To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2021, for $890,000 and immediately leased the building back. The operating lease is for the final 12 years of the building's estimated 20-year remaining useful life. The building has a fair value of $890,000 and a book value of $695,000 (its original cost was $1 million). The rental payments of $190,000 are payable to the insurance company each December 31. The lease has an implicit rate of 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required: 1. & 2. Prepare the appropriate entries for National Distribution Center on January 1, 2021 and December 31, 2021, to record the sale- leaseback and necessary adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer:

1-Jan-21

Dr Cash $890,000

Dr Accumulated Depreciation $305,000

Cr Building $1,000,000

Gain On Sale of Building $195,000

1-Jan-21

Dr Right Of Use Assets $1,508,600

Cr Lease Payable $1,508,600

31-Dec-21

Dr Interest Expense $105,602

Dr Lease Payment $84,398

Cr Cash $190,000

31-Dec-21

Dr Amortization Expenses $84,398

Right Of Use Assets $84,398

Explanation:

1. & 2. Preparation for the appropriate entries for National Distribution Center on January 1, 2021 and December 31, 2021, to record the sale- leaseback and necessary adjustments

1-Jan-21

Dr Cash $890,000

Dr Accumulated Depreciation $305,000 ($1,000,000-$695,000)

Cr Building $1,000,000

Gain On Sale of Building $195,000

($890,000+$305,000-$1,000,000)

(To Record Lease)

1-Jan-21

Dr Right Of Use Assets ( $190,000* PVAF 7% for 12year)

($190,000*7.94) $1,508,600

Cr Lease Payable $1,508,600

(To Record The Lease Payable)

31-Dec-21

Dr Interest Expense ($1,508,600*7%) $105,602

Dr Lease Payment $84,398

($190,000-$105,602)

Cr Cash $190,000

(To Record First Lease payment)

31-Dec-21

Dr Amortization Expenses $84,398

Right Of Use Assets $84,398

(To Record Amortisation Expense)

The loan department of a financial corporation makes loans to businesses. The costs of processing these loans are often several thousand dollars. All loans are initially evaluated using the same financial analysis software, but some require outside services such as appraisals and legal services. Which is the most appropriate costing system for the loan department

On December 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2,400, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, Year 1.

How much of the first payment made on December 31, Year 1, represents interest expense?
a 2400
b 400
c 2304
d 2000

The financial statement columns of the worksheet for Booer Company as of December 31, 2021 are as follows:

BOOER COMPANY Worksheet For the Year Ended December 31, 2021
Income Statement Balance Sheet
Accounts Dr. Cr. Dr. Cr.
Cash 8,000
Accounts Receivable 26,000
Supplies 4,500
Prepaid Insurance 7,000
Equipment 41,000
Accumulated Depreciation—Equipment 4,800
Patents 7,500
Accounts Payable 22,200
Notes Payable (due 2023) 20,000
Common Stock 30,000
Retained Earnings 13,300
Dividends 4,200
Service Revenue 26,400
Salaries and Wages Expense 5,200
Depreciation Expense 4,800
Insurance Expense 5,000
Interest Expense 3,500
Totals 18,500 26,400 98,200 90,300
Net Income 7,900
7,900 26,400 26,400 98,200

Required:
Prepare a classified balance sheet for Booer Company.

To get customers to try a new kind of sausage, marketers visit stores and set
up tables where customers can taste the sausage being cooked and pick up a
flier offering them 50 cents off the regular price. Which sales promotion
techniques are being used?
A. Display, samples, and coupons
B. Display only
C. Display, premiums, and samples
D. Samples and premiums

Fundamental analysis shows that stock in Garske Software Corporation has a present value that is higher than its price. a. This stock is undervalued; you should consider adding it to your portfolio. b. This stock is undervalued; you shouldn't consider adding it to your portfolio. c. This stock is overvalued; you should consider adding it to your portfolio. d. This stock is overvalued; you shouldn't consider adding it to your portfolio.

