week 5 ACC 421 assignment

week 5 ACC 421 assignment

Transactions for Mehta Company for the month of May are presented below.

May	1		B.D. Mehta invests $3,300 cash in exchange for common stock of Mehta Company, a small welding corporation.
	3		Buys equipment on account for $1,245.
	13		Pays $497 to landlord for May rent.
	21		Bills Noble Corp. $511 for welding work done.

Prepare journal entries for each of these transactions.

Starr Co. had sales revenue of $627,800 in 2012. Other items recorded during the year were:

	Cost of goods sold	$324,500
	Wage expense	128,700
	Income tax expense	26,700
	Increase in value of company reputation	19,300
	Other operating expenses	11,700
	Unrealized gain on value of patents	20,000

Prepare a single-step income statement for Allen for 2012. Allen has 100,000 shares of stock outstanding. (List multiple entries from largest to smallest amount, e.g. 10, 5, 2. Round earnings per share to 2 decimal places, e.g. 0.20. Enter all amounts as positive amounts and subtract where necessary.)

Portman Corporation has retained earnings of $707,080 at January 1, 2012. Net income during 2012 was $1,811,090, and cash dividends declared and paid during 2012 totaled $76,490. Prepare a retained earnings statement for the year ended December 31, 2012. Assume an error was discovered: land costing $87,050 (net of tax) was charged to repairs expense in 2009. (Enter all amounts as positive amounts and subtract where necessary.)

Comprehensive Income)

Armstrong Corporation reported the following for 2012: net sales $1,229,700; cost of goods sold $750,700; selling and administrative expenses $335,300; and an unrealized holding gain on available-for-sale securities $17,400.

Prepare a statement of comprehensive income, using the two-income statement format. Ignore income taxes and earnings per share. (Enter all amounts as positive amounts and subtract where necessary.)

 Transactions for Mehta Company for the month of May are presented below.

May	1		B.D. Mehta invests $3,300 cash in exchange for common stock of Mehta Company, a small welding corporation.
	3		Buys equipment on account for $1,245.
	13		Pays $497 to landlord for May rent.
	21		Bills Noble Corp. $511 for welding work done.

Prepare journal entries for each of these transactions.

Date	Description/Account	Debit	Credit
May 1	Service revenue Rent expense Accounts receivable Cash Investment in Subsidiary Accounts payable Common stock Equipment
	Cash Service revenue Investment in Subsidiary Equipment Common stock Accounts receivable Accounts payable Rent expense
May 3	Common stock Service revenue Investment in Subsidiary Equipment Cash Accounts payable Rent expense Accounts receivable
	Accounts receivable Rent expense Service revenue Accounts payable Investment in Subsidiary Equipment Cash Common stock
May 13	Equipment Cash Rent expense Investment in Subsidiary Accounts payable Accounts receivable Service revenue Common stock
	Accounts receivable Service revenue Accounts payable Common stock Rent expense Investment in Subsidiary Equipment Cash
May 21	Rent expense Common stock Service revenue Cash Investment in Subsidiary Equipment Accounts payable Accounts receivable
	Cash Equipment Accounts payable Common stock Accounts receivable Investment in Subsidiary Rent expense Service revenue

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On July 1, 2012, Crowe Co. pays $19,352 to Zubin Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Crowe Co. journalize the entry on July 1 and the adjusting entry on December 31. (Round answers to zero decimal places, e.g. 2,555.)

Date	Description/Account	Debit	Credit
July 1	Prepaid Insurance Insurance Revenue Cash Rent Revenue Unearned Rent Revenue Insurance Expense
	Cash Unearned Rent Revenue Insurance Expense Rent Revenue Prepaid Insurance Insurance Revenue
Dec. 31	Unearned Rent Revenue Prepaid Insurance Insurance Expense Cash Insurance Revenue Rent Revenue
	Insurance Revenue Rent Revenue Insurance Expense Prepaid Insurance Cash Unearned Rent Revenue

