(Solved):Q: Good morning 22 …

Question

Good morning

22 abril 2020

P7.4 (LO 3) (Bad-Debt Reporting) From inception of operations to December 31, 2020, Fortner Corporation provided for uncollectible accounts receivable under the allowance method. The provisions
are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to
the allowance account, and no year-end adjustments to the allowance account were made. Fortner's usual credit terms are net 30 days.
(CMA adapted)
The balance in Allowance for Doubtful Accounts was $130,000 (Cr.) at January 1, 2020. During 2020, credit sales totaled $9,000,000, the provision for doubtful accounts was determined to be $180,000,
$90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Fortner installed a computer system in November 2020, and an aging of accounts receivable
was prepared for the first time as of December 31, 2020. A summary of the aging is as follows.
Classification by Month
of Sale
Balance in
Each Category
Estimated %
Uncollectible
November-December 2020
$1,080,000
650,000
2%
July-October
10%
January-June
Prior to 1/1/20
25%
80%
420,000
150.000
$2,300,000
Based on the review of collectibility of the account balances in the "prior to 1/1/20" aging category, additional receivables totaling $60,000 were written off as of December 31, 2020. The So% uncollectible
estimate applies to the remaining $90,000 in the category. Effective with the year ended December 31, 2020, Fortner adopted a different method for estimating the allowance for doubtful accounts at the
amount indicated by the year-end aging analysis of accounts receivable.
Instructions
a. Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2020. Show supporting computations in good form. (Hint: In computing the 12/31/20
allowance, subtract the $60,00O write-off.)
b. Prepare the journal entry for the year-end adjustment to Allowance for Doubtful Accounts balance as of December 31, 2020.

P7.4 (LO 3) (Bad-Debt Reporting) From inception of operations to December 31, 2020, Fortner Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Fortner's usual credit terms are net 30 days. (CMA adapted) The balance in Allowance for Doubtful Accounts was $130,000 (Cr.) at January 1, 2020. During 2020, credit sales totaled $9,000,000, the provision for doubtful accounts was determined to be $180,000, $90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Fortner installed a computer system in November 2020, and an aging of accounts receivable was prepared for the first time as of December 31, 2020. A summary of the aging is as follows. Classification by Month of Sale Balance in Each Category Estimated % Uncollectible November-December 2020 $1,080,000 650,000 2% July-October 10% January-June Prior to 1/1/20 25% 80% 420,000 150.000 $2,300,000 Based on the review of collectibility of the account balances in the "prior to 1/1/20" aging category, additional receivables totaling $60,000 were written off as of December 31, 2020. The So% uncollectible estimate applies to the remaining $90,000 in the category. Effective with the year ended December 31, 2020, Fortner adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. Instructions a. Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2020. Show supporting computations in good form. (Hint: In computing the 12/31/20 allowance, subtract the $60,00O write-off.) b. Prepare the journal entry for the year-end adjustment to Allowance for Doubtful Accounts balance as of December 31, 2020.

(AICPA adapted)
P7-5 (LO 3) (Bad-Debt Reporting) Presented below is information related to the Accounts Receivable accounts of Gulistan Inc. during the current year 2020.
1. An aging schedule of the accounts receivable as of December 31, 2020, is as follows.
Age
Under 60 days
60-90 days
% to Be Applied after
Correction Is Made
196
3%
Net Debit Balance
$172,342
136,490
39,924
23.644
69%6
91-120 days
Over 120 days
S3-700 definitely uncollectible;
estimated remainder
$372.400
uncollectible is 25%
*The $3.240 write-off of receivables is related to the 91-to-120 day category.
2. The Accounts Receivable control account has a debit balance of $372,40oo on December 31, 2020.
3. Two entries were made in the Bad Debt Expense account during the year: (1) a debit on December 31 for the amount credited to Allowance for Doubtful Accounts, and
(2) a credit for $3,240 on November 3, 2020, and a debit to Allowance for Doubtful Accounts because of a bankruptcy.
4. Allowance for Doubtful Accounts is as follows for 2020.
Allowance for Doubtful Accounts
Jan. 1
Dec. 31
Beginning balance
5% of $372,400
8,750
18,620
Nov. 3
Uncollectible accounts
written off
3,240

