On December 18, 2020, Stephanie Corporation acquired 100 percent of .pdf

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On December 18, 2020, Stephanie Corporation acquired 100 percent of a Swiss company for 4.012 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was $1.00 = CHF 1. On December 18, 2020, the book and fair values of the subsidiarys assets and liabilities were as follows: Cash CHF 812,000 Inventory 1,312,000 Property, plant, and equipment 4,012,000 Notes payable (2,124,000 ) Stephanie prepares consolidated financial statements on December 31, 2020. By that date, the Swiss franc has appreciated to $1.10 = CHF 1. Because of the year-end holidays, no transactions took place prior to consolidation. Determine the translation adjustment to be reported on Stephanies December 31, 2020, consolidated balance sheet, assuming that the Swiss franc is the Swiss subsidiarys functional currency. What is the economic relevance of this translation adjustment? Determine the remeasurement gain or loss to be reported in Stephanies 2020 consolidated net income, assuming that the U.S. dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss? a) Translation adjustment :______ : $ ? b) ____________ $_____?.

Education

Fred and George have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $10,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash $ 100,000 Liabilities $ 80,000 Noncash assets 200,000 Fred, capital 100,000 George, capital 120,000 Total assets $ 300,000 Total liabilities and capital $ 300,000 1. Prepare journal entries for the following transactions: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Distributed safe cash payments to the partners. b. Paid $40,000 of the partnership’s liabilities. c. Sold noncash assets for $220,000. d. Distributed safe cash payments to the partners. e. Paid all remaining partnership liabilities of $40,000. f. Paid $8,000 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Ex. 2 A local partnership is to be liquidated. Commissions and other liquidation expenses are expected to total $19,000. The business’s balance sheet prior to the commencement of liquidation is as follows: Cash $ 27,000 Liabilities $ 40,000 Noncash assets 254,000 Simpson, capital (20%) 18,000 Hart, capital (40%) 40,000 Bobb, capital (20%) 48,000 Reidl, capital (20%) 135,000 Total assets $281,000 Total liabilities and capital $281,000 Prepare a predistribution plan for this partnership. Partner Capital Balance Loss Allocation Maximum loss that can be absorb Schedule 1 Sampson Hart Bobb Reidl Schedule 2 Hart Bobb Reidl Schedule 3 Bobb Reidl Sampson Hart Bobb Reidl Reported balances Assumed loss Schedule 1 Adjusted Balances Assumed loss Schedule 2 Adjusted balances Assumed loss Schedule 3 Adjusted balances EX. 3 The Prince-Robbins partnership has the following capital account balances on January 1, 2015: Prince, Capital $ 70,000 Robbins, Capital 60,000 Prince is allocated 80 percent of all profits and losses with the remaining 20 percent assigned to Robbins after interest of 10 percent is given to each partner based on beginning capital balances. On January 2, 2015, Jeffrey invests $37,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 10 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50%), Robbins (30%), and Jeffrey (20%). In 2015, the partnership reports a net income of $15,000. a. Prepare the journal entry to record Jeffrey entrance into the partnership on January 2, 2015. (If no entry .

