The following transactions occurred during March 2018 for the Wainwright Corporation.
The company owns and operates a wholesale warehouse. Issued 45,000 shares of common stock in exchange for $450,000 in cash.
Purchased equipment at a cost of $55,000. $17,500 cash was paid and a notes payable to the seller was signed for the balance owed.
Purchased inventory on account at a cost of $108,000. The company uses the perpetual inventory system.
Credit sales for the month totaled $195,000. The cost of the goods sold was $85,000.
Paid $6,500 in rent on the warehouse building for the month of March.
Paid $7,500 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
Paid $85,000 on account for the merchandise purchased in 3.
Collected $70,000 from customers on account.
Recorded depreciation expense of $2,500 for the month on the equipment.
Prepare journal entries to record each of the transactions listed above.

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr, $450,000

          To common stock $450,000

(Being issuance of common stock is recorded)

2. Equipment Dr, $55,000

        To cash $17,500

         To notes payable $37,500

(Being equipment purchased is recorded)

3. Merchandise inventory Dr, $108,000

              To accounts payable $108,000

(Being inventory is purchased on the account is recorded)

4. Accounts receivable Dr, $195,000

             To sales revenue $195,000

(Being credit sales is recorded)

5. Cost of goods sold Dr, $85,000

           To Merchandise inventory $85,000

(Being cost of goods sold is recorded)

6. Rent expense Dr, $6,500

         To cash $6,500

(Being cash paid is recorded)

7. Prepaid insurance Dr, $7,500

         To cash $7,500

(Being cash paid is recorded)

8. Accounts payable Dr, $85,000

            To cash $85,000

(Being cash paid is recorded)

9. Cash Dr, $70,000

           To accounts receivable $70,000

(Being cash paid is recorded)

10. Depreciation expense Dr, $2,500

                    To accumulated depreciation- equipment $2,500

(Being depreciation expense is recorded)

Harbert, Inc. had a beginning balance of $12,000 in its Accounts Receivable account. The ending balance of Accounts Receivable was $10,500. During the period, Harbert collects $72,000 of its accounts receivable. Harbert incurred $63,000 of cash expenses during the accounting period.
Required
a. Based on the information provided, determine the amount of revenue recognized during the accounting period.
b. Based on the information provided, determine the amount of net income earned during the accounting period.
c. Based on the information provided, determine the amount of cash flow from operating activities.

The Rivera's owned and operated a small pharmacy in New York. They spoke to Hyman a representative of CVS Pharmacy,inc. Hyman told them that for 25,000 CVS would build them a store and stock it for them. The Rivera's gave up their store and bought a lot on which CVS was to build the store. CVS then told them the price went up to 35,000. The Rivera's borrowed the extra money, but then CVS told them the cost would be 50,000. Negotiations broke off and the Rivera's sued.
(1) Is there a contract?
(2) and if there is not is there another way the Rivera's can recover any money?

Novak Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.

Year Straight-Line Sum-of-the-Years'-Digits Double-Declining-Balance
1 $15,750 $26,250 $35,000
2 15,750 21,000 21,000
3 15,750 15,750 12,600
4 15,750 10,500 7,560
5 15,750 5,250 2,590
Total $78,750 $78,750 $78,750

Required:
a. What is the cost of the asset being depreciated?
b. What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
c. Which method will produce the highest charge to income in Year 1?
d. Which method will produce the highest charge to income in Year 4?
e. Which method will produce the highest book value for the asset at the end of Year 3?
f. If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?

Asonia Co. will pay a dividend of $4.50, $8.60, $11.45, and $13.20 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 10.5 percent on the company's stock, what is the stock price?

Several years ago, Carol Mutter, a cash-basis taxpayer, obtained a mortgage from Weak National Bank to purchase a personal residence. In December 2019, $8,500 of interest was due on the mortgage, but Carol had only $75 in her checking account. On December 31, 2019, she borrowed $8,500 from her sister, Pearl, evidenced by a note, and the proceeds were deposited in her checking account. On the same day, Carol issued a check in the identical amount of $8,500 to Weak Bank for the interest due. Is the interest expense deductible for the 2019 tax year?Prepare (in good form) a research memorandum to the file. (See Chapter 2 for an illustration of the structure of a tax memo.)

