Business Problem Solver - Get Instant Explanations
Below are transactions for Wolverine Company during 2021. a. On December 1, 2021, Wolverine receives $2,100 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue. b. Wolverine purchases a one-year property insurance policy on July 1, 2021, for $10,920. The payment is debited to Prepaid Insurance for the entire amount. c. Employee salaries of $1,100 for the month of December will be paid in early January 2022. d. On November 1, 2021, the company borrows $5,500 from a bank. The loan requires principal and interest at 12% to be paid on October 30, 2022. e. Office supplies at the beginning of 2021 total $810. On August 15, Wolverine purchases an additional $1,500 of office supplies, debiting the Supplies account. By the end of the year, $310 of office supplies remains.Required: Record the necessary adjusting entries at December 31, 2018, for Wolverine Company. You do not need to record transactions made during the year. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.
The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm, for the fiscal year ended November 30, 2018:Depreciation Expense $10,650Fees Earned 724,500Insurance Expense 5,000Miscellaneous Expense 6,650Rent Expense 75,000Salaries Expense 393,100Supplies Expense 6,150Utilities Expense 41,200Required:1. Prepare an income statement.
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:Date Transaction Number of Units Per Unit TotalJan. 1 Inventory 7,500 $ 75.00 $ 562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 3,750 150.00 562,500Feb. 5 Sale 1,500 150.00 225,000 10 Purchase 54,000 87.50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar. 5 Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000Required:1. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.2. Determine the ending inventory cost as of March 31.
Candlewood LLC started business on September 1, 2019, and adopted a calendar year. During 2020, Candlewood incurred $6,500 in legal fees for drafting the LLC's operating agreement and $3,000 in accounting fees for tax advice of an organizational nature, for a total of $9,500 of organizational costs. Candlewood also incurred $30,000 of preopening advertising expenses and $24,500 of salaries and training costs for new employees before opening for business, for a total of $54,500 of startup costs. The LLC wants to take the largest deduction available for these costs.If required, round any division to five decimal places and use in subsequent computations. Round your final answers to the nearest dollar.In 2019, the LLC may deduct $___________ as organizational expenses and $____________ as startup expenses.
Because of her excessive tardiness and absenteeism during the year, the company discharged Ruth V. Williams on November 13. Ruth has requested Form W-2 be given to her. Form W-2 will include her final pay. For the week ending November 7, she was late a total of six hours; and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks' notice, Williams was given two full weeks' pay ($1,223.08). Along with her dismissal pay ($1,223.08), she was paid for the week ending November 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336.38). The total pay for the two partial weeks is $856.24.Pay Points:Prepare a Wage and Tax Statement, Form W-2, to be given to Williams.1) Record a separate payroll register (on one line) to show Williamss total earnings, deductions, and net pay. The two weeks dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay ($2,079.32) of Williams.The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williamss discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams. When posting to the earnings record, make a notation of Williamss discharge on this date.2) Prepare the journal entries to transfer the net cash and to record Williamss final pay and the employers payroll taxes. Post to the ledger accounts.3) Use the blank Form W-2. Box "a" should be left blank, since Glo-Brite Paint Company does not use a control number to identify individual Forms W-2.
The following are Sheridan Corp.'s comparative balance sheet accounts at December 31, 2017, and 2016, with a column showing the increase (decrease) from 2016 to 2017.COMPARATIVE BALANCE SHEETS2017 2016 Increase (Decrease)Cash $806,900 $700,900 $106,000Accounts receivable 1,131,700 1,159,400 (27,700 )Inventory 1,842,900 1,730,100 112,800Property, plant, and equipment 3,300,200 2,968,200 332,000Accumulated depreciation (1,173,600) (1,037,600) (136,000)Investment in Myers Co. 307,300 277,000 30,300Loan receivable 247,500 ? 247,500Total assets $6,462,900 $5,798,000 $664,900Accounts payable $1,020,900 $950,800 $70,100Income taxes payable 30,000 50,200 (20,200 )Dividends payable 80,500 100,500 (20,000)Lease liabililty 392,000 ? 392,000Common stock, $1 par 500,000 500,000 ?Paid-in capital in excess of par-common stock 1,489,000 1,489,000 ?Retained earnings 2,950,500 2,707,500 243,000Total liabilities and stockholders' equity $6,462,900 $5,798,000 $664,900Additional information:1. On December 31, 2016, Sheridan acquired 25% of Myers Co.'s common stock for $277,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,108,000. Myers reported income of $121,200 for the year ended December 31, 2017. No dividend was paid on Myers's common stock during the year.2. During 2017, Sheridan loaned $291,600 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $44,100, plus interest at 10%, on December 31, 2017.3. On January 2, 2017, Sheridan sold equipment costing $60,000, with a carrying amount of $38,100, for $40,400 cash.4. On December 31, 2017, Sheridan entered into a capital lease for an office building. The present value of the annual rental payments is $392,000, which equals the fair value of the building. Sheridan made the first rental payment of $59,900 when due on January 2, 2018.5. Net income for 2017 was $323,500.6. Sheridan declared and paid the following cash dividends for 2017 and 2016.2017 2016Declared December 15, 2017 December 15, 2016 Paid February 28, 2018 February 28, 2017 Amount $80,500 $100,500Required:1. Prepare a statement of cash flows for Sheridan Corp. for the year ended December 31, 2017, 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).)