Kerry Manufacturing Company is a German subsidiary of a U.S. company.pdf

feelinggift

Kerry Manufacturing Company is a German subsidiary of a U.S. company. Kerry records its operationsand prepares financial statements in euros. However, its functional currency is the British pound.Kerry was organized and acquired by the U.S. company on June 1, 20X4. The cumulative translationadjustment as of December 31, 20X6, was $79,860. The value of the subsidiary\'s retained earnings expressedin British pounds and U.S. dollars as of December 31, 20X7, was 365,000 pounds and $618,000, respectively.On March 1, 20X7, Kerry declared a dividend of 120,000 euros. The trial balance of Kerry in euros as ofDecember 31, 20X7, is as follows:DebitCreditCash240,000Accounts Receivable (net)2,760,000Inventory (at cost)3,720,000Marketable Securities (at cost)2,040,000Prepaid Insurance210,000Depreciable Assets8,730,000Accumulated Depreciation1,417,000Cost of Goods Sold17,697,000Selling, General, and Administrative Expense4,762,000Sales Revenue26,430,000Investment Income180,000Accounts Payable2,120,000Unearned Sales Revenue960,000Loans and Mortgage Payable5,872,000Common Stock1,500,000Paid-in Capital in Excess of Par210,000Retained Earnings1,470,000 Total40,159,00040,159,000The marketable securities were acquired on November 1, 20X6, and the prepaid insurance was acquired onDecember 1, 20X7. The cost of goods sold and the ending inventory are calculated by the weighted-averagemethod.The following items are measured in pound at the December 31, 20x7.EurosPoundsAccumulated depreciationDepreciable Assets8,730,0002,671,380Cost of Goods Sold17,697,0005,262,294Selling, General, Admin. Expense4,762,0001,415,886Accumulated Depreciation1,417,000773,915Sales Revenue26,430,0007,866,030On November 1, 20X6, Kerry received a customer prepayment valued at 3,000,000 euros. On February 1,300000020X7, 2,040,000 euros of the prepayment was earned. The balance remains unearned as of December 31,204000020X7.960000Relevant exchange rates are as follows:Pounds/Euro$/PoundJune 1, 20X40.31$1.60March 1, 20X60.3$1.64November 1, 20X60.305$1.65December 31, 20X60.31$1.68February 1, 20X70.302$1.67March 1, 20X70.3$1.66December 1, 20X70.29$1.64December 31, 20X70.288$1.6420X7 average0.297$1.66Required:Prepare a remeasured and translated trial balance of the Kerry ManufacturingCompany as of December 31, 20X7.ANS:Kerry Manufacturing CompanyTrial Balance TranslationDecember 31, 20X7RelevantRelevantExchangeExchangeBalance inRateBalance inRateBalance inAccountEuros(Pds/Euros)Pounds($/Pds)DollarsCash240,000Accounts Receivable (net)2,760,000Inventory (at cost)3,720,000Marketable Securities (at cost)2,040,000Prepaid Insurance210,000Depreciable Assets8,730,000Cost of Goods Sold17,697,000Selling, General, Admin. Expense4,762,000Exchange LossTotal Debits40,159,00012,183,00120,117,316Accumulated Depreciation1,417,000Sales Revenue26,430,000Investment Income180,000Accounts Payable2,120,000Unearned Sales Revenue960,000Loans and Mortgage Payable5,872,000Common Stock1,500,000Paid-in Capital in Excess of Par.

Pararel quiz-intermediate-accounting-11Farah Fauziah Hilman

Chapter10 International Finance Management

Piyush Gaur

1) Reen Lawns, Inc., performs adjusting entries every month, but c.docx

dorishigh

1) Reen Lawns, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The company’s year-end adjusted trial balance dated December 31, 2015, was: GREEN LAWNS, INC. Adjusted Trial Balance December 31, 2015 Cash $ 182,200 Accounts receivable 9,000 Supplies 600 Equipment 24,000 Accumulated depreciation: equipment $ 10,000 Accounts payable 3,000 Income taxes payable 7,000 Capital stock 50,000 Retained earnings 90,000 Dividends 4,000 Lawn care revenue earned 192,000 Salary expense 104,000 Supply expense 2,400 Advertising expense 600 Depreciation expense: equipment 2,000 Income taxes expense 23,600 $ 352,000 $ 352,000 a-1. Prepare an income statement for the year ended December 31, 2015. a-2. Prepare a statement of retained earnings for the year ended December 31, 2015. a-3. Prepare the company's balance sheet dated December 31, 2015. (Amounts to be deducted should be indicated by a minus sign.) b. Does the company appear to be liquid? No Yes c. Has the company been profitable in the past? No Yes 2) Reen Lawns, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The company’s year-end adjusted trial balance dated December 31, 2015, was: GREEN LAWNS, INC. Adjusted Trial Balance December 31, 2015 Cash $ 182,200 Accounts receivable 9,000 Supplies 600 Equipment 24,000 Accumulated depreciation: equipment $ 10,000 Accounts payable 3,000 Income taxes payable 7,000 Capital stock 50,000 Retained earnings 90,000 Dividends 4,000 Lawn care revenue earned 192,000 Salary expense 104,000 Supply expense 2,400 Advertising expense 600 Depreciation expense: equipment 2,000 Income taxes expense 23,200 $ 352,000 $ 352,000 a. Prepare all necessary closing entries at December 31, 2015. 1. Record the entry to close Lawn Care Revenue earned to income summary 2. REcord the entry to close all expense accounts to income summary 3. Record the entry to transfer net income earned in 2015 to retained earnings account 4. Record the entry to close dividends declared in 2015 to retained earnings account. Prepare an after-closing trial balance dated December 31, 2015. · Record the entry to close all expense accounts to income summary. · Record the entry to close all expense accounts to income summary. 3) Cat Fancy, Inc., has provided the following information from its most current financial statements: Total revenue $ 125,000 Total expenses 80,000 Total current assets 32,000 Total current liabilities 8,000 Total stockholders' equity, January 1, 2015 74,000 Total stockholders' equity, December 31, 2015 76,000 Compute the company’s net income per ...

