Presented below is selected information from the Greenville Company's current period accounting records (in $000s):
Sales $10,000
Raw Materials Used 2,500
Direct Labor Costs 1,000
Period Costs (Selling and Administrative) 2,500
Beginning Raw Material Inventory 300
Ending Raw Material Inventory 1,000
Net Income 200
Beginning Work-in-Process Inventory 0
Ending Work-in-Process Inventory 300
Beginning Finished Goods Inventory 700
Ending Finished Goods Inventory 400
* NOTE: All raw materials used were direct materials.
Question:
Determine the following (in dollars):
a. Raw Material Purchases
b. Gross Profit
c. Cost of Goods Manufactured
d. Manufacturing Overhead
Click here for the solution: Presented below is selected information from the Greenville Company's current period accounting records (in $000s)
Showing posts with label presented. Show all posts
Showing posts with label presented. Show all posts
Friday, April 15, 2016
Monday, March 21, 2016
Presented below is information related to Blowfish radios for Hootie Company for the month of July
E8-16 (Compute FIFO, LIFO, Average-Cost-Periodic) Presented below is information related to Blowfish radios for Hootie Company for the month of July.
Date Transaction Units In Unit Cost Total Units Sold Sell Price Total
July 1 Balance 100 $4.10 $410
July 6 Purchase 800 $4.20 $3360
July 7 Sale 300 $7.00 $2100
July 10 Sale 300 $7.30 $2190
July 12 Purchase 400 $4.50 $1800
July 15 Sale 200 $7.40 $1480
July 18 Purchase 300 $4.60 $1380
July 22 Sale 400 $7.40 $2960
July 25 Purchase 500 $4.58 $2290
July 30 Sale 200 $7.50 $1500
2100 $9240 1400 $10,230
Instructions
a.) Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions:
1.) FIFO
2.) LIFO
3.) Weighted-average round the average unit cost to the nearest one tenth of one cent
b.) Answer the following questions
1.) Which of the following methods used above all will yield the lowest figure for ending figure for gross profit for the income statement? Why?
2.) Which of the methods used above will yield the lowest figure for ending inventory for the balance sheet? Why?
Click here for the solution: Presented below is information related to Blowfish radios for Hootie Company for the month of July
Date Transaction Units In Unit Cost Total Units Sold Sell Price Total
July 1 Balance 100 $4.10 $410
July 6 Purchase 800 $4.20 $3360
July 7 Sale 300 $7.00 $2100
July 10 Sale 300 $7.30 $2190
July 12 Purchase 400 $4.50 $1800
July 15 Sale 200 $7.40 $1480
July 18 Purchase 300 $4.60 $1380
July 22 Sale 400 $7.40 $2960
July 25 Purchase 500 $4.58 $2290
July 30 Sale 200 $7.50 $1500
2100 $9240 1400 $10,230
Instructions
a.) Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions:
1.) FIFO
2.) LIFO
3.) Weighted-average round the average unit cost to the nearest one tenth of one cent
b.) Answer the following questions
1.) Which of the following methods used above all will yield the lowest figure for ending figure for gross profit for the income statement? Why?
2.) Which of the methods used above will yield the lowest figure for ending inventory for the balance sheet? Why?
Click here for the solution: Presented below is information related to Blowfish radios for Hootie Company for the month of July
Thursday, January 14, 2016
Presented below is information related to Bruce Van Company
Presented below is information related to Bruce Van Company.
Retained earnings, December 31, 2010 $ 650,000
Sales 1,400,000
Selling and administrative expenses 240,000
Hurricane loss (pre-tax) on plant (extraordinary item) 290,000
Cash dividends declared on common stock 33,600
Cost of goods sold 780,000
Gain resulting from computation error 520,000
on depreciation charge in 2009(pre-tax)
Other revenue 120,000
Other expenses 100,000
Instructions
Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. Show EPS computations as well.
Click here for the solution: Presented below is information related to Bruce Van Company
Retained earnings, December 31, 2010 $ 650,000
Sales 1,400,000
Selling and administrative expenses 240,000
Hurricane loss (pre-tax) on plant (extraordinary item) 290,000
Cash dividends declared on common stock 33,600
Cost of goods sold 780,000
Gain resulting from computation error 520,000
on depreciation charge in 2009(pre-tax)
Other revenue 120,000
Other expenses 100,000
Instructions
Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. Show EPS computations as well.
Click here for the solution: Presented below is information related to Bruce Van Company
Wednesday, November 25, 2015
Presented on page 890 are two independent situations
Exercise 17-12 (E17-12) (Journal Entries for Fair Value and Equity Methods) Presented on page 890 are two independent situations.
Situation 1
Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2007. On June 30, Martinez declared and paid a $75,000 cash dividend. On December 31, Martinez reported net income of $122,000 for the year. At December 31, the market price of Martinez Fashion was $15 per share. The securities are classified as available-for-sale.
Situation 2
Monica, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles’s 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2007. On June 15, Seles declared and paid a cash dividend of $36,000. On December 31, Seles reported a net income of $85,000 for the year.
Instructions
Prepare all necessary journal entries in 2007 for both situations.
Click here for the solution: Presented on page 890 are two independent situations
Situation 1
Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2007. On June 30, Martinez declared and paid a $75,000 cash dividend. On December 31, Martinez reported net income of $122,000 for the year. At December 31, the market price of Martinez Fashion was $15 per share. The securities are classified as available-for-sale.
Situation 2
Monica, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles’s 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2007. On June 15, Seles declared and paid a cash dividend of $36,000. On December 31, Seles reported a net income of $85,000 for the year.
Instructions
Prepare all necessary journal entries in 2007 for both situations.
Click here for the solution: Presented on page 890 are two independent situations
Wednesday, November 11, 2015
Presented below are two independent situations
E14-3 (Entries for Bond Transactions) Presented below are two independent situations.
1.) On January 1. 2008, Paul Simon Company issued $200,000 of 9%. 10-year bonds dated June 1 at par. Interest quarterly on April 1, July 1, October 1 and January 1.
