To make sure you are up to date on the special guidelines the GASB has declared, your manager asked you to research GASB Statement No. 56. He also asked you to show him, side by side, how government accounting journal entries might differ from for-profit journal entries in these similar events. * When was GASB Statement No. 5
A).October 1: Sold $10,000 of merchandise on account, 1/10, n/30 to Fabulous Felines. PROBLEM: Record the entry for sale of merchandise on account to Fabulous Felines. B) November 1: Accepted a $10,000, 90-day, 10% promissory note from Fabulous Felines in exchange for its account receivable. PROBLEM: Record the entry for ac
The solution gives detailed steps on computing the gross profit for a specifc question and then preparing a journey entry. All formula and calculations are shown and explained.
In 2012, Gurney Construction Company agrees to construct an apartment building at a price of $1,200,000. The information relating to the costs and buildings for the contract shown below: Costs 2012 2013 2014 Costs incurred to date $280,000 $600,000 $785,000 Estmated costs yet incurred 520,000 200,000 0 Customer bi
I need help writing an intellectual biography about Robert E. Lucas, Jr and economic philosophy including his contemporary economic issue and how this economist would respond to today's economic issues. And, "his 1995 Nobel Prize in economics for having developed and applied the hypothesis of rational expectations"!
Prepare all journal entries in all funds and the GCA and GLTL accounts to record the following transactions and events. 1. A state issued $50,000,000 of 4%, 20 year term bonds at 105 to provide financing for construction of a new state legislative office building. The premium which is to be used for debt service, was transf
Calculating depreciation has proved problematic for me and I need some assistance. On January 1, 2010, a taxi company purchased a new cab at a cost of $25,000. The estimated salvage value of the cab is $5,000, and the cab's useful life is 5 years. The new cab will be driven an estimated 100,000 miles. Required: a) Write t
2012 July 1 Issued $ 42,000,000 of 10 yr, 13% callable bonds dated July 1, 12 at a market (effective) rate of 10%, receiving cash of $49,851,213. Interest is payable semiannually on December 31 and June 30. Oct 1 Borrowed $510,000 as a six yr 9% installment from Challenger Bank The note requires annual payments of $113,689,
The accounting period has just ended and you are preparing journal entries for the transactions that took place during the month. Make sure to include entries that affect the COGS account. 1. Prepare the proper journal entries in an Excel file, including Notes, and properly update the T-accounts affected by each of the follo
Lee Corporation Equity Scenario Lee Corporation is an American Company that began operations on January 1, 2004. It has just completed its fourth full year of operations on December 31, 2007. Ending Year Balances for the prior year ended on December 2006 were as follows: Retained Earning
Describe a dominant negotiation style based on the Thomas-Kilman model. Include examples. Include text principles and at least two references from sources on negotiation such as business journals, etc. Analyze the effectiveness of the style and comment on improvements that can be made in terms of the negotiation style.
P16-2 (Entries for Conversion, Amortization, and Interest of Bonds) Volker Inc. issued $2,500,000 of convertible 10 -year bonds on July 1, 2012. The bonds provide for 12% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $54,000 , which is being amortized
McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000 cash. This amount is reflective of Hogan's total fair value. Hogan's stockholders' equity consisted of common stock of $160,000 and retained earnings of $80,000. An analysis of Hogan's net assets revealed the following: .....................
Please help me to write a reserach narrative describing the mass customization of footwear and marketing addressing the following issues below. 1. What is a proposed title of your project? Describe the project you have in mind. What question(s) will be answered by your research??") 2. Why are you interested in pursuing this p
Prepare journal entries to record transactions, a table to compare year-end costs and fair values, and adjusting entries for short-term investments in available for sale securities.
