Presented below are selected transactions of Molina Company (A+ Guaranteed)

Presented below are selected transactions of Molina Company. Molina sells in large quantities to other companies and also sells its product in a small retail outlet.

March 1 Sold merchandise on account to Dodson Company for $9,800, terms 4/10, n/30.
3 Dodson Company returned merchandise worth $700 to Molina.
9 Molina collected the amount due from Dodson Company from the March 1 sale.
15 Molina sold merchandise for $300 in its retail outlet. The customer used his Molina credit card.
31 Molina added 2% monthly interest to the customer’s credit card balance.

 

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Lance Lawn Services reports warranty expense by estimating the amount (A+ Guaranteed)

Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the cost is incurred. At December 31, 2013, Lance has a warranty liability of $1 million and taxable income of $75 million. At December 31, 2012, Lance reported a deferred tax asset of $435,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is 40% each year.

Required:

Prepare the appropriate journal entry to record Lance’s income tax provision for 2013.

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Ayres Services acquired an asset for $80 million in 2013 (A+ Guaranteed)

Ayres Services acquired an asset for $80 million in 2013. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset’s cost is depreciated by MACRS. The enacted tax rate is 40%. Amounts for pretax accounting income, depreciation, and taxable income in 2013, 2014, 2015, and 2016 are as follows:

2013 2014 2015 2016

Pretax Accounting income: 330 350 365 400

Depreciation on the income statement 20 20 20 20

Depreciation on the tax return (25) (33) (15) (7)

Taxable income 325 337 370 413

Required:

For December 31 of each year, determine (a) the temporary book–tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account.

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On January 1, 2015 Fisher Corporation paid $2,290,000 for 35% (A+ Guaranteed)

On January 1, 2015 Fisher Corporation paid $2,290,000 for 35% of the outstanding voting stock of Steel, Inc and appropriately applies the equity method for its investment. Any excess cost over Steel’s book value was attributed to Goodwill. During 2015, Steel reports $720,000 in net income, a $100,000 other comprehensive income loss. Steel also declares and pays $20,000 in dividends.

a) what amount should Fisher report as its investment in Steel on December 31, 2015 balance sheet

b) what amount should Fisher report as Equity in Earnings of Steel on its 2015 income statement

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Alden Company has decided to use a contribution format income statement (A+ Guaranteed)

Alden Company has decided to use a contribution format income statement for internal planning purposes. The company has analyzed its expenses and has developed the following cost formulas:

 Cost Cost Formula
  Cost of goods sold    $25 per unit sold
  Advertising expense    $175,000 per quarter
  Sales commissions    7% of sales
  Administrative salaries    $85,000 per quarter
  Shipping expense      ?
  Depreciation expense    $55,000 per quarter

Management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters are given below:

Quarter Units Sold Shipping
Expense
  Year 1:
      First 21,000 $165,000
      Second 23,000 $180,000
      Third 28,000 $222,000
      Fourth 24,000 $185,000
  Year 2:
      First 22,000 $175,000
      Second 25,000 $190,000
      Third 35,400 $237,000
      Fourth 32,400 $213,000

 

Management would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter.

Required:

1. Using the high-low method, estimate a cost formula for shipping expense based on the data for the last eight quarters above.

2. In the first quarter of Year 3, the company plans to sell 31,000 units at a selling price of $55 per unit. Prepare a contribution format income statement for the quarter. (Input all amounts as positive values except losses which should be indicated by a minus sign.)

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Matt Stiner started a delivery service, Stiner Deliveries

Matt Stiner started a delivery service, Stiner Deliveries, on June 1, 2014. The following transactions occurred during the month of June.

June 1  Stockholders invested $24,702 cash in the business in exchange for common stock.
2 Purchased a used van for deliveries for $14,709. Matt paid $3,027 cash and signed a note payable for the remaining balance.
3 Paid $310 for office rent for the month.
5 Performed $4,956 of services on account.
9 Declared and paid $366 in cash dividends.
12 Purchased supplies for $145 on account.
15 Received a cash payment of $1,439 for services provided on June 5.
17 Purchased gasoline for $271 on account.
20 Received a cash payment of $1,462 for services provided.
23 Made a cash payment of $674 on the note payable.
26 Paid $263 for utilities.
29 Paid for the gasoline purchased on account on June 17.
30 Paid $1,434 for employee salaries.

Instructions
(a) Show the effects of the previous transactions on the accounting equation using the following format.

  (b) Prepare an income statement for the month of June.

(c) Prepare a balance sheet at June 30,2014.

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On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,806

Problem 1-2A (Part Level Submission)

On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,806, Accounts Receivable $3,206, Supplies $600, Equipment $6,000, Accounts Payable $5,106, Common Stock $13,828, and Retained Earnings $678. During September, the following transactions occurred.

1.

Paid $2,186 cash for accounts payable due.

2.

Collected $2,207 of accounts receivable.

3.

Purchased additional office equipment for $2,455, paying $896 in cash and the balance on account.

4.

Earned revenue of $7,233, of which $1,913 is collected in cash and the balance is due in October.

5.

Declared and paid a $587 cash dividend

6.

Paid salaries $2,672, rent for September $1,199, and advertising expense $172.

7.

Incurred utilities expense for month on account $182.

8.

Received $10,912 from Capital Bank on a 6-month note payable.

 

Instructions

(a) Prepare a tabular analysis of the September transactions beginning with August 31 balances

(b2) The parts of this question must be completed in order. This part will be available when you complete the part above.

(b3) The parts of this question must be completed in order. This part will be available when you complete the part above.