Provide one example of what the citizens of South Africa can do to uplift themselves

Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. ​

Overhead Total Direct Labor Hours DLH per Product
A B
Painting Dept. $250,000 10,000 16 4
Finishing Dept. 75,000 12,000 4 16
Totals $325,000 22,000 20 20 ​ ​

Required:
Calculate the plantwide factory overhead rate for Adirondack Marketing Inc.

a. $6.25 per dlh
b. $14.77 per dlh
c. $0.07 per dlh
d. $25.00 per dlh

Carr Company produces a single product. During the past year, Carr manufactured 29,010 units and sold 23,900 units. Production costs for the year were as follows: Direct materials $214,674 Direct labor $121,842 Variable manufacturing overhead $243,684 Fixed manufacturing overhead $319,110 Sales were $1,159,150 for the year, variable selling and administrative expenses were $126,670, and fixed selling and administrative expenses were $205,971. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:______.
a. $56,210 lower than under absorption costing.
b. $30,149 lower than under absorption costing.
c. $56,210 higher than under absorption costing.
d. $30,149 higher than under absorption costing.

Rafael Company produces pipes for concert-quality organs. Each job is unique. In April 2013, it completed all outstanding orders, and then, in May 2013, it worked on only two jobs, M1 and M2:Job M1: Direct materials $78,000, Direct manufacturing labor $273,000Job M2: Direct materials $51,000, Direct manufacturing labor $208,000Direct manufacturing labor is paid at the rate of $26 per hour. Manufacturing overhead costs are allocated at a budgeted rate of $20 per direct manufacturing labor-hour. Only Job M1 was completed in May.Requirements:A) Calculate the total cost for Job M1.B) 1,100 pipes were produced for Job M1. Calculate the cost per pipe.C) Prepare the journal entry transferring Job M1 to finished goods.D) What is the ending balance in the Work-in-Process Control account?

Marilyn County operates on a calendar-year basis. It uses a Capital Projects Fund to account for major capital projects and a Debt Service Fund to accumulate resources to pay principal and interest on general obligation debt. It does not use encumbrance accounting in the Capital Projects Fund. The following transactions occur:
1. On January 1, 2019, Marilyn County issues general obligation bonds in the amount of $1,000,000 to build a community center. The debt will be paid off in 20 equal semiannual installments of $50,000 over a 10-year period commencing October 1, 2019, with interest of 4 percent per annum paid on the outstanding debt.
2. The county realizes that the community center will cost more than it originally anticipated. On May 1, the county transfers $20,000 from its General Fund to its Capital Projects Fund to help meet project costs.
3. Construction is completed on July 1, 2019, and the community center is ready for occupancy. The county pays the contractor a total of $1,020,000 on July 1. The county anticipates that the community center will have a useful life of 20 years.
4. On September 30, 2019, the General Fund transfers an amount to the Debt Service Fund that is sufficient to pay the first debt service installment, which is due October 1.
5. The county pays the debt service due on October 1.
Required:
Prepare the journal entries to record these transactions in the Capital Projects Funds, the General Funds and the Debit Service Fund.

In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 300 towels were in process and were 60 percent complete. The costs incurred were $576. During the month, costs of $10,800 were incurred, 2,700 towels were started, and 150 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete.
Required:
A. Prepare a production cost report; the company uses weighted-average process costing.
RECYCLERS, INC.
Production Cost Report—FIFO
Flow of Production Units Compute Equivalent Units
Physical Units Conversion Costs
Units to be accounted for:
Beginning WIP inventory 300
Units started this period
Total units to be accounted for 300
Units accounted for:
Units completed and transferred out:
From beginning inventory
Started and completed currently
Units in ending WIP inventory
Total units accounted for 0 0
Costs Total Costs Conversion Costs
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for $0 $0
Cost per equivalent unit:
Conversion costs
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning inventory
Current costs added to complete beginning WIP inventory:
Conversion costs
Total costs from beginning inventory $0
Current costs of units started and completed:
Conversion costs
Total costs of units started and completed $0
Total costs of units transferred out $0
Costs assigned to ending WIP inventory:
Conversion costs
Total ending WIP inventory $0
Total costs accounted for $0 $0
B. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables.
Work in Process Various Payables
Beginning inventory Beg.bal.
This period's costs: End.bal.
Ending inventory
Finished Goods Inventory
Beg.bal.
End.bal.

