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Question 1
Transactions for Mehta Company for the month of May are presented below.
May 1 B.D. Mehta invests $3,054 cash in exchange for common stock of Mehta Company, a small welding corporation.
3 Buys equipment on account for $1,547.
Accounting 970642 paper 4 problem solving (supplementary topics) october nove...alproelearning
Accounting 970642 paper 4 problem solving (supplementary topics) october november 2011
Advanced Level
A Level
Zimsec
Cambridge
Alpro Learning Portal
Accounting
Accounts
Zimbabwe
Principle of accounts
The Loan Estimate: This form will be provided to consumers within three business days after they submit a loan application. It replaces the early Truth in Lending statement and the Good Faith Estimate, and provides a summary of the key loan terms and estimated loan and closing costs. Consumers can use this new form to compare the costs and features of different loans.
1. On August 31, Demich Co. partially refunded $180,000 of its o.docxdorishigh
1. On August 31, Demich Co. partially refunded $180,000 of its outstanding 10% note payable made one year ago to Best Federal Bank by paying $180,000 plus $18,000 interest, having obtained the $198,000 by using $52,400 cash and signing a new one-year $160,000 note discounted at 9% by the bank.
Instructions
(1) Make the entry to record the partial refunding. Assume Demich Co. makes reversing entries when appropriate.
(2) Prepare the adjusting entry at December 31, assuming straight-line amortization of the discount.
1. Below are three independent situations.
a. In August, 2012 a worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued Crusher Co. for $800,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorable and that the settlement would cost the company from $250,000 to $500,000.
b. A suit for breach of contract seeking damages of $2,400,000 was filed by an
author against Parker Co. on October 4, 2012. Parker’s legal counsel believes
that an unfavorable outcome is probable. A reasonable estimate of the
award to the plaintiff is between $600,000 and $1,800,000. No amount within
this range is a better estimate of potential damages than any other amount.
c. Rose is involved in a pending court case. Rose’s lawyers believe it is probable that Rose will be awarded damages of $1,000,000.
Instructions
Discuss the proper accounting treatment, including any required disclosures, for each situation. Give the rationale for your answers.
2. ESSAY QUESTION: What accounting treatment is required for convertible
debt? Why? What accounting treatment is required for debt issued with stock warrants? Why?
3. On July 1, 2013, Zheng Co. issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2013 and mature on April 1, 2023. Interest is payable semiannually on April 1 and October 1. What amount did Zheng receive from the bond issuance?
4. Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $72,000 cash.
Instructions
(a) Give the entry for the issuance assuming the par value of the common was $5 and the market value $30, and the par value of the preferred was $40 and the market value $50. (Each valuation is on a per share basis and there are ready markets for each stock.)
(b) Give the entry for the issuance assuming the same facts as (a) above except the preferred stock has no ready market and the common stock has a market value of $25 per share.
6. Weighted average shares outstanding.
On January 1, 2012, Warren Corporation had 1,000,000 shares of common stock outstanding. On March 1, the corporation issued 150,000 new shares to raise additional capital. On July ...
.08 mjm 1. On August 31, Jenks Co. partially refunded $1.docxmercysuttle
....._
Cl0; Introduction to Computers; Assignment 4 Rubric
CATEGORY Exemplary Satisfactory Unsatisfactory Unacceptable
Justificalion:20 20 points: Three or 13 points: Two items 6 points: One item in o points: None of the
points more items in the in the proposal the proposal includes 'items in the proposalproposal include an include an an expIanaIion of why incJude an explanation
explanation of why explanation of why that particular choice of why that particular
that particular choice that particular choice wasmade_ choice was made.
wasmade._ was made.
Quality of 20 points: 13 points: Information 6 points: Information o points: Information
Infonnation: 20 Information clearly clearty relates to the clear1yrelates to the had little or nothing to 'relates to the main main topic. It main topic.. Supporting do with the main topic.
points topic. It includes includes one or two details and/or
three or more items items with supporting examples are not
with supporting details andfor incJlided_
I
details andfor examples_
examples.
Accuracy: 20 20 points: All of the 13 points:. Most ofthe 6 points: Some of the o points: None or
points technical technical technical ,~ almost none of thedescriptions and descriptions and and details are technical descriptions
details are described details are described described accurately and details are
accurately and accurately and and match tDday\'s described accurateJy
match today\'s match today\'s available technology. and match today\'s I
available technology.. available technology- available technology.
