Test 3 Part 3
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On July 9, Miffiin Company receives an $9,400, 150-day, 6% note from customer Payton Summers to replace an account receivable. What entry should be made by Miffin on the maturity date assuming the maker pays in full, and no adjusting entries have been made related to the note? (Use 360 days a year) 44 s Mutuple Choice Scored @ oo casn 59535 cragt Imerest Revenue $235;cradt Notes Recenvable $9.400 Debit Cash $9,400; credit Notes Receivable $9,400. Debit Notes Receivable $9.400; debit Interest Recelvable $235; credit Sales $9.635 Debit Cash $9,404; credit Interest Revenue $94; credit Notes Recelvable $9.400. Debit Cash $9,507; credit Interest Revenue $107; credit Notes Recelvable $9,400. o O O O Explanation $9.400 % 006 » 150/360 = $235 + $0,400 = $9635
7 Giorgio had cost of goods sold of $9,637 million, ending inventory of $2,305 million, and average inventory of $2181 million. Its inventory turnover equals: Multiple Choice 44 points awarded O O o= O wson @ = O e Explanation Invertory Tumover = Costof Goods Sold/Average Invertory Inventory Turmover = $9,637/52181~ 442 times
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Jervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 4.0% charge on sales for using its card. On June 28, Jervis had $5,200 in NB Card credit sales. What entry should Jervis make on 1 0 June 28 to record the deposit? 44 points awarded Mutuple Choice () pebrcasn5.200;creciesaies $5.200 Debit Accounts Receivable $5,200; credit Sales $5,200 Explanation Credit card fee expense: $5,200 x 0.040 = $208.00 Cash recelved: $5,200 - $208.00 = $4,992.00 Debit Cash $5,408.00; credit Credt Card Expense $208.00; credit Sales $5,200 Debit Cash $4,092.00; debrt Credit Card Expense $208.00; credrt Sales $5.200 O e O O Debit Accounts Receivable $4,99200; debit Credt Card Expense $208.00; credit Sales $5,200
1 6 On July 9, Miffiin Company receives a $9,200, 90-day, 8% note from customer Payton Summers as payment on account. Compute the amount due st maturity for the note and interest (Use 360 days a year) Multiple Choice 44 points awarded [ scoes ] O sz $9200 58867 59339 Explanation $9,200 x 0.08 x 90/360 = $184 + $9,200 = $9,384 59384 e O O O
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Brinker accepts all msjor bank credit cards, including First Savings Bank's, which assesses a 5% charge on sles for using ts card. On May 26, Brinker had $6,200 in First Savings Bank Card credit sales. What entry should Brinker make on 17 May 26 to record the deposit? 44 points awarded Mutuple Choice (O) Debiicasn $6.510: crect Crect Cara Expense $310;crecit Saies $6,200. Debit Cash $5,890; debit Credit Card Expense $310; credit Sales $6,200. Debit Accounts Receivable $6,200; credit Sales $6,200. Debit Cash $6,200; credt Sales $6,200. O O O |e Debit Accounts Receivable $5,890; debit Credit Card Expense $310; credt Sales $6,200. Explanation Credit card fee expense: $6,200 x 0.050 = $310 Cash recelved: $6,200 - $310 = $5,890
A company used straight-line depreciation for an item of equipment that cost $20,650, had a salvage value of $5,800 and a six-year useful ife. After depreciating the asset for three complete years, the salvage value was reduced to $2,065 1 9 but ts total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful ife: 44 points awarded Mutuple Choice O s @ = ? O s QO sues Explanation O s Accumulated Depreciation through the end of year 3: (Cost of Asset - Salvage Value)/Estimated Useful Life x Years Elapsed (520,650 - $5,800)/6 x 3 = $7.425 Depreciation, years 4 through 6 = (Cost of Asset - Accumulated Depreciation - Salvage Value)/Remalning Estimated Useful Life (520,650 - $7.425 - $2,065)/3 =$3720
The following information is available on a depreciable asset 22 Purchase date January 1, Year 1 Purchase price $106,000 Salvage value 510,000 ga"ma\.lmed Useful life 10 years Depreciation method straight-line The asset's book value is $86,800 on January 1, Year 3. On that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during Year 3 would be: Mutuple Choice 1085000 $818000 $1022500 $960000 Explanation $868000 O O (@] O O [(Year 3 book value - revised salvage value)/useful life] = Year 3 depreciation [($86,800 - $5,000)/8)] = $10,225.00.
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Condensed Balance Sheets
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Ch. 17 - Financial Statement Anal x
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December 31, 2014 and 2013
Dec. 31, 2014
Dec. 31, 2013
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bloe
Current assets:
Cash.
Marketable securities
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$ 400,000
1,000,000
1,010,000
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740,000
510,000
Inventories
1,190,000
950,000
000. Prepaid expenses.
250,000
229,000
Total current assets.
