300,000
Prepare a statement of cash flows for Wildhorse Corporation for the year ended December 31, 2020.

Answers

Answer and Explanation:

Statement of Cash flow attached

Other Questions
Which paragraph from the article explains why the ultracool dwarf star discovery is sosignificant to the search for other signs of life?The system's host star, called TRAPPIST-1, is what is known as an ultracool dwarf. It is aboutone-tenth the size of our sun and just a bit bigger than Jupiter.Going forward, the authors plan to use even more powerful telescopes to analyze theTRAPPIST-1 system. The Hubble Space Telescope will point its powerful lens toward theultracool dwarf star.O "Systems around these tiny stars are the only places where we can detect life on an Earth-sized exoplanet with our current technology," Gillon said in a statement. "If we want to findlife elsewhere in the Universe, this is where we should look."O Ultracool dwarfs make up about 15 percent of the astronomical objects in our immediateneighborhood, but until now, no one had ever discovered a planet orbiting one. How does phospholipids help fats and oils exist in water medium? Listen and learn the case of tony the tiger answers Express the function graphed on the axes below as a piecewise function. Which statement accurately describes the relationship between cytokinesis and mitosis? Mitosis includes interphase and cytokinesis. Cytokinesis precedes mitosis. Cytokinesis occurs during mitosis. Interphase includes cytokinesis and mitosis. Please make sure I did it right! Stay safe! Help Please The French Indian War The Declaration of Independence Shays Rebellion The writing of the ConstitutionWhich statement forms a common thread for these events?A. They were all inspired by the Enlightenment.B. All of the events took place in the 18th century. C. All are examples of democratic principles being applied.D. Each event was caused by foreign involvement in American affairs. The diagram shows two cells. Identify structures C, D, and E and explain how they work together to perform a specific process within the cell. Enter your answer in the space provided. Which are alternate exterior angles? HELPPP PLZZZ! how was russia still considered behind the west even after modernizing? if f(x) = 1/2x + 5, what is f(8) A student performs an experiment where gas is collected over water in an upside down graduated cylinder. If the atmospheric pressure is 745 mmHg and the level of water in the graduated cylinder is 14.4 cm higher than the level of the water exposed to the atmosphere, what is the total pressure of gases inside the graduated cylinder? Enter your answer numerically in units of mmHg. 91% of what is 108?it's telling me I need to write more here to get an answer, but I don't have anything else to write, I literally just need the answer. 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.2. Prepare the Income Statement for 2017.The following data are for Marvin Department Store. The account balances (in thousands) are for 2017.Marketing and advertising costs $24,000Merchandise inventory, January 1, 2011 45,000Shipping of merchandise to customers 2,000Building depreciation $4,200Purchases 260,000General and administrative costs 32,000Merchandise inventory, December 31, 2011 52,000Merchandise freight-in 10,000Purchase returns and allowances 11,000Purchase discounts 9,000Revenues 320,000 Please:) Ken bought some lolipops. He gave 1/2 of them to chin, 3 to Harris, and kept 6 for himself.how many lollipops did buy? Lorea is designing the top of a quilt which measures 2,160 square inches. Triangles will cover 432 square inches of the quilt, and squares will cover 180 square inches. The rest of the quilt will be parallelograms with a base of 2 inches and a height of 1.5 inches. How many parallelograms should she cut to complete the quilt?516528617720 If she has enough or not match each pair with their relationship Angles 1 and 3 Angles 4 and 8 Angles 4 and 6 Angles 3 and 5 Angles 7 and 8 Angles 1 and 7 From start to finish, a machine can fill a bottle of water, seal it, label it, and pack it in 8.6 seconds. About how many bottles of water are packed in 480 seconds?20 bottles40 bottles25 bottles50 bottles Bailey is plagued with sleep problems at least a couple of times a week. She often feels tired at work and doesn't doher best work because she is "just so tired." According to the lesson, it can be said that______adults have some of the same problems with sleep that Bailey does.A fewB. manyC.noD. all