Ajax Company appropriately accounts for certain sales using the installment sales method. The perpetual inventory system is used. Information related to installment sales for 2011 and 2012 is as follows: 2011 2012 Sales
Compute pension expense and journal entries. 2009 Plan assets (FV) 12/31 $699000 Projected benefit obligation 1/1 $700000 Pension asset/Liability 1/1 $140000 CR Prior service cost 1/1 $250000 Service Cost $60000 Actual and expected return on plan assets $24000 Amortization of prior service cost $10000 Contributi
See attached file for the table. Andy Wright, D.D.S., opened a dental practice on January 1, 2008. During the first month of operations the following transactions occurred. 1. Performed services for patients who had dental plan insurance. At January 31, $875 of such services was earned but not yet recorded. 2. Utility e
Treasury Stock Transaction Nature corporation engaged in the folloiwing treasury transactions during current year. Aug 25 - Purchased 4,000 shares of treasury stock at $50 per share. Oct 10 - Reissued 1,500 shares of treasury stock acquired on Aug 25 at price of $58 per share. Dec 15 - Reissued 1,000 shares of treasury s
The following transactions relate to the general fund of the City of Buffalo Falls for the year ended December 31, 2012: 1 Beginning balances were Cash, $150,000; Taxes receivable $200,000; Accounts Payable, $50,000; and Fund Balance, $300,000. 2 The budget was passed. Estimated revenues amounted to $2,000,000 and appropriat
Rowand Enterprises had the following selected transactions. 1. Aaron Rowand invested $4,000 cash in the business in exchange for common stock. 2. Paid office rent of $1,100. 3. Performed consulting services and billed a client $5,200. 4. Paid $700 cash dividend. (a) Indicate the effect each transaction has on the basic
During the current year, Garrison Construction trades an old crane that has a book value of $80,000 (original cost $140,000 less accumulated depreciation $60,000) for a new crane from Keillor Manufacturing Co. the new crane cost Keillor $165,000 to manufacture and is classified as inventory. The following information is also ava
Mount Co. has the following defined-benefit pension plan balances on January 1, 2008. Projected Benefit Obligation - 4,500,000 Fair value of plan assets - 4,500,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2009, the company amends its pension agreement so that prior service costs of $600,
What are the equity method journal entries typically recorded by a parent company? Provide examples in your response.
Choose an article on Private Business Competition from a professional, economic, or management journal published in the last ten years such as The Freeman: Ideas On Liberty, The Economist, Forbes, The Cato Journal, Harvard Business Review, or Sloan Management Review. Provide an article review that: a. Sets forth the tit
Liabilities Part 2 Tutorial Practice Revision Question 1: On 1 July 2008 Coledale Ltd issued $10 million in five year debentures that pay interest each six months at a coupon rate of 8%, with the first interest payment due on 31 December 2008. The debentures will mature on 30 June 2013, which is also the date of the fina
Explain the overall accounting cycle for a fast food restaurant. Include a description of the people, processes, and systems that are integral to the cycle.
The following information relates to Sharp Co. for year-end 2007. 1. The allowance for bad debts should be 6% of accounts receivables. 2. A physical count of supplies at year-end showed $3,200 on hand. 3. The note receivable came from a customer on October 1. It was a six month note at 6% interest. 4. On September 1 the comp
The following information pertains to Family Video Company. 1. Cash balance per bank, July 31, $7,742.36. 2. July bank service charge not recorded by the depositor $29.85. 3. Cash balance per books, July 31, $7,764.74. 4. Deposits in transit, July 31, $1,599.00. 5. Bank collected $959.40 note for F
See attached file for proper format. (Comprehensive 2-Year Worksheet) Glesen Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2008 and 2009. 2008 2009 Projected benefit obligation, January 1 $650,000 Plan assets (fair value and market
E10-13 Herzogg Company, organized in 2008, has the following transactions related to intangible assets: 1/2/2008 Purchased patent (7-year life) - $560,000 4/1/2008 Goodwill purchased- $360,000 7/1/2008 10-Year franchise; expiration date: 7/1/2018 - $440,000 9/1/2008 Research and Development costs - $185,000 Prepare the
Grossman Corporation issued 1,000 shares of stock. Instructions: Prepare the journal entry for the issuance under the following assumptions: 1. The stock had a par value of $5 per share and was issued for a total of $52,000. 2. The stock had a stated value of $5 per share and was issued for a total of $5
At the beginning of 2006, Lehman Company acquired equipment costing $90,000. It was estimated that this equipment would have a useful life of 6 years and a residual value of $9,000 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be
Income statement for year end 12/31/2010 Sales 500,000 Cost of goods sold 325,000 Gross profit 175,000 Sales general and admin expenses 125,000 Depreciation expenses 8,000 42,000 Other gains/losses Gain from sale of e
Can you help me get started with this assignment? During Burns Company's first year of operations, credit sales totalled $140,000 and collections on credit sales totalled $105,000. Burns estimates that bad debt losses will be 105% of credit sales. By year-end, Burns had written off $300 of specific accounts as uncollectible.