A list of concepts are provided below. Select the appropriate description for the concept.
1. Cash-basis accounting. select the appropriate description for the concept
2. Fiscal year. select the appropriate description for the concept
3. Revenue recognition principle. select the appropriate description for the concept
4. Expense recognition principle. select the appropriate description for the concept

Suppose that France and Austria both produce jeans and stained glass. France's opportunity cost of producing a pane of stained glass is 3 pairs of jeans while Austria's opportunity cost of producing a pane of stained glass is 11 pairs of jeans. By comparing the opportunity cost of producing stained glass in the two countries, you can tell that has a comparative advantage in the production of stained glass and has a comparative advantage in the production of jeans. Suppose that France and Austria consider trading stained glass and jeans with each other. France can gain from specialization and trade as long as it receives more than of jeans for each pane of stained glass it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than of stained glass for each pair of jeans it exports to France.Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of jeans) would allow both Austria and France to gain from trade?
a. 4 pairs of jeans per pane of stained glass
b. 1 pair of jeans per pane of stained glass
c. 11 pairs of jeans per pane of stained glass
d. 7 pairs of jeans per pane of stained glass

A taxpayer purchases real estate rental property for $150,000. She pays $25,000 cash and obtains a mortgage for $125,000. She pays closing costs of $8,000, which includes $4,000 in points on the mortgage and $4,000 for closing fees and title costs. The basis in the property is:

a. $33,000 depreciation , $125,000 amortization
b. $158,000 depreciation only
c. $154,000 depreciation, $4,000 amortization
d. $150,000 depreciation, $8,000 Amortization

In its first month of operations, Vaughn Manufacturing made three purchases of merchandise in the following sequence:
(1) 340 units at $5,
(2) 440 units at $7, and
(3) 540 units at $8.
Assuming there are 240 units on hand at the end of the period, compute the cost of the ending inventory under
(a) the FIFO method and
(b) the LIFO method.
Vaughn Manufacturing uses a periodic inventory system.

What are the characteristics of a successful entreprenuer​

The Cavy Company estimates that the factory overhead for the following year will be $644,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 16,100 hours. The machine hours for the month of April for all of the jobs were 1,620. If the actual factory overhead for April totaled $65,837,
a. determine the over- or underapplied amount for the month.
b. determine the total factory overhead amount applied.
c. prepare the journal entry to close factory overhead into Cost of Goods Sold.

U.S. currency is produced by the _____.

On January 1, 2021, Madison Products issued $40 million of 6%, 10-year convertible bonds at a net price of $40.8 million. Madison recently issued similar, but nonconvertible, bonds at 99 (that is, 99% of face amount). The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of Madison’s no par common stock. Madison records interest by the straight-line method. On June 1, 2023, Madison notified bondholders of its intent to call the bonds at face value plus a 1% call premium on July 1, 2023. By June 30, all bondholders had chosen to convert their bonds into shares as of the interest payment date. On June 30, Madison paid the semiannual interest and issued the requisite number of shares for the bonds being converted.
Required:
1. & 2. Prepare the journal entries for the issuance of the bonds by Madison and interest payment for June 30, 2021.
3. Prepare the journal entries for the June 30, 2023, interest payment by Madison and the conversion of the bonds (book value method).

Brine, a concentrated aqueous salt solution, is frequently applied to the roads to pre-treat when snow is forecasted. It is known to be more effective when compared with solid ice melting products. Based on your understanding of the concept of freezing point depression, select all the reasons that explain why it is better to use the anti-icing agent brine than using solid ice melting products. It will be helpful to think about storage and dispersion when taking costs into account for the brine and solid ice melting products.

a. Applying brine on roadways accelerates the melting process because salt needs to be moist to be effective.
b. Solids may lead to land pollution while brine does not.
c. Snow storms sometimes start as rain which may wash away the solid ice melting products.
d. The salt in brine sticks to the roadway after the water part evaporates preventing the salt from being blown off by vehicles driving on the road.
e. The cost per ton is higher for solid ice melting products than it is for brine

Lexington Garden Supply pays $ 280,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of $ 93,000 , the building's current market value is $ 186,000 , and the equipment's current market value is $ 31,000. Prepare a schedule allocating the purchase price of $ 280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable for the purchase price.

Required:
Prepare a schedule allocating the purchase price of $ 280,000 to each of the individual assets purchased based on their relative market​ values, then journalize the​ lump-sum purchase of the three assets.

The manager of a supermarket meat department finds she has 200 lb of round steak, 800 lb of chuck steak, and 150 lb of pork in stock on Saturday morning. She will use these to make three products: hamburger meat, picnic patties, and meatloaf. The demand for each of these items always exceeds the supermarket supply. Therefore, she will be able to sell off all of however much of her current meat ingredients as she wants to. Hamburger meat must consist of at least 20 percent round steak and at least 50 percent chuck steak by weight. Picnic patties must consist of at least 20 percent pork and at least 50 percent chuck steak by weight. Meatloaf must consist of at least 10 percent round steak, 30 percent pork, and 40 percent chuck. In each product, the remainder is an inexpensive filler, and the supermarket has an unlimited supply of it. The manager wants to know how much of each product she should produce so that the total amount of leftover meat ingredients that need to be carried over can be minimized. Solve this problem using Linear Programming.

a. Production quantity of hamburger meat: ______________
b. Production quantity of picnic patties: _______________
c. Production quantity of meatloaf: ___________________
d. The total quantity of leftover meat: _________________

Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture.
Required
1. Classify the following manufacturing costs of Business Solutions as (a) variable or fixed and (b) direct or indirect.
2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2018.
Direct materials: $2,900
Factory overhead: $530
Direct labor: $900
Beginning work in process: none (December 31, 2017)
Ending work in process: $520 (January 31, 2018)
Beginning finished goods inventory: none (December 31, 2017)
Ending finished goods inventory: $350 (January 31, 2018)
3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2018.

