need help plz… i did most can you plz check ty t be sure
ercise 6-6 (Part Level Submission)
Presented below are three unrelated situations.
1 attachments
Slide 1 of 1
attachment_1
attachment_1
UNFORMATTED ATTACHMENT PREVIEW
Exercise 129 The following data relate to the accounts of Edmiston Company. a. Unpaid salaries and wages at year end amount to $750. b. Edmiston Company owns bonds of another corporation that pay annual interest of $800. These bonds were purchased on April 1, 2017, and the next interest payment will be received on April 1, 2018. A two-year insurance policy was purchased on June 1, 2017. The $1,200 insurance premium was paid on that date and was debited to Prepaid Insurance. c. d. Service Revenue was credited for $900 on June 1, 2017. The amount represents a one-year advance payment for services to be performed by Edminston Company through May 31, 2018. e. The Supplies account shows a balance of $2,500 on December 31, 2017. A physical count of the supplies on hand at this date reveals a total of $1,000 available. Prepare the necessary adjusting journal entries indicated by each item for the year ended December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation salaries and a. w ages expense Debit Credit 750 salaries payable b.interest receivable 750 (800*9/12)=600 interest revenue insurance expense c. 600 (1200*7/12)= 350 prepaid insurance d. service revenue 350 375 unearned service revenue e.supplies expense (900*5/12)= 375 (2500-1000)=1500 supplies 1500 Exercise 132 The adjusted trial balance of Ryan Financial Planners appears below. RYAN FINANCIAL PLANNERS Adjusted Trial Balance December 31, 2017 Debit Cash $2,710 Accounts Receivable 2,270 Supplies 1,800 Equipment 15,900 Accumulated Depreciation—Equipment Accounts Payable Unearned Service Revenue Credit $3,975 3,200 4,375 Common Stock Retained Earnings Dividends Service Revenue Supplies Expense Depreciation Expense Rent Expense 10,000 4,390 1,500 4,120 520 2,490 2,870 $30,060 $30,060 Using the information from the adjusted trial balance, you are to prepare for the month ending December 31: 1. An income statement. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) RYAN FINANCIAL PLANNERS Income Statement Revenues $ service revenue 4120 Expenses $ supplies expenses 520 depreciation equipment 2490 rent expense 2870 Total Expenses 5880 $ Net Income / (Loss) (1760) 2. A retained earnings statement. RYAN FINANCIAL PLANNERS Retained Earnings Statement $ Retained Earnings, December 1 4390 Less : Net Income / (Loss) Dividends $ -1760 -1500 3260 $ Retained Earnings, December 31 1130 3. A balance sheet. (List Assets in order of liquidity.) RYAN FINANCIAL PLANNERS Balance Sheet For the Month Ended December 31, 2017 Assets $ cash 2710 accounts recievables 2270 supplies 1800 $ equipment 15900 Less : 3975 6780 accumulated deprecaition $ Total Assets 18705 Liabilities and Stockholders’ Equity Liabilities accounts payable unearned service revenue $ 3200 4375 $ Total Liabilities 7575 Stockholders’ Equity common stock retained earnings 10000 4390 14390 Total Liabilities and Stockholders’ Equity $ 21965 Brief Exercise 3-2 Vaughn Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions. (If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Aug. 2 Invested $13,140 cash and $2,560 of equipment in the business. 7 Purchased supplies on account for $490. (Debit asset account.) 12 Performed services for clients, for which $1,378 was collected in cash and $686 was billed to the clients. 15 Paid August rent $592. 19 Counted supplies and determined that only $281 of the supplies purchased on August 7 are still on hand. Date Aug. 2 Account Titles and Explanation Debit cash account 13140 equipment account Aug. 7 supplies account 2560 490 cash account Aug. 12 Aug. 15 cash account 490 1378 debtors account 686 rent account 592 cash account Aug. 19 592 supplies cash account Credit (490-281)=209 209 Brief Exercise 3-8 Included in Culver Company’s December 31 trial balance is a note receivable of $7,920. The note is a 4-month, 10% note dated October 1. Prepare Culver’s December 31 adjusting entry to record $198 of accrued interest, and the February 1 journal entry to record receipt of $8,184 from the borrower. (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. Record journal entries in the order presented in the problem.) Date Dec. 31 Account Titles and Explanation interest recievables Debit 198 interest revenue Feb. 1 cash 10%note recievable interest