Suppose you are a part of a group of students from a prominent university…
SOLUTION AT Australian Expert Writers
Suppose you are a part of a group of students from a prominent university and were sent out as a team to work with a leading merchandizing company as a part of a work experience program. The team having been introduced to the general manger was told that the Accountant who normally prepares the financial statements has suddenly resigned and there is no one available to prepare the company’s financial statements which are now due. As aspiring university students, you and your group members have expressed an interest in taking on the task. As a group, you are required to collaborate and analyse the problem at hand then apply the accrual basis of accounting in the preparation of the company’s financial statements. The problem to be resolved:The following trial balance was extracted from the books of Columbus Ltd at December 31, the end of the company’s financial year. The company is owned by John Columbus and is in the business of buying and farming supplies.Trial Balance as at December 31, 2018The following additional information is available at December 31, 2018: (i) Insurance of $450,000 was paid on May 1, 2018 for the 10-months to February 2019.(ii) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $100,000.(iii) The computer equipment was acquired on March 1, 2018 and is being depreciated over 10 years on the double-declining method of depreciation, down to a residue of $60,000.(iv) Wages earned by employees NOT yet paid amounted to 15,000 at December 31, 2018.(v) A physical count of inventory at December 31, reveals $180,000 worth of inventory on hand.(vi) At December 31, $140,000 of the previously unearned sales revenue had been earned.(vii) The aging of the Accounts Receivable schedule at December 31 indicated that the estimated uncollectible on account receivable should be $45,000.REQUIRED:a) Prepare the necessary adjusting journal entries on December 31. [Narrations are not required] b) Prepare Columbus Ltd multiple-step income statement for the year ended December 31, 2018. c) Prepare Columbus Ltd statement of owner’s equity for the year ended December 31, 2018. d) Prepare Columbus Ltd classified balance sheet at December 31, 2018. e) Prepare the closing entriesf) Prepare -closing trial balance
Problem 3-3Hint: Latigoe Inc.Balance Sheet For the period ended 12/31/X8 ($000) Latigoe Inc. has the following financial statements for 20X8.
Problem 3-3Hint: Latigoe Inc.Balance Sheet For the period ended 12/31/X8 ($000) Latigoe Inc. has the following financial statements for 20X8. In addition, the company paid stockholders dividends of $2.9 million and received $4.8 million from the sale of new stock. No fixed assets were retired during the year. ( That implies that fixed asset purchases and depreciation are equal to the changes in the gross fixed asset and accumulated depreciation accounts.) ASSETS 12/31/x7 12/31/x8Cash $3235 $2654Accts Recievable 7921 5694Inventory 12408 13653Current Assets 23564 22001Fixed AssetsGross $66098 $72166Acccumulated Deprec (47008) (51395Net 19090 20771Total Assets $42654 $42772LIABILITESAccts Payable $1750 $2229Accruals 964 781Current Liabilities $2714 $3010Long Term Debt $9007 $1352Equity 30933 38410Total Capital $39940 $39762Total Liabilities
The management of Coker Corp. is doing a quick forecast of 20X9 using the modified percentage of sales method in
The management of Coker Corp. is doing a quick forecast of 20X9 using the modified percentage of sales method in preparation for a more detailed planning exercise later in the month. The estimate is to assume a 11% growth in sales. All other line items are to be assumed to grow at the same rate except for fixed assets which is projected to increase by $81,000 due to an expansion program already underway. Approximate financial statements for the current year, 20X8, and a planning worksheet are shown below. The firm pays 10% interest on all of its debt. Assume the tax rate is a flat 20%. There are no plans for dividends or the sale of additional stock next year. Make a forecast of Coker’s complete income statement and balance sheet. Enter your answers in thousands. For example, an answer of $12 thousands should be entered as 12, not 12,000. (Hints: The easiest way to grow a number by 11% is to multiply it by 1.11 rather than taking 11% and adding. Do not grow subtotals. For example, to grow revenue and COGS by 11%, round each to the nearest thousand and subtract for gross margin. Don’t grow interest, debt, or equity; use the debt/interest iteration technique.) Round your answers to the nearest whole thousand. Enter all amounts as a positive numbers.Coker Corp.Current and Projected Income Statements ($000) 20×8 20x9Revenue $676 ________COGS 258 ________Gross margin 418 _______Expenses 258 ________EBIT 160 ________Interest (10%) 40 _______EBT 120 ________Inc Tax (20%) 24 ________Net Income 96 _______Coker Corp.Current and Projected Balance Sheets ($000) ASSETS LIABILITIES
The Principles Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted
The Principles Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted assembly-hours. Budgeted assembly time is 2 hours per unit. The following table shows the budgeted amounts and actual results related to overhead for June 2017.Do an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances.Do journal entries for Principles’ June 2017 variable and fixed manufacturing overhead costs and variances; write off these variances to Cost of Goods Sold for the quarter ending June 30, 2017.How does the planning and control of variable manufacturing overhead costs differ from the planning and control of fixed manufacturing overhead costs?
Required: (Show all the working)i. What is the Contribution Margin Ratio for Pacific Electronics? Explain the meaning of this ratio
Accounting Assignment Writing ServiceRequired: (Show all the working)i. What is the Contribution Margin Ratio for Pacific Electronics? Explain the meaning of this ratio in words.ii. How many units of floor lamps and how many units of desk lamps are currently sold? What is the sales mix ratio?iii. How much total sales the company must produce to Break-even?iv. What is the package Contribution Margin for the sale mix? v. How many floor lamps and how many desk lamps Pacific must sell to break even?vi. Compute the Degree of Operating Leverage for the company. Assume that actual revenue will be 40% higher than the current revenues. By what percentage will profits increase with this change in sales volume?
PSa 5-2 Determine the Taxable Earnings Subject to FUTA TaxNOTE: For each of the described pay periods, determine the taxable
PSa 5-2 Determine the Taxable Earnings Subject to FUTA TaxNOTE: For each of the described pay periods, determine the taxable earnings subject to FUTA tax: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.1:A business employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,700, $8,000, and $1,000. During the current pay period, these employees earn $1,700, $3,320, and $2,700, respectively.Taxable earnings subject to FUTA tax = $2:A business employs two individuals, whose taxable earnings to date (prior to the current pay period) are $2,400, and $7,200. During the current pay period, these employees earn $1,250 and $750, respectively.Taxable earnings subject to FUTA tax = $3:A business employs three individuals, whose taxable earnings to date (prior to the current pay period) are $26,700, $4,400, and $6,850. During the current pay period, these employees earn $2,320, $2,550, and $3,100, respectively.Taxable earnings subject to FUTA tax
Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake
Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change-related services represent 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. The company’s fixed costs are $15,000,000 (that is, $75,000 per service outlet).Oil Changes = $37,500,000Brake repair = $12,500,000The company has a desired net income of $45,000 per service outlet. What is the dollar amount of each type of service that must be provided by each service outlet to meet its target net income per outlet?Oil changes $ ______Brake repair $ ______
Week 3 Discussion: Steinbach
Week 3 Discussion: Steinbach
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