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Order answer: On January 1 2013 Knox Company showed the following alphabetical

Law

Order answer: On January 1 2013 Knox Company showed the following alphabetical

Posted By George smith

On January 1, 2013, Knox Company showed the following alphabetical list of shareholders’ equity items: Additional paid-in capital on common stock ………..$130,000 Additional paid-in capital on preferred stock ……………6,000 Common stock, $10 par ………………………………100,000 Preferred stock, $100 par ………………………………50,000 Retained earnings ……………………………………..224,000 During 2013, the following events occurred and were properly recorded by the company: 1. Knox purchased an investment in available-for-sale securities. At year-end, the fair value of the securities had increased by $9,000. 2. Knox issued 2,000 shares of common stock for $25 per share. 3. Knox issued 110 shares of preferred stock for $116 per share. 4. Knox reacquired 400 shares of its common stock as treasury stock at a cost of $26 per share. 5. Knox earned net income of $57,000. 6. Knox paid a $7 per share dividend on the preferred stock and a $1.25 per share dividend on the common stock outstanding at the end of 2013 (treasury stock is not entitled to dividends). Required: Prepare a statement of shareholders’ equity for 2013, including retained earnings.

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Order answer: At the beginning of 2013 Cameron Company s retained earnings was

Law

Order answer: At the beginning of 2013 Cameron Company s retained earnings was

Posted By George smith

At the beginning of 2013, Cameron Company’s retained earnings was $212,000. For 2013, Cameron has calculated its pretax income from continuing operations to be $120,000. During 2013, the following events also occurred: 1. During July, Cameron sold Division M (a component of the company). It has determined that the pretax income from the operations of Division M during 2013 totals $39,000 and that a pretax loss of $40,500 was incurred on the sale of Division M. 2. Cameron had 21,000 shares of common stock outstanding during all of 2013. It declared and paid a $1 per share cash dividend on this stock. 3. Cameron experienced an extraordinary event. It recognized a material pretax gain of $26,000 on the event. Required: Assuming that all the ”pretax” items are subject to a 30% income tax rate: 1. Complete the lower portion of Cameron’s 2013 income statement, beginning with ”Pretax Income from Continuing Operations.” 2. Prepare an accompanying retained earnings statement.

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Order answer: It is the end of 2013 and as an accountant

Law

Order answer: It is the end of 2013 and as an accountant

Posted By George smith

It is the end of 2013, and, as an accountant for Newell Company, you are preparing its 2013 financial statements. On December 29, 2013, Newell’s management decided to sell one of its major divisions, subject to some legal work that is expected to be completed during the first week in April 2014 (after the 2013 financial statements have been issued). During 2013, the division earned a small operating income that is just enough for the company to report ”record earnings” for the year. However, the estimated fair value of the division at the end of 2013 is less than its net book value, so that management anticipates the component will be sold at a loss. Newell’s president stops by your office and says, ”You have been doing a fine job. Keep up the good work because you are heading for a promotion in early 2015. Once we report the record earnings for 2013, our shareholders and creditors will be happy. Then I think our earnings for 2014 will be high enough so that the loss we expect to report in 2014 on the sale of the division will not look so bad.” After the president leaves your office, you continue preparing the 2013 financial statements. Required: From financial reporting and ethical perspectives, what information, if any, will you include about the upcoming sale of the division in the 2013 financial statements?

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Order answer: Situation During 2013 one of the customers of Klote Company declared

Law

Order answer: Situation During 2013 one of the customers of Klote Company declared

Posted By George smith

Situation During 2013, one of the customers of Klote Company declared bankruptcy. This customer had been a major purchaser of Klote’s products and had owed $40,000 on account to Klote (a material portion of its receivables) at the time of bankruptcy. As a result of the bankruptcy, Klote had to write off the entire $40,000 account receivable of the customer as a loss. Klote’s president is concerned about how to report this loss on the company’s 2013 income statement. The president says, ”since this company that went bankrupt was a major customer, surely that is an unusual and infrequent event, and the $40,000 should be reported as an extraordinary loss. What do you think?” Directions Research the related U.S. GAAP using the FASB’s Accounting Standards Codification and prepares a short memo to the president that summarizes how to report the $40,000 loss on Klote’s 2013 income statement. Cite your reference and applicable paragraph numbers.