Question 1On January 1, 2015, Portia Ltd. issued shares worth.docx

makdul

Question 1 On January 1, 2015, Portia Ltd. issued shares worth $1,120,000 to Storm Ltd. to acquire 80% of Storm’s outstanding shares. On the acquisition date, Storm’s statement of financial position shows share capital of $420,000 and retained earnings of $777,000. At the acquisition date, all of Storm’s identifiable assets and liabilities equaled their fair values with the exception of the following: Inventories (fair value exceeded book value by $14,000) Investments (fair value exceeded book value by $14,000) Equipment (fair value exceed net book value by $105,000) At the acquisition date, Storm’s accumulated amortization account for the equipment had a balance of $805,000. As of the acquisition date, Storm’s equipment had a remaining useful life of 10 years. Additional information: · Portia records its investments using the cost method. · Portia uses the entity theory method of consolidation. · In 2017, Portia sold all its investments for a gain of $63,000. · In 2018, Portia purchased equipment from Storm for $127,400. At the sale date, Storm’s net book value of the equipment was $98,000. Storm had originally purchased the equipment for $140,000. After the purchase, Portia amortized the equipment at a rate of $18,200 per year for the remaining 7 years of its useful life, taking a full year of amortization in 2018. · During 2019, Storm purchased goods from Portia. At the end of 2019, Storm still had $28,000 of these goods in inventory. Portia had earned a gross margin of 40% on the sale. The goods were sold to external customers in 2020. · During 2019, Portia purchased goods from Storm. At the end of 2019, Portia still had $140,000 of these goods in inventory. Storm had earned a gross margin of 40% on the sale. The goods were sold to external customers in 2020. · During 2020, Portia sold goods of $140,000 to Storm. Portia earned a gross profit of $56,000 on this sale. At the end of 2020, Storm still had $56,000 worth of goods in inventory. · During 2020, Storm sold goods of $980,000 to Portia at a gross margin of 40%. At the end of 2020, Portia still had 10% of the goods in inventory. · During 2020, Portia received $126,000 in royalties from Storm. Between January 1, 2015 and December 31, 2019, Portia received $700,000 in royalties from Storm. The financial statements for Portia and Storm for the year ended December 31, 2020 are presented on the following pages. Statement of Financial Position As of December 31, 2020 Portia Ltd.Storm Ltd. Assets: Current assets: Cash $ 70,000 $ 28,000 Accounts receivable 210,000 224,000 Inventory 252,000140,000 532,000 392,000 Noncurrent assets: Land 140,000 - Equipment 7,000,000 3,780,000 Accumulated amortization, equipment (2,478,000) (1,736,000) Investment in Storm 1,120,000 ____-___ 5,782,000 2,044,000 Total assets $ 6,314,000 $ 2,436,000 ...