$3,690,000
$3,089,000
Long-term investments...
2,350,000
2,300,000
1
Property, plant, and equipment (net)
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3,366,000
$9,780,000
$8,755,000
Liabilities
Current liabilities
$ 900,000
$ 880,000
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$ 200,000
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The management team of Wickersham Brothers Incorporated is preparing its annual financial statements. The statements are
complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized.
Current Year
Prior Year
Balance Sheet
Assets
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$ 91,500
$ 111,000
Accounts Receivable
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Less: Accumulated Depreciation
97,500
00006
000'06
(48,800)
$ 422,700
Total assets
$ 378,500
Liabilities:
$ 15,000
$ 18,000
Accounts Payable
Salaries and Wages Payable
Notes Payable, Long-Term
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000'e
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120,000
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189,700
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The following items appear on the balance sheet of a company with a one-year operating cycle. Identify each item as a current
liability, a long-term liability, or not a liability.
Item
Classification
1. Sales taxes payable.
2. Pension liability (to be fully paid to retired employees in next 11 months)
3. Pension liability (to be paid to employees retiring in 2 to 5 years)
rint
4. Machinery (expected life of 4 years)
5. Employee Medical Insurance Payable
rences
6. FICA-Medicare Taxes Payable
7. Interest payable (due in 90 days)
8. Wages payable.
9. Employee Federal Income Taxes Payable
10. Employee Union Dues Payable
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At the beginning of 2021, VHF Industries acquired a machine with a fair value of $9,415,785 by signing a four-year lease. The lease is
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Required:
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2-4. Prepare the lessee's journal entries at the beginning of the lease, the first lease payment at December 31, 2021 and the second
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5. Suppose the fair value of the machine and the lessor's implicit rate were unknown at the time of the lease, but that…
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16
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Brokeroge
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Sell (-)
= 250 XOSp = 7125
Purchae cort pthee = 2So+125 = 7 251.25
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720 - 288 = 717
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420272
717.12
Published on Mar 20, 2020
1)Mr. Shah invested Rs. 75,375 to purchase equity
shares of a company at market price of Rs. 250
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The face value of a share is Rs. 10. How many
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2) Mr. Nene received Rs. 4,30,272 after selling
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Consider the following case:
The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years:
Annual Cash Flows
Year 2
Year 3
Year 4
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Year 1
$100,000
$20,000
$330,000
$450,000
$750,000
this investment is 4%. What is the present value of this uneven cash flow
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stream, rounded to the nearest whole dollar?
O $450,000
O $2,025,000
O $1,675,000
O $1,409,121
flows or annuity payments:
Identify whether the situations described in the following table are examples of uneven
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Problem Solving (5 items x 3 points)
Instruction: Answer the following problems with appropriate solutions.
1. JBL expects to sell 7,000 units of wireless earbuds this year at P7,199.00 each. What is the projected
sales revenue?
2. ROS Corporation sold 9,000 flashlight umbrellas in 2020. Their expected units to be sold this year is
10,000 units. What is the percentage change in sales volume?
3. The variable expenses of wearable air purifiers last year amounted to Php500,000. The entrepreneur
projects a 2.25% increase in sales volume. What is the projected variable expense?
4. Maddison, LTD. sold 700 desks last year.…
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Accounting for Income Taxes) i
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A reconciliation of pretax financial statement income to taxable income is shown below for See Shipping for the year ended December 31, 2021, its first
year of operations. The income tax rate is 25%.
Pretax accounting income (income statement)
Installment income taxable upon receipt next year
000'009$
(000'0)
000'S
82
Warranty expense in excess of deductible amount
Tax depreciation in excess of income statement amount
(000'07)
Taxable income (tax return)
000's
What amount should See report as a noncurrent item related to deferred income taxes in its 2021 balance sheet?
Multiple Choice
Deferred income tax asset of $11,250.
Deferred income tax liability of $45,000.
Finacial…
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11. What would be the financial impact of Lily taking out this Payday Loan? How do borrowers get trapped in an
inescapable cycle of borrowing money when using this type of loan?
12. Using THIS spreadsheet, calculate the total cost of Lily taking this Payday Loan. As you know, short-term loans
are rarely short-term. Many borrowers renew or refinance their loan because they do not have the funds to pay it off
on the due date. For this example, assume Lily renews her loan…
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Problem 15-4 (Algo) Finance/sales-type lease; lessee and lessor [LO15-1, 15-2, 15-3]
Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians'
Leasing purchased a lithotripter from Rand for $2,450,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2021. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Lease Description:
Quarterly lease payments
$159,882-beginning of each period
5 years (20 quarters)
Lease term
No residual value; no purchase option
Economic life of lithotripter
Implicit interest rate and lessee's incremental…
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