Daniels Company deposits all receipts and makes all payments by check (A+ Guaranteed)

Daniels Company deposits all receipts and makes all payments by check. The following information is available from the cash records: MARCH 31 BANK RECONCILIATION Balance per bank $26,746 Add: Deposits in transit 2,100 Deduct: Outstanding checks (3,800) Balance per books $25,046 Month of April Results Per Bank Per Books Balance April 30 $27,995 $24,355 April deposits 8,864 13,889 April checks 13,100 14,080 April note collected 3,000 -0- (not included in April deposits) April bank service charge 35 -0- April NSF check of a customer returned by the bank (recorded by bank as a charge) 900

Instructions

Calculate the amount of the April 30: 1. Deposits in transit 2. Outstanding checks Show all your work for potential partial credit.

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The following income statement items appeared on the adjusted trial balance of Schembri (A+ Guaranteed)

Problem 4-7 Income statement presentation; statement of comprehensive income; unusual items

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2013 ($ in 000s): sales revenue, $15,300; cost of goods sold, $6,200; selling expenses, $1,300; general and administrative expenses, $800; interest revenue, $85; interest expense, $180. Income taxes have not yet been accrued. The company’s income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2013 ($ in 000s). All transactions are material in amount.

1. Investments were sold during the year at a loss of $220. Schembri also had unrealized gains of $320 for the year on investments.

2. One of the company’s factories was closed during the year. Restructuring costs incurred were $1,200.

3. An earthquake destroyed a warehouse causing $2,000 in damages. The event is considered to be unusual and infrequent.

4. During the year, Schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of $560 in 2013 prior to the sale, and its assets were sold at a gain of $1,400.

5. In 2013, the company’s accountant discovered that depreciation expense in 2012 for the office building was understated by $200.

6. Foreign currency translation losses for the year totaled $240.

Required:

Prepare Schembri’s combined statement of income and comprehensive income for 2013, including basic earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares were issued on July 1, 2013. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. Round EPS answers to 2 decimal places.)

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Heritage Company manufactures a beautiful bookcase that enjoys widespread popularity (A+ Guaranteed)

Heritage Company manufactures a beautiful bookcase that enjoys widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant’s full capacity of 3,900 bookcases per year. Annual cost data at full capacity follow:

  Direct materials used (wood and glass) $ 426,000
  Administrative office salaries $ 108,000
  Factory supervision $ 72,000
  Sales commissions $ 60,000
  Depreciation, factory building $ 102,000
  Depreciation, administrative office equipment $ 2,000
  Indirect materials, factory $ 20,000
  Factory labor (cutting and assembly) $ 93,000
  Advertising $ 96,000
  Insurance, factory $ 5,000
  Administrative office supplies (billing) $ 5,000
  Property taxes, factory $ 21,000
  Utilities, factory $ 43,000

Required:

1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as either variable or fixed with respect to the number of units produced and sold; and second, as either a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect.) (Leave no cells blank – be certain to enter “0″ wherever required. Omit the “$” sign in your response.)

2. Compute the average product cost per bookcase. (Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

3. Due to a recession, assume that production drops to only 2,000 bookcases per year. Would you expect the average product cost per bookcase to increase, decrease, or remain unchanged?

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Mighty muffler inc operates an automobile service facility that specializes in replacing mufflers (A+ Guaranteed)

Mighty muffler inc operates an automobile service facility that specializes in replacing mufflers in compact cars. The following table shows the cost incurred during a month when 700 mufflers were replaced.

Muffler replacements
600 700. 800

Total cost
Fixed cost. a. $56,000 b
Variable cost. c. 28,000 d
Total cost. e 84000 f

Cost per muffler replacement
Fixed cost. g h i
Variable cost. j k l
Total cost per muffler m n o

Required : Fill in the missing amounts, labeled A through O, in the table.