Dresser Company's weekly payroll, paid on Fridays, totals $6,100. Employees work a 5-day week. Prepare Dresser's adjusting entry on Wednesday, December 31, and the journal entry to record the $6,100 cash payment on Friday, January 2. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Date	Description/Account	Debit	Credit
Dec. 31	Accounts Payable Cash Salaries Expense Accounts Receivable Salaries Payable
	Accounts Receivable Accounts Payable Salaries Payable Salaries Expense Cash
Jan. 2	Accounts Receivable Salaries Payable Salaries Expense Cash Accounts Payable
	Cash Accounts Receivable Accounts Payable Salaries Expense Salaries Payable
	Accounts Payable Cash Salaries Expense Salaries Payable Accounts Receivable

Side Kicks has year-end account balances of Sales $900,990; Interest Revenue $15,300; Cost of Goods Sold $559,960; Operating Expenses $226,990; Income Tax Expense $36,710; and Dividends $22,699. Prepare the year-end closing entries. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Description/Account	Debit	Credit
Operating Expenses Income Summary Retained Earnings Income Tax Expense Dividends Sales Cost of Goods Sold Income Expense Interest Revenue
Income Expense Retained Earnings Income Tax Expense Operating Expenses Sales Dividends Interest Revenue Income Summary Cost of Goods Sold
Operating Expenses Income Tax Expense Income Summary Sales Dividends Retained Earnings Income Expense Cost of Goods Sold Interest Revenue
(To close sales account.)
Dividends Interest Revenue Cost of Goods Sold Income Summary Operating Expenses Income Tax Expense Retained Earnings Income Expense Sales
Income Expense Operating Expenses Income Tax Expense Interest Revenue Sales Income Summary Retained Earnings Dividends Cost of Goods Sold
Operating Expenses Dividends Retained Earnings Income Tax Expense Income Expense Income Summary Interest Revenue Sales Cost of Goods Sold
Income Expense Income Summary Operating Expenses Retained Earnings Sales Dividends Cost of Goods Sold Income Tax Expense Interest Revenue
(To close expense accounts.)
Sales Income Expense Dividends Retained Earnings Income Summary Interest Revenue Cost of Goods Sold Operating Expenses Income Tax Expense
Cost of Goods Sold Sales Income Expense Dividends Operating Expenses Interest Revenue Retained Earnings Income Summary Income Tax Expense
(To close net income to retained earnings.)
Operating Expenses Sales Retained Earnings Income Summary Interest Revenue Dividends Cost of Goods Sold Income Tax Expense Income Expense
Sales Income Expense Operating Expenses Retained Earnings Income Tax Expense Income Summary Dividends Cost of Goods Sold Interest Revenue
(To close dividends to retained earnings.)

Starr Co. had sales revenue of $627,800 in 2012. Other items recorded during the year were:

	Cost of goods sold	$324,500
	Wage expense	128,700
	Income tax expense	26,700
	Increase in value of company reputation	19,300
	Other operating expenses	11,700
	Unrealized gain on value of patents	20,000

Prepare a single-step income statement for Allen for 2012. Allen has 100,000 shares of stock outstanding. (List multiple entries from largest to smallest amount, e.g. 10, 5, 2. Round earnings per share to 2 decimal places, e.g. 0.20. Enter all amounts as positive amounts and subtract where necessary.)

STARR CO.
Income Statement
For the Year 2012
Revenues
Other Operating Expenses Sales Cost of Goods Sold Income Tax Expense Wages Expense		$
Expenses
Other Operating Expenses Income Tax Expense Sales Cost of Goods Sold Wages Expense	$
Income Tax Expense Other Operating Expenses Wages Expense Sales Cost of Goods Sold
Wages Expense Other Operating Expenses Income Tax Expense Sales Cost of Goods Sold
Wages Expense Income Tax Expense Other Operating Expenses Sales Cost of Goods Sold
Total Expenses
Net Income		$
Earnings per share		$

Portman Corporation has retained earnings of $707,080 at January 1, 2012. Net income during 2012 was $1,811,090, and cash dividends declared and paid during 2012 totaled $76,490. Prepare a retained earnings statement for the year ended December 31, 2012. Assume an error was discovered: land costing $87,050 (net of tax) was charged to repairs expense in 2009. (Enter all amounts as positive amounts and subtract where necessary.)

