Stargel Inc. common stock was $119.70 on December 31, 2014.
Stargel Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2014 and 2013
2014 2013
Retained earnings, January 1 . . . . . . . . . . . . . .$5,375,000 $4,545,000
Add net income for year . . . . . . . . . . . . . . . . . . . 900,000 925,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,275,000 $5,470,000
Deduct dividends:
On preferred stock . . . . . . . . . . . . . . . . . . . . . . $ 45,000 $ 45,000
On common stock. . . . . . . . . . . . . . . . . . . . . . . . .50,000 50,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 95,000 $ 95,000
Retained earnings, December 31 . . . . . . . . . . .$6,180,000 $5,375,000
Stargel Inc.
Comparative Income Statement
For the Years Ended December 31, 2014 and 2013
2014 2013
Sales (all on account) . . . . . . . . . . . . . . . . . . . $10,050,000 $9,450,000
Sales returns and allowances . . . . . . . . . . . . . . .50,000 50,000
Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000,000 $9,400,000
Cost of goods sold. . . . . . . . . . . . . . . . . . . . . . 5,350,000 4,950,000
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,650,000 $4,450,000
Selling expenses . . . . . . . . . . . . . . . . . . . . . . .$ 2,000,000 $1,880,000
Administrative expenses . . . . . . . . . . . . . . . . . 1,500,000 1,410,000
Total operating expenses . . . . . . . . . . . . . . . . $ 3,500,000 $3,290,000
Income from operations . . . . . . . . . . . . . . . . . $ 1,150,000 $1,160,000
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . .150,000 140,000
$ 1,300,000 $1,300,000
Other expense (interest) . . . . . . . . . . . . . . . . . . 170,000 150,000
Income before income tax . . . . . . . . . . . . . . . $ 1,130,000 $1,150,000
Income tax expense . . . . . . . . . . . . . . . . . . . . . .230,000 225,000
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 900,000 $ 925,000
Stargel Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1.
20Y2 20Y1
Assets
Current assets:
Cash $500,000 $400,000
Marketable securities 1,010,000 1,000,000
Accounts receivable (net) 740,000 510,000
Inventories 1,190,000 950,000
Prepaid expenses 250,000 229,000
Total current assets $3,690,000 $3,089,000
Long-term investments 2,350,000 2,300,000
Property, plant, and equipment (net) 3,740,000 3,366,000
Total assets $9,780,000 $8,755,000
Liabilities
Current liabilities $900,000 $880,000
Long-term liabilities:
Mortgage note payable, 10% $200,000 $0
Bonds payable, 10% 1,500,000 1,500,000
Total long-term liabilities $1,700,000 $1,500,000
Total liabilities $2,600,000 $2,380,000
Required:
Determine the following measures for 20Y2, rounding to one decimal place, except dollar amounts which should be rounded to the nearest cent. Assume 365 days a year.
Return on total assets %
Return on stockholders’ equity %
Return on common stockholders’ equity %

Answers

Answer 1
Answer 1.

Working Capital = Current Assets - Current Liabilities
Working Capital = $36,90,000 - $900000
Working Capital = $27,90,000

Answer 2.

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $36,90,000 / $900000
Current Ratio = 4.1

7) Number days' sales in inventory = (Inventory/Cost of goods sold) * 365 days

=(11,90,000 / 53,50,000) * 365 days = 81.18 days approx

8) Ratio of fixed assets to long-term liabilities = Fixed Assets/Long Term Liabilities

=(2350000+3740000) / 1700000= 3.58 times

9) Ratio of liabilities to stockholders' equity = Total Liabilities/stockholders' equity

=26,00,000 / 71,80,000

=0.36211 times

10) Number of times interest charges are earned = Earnings Before Interest & Tax / Interest Expense

= 1300000 / 170000 = 7.64 times

11) Number of times preferred dividends are earned = Dividend on preferred stock/preferred stock

= 45000 / 500000

=0.09 times

12) Ratio of sales to assets = Net Sales (Total Sales-Sales Return)/Total Assets

= 10,000,000 / 9780000

= 1.022 times

13 ) Rate earned on total assets = Net Income/Average Total Assets(Opening+closing Total Assets)/2