recievable interest revenue Credit 198 8184 7920 198 66 Brief Exercise 4-3 Skysong Corporation had net sales of $2,422,100 and interest revenue of $40,200 during 2017. Expenses for 2017 were cost of goods sold $1,453,500, administrative expenses $220,100, selling expenses $291,900, and interest expense $53,400. Skysong’s tax rate is 30%. The corporation had 100,200 shares of common stock authorized and 71,770 shares issued and outstanding during 2017. Prepare a condensed multiple-step income statement for Skysong Corporation. (Round earnings per share to 2 decimal places, e.g. 1.48.) SKYSONG CORPORATION Income Statement $ $ $ $ Exercise 4-2 Presented below is information related to Headland Company at December 31, 2017, the end of its first year of operations. Sales revenue Cost of goods sold $287,320 126,540 Selling and administrative expenses 53,200 Gain on sale of plant assets 31,270 Unrealized gain on available-for-sale investments 10,590 Interest expense 5,720 Loss on discontinued operations 10,870 Dividends declared and paid 4,570 Compute the following: $ (a) Income from operations (b) Net income (c) Comprehensive income (d) Retained earnings balance at December 31, 2017 $ $ $ Brief Exercise 4-7 Ivanhoe Company has recorded bad debt expense in the past at a rate of 1.5% of accounts receivable, based on an aging analysis. In 2017, Ivanhoe decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $399,500 instead of $291,800. In 2017, bad debt expense will be $136,600 instead of $92,470. If Ivanhoe’s tax rate is 30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate? (Do not leave any answer field blank. Enter 0 for amounts.) $ The cumulative effect of changing the estimated bad debt rate Exercise 104 Presented below are changes in the account balances of Wenn Company during the year, except for retained earnings. Increase (Decrease) Increase (Decrease) Cash $29,160 Accounts payable $32,740 Accounts receivable (net) (17,690) Bonds payable (18,430) Inventory 52,280 Common stock 61,800 Plant assets (net) 47,350 Paid-in capital 16,740 The only entries in Retained Earnings were for net income and a dividend declaration of $17,560. (a) Change in assets= 29160-17690+52280+47350= 111100 (increase) Change in liabilities= 32740-18430=14310 (increase) Change in stockholders equity= 96790 Net increase= 96790 Change in common stock= 61800 Additional paid in capital= 16740 Net increase accounted for =78540 Increase in retained earnings (net income)= 32560 Compute the net income for the current year. Net income $ 32560 Question 13 The Martinez, Inc. sold 10,940 season tickets at $2,180 each. By December 31, 2017, 16 of the 40 home games had been played. What amount should be reported as a current liability at December 31, 2017? Current liability $ 14309520 Brief Exercise 5-2 Novak Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2017: Cash $9,540, Land $46,700, Patents $15,300, Accounts Receivable $94,080, Prepaid Insurance $5,400, Inventory $35,600, Allowance for Doubtful Accounts $4,520, and Equity Investments (to be sold in the next quarter) $14,550. Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.) NOVAK CORPORATION Balance Sheet (Partial) For the Year Ended December 31, 2017 Current Assets $ cash 9540 trading securities accouns recievable 14550 $ 94080 Less : (4520) 89560 allow ance for doubtful debts inventory 35600 prepaid insurance 5400 Total Current Assets Brief Exercise 5-8 $ 154560 Included in Sandhill Company’s December 31, 2017, trial balance are the following accounts: Accounts Payable $221,400, Pension Liability $380,600, Discount on Bonds Payable $31,100, Unearned Rent Revenue $43,600, Bonds Payable $406,600, Salaries and Wages Payable $29,000, Interest Payable $13,460, and Income Taxes Payable $30,460. Prepare the current liabilities section of the balance sheet. SANDHILL COMPANY Balance Sheet (Partial) For the Year Ended December 31, 2017 Current Liabilities $ accounts payable 221400 unearned revenue 43600 salaries and w ages 29000 interest payable 13460 income taxes 30460 $ Total Current Liabilities 337920 Brief Exercise 5-9 Included in Waterway Company’s December 31, 2017, trial balance are the following accounts: Accounts Payable $244,800, Pension Liability $375,700, Discount on Bonds Payable $34,400, Unearned Rent Revenue $47,800, Bonds Payable $401,800, Salaries and Wages Payable $33,900, Interest Payable $16,510, and Income Taxes Payable $36,900. Prepare the long-term liabilities section of the balance sheet. WATERWAY COMPANY Balance Sheet (Partial) December 31, 2017 Long-term Liabilities pension liability $ 375700 Less : $ (34400) discount on bonds bonds payable Long-term Liabilities 401800 $ 725100 Brief Exercise 5-13 Blossom Company reported 2017 net income of $153,000. During 2017, accounts receivable increased by $16,200 and accounts payable increased by $9,529. Depreciation expense was $41,700. Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLOSSOM COMPANY Cash Flow Statement For the Year Ended December 31, 2017 Cash Flow s from Operating Activities $ Net Income 153000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities $ Depreciation Expense 41700 Increase in Accounts Payable 9529 Decrease in Accounts Receivable (16200) 35029 $ Net Cash Provided by Operating Activities 188029 Brief Exercise 5-14 Sheridan Corporation engaged in the following cash transactions during 2017. Sale of land and building $194,000 Purchase of treasury stock 46,600 Purchase of land 37,400 Payment of cash dividend 89,200 Purchase of equipment 53,400 Issuance of common stock 155,400 Retirement of bonds 104,500 Compute the net cash provided (used) by investing activities. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).) SHERIDAN CORPORATION Statement of Cash Flows (Partial) For the Year Ended December 31, 2017 Cash Flow s from Investing Activities Sale of Land and Building $ 194000 Purchase of Equipment (53400) Purchase of Land (37400) $ Cash Flow s from Investing Activities 103200 Brief Exercise 5-15 Buffalo Corporation engaged in the following cash transactions during 2017. Sale of land and building $188,750 Purchase of treasury stock 45,400 Purchase of land 39,400 Payment of cash dividend 94,300 Purchase of equipment 54,300 Issuance of common stock 149,500 Retirement of bonds 101,700 Compute the net cash used (provided) by financing activities. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).) BUFFALO CORPORATION Statement of Cash Flows (Partial) For the Year Ended December 31, 2017 Net Cash Provided by Financing Activities Issuance of Common Stock $ 149500 Retirement of Bonds 101700 Payment of Cash Dividend 94300 Purchase of Treasury Stock 45400 Cash Flow s from Financing Activities $ 390900 Brief Exercise 6-2 Tony Bautista needs $29,700 in 8 years. Click here to view factor tables What amount must he invest today if his investment earns 12% compounded annually? What amount must he invest if his investment earns 12% annual interest compounded quarterly? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Investment at 12% annual interest $ 11995 Investment at 12% annual interest, compounded quarterly $ 11534 Brief Exercise 6-6 Adams Madison needs $317,000 in 10 years. Click here to view factor tables How much must he invest at the end of each year, at 12% interest, to meet his needs? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Investment amount $ 102066 Brief Exercise 6-15 Sweet Inc. issues $2,088,800 of 9% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 10%. Click here to view factor tables What amount will Sweet receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Amount received by Sweet when bonds w (Cf1/ 1.09^10)+ (cf1/ 1.10^10)= $1,687,657 5Exercise 6-12 The Splish Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Splish has decided to locate a new factory in the Panama City area. Splish will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three very similar buildings that will meet their needs. Building A: Purchase for a cash price of $616,000, useful life 25 years. =616000 Building B: Lease for 25 years with annual lease payments of $70,700 being made at the beginning of the year. 70700* 8.78432= 621051 Building C: Purchase for $654,700 cash. This building is larger than needed; however, the excess space can be sublet for 25 years at a net annual rental of $6,820. Rental payments will be received at the end of each year. The Splish Inc. has no aversion to being a landlord. Pv= 6820*8.78432= 59909.06 Cash- pv 654700- 59909.06= $594791 Click here to view factor tables In which building would you recommend that The Splish Inc. locate, assuming a 12% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Net Present Value $ Building A 616000 Building B 621051 Building C 594791 $ $ The Splish Inc. should locate itself in (smallest) Building C Brief Exercise 18-2 On May 10, 2017, Stellar Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2017. Greig agrees