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Alberta Company produces a product that is sold for $40 per unit (A+ Guaranteed)

E3-17 Contribution Income Statement and Cost-Volume-Profit Graph (LO2, 3)

Alberta Company produces a product that is sold for $40 per unit. The company produced and sold 6,000 units during May 2012. There were no beginning or ending inventories. Variable and fixed costs follow.

Variiable Costs per Unit                                       Fixed Costs per Month

Manufacturing                                                     Manufacturing Overhead $40,000

Direct Materials $10                                           Selling and administrative $20,000

Direct Labor $2                                                  Total $60,000

Manufacturing overhead $5     = $17

Selling and administrative $5

Total $22

  1. Prepare a contribution income statement for May.
  2. Prepare a cost-volume-profit graph. Label the horizontal axis units with a maximum value of 10,000. Label the vertical axes in dollars with a maximum value of $400,000. Draw a vertical line of the graph for the current (6,000) unit sales level, and label total variable costs, total fixed costs, and total profits at 6,000 units.

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Jefferson County Airport handles several daily commuter flights and many private flights

Jefferson County Airport handles several daily commuter flights and many private flights. The county budget officer has compiled the following data regarding airport costs and activity over the past year.

Flights

Required:
1. Draw a scatter diagram of the airport costs shown above.
2. Build a spreadsheet: Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the variable- and fixed-cost components in the airport’s cost behavior pattern.
3. Write the least-squares regression equation for the airport’s costs.
4. Predict the airport’s costs during a month when 1,500 flights originate at the airport.
5. Using the Excel spreadsheet prepared for requirement (2), compute the coefficient of determination (R2) for the regression equation. Briefly interpretR2.

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On January 1, 2013, Phantom Company acquires $312,100 of Spiderman Products, Inc (A+ Guaranteed)

On January 1, 2013, Phantom Company acquires $312,100 of Spiderman Products, Inc., 9% bonds at a price of $296,847. The interest is payable each December 31, and the bonds mature December 31, 2015. The investment will provide Phantom Company a 11.00% yield. The bonds are classified as held-to-maturity.

Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 2,500.)

Schedule of Interest Revenue and Bond Discount Amortization
Straight-line Method
Bond Purchased to Yield
Date Cash
Received
Interest
Revenue
Bond Discount
Amortization
Carrying Amount
of Bonds
1/1/13 $
12/31/13 $ $ $  
12/31/14        
12/31/15

 

Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method. (Round answers to 0 decimal places, e.g. 2,500.)

Schedule of Interest Revenue and Bond Discount Amortization
Effective-Interest Method
Bond Purchased to Yield
Date Cash
Received
Interest
Revenue
Bond Discount
Amortization
Carrying Amount
of Bonds
1/1/13 $
12/31/13 $ $ $  
12/31/14        
12/31/15

 

c. Prepare the journal entry for the interest receipt of December 31, 2014, and the discount amortization under the straight-line method.

d. Prepare the journal entry for the interest receipt of December 31, 2014, and the discount amortization under the effective-interest method.

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Nombre Company managemnet predicts $560,000.00 of variable costs (A+ Guaranteed)

Nombre Company managemnet predicts $560,000.00 of variable costs. $860,000. of foxed costs, and a pretax income of $328,000.00 in the next period. Management also predicts that the contribition margin per unit will be $66.00.

1) Compute the total expected dollar sales for next period

Sales

Variable costs

Contribution Margin

Fixed Costs

pretax Income

2) Compute the number of units expected to be sold next period.

fixed costs plus pertax income

Contribition margin per unit.

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Consolidated financial statements are being prepared for Behemoth Corporation (A+ Guaranteed)

Consolidated financial statements are being prepared for Behemoth Corporation and its two wholly-owned subsidiaries that have intercompany loans of $50,000 and intercompany profits of $100,000. How much of these intercompany loans and profits should be eliminated?

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Lemon Company spends $5.2 in variable costs for each product produced (A+ Guaranteed)

Lemon Company spends $5.2 in variable costs for each product produced. Fixed manufacturing overhead costs are $103707 a year. This year, they produced 10,000 units. What is the average cost per unit produced?

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