I apologize this 1 question has numerous parts. I didnt want to s.pdf

jeetumordhani

I apologize: this 1 question has numerous parts. I didn\'t want to split it up in to separate questions and confuse others. Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balanoe sheet amounts at December 31, 2014, were inventory, S53,900; total assets, $199,400; common stock, 588,000; and retained earnings, 344,392.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold S453,600 298,850 Gross profit Operating expenses Interest expense 158,750 98,800 4,600 Income before taxes Income taxes 53,350 21,492 Net income S 31,858 CABOT CORPORATION Balance Sheet December 31, 2015 Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) S 18,000 9,200 32,200 000 38,150 2,800 151,300 Liabilities and Equity Accounts payable Accrued Income taxes payable Long- term note payable, secured S 17,500 4,800 4,700 wages payable 5, Prepaid expenses Plant assets, net by mortgage on plant assets Common stod Retained earnings 83,400 88,000 76,250 Total assets S254,650 Total liabilities and equity S254,650 These are short-term notes receivable arising from customer (trade) sales. Required: Compute the following: (1) current ratio, (2) acid- test ratio, (3) days sales uncollected, (4) inventory turnover, (5) days\' sales in inventory, (8) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders\' equity Do not round intermediate calculations.) Choose Numerator: | Choose Denominator: | = Current Ratio Current ratio 2015 to 1 Solution Answer to Part 1. Current Ratio = Current Assets / Current Liabilities Current Assets = Cash + Short Term Investments + Accounts Receivable, net + Notes Receivable (Trade) + Merchandise Inventory + Prepaid Expenses Current Assets = $16,000 + $9,200 + $32,200 + $5,000 + $38,150 + $2,800 Current Assets = $103,350 Current Liabilities = Accounts Payable + Accrued Wages Payable + Income Taxes Payable Current Liabilities = $17,500 + $4,800 + $4,700 Current Liabilities = $27,000 Current Ratio = 103,350 / 27,000 Current Ratio = 3.83 to 1 Answer to Part 2. Acid-Test Ratio = Quick Assets / Current Liabilities Quick Assets = Current Assets – Merchandise Inventory – Prepaid Expenses Quick Assets = $103,350 - $38,150 - $2,800 Quick Assets = $62,400 Acid-Test Ratio = 62,400 /27,000 Acid-Test Ratio = 2.31 to 1 Answer to Part 3. Days Collected Sales = Current Receivable / Net Sales * 365 Current Receivable = $32,200 + $5,000 = $37,200 Days Collected Sales = 37,200 / 453,600 * 100 Days Collected Sales = 29.93 days Answer to Part 4. Inventory Turnover Ratio = Cost of goods sold / Average Inventory Average Inventory = (38,150 + 53,900) / 2 Average Inventory = $46,025 Inventory Turnover Ratio = 296,850 / 46,025 Inventory Turnover Ratio = 6.45 times Answer to Part 5. Days’ Sales in Inventory = Average Inventory / Cost of Goods Sol.

This is for $7.70 per share... not $7.20Thank you.. The Holtz .pdf

eyewaregallery

This is for $7.70 per share... not $7.20 Thank you.. The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.70 per share on January 1, 2014. The remaining 20 percent of Devine\'s shares also traded actively at $7.70 per share before and after Holtz\'s acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine\'s underlying accounts except that a building with a 5-year life was undervalued by remaining life had a $75,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $290,000 $81,000 and a fully amortized trademark with an estimated 10-year Following are the separate financial statements for the year ending December 31, 2015 HoltzDevine Corporation Inc. $ (760,000) $(365,250) Sales Cost of goods sold Operating expenses Dividend income 234,000 133,000 319,000 107,250 (16,000) Net income $ (223,000) $(125,000) Retained eamings, 1/1/15 Net income (above) Dividends declared $ (709,000) $(360,000) (223,000) (125,000) 90,00020,000 Retained earnings, 12/31/15 S (842,000) $(465,000) Current assets Investment in Devine, Inc Buildings and equipment (net) Trademarks s 166,000 $ 199,000 616,000 905,000389,000 160,000226,000 Total assets $1,847,000 $ 814,000 s (685,000 $249.000) Liabilities Common stock Retained eamings, 12/31/15 (above) (320,000) (100,000) (842,000) (465,000) Total liabilities and equities $(1,847,000) $(814,000) At year-end, there were no intra-entity receivables or payables Solution SOLUTION: a) Consolidation Worksheet: HOLTZ CORPORATION AND DEVINE INC Consolidated Worksheet for the Year Ending December 31, 2015 Consolidated Entries Holtz Corporation Devine Inc. Debit Credit NCI Consolidated Sales -760000 -365250 -1125250 Cost of Goods Sold 234000 133000 367000 Operating Expense 319000 107250 23700 449950 Dividend Income -16000 16000 0 Net Income -223000 -125000 Consolidated Net Income -308300 NCI in Consolidated Net Income -20260 20260 Holtz\'s Interest in Consolidated Income -288040 Retained Earnings on 1/1 -709000 -360000 360000 37040 -746040 Net Income (Consolidated Above) -223000 -125000 -288040 Dividend Declared 90000 20000 16000 4000 70000 Retained earnings on 12/31 -842000 -465000 -964080 Current Assets 166000 199000 365000 Investment in Devine 616000 37040 653040 0 Building and Equipment 905000 389000 64800 16200 1342600 Trademarks 160000 226000 67500 7500 446000 Goodwill 0 0 224000 224000 Total Assets 1847000 814000 2377600 Liabilities -685000 -249000 -934000 Common Stock -320000 -100000 100000 -320000 Retained earnings (Consolidated Above) -842000 -465000 -964080 NCI in Devine on 1/1 78000 71260 -149260 NCI in Devine on 12/31 -165520 -165520 Total Liabilities and Equities -1847000 -814000 -2383600 Working Notes: 1. Calculation of Goodwill or Gain on Bargain purchase Total Holtz NCI Fair Value of Consideration 770000 616000 154000 Less: Book Val.