=900000 /(8755000+ 97,80,000)/2

=900000/ 9267500

=0.09711 times or 9.711 %

14) Rate earned on stockholders' equity = Net Income/Average Stockholders' Equity(opening+closing stockholders' Equity)/2

=900,000/(6375000+7180000)/2

=900000/6777500

=0.132 or 13.27 %

15) Rate earned on common stockholders' equity=

(Net Income - Dividend on Preferred stock)/Average Common Stock(opening + closing common stockholders' equity)

=(900000-45000)/(500000+500000)/2

=855000/500000

=1.71 times

16. Earnings per share on common stock = (Net Income - Dividend on Preferred stock)/Common Stock(in numbers)

=(900000-45000)/100000

=8.55 times

17) Price-earnings ratio = Market Price per share/ Earnings per share

=119.70(given)/8.55

=14 times

18) Dividends per share of common stock = Dividend to common stock/common stock (in number)

=50000 / 100000

=0.5 times

19) Dividend yield = Dividends per share of common stock/Market Price per share

=(0.5 /119.70) * 100

= 0.835%

if you have any doubt comment in the comment box

Related Questions

Del Monty will receive the following payments at the end of the next three years: $8,000, $11,000, and $13,000. Then from the end of the 4th year through the end of the 10th year, he will receive an annuity of $14,000 per year. At a discount rate of 12 percent, what is the present value of all three future benefits

Answers

Answer: $$70,643

Explanation:

The payment from the 4th year to the 10th year is an annuity because it is constant.

The present value of an annuity is:

= Annuity * Present value interest factor of annuity, 12%, 7 years

= 14,000 * 4.5638

= $63,893.20

Present value of these:

= 8,000 / 1.12 + 11,000 / 1.12² + 13,000/1.12³ + 63,893.20 / 1.12³

= $70,643

Your father offers you a choice of $120,000 in 11 years or $48,500 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 11 percent, what is the present value of the $120,000

Answers

Answer:

$38,074

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 to 10 = 0

Cash flow in year 11 = $120,000

I = 11

PV = 38,074

To determine PV using a financial calculator take the following steps:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

Given the choice, i would choose $48,500 today.

A machine costs $5240 and produces benefits of $1000 at the end of each year for eight years. Assume an annual interest rate of 10%. Use engineering economics principals a.) What is the payback period in years

Answers

Answer:

5.24 YEARS

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = Amount invested / cash flow

5240 / 1000 = 5.24 YEARS

Suppose that in 2014, currency in circulation was $950 billion, required reserves were $60 billion, and excess reserves were $840 billion. At that time, the value of open market operations by the Federal Reserve was $70 billion. The monetary base was

Answers

Answer: $1,850 billion

Explanation:

The following were given in the question:

Currency in circulation = $950 billion

Required reserves = $60 billion

Excess reserves = $840 billion

Open market operations = $70 billion

The monetary base will be the value of all the currency in circulation plus the reserves that is held by the banks and this will be:

= $950billion + $60billion + $840billion

= $1,850 billion

An income statement under absorption costing includes which of the following: ______________

a. Direct materials
b. Direct labor
c. Variable overhead
d. Fixed overhead

Answers

Answer:

a. Direct materials

b. Direct labor

c. Variable overhead

d. Fixed overhead

Explanation:

The absorption costing is the costing in which the income statement should includes all types of production cost i.e. direct material cost, direct labor cost, variable overhead and the fixed overhead

So as per the given statement, all the four types of costing should be involved while preparing the income statement under the absorption costing

Hence, all 4 options should be considered

Tangerine, Inc. provides the following data: Surround, Inc. Comparative Balance Sheet Dec. 31, 20X9 Assets Current Assets: Cash and Cash Equivalents $29,000 Account Receivable, Net 31,000 Merchandise Inventory 53,000 Total Current Assets $113,000 Property, Plant, and Equipment, Net 120,000 Total Assets $233,000 Liabilities Current Liabilities: Accounts Payable $4000 Notes Payable 3000 Total Current Liabilities $7000 Long-term Liabilities 84,000 Total Liabilities $91,000 Stockholders' Equity Common Stock $30,000 Retained Earnings 112,000 Total Stockholders' Equity $142,000 Total Liabilities and Stockholders' Equity $233,000 Calculate the debt to equity ratio.