Can you help me with this assignment? Wisconsin Tool Biz purchased tool sharpening equipment on July 1, 2008 for 48,600. The equipment was expected to have a useful life of three years, and a residual value of $3,000. Determine the amount of depreciation expense for the years ended December 31, 2008, 2009, 2010, and 2011,
On January 1, 2010, Magilla Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the company's $10 par common stock at $25 per share. The options were exercisable within a 5-year period beginning January 1, 2012, by grantees still in the the employ of the company, and expiring December 31
Holiday Company issued its 9%, 25-year mortgage bonds in the principal amount of $3,000,000 on January 2, 1996, at a discount of $150,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided that the binds could be called for redemption in total but not in part at any time before maturity at 104% of the principal amount, but it did not provide for any sinking fund. On December 18, 2010, the company issued its 11%, 20-year debenture bonds in principal amount of $4,000,000 at 102, and the proceeds were used to redeem the 9%, 25-year mortgage binds on January 2, 2011. The indenture securing the new issue did not provide for any sinking fund or for retirement before maturity. (a) Prepare journal entries to record the issuance of 11% bonds and the retirement of the 9% bonds. (b) Indicate the income statement of the gain or loss from retirement ad the note disclosure required.
Holiday Company issued its 9%, 25-year mortgage bonds in the principal amount of $3,000,000 on January 2, 1996, at a discount of $150,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided that the binds could be called for redempti
The bank statement for the checking account of Management Systems Inc. (MSI) showed a December 31, 2011, balance of $14,632.12. Information that might be useful in preparing bank reconciliation is as follows: a) Outstanding checks were $1,320.25 b) The December 31, 2011 cash receipts of $575 were not deposited in the bank unt
See attached file. P18-35 Whitefish Machine Shop is a manufacturer of motorized carts for vacation resorts. Peter Cruz, the plant manager of Whitefish, obtains the following information for Job #10 in August 2007. A total of 40 units were started, and 5 spoiled units were detected and rejected at final inspection, yieldi
A corporation was organized on January 30 of the current year, with an authorization of 20,000 shares of $4 preferred stock, $12 par, and 100,000 shares of $3 par common stock. The following selected transactions were completed during the first year of operations: Jan. 30 Issued 15,000 shares of common stock at $21 per sha
Calculate straight-line depreciation. Record a journal entry to show the sale of an old fixed asset, loss on disposal, and replacement with a new fixed asset.
Foster Glass Company purchased a fax machine on July 1, 2007 for $1,800. The fax machine had an estimated useful life of three years and a salvage value of $300. Assume Foster uses the straight-line depreciation method. Foster decided to replace its fax machine with a bizhub on July 1, 2008, Eagle Outfitters offered to buy th
The partially completed tables are in the Excel doc attached. Complete the cell entries in the first table which list the various activities performed in the Revenue Cycle and the journal entries, documents, data, and control issues associated with them. The second table lists the various activities performed in the Expendit
When McDonald's Corp. reduced the price of its Big Mac by 75 percent if customers also purchased french fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its U.S. sales growth. It didn't; within two weeks sales had fallen. Using your knowledge of game theory, what do you think disrupted McDonald's plans?
When McDonald's Corp. reduced the price of its Big Mac by 75 percent if customers also purchased french fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its U.S. sales growth. It didn't; within two weeks sales had fallen. Using your knowledge of game theory, wh
What are steps of the accounting cycle? Why is it necessary to make adjusting entries at the end of each accounting period? What would happen if all steps were not completed in a specific period?