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Order answer: GAAP deal with among other issues defining a component and

Law

Order answer: GAAP deal with among other issues defining a component and

Posted By George smith

GAAP deal with, among other issues, defining a ”component” and reporting the results of discontinued operations on a company’s income statement. Required: Identify the elements of a company’s results of discontinued operations section of its income statement. Define a component and explain how the elements of the section are computed if the company sells a component in the same accounting period that its management decided to sell the component.

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Order answer: Shown here is an income statement in the traditional format

Law

Order answer: Shown here is an income statement in the traditional format

Posted By George smith

Shown here is an income statement in the traditional format for a firm with a sales volume of 15,000 units: Revenues…………………………………………………………………………………………………. $105,000 Cost of goods sold ($8,000 + $3.60/unit)………………………………………………………… 62,000 Gross profit……………………………………………………………………………………………….. $ 43,000 Operating expenses: Selling {$1,500 + $0.80/unit………………………………………………………………………….. 13,500 Administration ($4,000 + $0.50/unit)………………………………………………………………. 11,500 Operating income……………………………………………………………………………………….. $ 18,000 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm’s operating income (or loss) if the volume changed from 15,000 units to 1. 20,000 units. 2. 10,000 units.

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Order answer: Collegiate Canvas currently makes and sells two models of a

Law

Order answer: Collegiate Canvas currently makes and sells two models of a

Posted By George smith

Collegiate Canvas currently makes and sells two models of a backpack. Data applicable to the current operation are summarized in the following columns labeled Current Operation. Management is considering adding a Value model to its current Luxury and Economy models. Expected data if the new model is added are shown in the following columns labeled Proposed Expansion: Required: a. Calculate the company’s current total contribution margin and the current average contribution margin ratio. b. Calculate the company’s current amount of operating income. c. Calculate the company’s current break-even point in dollar sales. d. Explain why the company might incur a loss, even if the sales amount calculated in pan c was achieved and selling prices and costs didn’t change. c. Calculate the company’s total operating income under the proposed expansion. i. Based on the proposed expansion data, would you recommend adding the Value model? Why or why not? g. Would your answer to pan f change if the Value model sales volume were to increase to 10.000 units annually and all other data remained the same? Why or why not?

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Order answer: Larry estimates that the costs of insurance license and depreciation

Law

Order answer: Larry estimates that the costs of insurance license and depreciation

Posted By George smith

Larry estimates that the costs of insurance, license, and depreciation to operate his car total $320 per month and that the gas. Oil, and maintenance costs are 14 cents per mile. Larry also estimates that, on average, he drives his car l .400 miles per month.

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Order answer: Clay Co produces ceramic coffee mugs and pencil holders Manufacturing

Law

Order answer: Clay Co produces ceramic coffee mugs and pencil holders Manufacturing

Posted By George smith

Clay Co. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an application rate based on direct labor hours. Required: a. For 2016 the company’s cost accountant estimated that total overhead costs incurred would be $408750 and that a total of 54500 direct labor hours would be worked. Calculate the amount of overhead to be applied for each direct labor hour worked on a production run. b. A production run of 750 coffee mugs used raw materials that cost $810 and used 90 direct labor hours at a cost of $9.50 per hour. Calculate the cost of each coffee mug produced. c. At the end of October 2016, 530 coffee mugs made in the production run in part b had been sold and the rest were in ending inventory. Calculate (1) the cost of the coffee mugs sold that would have been reported in the income statement and (2) the cost included in the April 30, 2016 finished goods inventory.

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Order answer: Calculate basic EPS and explain the EPS effect of convertible

Law

Order answer: Calculate basic EPS and explain the EPS effect of convertible

Posted By George smith

Calculate basic EPS, and explain the EPS effect of convertible preferred Thrifty Co. reported net income of $191,150 for its fiscal year ended January 31, 2017, At the beginning of that fiscal year. 50,000 shares of common stock were outstanding. On October 31, 2016, an additional 15,000 shares were issued. No other changes in common shares outstanding occurred during the year. Also during the year, the company paid the annual dividend on the 20.000 shares of 6%. $50 par value preferred stock that were outstanding the entire year. Required: a. Calculate basic earnings per share of common stock for the year ended January 31, 2017. b. If Thrifty Co.’s preferred stock were convertible into common stock, what additional calculation would be required?

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