Answers

Answer:

The debt to equity ratio is 0.64.

Explanation:

The debt to equity ratio can be calculated using the following formula:

Debt to equity ratio = Total Liabilities / Stockholders' Equity ……………………. (1)

Where:

Total Liabilities = $91,000

Stockholders' Equity = $142,000

Substitute the relevant data into equation (1), we have:

Debt to equity ratio = $91,000 / $142,000 = 0.64

Therefore, the debt to equity ratio is 0.64.

The following information relating to a company's overhead costs is available.
Actual total variable overhead$73,000
Actual total fixed overhead$17,000
Budgeted variable overhead rate per machine hour$2.50
Budgeted total fixed overhead$15,000
Budgeted machine hours allowed for actual output 30,000
Based on this information, the total variable overhead variance is:_______.

Answers

Answer: $2,000 favorable

Explanation:

Total variable overhead variance = Budgeted variable overhead - Actual total variable overhead

Budgeted variable overhead = Budgeted machine hours allowed for actual output * Budgeted variable overhead rate per machine hour

= 30,000 * 2.50

= $75,000

Total variable overhead variance = 75,000 - 73,000

= $2,000 favorable

Favorable because the actual amount was less than the budgeted one.

The Nearside Co. just paid a dividend of $1.65 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. Investors require a return of 12 percent on the stock. a. What is the current price

Answers

Answer:

$24.7

Explanation:

The first step is to calculate D1

1.65(1+5/100)

1.65(1+0.05)

1.65(1.05)

=>1.73

Therefore the current price can be calculated as follows

= D1/required rate-growth rate

= 1.73/0.12-0.05

= 1.73/0.07

= 24.7

Hence the current price is $24.7

The Doodad Company purchases a machine for $400,000. The machine has an estimated residual value of $20,000. The company expects the machine to produce two million units. The machine is used to make 400,000 units during the current period. Use the information above to answer the following question. If the units-of-production method is used, the depreciation expense for this period is: A. $80,000. B. $400,000. C. $380,000. D. $76,000.

Answers

Answer: $76,000

Explanation:

Depreciation per unit = (Cost - Residual value) / Number of units expected to be produced

= (400,000 - 20,000) / 2,000,000

= $0.19 per unit

40,000 units were used this period so the depreciation is:

= 400,000 * 0.19

= $76,000

Cash Dividends King Tut Corporation issued 19,000 shares of common stock, all of the same class; 12,000 shares are outstanding and 7,000 shares are held as treasury stock. On December 1, 2019, King Tut's board of directors declares a cash dividend of $0.50 per share payable on December 15, 2019, to stockholders of record on December 10, 2019. Required: Prepare the appropriate journal entries for the (a) date of declaration, (b) date of record, and (c) date of payment. If no entry is required, choose "No entry required" and leave the amount boxes blank. (a) fill in the blank 2 fill in the blank 4 (b) fill in the blank 6 fill in the blank 8 (c) fill in the blank 10 fill in the blank 12

Answers

Answer:

King Tut Corporation

Journal Entries:

December 1, 2019

Debit Cash dividend $2,500

Credit Dividend Payable $2,500

To record the declaration of $0.50 per share payable on December 15, 2019, to stockholders of record on December 10, 2019.

December 10, 2019 No journal entry

December 15, 2019

Debit Dividend Payable $2,500

Credit Cash $2,500

To record the payment of dividends.

Explanation:

a) Data and Calculations:

Issued 19,000 shares of common stock, all of the same class;

12,000 shares are outstanding and

7,000 shares are held as treasury stock.

