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Accounting Assignment Help for University-Level Success
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Time Management
1. PROBLEM 3.Order Point, Inventory Levels, Ordering Cost. Charleston Company has developed the...PROBLEM
3.Order Point, Inventory Levels, Ordering Cost. Charleston Company has developed the following data to assist in controlling one of its inventory items:
Economic order quantity.....................................1000liters
Average daily use...........................................100liters
Maximum daily use.........................................120liters
Working days per year.......................................250days
Safety stock...............................................140liters
Cost of carrying inventory....................................$1.00per liter per year
Lead time................................................7working days
Required: Compute the following:
(1)Order point
(2)Average inventory
(3)Maximum inventory assuming normal lead time and usage
(4)Cost of placing one order
2. Consider the following data for a project to install a new server at the Northland Pines High School
Consider the following data for a project to install a new server at the Northland Pines High School: Activity Activity Time (days) Immediate Predecessor(s) В, С D, E G, H, a. Choose the correct network diagram below.
3. Aries Corporation manufactures eighteenth-century, classical-style furniture. It uses a job...
Aries Corporation manufactures eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor-hours. Budgeted factory overhead for the year 2019 was P1,235,475 and management budgeted 86,700 direct labor-hours. These transactions were recorded during August:
A. Purchased 5,000 square feet of oak on account at P25 per square foot.
B. Purchased 50 gallons of glue on account at P36 per gallon (indirect materials)
C. Requisitioned 3,500 square feet of oak and 30.5 gallons of glue for production.
D. Incurred and paid payroll costs P187,900. Of this amount, P46,000 were indirect labor costs; direct labor personnel earned P22 per hour on average.
E. Paid factory utility bill, P15,230 in cash
F. August’s insurance cost for the manufacturing property and equipment was P3,500. The premium had been paid in March
G. Incurred P8,200 depreciation on manufacturing equipment for August
H. Recorded P2,400 depreciation on an administrative asset.
I. Paid advertising expenses in cash, P5,500
J. Incurred and paid other factory overhead costs, P13,500
K. Incurred miscellaneous selling and administrative expenses P13,250
L. Applied factory overhead to production on the basis of direct labor-hours
M. Completed goods costing P146,000 manufactured during the month
N. Made sales on account in August, P132,000. The cost of goods sold wasP112,000.
1. Compute the firm’s predetermined factory overhead rate for the year.
2. Prepare journal entries to record the August events
3. Calculate the amount of overapplied or underapplied overhead
4. Prepare a schedule of cost of goods manufactured and sold
5. Prepare income statement for August.
4. Pam Corporation acquired a 90 percent interest in Sun Corporation on January 1, 2016, for...
Pam Corporation acquired a 90 percent interest in Sun Corporation on January 1, 2016, for $2,700,000, at which time Sun s capital stock and retained earnings were $1,500,000 and $900,000, respectively. The fair value cost/book value differential is due to a patent with a 10-year amortization period. Financial statements for Pam and Sun for 2017 are as follows (in thousands): ADDITIONAL INFORMATION 1. Pam sold inventory to Sun for $600,000 during 2016 and $720,000 during 2017; Sun s inventories at December 31, 2016 and 2017, included unrealized profits of $100,000 and $120,000, respectively. 2. On July 1, 2016, Pam sold machinery with a book value of $280,000 to Sun for $350,000. The machinery had a useful life of 3.5 years at the time of intercompany sale, and straight-line depreciation is used. 3. During 2017, Pam sold land with a book value of $150,000 to Sun for $200,000. 4. Pam s accounts receivable on December 31, 2017, includes $100,000 due from Sun. 5. Pam uses the equity method for its 90 percent interest in Sun. REQUIRED: Prepare a consolidation workpaper for Pam and Subsidiary for the year ended December 31, 2017.
5. A machine costs Rs 90,000 and is deemed to have a scrap value at 5% at the end of its effective life...
A machine costs Rs 90,000 and is deemed to have a scrap value at 5% at the end of its effective life of 19 years. Usually, the machine is expected to run for 2,400 hours per annum, but it is estimated that 150 hours will be lost for normal repairs and maintenance and further 750 hours will be lost due to staggering. The other details in respect of the machine shop are as follows:
(a) Wages, bonus and provident fund contribution of each of the two operators (each operator is in charge of two machines) Rs 6,000
(b) Rent and rates of the shop Rs 3,000 per annum
(c) General lighting of the shop Rs 250 per month
(d) Insurance premium for the machine 200 per month
(e) Cost of repairs and maintenance per machine 250 per month
(f) Shop supervisor's salary 500 per month
(g) Power consumption of the machine would be 20 units per hour, rate of power per 100 units Rs 10
(h) Other factory overhead attributable to shop Rs 4,000 per annum
There are four identical machines in the shop. The supervisor is expected to spend one-fifth of his time for supervising machines. Compute a comprehensive MHR from the above details:
6. Components of quick ratio
1. Which of the following transactions does not affect the quick ratio?
a. Land held for investment is sold for cash.
b. Equipment is purchased and is financed by a long-term debt issue.
c. Inventories are sold for cash.
d. Inventories are sold on a credit basis
7. Case 9-55 Cash Budget Dr. Roger Jones is a successful dentist but is experiencing recurring...
Case 9-55 Cash Budget
Dr. Roger Jones is a successful dentist but is experiencing recurring financial difficulties. For example, Jones owns his office building, which he leased to the professional corporation that housed his dental practice (he owns all shares in the corporation). After the corporation’s failure to pay payroll taxes for the past six months, however, the Internal Revenue Service is threaten- ing to impound the business and sell its assets. Also, the corporation has had difficulty paying its suppliers, owing one of them over $200,000 plus interest. In the past, Jones had borrowed money on the equity in either his personal residence or his office building, but he has grown weary of these recurring problems and has hired a local consultant for advice.
