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Brief Exercise 14-11 (Algo) Installment note [LO14-3]
On January 1, a company borrowed cash by issuing a $370,000, 5%, installment note to be paid in three equal payments at the end of
each year beginning December 31.
Note: Use tables, Excel, or a financial calculator.
(
FV of $1
, PV of $1
, FVA of $1
, PVA of $1
, FVAD of $1 and PVAD of $1
)
What would be the amount of each installment?
Prepare an amortization table for the installment note.
Prepare the journal entry for the second installment payment.
Annual Payment
Amortization
Complete this question by entering your answers in the tabs below.
What would be the amount of each installment?
Note: Round your final answer to the nearest whole dollar.
Annual
Payment
Amortization
General
Journal
Annual Payment
$
100,000
References
General Journal
Difficulty: 1 Easy
Brief Exercise 14-11
(Algo) Installment
note [LO14-3]
Learning Objective: 14-03
Characterize the accounting
treatment of notes, including
installment notes, issued for
cash or for noncash
consideration.
Brief Exercise 14-11 (Algo) Installment note [LO14-3]
On January 1, a company borrowed cash by issuing a $370,000, 5%, installment note to be paid in three equal payments at the end of
each year beginning December 31.
Note: Use tables, Excel, or a financial calculator.
(
FV of $1
, PV of $1
, FVA of $1
, PVA of $1
, FVAD of $1 and PVAD of $1
)
What would be the amount of each installment?
Prepare an amortization table for the installment note.
Prepare the journal entry for the second installment payment.
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11. RE.12.01.BLANKSHEET
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12. RE.12.02
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13. RE.12.03.BLANKSHEET
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O 13 years
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(10% of November credit sales of ¥150,000 and 45% of December credit sales of ¥151,000).…
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7-35 Cash Budget
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7. Uneven cash flows
A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time
value of money will continue to apply.
Consider the following case:
The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years:
Annual Cash Flows
Year 2
Year 3
Year 4
Year 5
Year 1
$100,000
$20,000
$330,000
$450,000
$750,000
this investment is 4%. What is the present value of this uneven cash flow
The CFO of the company believes that an appropriate annual interest rate
stream, rounded to the nearest whole dollar?
O $450,000
O $2,025,000
O $1,675,000
O $1,409,121
flows or annuity payments:
Identify whether the situations described in the following table are examples of uneven
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Exercise 17-42 (Algo) Taguchi Quality Loss Function (QLF) Analysis [LO 17-4]
Flextronchip, an OEM manufacturer, has a fifth-generation chip for cell phones, with chip specification of 0.2 ± 0.0002 mm for the
distance between two adjacent pins. The loss due to a defective chip has been estimated as $20.
Required:
1. Compute the value of k, the cost coefficient in the Taguchi quality loss function (QLF), L(x) = (x-7)².
2. Assume that the quality control manager takes a sample of 100 chips from the production process. The results are as follows:
Measurement
Frequency
3
0.1996
0.1997
5
0.1998
15
0.1999
14
0.2000
35
0.2001
14
0.2002
6
0.2003
5
0.2004
3
a. & b. Use the appropriate Taguchi quality loss function, L(x), to calculate the estimated quality loss for each of the observed
measurements.…
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requires an understanding of the company's operations and the inter-relationship of accounts.
is only required for accounts that do not have a normal balance.
is optional when financial statements are prepared.
is straight-forward because the accounts that need adjustment will be out of balance.
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January 1-D. Hall, owner, invested $142,750 cash in
the company in exchange for common stock.
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equipment on credit.
January 4 - The company received $18,300 cash for
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Analyzing and Processing Trans x
January 5- The company paid $14,050 cash to settle
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services provided.
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January 6.
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Question 3
The following information for the period ending June 30, 2015, was taken from the books of
Furnishing Homes, manufacturers of decorative tiles.
Carriage in on raw materials
Opening sock of raw materials
Purchase of raw materials
Purchases retums
12 000
40 000
160 000
62 000
Closing stock of raw materials
Production wages
Direct factory wages
Work in progress- July 1, 2014
Work in progress- June 30, 2015
Insurance
Salaries
30 000
47 000
6 000
13 000
21 000
Overhead:
Light & power
Telephone
Depreciation
Rent
8 000
28 000
11 000
7 500
12 500
15 000
Each overhead cost is apportioned on the following basis:
Factory
Selling & distribution
General administration
50%
20 %
30%
The number of decorative tiles done and sold during the period was 50 000 at $7 per tile
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$1,900,000.
$2,800,000.
Question 13 - E X
B
During its most recent fiscal year, Dover, Incorporated had total sales of $3,200,000. Contribution
margin amounted to $1,500,000 and income was $400,000. What amount should have been
reported as variable costs in the company's contribution margin income statement for the year?