DOL Co. had the following account balances as of December 1, 2015: Inventory $720,000 Land 600,000 Building—net (valued at $1,200,000) 1,080,000 Common stock ($10 par value) 960,000 Retained earnings, December 1, 2010 1,320,000 Revenues 720,000 Expenses 600,000 Miller Inc. transferred $1.7 million in cash and 12,000 shares of its newly issued $30 par value common stock (valued at $90 per share) to acquire all of DOL’s outstanding common stock. Assume that Miller paid cash of $2.8 million. No stock is issued. An additional $50,000 is paid in direct combination costs. For Goodwill, determine what balance would be included in a December 1, 2015 consolidation? Solution Total fair value of assets acquired =total assets + revaluation increase 2,400,000 + 120,000 = 2,520,000 Total consideration paid = 1,700,000 + 12000 shares X 90 per share 1,700,000 + 1,080,000 = $ 2,780,000 Goodwill = 2,780,000 - 2,520,000 = $ 260,000 If all cash given and extra cash for covering cost than consideration = 2,800,000 + 50,000 = $ 2,850,000 Total fair value of assets = $ 2,520,000 Goodwill = $ 3,30,000..

Credit Suisse Group: A Brief Presentation

Credit Suisse

Cff302.ppt

issackmohamed3

credit-suisse Press ReleaseQuarterlyEarningsReports2

.credit-suisse Press ReleaseQuarterlyEarningsReports2

Problem 3-2 (LO 2) Simple equity method adjustments, consolidated .docx

sleeperharwell

Problem 3-2 (LO 2) Simple equity method adjustments, consolidated worksheet. On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common stock, other paid-in capital in excess of par, and retained earnings of$50,000, $100,000, and $150,000, respectively. Net income and dividends for two years for Solar are as follows: 2015 2016 Net income $60,000 $90,000 Dividends 20,000 30,000 On January 1, 2015, the only undervalued tangible assets of Solar are inventory and the building. Inventory, for which FIFO is used, is worth $10,000 more than cost. The inventory is sold in 2015. The building, which is worth $30,000 more than book value, has a remaining life of10 years, and straight-line depreciation is used. The remaining excess of cost over book value is attributed to goodwill. Required 1. Using this information and the information in the following trial balances on December 31, 2016, prepare a value analysis and a determination and distribution of excess schedule: Paro Company Solar Company Inventory, December 31 100,000 50,000 Other Current Assets 136,000 180,000 Investment in Solar Company 400,000 Land 50,000 50,000 Buildingsand Equipment 350,000 320,000 Accumulated Depreciation (100,000) (60,000) Goodwill Other Intangibles 20,000 Current Liabilities (120,000) (40,000) Bonds Payable (100,000) Other Long-Term Liabilities (200,000) Common Stock—Paro Company (200,000) Other Paid-In Capital in Excess of Par—Paro Company (100,000) Retained Earnings—Paro Company (214,000) Common Stock—Solar Company (50,000) Other Paid-In Capital in Excess of Par—Solar Company (100,000) Retained Earnings—Solar Company (190,000) Net Sales (520,000) (450,000) Cost of Goods Sold 300,000 260,000 Operating Expenses 120,000 100,000 Subsidiary Income (72,000) Dividends Declared—Paro Company 50,000 Dividends Declared—Solar Company 30,000 Totals 0 0 2. Complete a worksheet for consolidated financial statements for 2016. Include columns for eliminations and adjustments, consolidated income, NCI, controlling retained earnings, and consolidated balance sheet. Problem 3-10 (LO3, 5) 100%, cost method worksheet, several adjustments, third year. Refer to the preceding information for Paulcraft’s acquisition of Switzer’s common stock. Assume that Paulcraft pays $480,000 for 100% of Switzer common stock. Paulcraft uses the cost method to account for its investment in Switzer. Paulcraft and Switzer have the following trial balances on December 31, 2017 as shown on page 191. Paulcraft Switzer Cash 100,000 110,000 Accounts Receivable 90,000 55,000 Inventory 120,000 86,000 Land 100,000 60,000 Investment in Switzer 480,000 Buildings 800,000 250,000 Accumulated Depreci.