2.) On January 1, 2008, Graceland Company issued $100,000 of 12%, 10-year bonds dated June 1 at par. Interest is payable semiannually on July 1 and January 1.
Instructions
For each of these two independent situations, prepare journal entries to record:
a.) The issuance of bonds
b.) The payment of interest on July 1
c.) The accrual of interest on December 31
Click here for the solution: Presented below are two independent situations
1.) On January 1. 2008, Paul Simon Company issued $200,000 of 9%. 10-year bonds dated June 1 at par. Interest quarterly on April 1, July 1, October 1 and January 1.
2.) On January 1, 2008, Graceland Company issued $100,000 of 12%, 10-year bonds dated June 1 at par. Interest is payable semiannually on July 1 and January 1.
Instructions
For each of these two independent situations, prepare journal entries to record:
a.) The issuance of bonds
b.) The payment of interest on July 1
c.) The accrual of interest on December 31
Click here for the solution: Presented below are two independent situations
Wednesday, October 14, 2015
The trial balances before and after adjustment for Garcia Company at the end of its fiscal year is presented below
E3-13 The trial balances before and after adjustment for Garcia Company at the end of its fiscal year is presented below.
GARCIA COMPANY
Trial Balance
August 31, 2008
Before Adjustment After Adjustment
Dr. Cr. Dr. Cr.
Cash $10,400 $10,400
Accounts Receivable 8,800 9,800
Office Supplies 2,300 700
Prepaid Insurance 4,000 2,500
Office Equipment 14,000 14,000
Accumulated Depreciation–Office Equipment $3,600 $4,500
Accounts Payable 5,800 5,800
Salaries Payable -0- 1,100
Unearned Rent 1,500 600
Common Stock 10,000 10,000
Retained Earnings 5,600 5,600
Service Revenue 34,000 35,000
Rent Revenue 11,000 11,900
Salaries Expense 17,000 18,100
Office Supplies Expense -0- 1,600
Rent Expense 15,000 15,000
Insurance Expense -0- 1,500
Depreciation Expense -0- 900
$71,500 $71,500 $74,500 $74,500
Instructions
Prepare the adjusting entries that were made.
Click here for the solution: The trial balances before and after adjustment for Garcia Company at the end of its fiscal year is presented below
GARCIA COMPANY
Trial Balance
August 31, 2008
Before Adjustment After Adjustment
Dr. Cr. Dr. Cr.
Cash $10,400 $10,400
Accounts Receivable 8,800 9,800
Office Supplies 2,300 700
Prepaid Insurance 4,000 2,500
Office Equipment 14,000 14,000
Accumulated Depreciation–Office Equipment $3,600 $4,500
Accounts Payable 5,800 5,800
Salaries Payable -0- 1,100
Unearned Rent 1,500 600
Common Stock 10,000 10,000
Retained Earnings 5,600 5,600
Service Revenue 34,000 35,000
Rent Revenue 11,000 11,900
Salaries Expense 17,000 18,100
Office Supplies Expense -0- 1,600
Rent Expense 15,000 15,000
Insurance Expense -0- 1,500
Depreciation Expense -0- 900
$71,500 $71,500 $74,500 $74,500
Instructions
Prepare the adjusting entries that were made.
Click here for the solution: The trial balances before and after adjustment for Garcia Company at the end of its fiscal year is presented below
(Bad-Debt Reporting) Presented below are a series of unrelated situations
P7-2 (Bad-Debt Reporting) Presented below are a series of unrelated situations.
1. Halen Company’s unadjusted trial balance at December 31, 2010, included the following accounts.
Debit Credit
Allowance for doubtful accounts $4,000
Net Sales $1,200,000
Halen Company estimates its bad debt expense to be 1 and 1/2% of net sales. Determine its bad debt expense for 2010.
2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2010, disclosed the following.
Amounts estimated to be uncollectible $ 180,000
Accounts receivable 1,750,000
Allowance for doubtful accounts (per books) 125,000
What is the net realizable value of Stuart’s receivables at December 31, 2010?
3. Shore Co. provides for doubtful accounts based on 3% of credit sales. The following data are available for 2010.
Credit sales during 2010 $2,400,000
Allowance for doubtful accounts 1/1/10 17,000
Collection of accounts written off in prior years (customer credit was reestablished) 8,000
Customer accounts written off as uncollectible during 2010 30,000
What is the balance in the Allowance for Doubtful Accounts at December 31, 2010?
4. At the end of its first year of operations, December 31, 2010, Darden Inc. reported the following information.
Accounts receivable, net of allowance for doubtful accounts $950,000
Customer accounts written off as uncollectible during 2010 24,000
Bad debt expense for 2010 84,000
What should be the balance in accounts receivable at December 31, 2010, before subtracting the allowance for doubtful accounts?
5. The following accounts were taken from Bullock Inc.’s trial balance at December 31, 2010.
Debit Credit
Net credit sales $750,000
Allowance for doubtful accounts $14,000
Accounts receivable 310,000
If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2010.
Instructions
Answer the questions relating to each of the five independent situations are requested.
Click here for the solution: (Bad-Debt Reporting) Presented below are a series of unrelated situations
1. Halen Company’s unadjusted trial balance at December 31, 2010, included the following accounts.
Debit Credit
Allowance for doubtful accounts $4,000
Net Sales $1,200,000
Halen Company estimates its bad debt expense to be 1 and 1/2% of net sales. Determine its bad debt expense for 2010.
2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2010, disclosed the following.
Amounts estimated to be uncollectible $ 180,000
Accounts receivable 1,750,000
Allowance for doubtful accounts (per books) 125,000
What is the net realizable value of Stuart’s receivables at December 31, 2010?