December 1, 2019, Cash dividend $2,500 Dividend Payable $2,500

$0.50 per share payable on December 15, 2019, to stockholders of record on

December 10, 2019 No journal entry

December 15, 2019, Dividend Payable $2,500 Cash $2,500

If you are interested in working for a specific company, what type of job site should you look at for opening?
a. Geographic specific site
b. Industry specific site
C. Company site
d. General job site
Please select the best answer from the choices provided
A
B
0 0 0 0
C
D
Save and Exit
Next
Submit
retum

Answers

Answer:

c

Explanation:

if you got to the company site and go under careers, it will show you the jobs with descriptions they have available

An asset is purchased on January 1 for $44,700. It is expected to have a useful life of five years after which it will have an expected residual value of $6,000. The company uses the straight-line method. If it is sold for $32,000 exactly two years after it is purchased, the company will record a: Multiple Choice

Answers

Answer:

Gain of $2,780

Explanation:

Calculation to determine what The company will record If it is sold for $32,000 exactly two years after it is purchased

First step is to calculate the Annual depreciation expense using this formula

Annual depreciation expense = (Cost − Residual value) × (1 ÷ Useful life)

Let plug in the formula

Annual depreciation expense = ($44,700 − $6,000) × (1 ÷ 5)

Annual depreciation expense =$38,700× (1 ÷ 5)

Annual depreciation expense =$ 7,740

Second step is to calculate the Accumulated depreciation using this formula

Accumulated depreciation = Year 1 depreciation expense + Year 2 depreciation expense

Let plug in the formula

Accumulated depreciation = $7,740 +$7,740

Accumulated depreciation = $15,480

Now let calculate the Gain (loss) on disposal

Using this formula

Gain (loss) on disposal = Proceeds from sale − (Cost − Accumulated Depreciation at time of sale)

Let plug in the formula

Gain (loss) on disposal = $32,000 − ($44,700 − $15,480)

Gain (loss) on disposal =$32,000-$29,220

Gain (loss) on disposal=$2,780

Therefore If it is sold for $32,000 exactly two years after it is purchased, the company will record a GAIN of $2,780

Billy Bob Company manufactures fine furniture and grandfather clocks. Billy Bob has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following is an indirect cost, assuming the cost object is the Clock Department?
a) Salary of the clock production supervisor
b) Depreciation on the company's factory building
c) Depreciation on clock-making equipment.
d) All of the answers are correct

Answers

Answer:

Billy Bob Company

Indirect Costs are:

d) All of the answers are correct

Explanation:

The indirect costs cannot be directly identified with a single grandfather clock.  They are not direct costs but are allocated to the Clock Department. For example, Billy Bob Company incurs these indirect costs for producing grandfather clocks: the Clock Department's supervisor's salary expenses, Depreciation on factory building and clock-making equipment, and other indirect materials and labor.

Enviro Company issues 10.50%, 10-year bonds with a par value of $430,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 7.50%, which implies a selling price of 127.875. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 127.875. what are the issuer’s cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date?

Answers

Answer:

1.

549,862.5

2.

$331,637.5

3.

$16,581.87

Explanation:

1.

Cash proceeds = Par Value of the bond x Price ratio to par value

Cash proceeds = $430,000 x 127.875%

Cash proceeds = $549,862.5

2.

Bond Interest expense = Total Coupon payment - Premium on bond

Bond Interest expense = ( $430,000 x 10.50% x 10 ) - ( $549,862.5 - $430,000 )

Bond Interest expense = $451,500 - $119,862.5

Bond Interest expense = $331,637.5

3.

Bond Interest expense = Coupon Payment - Premium on Bond amortization

Bond Interest expense = ( $430,000 x 10.5% x 6/12 ) - ( ( $549,862.5 - $430,000 ) / ( 10 x 2 ) )

Bond Interest expense = $22,575 - $5,993.13

Bond Interest expense = $16,581.87

The accounting records of Jamaican Importers, Inc., at January 1, 2021, included the following: Assets: Investment in IBM common shares $ 1,345,000 Less: Fair value adjustment (145,000) $ 1,200,000 No changes occurred during 2021 in the investment portfolio.
Prepare appropriate adjusting entry(s) at December 31, 2021, assuming the fair value of the IBM common shares was:_____.
1, $ 1,175,000
2, $ 1,275,000
3, $ 1,375,00