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ACC 557 Week 1 WileyPlus – Problem 1-2A (Part Level Submission) Donahue Veterinary Clinic

Problem 1-2A (Part Level Submission)

On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,806, Accounts Receivable $3,206, Supplies $600, Equipment $6,000, Accounts Payable $5,106, Common Stock $13,828, and Retained Earnings $678. During September, the following transactions occurred.

1.

Paid $2,186 cash for accounts payable due.

2.

Collected $2,207 of accounts receivable.

3.

Purchased additional office equipment for $2,455, paying $896 in cash and the balance on account.

4.

Earned revenue of $7,233, of which $1,913 is collected in cash and the balance is due in October.

5.

Declared and paid a $587 cash dividend

6.

Paid salaries $2,672, rent for September $1,199, and advertising expense $172.

7.

Incurred utilities expense for month on account $182.

8.

Received $10,912 from Capital Bank on a 6-month note payable.

 

Instructions

(a) Prepare a tabular analysis of the September transactions beginning with August 31 balances

(b2) The parts of this question must be completed in order. This part will be available when you complete the part above.

(b3) The parts of this question must be completed in order. This part will be available when you complete the part above.

Here’s the SOLUTION

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ACC 557 Week 1 WileyPlus – Problem 1-4A (Part Level Submission) Matt Stiner

Problem 1-4A (Part Level Submission)

Matt Stiner started a delivery service, Stiner Deliveries, on June 1, 2014. The following transactions occurred during the month of June.

June 1  Stockholders invested $24,702 cash in the business in exchange for common stock.
2 Purchased a used van for deliveries for $14,709. Matt paid $3,027 cash and signed a note payable for the remaining balance.
3 Paid $310 for office rent for the month.
5 Performed $4,956 of services on account.
9 Declared and paid $366 in cash dividends.
12 Purchased supplies for $145 on account.
15 Received a cash payment of $1,439 for services provided on June 5.
17 Purchased gasoline for $271 on account.
20 Received a cash payment of $1,462 for services provided.
23 Made a cash payment of $674 on the note payable.
26 Paid $263 for utilities.
29 Paid for the gasoline purchased on account on June 17.
30 Paid $1,434 for employee salaries.

Instructions
(a) Show the effects of the previous transactions on the accounting equation using the following format.

(b) Prepare an income statement for the month of June.
(c) Prepare a balance sheet at June 30,2014

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MAT 540 ENTIRE COURSE (DQs, Assignment and Final Exam) – A+ Guaranteed

MAT 540 ENTIRE COURSE (DQs, Assignment and Final Exam)

Week 2a

“Decision Tree”  Please respond to the following:

  • Explain the parts of a decision tree.
  • What are some benefits of using decision trees?
  • In what ways can decision trees be used for business decisions? Name some real-world examples.

Week 2b

“The Science of Probability”  Please respond to the following:

  • How does the science of probability affect decisions? Why?

Week 3a

“Pseudorandom”

  • Why do we use pseudorandom numbers in simulations?
  • How do pseudorandom numbers affect the accuracy of a simulation?

Week 3b

“Statistical Analysis”

  • What is the role of statistical analysis in simulation?

Week 4a

“Forecasting”  Please respond to the following:

  • Choose one of the forecasting methods and explain the rationale behind using it in real-life.
  • Describe how a domestic fast food chain with plans for expanding into China would be able to use a forecasting model.

Week 4b

“Forecasting Models”

  • What is the difference between a causal model and a time- series model? Give an example of when each would be used.
  • What are some of the problems and drawbacks of the moving average forecasting model?
  • How do you determine how many observations to average in a moving average model?
  • How do you determine the weightings to use in a weighted moving average model?

Week 5 – Midterm Week

“Reflection to date”  Please respond to the following:

  • In a paragraph, reflect on what you’ve learned so far in this course.  Identify the most interesting, unexpected, or useful thing you’ve learned and explain why

Week 6a

“The Linear Programming Model”  Please respond to the following:

  • What are some business uses of a linear programming model? Provide an example.

Week 6b

“The LP Model”  Please respond to the following:

  • In the graphical method, how do you know when a problem is infeasible, unbounded, or when it has multiple optimal solutions?
  • What are the essential ingredients of an LP model? Why is it helpful to understand the characteristics of LP models?

Week 6c

“The LP Model”  Please respond to the following:

  • Distinguish between a minimization and maximization LP model. How do you know which of these to use for any given problem?

Week 7a

  • What does the shadow price reflect in a maximization problem? Please explain.
  • How do the graphical and computer-based methods of solving LP problems differ? In what ways are they the same? Under what circumstances would you prefer to use the graphical approach?

Week 7b

  • How does sensitivity analysis affect the decision making process? How could it be used by managers?

Week 8a

  • What is the relationship between decision variables and the objective function?
  • What is the difference between an objective function and a constraint?

Week 8b

  • Does the linear programming approach apply the same way in different applications?  Explain why or why not using examples.

Week 9a

  • Explain how the applications of Integer programming differ from those of linear programming.
  • Why is “rounding-down” an LP solution a suboptimal way to solve Integer programming problems?

Week 9b

  • Explain the characteristics of integer programming problems.
  • Give specific instances in which you would use an integer programming model rather than an LP model.  Provide real-world examples.

Week 10a

  • Can we apply transshipment models to inventory applications? Why or why not?
  • Is the transportation model an example of decision making under certainty or decision making under uncertainty? Why?

Week 10b

  • Explain the assignment model and how it facilitates in solving transportation problems.
  • What benefits would be gained from using this model?

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