Translation and remeasurement of foreign entity statements

Arthik Davianti

Nordic Company, a merchandising company, prepares its master budge.docx

henrymartin15260

Nordic Company, a merchandising company, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the second quarter. a. As of March 31 (the end of the prior quarter), the company’s balance sheet showed the following account balances: Cash $ 9,000 Accounts receivable 48,000 Inventory 12,600 Buildings and equipment (net) 214,100 Accounts payable $ 18,300 Capital stock 190,000 Retained earnings 75,400 $ 283,700 $ 283,700 b. Actual sales for March and budgeted sales for April–July are as follows: March (actual) $60,000 April $70,000 May $85,000 June $90,000 July $50,000 c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales. d. The company’s gross margin percentage is 40% of sales. (In other words, cost of goods sold is 60% of sales.) e. Monthly selling and administrative expenses are budgeted as follows: salaries and wages, $7,500 per month; shipping, 6% of sales; advertising, $6,000 per month; other expenses, 4% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $6,000 for the quarter. f. Each month’s ending inventory should equal 30% of the following month’s cost of goods sold. g. Half of a month’s inventory purchases are paid for in the month of purchase and half in the following month. h. Equipment purchases during the quarter will be as follows: April, $11,500; and May, $3,000. i. Dividends totaling $3,500 will be declared and paid in June. j. Management wants to maintain a minimum cash balance of $8,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: Using the data above, complete the following statements and schedules for the second quarter: 1. Schedule of expected cash collections: (Omit the "$" sign in your response.) Schedule of expected cash collections April May June Total Cash sales $ 14,000 $ $ $ Credit sales 48,000 Total collections $ 62,000 $ $ $ 2a. Merchandise purchases budget. (Input all amounts as positive values. Omit the "$" sign in your response.) Merchandise purchases budget April May June Total Budgeted cost of goods sold $ 42,000 * $ 51,000 $ $ : desired ending inventory 15,300 † Total needs 57,300 : beginning inventory 12,600 Required purchases $ 44,700 $ $ $ .