Answers

Answer: See explanation

Explanation:

The appropriate adjusting entry(s) at December 31, 2021, given the fair value of the IBM common shares are represented below:

1. 31, December 2021

Dr Unrealized holding gain or loss - NI $25,000

Cr To Fair value adjustment $25,000

(To record adjustment to fair value)

2. 31, December 2021

Dr Fair value adjustment $75,000

Cr To Unrealized holding gain or loss - NI $75,000

(To record adjustment to fair value)

3. 31, December 2021

Dr Fair value adjustment $175,000

Cr To Unrealized holding gain or loss - NI $175,000

(To record adjustment to fair value)

Sanchez Company's output for the current period was assigned a $400,000 standard direct labor cost. The direct labor variances included a $10,000 unfavorable direct labor rate variance and a $4,000 favorable direct labor efficiency variance. What is the actual total direct labor cost for the current period

Answers

Answer:

$406,000

Explanation:

Calculation to determine the actual total direct labor cost for the current period

Using this formula

Actual direct labor cost=Standard direct labor cost + unfavorable rate variance - favorable efficiency variance

Let plug in the formula

Actual direct labor cost=$400,000 + $10,000 - $4,000

Actual direct labor cost= $406,000

Therefore the actual total direct labor cost for the current period is $406,000

The Can Division of Sheridan Company manufactures and sells tin cans externally for $0.70 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.07, respectively. The Packaging Division wants to purchase 50,000 cans at $0.31 a can. Selling internally will save $0.03 a can. Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept?
a) $0.31
b) $0.21
c) $0.24
d) $0.28

Answers

Answer:

b) $0.21

Explanation:

Calculation to determine the minimum transfer price it should accept.

Using this formula

Minimum transfer price = Variable cost per unit - saving cost per unit

Let plug in the formula

Minimum transfer price = $0.24 - $.03

Minimum transfer price = $0.21

Therefore the minimum transfer price it should accept is $0.21

The records of the Dodge Corporation show the following results for the most recent year:

Sales (16,000 units) $256,000
Variable expenses $160,000
Net operating income $32,000

Given the provided data, identify the contribution margin.

Answers

Answer:

unitary contribution margin= $6

Explanation:

Giving the following information:

Sales (16,000 units) $256,000

Variable expenses $160,000

First, we need to calculate the unitary selling price and unitary variable cost:

Selling price= 256,000 / 16,000= $16

Unitary variable cost= 160,000 / 16,000= $10

Now, the unitary contribution margin:

unitary contribution margin= selling price - unitary variable cost

unitary contribution margin= 16 - 10

unitary contribution margin= $6

An important assumption that is made when constructing a supply schedule is only price and quantity matter in determining supply. supply is too important to be left to the marketplace. demand has a positive slope. firms always want to sell a certain amount of a product. all other determinants of supply are held constant.

Answers

Answer:

only price and quantity matter in determining supply

all other determinants of supply are held constant

Explanation:

At the time of constructing the supply schedule, only price and quantity should be considered and other factors should remain the same because the factors that impacts the supply other than the price so it shifted the supply curve but when only the price changed so there should be the movement also law of supply represent the direct relationship between tfhe price and the supply

The difference between domestic and international marketing lies in the different concepts of marketing.

Answers

Answer:

The difference between domestic and international marketing lies in the different concepts of marketing. An international marketer must deal with at least two levels of uncontrollable uncertainty. ... The foreign policies of a country have a direct effect on a firm's international marketing success

Direct labor variances Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $22.00 per hour. 15,000 units used 61,900 hours at an hourly rate of $19.85 per hour. What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct labor rate variance $ Favorable
b. Direct labor time variance $ Unfavorable
c. Direct labor cost variance $ Favorable

Answers

Answer:

Results are below.