(AICPA adapted) P7-5 (LO 3) (Bad-Debt Reporting) Presented below is information related to the Accounts Receivable accounts of Gulistan Inc. during the current year 2020. 1. An aging schedule of the accounts receivable as of December 31, 2020, is as follows. Age Under 60 days 60-90 days % to Be Applied after Correction Is Made 196 3% Net Debit Balance $172,342 136,490 39,924 23.644 69%6 91-120 days Over 120 days S3-700 definitely uncollectible; estimated remainder $372.400 uncollectible is 25% *The $3.240 write-off of receivables is related to the 91-to-120 day category. 2. The Accounts Receivable control account has a debit balance of $372,40oo on December 31, 2020. 3. Two entries were made in the Bad Debt Expense account during the year: (1) a debit on December 31 for the amount credited to Allowance for Doubtful Accounts, and (2) a credit for $3,240 on November 3, 2020, and a debit to Allowance for Doubtful Accounts because of a bankruptcy. 4. Allowance for Doubtful Accounts is as follows for 2020. Allowance for Doubtful Accounts Jan. 1 Dec. 31 Beginning balance 5% of $372,400 8,750 18,620 Nov. 3 Uncollectible accounts written off 3,240

(Solved):Q: Newly formed S&J…

Question
Newly formed S&J Iron Corporation has 121,000 shares of $6 par common stock authorized. On March 1, Year 1, S&J Iron issued 9,000
shares of the stock for $11 per share. On May 2, the company issued an additional 16,500 shares for $20 per share. S&J Iron was not
affected by other events during Year 1.
Required
a. Record the transactions in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity
(OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element was not affected by the event.
Balance Sheet
Income Statement
Expense
Cash Flow
Stockholders' Equity
Common
Stock
Revenue
Net Income
Assets
Cash
Liabilities
PIC in
Excess
Event
March 1
May 2

Newly formed S&J Iron Corporation has 121,000 shares of $6 par common stock authorized. On March 1, Year 1, S&J Iron issued 9,000 shares of the stock for $11 per share. On May 2, the company issued an additional 16,500 shares for $20 per share. S&J Iron was not affected by other events during Year 1. Required a. Record the transactions in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element was not affected by the event. Balance Sheet Income Statement Expense Cash Flow Stockholders' Equity Common Stock Revenue Net Income Assets Cash Liabilities PIC in Excess Event March 1 May 2

(Solved):Q: Given the follow…

Question

Given the following:

 

  Number
purchased
Cost
per unit
Total
January 1 inventory 40 $4 $160      
April 1 60 7 420      
June 1 50 8 400      
November 1 55 9 495      
  205   $1,475      
 

A.  Calculate the cost of ending inventory using the weighted-average method (ending inventory shows 61 units). (Round the "average unit cost" and final answer to the nearest cent.)

Cost of ending inventory is:

 

B. Calculate the cost of goods sold using the weighted-average method.(Round your intermediate calculations and final answer to the nearest cent.)

Cost of goods sold is:

(Solved):Q: Margie Johnson i…

Question
Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The company is under pressure from investors to increase earnings, and the president of the company expects the accounting department to “make this happen.” Margie’s boss, who has been a mentor to her, is concerned that if earnings do not increase, he will be terminated. Shortly after the end of the fiscal year, the company performs a physical count of the inventory. When Margie compares the physical count to the balance in the inventory account, she finds a significant amount of inventory shrinkage. The amount is so large that it will result in a significant drop in earnings this period. Margie’s boss asks her not to make the adjusting entry for shrinkage this period. He assures her that they will get “caught up” on shrinkage in the next period, after the pressure is off to reach this period’s earnings goal. Margie’s boss asks her to do this as a personal favor to him.
What should Margie do in this situation? Why?