Prepare the financial statements for Smart Touch Learning for the month of December. Remember that the business started operations this month so all beginning balances were zero. For the Statement of Retained Earnings and the Balance Sheet, enter any decreases with a minus sign or parentheses.
SMART TOUCH LEARNING
Adjusted Trial Balance
December 31, 2016
Balance
Account Title Debit Credit
Cash 42,310
Accounts Receivable 2,400
Office Supplies 420
Prepaid Insurance 900
Furniture 13,300
Accumulated Depreciation
- Furniture 400
Salaries Payable 1,100
Unearned Revenue 4,200
Common Stock 41,500
Dividends 2,200
Service Revenue 20,400
Salaries Expense 3,300
Depreciation Expense
- Furniture 400
Insurance Expense 300
Utilities Expense 390
Rent Expense 1,600
Supplies Expense 80
Total 67,600 67,600

Suppose that nominal GDP was $9000000.00 in 2005 in Midland County Texas. In 2015, nominal GDP was $11500000.00 in Midland County Texas. The price level rose 3.00% between 2005 and 2015, and population growth was 3.50%. Calculate the following figures for Midland County Texas between 2005 and 2015. Give all answers to two decimals.

In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 300 towels were in process and were 60 percent complete. The costs incurred were $576.

During the month, costs of $10,800 were incurred, 2,700 towels were started, and 150 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete.

Required:
a. Prepare a production cost report; the company uses FIFO process costing.
b. Show the flow of costs through T-accounts.

Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of March, Mendez Company had two jobs in process, Job 86 and Job 87, with the following accumulated cost information:


Job 86 Job 87
Direct materials $4,800 $1,600
Direct labor 1,200 3,000
Applied overhead 888 2,220
Balance, March 1 6,888 $6,820

During March, two more jobs (88 and 89) were started. The following direct materials and direct labor costs were added to the four jobs during the month of March:

Job 86 Job 87 Job 88 Job 89
Direct materials $3,000 $7,000 $2,100 $1,500
Direct labor 800 6,000 900 500

At the end of March, Jobs 86, 87, and 89 were completed. Only Job 87 was sold. On March 1, the balance in Finished Goods was zero.

Required:
a. Calculate the overhead rate based on direct labor cost.
b. Prepare a brief job-order cost sheet for the four jobs. Show the balance as of March 1 as well as direct materials and direct labor added in March.

Select the examples that best demonstrate likely tasks for Professional Support Services workers. Check all than
apply.

O Leon gives psychological tests to students and assesses their results.

O Helen sets goals, and creates rules and policies for a school.

O Alexander helps high-school students decide which classes to take.

O Ebony helps children find books and magazines in a school library.

O Kyle teaches a kindergarten class that prepares students for first grade.

O Francisca is a parent who donates money to a school program.

There is a large steel factory next to a private lake owned by a single individual. Pollution from the factory contaminates the lake, reducing the stock of fish and other aquatic animals. The pollution runoff affects only the owner's private lake. The marginal benefit to the steel factory of pollution is M B = 400 − 2 Q MB = 400 - 2Q MB=400−2Q, where Q Q Q is the amount of water pollution in tons. The marginal cost to the lake owner is M C = 3 Q MC = 3Q MC=3Q. Assume that the amount of pollution damage is measurable, benefit and cost curves are known with certainty, and that there are no transaction costs for negotiation. With this information, answer the following questions:______
A. What is the efficient quantity of pollution? Illustrate on a graph.
B. Recall the Coase Theorem, which indicates that the assignment of property rights to one party or the other is irrelevant when determining the efficient allocation of resources. First assume that owner of the lake has the property rights. Calculate the net gains or loses for both the owner and the factory. What is the total net social welfare?
C. Now assume that the steel factory has the pollution rights. Calculate the net gains or loses for both the owner and the factory. What is the total net social welfare?How does this result compare to answer?

19. An investment costs $290,000 and will generate the following cash flows: Year 1 - +$132,000; Year 2 - +$100,000; Year 3 - +$150,000. The required rate of return is 15%. What is the IRR?