3. Shore Co. provides for doubtful accounts based on 3% of credit sales. The following data are available for 2010.
Credit sales during 2010 $2,400,000
Allowance for doubtful accounts 1/1/10 17,000
Collection of accounts written off in prior years (customer credit was reestablished) 8,000
Customer accounts written off as uncollectible during 2010 30,000
What is the balance in the Allowance for Doubtful Accounts at December 31, 2010?
4. At the end of its first year of operations, December 31, 2010, Darden Inc. reported the following information.
Accounts receivable, net of allowance for doubtful accounts $950,000
Customer accounts written off as uncollectible during 2010 24,000
Bad debt expense for 2010 84,000
What should be the balance in accounts receivable at December 31, 2010, before subtracting the allowance for doubtful accounts?
5. The following accounts were taken from Bullock Inc.’s trial balance at December 31, 2010.
Debit Credit
Net credit sales $750,000
Allowance for doubtful accounts $14,000
Accounts receivable 310,000
If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2010.
Instructions
Answer the questions relating to each of the five independent situations are requested.
Click here for the solution: (Bad-Debt Reporting) Presented below are a series of unrelated situations
Friday, October 9, 2015
Presented here are the components in Korinek Company’s income statement
ACC 290 Week 5 Assignment
BE5-1 Presented here are the components in Korinek Company’s income statement. Determine the missing amounts.
Sales Cost of Gross Operating Net
Revenue Goods Sold Profit Expenses Income
$ 71,200 (b) $ 30,000 (d) $12,100
$108,000 $70,000 (c) (e) $29,500
(a) $71,900 $109,600 $46,200 (f )
Click here for the solution: Presented here are the components in Korinek Company’s income statement
BE5-1 Presented here are the components in Korinek Company’s income statement. Determine the missing amounts.
Sales Cost of Gross Operating Net
Revenue Goods Sold Profit Expenses Income
$ 71,200 (b) $ 30,000 (d) $12,100
$108,000 $70,000 (c) (e) $29,500
(a) $71,900 $109,600 $46,200 (f )
Click here for the solution: Presented here are the components in Korinek Company’s income statement
Monday, October 5, 2015
The trial balance for the General Fund of the City of Fairfield as of December 31, 2008, is presented here
Balance Sheet, Statement of Revenues, Expenditures, and Changes in Fund Balance
The trial balance for the General Fund of the City of Fairfield as of December 31, 2008, is presented here:
City of Fairfield
The General Fund
Adjusted Trial Balance
December 31, 2008
Debit Credit
Cash $430,000
Property Tax Receivable 45,000
Estimated Uncollectible Taxes $ 20,000
Due from Trust Fund 50,000
Vouchers Payable 60,000
Reserve for Encumbrances 30,000
Unreserved Fund Balance 415,000
$525,000 $525,000
Transactions for the year ended December 31, 2009, are summarized as follows:
1. The City Council adopted a budget for the year with estimated revenue of $735,000 and appropriations of $700,000.
2. Property taxes in the amount of $590,000 were levied for the current year. It is estimated that $24,000 of the taxes levied will prove to be uncollectible.
3. Proceeds from the sale of equipment in the amount of $35,000 were received by the General Fund. The equipment was purchased 10 years ago with resources of the General Fund at a cost of $150,000. On the date of purchase, it was estimated that the equipment had a useful life of 15 years.
4. Licenses and fees in the amount of $110,000 were collected.
5. The total amount of encumbrances against fund resources for the year was $642,500.
6. Vouchers in the amount of $455,000 were authorized for payment. This was $15,000 less than the amount originally encumbered for these purchases.
7. An invoice in the amount of $28,000 was received for goods ordered in 2008. The invoice was approved for payment.
8. Property taxes in the amount of $570,000 were collected.
9. Vouchers in the amount of $475,000 were paid.
10. Fifty thousand dollars was transferred to the General Fund from the Trust Fund.
11. The City Council authorized the write-off of $30,000 in uncollected property taxes.
Required:
A. Prepare entries in general journal form to record the transactions for the year ended December 31, 2009.
B. Prepare a preclosing trial balance for the General Fund as of December 31, 2009.
C. Prepare the necessary closing entries for the year ended December 31, 2009.
D. Prepare a balance sheet and a statement of revenues, expenditures, and changes in fund balance for the General Fund for the year ended December 31, 2009.
Click here for the solution: The trial balance for the General Fund of the City of Fairfield as of December 31, 2008, is presented here
The trial balance for the General Fund of the City of Fairfield as of December 31, 2008, is presented here:
City of Fairfield
The General Fund
Adjusted Trial Balance
December 31, 2008
Debit Credit
Cash $430,000
Property Tax Receivable 45,000
Estimated Uncollectible Taxes $ 20,000
Due from Trust Fund 50,000
Vouchers Payable 60,000
Reserve for Encumbrances 30,000
Unreserved Fund Balance 415,000
$525,000 $525,000
Transactions for the year ended December 31, 2009, are summarized as follows:
1. The City Council adopted a budget for the year with estimated revenue of $735,000 and appropriations of $700,000.
2. Property taxes in the amount of $590,000 were levied for the current year. It is estimated that $24,000 of the taxes levied will prove to be uncollectible.
3. Proceeds from the sale of equipment in the amount of $35,000 were received by the General Fund. The equipment was purchased 10 years ago with resources of the General Fund at a cost of $150,000. On the date of purchase, it was estimated that the equipment had a useful life of 15 years.
4. Licenses and fees in the amount of $110,000 were collected.
5. The total amount of encumbrances against fund resources for the year was $642,500.
6. Vouchers in the amount of $455,000 were authorized for payment. This was $15,000 less than the amount originally encumbered for these purchases.
7. An invoice in the amount of $28,000 was received for goods ordered in 2008. The invoice was approved for payment.
8. Property taxes in the amount of $570,000 were collected.
9. Vouchers in the amount of $475,000 were paid.
10. Fifty thousand dollars was transferred to the General Fund from the Trust Fund.
11. The City Council authorized the write-off of $30,000 in uncollected property taxes.
Required:
A. Prepare entries in general journal form to record the transactions for the year ended December 31, 2009.
B. Prepare a preclosing trial balance for the General Fund as of December 31, 2009.
C. Prepare the necessary closing entries for the year ended December 31, 2009.
D. Prepare a balance sheet and a statement of revenues, expenditures, and changes in fund balance for the General Fund for the year ended December 31, 2009.