to pay the full contract price of $2,060 on July 15, 2017. The cost of the goods is $1,380. Stellar delivers the product to Greig on June 15, 2017, and receives payment on July 15, 2017. Prepare the journal entries for Stellar related to this contract. Either party may terminate the contract without compensation until one of the parties performs. (Credit account titles are automatically indented when the 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.) Date Jul. 15, 2017 Account Titles and Explanation cash ac Debit Credit 2060 accounts receivable 2060 (To record contract entered into) Jul. 15, 2017 cost of goods sold 1380 inventory 1380 (To record sales) (To record cost of goods sold) Jul. 15, 2017 cash 2000 accounts recievables 2000 (To record payment received) Brief Exercise 18-8 Presented below are three revenue recognition situations. (a) Groupo sells goods to MTN for $997,000, payment due at delivery. (b) Groupo sells goods on account to Grifols for $761,000, payment due in 30 days. (c) Groupo sells goods to Magnus for $470,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $437,000. Indicate the transaction price for each of these situations and when revenue will be recognized. (a) (b) (c) $ Transaction Price $ 997000 Revenue will be recognized At delivery $ 761000 At the point of sale 437000 At the point of sale Brief Exercise 18-10 On March 1, 2017, Pronghorn Company sold goods to Goosen Inc. for $708,000 in exchange for a 5year, zero-interest-bearing note in the face amount of $1,193,021 (an inputed rate of 11%). The goods have an inventory cost on Pronghorn’s books of $374,000. (a) Prepare the journal entries for Pronghorn on March 1, 2017. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Mar. 1, 2017 goods revenue discount on notes payable Debit Credit 708000 2010309-7080 notes payable 70800 (To record sales) inventory costs 374000 (To record cost of goods sold) (b) Prepare the journal entries for Pronghorn on December 31, 2017. (Credit account titles are automatically indented when the 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.) Date Dec. 31, 2017 Account Titles and Explanation Debit Credit no entry no entry Brief Exercise 18-13 On July 10, 2017, Metlock Music sold CDs to retailers on account and recorded sales revenue of $676,000 (cost $520,520). Metlock grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2017, retailers returned CDs to Metlock and were granted credit of $84,800. Prepare Metlock’s journal entries to record (a) the sale on July 10, 2017, and (b) $84,800 of returns on October 11, 2017, and on October 31, 2017. Assume that Metlock prepares financial statement on October 31, 2017. (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.) No. Date Account Titles and Explanation (a) Jul. 10, 2017 Debit Credit refund liability 101400 sales revenue 676000 (To record sales) estimated inventory returns 78078 inventory 520520 (To record cost of goods sold) (b) Oct. 11, 2017 refund liability 84800 accounts recievable 84800 (To record sales returns) returned inventory 69200 estimate inventory returns 69200 (To record cost of goods returned) Oct. 31, 2017 no entry Question 17 Classify the following items as (1) operating, (2) investing, (3) financing, or (4) significant noncash investing and financing activities, using the direct method. (a) Cash payments to employees. Operating activity (b) Redemption of bonds payable. Financing activity (c) Sale of building at book value. Investing activity (d) Cash payments to suppliers. Operating activity (e) Exchange of equipment for furniture. Significant noncash investing and financing activities (f) Issuance of preferred stock. (g) Cash received from customers. Investing activity (h) Purchase of treasury stock. Financing activity (i) Significant noncash investing and financing activities Issuance of bonds for land. (j) Payment of dividends. Financing activity (k) Purchase of equipment. Investing activity (l) Cash payments for operating expenses. Investing activity Brief Exercise 23-1 Novak Corporation is preparing its 2017 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak’s 2017 statement of cash flows. Code Letter A D R-I P-I R-F P-F N Effect Added to net income in the operating section Deducted from net income in the operating section Cash receipt in investing section Cash payment in investing section Cash receipt in financing section Cash payment in financing section Noncash investing and financing activity (a) Purchase of land and building. P-I (b) Decrease in accounts receivable. A (c) Issuance of stock. R-F (d) Depreciation expense. A (e) Sale of land at book value. R-I (f) Sale of land at a gain. R-I and D (g) Payment of dividends. P-F (h) Increase in accounts receivable. D (i) Purchase of available-for-sale debt investment. P-I (j) Increase in accounts payable. A (k) Decrease in accounts payable. D (l) Loan from bank by signing note. R-F (m) Purchase of equipment using a note. N (n) Increase in inventory. D (o) Issuance of bonds. R-F (p) Redemption of bonds payable. P-F (q) Sale of equipment at a loss. R-I and A (r) Purchase of treasury stock. P-F Brief Exercise 23-7 Cullumber Corporation had January 1 and December 31 balances as follows. 1/1/17 Inventory Accounts payable 12/31/17 $77,000 $96,000 46,000 55,000 For 2017, cost of goods sold was $534,000. Compute Cullumber’s 2017 cash payments to suppliers. Inventory sold= 96000-77000= 19000 Increased accounts payable= 9000 534000-9000-19000 Cash payments to suppliers $ $506000 Brief Exercise 23-8 In 2017, Pronghorn Corporation had net cash provided by operating activities of $479,000, net cash used by investing activities of $896,000, and net cash provided by financing activities of $606,000. At January 1, 2017, the cash balance was $362,000. Compute December 31, 2017, cash. Cash, December 31, 2017 $ 173000 Brief Exercise 23-9 Pharoah Corporation had the following 2017 income statement. Revenues $100,000 Expenses 60,000 $40,000 In 2017, Pharoah had the following activity in selected accounts. Accounts Receivable 1/1/17 Revenues 12/31/17 21,000 Write-offs 100,000 Collections 1,100 88,000 31,900 Allowance for Doubtful Accounts 1/1/17 Write-offs 1,100 Bad debt expense 12/31/17 1,100 1,900 1,900 (a) Prepare Pharoah’s cash flows from operating activities section of the statement of cash flows using the direct method. Pharoah Corporation Statement of Cash Flows-Direct Method (Partial) For the Year Ended December 31, 2017 Cash Flow s from Operating Activities $ Cash Received from Customers 88000 Cash Payments for Expenses (60000-1900)=58100 Net Cash Provided by Operating Activities $ 29900 (b) Prepare Pharoah’s cash flows from operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net accounts recievabls 21000-1100=19900 31900-19000=12900 Pharoah Corporation Statement of Cash Flows-Indirect Method (Partial) For the Year Ended December 31, 2017 Cash Flow s from Operating Activities $ Net Income 40000 Increase in Net Accounts Receivable 19900-12900 Net Cash Provided by Operating Activities $ 33000 Brief Exercise 24-8 Answer each of the questions in the following unrelated situations. (a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $488,000, what is the amount of current liabilities? Current Liabilities $ 97600 (b) A company had an average inventory last year of $206,000 and its inventory turnover was 6. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year? (Round answer to 0 decimal places, e.g. 125.) Average Inventory $ 154500 (c) A company has current assets of $99,000 (of which $44,000 is inventory and prepaid items) and current liabilities of $44,000. What is the current ratio? What is the acid-test ratio? If the company borrows $15,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be? (Round answers to 2 decimal places, e.g. 2.50.) Current Ratio 2.25 :1 Acid Test Ratio 1.25 :1 New Current Ratio 1.93 :1 New Acid Test Ratio 1.17 :1 (d) A company has current assets of $572,000 and current liabilities of $257,000. The board of directors declares a cash dividend of $190,000. What is the current ratio after the declaration but before payment? What is the current ratio after the payment of the dividend? (Round answers to 2 decimal places, e.g. 2.50.) Current ratio after the declaration but before payment 2.23 :1 Current ratio after the payment of the dividend 1.49 :1 Exercise 24-3 Culver Company is involved in four separate industries. The following information is available for each of the four industries. Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets W $61,016 $16,780 $163,270 X 10,510 2,550 81,635 Y 26,300 (3,240) 19,705 Z 7,374 1,210 16,890 $105,200 $17,300 $281,500 Determine which of the operating segments are reportable based on the: 10%*105200 10%*17300=1730 10%281500= 28150 Reportable Segments (a) Revenue test. W&Y (b) Operating profit (loss) test. W&X (c) Identifiable assets test. W&X
Purchase answer to see full attachment
Tags: acc 421