Format: 10 10 points: The 7 points: The 4 points: The proposal o points: The proposal I
points proposal covers aD proposal covers 3 or covers 1or 2 of the covers none of the Iof the five 4 of the five five requirements five requirements I
requirements requirements requested by the requested by the
requested by the requested by the Custol1lelC (Budget, customer. (Budget.
I
customer. (Budget. customer. (Budget, Security, HardWare, Seclriy, I-fardware.
Security, Hardware, Sea.riy, Hardware, OS, Mobile OS, Mobile
OS, Mobile OS,Mobile Computing) Computing)
Computing) Computing)
Mechanics: 10 10 points: No 7 points: One to two 4 points: Three to four o points: FIVeor more
points grammatical, grammalical,. grammatical, spelling, grammatic-aJ. spelling,spelling. spacing, spelling. spacing. spacing, capilalizalion spacing" capiIaization I
capitalization or capitalization or or punctuation errors. or punctuation errors. I
_ punctuation errors. punctuation errors. I
Acronyms: 10 10 points: All of the 7 points: Most of the 4 points: Some of the o poin1s: None of the
points acronyms. acronyms, acronyms, acronyms,abbreviations or abbreviations or abbreviations or abbreViations or
I
technical terms are technical terms are technical terms are technical terms are
either spelled out or either speIed out or either spefled out or either spelled out or
explained in a way explained in a way explained in a way explained in a ...
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Question 14
A fire destroys all of the merchandise of Shamrock Company on February 10, 2017. Presented below is information compiled up to the date of the fire.
Inventory, January 1, 2017
$432,200
Sales revenue to February 10, 2017
1,935,200
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Question 14
A fire destroys all of the merchandise of Shamrock Company on February 10, 2017. Presented below is information compiled up to the date of the fire.
Inventory, January 1, 2017
$432,200
Sales revenue to February 10, 2017
ACC 422 Final Exam Guide Score 29-30 seek Your Dream/snaptutorialdotcomapjk536
For more classes visit
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Question 14
A fire destroys all of the merchandise of Shamrock Company on February 10, 2017. Presented below is information compiled up to the date of the fire.
Inventory, January 1, 2017
$432,200
Sales revenue to February 10, 2017
For more course tutorials visit
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Question 1
Transactions for Mehta Company for the month of May are presented below.
May 1 B.D. Mehta invests $3,054 cash in exchange for common stock of Mehta Company, a small welding corporation.
3 Buys equipment on account for $1,547.
Accounting 970642 paper 4 problem solving (supplementary topics) october nove...alproelearning
Accounting 970642 paper 4 problem solving (supplementary topics) october november 2011
Advanced Level
A Level
Zimsec
Cambridge
Alpro Learning Portal
Accounting
Accounts
Zimbabwe
Principle of accounts
The Loan Estimate: This form will be provided to consumers within three business days after they submit a loan application. It replaces the early Truth in Lending statement and the Good Faith Estimate, and provides a summary of the key loan terms and estimated loan and closing costs. Consumers can use this new form to compare the costs and features of different loans.
1. On August 31, Demich Co. partially refunded $180,000 of its o.docxdorishigh
1. On August 31, Demich Co. partially refunded $180,000 of its outstanding 10% note payable made one year ago to Best Federal Bank by paying $180,000 plus $18,000 interest, having obtained the $198,000 by using $52,400 cash and signing a new one-year $160,000 note discounted at 9% by the bank.
Instructions
(1) Make the entry to record the partial refunding. Assume Demich Co. makes reversing entries when appropriate.
(2) Prepare the adjusting entry at December 31, assuming straight-line amortization of the discount.
1. Below are three independent situations.
a. In August, 2012 a worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued Crusher Co. for $800,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorable and that the settlement would cost the company from $250,000 to $500,000.
b. A suit for breach of contract seeking damages of $2,400,000 was filed by an
author against Parker Co. on October 4, 2012. Parker’s legal counsel believes
that an unfavorable outcome is probable. A reasonable estimate of the
award to the plaintiff is between $600,000 and $1,800,000. No amount within
this range is a better estimate of potential damages than any other amount.
c. Rose is involved in a pending court case. Rose’s lawyers believe it is probable that Rose will be awarded damages of $1,000,000.
Instructions
Discuss the proper accounting treatment, including any required disclosures, for each situation. Give the rationale for your answers.
2. ESSAY QUESTION: What accounting treatment is required for convertible
debt? Why? What accounting treatment is required for debt issued with stock warrants? Why?
3. On July 1, 2013, Zheng Co. issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2013 and mature on April 1, 2023. Interest is payable semiannually on April 1 and October 1. What amount did Zheng receive from the bond issuance?
4. Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $72,000 cash.