Click here for the solution: The trial balance for the General Fund of the City of Fairfield as of December 31, 2008, is presented here
Sunday, September 27, 2015
The comparative balance sheets of Nike, Inc. are presented here
E13-5 The comparative balance sheets of Nike, Inc. are presented here.
NIKE, INC.
Comparative Balance Sheets
May 31
($ in millions)
Assets
2007 2006
Current assets $ 8,076 $7,346
Property, plant, and equipment (net) 1,678 1,658
Other assets 934 866
Total assets $10,688 $9,870
Liabilities and Stockholders’ Equity
Current liabilities $ 2,584 $2,612
Long-term liabilities 1,079 973
Stockholders’ equity 7,025 6,285
Total liabilities and stockholders’ equity $10,688 $9,870
Instructions
(a) Prepare a horizontal analysis of the balance sheet data for Nike using 2006 as a base. (Show the amount of increase or decrease as well.)
(b) Prepare a vertical analysis of the balance sheet data for Nike for 2007.
Click here for the solution: The comparative balance sheets of Nike, Inc. are presented here
NIKE, INC.
Comparative Balance Sheets
May 31
($ in millions)
Assets
2007 2006
Current assets $ 8,076 $7,346
Property, plant, and equipment (net) 1,678 1,658
Other assets 934 866
Total assets $10,688 $9,870
Liabilities and Stockholders’ Equity
Current liabilities $ 2,584 $2,612
Long-term liabilities 1,079 973
Stockholders’ equity 7,025 6,285
Total liabilities and stockholders’ equity $10,688 $9,870
Instructions
(a) Prepare a horizontal analysis of the balance sheet data for Nike using 2006 as a base. (Show the amount of increase or decrease as well.)
(b) Prepare a vertical analysis of the balance sheet data for Nike for 2007.
Click here for the solution: The comparative balance sheets of Nike, Inc. are presented here
Preston Library, a nonprofit organization, presented the following statement of financial position and statement of activities
PROBLEM 19-5 Journal Entries—Financial Statements—Library
Preston Library, a nonprofit organization, presented the following statement of financial position and statement of activities for its fiscal year ended February 28, 2007.
Preston Library
Statement of Financial Position
February 28, 2007
Temporarily
Assets Unrestricted Restricted
Current Assets
Cash $ 285,000 $80,000
Grants Receivable 80,000
Prepaid Expenses 65,000
Total 430,000
Investments (at market) 1,020,000
Land, Building, and Equipment
(less accumulated depreciation of $50,000) 530,000
Total Assets $1,980,000 $80,000
Liabilities and Fund Balances
Current Liabilities
Accounts Payable and Accrued Expenses $ 150,000
Total 150,000
Long-Term Debt 200,000
Fund Balances 1,630,000 80,000
Total Liabilities and Fund Balances $1,980,000 $80,000Preston Library
Statement of Activities
for Year Ended February 28, 2007
Temporarily
Support and Revenue Unrestricted Restricted
Support
Grants $ 70,000 $—0—
Gifts 300,000 80,000
Total 370,000 80,000
Revenue
Service Fees 22,000
Book Rentals and Fines 107,000
Investment Income 71,000
Total 200,000 —0—
Total Support and Revenue $ 570,000 $80,000
Expenses
Program Services
Circulating library $ 212,000
Research library 86,000
Exhibits 20,000
Community services 10,000
Total 328,000 —0—
Supporting Services
General and administrative 175,000
Fund raising 111,000
Total 286,000 —0—
Total Expenses 614,000 —0—
Increase (decrease) in net assets (44,000) 80,000
Fund Balances—beginning of year 1,674,000 —0—
Fund Balances—end of year $1,630,000 $80,000
The following transactions occurred during the fiscal year ended February 28, 2008.
1. Fees were billed as follows:
Service fees $30,000
Book rentals 43,000
Book fines 78,000
2. $40,000 of the Grant Receivable was received. Another grant in the amount of $20,000 was promised.
3. Contributions in the amounts summarized below were received:
Unrestricted $215,000
Restricted 108,000
4. Investment income totaled $75,000 for the year.
5. Vouchers for the year were approved as follows:
Circulating library $189,000
Research library 74,000
Exhibits 15,000
Community services 12,000
General and administrative 166,000
Fund raising 103,000
Total $559,000
6. During the year, $500,000 worth of vouchers were paid.
Adjustment Data
7. Accounts Payable and Accrued Expenses at February 28, 2008, should be $217,000. The difference should be allocated to the following expenses:
Research library $5,000
General and administrative 3,000
8. Additions to the research library in the amount of $68,000 that were approved in (5) above were made in accordance with the terms of a contribution that had been received earlier and that was restricted for that purpose.
9. The current market value of the investments is $1,035,000 (no investment transactions occurred).
10. Depreciation amounted to $9,000 for the year. It should be allocated as follows:
Circulating library $3,500
Research library 2,900
General and administrative 2,600
11. Prepaid Expenses should be $60,000. The difference should be allocated to:
Exhibits $3,700
General and administrative 1,300
Required:
A. Prepare journal entries to record the transactions.
B. Prepare the statement of financial position and the statement of activities for the year ended February 28, 2008.
Click here for the solution: Preston Library, a nonprofit organization, presented the following statement of financial position and statement of activities
Preston Library, a nonprofit organization, presented the following statement of financial position and statement of activities for its fiscal year ended February 28, 2007.