PORTMAN CORPORATION
Retained Earnings Statement
For the Year Ended December 31, 2012
Net income Cash dividends Retained earnings-January 1-as adjusted Retained earnings-December 31 Retained earnings-January 1-as reported Correction for overstatement of expenses in prior period (net of tax)	$
Correction for overstatement of expenses in prior period (net of tax) Cash dividends Net income Retained earnings-December 31 Retained earnings-January 1-as reported Retained earnings-January 1-as adjusted
Retained earnings-January 1-as adjusted Retained earnings-December 31 Net income Retained earnings-January 1-as reported Cash dividends Correction for overstatement of expenses in prior period (net of tax)
Add: Retained earnings-December 31 Cash dividends Retained earnings-January 1-as reported Net income Correction for overstatement of expenses in prior period (net of tax) Retained earnings-January 1-as adjusted
Less: Retained earnings-December 31 Cash dividends Retained earnings-January 1-as reported Correction for overstatement of expenses in prior period (net of tax) Retained earnings-January 1-as adjusted Net income
Retained earnings-January 1-as reported Retained earnings-December 31 Net income Correction for overstatement of expenses in prior period (net of tax) Cash dividends Retained earnings-January 1-as adjusted	$

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On January 1, 2012, Richards Inc. had cash and common stock of $63,530. At that date the company had no other asset, liability or equity balances. On January 2, 2012, it purchased for cash $21,710 of equity securities that it classified as available-for-sale. It received cash dividends of $4,940 net of tax during the year on these securities. In addition, it has an unrealized holding gain on these securities of $6,880 net of tax. Determine the following amounts for 2012: (a) net income; (b) comprehensive income; (c) other comprehensive income; and (d) accumulated other comprehensive income (end of 2012).

(a)

Net income

$

(b)

Comprehensive income

$

(c)

Other comprehensive income

$

(d)

Accumulated other comprehensive income

$

Comprehensive Income)

Armstrong Corporation reported the following for 2012: net sales $1,229,700; cost of goods sold $750,700; selling and administrative expenses $335,300; and an unrealized holding gain on available-for-sale securities $17,400.

Prepare a statement of comprehensive income, using the two-income statement format. Ignore income taxes and earnings per share. (Enter all amounts as positive amounts and subtract where necessary.)

ARMSTRONG CORPORATION
Income Statement and Statement of Comprehensive Income
For the Year Ended December 31, 2012
Selling and administrative expenses Sales Cost of goods sold	$
Cost of goods sold Selling and administrative expenses Sales
Gross Profit
Sales Cost of goods sold Selling and administrative expenses
Net income	$
Net income	$
Unrealized holding gain
Comprehensive income	$

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ABE18-10

Guillen, Inc. began work on a $7,088,400 contract in 2012 to construct an office building. Guillen uses the completed-contract method. At December 31, 2012, the balances in certain accounts were construction in process $1,752,600; accounts receivable $252,600; and billings on construction in process $1,108,600. Indicate how these accounts would be reported in Guillen's December 31, 2012, balance sheet.

Current assets
Billings Costs and recognized profit in excess of billings Construction Expenses Accounts Receivable Cash Construction in Process		$
Inventories
Costs and recognized profit in excess of billings Construction Expenses Construction in Process Cash Accounts Receivable Billings	$
Less: Construction Expenses Cash Billings Accounts Receivable Construction in Process Costs and recognized profit in excess of billings
Costs and recognized profit in excess of billings Construction Expenses Accounts Receivable Cash Billings Construction in Process

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Lazaro, Inc. sells goods on the installment basis and uses the installment-sales method. Due to a customer default, Lazaro repossessed merchandise that was originally sold for $890, resulting in a gross profit rate of 40%. At the time of repossession, the uncollected balance is $710, and the fair value of the repossessed merchandise is $281. Prepare Lazaro's entry to record the repossession. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Description/Account	Debit	Credit
Loss on Repossession Cash Installment Accounts Receivable Installment Sales Repossessed Merchandise Deferred Gross Profit
Loss on Repossession Installment Accounts Receivable Cash Installment Sales Deferred Gross Profit Repossessed Merchandise
Loss on Repossession Cash Deferred Gross Profit Installment Accounts Receivable Repossessed Merchandise Installment Sales
Cash Installment Sales Installment Accounts Receivable Deferred Gross Profit Repossessed Merchandise Loss on Repossession

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ABE5-1

Harding Corporation has the following accounts included in its December 31, 2012, trial balance: Accounts Receivable $118,190; Inventories $297,600; Allowance for Doubtful Accounts $9,260; Patents $75,110; Prepaid Insurance $9,630; Accounts Payable $85,580; Cash $27,010. Prepare the current assets section of the balance sheet listing the accounts in proper sequence.