Explanation:

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (22 - 19.85)*61,900

Direct labor rate variance= $133,085

Now, the direct labor time (efficiency variance):

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (45,000 - 61,900)*22

Direct labor time (efficiency) variance= $371,800 unfavorable

Standard quantity= 15,000*3= 45,000

Finally, the total direct labor cost variance:

Total direct labor cost variance= Direct labor rate variance - Direct labor time (efficiency) variance

Total direct labor cost variance= 133,085 - 371,800

Total direct labor cost variance= $238,715 unfavorable

Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are: M N OUnit sales price$12 $10 $11Unit variable costs 9 8 9Total fixed costs are $585,000. The selling price per composite unit for the current sales mix (rounded to the nearest cent) is:

Answers

Answer:

Selling price per composite unit= $11.3

Explanation:

Giving the following information:

Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2.

Unit price and cost data are: M N OUnit sales price$12 $10 $11

First, we need to calculate the sales proportion for each product:

M= 3/6= 0.5

N= 1/6= 0.17

O= 2/6= 0.33

Now, the selling price per composite unit:

Selling price per composite unit= (0.5*12) + (0.17*10) + (0.33*11)

Selling price per composite unit= $11.3

outline the various challenges that you are likely to face during the implementation of a dam. ​

Answers

Answer:

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If the government changed the per-unit tax from $5.00 to $2.50, then the price paid by buyers would be $7.50, the price received by sellers would be $5, and the quantity sold in the market would be 1.5 units. Compared to the original tax rate, this lower tax rate would

Answers

Answer: Decrease government revenue and decrease deadweight loss from the tax.

Explanation:

Decrease gov rev and decrease deadweight loss from the tax.

At AB, the government revenue will be:

= Quantity × Tax rate

= 1 × 5

= 5

The deadweight loss will be:

Deadweight Loss= 0.5 × Change in quantity × Change in Price

= 0.5 × (9-4) × (2-1)

= 0.5 × 5 × 1

= 2.5

At CD,

the government revenue will be:

= 1.5 × 2.5

= 3.75

The deadweight loss will be:

= 0.5 × (7.5-5) × (2-1.5)

= 0.5 × 2.5 × 0.5

= 0.625

Based on the calculation above, both the government revenue and the deadweight loss decreases.

Last year Aft charged $1,220,293 Depreciation on the Income Statement of Andrews. If early this year Aft purchased a new depreciable asset, the effect on Andrews's financial statements would be (all other items remaining equal):

Answers

Answer: No impact on Net Cash from operations.

Explanation:

There are three main sections in the cash flows statement and these are the operating activities which includes the cash transactions which has an effect on the net income; the investing activites which are the cash transactions that has to do with non-current assets and the financing activities which are the cash transactions that involves the non current liabilities and equity.

It should be noted that the purchase of the long-term assets is an investing activities. Therefore, the item will be recorded in the Investing activities in the cash flow statement.

There will be a reduction in cash while there'll be an increase in the fixed. The income statement is also affected due to the fact that there will be an increase in the depreciation expense that's recorded.

Therefore, there'll be no impact on the net cash from operations.

On January 1, 2019, Stronger Industries issued $480,000 of 9%, five-year bonds that pay interest semiannually on June 30 and December 31. They are issued at $499,483 and their market rate is 8% at the issue date. After recording the entry for the issuance of the bonds, Bonds Payable had a balance of $480,000 and Premium on Bonds Payable had a balance of $19,483. Stroger uses the effective interest bond amortization method. The first semiannual interest payment was made on June 30, 2019. Complete the necessary journal entry for the interest payment date of June 30, 2019 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answers

Answer:

Journal Entry to record the first interest payment

June 30, 2019

Dr. Interst Expense $19,979.32

Dr. Premium on Bond $1,620.68

Cr. Cash $21,600

Explanation:

First, we need to calculate the premium on bond amortization as follow

Premium on bond amortization = Coupon Payment - Interest Expense

Premium on bond amortization = ( $480,000 x 8% x 6/12 ) - ( $499,483  x 8% x 6/12 )

Premium on bond amortization = $21,600 - $19,979.32

Premium on bond amortization = $1,620.68

Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year. Its assets at the beginning of the year were $400,000. At the end of the year assets were worth $450,000. Calculate its return on assets.