Preston Library
Statement of Financial Position
February 28, 2007
Temporarily
Assets Unrestricted Restricted
Current Assets
Cash $ 285,000 $80,000
Grants Receivable 80,000
Prepaid Expenses 65,000
Total 430,000
Investments (at market) 1,020,000
Land, Building, and Equipment
(less accumulated depreciation of $50,000) 530,000
Total Assets $1,980,000 $80,000
Liabilities and Fund Balances
Current Liabilities
Accounts Payable and Accrued Expenses $ 150,000
Total 150,000
Long-Term Debt 200,000
Fund Balances 1,630,000 80,000
Total Liabilities and Fund Balances $1,980,000 $80,000Preston Library
Statement of Activities
for Year Ended February 28, 2007
Temporarily
Support and Revenue Unrestricted Restricted
Support
Grants $ 70,000 $—0—
Gifts 300,000 80,000
Total 370,000 80,000
Revenue
Service Fees 22,000
Book Rentals and Fines 107,000
Investment Income 71,000
Total 200,000 —0—
Total Support and Revenue $ 570,000 $80,000
Expenses
Program Services
Circulating library $ 212,000
Research library 86,000
Exhibits 20,000
Community services 10,000
Total 328,000 —0—
Supporting Services
General and administrative 175,000
Fund raising 111,000
Total 286,000 —0—
Total Expenses 614,000 —0—
Increase (decrease) in net assets (44,000) 80,000
Fund Balances—beginning of year 1,674,000 —0—
Fund Balances—end of year $1,630,000 $80,000
The following transactions occurred during the fiscal year ended February 28, 2008.
1. Fees were billed as follows:
Service fees $30,000
Book rentals 43,000
Book fines 78,000
2. $40,000 of the Grant Receivable was received. Another grant in the amount of $20,000 was promised.
3. Contributions in the amounts summarized below were received:
Unrestricted $215,000
Restricted 108,000
4. Investment income totaled $75,000 for the year.
5. Vouchers for the year were approved as follows:
Circulating library $189,000
Research library 74,000
Exhibits 15,000
Community services 12,000
General and administrative 166,000
Fund raising 103,000
Total $559,000
6. During the year, $500,000 worth of vouchers were paid.
Adjustment Data
7. Accounts Payable and Accrued Expenses at February 28, 2008, should be $217,000. The difference should be allocated to the following expenses:
Research library $5,000
General and administrative 3,000
8. Additions to the research library in the amount of $68,000 that were approved in (5) above were made in accordance with the terms of a contribution that had been received earlier and that was restricted for that purpose.
9. The current market value of the investments is $1,035,000 (no investment transactions occurred).
10. Depreciation amounted to $9,000 for the year. It should be allocated as follows:
Circulating library $3,500
Research library 2,900
General and administrative 2,600
11. Prepaid Expenses should be $60,000. The difference should be allocated to:
Exhibits $3,700
General and administrative 1,300
Required:
A. Prepare journal entries to record the transactions.
B. Prepare the statement of financial position and the statement of activities for the year ended February 28, 2008.
Click here for the solution: Preston Library, a nonprofit organization, presented the following statement of financial position and statement of activities
Presented is information related to Rogers Co. for the month of January 2008
E5-8 Presented is information related to Rogers Co. for the month of January 2008.
Ending inventory per perpetual records $21,600
Ending inventory actually on hand 21,000
Cost of goods sold 218,000
Freight-out 7,000
Insurance expense 12,000
Rent expense 20,000
Salary Expense 61,000
Sales Discounts 10,000
Sales Returns and Allowances 13,000
Sales 350,000
Instructions
(a) Prepare the necessary adjusting entry for inventory.
(b) Prepare the necessary closing entries.
Click here for the solution: Presented is information related to Rogers Co. for the month of January 2008
Ending inventory per perpetual records $21,600
Ending inventory actually on hand 21,000
Cost of goods sold 218,000
Freight-out 7,000
Insurance expense 12,000
Rent expense 20,000
Salary Expense 61,000
Sales Discounts 10,000
Sales Returns and Allowances 13,000
Sales 350,000
Instructions
(a) Prepare the necessary adjusting entry for inventory.
(b) Prepare the necessary closing entries.
Click here for the solution: Presented is information related to Rogers Co. for the month of January 2008
Friday, September 25, 2015
Glendo Industries' balance sheet at December 31, 2008, is presented below (ACC 560 Week 6)
ACC 560 Week 6 Assignment
P9-6A Glendo Industries' balance sheet at December 31, 2008, is presented below.
GLENDO INDUSTRIES
Balance Sheet
December 31, 2008
Assets
Current assets
Cash $7,500
Accounts receivable 82,500
Finished goods inventory (2,000 units) 30,000
Total current assets 120,000
Property, plant, and equipment
Equipment $40,000
Less: Accumulated depreciation 10,000 30,000
Total assets $150,000
Liabilities and Stockholders' Equity
Liabilities
Notes payable $25,000
Accounts payable 45,000
Total liabilities 70,000
Stockholders' equity
Common stock $50,000
Retained earnings 30,000
Total stockholders' equity 80,000
Total liabilities and stockholders' equity $150,000
Additional information accumulated for the budgeting process is as follows.
Budgeted data for the year 2009 include the following.
4th Qtr.
of 2009 Year 2009
Total
Sales budget (8,000 units at $35) $84,000 $280,000
Direct materials used 17,000 69,400
Direct labor 12,500 56,600
Manufacturing overhead applied 10,000 54,000
Selling and administrative expenses 18,000 76,000
To meet sales requirements and to have 3,000 units of finished goods on hand at December 31, 2009, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $20. Glendo Industries uses the first-in, first-out (FIFO) inventory costing method. Selling and administrative expenses include $4,000 for depreciation on equipment. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 30% of income before income taxes.
All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2009, the company expects to purchase additional equipment costing $19,000. It expects to pay $8,000 on notes payable plus all interest due and payable to December 31 (included in interest expense $3,500, above). Accounts payable at December 31, 2009, includes amounts due suppliers (see above) plus other accounts payable of $5,700. In 2009, the company expects to declare and pay a $5,000 cash dividend. Unpaid income taxes at December 31 will be $5,000.The company's cash budget shows an expected cash balance of $7,950 at December 31, 2009.