(Solved):Q: Compute the annu…

Question

Compute the annual pretax operating income, in U.S. dollars, of each division under the following transfer-pricing methods: (a) 150% of full cost and (b) market price

Multinational transfer pricing, global tax minimization. Express Grow Inc., based in Ankeny,
lowa, sells high-end fertilizers. Express Grow has two divisions:
- North Italy mining division, which mines potash in northern Italy
- U.S. processing division, which uses potash in manufacturing top-grade fertilizer
The processing division's yield is 50%: It takes 2 tons of raw potash to produce 1 ton of top-grade fertilizer.
Although all of the mining division's output of 8,000 tons of potash is sent for processing in the United States,
there is also an active market for potash in Italy. The foreign exchange rate is 0.80 Euro = $1 U.S. The fol-
lowing information is known about the two divisions:
Page Layout
Data
Home
Insert
Formulas
Review
A
North Italy Mining Division
2 Variable cost per ton of raw potash
3 Fixed cost per ton of raw potash
4 Market price per ton of raw potash
5 Tax rate
56
EURO
EURO
96
256
EURO
30%
U.S. Processing Division
8 Variable cost per ton of fertilizer
9 Fixed cost per ton of fertilizer
10 Market price per lon of fertilizer
11 Тах rate
43
U.S. dollars
U.S. dollars
1,190 US. dollars
115
35%

Multinational transfer pricing, global tax minimization. Express Grow Inc., based in Ankeny, lowa, sells high-end fertilizers. Express Grow has two divisions: - North Italy mining division, which mines potash in northern Italy - U.S. processing division, which uses potash in manufacturing top-grade fertilizer The processing division's yield is 50%: It takes 2 tons of raw potash to produce 1 ton of top-grade fertilizer. Although all of the mining division's output of 8,000 tons of potash is sent for processing in the United States, there is also an active market for potash in Italy. The foreign exchange rate is 0.80 Euro = $1 U.S. The fol- lowing information is known about the two divisions: Page Layout Data Home Insert Formulas Review A North Italy Mining Division 2 Variable cost per ton of raw potash 3 Fixed cost per ton of raw potash 4 Market price per ton of raw potash 5 Tax rate 56 EURO EURO 96 256 EURO 30% U.S. Processing Division 8 Variable cost per ton of fertilizer 9 Fixed cost per ton of fertilizer 10 Market price per lon of fertilizer 11 Тах rate 43 U.S. dollars U.S. dollars 1,190 US. dollars 115 35%

(Solved):Q: Gordon Chemicals…

Question
Gordon Chemicals Company acquires a delivery truck at a cost of $25,000 on January 1, 2017. The truck is expected to have a salvage value of $4,000 at the end of its 3-year useful life.
Compute annual depreciation for the first and second years using the straight-line method. (Round answers to 0 decimal places, e.g. 125.)
First Year
Second Year
Annual depreciation under straight-line method

Gordon Chemicals Company acquires a delivery truck at a cost of $25,000 on January 1, 2017. The truck is expected to have a salvage value of $4,000 at the end of its 3-year useful life. Compute annual depreciation for the first and second years using the straight-line method. (Round answers to 0 decimal places, e.g. 125.) First Year Second Year Annual depreciation under straight-line method

(Solved):Q: Amos, Inc. uses …

Question
Amos, Inc. uses a standard cost system with the following labor standards for one unit of product: standard hours 0.2 and standard wage rate $10. During January, Amos incurred 3,415
hours of direct labor and paid $33,606 in wages in production of 16,600 units.
Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable.
Direct labor rate variance
Direct labor efficiency variance $
Click if you would like to Show Work for this question: Open Show.Work

Amos, Inc. uses a standard cost system with the following labor standards for one unit of product: standard hours 0.2 and standard wage rate $10. During January, Amos incurred 3,415 hours of direct labor and paid $33,606 in wages in production of 16,600 units. Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable. Direct labor rate variance Direct labor efficiency variance $ Click if you would like to Show Work for this question: Open Show.Work

(Solved):Q: A city engineer …

Question

A city engineer must find the capitalizd cost of perpetual service from a water plant. A storage tank that costs $40,000 is needed now. In ten years, a second $60,000 tank will be needed. At that time, a $7000 pumping system with life of eight years will be installed. Pump maintenance and operation costs are $800 the first year, $900 the second, and increases by $100 each year for the eight-year life. There is no salvage value. Use 10% to find the capitalized cost. 

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