Finance and Accounting .ppt

MuhammadWaliUllah10

Acc week 5Shu Shin

B PROBLEMSP23-1B (L02,4) (SCF—Indirect Method) The followi.docx

jasoninnes20

B PROBLEMS P23-1B (L02,4) (SCF—Indirect Method) The following are Sanibel Corp.’s comparative balance sheet accounts at Decem- ber 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017. Additional information: 1. On December 31, 2016, Sanibel acquired 25% of Island Co.’s common stock for $420,000. On that date, the carrying value of Island’s assets and liabilities, which approximated their fair values, was $1,680,000. Island reported income of $220,000 for the year ended December 31, 2017. No dividend was paid on Island’s common stock during the year. 2. During 2016, Sanibel loaned $500,000 to POI Co., an unrelated company. POI made the first semi-annual principal repay- ment of $50,000, plus interest at 10%, on December 31, 2016. POI is current on the loan as of December 31, 2017. 3. On January 2, 2017, Sanibel sold equipment costing $100,000, with a carrying amount of $31,000, for $20,000 cash. 4. On December 31, 2017, Sanibel entered into a capital lease for a new factory. The present value of the annual rental payments is $850,000, which equals the fair value of the building. Sanibel made the first rental payment of $120,000 when due on January 2, 2018. 5. Net income for 2017 was $285,000. 6. Sanibel declared and paid cash dividends for 2017 and 2016 as follows. Instructions Prepare a statement of cash flows for Sanibel Corp. for the year ended December 31, 2017, using the indirect method. (AICPA adapted) 1 COMPARATIVE BALANCE SHEETS Increase 2017 2016 (Decrease) Cash $ 650,000 $ 510,000 $ 140,000 Accounts receivable 1,260,000 1,090,000 170,000 Inventory 1,538,000 1,370,000 168,000 Property, plant, and equipment 2,680,000 1,763,000 917,000 Accumulated depreciation (850,000) (760,000) (90,000) Investment in Island Co. 475,000 420,000 55,000 Loan receivable 350,000 450,000 (100,000) Total assets $6,103,000 $4,843,000 $1,260,000 Accounts payable $1,080,000 $ 910,000 $ 170,000 Income taxes payable 90,000 75,000 15,000 Dividends payable 100,000 60,000 40,000 Capital lease obligation 850,000 0 850,000 Common stock, $1 par 400,000 400,000 0 Paid-in capital in excess of 2,100,000 2,100,000 0 par—common stock Retained earnings 1,483,000 1,298,000 185,000 Total liabilities and stockholders’ equity $6,103,000 $4,843,000 $1,260,000 2017 2016 Declared December 15, 2017 December 15, 2016 Paid February 28, 2018 February 28, 2017 Amount $100,000 $60,000 c23_Kieso_IA_16e_PB.indd Page 1 12/07/16 9:00 AM f-389 c23_Kieso_IA_16e_PB.indd Page 1 12/07/16 9:00 AM f-389 /208/WB01908/XXXXXXXXXXXXX/ch23/text_s/208/WB01908/XXXXXXXXXXXXX/ch23/text_s 2 Chapter 23 Statement of Cash Flows P23-2B (L02,4) (SCF—Indirect Method) The comparative balance sheets for Queen Corporation show the following information. Additional data related to 2017 are as follows. 1. Equipment that had cost $20,000 and was 60% depreciated at time of disposal was sold for $2,000. 2. $18,000 of th ...

BarRavenskirk Llp

Final Exam Take Home Problem (20 points)Based on the information p.docx

charlottej5

Final Exam Take Home Problem (20 points) Based on the information provided below, prepare the statement of cash flows for the Gulp-it-Down Coffee Co. Gulp-it-Down Coffee Co. Comparative Balance Sheet For the Year Ended December 31, 2012 2012 2011 Assets Cash 140,000 160,000 Accounts Receivables 400,000 380,000 Inventory 480,000 420,000 Fixed Assets (net of accumulated Depreciation) 1,860,000 1,720,000 Less: Accumulated Depreciation (1,000,000) (900,000) Total 1,880,000 1,780,000 Liabilities & Owner’s Equity Accounts Payable 240,000 260,000 Accrued expense 120,000 100,000 Bonds Payable 780,000 720,000 Capital Stock 420,000 420,000 Retained Earnings 320,000 280,000 Total 1,880,000 1,780,000 Additional Information: (1.) Net income for the year amounted to $60,000, and cash dividends were declared and paid in the amount of $20,000. (2.) Gulp-it-Down Coffee Co.'s only noncash expense was depreciation Expense which totaled $100,000. (3.) The company purchased plant assets for $140,000. (4.) Bonds payable in the amount of $60,000 were issued during the year. .