Instructions
Prepare a budgeted income statement for 2009 and a budgeted balance sheet at December 31, 2009. In preparing the income statement, you will need to compute cost of goods manufactured (direct materials + direct labor + manufacturing overhead) and finished goods inventory (December 31, 2009).
Click here for the solution: Glendo Industries' balance sheet at December 31, 2008, is presented below (ACC 560 Week 6)
P9-6A Glendo Industries' balance sheet at December 31, 2008, is presented below.
GLENDO INDUSTRIES
Balance Sheet
December 31, 2008
Assets
Current assets
Cash $7,500
Accounts receivable 82,500
Finished goods inventory (2,000 units) 30,000
Total current assets 120,000
Property, plant, and equipment
Equipment $40,000
Less: Accumulated depreciation 10,000 30,000
Total assets $150,000
Liabilities and Stockholders' Equity
Liabilities
Notes payable $25,000
Accounts payable 45,000
Total liabilities 70,000
Stockholders' equity
Common stock $50,000
Retained earnings 30,000
Total stockholders' equity 80,000
Total liabilities and stockholders' equity $150,000
Additional information accumulated for the budgeting process is as follows.
Budgeted data for the year 2009 include the following.
4th Qtr.
of 2009 Year 2009
Total
Sales budget (8,000 units at $35) $84,000 $280,000
Direct materials used 17,000 69,400
Direct labor 12,500 56,600
Manufacturing overhead applied 10,000 54,000
Selling and administrative expenses 18,000 76,000
To meet sales requirements and to have 3,000 units of finished goods on hand at December 31, 2009, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $20. Glendo Industries uses the first-in, first-out (FIFO) inventory costing method. Selling and administrative expenses include $4,000 for depreciation on equipment. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 30% of income before income taxes.
All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2009, the company expects to purchase additional equipment costing $19,000. It expects to pay $8,000 on notes payable plus all interest due and payable to December 31 (included in interest expense $3,500, above). Accounts payable at December 31, 2009, includes amounts due suppliers (see above) plus other accounts payable of $5,700. In 2009, the company expects to declare and pay a $5,000 cash dividend. Unpaid income taxes at December 31 will be $5,000.The company's cash budget shows an expected cash balance of $7,950 at December 31, 2009.
Instructions
Prepare a budgeted income statement for 2009 and a budgeted balance sheet at December 31, 2009. In preparing the income statement, you will need to compute cost of goods manufactured (direct materials + direct labor + manufacturing overhead) and finished goods inventory (December 31, 2009).
Click here for the solution: Glendo Industries' balance sheet at December 31, 2008, is presented below (ACC 560 Week 6)
Presented below are some business transactions that occurred during 2008 for Vicki Prowitz Company
E7-2 Presented below are some business transactions that occurred during 2008 for Vicki Prowitz Company.
(a) Merchandise inventory with a cost of $208,000 is reported at its market value of $260,000.The following entry was made.
Merchandise Inventory 52,000
Gain 52,000
(b) Equipment worth $62,000 was acquired at a cost of $41,000 from a company that had water damage in a flood.The following entry was made.
Equipment 62,000
Cash 41,000
Gain on Purchase of Equipment 21,000
(c) The president of Vicki Prowitz Company, Mark Nabke, purchased a truck for personal use and charged it to his expense account.The following entry was made.
Travel Expense 18,000
Cash 18,000
(d) An electric pencil sharpener costing $50 is being depreciated over 5 years. The following entry was made.
Depreciation Expense—Pencil Sharpener 10
Accumulated Depreciation—Pencil Sharpener 10
Instructions
In each of the situations above, identify the assumption, principle, or constraint that has been violated, if any. Discuss the appropriateness of the journal entries, and give the correct journal entry, if necessary.
Click here for the solution: Presented below are some business transactions that occurred during 2008 for Vicki Prowitz Company
(a) Merchandise inventory with a cost of $208,000 is reported at its market value of $260,000.The following entry was made.
Merchandise Inventory 52,000
Gain 52,000
(b) Equipment worth $62,000 was acquired at a cost of $41,000 from a company that had water damage in a flood.The following entry was made.
Equipment 62,000
Cash 41,000
Gain on Purchase of Equipment 21,000
(c) The president of Vicki Prowitz Company, Mark Nabke, purchased a truck for personal use and charged it to his expense account.The following entry was made.
Travel Expense 18,000
Cash 18,000
(d) An electric pencil sharpener costing $50 is being depreciated over 5 years. The following entry was made.
Depreciation Expense—Pencil Sharpener 10
Accumulated Depreciation—Pencil Sharpener 10
Instructions
In each of the situations above, identify the assumption, principle, or constraint that has been violated, if any. Discuss the appropriateness of the journal entries, and give the correct journal entry, if necessary.
Click here for the solution: Presented below are some business transactions that occurred during 2008 for Vicki Prowitz Company
Selected financial statement information and additional data for Johnston Enterprises is presented below
Selected financial statement information and additional data for
Johnston Enterprises is presented below. Prepare a statement of cash
flows for the year ending December 31, 2010
Johnston Enterprises
Balance Sheet and Income Statement Data
December 31, December 31,
2010 2009___
Current Assets:
Cash $153,000 $119,000
Accounts Receivable 238,000 306,000
Inventory 391,000 340,000
Total Current Assets 782,000 765,000
Property, Plant, and Equipment 1,241,000 1,122,000
Less: Accumulated Depreciation (476,000) (442,000)
Total Assets $1,547,000 $1,445,000
Current Liabilities:
Accounts Payable $187,000 $102,000
Notes Payable 51,000 68,000
Income Tax Payable 85,000 76,500
Total Current Liabilities 323,000 246,500
Bonds Payable 340,000 391,000
Total Liabilities 663,000 637,500
Stockholders' Equity:
Common Stock 510,000 467,500
Retained Earnings 374,000 340,000
Total Stockholders' Equity 884,000 807,500
Total Liabilities & Stockholders' Equity $1,547,000 $1,445,000
Sales 1,615,000 $1,513,000
Less Cost of Goods Sold 731,000 731,000
Gross Profit 884,000 782,000
Expenses:
Depreciation Expense 153,000 136,000
Salary Expense 391,000 357,000
Interest Expense 34,000 34,000
Loss on Sale of Equipment 17,000 0
Income Before Taxes 289,000 255,000
Less Income Tax Expense 119,000 102,000
Net Income $170,000 $153,000
Additional Information:
During the year, Johnston sold equipment with an original cost of $153,000 and accumulated depreciation of $119,000 and purchased new equipment for $272,000.
