On July 1 of the current year, Melissa Co. acquired 25% of the outstanding shares of common stock of International Co. at a total cost of $700,000. At the time, the equity (net assets) of International Co. totaled $2,400,000, meaning that the $700,000 purchase price was greater than 25% of net assets. Melissa was willing to pa
See attached file. The County of Maxnell decides to create a sanitation department and offer its services to the public for a fee. As a result, county officials plan to account for this activity within the enterprise funds. Make Journal entries for this operation for the following 2008 transactions as well as necessary ad
13. The Brawn Company had a $400 credit balance in Allowance for Doubtful Accounts at December 31, 2007, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage
Problem 1: 1. On December 3, Rebecca Company sold $48,000 of merchadise to Simonis Co.,2/10 ,n/30, FOB shipping point. The cost of the merchadise sold was $350,000. 2. On December 8, Simmons Co. was granted an allowance of $27,000 for merchadise purchased on December 3. 3. On December 13, Rebecca Company received the balan
Prince Corporation purchased 960,000 shares of Smithtown Corporation's common stock (an 80% interest) for 21,200,000 on January 1, 2006. The 2,000,000 excess of investment cost over book value acquired was allocated to goodwill On January 1, 2008, Smithtown sold 400,000 previously unissued shares of common stock to the public
9-2A Ming Company began operations on January 1, 2008. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. 2008 a. Sold $1,347,700 of merchandise (that had cost $982,500) on credit,
1) During 2006, Hawn Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the
Question 23 Olson Corporation constructs new homes. Assume that Olson uses a job costing system. During May 2010, the following transactions occurred: Olson purchased $4,500 of lumber on account. Olson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour. Depreciation of $1,50
Hello, I need your help with this to double check my work with a professional...Please put in excel..Thank you. Please see attached. Santana Company exchanged equipment used in its manufacturing operations plus $2,00 in cash for similar equipment used in the operations of Delaware Company. The following information pertains t
On December 31, 2008 Company A rendered services to Company B at an agreed price of $91,844.10 (do not round), accepting $36,000 down and agreeing to accept the balance in four equal installments of $18,000 receivable each December 31. An assumed interest rate of 11% is imputed. Prepare the entries that would be recorded by
I5-2: The following information pertains to the Leisure Time Company as of December 31, 2009; the date the company closes its accounting records for the year: Employee Hire Date Hourly Rate of Pay 2008 Vacation Days carried into 2009 Days Vacation Taken in 2009 R. Apple 07/12/1985 $37.50 7 23 P. Caliper 04/01/20
Non monetary exchange. Martin Co. had a sheet metal cutter that cost $96,000 on January 5, 2002. This old cutter had an estimated life of ten years and a salvage value of $16,000. On April 3, 2007, the old cutter is exchanged for a new cutter with a market value of $48,000. The exchange lacked commercial substance. Martin also
Please explain how to prepare these entries: Entries for bad debt expense The trial balance before adjustment of Suarez Company reports the following balances: Dr. Cr. Accounts receivable $100,000 Allowance for doubtful accounts $2,500 Sales (all on credit)
** See attached PDF for details... ** Rocklin Corporation reports the following components of stockholders' equity on December 31, 2009. Common stock-$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $1,125,000 Paid-in capital in excess of par value, common stock 60,000 Retain
** See PDF for better description... ** [The following information applies to the questions displayed below.] Montag Co. entered into the following transactions involving short-term liabilities in 2008 and 2009. 2008 Apr. 20 Purchased $48,250 of merchandise on credit from Locust, terms are 1/10, n/30. Montag use
On May 1, Battery, Inc. factored $800,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Battery was to handle disputes concerning service, and Quick Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Quick Finance assessed a finance charg
Listed below are transactions dealing with various stock benefit plans of Fortune-Time Corporation during the period 2009-2011. The market price of the stock is $45 at January 1, 2009. a.On Jan. 1,09, the company issued 10 million common shares to divisional managers under its restricted stock award plan. The shares are subj
McCallister & Speass Plowing Company is completing the accounting process for the year ending December 31, 2009. The transactions during 2009 have been journalized and posted. The following data with respect to adjusting entries was available. Please record the required adjusting entries for December 2009. a. Two plowing j
Kusmaul Electric sold $500,000, 10%, 10-year bonds on January 1, 2008. The bonds were dated January 1 and paid interest on January 1 and July 1. The bonds were sold at 104 Prepare the journal entry to record the issuance of the bonds on January 1, 2008. (List multiple debit/credit entries in descending order of amount.) At
The stockholders' equity accounts of Hashmi Company at January 1, 2008, are as follows. Preferred Stock, 6%, $50 par $600,000 Common Stock, $5 par 800,000 Paid-in Capital in Excess of Par Value-Preferred Stock 200,000 Paid-in Capital in Excess of Par Value-Common Stock 300,000 Retained Earnings 800,000 There were n
Milner Corporation has been authorized to issue 20,000 shares of $100 par value, 10% noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2007, the ledger contained the following balances pertaining to stockholders' equity.
Please find attached the XCEL file containing the questions. Grayson Group showed the following unadjusted account balances, each with a normal balance, at December 31, 2007: Accounts Receivable $374,000 Allowance for Doubtful Accounts $2,200 Sales (all on credit) $1,125,000 Sales Discounts
P17-2 (Available-for-Sale Debt Securities) On January 1, 2007, Rob Wilco Company purchased $200,000, 8% bonds of Mercury Co. for $184,557. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2012. Rob Wilco Company uses the effective-interest
Scenario: Scenario A Emily and Richard are majority shareholders and President and Vice President respectively of Leeds Holding Company Incorporated. A holding company is set up to own other companies and provide management and expertise. Recently, Emily and Richard have invested in Faster Distribution Company Incorporated,
See attachment file. Common Stock Issue Based on the following data, prepare the journal entries for the issue of common stock under five scenarios: (1) Stock issued for cash at par value. (2) Stock issued for cash at stated value equal to par value. (3) Stock issued for cash with no par or stated value. (4) Stock issued i
1. Josh Beach contributed land, inventory, and $24,000 cash to a partnership. The land had a book value of $65,000 and a market value of $114, 000. The inventory had a book value of $60,000 and a market value of $56,000. The partnership also assumed a $50,000 note payable owed by Beach that was used originally to purchase the la
You are a Director of Accounting and your Executive Director has asked you to put together a training handout that will help non-finance department directors understand the accounting cycle. A really good strategy to use is to explain the accounting cycle, from start to finish.
When actual wage rate paid to direct labor worker exceeds the standard wage rate, the journal entry would included: 1-Debit to wages payable;credit to labor rate variance 2-Debit to work in process;credit to labor rate variance 3-Debit to wages payable;debit to labor rate variance 4-Debit to work in process; debit to labor
The Calvin Company uses the allowance method to account for uncollectible accounts. Prepare the appropriate journal entries to record the following transactions during 2010. You may omit journal entry explanations. May 20 The account of Larry Taylor for $950 was deemed to be uncollectible and is written off as a bad debt.
Required: 1.) For direct materials: a.) Compute the direct materials price and quantity of variances. b.) Prepare journal entries to record the purchase of materials and the use of materials in production. 2.) For direct labor: a.) Compute the direct labor rate and efficiency variances.