Recording Transactions (Including Adjusting and Closing Entries)- Prep.pdf

Max3zSLangdonj

Recording Transactions (Including Adjusting and Closing Entries), Preparing Financial Statements, and Performing Ratio Analysis Ben and Kelly Perry began operations of their Roof repair company (Perry Roofing, Inc.) on January 1, 2020. The annual reporting period ends December 31. The trial balance on January 1, 2021, was as follows: Debit Credit Cash 7,000 Accounts Receivable 5,000 Supplies 9,000 Equipment Accumulated Depreciation (on equipment) Intangible assets (long term, not detailed to simplify) 8,000 Accounts Payable 6,000 Notes Payable Wages payable Interest Payable Income Taxes Payable Unearned revenue Common Stock (50,000 shares, $0.10 par value) 5,000 Additional Paid-in Capital 10,000 Retained Earnings 8,000 Service revenue Depreciation expense Supplier expense Wage Expense General and Administrative Expense Interest Expense Income Tax Expense Totals 29,000 29,000 Transactions during 2021 follow: Borrowed $18,000 cash on July 1, 2021, signing a one-year, 10 percent note payable. Purchased equipment for $20,000 cash on July 1, 2021. Sold 10,000 additional shares of capital stock for cash at $1.1 market value per share at the beginning of the year. Earned $110,000 in revenues for 2021, including $30,000 on credit and the rest in cash. Incurred General and Administrative expenses of $16,000 for 2021, including $5,000 on credit and the rest paid with cash. Purchased $12,000 of supplies: $4,000 was paid in cash with the rest on account. Collected accounts receivable, $18,000. Paid accounts payable, $9,000. Paid 50,000 cash for wage expense. Received a $2,000 deposit on work to start January 15, 2022. Declared and paid a cash dividend, $5,000. Data for adjusting entries: Supplies of $5,000 were counted on December 31, 2021. Depreciation for 2021, $2,500. Interest accrued on notes payable (to be computed). Wages earned since the December 24 payroll but not yet paid, $800. Income tax expense was $9,000, payable in 2022. Required (all in an Excel file with separate spreadsheets): Set up T-accounts for the accounts on the trial balance and enter beginning balances. 1) Prepare journal entries for transactions ( a ) through ( k ) and 2) Post them to the T-accounts. 1) Journalize the adjusting entries ( l ) through ( p ) and 2) Post them to the T-accounts. Prepare a trial balance, with columns of both unadjusted and adjusted. Prepare: an income statement (including earnings per share), statement of stockholders' equity, and balance sheet. Debit Credit Cash 7,000 Accounts Receivable 5,000 Supplies 9,000 Equipment Accumulated Depreciation (on equipment) Intangible assets (long term, not detailed to 8,000 simplify) Accounts Payable 6,000 Notes Payable Wages payable Interest Payable Income Taxes Payable Unearned revenue Common Stock (50,000 shares, $0.10 par value) 5,000 Additional Paid-in Capital 10,000 Retained Earnings 8,000 Service revenue Depreciation expense Supplier expense Wage Expense General and Administrative Expense Interest Expense Inc.

ch04 (1).pptx

KimNgn701281

Will’s Widget Company (WWC) incorporated near the end of 2017. Opera.pdf

abhinavbhatnagar201

Will’s Widget Company (WWC) incorporated near the end of 2017. Operations began in January of 2018. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: Account Title Dr Cr Cash 21,170 Accounts Receivable 12,200 Allowance for Doubtful Accounts 1,750 Inventory (45 units) 3,825 Unearned Revenue (40 units) 5,200 Accounts Payable (Jan Rent) 3,000 Notes Payable 14,500 Contributed Capital 6,700 Retained Earnings – Feb 1, 2012 6,045 Additional Information you need to know about WWC: • WWC establishes a policy that it will sell inventory at $165 per unit. • In January, WWC received a $5,200 advance for 40 units, as reflected in Unearned Revenue. • WWC’s February 1 inventory balance consisted of 45 units at a total cost of $3,825. • WWC’s note payable accrues interest at a 12% annual rate. • WWC will use the FIFO inventory method and record COGS on a perpetual basis. Below are transactions for February 2018: Record Journal Entries for following transactions: 02/01 Included in WWC’s February 1 Accounts Receivable balance is a $1,500 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,500 balance to a note, and Kit Kat signs a 6- month note, at 9% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012. 02/02 WWC paid a $900 insurance premium covering the month of February. The amount paid is recorded directly as an expense. 02/05 An additional 150 units of inventory are purchased on account by WWC for $11,250 – terms 2/15, n30. 02/05 WWC paid Federal Express $450 to have the 150 units of inventory delivered overnight. Delivery occurred on 02/06. (Hint--Recall company uses perpetual inventory system, record transportation fees as part of inventory costs—debit to inventory) 02/10 Sales of 120 units of inventory occurred during the period of 02/07 – 02/10. The sales terms are 2/10, net 30. (Hint --Recall company follows FIFO. What are the COGS of 120 sold units?) 02/15 The 40 units that were paid for in advance and recorded in January are delivered to the customer. (Hint --Recall WWC follows FIFO. What are the COGS of 40 sold units?) 02/15 10 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase. 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $2,500. 02/17 Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts as a reduction of inventory costs (credit to inventory). 02/18 Wrote off a customer’s account in the amount of $1,850. 02/19 $6,000 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense. 02.

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ACC 421 GENIUS Become Exceptional--acc421genius.com

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