Click here for the solution: Selected financial statement information and additional data for Johnston Enterprises is presented below
Johnston Enterprises
Balance Sheet and Income Statement Data
December 31, December 31,
2010 2009___
Current Assets:
Cash $153,000 $119,000
Accounts Receivable 238,000 306,000
Inventory 391,000 340,000
Total Current Assets 782,000 765,000
Property, Plant, and Equipment 1,241,000 1,122,000
Less: Accumulated Depreciation (476,000) (442,000)
Total Assets $1,547,000 $1,445,000
Current Liabilities:
Accounts Payable $187,000 $102,000
Notes Payable 51,000 68,000
Income Tax Payable 85,000 76,500
Total Current Liabilities 323,000 246,500
Bonds Payable 340,000 391,000
Total Liabilities 663,000 637,500
Stockholders' Equity:
Common Stock 510,000 467,500
Retained Earnings 374,000 340,000
Total Stockholders' Equity 884,000 807,500
Total Liabilities & Stockholders' Equity $1,547,000 $1,445,000
Sales 1,615,000 $1,513,000
Less Cost of Goods Sold 731,000 731,000
Gross Profit 884,000 782,000
Expenses:
Depreciation Expense 153,000 136,000
Salary Expense 391,000 357,000
Interest Expense 34,000 34,000
Loss on Sale of Equipment 17,000 0
Income Before Taxes 289,000 255,000
Less Income Tax Expense 119,000 102,000
Net Income $170,000 $153,000
Additional Information:
During the year, Johnston sold equipment with an original cost of $153,000 and accumulated depreciation of $119,000 and purchased new equipment for $272,000.
Click here for the solution: Selected financial statement information and additional data for Johnston Enterprises is presented below
Thursday, September 24, 2015
The current sections of Bellinham Inc.'s balance sheets at December 31, 2007 and 2008, are presented here
ACC 560 Week 9 Assignment
E13-5 The current sections of Bellinham Inc.'s balance sheets at December 31, 2007 and 2008, are presented here.
Bellinham's net income for 2008 was $153,000. Depreciation expense was $24,000.
2008 2007
Current assets
Cash $105,000 $99,000
Accounts receivable 110,000 89,000
Inventory 158,000 172,000
Prepaid expenses 27,000 22,000
Total current assets $400,000 $382,000
Current liabilities
Accrued expenses payable $15,000 $5,000
Accounts payable 85,000 92,000
Total current liabilities $100,000 $97,000
Instructions
Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2008, using the indirect method.
Click here for the solution: The current sections of Bellinham Inc.'s balance sheets at December 31, 2007 and 2008, are presented here
E13-5 The current sections of Bellinham Inc.'s balance sheets at December 31, 2007 and 2008, are presented here.
Bellinham's net income for 2008 was $153,000. Depreciation expense was $24,000.
2008 2007
Current assets
Cash $105,000 $99,000
Accounts receivable 110,000 89,000
Inventory 158,000 172,000
Prepaid expenses 27,000 22,000
Total current assets $400,000 $382,000
Current liabilities
Accrued expenses payable $15,000 $5,000
Accounts payable 85,000 92,000
Total current liabilities $100,000 $97,000
Instructions
Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2008, using the indirect method.
Click here for the solution: The current sections of Bellinham Inc.'s balance sheets at December 31, 2007 and 2008, are presented here
Scully Corporation's comparative balance sheets are presented below
ACC 560 Week 9 Assignment
E13-7 Scully Corporation's comparative balance sheets are presented below.
SCULLY CORPORATION
Comparative Balance Sheets
December 31
2008 2007
Cash $14,300 $10,700
Accounts receivable 21,200 23,400
Land 20,000 26,000
Building 70,000 70,000
Accumulated depreciation (15,000) (10,000)
Total $110,500 $120,100
Accounts payable $12,370 $31,100
Common stock 75,000 69,000
Retained earnings 23,130 20,000
Total $110,500 $120,100
Additional information:
1. Net income was $22,630. Dividends declared and paid were $19,500.
2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,900.
3. Prepare a statement of cash flows for 2008 using the indirect method.
Click here for the solution: Scully Corporation's comparative balance sheets are presented below
E13-7 Scully Corporation's comparative balance sheets are presented below.
SCULLY CORPORATION
Comparative Balance Sheets
December 31
2008 2007
Cash $14,300 $10,700
Accounts receivable 21,200 23,400
Land 20,000 26,000
Building 70,000 70,000
Accumulated depreciation (15,000) (10,000)
Total $110,500 $120,100
Accounts payable $12,370 $31,100
Common stock 75,000 69,000
Retained earnings 23,130 20,000
Total $110,500 $120,100
Additional information:
1. Net income was $22,630. Dividends declared and paid were $19,500.
2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,900.
3. Prepare a statement of cash flows for 2008 using the indirect method.
Click here for the solution: Scully Corporation's comparative balance sheets are presented below
The income statement of Elbert Company is presented here
P13-3A The income statement of Elbert Company is presented here.