Share Issuances for Cash Finlay. Inc., issued 8.000 shares of $50 par value preferred stock :u $68 per ~hare and 12.000 shares of no-par value common stock at $I 0 per share. The common Mock ha~ no Mated value. All issuances were for cash. L02, 4
a. Determine the financial statement effect of the share issuances.
b. Determine the financial statement effect of the issuance of the common stock a-.-.uming that - it had a st:ued value of $5 per share.
c. Determine the financial statement effect of the issuance of the common stock assumin

project water has an initial cost of 639,700 and projected cash flow of 288,000 319,000 and 165,000 for years 1 through 3 respectevely project aqua has an initial cost of 411,200 and projected cash flows of 186,000 178,000 and 145,000 for years 1 through 3 respectevely what is the incremental IRR of these two mutually exclusive project

Finland Inc has the following Accounts Receivable Aging on March 31 Aging BucketCurrent1-90 days91-180 days181-365 days366 days Amount Outstanding300,000180,000100,00050,00015,000 March sales were $320,000 February ending balance in Allowance for Doubtful Accounts was $30,000 Credit Finland uses the Percentage of Receivables Method and a 5% reserve rate. What is the required reserve at the end of March

Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $13,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $216,700, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 23,800.

Inventories March 1 March 31 Materials $235,200 $216,270 Work in process 488,200 571,640 Finished goods 656,550 689,800 Direct labor $3,920,000 Materials purchased during March 2,986,140 Factory overhead incurred during March: Indirect labor 358,400 Machinery depreciation 235,200 Heat, light, and power 196,000 Supplies 39,080 Property taxes 33,590 Miscellaneous costs 51,190 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Job 306
Job 307
Job 308
Balances on March 31
Direct materials
$
29,000
$
44,000
Direct labor
25,000
16,000
Applied overhead
12,500
8,000
Costs during April
Direct materials
130,000
210,000
$
120,000
Direct labor
100,000
154,000
104,000
Applied overhead
?
?
?
Status on April 30
Finished (sold)
Finished (unsold)
In process
1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).
2. Prepare journal entries
a. Materials purchases (on credit).
b. Direct materials used in production.
c. Direct labor paid and assigned to Work in Process Inventory.
d. Indirect labor paid and assigned to Factory Overhead.
e. Overhead costs applied to Work in Process Inventory.
f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
g. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
h. Cost of goods sold for Job 306.
i. Revenue from the sale of Job 306.
j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)
3. Prepare a schedule of cost of goods manufactured.
4. Compute Gross Profit
5. Show how to present the inventories on the April 30 balance sheet (Raw Materials, Work in progress, Finished Goods, and Total )

Preparing a consolidated income statement - with noncontrolling interest, but AAP or intercompany profits

A parent company purchased an 70% interest in its subsidiary several years ago with no AAP (i.e., purchased at book value). Each reports the following income statement for the current year, as shown in part b. below.

b. Prepare the consolidated income statement for the current year.

Elimination Entries

Parent Subsidiary Dr. Cr. Consolidated

Income statement:

Sales $6,000,000 $900,000

Cost of goods sold (4,200,000) (540,000)

Gross profit 1,800,000 360,000

Income (loss) from subsidiary 88,2000 0

Operating expenses (1,140,000) (234,000)

Net income $748,200 $126,000

Net income attributable to noncontrolling interests

Net income attributable to parent

The following are the transactions for the month of July.

Units Unit Cost Unit Selling Price
July 1 Beginning Inventory 41 $10
July 13 Purchase 205 12
July 25 Sold (100 ) $16
July 31 Ending Inventory 146

Required:
Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under FIFO. Assume a periodic inventory system is used.

Europa Company manufactures only one product. Presented below is direct labor information for November. Standard direct labor hours per unit of product 3.20 Number of finished units produced 6,500 Standard wage rate per direct labor hour (SP) $ 19.20 Total direct labor payroll for the period $ 359,424 Actual wage rate per direct labor hour worked (AP) $ 16.00 The actual direct labor hours worked (AQ) during November (rounded to the nearest whole number) was:

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May JuneManufacturing costs (1) $155,800 $190,300 $203,900Insurance expense (2) 1,080 1,080 1,080Depreciation expense 2,110 2,110 2,110Property tax expense (3) 540 540 540(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month.(2) Insurance expense is $1,070 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October).(3) Property tax is paid once a year in November.The cash payments expected for Finch Company in the month of May area. $38,950b. $181,675c. $220,625d. $142,725

Perion Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,200 hours and the total estimated manufacturing overhead was $259,840. At the end of the year, actual direct labor-hours for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840. Overhead at the end of the year was:

Time for Tees, a local t-shirt company, gave away shirts at a community event to promote the company brand. Which of the company’s budgets MOST likely covered the cost of the shirts?


human resources


advertising


accounting


payroll

Prepare the adjusting entry to record bad debts under each separate assumption. Bad debts are estimated to be 1.5% of credit sales. Bad debts are estimated to be 1% of total sales. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31).