Answers

Answer:

See below

Explanation:

Given the above information

Return on assets = Net income / Average total assets

Net income = $98,000

Average total assets = ($409,000 + $459,000) / 2 = $434,000

= $98,000 / $434,000

= 22.58%

Therefore, return on assets = 22.58%

Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $178,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $36,562.
What is its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 13%.)
Internal rate of return

Answers

Answer: 10%

Explanation:

You can use Excel to solve for this.

The investment will be in negative as shown below.

Input the increase in net annual cash flows 7 times to represent 7 years.

IRR = 9.9999%

= 10%

A firm is considering a project with annual cash flows of $300,000. The project would have a five-year life, and the company uses a discount rate of 12%. What is the amount at which the firm would be indifferent between accepting or rejecting the investment

Answers

Answer:

$1,081,434

Explanation:

At indifference point, the present value of cash outflow equals  present value of cash inflow.

Present value of cash inflow = Annual cash inflow * PV annuity factor (12%, 5 years)

Present value of cash inflow = $300,000*3.60478

Present value of cash inflow = $1,081,434

So, the amount at which the firm would be indifferent between accepting or rejecting the investment is $1,081,434.

Collegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,500 of indirect materials and $11,800 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:

Job 301
Direct materials $10,000
Direct labor 8,000
Factory overhead 6,000
Total $24,000

Job 302
Direct materials $20,000
Direct labor 17,000
Factory overhead 12,750
Total $49,750


Job 303
Direct materials $24,000
Direct labor 18,000
Factory overhead â
Job 304
Direct materials $14,000
Direct labor 12,000
Factory overhead â


Required:
Journalize the Jan. 31 summary entries

.

Answers

Answer:

Collegiate Publishing Inc.

Journal Entries:

Debit Finished Goods Inventory $73,750

Credit Work in Process:

Job 301 $24,000

Job 302 $49,750

To record the transfer of completed jobs to Finished Goods Inventory.

Debit Work in Process:

Job 303 $24,000

Job 304 $14,000

Credit Raw materials $38,000

To record raw materials used in production.

Debit Work in Process:

Job 303 $18,000

Job 304 $12,000

Credit Payroll $30,000

To record direct labor incurred in production.

Debit Manufacturing Overhead $19,300

Credit Raw materials $7,500

Credit Payroll $11,800

To record manufacturing overhead costs for indirect materials and labor.

Explanation:

a) Data and Calculations:

Indirect materials = $7,500

Indirect labor = $11,800

Job Cost Sheets:   Job 301     Job 302    Job 303    Job 304

Direct materials     $10,000   $20,000    $24,000   $14,000

Direct labor               8,000       17,000       18,000      12,000

Factory overhead    6,000       12,750

Total                    $24,000    $49,750

Summary Entries:

Finished Goods Inventory $73,750 Work in Process: Job 301 $24,000 Job 302 $49,750

Work in Process: Job 303 $24,000 Job 304 $14,000 Raw materials $38,000

Work in Process: Job 303 $18,000 Job 304 $12,000 Payroll $30,000

Manufacturing Overhead $19,300 Raw materials $7,500 Payroll $11,800

The Jan. 31 summary journal entries are:

a. Dr Work in process $68,000

($10,000+$20,000+$24,000+$14,000)

Dr Factory Overhead $       7,500  

Cr      Materials  $75,500

($68,000+$7,500)

(To record material used)  

b. Dr Work in process $55,000

($8,000+$17,000 +$18,000+$12,000)

Dr Factory Overhead $11,800  

Cr      Wages Payable  $66,800

($55,000+$11,800)

(To record labor used)  

c. Dr Work in process $41,250

($55,000×75%)  

Cr    Factory Overhead  $41,250

(To record overhead applied)  

 

Job 301:( $6,000/$8,000=75%)

Job 302:($12,750/$17,000=75%)

d. Dr Finished Goods $73,750  

Cr      Work in process  $73,750

($24,000+$49,750)

(To record goods completed)

Learn more here:

https://brainly.com/question/15058578

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