See attached MS Word document titled Ethan Company Problem. Perry Company had no short-term investments prior to year 2011. It had the following transactions involving short-term investments in available-for-sale securities during 2011. Apr. 16 Purchased 8,000 shares of Gem Co. stock at $24.25 per share plus a 360 broker
Case Study: Matthewson Company began operations on January 2, 2012. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year in which they are earned. Sick days may be taken as soo
Preparation of Work Sheet and Adjusting and Closing Entries The following account balances are taken from the general ledger of Whitni Corporation on December 31, 20013, the end of its fiscal year. The corporation was organized January 2005. Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Burns Company purchase an oil tanker depot on Jan 1,2012 at a cost of 600,000. They expect to operate the depot for 10 years at which time it is legally require to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost 70,000 to dismantle the depot and remove the tanks at the end of the d
Updike and Patterson Investments Inc (UPI) holds equity investments with a cost basis of $250,000. UPI accounts for these investments as available-for-sale securities. As such, the investments are carried on the balance sheet as fair value, with unrealized gains and losses reported in other comprehensive income. At the end of
1. Bondorf Inc. issues a $600,000, 10%, 10-year mortgage note on December 31, 2012, to obtain financing for a new building. The terms provide for semiannual installment payments of $48,145. Prepare the entry to record the mortgage loan on December 31, 2012, and the first installment payment. 2. Pas Company issued $1,000,000
William and Frank are partners whose capital balances are $400,000 and $300,000 and who share profits 3:2. Due to a shortage of cash, William and Frank agree to admit Sammy to the firm. Required: Prepare the journal entries required to record Sammy's admission under each of the following assumptions: - Sammy invests $200,0
A 35% stock dividend was declared on October 2 by the board of directors of a corporation to shareholders of record on October 20 payable on November 10. The closing market price of the stock on October 2 was $18. The corporation currently has the following items on its Stockholder's Equity section (all dollar amounts): Common
E17-1 (Investment Classifications) For the following investments, identify whether they are: - 1. Trading - 2. Available-for-Sale - 3. Held-to-Maturity Each case is independent of the other. - (a) A bond that will mature in 4 years was bought 1 month ago when the price dropped. As soon as the value increases, which is expected next month, it will be sold. - (b) 10% of the outstanding stock of Farm-Co was purchased. The company is planning on eventually getting a total of 30% of its outstanding stock. - (c) 10-year bonds were purchased this year. The bonds mature at the first of next year. - (d) Bonds that will mature in 5 years are purchased. The company would like to hold them until they mature, but money has been tight recently and they may need to be sold. - (e) A bond that matures in 10 years was purchased. The company is investing money set aside for an expansion project planned 10 years from now. - (f) Preferred stock was purchased for its constant dividend. The company is planning to hold the preferred stock for a long time. E17-2 (Entries for Held-to-Maturity Securities) On January 1, 2012, Jennings Company purchased at par 10% bonds having a maturity value of $300,000. They are dated January 1, 2012, and mature January 1, 2017, with interest receivable December 31 of each year. The bonds are classified in the held-to-maturity category. Instructions - (a) Prepare the journal entry at the date of the bond purchase. - (b) Prepare the journal entry to record the interest received for 2012. - (c) Prepare the journal entry to record the interest received for 2013. E17-9 (Available-for-Sale Securities Entries and Financial Statement Presentation) At December 31, 2012, the available-for-sale equity portfolio for Wenger, Inc. is as follows. Security / Cost / Fair Value / Unrealized Gain (Loss) A $17,500 $15,000 ($2,500) B 12,500 14,000 1,500 C 23,000 25,500 2,500 Total $53,000 $54,500 1,500 Previous fair value adjustment balanceâ?"Dr. 200 Fair value adjustmentâ?"Dr. $1,300 On January 20, 2013, Wenger, Inc. sold security A for $15,300. The sale proceeds are net of brokerage fees. Instructions - (a) Prepare the adjusting entry at December 31, 2012, to report the portfolio at fair value. - (b) Show the balance sheet presentation of the investment related accounts at December 31, 2012. (Ignore notes