Current assets
Patents Allowance for doubtful accounts Inventories Accounts payable Accounts receivable Prepaid insurance Cash		$
Inventories Prepaid insurance Patents Accounts payable Accounts receivable Cash Allowance for doubtful accounts	$
Less: Prepaid insurance Accounts payable Accounts receivable Cash Patents Allowance for doubtful accounts Inventories
Inventories Accounts receivable Patents Cash Allowance for doubtful accounts Prepaid insurance Accounts payable
Accounts receivable Cash Allowance for doubtful accounts Accounts payable Inventories Patents Prepaid insurance
Total current assets		$

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ABE5-6

Patrick Corporation's adjusted trial balance contained the following asset accounts at December 31, 2012: Prepaid Rent $21,860; Goodwill $55,710; Franchise Fees Receivable $4,820; Franchises $40,540; Patents $34,850; Trademarks $13,780. Prepare the intangible assets section of the balance sheet. (List amounts from largest to smallest, e.g. 10, 5, 3, 2.)

Intangible assets
	Prepaid rent Franchise fees receivable Patents Goodwill Franchises Trademarks	$
	Trademarks Prepaid rent Franchises Patents Franchise fees receivable Goodwill
	Trademarks Prepaid rent Franchises Franchise fees receivable Patents Goodwill
	Patents Prepaid rent Franchise fees receivable Goodwill Franchises Trademarks
	Total intangible assets	$

Hawthorn Corporation's adjusted trial balance contained the following accounts at December 31, 2012: Retained Earnings $123,010; Common Stock $707,490; Bonds Payable $109,630; Additional Paid-in Capital $209,230; Goodwill $64,340; Accumulated Other Comprehensive Loss $151,180. Prepare the stockholders' equity section of the balance sheet. (List entries in order of stock preferred status. For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)

Stockholders equity
	Additional paid-in capital Bonds payable Retained earnings Common stock Accumulated other comprehensive loss Goodwill	$
	Retained earnings Accumulated other comprehensive loss Goodwill Bonds payable Common stock Additional paid-in capital
	Common stock Goodwill Bonds payable Additional paid-in capital Accumulated other comprehensive loss Retained earnings
	Bonds payable Additional paid-in capital Retained earnings Goodwill Accumulated other comprehensive loss Common stock
	Total stockholders' equity	$

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ABE24-3

Linden Corporation is preparing its December 31, 2012, financial statements. Two events that occurred between December 31, 2012, and March 10, 2013, when the statements were issued, are described below.

1.    A liability, estimated at $155,930 at December 31, 2012, was settled on February 26, 2013, at $181,860.

2.    A flood loss of $81,160 occurred on March 1, 2013.

What effect do these subsequent events have on 2012 net income? (If there is no impact select not change and 0 for the amount.)

Net income will decrease increase not change by $ as a result of the adjustment of the liability.

Net income will decrease not change increase by $ as a result of the adjustment of the flood loss.

Operating profits and losses for the seven industry segments of Roder Corporation are:

Penley	$104		Cheng	$(24)
Konami	(48)		Takuhi	36
KSC	32		Molina	172
Red Moon	60

Based only on the operating profit (loss) test, which industry segments are reportable?

Enter 1 if the segment is reportable. Enter 0 if the segment is not reportable.

	Penley
	Konami
	KSC
	Red Moon
	Cheng
	Takuhi
	Molina

Operating profits and losses for the seven industry segments of Roder Corporation are:

Penley	$104		Cheng	$(24)
Konami	(48)		Takuhi	36
KSC	32		Molina	172
Red Moon	60

Based only on the operating profit (loss) test, which industry segments are reportable?

Enter 1 if the segment is reportable. Enter 0 if the segment is not reportable.