Instructions
(a) Give the entry for the issuance assuming the par value of the common was $5 and the market value $30, and the par value of the preferred was $40 and the market value $50. (Each valuation is on a per share basis and there are ready markets for each stock.)
(b) Give the entry for the issuance assuming the same facts as (a) above except the preferred stock has no ready market and the common stock has a market value of $25 per share.
6. Weighted average shares outstanding.
On January 1, 2012, Warren Corporation had 1,000,000 shares of common stock outstanding. On March 1, the corporation issued 150,000 new shares to raise additional capital. On July ...
.08 mjm 1. On August 31, Jenks Co. partially refunded $1.docxmercysuttle
....._
Cl0; Introduction to Computers; Assignment 4 Rubric
CATEGORY Exemplary Satisfactory Unsatisfactory Unacceptable
Justificalion:20 20 points: Three or 13 points: Two items 6 points: One item in o points: None of the
points more items in the in the proposal the proposal includes 'items in the proposalproposal include an include an an expIanaIion of why incJude an explanation
explanation of why explanation of why that particular choice of why that particular
that particular choice that particular choice wasmade_ choice was made.
wasmade._ was made.
Quality of 20 points: 13 points: Information 6 points: Information o points: Information
Infonnation: 20 Information clearly clearty relates to the clear1yrelates to the had little or nothing to 'relates to the main main topic. It main topic.. Supporting do with the main topic.
points topic. It includes includes one or two details and/or
three or more items items with supporting examples are not
with supporting details andfor incJlided_
I
details andfor examples_
examples.
Accuracy: 20 20 points: All of the 13 points:. Most ofthe 6 points: Some of the o points: None or
points technical technical technical ,~ almost none of thedescriptions and descriptions and and details are technical descriptions
details are described details are described described accurately and details are
accurately and accurately and and match tDday\'s described accurateJy
match today\'s match today\'s available technology. and match today\'s I
available technology.. available technology- available technology.
Format: 10 10 points: The 7 points: The 4 points: The proposal o points: The proposal I
points proposal covers aD proposal covers 3 or covers 1or 2 of the covers none of the Iof the five 4 of the five five requirements five requirements I
requirements requirements requested by the requested by the
requested by the requested by the Custol1lelC (Budget, customer. (Budget.
I
customer. (Budget. customer. (Budget, Security, HardWare, Seclriy, I-fardware.
Security, Hardware, Sea.riy, Hardware, OS, Mobile OS, Mobile
OS, Mobile OS,Mobile Computing) Computing)
Computing) Computing)
Mechanics: 10 10 points: No 7 points: One to two 4 points: Three to four o points: FIVeor more
points grammatical, grammalical,. grammatical, spelling, grammatic-aJ. spelling,spelling. spacing, spelling. spacing. spacing, capilalizalion spacing" capiIaization I
capitalization or capitalization or or punctuation errors. or punctuation errors. I
_ punctuation errors. punctuation errors. I
Acronyms: 10 10 points: All of the 7 points: Most of the 4 points: Some of the o poin1s: None of the
points acronyms. acronyms, acronyms, acronyms,abbreviations or abbreviations or abbreviations or abbreViations or
I
technical terms are technical terms are technical terms are technical terms are
either spelled out or either speIed out or either spefled out or either spelled out or
explained in a way explained in a way explained in a way explained in a ...
ACC 422 Final Exam Guide Score 29-30 seek Your Dream/uophelpdotcomapjk533
For more classes visit
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Question 14
A fire destroys all of the merchandise of Shamrock Company on February 10, 2017. Presented below is information compiled up to the date of the fire.
Inventory, January 1, 2017
$432,200
Sales revenue to February 10, 2017
1,935,200
ACC 422 Final Exam Guide Score 29-30 seek Your Dream/acc422martdotcomapjk538
For more classes visit
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Question 14
A fire destroys all of the merchandise of Shamrock Company on February 10, 2017. Presented below is information compiled up to the date of the fire.
Inventory, January 1, 2017
$432,200
Sales revenue to February 10, 2017
ACC 422 Final Exam Guide Score 29-30 seek Your Dream/snaptutorialdotcomapjk536
For more classes visit
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Question 14
A fire destroys all of the merchandise of Shamrock Company on February 10, 2017. Presented below is information compiled up to the date of the fire.
Inventory, January 1, 2017
$432,200
Sales revenue to February 10, 2017
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Multiple Choice Question 21
Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer?
Question 14
A fire destroys all of the merchandise of Shamrock Company on February 10, 2017. Presented below is information compiled up to the date of the fire.
