2018 and a balance sheet as o (Answ Gross profit: 20. Selvam does not keep his t prepare trading and Profi Machinery Cash at bank Sundry debtors Stock Bills receivable Bank loan Sundry creditors Cash sales Cash purchases Wages Partia Advertisement Drawings Adjustments: Write off depreciation 10% c
Q: Nine Corporation contributes inventory (computers) to State University for use in its mathematics…
A: Solution:- Given, Nine Corporation contributes inventory to State University for use in its…
Q: How do I calculate the finished goods in Part 2?
A: Here to Calculate the details of finished goods for the working in process after consider the fact…
Q: A company with excess capacity must decide between scrapping or reworking units that do not pass…
A: Incremental income is the amount of extra money earned by putting an extra effort on products or…
Q: Happy Woolly Inc. provides the following information about its postretirement benefit plan for the…
A: Pension is a kind of income an employee starts receiving on monthly basis after his/her services…
Q: Sal Amato operates a residential landscaping business in an affluent suburb of St. Louis. In an…
A: Answer - Type I fertilizer: Price Variance: Actual quantity purchased x actual price( 5,000…
Q: i) Job number BB15 was completed and delivered during the period and the firm wishes to earn 33 and…
A: Job costing helps to identify the cost related to the individual work done. A job or work assigned…
Q: Mark's Meals produces frozen meals, which it sells for $9 each. The company uses the FIFO inventory…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: OptiLux is considering investing in an automated manufacturing system. The system requires an…
A: Net Present Value (NPV) :— It is the sum of present value of all cash flows. It is also calculated…
Q: 1. Identify what type of investment the Stallion stock is for Wallace. 2. Journalize the…
A: Introduction:- In this problem based on Intercorporate investments. which means any company make…
Q: During the month of June, the following merchandise transactions occurred: June 1 3 5 8 9 11 12…
A: Concord Book warehouse Limited distributes hardcover books to retail stores. Using the perpetual…
Q: Blossom Bottling Corporation is considering the purchase of a new bottling machine. The machine…
A: Net present value is one of the calculation used in capital budgeting. This is calculated by…
Q: Prepare a predistribution plan to determine the amount for which the partnership must sell the other…
A: SOLUTION
Q: Cala Manufacturing purchases land for $297,000 as part of its plans to build a new plant. The…
A: Introduction A Journal entry is a primary entry that records the financial transactions…
Q: scott withdrew from his ira 78,000 on nov 30 2019 which he inclided on 2019 tax teturn in 2921 he…
A: Here discuss the details of withdrawal of the fund from IRA account and redeposit and its tax…
Q: Which of these statement is TRUE for a standard cost system? A) Standard cost systems help managers…
A: Lets understand the basics. Standard cost is a cost which is decide by management to be incurred…
Q: ssued 32,000 shares of common stock at $10 per share. Reported a net income of $160,000. Paid…
A: Share Capital : It is the part of capital which is registered for issue of shares to the public…
Q: Cavy Company estimates that the factory overhead for the following year will be $2,034,500. The…
A: Predetermined overhead rate = $2,034,50031,300 hours = $65 per hour Applied overhead = 2,830 hours…
Q: Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company…
A: The full costing method that consider the production related fixed overhead in the income statement…
Q: Office Jungle Company sells plants and provides plant watering and pruning services to office…
A: Revenue should be recognise when Performance obligations satisfied and goods and services actually…
Q: 1.1 12 13 14 A mine buys mining machinery that costs R3.6 million. It depreciates at a rate of 12.5%…
A: 1.1
Q: Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Mr. Kevin Dates is the owner of an expanding business operating in bakery industry located in…
A: Should invest in the project whose net present value is higher. Net present value Present value of…
Q: Burt Ltd enters into a non-cancellable five-year lease agreement with Earnie Ltd on 1 July 2023. The…
A: Disclaimer : “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: You are looking at purchasing a new computer for online class. Computer A costs $4000 now, and you…
A: Computer A Computer B Cost of Purchase 4000 2500 Upgrade N.A at Year 2 End Upgrade Cost…
Q: Mission Manufacturing’s depreciation expense for the most recent year was $72,000 and its net income…
A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…
Q: The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash…
A: In case of liquidation of the partnership, the assets of the partnership are sold, liabilities are…
Q: a. Which mortgage will give you the lowest monthly payment? What will that payment be? How…
A: A house was purchased for $410,000. The down payment was $82,000 The amount for which mortgage…
Q: Accounting Based on the following data, what is the quick ratio, rounded to one decimal point?…
A: Quick ratio is calculated by dividing the quick assets by the total current liabilities. Quick ratio…
Q: In 2022, Leo construction traded in a light duty pickup truck that had a book value of $18,000. A…