presentation.) - (c) Prepare the journal entry for the 2013 sale of security A. E17-12 (Journal Entries for Fair Value and Equity Methods) Situation 1 Hatcher Cosmetics acquired 10% of the 200,000 shares of common stock of Ramirez Fashion at a total cost of $14 per share on March 18, 2012. On June 30, Ramirez declared and paid a $75,000 cash dividend. On December 31, Ramirez reported net income of $122,000 for the year. At December 31, the market price of Ramirez Fashion was $15 per share. The securities are classified as available-for-sale. Situation 2 Holmes, Inc. obtained significant influence over Nadal Corporation by buying 25% of Nadal's 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2012. On June 15, Nadal declared and paid a cash dividend of $36,000. On December 31, Nadal reported a net income of $85,000 for the year. Instructions Prepare all necessary journal entries in 2012 for both situations. E17-16 (Fair Value and Equity Method Compared) Gregory Inc. acquired 20% of the outstanding common stock of Handerson Inc. on December 31, 2012. The purchase price was $1,250,000 for 50,000 shares. Handerson Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2013. Handerson reported net income of $730,000 for 2013. The fair value of Handerson's stock was $27 per share at December 31, 2013. Instructions - (a) Prepare the journal entries for Gregory Inc. for 2012, and 2013, assuming that Gregory cannot exercise significant influence over Handerson. The securities should be classified as available-for-sale. - (b) Prepare the journal entries for Gregory Inc. for 2012 and 2013, assuming that Gregory can exercise significant influence over Handerson. - (c) At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2013? What is the total net income reported in 2013 under each of these methods?
E17-1 (Investment Classifications) For the following investments, identify whether they are: - 1. Trading - 2. Available-for-Sale - 3. Held-to-Maturity Each case is independent of the other. - (a) A bond that will mature in 4 years was bought 1 month ago when the price dropped. As soon as the value increases, which is exp
Response is provided in Excel. E15-2 (Recording the Issuance of Common and Preferred Stock) Abernathy Corporation was organized on January 1, 2012. It is authorized to issue 10,000 shares of 8%, $50 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock tr
The Defiance College sells season tickets for four home football games at a price of $15. For the 2009 season, 5,000 season tickets were sold. (a.) Write the journal entry or use the horizontal model to show the effect of the sale of the season tickets. (b.) Write the journal entry or use the horizontal model to show the effe
Weldon Corporation's fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2011: Mar. 17 Accounts receivable of $1,700 were written off as uncollectible. The company uses the allowance method. 30 Loaned an officer of the company $25,000 and received a note requirin
The following account balances appear on the balance sheet of Organic Life Co., Common stock (250,000 shares authorized), $125 par, $17,5000,000: Paid_In Capital in excess of par-common stock, $560,000: and Retained earnings, $75,496,000. The board of directors declared a 3% stock dividend when the market price of the stock was
Ambrosia Corporation, Prepare the journal entries for income tax expense, income taxes payable, and deferred taxes for 2013.
The Ambrosia Corporation's lead accountant shows the following info: On Jan 1, 2012, Ambrosia purchased a bottling machine for $800000 A) Straight-line basis depreciation for 5 years for tax purposes B) Half year convention for 8 years for financial reporting (See Appendix 11A) C) Tax-exempt municipal bonds yielded interes
A. Compute bad debts expense based on the following information: (a) ABC Company estimates that 2% of net credit sales will become uncollectible. Sales are $600,000, sales returns and allowances are $30,000, and the allowance for doubtful accounts has a $6,000 credit balance. (b) ABC Company estimates that 10% of accounts
Louis Welch is general manager of United Tanning Salons. During 2012, Welch worked for the company all year at a $6,200 monthly salary. He also earned a year-end bonus equal to 10% of his salary. Welch's federal income tax withheld during 2012 was $850 per month, plus $924 on his bonus check. State income tax withheld came to
Starstruck company operates using the euro as their currency. For the most recent year ending December 31, 2011 Starstruck reported the following Loans and borrowings data: Loans and borrowings (noncurrent liabilities) Euros (in millions) Loans and borrowings, December 31, 2011 balance 7,656 Proceeds from issuance of loans