According to the consultant, the financial difficulties facing Jones have been caused by the absence of proper planning and control. Budgetary control is sorely needed. The following fi- nancial information is available for a typical month:
Revenues
Average Fee ($) Quantity
Fillings 50 90
Crowns 300 19
Root canals 170 8
Bridges 500 7
Extractions 45 30
Cleaning 25 108
X-rays 15 150
Costs
Salaries:
Two dental assistants $1,900
Receptionist/bookkeeper 1,500
Hygienist 1,800
Public relations (Mrs. Jones) 1,000
Personal salary 6,500
Total salaries $12,700
Benefits 1,344
Building lease 1,500
Dental supplies 1,200
Janitorial 300
Utilities 400
Phone 150
Office supplies 100
Lab fees 5,000
Loan payments 570
Interest payments 500
Miscellaneous 200
Depreciation 700
Total costs $24,964
Benefits include Jones’s share of social security and a health insurance premium for all employees. Although all revenues billed in a month are not collected, the cash flowing into the business is approximately equal to the month’s billings because of collections from prior months. The office is open Monday through Thursday from 9:00 A.M. to 4:00 P.M. and on Friday from 9:00 A.M. to 12:30 P.M. A total of 32 hours are worked each week. Additional hours could be worked, but Jones is reluctant to do so because of other personal endeavors that he enjoys.
Jones has noted that the two dental assistants and receptionist are not fully utilized. He esti- mates that they are busy about 65 to 70% of the time. Jones’s wife spends about 5 hours each week on a monthly newsletter that is sent to all patients. She also maintains a birthday list and sends cards to patients on their birthdays.
Jones recently attended an informational seminar designed to teach dentists how to increase their revenues. An idea from that seminar persuaded Jones to invest in promotion and public relations (the newsletter and the birthday list).
Required:
1. Prepare a monthly cash budget for Dr. Jones.
2. Using the cash budget prepared in Requirement 1 and the information given in the case, rec- ommend actions to solve Dr. Jones’s financial problems. Prepare a cash budget that reflects these recommendations and demonstrates to Jones that the problems can be corrected. Do you think that Jones will accept your recommendations? Do any of the behavioral principles discussed in the chapter have a role in this type of setting? Explain.
8. Entries for bonds payable and installment note transactions. Journalize the entries
PR 12-4b Entries for bonds payable and installment note transactions
The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:
2016
July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 2016, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semian- nually on December 31 and June 30.
Oct. 1. Borrowed $450,000 by issuing a six-year, 8% installment note to Intexicon Bank. The note requires annual payments of $97,342, with the first payment occurring on September 30, 2017.
Dec. 31. Accrued $9,000 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31. Paid the semiannual interest on the bonds. The bond discount amortization of
$390,852 is combined with the semiannual interest payment.
31. Closed the interest expense account.
2017
June 30. Paid the semiannual interest on the bonds. The bond discount amortization of
$390,852 is combined with the semiannual interest payment.
Sept. 30. Paid the annual payment on the note, which consisted of interest of $36,000 and principal of $61,342.
Dec. 31. Accrued $7,773 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31. Paid the semiannual interest on the bonds. The bond discount amortization of
$390,852 is combined with the semiannual interest payment.
31. Closed the interest expense account.
2018
June 30. Recorded the redemption of the bonds, which were called at 103. The balance in the bond premium account is $6,253,632 after payment of interest and amor- tization of premium have been recorded. (Record the redemption only.)
Sept. 30. Paid the second annual payment on the note, which consisted of interest of
$31,093 and principal of $66,249.
Instructions
1. Journalize the entries to record the foregoing transactions.
2. Indicate the amount of the interest expense in (a) 2016 and (b) 2017.
3. Determine the carrying amount of the bonds as of December 31, 2017.
9. 1. what is organisational legitimacy and why might it be considered to be a 'resource'? 2. If an...
1. what is organisational legitimacy and why might it be considered to be a 'resource'? 2. If an organization's management considered that the organisation might not have operated in accordance with community expectations(it broke the terms of the social contract), consistent with Legitimacy Theory, what actions would you expect management to undertake in the subsequent period? 3. (a) Apply the managerial perspective of Stakeholder Theory to explain whether management would care about the concerns of the charity One Parent Families. (b) If we applied an ethical perspective of Stakeholder Theory, should management care? (c) If society considered that the banks' policies were unreasonable, would you expect the banks to use their annual reports to defend their position (legitimacy)? 4. Would you expect management to worry about attitudinal surveys? Explain your answer, as well as explaining how such surveys might impact on the disclosure policies of an organisation.