In the month of June, a department had 20,000 units in Beginning Work-in-Process that were 70% complete. During June, 90,000 units were transferred into production from another department. At the end of June there were 10,000 units in Ending Work-in-Process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. Using the Weighted Average method, the equivalent units of production for materials in June were:

On April 1, 2015, the City of Southern Ponds issued $3,500,000 in 4% general obligation, tax supported bonds at 101 for the purpose of constructing a new police station. The premium was transferred to a debt service fund. A total of $3,490,000 was used to construct the police station, which was completed before December 31, 2015, the end of the fiscal year. The
remaining funds were transferred to the debt service fund. The bonds were dated April 1, 2015, and paid interest on October 1 and April 1. The first of 20 equal annual principal payments of $175,000 is due April 1, 2016.
What amount would be reported as debt service expenditures for 2015?
A) $ -0-
B) $ 70,000.
C) $140,000.
D) $245,000.

The total factory overhead for Landen Company is budgeted for the year at $675,000. Landen manufactures two drapery products: sheer curtains and insulated curtains. These products each require 6 direct labor hours (dlh) to manufacture. Each product is budgeted for 7,500 units of production for the year. What would the factory overhead allocated per unit for insulated curtains using the single plantwide factory overhead rate be

The summer season is approaching, and
soon consumers will be heading to stores to
update their winter wardrobes (winter
clothes).

All of the following are true statements regarding Treasury Bills EXCEPT:A T-Bills are issued in bearer form in the United StatesB T-Bills are registered in the owner's name in book entry formC T-Bills are issued at a discountD T-Bills are non-callable

Special Order Poppy has received a special order for 1,000 units of its product at a special price of $125. The product currently sells 18,000 units for $150 and has the following manufacturing costs:

Per unit Direct materials $45
Direct labor 30
Variable manufacturing overhead 35
Fixed manufacturing overhead 25
Unit cost $135

Assume that Poppy has sufficient capacity to fill the order without harming normal production and sales.

a. If Poppy accepts the order, what effect will the order have on the company’s short-term profit?
b. If Poppy accepts the order and fills it completely, what effect will the order have on the company’s short-term profit?

Identify future taxable amounts and future deductible amounts.
Listed below are 10 causes of temporary differences. For each temporary difference, indicate (by letter) whether it will create future deductible amounts (D) or future taxable amounts (T)
Temporary Difference
1. Accrual of loss contingency; tax-deductible when paid.
2. Newspaper subscriptions; taxable when cash is received, recognized for financial reporting when the performance obligation is satisfied.
3. Prepaid rent; tax-deductible when paid.
4. Accrued bond interest expense; tax-deductible when paid.
5. Prepaid insurance; tax-deductible when paid.
6. Unrealized loss from recording investments at fair value; tax-deductible when investments are sold.
7. Warranty expense; estimated for financial reporting when products are sold; deducted for tax purposes when paid.
8. Advance rent receipts on an operating lease as the lessor; taxable when received.
9. Straight-line depreciation for financial reporting; accelerated depreciation for tax purposes.
10. Accrued expense for employee vacation days not yet taken; tax deductible when employee takes vacation in future.

The competitive test that a business plan must pass to attract financing from lenders and investors involves proving ________. Group of answer choices that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return that the company can gain a competitive advantage over its key competitors that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan that the industry in which the business will compete is growing faster than the overall economy and has room for more competitors

Marketing managers from two companies agree that competing to offer the lowest prices has been hurting their profit margins, so they agree on the prices they will charge for some of their key products. What illegal pricing behavior is this? O A. Price discrimination O B. Deceptive pricing C. Price fixing O D. Price gouging​

Vaughn Manufacturing sells its product for $60 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $14, direct labor $15, and variable overhead $5. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. The per unit manufacturing cost under variable costing is

Albertson Fabricators has established the following labor standards for a particular product: Standard labor-hours per unit of output 8.7 hours Standard labor rate $15.60 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 8,600 hours Actual total labor cost $131,580 Actual output 850 units What is the labor rate variance for the month

With regard to trading location, Multiple Choice none of the options forward contracts are traded competitively on organized exchanges. futures contracts are traded by bank dealers via a network of telephones and computerized dealing systems. futures contracts are traded competitively on organized exchanges.

Woidtke Manufacturing's stock currently sells for $25 a share. The stock just paid a dividend of $1.60 a share (i.e., D0 = $1.60), and the dividend is expected to grow forever at a constant rate of 5% a year. What stock price is expected 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the estimated required rate of return on Woidtke's stock (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round the answer to two decimal places. %