A: In 2022, Leo construction bought a light duty pickup truck having a fair market value of $55,236.…
Q: When using a standard cost system what term is referred to what a product does cost? Group of answer…
A: Standard cost is the term used for the product should cost. Actual cost is the term for the product…
Q: RST Company reported the following 2021 information: Sales $600,000 CGS 320,000 Unearned revenue…
A: Answer :- Correct option is "a" that is $117,600. Explanation:- Computation of income from…
Q: 1. Compute the product cost per unit using variable costing. 2. Determine the cost of ending…
A: Variable Costing :- The cost which is varry on Per unit Basis. It is a Cost accounting techniques in…
Q: Assume bad debt expense is material to the company. Which of the following statements is correct…
A: The account receivables have debit balance and allowance for doubtful accounts is the contra asset…
Q: Justin Company's budget includes the following credit sales for the current year: September,…
A: Introduction: The cash collection cycle is the number of days it measures the return accounts…
Q: The centralized travel department of Bour Company has costs of $40,560. The department has serviced…
A: Travel service cost will be charged to both the divisions proportionally. Total cost will be divided…
Q: Innovative Products reported net income of $218,000. Beginning and ending inventory balances were…
A: Cash flow statement includes: Cash flows from operating activities Cash flows from investing…
Q: Given: Fixed Expenses Rent PhP40,023 Salaries…
A: Break-even point: Breakeven is the point where total expenses are equal to total sales. Break-even…
Q: A) LC Company is deciding whether to use the LIFO or FIFO method. Based on the following data,…
A: The FIFO method of inventory valuation is a method where the stock that comes first is sold out…
Q: Revenue from property taxes should be recorded in the General Fund: O When received. O When there is…
A: The revenues earned by the government or state from the taxes, fees, interest etc. are recorded in…
Q: mpany currently manufactures 52,000 units per year of a key compa er unit, fixed costs related to…
A: Incremental cost refers to the total expenses involved in order to produce an extra unit of a…
Q: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of…
A: Predetermined overhead rate is used to compute the overhead applied to the manufacturing company.…
Q: Inventories Materials January 1 January 31 302,000 278,000 Work in process 215,600 238,200 Finished…
A: The statement of cost of goods manufactured includes the direct and indirect costs incurred during…
Q: A new punching machine will cost $4,246. At the end of its 10 years useful life, the machine can be…
A: Answer:- Present value meaning:- The current value of a future sum of money or cash flows at a…
Q: On 1st January 2019, Brown Plc., had in issue, 800,000 ordinary shares with a par value of sh. 10…
A: Total No of Shares As on 2019 Ordinary Shares (1 Jan 2019 ) = 800,000 Ordinary Shares ( 31 Oct 2019…
Q: Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries.…
A: The revenue generated after deducting all the costs incurred on the making of the goods and serving…
Q: What is the difference between a direct cost and an opportunity cost? Can you show the difference…
A: For proper control and management decision, management is to be provided with the necessary data to…
Q: Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z.…
A: Activity-based costing, or ABC for short, is a way of allocating overhead and indirect expenses to…
Q: 1. Caroline is a single parent. Her annual net income is $42 000. She has $25 000 in savings.…
A: Calculation of the total expense (for Year) food = 125…
Q: On May 1, Splish Brothers Corporation purchased 2,700 shares of its $10 par value common stock at a…
A: journal entry of above transaction are as follows
Q: Currently the unit selling price of a product is $200, the unit variable cost is $110, and the total…
A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…
Step by step
Solved in 2 steps
- Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of 2019. Michelle currently uses the income statement method to record bad debt estimation at 4%. To manage earnings more efficiently, Michelle changes bed debt estimation to the balance sheet method at 4%. How much is the difference in net income between the income statement and balance sheet methods? A. $3,100 B. $13,800 C. $10,700 D. $77,500Dortmund Stockyard reports $896,000 in credit sales for 2018 and $802,670 in 2019. It has a $675,000 accounts receivable balance at the end of 2018, and $682,000 at the end of 2019. Dortmund uses the balance sheet method to record bad debt estimation at 8% during 2018. To manage earnings more favorably, Dortmund changes bad debt estimation to the income statement method at 6% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Dortmund Stockyard in 2019 as a result of its earnings management.Fortune Accounting reports $1,455,000 in credit sales for 2018 and $1,678,430 in 2019. It has an $825,000 accounts receivable balance at the end of 2018 and $756,000 at the end of 2019. Fortune uses the balance sheet method to record bad debt estimation at 7.5% during 2018. To manage earnings more favorably, Fortune changes bad debt estimation to the income statement method at 5.5% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Fortune in 2019 as a result of its earnings management.
- Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and state mcnt of cash flows: Long-term debt S 4,400 Interest expense S 398 Total liabilities 8,972 Net income 559 Total assets 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1.015 Operating income 1.223 Income tax expenses 266 Income taxes paid 150 Required: Calculate the following ratios for Rising Stars: (a) debt to equity, (b) debt to total assets, (c) long-term debt to equity, (d) times interest earned (accrual basis), and (e) times interest earned (cash basis). (Note: Round answers to three decimal places.) CONCEPTUAL CONNECTION Interpret these results. 3.What does it mean if a bond is callableBristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
- Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of 1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.The following information pertains to Luna Company as at September 30, 2020:a. Notes payable – bank, P35,000b. Accounts payable arising from purchase of goods, P1,125,000c. Dividends in arrears on preference shares, not yet declared, P250,000d. Income tax payable, P134,000e. Accrued liabilities, P42,000f. Mortgage payable, P2,250,000g. Customers’ deposits, P89,000h. Reserve for contingencies, P250,000What is the total amount of liabilities that should be reported on Luna's statement of financial position as at September 30, 2020?
- The following trial balance was extracted from the books of J. Brown as at 31 May 2021. DRCR $$ Purchases and Sales65,730 125,910 Stock at June 1, 202015,480 - Bank overdraft- 13,050 Capital- 21,600 Cash270 - Discounts4,320 2,880 Return inwards2,430 - Return outwards- 1,710 Carriage outwards6,480 - Carriage inwards2,850 - Rent and Rates5,220 - Provision for bad debts- 1,980 Machinery5,100 - Van9,300 - Provision for depreciation on Vans- 3,000 Provision for depreciation on Machinery- 1,500 Accounts Receivable and Payables35,730 18,180 Drawings8,640 - Wages and Salaries26,820 - General office expenses1,440 - 189,810 189,810 Notes:Closing stock $22,000Wages and salaries: accrual $900; Office expenses accrued $500Rent and rates prepaid $800Increase the provision for bad debts to $2,000Provision for depreciation Van 10% of cost, and Machinery 15% on the reducing balance method.(See requirements on next page.) Required:1: Prepare an Income Statement for the year ended May 31, 2021 2: From…Presented below is the trial balance of Grimjow Corporation at December 31, 2020. Debit Credit Cash $ 201,970 Sales $ 8,104,060 Debt Investments (trading) (at cost, $145,000) 157,060 Cost of Goods Sold 4,800,000 Debt Investments (long-term) 303,970 Equity Investments (long-term) 281,970 Notes Payable (short-term) 94,060 Accounts Payable 459,060 Selling Expenses 2,004,060 Investment Revenue 66,860 Land 264,060 Buildings 1,044,970 Dividends Payable 140,970 Accrued Liabilities 100,060 Accounts Receivable 439,060 Accumulated Depreciation-Buildings 152,000 Allowance for Doubtful Accounts 29,060 Administrative Expenses 903,860 Interest Expense 214,860 Inventory 601,970 Gain 83,860 Notes Payable (long-term) 904,970…The following data were taken from the balance sheet accounts of Culver Corporation on December 31, 2019. Current assets $512,000 Debt investments (trading) 577,000 Common stock (par value $10) 471,000 Paid-in capital in excess of par 154,000 Retained earnings 890,000 Prepare the required journal entries for the following unrelated items. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) A 5% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $42. (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 $98,000 and a fair value of $130,000.