ELBERT COMPANY
Income Statement
For the Year Ended November 30, 2008
Sales $7,700,000
Cost of goods sold
Beginning inventory $1,900,000
Purchases 4,400,000
Goods available for sale 6,300,000
Ending inventory 1,400,000
Total cost of goods sold 4,900,000
Gross profit 2,800,000
Operating expenses
Selling expenses 450,000
Administrative expenses 700,000 1,150,000
Net income $1,650,000
Additional information:
1. Accounts receivable increased $250,000 during the year, and inventory decreased $500,000.
2. Prepaid expenses increased $150,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $340,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Administrative expenses include depreciation expense of $90,000.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2008, for Elbert Company, using the indirect method.
Click here for the solution: The income statement of Elbert Company is presented here
ELBERT COMPANY
Income Statement
For the Year Ended November 30, 2008
Sales $7,700,000
Cost of goods sold
Beginning inventory $1,900,000
Purchases 4,400,000
Goods available for sale 6,300,000
Ending inventory 1,400,000
Total cost of goods sold 4,900,000
Gross profit 2,800,000
Operating expenses
Selling expenses 450,000
Administrative expenses 700,000 1,150,000
Net income $1,650,000
Additional information:
1. Accounts receivable increased $250,000 during the year, and inventory decreased $500,000.
2. Prepaid expenses increased $150,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $340,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Administrative expenses include depreciation expense of $90,000.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2008, for Elbert Company, using the indirect method.
Click here for the solution: The income statement of Elbert Company is presented here
Presented below are the financial statements of Weller Company
ACC 560 Week 9 Assignment
P13-7A Presented below are the financial statements of Weller Company.
WELLER COMPANY
Comparative Balance Sheets
December 31
Assets 2008 2007
Cash $ 35,000 $ 20,000
Accounts receivable 33,000 14,000
Merchandise inventory 27,000 20,000
Property, Plant and Equipment 60,000 78,000
Accumulated depreciation (29,000) (24,000)
Total $126,000 $108,000
Liabilities and Stockholders' Equity
Accounts payable $ 29,000 $ 15,000
Income taxes payable 7,000 8,000
Bonds payable 27,000 33,000
Common stock 18,000 14,000
Retained earnings 45,000 38,000
Total $126,000 $108,000
WELLER COMPANY
Income Statement
For the Year Ended December 31, 2008
Sales $242,000
Cost of goods sold 175,000
Gross profit 67,000
Selling expenses $18,000
Administrative expenses 6,000 24,000
Income from operations 43,000
Interest expense 3,000
Income before income taxes 40,000
Income tax expense 8,000
Net income $ 32,000
Additional data:
1. Dividends declared and paid were $25,000.
2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale.
3. All depreciation expense, $14,500, is in the selling expense category.
4. All sales and purchases are on account.
Instructions
Prepare a statement of cash flows using the indirect method.
Click here for the solution: Presented below are the financial statements of Weller Company
P13-7A Presented below are the financial statements of Weller Company.
WELLER COMPANY
Comparative Balance Sheets
December 31
Assets 2008 2007
Cash $ 35,000 $ 20,000
Accounts receivable 33,000 14,000
Merchandise inventory 27,000 20,000
Property, Plant and Equipment 60,000 78,000
Accumulated depreciation (29,000) (24,000)
Total $126,000 $108,000
Liabilities and Stockholders' Equity
Accounts payable $ 29,000 $ 15,000
Income taxes payable 7,000 8,000
Bonds payable 27,000 33,000
Common stock 18,000 14,000
Retained earnings 45,000 38,000
Total $126,000 $108,000
WELLER COMPANY
Income Statement
For the Year Ended December 31, 2008
Sales $242,000
Cost of goods sold 175,000
Gross profit 67,000
Selling expenses $18,000
Administrative expenses 6,000 24,000
Income from operations 43,000
Interest expense 3,000
Income before income taxes 40,000
Income tax expense 8,000
Net income $ 32,000
Additional data:
1. Dividends declared and paid were $25,000.
2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale.
3. All depreciation expense, $14,500, is in the selling expense category.
4. All sales and purchases are on account.
Instructions
Prepare a statement of cash flows using the indirect method.
Click here for the solution: Presented below are the financial statements of Weller Company
Sunday, September 20, 2015
Scully Corporation's comparative balance sheets are presented below
E14-11 Scully Corporation's comparative balance sheets are presented below.
SCULLY CORPORATION
Balance Sheets
December 31
2008 2007
Cash $ 4,300 $ 3,700
Accounts receivable 21,200 23,400
Inventory 10,000 7,000
Land 20,000 26,000
Building 70,000 70,000
Accumulated depreciation (15,000) (10,000)
Total $110,500 $120,100
Accounts payable $ 12,370 $ 31,100
Common stock 75,000 69,000
Retained earnings 23,130 20,000
Total $110,500 $120,100
Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.
Instructions
Compute the following ratios for 2008. (a) Current ratio. (b) Acid-test ratio. (c) Receivables turnover. (d) Inventory turnover. (e) Profit margin. (f) Asset turnover. (g) Return on assets. (h) Return on common stockholders' equity. (i) Debt to total assets ratio.
Click here for the solution: Scully Corporation's comparative balance sheets are presented below
SCULLY CORPORATION
Balance Sheets
December 31
2008 2007
Cash $ 4,300 $ 3,700
Accounts receivable 21,200 23,400
Inventory 10,000 7,000
Land 20,000 26,000
Building 70,000 70,000
Accumulated depreciation (15,000) (10,000)
Total $110,500 $120,100
Accounts payable $ 12,370 $ 31,100
Common stock 75,000 69,000
Retained earnings 23,130 20,000
Total $110,500 $120,100
Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.
Instructions
Compute the following ratios for 2008. (a) Current ratio. (b) Acid-test ratio. (c) Receivables turnover. (d) Inventory turnover. (e) Profit margin. (f) Asset turnover. (g) Return on assets. (h) Return on common stockholders' equity. (i) Debt to total assets ratio.
Click here for the solution: Scully Corporation's comparative balance sheets are presented below
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