	Penley
	Konami
	KSC
	Red Moon
	Cheng
	Takuhi
	Molina

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ABE24-9

Heartland Company's budgeted sales and budgeted cost of goods sold for the coming year are $147,450,000 and $31,305,000 respectively. Short-term interest rates are expected to average 10%. If Heartland can increase inventory turnover from its present level of 9 times a year to a level of 12 times per year, compute its expected cost savings for the coming year.

$

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ABE5-13

Ames Company reported 2012 net income of $151,290. During 2012, accounts receivable increased by $15,170 and accounts payable increased by $9,720. Depreciation expense was $46,910. Prepare the cash flows from operating activities section of the statement of cash flows.(List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. For negative numbers use either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)

Cash flows from operating activities
	Net income		$
	Adjustments to reconcile net income to net cash
	provided by operating activities
	Depreciation expense Increase in accounts payable Increase in accounts receivable	$
	Depreciation expense Increase in accounts payable Increase in accounts receivable
	Increase in accounts payable Depreciation expense Increase in accounts receivable
	Net cash provided by operating activities		$

Martinez Corporation engaged in the following cash transactions during 2012.

	Sale of land and building	$195,500
	Purchase of treasury stock	48,320
	Purchase of land	37,490
	Payment of cash dividend	91,480
	Purchase of equipment	55,440
	Issuance of common stock	152,150
	Retirement of bonds	101,240

Compute the net cash provided (used) by investing activities. (List multiple entries from the largest positive to the smallest positive amount followed by the most negative to the least negative amount, e.g. 15, 14, 10, -17, -5, -1. For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)

Purchase of equipment Payment of cash dividend Issuance of common stock Purchase of land Sale of land and building Purchase of treasury stock Purchase of cash dividend	$
Purchase of equipment Purchase of land Payment of cash dividend Purchase of treasury stock Issuance of common stock Sale of land and building Purchase of cash dividend
Payment of cash dividend Purchase of cash dividend Purchase of land Issuance of common stock Purchase of equipment Sale of land and building Purchase of treasury stock
Net cash provided by investing activities	$

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ABE5-16

Martinez Corporation engaged in the following cash transactions during 2012.

	Sale of land and building	$187,140
	Purchase of treasury stock	46,560
	Purchase of land	42,120
	Payment of cash dividend	87,900
	Purchase of equipment	56,180
	Issuance of common stock	148,990
	Retirement of bonds	102,370

Determine Martinez's free cash flow, assuming that it reported net cash provided by operating activities of $408,240.  (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. For negative numbers use either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)

Free Cash Flow Analysis
Net cash provided by operating activities Purchase of land Purchase of treasury stock Purchase of equipment Issuance of common stock Retirement of bonds Dividends
Less: Dividends Net cash provided by operating activities Issuance of common stock Purchase of treasury stock Retirement of bonds Purchase of equipment Purchase of land
Purchase of land Issuance of common stock Purchase of equipment Retirement of bonds Net cash provided by operating activities Dividends Purchase of treasury stock
Purchase of treasury stock Retirement of bonds Purchase of equipment Dividends Purchase of land Net cash provided by operating activities Issuance of common stock
Free cash flow	$

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ABE6-1

Chris Spear invested $10,619 today in a fund that earns 8% compounded annually. To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 8% annual interest compounded semiannually? (Round answers to 2 decimal places, e.g. 12,250.25. Hint: Use tables in text.)

Investment at 8% annual interest	$
Investment at 8% annual interest compounded semiannually	$

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AE6-2

(Simple and Compound Interest Computations)

Lyle O 'Keefe invests $31,100 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Lyle withdrew the accumulated amount of money.

(a)	Compute the amount Lyle would withdraw assuming the investment earns simple interest.
	$

(b)	Compute the amount Lyle would withdraw assuming the investment earns interest compounded annually. (Round to 2 decimal places, e.g. 25,250.25. Hint: Use tables in text.)
	$

(c)	Compute the amount Lyle would withdraw assuming the investment earns interest compounded semiannually. (Round to 2 decimal places, e.g. 25,250.25. Hint: Use tables in text.)
	$

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AFTER PAYMENT ENTER PASSWORD : "shiv" TO UNLOCK THE SOLUTION

AFTER PAYMENT ENTER PASSWORD : "shiv" TO UNLOCK THE SOLUTION