$1,300,000.
$1,100,000.
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Cheyenne Corp. purchased equipment for $13200 on December 1. It is estimated that annual depreciation on the computer will be
$2640. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
O debit Depreciation Expense, $10560; credit Accumulated Depreciation, $10560.
O debit Equipment, $13200; credit Accumulated Depreciation, $13200.
O debit Depreciation Expense, $2640; credit Accumulated Depreciation, $2640.
O debit Depreciation Expense, $220; credit Accumulated Depreciation, $220.
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Chapter 17 Financial Statement Analysis
Problems Series B
PR 17-1B Horizontal analysis of income statement
ов. 1
V 1. Net sales,
30.0% increase
For 2014, Macklin Inc. reported its most significant increase in net income in years. At
the end of the year, John Mayer, the president, is presented with the following condensed
comparative income statement:
1
SPREADSHEET
Macklin Inc.
Comparative Income Statement
2itilid For the Years Ended December 31, 2014 and 2013
GENERALLEDGER
2014
2013
Sales .....
$936,000
$720,000
Sales returns and allowances
26,000
20,000
Net sales.....
$910,000
$700,000
350,000
441,000
Cost…
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Using the information below, compute the raw materials inventory turnover:
Raw Materials Used
$127,600
Beginning Raw Materials Inventory
Ending Raw Materials Inventory
18,300
20,500
D:41
Multiple Choice
6.58.
58.60.
6.22.
52.30.
15 of 30
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7. Find all four stated rate (APR)
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Use the following information for the Quick Study below. (Algo) (5-7)
[The following information applies to the questions displayed below.]
Beginning inventory on January 1
Purchase on January 9
Purchase on January 25
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the
company sells 350 units. Ending inventory at January 31 totals 150 units.
Date
January 1
QS 5-5 (Algo) Perpetual: Inventory costing with FIFO LO P1
January 9
Required:
Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on
the FIFO…
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Labor Variances.
Verde Company produces wheels for bicycles. During the year, 656,000 wheels were produced. The actual labor used was 364,000 hours at $9.20 per hour. Verde
has the following labor standards: 1) $10.40 per hour; 2) 0.48 hour per wheel.
Required:
1. Compute the labor rate variance.
2. Compute the labor efficiency variance.
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A reconciliation of pretax financial statement income to taxable income is shown below for See Shipping for the year ended December 31, 2021, its first
year of operations. The income tax rate is 25%.
Pretax accounting income (income statement)
Installment income taxable upon receipt next year
000'009$
(000'0)
000'S
82
Warranty expense in excess of deductible amount
Tax depreciation in excess of income statement amount
(000'07)
Taxable income (tax return)
000's
What amount should See report as a noncurrent item related to deferred income taxes in its 2021 balance sheet?
Multiple Choice
Deferred income tax asset of $11,250.
Deferred income tax liability of $45,000.
Finacial…
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The following details relates to the operations of a company for budgeted output of 10000units; selling price- GHC100, total
variable cost- GH¢200000, and total fixed cost- GHC400000. At what quantity and value will the company breakeven?
O A. 5000units and GHC50000
O B. 5000units and GHC55000
OC. 4500units and GHC45000
O D. 4000unit and GHC40000
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1 AF Pri X M Question 1- Chapter 7, Assign X
Maps Porter's Five Forc...
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[The following information applies to the questions displayed below.]
Leach Incorporated experienced the following events for the first two years of its operations.
Year 1:
1. Issued $16,000 of common stock for cash.
2. Provided $84,600 of services on account.
3. Provided $42,000 of services and received cash.
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4. Collected $75,000 cash from accounts receivable.
5. Paid $44,000 of salaries expense for the year.
6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent
of the ending accounts receivable balance will be uncollectible.
7. Closed the revenue account.
8. Closed the expense accounts.
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Year 2:
1. Wrote off an uncollectible account…
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A stock has had the following year-end prices and dividends:
9.
Year
Price
Dividend
$ 64.33
71.20
$.60
3.
77.00
65
4
63.27
71
00:47:59
73.11
.80
79.75
.87
What are the arithmetic and geometric returns for the stock? (Do not round
intermediate calculations and enter your answers as a percent rounded to 2
decimal places, e.g., 32.16.)
Arithmetic average return
%
Geometric average return
%
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Problem 6-15 Project NPV and IRR
A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $27,400
per year for five years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the
foreseeable future. Company B pays corporate taxes at a rate of 21% and can claim 100% bonus depreciation on the
investment. Suppose the opportunity cost of capital is 10%. Ignore inflation.
ed
a. Calculate project NPV for each company. (Do not round intermediate calculations. Round your answers to the
nearest whole dollar amount.)
NPV
ces
Company A
Company B
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