The following information is available for Skysong Corporation for the year ended December 31, 2022. Beginning cash balance $35,000 Accounts payable decrease 3,200 Depreciation expense 83,000 Accounts receivable increase 9,700 Inventory increase 13,400 Net income 336,000 Cash received for sale of land at book value 35,000 Sales revenue 744,500 Cash dividends paid 10,800 Income tax payable increase 4,900 Cash used to purchase building 147,500 Cash used to purchase treasury stock 39,700 Cash received from issuing bonds 216,000Required:(a) Prepare a 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 (15,000).)
Information about the assets of TAP Holdings is provided below: TAP purchased land on January 1, 2013 for $250 million. As of January 1, 2018, the fair value was estimated to be $290 million. TAP purchased a trademark on January 1, 2016 for $150 million. As of January 1, 2018, the fair value was estimated to be $80 million. TAP acquired a company on Jun 5, 2016 and recognized $880 million in goodwill as a result. A $140 million goodwill impairment was recognized at year end 2017. Assume a useful life of 5 years and the straight-line method for any depreciable or amortizable assets above. Assume TAP reports under US GAAP. What is the total value of these assets reported on TAP's balance sheet as of January 1, 2018 a) $ 1,070 million b) $ 890 million c) $1,170 million d) $1,140 million
The following information is available for Sage Hill Corporation for the year ended December 31, 2022. Beginning cash balance $43,000 Accounts payable decrease 3,500 Depreciation expense 75,000 Accounts receivable increase 8,700 Inventory increase 12,100 Net income 337,000 Cash received for sale of land at book value 43,000 Sales revenue 740,000 Cash dividends paid 11,800 Income tax payable increase 4,400 Cash used to purchase building 145,000 Cash used to purchase treasury stock 33,900Cash received from issuing bonds 258,000Required:1. Prepare a 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).)
Based on the following selected data, journalize the adjusting entries as of December 31 of the current year. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" and leave the amount boxes blank. a. Estimated uncollectible accounts at December 31, $16,000, based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $2,000 (debit).b. The physical inventory on December 31 indicated an inventory shrinkage of $3,300.c. Prepaid insurance expired during the year, $22,820.d. Office supplies used during the year, $3,920.e. A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for 8 years.f. The cost of mineral rights was $546,000. Of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year.g. Vacation pay expense for December, $10,500.h. Interest was accrued on the $100,000, 9% note receivable received on October 17. Assume 360 days per year.
On December 31, 2020, Berclair Inc. had 460 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $700 million. The income tax rate is 25%. Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2016. The options are exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price of the common shares averaged $70 per share. In 2017, $50.0 million of 8% bonds, convertible into 6 million common shares, were issued at face value.Required: Compute Berciair's basic and diluted earnings per share for the year ended December 31, 2021.
Gains from tradeConsider two neighboring island countries called Felicidad and Arcadia. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor.Jeans RyeCountry (Pairs per hour of labor) (Bushels per hour of labor)Felicidad 5 20Arcadia 8 16Initially, suppose Arcadia uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye while Felicidad uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Felicidad produces 15 million pairs of jeans and 20 million bushels of rye, and Arcadia produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.1. Felicidad's opportunity cost of producing 1 pair of jeans is (1/2, 1/4, 2, 4 Buschels) of rye, and Arcadia's opportunity cost of producing 1 pair of jeans is (1/2, 1/4, 2, 4 Buschels) of rye. Therefore, (Arcadia, Felicia) has a comparative advantage in the production of jeans, and has a comparative advantage in the production of rye.2. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce _____ million pairs per week, and the country that produces rye will produce ____ million bushels per week.Suppose the country that produces jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of rye.3. When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of rye was 68 million bushels per week. Because of specialization, the total production of jeans has increased by_____million pairs per week, and the total production of rye has increased by____million bushels per week.Because the two countries produce more jeans and more rye under specialization, each country is able to gain from trade.4. Complete the table: Production, Consumption, Trade Action, Increase in Consumption. For the answer choices of Trade Action: Jeans(Exports 18, Imports 18), Rye (Exports 54, Imports 54) Everything else are numerical values.Felicia Felica Arcadia ArcadiaJeans Rye Jeans Rye (Millions) (Millions) (Millions) (Millions)Without Trade Production 15 20 8 48Consumption 15 20 8 48With Trade Production Trade Action Consumption Gains from Trade Increase in Trade
At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $2,000,000,and direct labor costs, $500,000. At year-end, the companys records show that actual overhead costs for the year are $949,700. Actual direct labor cost had been assigned to jobs as follows.Movies completed and released $400,000Movies still in production 36,000Total actual direct labor cost $436,000Required:1) Determine the predetermined overhead rate for the year.2) Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied.3) Prepare the adjusting entry to allocate any over or underapplied overhead to Cost of Goods Sold.