Inventory, January 1, 2017
ACC 422 Final Exam Guide With EXCEL FILE seek Your Dream/acc422martdotcomapjk538
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Multiple Choice Question 21
Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer?
Question 14
A fire destroys all of the merchandise of Shamrock Company on February 10, 2017. Presented below is information compiled up to the date of the fire.
Inventory, January 1, 2017
ACC 422 Final Exam Guide With EXCEL FILE seek Your Dream/snaptutorialdotcomapjk536
For more classes visit
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Multiple Choice Question 21
Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer?
Question 14
A fire destroys all of the merchandise of Shamrock Company on February 10, 2017. Presented below is information compiled up to the date of the fire.
Inventory, January 1, 2017
1.Isaac Inc. began operations in January 2013. For certain of it.docxjackiewalcutt
1.
Isaac Inc. began operations in January 2013. For certain of its property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments.
In 2013, Isaac had $600 million in sales of this type. Scheduled collections for these sales are as follows:
Assume that Isaac has a 30% income tax rate and that there were no other differences in income for financial statement and tax purposes.
Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2013 balance sheet?
2.
Beresford Inc. purchased several investment securities during 2012, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent.
What balance sheet amount would Beresford report for its total investment securities at 12/31/2012?
3. Hutton Construction specializes in the construction of commercial and industrial buildings. The contractor is experienced in bidding long-term construction projects of this type, with the typical project lasting fifteen to twenty-four months. The contractor uses the percentage-of-completion method of revenue recognition since, given the characteristics of the contractor's business and contracts, it is the most appropriate method. Progress toward completion is measured on a cost to cost basis. Hutton began work on a lump-sum contract at the beginning of 2014. As bid, the statistics were as follows:
Lump-sum price (contract price)
$4,000,000
Estimated costs
Labor
$ 850,000
Materials and subcontractor
1,750,000
Indirect costs
400,000
3,000,000
$1,000,000
At the end of the first year, the following was the status of the contract:
Billings to date
$2,230,000
Costs incurred to date
Labor
$ 464,000
Materials and subcontractor
1,098,000
Indirect costs
193,000
1,755,000
Latest forecast total cost
3,000,000
It should be noted that included in the above costs incurred to date were standard electrical and mechanical materials stored on the job site, but not yet installed, costing $105,000. These costs should not be considered in the costs incurred to date.
Instructions
(a)
Compute the percentage of completion on the contract at the end of 2014.
(b)
Indicate the amount of gross profit that would be reported on this contract at the end of 2014.
(c)
Make the journal entry to record the income (loss) for 2014 on Hutton’s books.
4. Computation of selected ratios.
The following data is given:
December 31,
2013
2012
Cash
$ 66,000
$ 50,000
Accounts receivable (net)
68,000
60,000
Inventories
90,000
110,000
Plant assets (net)
383,000
325,000
Accounts payable
57,000
40,000
Salaries and wages payable
10,000
5,000
Bonds payable
70,000
70,000
10% Preferred stock, $40 par
100,000
100,000
Common stock, ...
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Details of All 180 Questions Given Below
SET 1
1. Kraft Enterprises owns the following assets at December 31, 2012.
Cash in bank–savings account 67,516 Checking account balance 26,445
Cash on hand 9,478 Postdated checks 753
Cash refund due from IRS 40,324 Certificates of deposit (180-day) 94,754
What amount should be reported as cash?
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1. Kraft Enterprises owns the following assets at December 31, 2012.
Cash in bank–savings account
67,516
Checking account balance
26,445
Cash on hand
9,478
Postdated checks
753
Cash refund due from IRS
40,324
Certificates of deposit (180-day)
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Problem 13-9
Sycamore Candy Company offers a CD single as a
premium for every 5 candy bar wrappers
presented by customers together with $3.35. The
candy bars are sold by the company to
distributors for 30 cents each. The purchase price
of each CD to the company is $3.10; in addition, it
costs 50 cents to mail each CD. The results of the
premium plan for the years 2012 and 2013 are as
follows. (All purchases and sales are for cash.)
2. 2012 2013
CDs purchased 257,500
339,900
Candy bars sold 2,970,900
2,801,800
Wrappers redeemed 1,236,000
1,545,000
2012 wrappers expected to be redeemed in 2013
298,700
2013 wrappers expected to be redeemed in 2014
360,500
(a) Prepare the journal entries that should be
made in 2012 and 2013 to record the transactions
related to the premium plan of the Sycamore
Candy Company. (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
(b) Indicate the amounts for each accounts, and
classifications of the items related to the premium
plan that would appear on the balance sheet and
the income statement at the end of 2012 and
2013.
manually.)
