Business
Cullumber Company has the following balances in selected accounts on December 31, 2020. Accounts Receivable $ 0 Accumulated DepreciationEquipment 0 Equipment 8,000 Interest Payable 0 Notes Payable 11,000 Prepaid Insurance 3,120 Salaries and Wages Payable 0 Supplies 2,200 Unearned Service Revenue 28,000 All the accounts have normal balances. The information below has been gathered at December 31, 2020. 1. Cullumber Company borrowed $9,400 by signing a 9%, one-year note on September 1, 2020. 2. A count of supplies on December 31, 2020, indicates that supplies of $970 are on hand. 3. Depreciation on the equipment for 2020 is $2,000. 4. Cullumber Company paid $3,120 for 12 months of insurance coverage on June 1, 2020. 5. On December 1, 2020, Cullumber collected $28,000 for consulting services to be performed from December 1, 2020, through March 31, 2021. The company had performed 1/4 of the services by December 31. 6. Cullumber performed consulting services for a client in December 2020. The client will be billed $4,200. 7. Cullumber Company pays its employees total salaries of $5,600 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2020.Prepare adjusting entries for the seven items described above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Gold Company was experiencing financial difficulties, but was not bankrupt or insolvent. The National Bank, which held a mortgage on other real estate owned by Gold, reduced the principal from $110,000 to $85,000. The bank had made the loan to Gold when it purchased the real estate from Silver, Inc. Pink, Inc., the holder of a mortgage on Golds building, agreed to accept $40,000 in full payment of the $55,000 due. Pink had sold the building to Gold for $150,000 that was to be paid in installments over 8 years. As a result of the above, Gold must:____________a. Include $40,000 in gross income.b. Reduce the basis in its assets by $40,000.c. Include $25,000 in gross income and reduce its basis in its assets by $15,000.d. Include $15,000 in gross income and reduce its basis in the building by $25,000.e. None of these.
Gregs Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost March 1 Beginning inventory 20 $230 $4,600 March 5 Sale ($360 each) 15 March 9 Purchase 10 250 2,500 March 17 Sale ($410 each) 8 March 22 Purchase 10 260 2,600 March 27 Sale ($435 each) 12 March 30 Purchase 8 280 2,240 For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase. Required:a. Calculate ending inventory and cost of goods sold at March 31, 2015, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.b. Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2015.c. Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015.d. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.)e. Calculate sales revenue and gross profit under each of the four methods.
ClevelandInc. leased a new crane to Abriendo Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $48,555 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $240,000, and a cost to Cleveland of $240,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Cleveland and Abriendo adjust and close books annually at December 31. Collectibility of the lease payments is probable. Abriendos incremental borrowing rate is 8%, and Clevelands implicit interest rate of 8% is known to Abriendo. Discuss what should be presented in the balance sheet, the income statement, and the related notes of both the lessee and the lessor at December 31, 2020.
Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. Gain on sale of equipment $6,350 Depreciation expenseOffice copier $600 Office supplies expense 770 Sales discounts 15,700 Insurance expense 1,240 Sales returns and allowances 4,000 Sales 215,000 TV advertising expense 2,100 Office salaries expense 31,500 Interest revenue 600 Rent expenseSelling space 11,000 Cost of goods sold 88,100 Sales staff wages 23,000 Sales commission expense 13,600Required:Prepare a multiple-step income statement.
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $19 1,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Debit Credit Debit Credit Cash $94,000 $39,000 Accounts Receivable 53,000 58,000Inventory 188,000 108,000Land 92,000 34,000Buildings and Equipment 494,000 161,000 Investment in Sword Company 217,000 Cost of Goods Sold 494,000 257,000 Depreciation Expense 24,000 14,000 Other Expenses 74,000 74,000Dividends Declared 56,000 26,000Accumulated Depreciation $151,000 $70,000Accounts Payable 64,000 28,000Mortgages Payable 189,000 141,000Common Stock 294,000 45,000Retained Earnings 348,000 84,000Sales 685,000 403,000Income from Sword Company Prince Corporation 55,000 $1,786,000 $1,786,000 $771,000 $771,000Additional Information 1. On January 1, 20X7, Lime reported net assets with a book value of $150,000. A total of $20,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7. 2. Lime's depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment. 3. Jersey used the equity method in accounting for its investment in Lime. 4. Detailed analysis of receivables and payables showed that Sword owed Prince $23,000 on December 31, 20x7.Required:Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for 20x7
Use the following data to calculate the current ratio. Koonce Office Supplies Balance Sheet December 31, 2014 Cash $130,000 Accounts payable $100,000 Accounts receivable $100,000 Salaries and wages payable $20,000Inventory $110,000 Mortgage payable 160,000 Prepaid insurance $60,000 Total liabilities 320000 Stock investments $170,000 Common stock $240,000 Land 180000 Retained earnings $500,000 Buildings 210000 Total stockholders' equity 740000 Less: Accumulated depreciation ($40,000) Total liability and 1.060,000 $170,000 stockholder equityTrademarks $140,000 Total assets $1.060,000 a. 2.50:1 b. 2.13:1 c. 1.44:1 d. 2.86:1
Blaster Corporation manufactures hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000 pairs of boots. Budgeted Costs Budgeted Costs per Pair Percentage of Costs Considered Variable Direct materials $ 630,000 $ 21 100 % Direct labor 300,000 10 100 Manufacturing overhead (fixed and variable) 720,000 24 25 Selling and administrative expenses 600,000 20 20 Totals $ 2,250,000 $ 75 Required: a. Compute the sales price per unit that would result in a budgeted operating income of $900,000, assuming that the company produces and sells 30,000 pairs. (Hint: First compute the budgeted sales revenue needed to produce this operating income.) Assume that the company decides to sell the boots at a unit price of $121 per pair. b-1. Compute the total fixed costs budgeted for the year. b-2. Compute the variable cost per unit. b-3. Compute the contribution margin per pair of boots. b-4. Compute the number of pairs that must be produced and sold annually to break even at a sales price of $121 per pair.
The following information is available for Windsor Inc. for the year ended December 31, 2017:_______. Loss on discontinued operations $66,000 Retained earnings January 1, 2017 $1,260,000 Rent revenue 98,000 Selling expenses 876,000 Income tax applicable to continuing operations 297,000 Income tax applicable to loss on discontinued operations 23,000 Administrative expenses 507,000 Cost of goods sold 1,648,000 Loss on write-down of inventory 37,000 Sales revenue 3,775,000 Gain on sale of equipment 31,000 Cash dividends declared 230,000 Unrealized gain on available-for-sale securities 27,000 Interest expense 57,000 200,000 shares were outstanding during all of 2017.
Flintlnc. provided the following information for the year 2017. Retained earnings, January 1, 2017 $ 589,400 Administrative expenses 246,000Selling expenses 307,200 Sales revenue 1,812,200Cash dividends declared 83,000Cost of goods sold 821,500Loss on discontinued operations 78,200Rent revenue 40,200Unrealized holding gain on available-for-sale securities 16,900Income tax applicable to continuing operations 192,700 Income tax benefit applicable to loss on discontinued operations 43,010Income tax applicable to unrealized holding gain on available-for-sale securities 2,000 1. Prepare a single-step income statement for 2017. Shares outstanding during 2017 were 100,000. (Round earnings per share to 2 decimal places, e.g. $1.48.) 2. Prepare aretained earning statement for 2017. Shares outstanding for 2017 were 100000.