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Flintlnc. provided the following information for the year 2017. Retained earnings, January 1, 2017 $ 589,400 Administrative expenses 246,000Selling expenses 307,200 Sales revenue 1,812,200Cash dividends declared 83,000Cost of goods sold 821,500Loss on discontinued operations 78,200Rent revenue 40,200Unrealized holding gain on available-for-sale securities 16,900Income tax applicable to continuing operations 192,700 Income tax benefit applicable to loss on discontinued operations 43,010Income tax applicable to unrealized holding gain on available-for-sale securities 2,000 1. Prepare a single-step income statement for 2017. Shares outstanding during 2017 were 100,000. (Round earnings per share to 2 decimal places, e.g. $1.48.) 2. Prepare aretained earning statement for 2017. Shares outstanding for 2017 were 100000.
On December 31, 2020, Reagan Inc. signed a lease with Silver Leasing Co. for some equipment having a seven-year useful life. The lease payments are made by Reagan annually, beginning at signing date. Title does not transfer to the lessee, so the equipment will be returned to the lessor on December 31, 2026. There is no purchase option, and Reagan guarantees a residual value to the lessor on termination of the lease. Reagan's lease amortization schedule appears below: Decrease in OutstandingDec. 31 Payments Interest Balance Balance 2020 $410,442 2020 $74,700 $74,700 335,742 2021 $74,700 $20,145 54,555 281,187 2022 $74,700 16,871 57,829 223,358 2023 $74,700 13,401 61,299 162,059 2024 $74,700 9,724 64,976 97,083 2025 $74,700 5,825 68,875 28,208 2026 $29,900 1,692 28,208 0 What is the amount of residual value guaranteed by Reagan to the lessor?
Lovely Lotion Inc. produces three different lotions: hand, body, and foot. The lotions are produced jointly in a mixing process that costs a total of $250 per batch. At the split-off point, one batch produces 80, 40, and 25 bottles of hand, body, and foot lotion, respectively. After the split-off point, hand lotion is sold immediately for $2.50 per bottle. Body lotion is processed further at an additional cost of $0.25 per bottle and then sold for $5.75 per bottle. Foot lotion is processed further at an additional cost of $0.85 per bottle and then sold for $4.00 per bottle. Assume that body and foot lotion could be sold at the split-off point for $3.00 and $3.20 per bottle, respectively. 1. Using the market value at split-off method, allocate the joint costs of production to each product. 2. A lotion manufacturing company produces three types of lotions. After the split-off point the company continues to sell the body lotion and makes $0.25 profit per bottle. The foot lotion generates $0.05 loss per bottle. Which lotion should be continued after the split-off point? A. Hand lotion.B. Body lotion.C. Foot lotion.D. Body and foot lotion.3. Allocate the joint costs of production to each product using the net realizable value method.
Dales Business Services experienced the following events during its first year of operations:1. Acquired $20,000 cash from the issue of common stock.2. Borrowed $12,000 cash from First Bank.3. Paid $5,000 cash to purchase land.4. Received $25,000 cash for providing boarding services.5. Acquired an additional $5,000 cash from the issue of common stock.6. Purchased additional land for $4,000 cash.7. Paid $10,000 cash for salary expense.8. Signed a contract to provide additional services in the future.9. Paid $1,200 cash for rent expense.10. Paid a $1,000 cash dividend to the stockholders.11. Determined the market value of the land to be $18,000 at the end of the accounting period.Required:Classify each event as an asset source, use, or exchange transaction or as not applicable (NA).
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $19 1,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Debit Credit Debit Credit Cash $94,000 $39,000 Accounts Receivable 53,000 58,000Inventory 188,000 108,000Land 92,000 34,000Buildings and Equipment 494,000 161,000 Investment in Sword Company 217,000 Cost of Goods Sold 494,000 257,000 Depreciation Expense 24,000 14,000 Other Expenses 74,000 74,000Dividends Declared 56,000 26,000Accumulated Depreciation $151,000 $70,000Accounts Payable 64,000 28,000Mortgages Payable 189,000 141,000Common Stock 294,000 45,000Retained Earnings 348,000 84,000Sales 685,000 403,000Income from Sword Company Prince Corporation 55,000 $1,786,000 $1,786,000 $771,000 $771,000Additional Information 1. On January 1, 20X7, Lime reported net assets with a book value of $150,000. A total of $20,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7. 2. Lime's depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment. 3. Jersey used the equity method in accounting for its investment in Lime. 4. Detailed analysis of receivables and payables showed that Sword owed Prince $23,000 on December 31, 20x7.Required:Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for 20x7
The following balance sheet for the Hubbard Corporation was prepared by the company:HUBBARD CORPORATIONBalance SheetAt December 31, 2016 AssetsBuildings $760,000 Land 280,000 Cash 70,000 Accounts receivable (net) 140,000 Inventories 260,000 Machinery 290,000 Patent (net) 110,000 Investment in marketable equity securities 80,000 Total assets $1,990,000 Liabilities and Shareholders' EquityAccounts payable $225,000 Accumulated depreciation 265,000 Notes payable 520,000 Appreciation of inventories 90,000 Common stock, authorized and issued110,000 shares of no par stock 440,000 Retained earnings 450,000 Total liabilities and shareholders' equity $1,990,000 Additional information:1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $60,000 but, due to a significant increase in market value, is listed at $140,000. The increase in the land account was credited to retained earnings.2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $30,000 of which will be sold in the coming year. The remainder will be held indefinitely.3. Notes payable are all long-term. However, a $200,000 note requires an installment payment of $50,000 due in the coming year.4. Inventories are recorded at current resale value. The original cost of the inventories is $170,000.Required:Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2016.
Hilary sells bottled water from a small stand by the beach. On the last day of summer vacation, many people are on the beach, and Hilary realizes that she can make a lot more money this day if she hires someone to walk up and down the beach selling water. She finds a college student named Edison and makes him the following offer: They'll each sell water all day and split their earnings (revenue minus the cost of water) equally at the end of the day. Hilary knows that if they both work hard, Edison will earn $90 on the beach and Hilary will earn $240 at her stand, so they will each take home half of their total revenue: If Edison shirks, he'll generate only $60 in earnings. Hilary does not know that Edison estimates his personal cost (or disutility) of working hard as opposed to shirking at $30. Once out of Hilary's sight, Edison faces a dilemma: work hard (put in full effort) or shirk (put in low effort).In terms of Edison's total utility, it is worse for him to ____(work hard or shirk). Taking into account the loss in utility that working hard brings to Edison, Hilary and Edison together ___ (are or are not) better off if Edison shirks instead of working hard.Hilary knows Edison will shirk if unsupervised. She considers hiring her good friend Carrie to keep an eye on Edison. The most Hilary should be willing to pay Carrie to supervise Edison, assuming supervision is sufficient to encourage Edison to work hard, is ____ .a. 55.b. 30.c. 25.d. 20.It turns out that Hilary's friend Carrue is unavilable that day, so Hilary cannot find a reliable person to watch Edison. Which of the following arrangements will ensure that Edison works hard without making Hilary any worse off than she is when Edison shirks?A. Pay Edison $20, regardless of how many bottles of water he sells.B. Allow Edison to keep 75% of the revenue from the bottles of water he sells instead of 50%.C. Allow Edison to keep 57% of the revenue from the bottles of water he sells instead of 50%.D. Make Edison promise to work hard.