3. Exercise 13-13 (Essay)
Presented below are three independent situations.
Answer the question at the end of each situation.
1. During 2012, Maverick Inc. became involved in a
tax dispute with the IRS. Maverick's attorneys
have indicated that they believe it is probable that
Maverick will lose this dispute. They also believe
that Maverick will have to pay the IRS between
$800,000 and $1,400,000. After the 2012 financial
statements were issued, the case was settled with
the IRS for $1,200,000. What amount, if any,
should be reported as a liability for this
contingency as of December 31, 2012?
2. On October 1, 2012, Holmgren Chemical was
identified as a potentially responsible party by the
Environmental Protection Agency. Holmgren's
management along with its counsel have
concluded that it is probable that Holmgren will be
responsible for damages, and a reasonable
estimate of these damages is $6,000,000.
Holmgren's insurance policy of $9,000,000 has a
deductible clause of $500,000. How should
Holmgren Chemical report this information in its
financial statements at December 31, 2012?
4. 3. Shinobi Inc. had a manufacturing plant in
Darfur, which was destroyed in the civil war. It is
not certain who will compensate Shinobi for this
destruction, but Shinobi has been assured by
governmental officials that it will receive a definite
amount for this plant. The amount of the
compensation will be less than the fair value of the
plant but more than its book value. How should
the contingency be reported in the financial
statements of Shinobi Inc.?
Exercise 14-22
On December 31, 2012, the American Bank enters
into a debt restructuring agreement with Barkley
Company, which is now experiencing financial
trouble. The bank agrees to restructure a 14%,
issued at par, $3,167,000 note receivable by the
following modifications:
1. Reducing the principal obligation from
$3,167,000 to $2,533,600.
2. Extending the maturity date from December
31, 2012, to January 1, 2016.
3. Reducing the interest rate from 14% to 10%.
5. Barkley pays interest at the end of each year. On
January 1, 2016, Barkley Company pays
$2,533,600 in cash to Firstar Bank.
(a) Will the gain recorded by Barkley be equal to
the loss recorded by American Bank under the
debt restructuring?
(b) Can Barkley Company record a gain under the
term modification mentioned above?
(c) Assuming that the interest rate Barkley
should use to compute interest expense in future
periods
is 1.4276%, prepare the interest payment
schedule of the note for Barkley Company after the
debt restructuring. (Round answers to 0 decimal
places, e.g. $38,548.)
(d) Prepare the interest payment entry for
Barkley Company on December 31, 2014. (Round
answers
to 0 decimal places, e.g. $38,548. Credit account
titles are automatically indented when amount is
entered. Do not indent manually.)
(e) What entry should Barkley make on January
1, 2016? (Round answers to 0 decimal places, e.g.
$38,548. Credit account titles are automatically
indented when amount is entered. Do not indent
manually.)
6. Exercise 21-7
On January 1, 2012, Palmer Company leased
equipment to Woods Corporation. The following
information pertains to this lease.
1. The term of the noncancelable lease is 6
years, with no renewal option. The equipment
reverts to the lessor at the termination of the
lease.
2. Equal rental payments are due on January 1
of each year, beginning in 2012.
3. The fair value of the equipment on January 1,
2012, is $235,200, and its cost is $199,920.
4. The equipment has an economic life of 8
years, with an unguaranteed residual value of
$11,510. Woods depreciates all of its equipment
on a straight-line basis.
5. Palmer sets the annual rental to ensure an 10%
rate of return. Woods's incremental borrowing
rate is 11%, and the implicit rate of the
lessor is unknown.
6. Collectibility of lease payments is reasonably
predictable, and no important uncertainties
surround the amount of costs yet to be incurred by
the lessor.
7. (Both the lessor and the lessee's accounting
period
ends on December 31.)
B.) Calculate the amount of the annual rental
payment. (Round present value factor calculations
to 5 decimal places, e.g. 1.25124 and the final
answer to 0 decimal places e.g. 58,971.)
C. ) Prepare all the necessary journal entries for
Woods for 2012. (Credit account titles are
automatically indented when amount is entered.
Do not indent manually. Round present value
factor calculations to 5 decimal places, e.g.
1.25124 and the final answer to 0 decimal places
e.g. 58,971.)
D. ) Prepare all the necessary journal entries for
Palmer for 2012. (Credit account titles are
automatically indented when amount is entered.
Do not indent manually. Round present value
factor calculations to 5 decimal places, e.g.
1.25124 and the final answer to 0 decimal places
e.g. 58,971.)