Ask Financial Accounting Expert

Question 1

Please answer the followings:

a. What is the maximum price that you are willing to pay for a machine if it is expected to provide annual savings of $20,000 at the end of each year for 10 years and to have a resale value of $50,000 at the end of year 10. Assume an interest rate of 9% p.a. compounded annually.

b. If $8,000 is deposited annually starting on January 1, 2010 and earns 9% p.a. compounded annually, how much will be accumulated by December 31, 2019?

c. Compute the cost of an investment if it earns $6,000 at the end of every 3 months for 5 years at 12% compounded quarterly.

d. How much must be invested now -to receive $40,000 for ten years if the first $40,000 is received today and the interest rate is 8% p.a. compounded annually?

e. A machine will be leased for 15 years with rent received at the beginning of each year. If the machine cost is $160,000 and return of 10% p.a. compounded annually is required, compute the amount of the annual rent.

f. Determine the market price of a $400,000, ten-year, 10% (pays interest semiannually. at the end of each period) bond sold to yield an interest rate of 12% p.a. compounded semi-annually.

Question 2:

1361_How much cash was collected from accounts receivable during 2011.png

Required:

a. How much cash was collected from accounts receivable during 2011?

b. Prepare the journal entry to record the sale revenue of $900,000 and related discounts using both the gross and net method. Repeat the same using net method if Such discounts were not taken by customers under the net method.

c. Assume sales discounts were taken by customers and that gross method is used, compute total gross sales, net sales and bad debt expenses in 2011.

d. What would the bad debt expenses be if Savoy wanted to use the percentage of sales method and estimated that 4.5% of sales were not collectible?

Question 3:

Stevenson Ltd. began operations on January 1, 2012. Merchandise purchases and four alternative methods of valuing inventory for the first two years of operations were summarized below:

2178_How much cash was collected from accounts receivable during 20111.png

Required:

a. Calculate COGS using the four alternative methods and determine the cost flow assumption or inventory valuation method that would report the highest net income for 2012.

b. Assuming that FIFO had been used for both years, how much would the cost of goods sold be in 2013?

Question 4:

Adrian Company began operations in 2010 and had the following ending inventory information at cost and at LCNRV on December 31, 2010 and December 31, 2011:

2117_How much cash was collected from accounts receivable during 20112.png

Required:

a. Using a perpetual inventory system and the cost-of-goods-sold method, prepare the journal enhies required at December 31, 2010 and December 31, 2011.

b. Using a perpetual system and the loss method with an allowance account, prepare the journal entries required at December 31, 2010 and December 31, 2011.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M9746438

Have any Question?


Related Questions in Financial Accounting

Case study - the athletes storerequiredonce you have read

Case Study - The Athletes Store Required: Once you have read through the assignment complete the following tasks in order and produce the following reports Part 1 i. Enter the business information including name, address ...

Scenario assume that a manufacturing company usually pays a

Scenario: Assume that a manufacturing company usually pays a waste company (by the pound to haul away manufacturing waste. Recently, a landfill gas company offered to buy a small portion of the waste for cash, saving the ...

Lease classification considering firm guidance issues

Lease Classification, Considering Firm Guidance (Issues Memo) Facts: Tech Startup Inc. ("Lessee") is entering into a contract with Developer Inc. ("Landlord") to rent Landlord's newly constructed office building located ...

A review of the ledger of oriole company at december 31

A review of the ledger of Oriole Company at December 31, 2017, produces these data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance $19,404. The company has separate insurance policies on i ...

Chelsea is expected to pay an annual dividend of 126 a

Chelsea is expected to pay an annual dividend of $1.26 a share next year. The market price of the stock is $24.09 and the growth 2.6 percent. What is the cost of equity?

Sweet treats common stock is currently priced at 3672 a

Sweet treats common stock is currently priced at $36.72 a share. The company just paid $2.18 per share as its annual dividend. The dividends have been increasing by 2,2 percent annually and are expected to continue doing ...

Highway express has paid annual dividends of 132 133 138

Highway Express has paid annual dividends of $1.32, $1.33, $1.38, $1.40, and $1.42 over the past five years, respectively. What is the average divided growth rate?

An investment offers 6800 per year with the first payment

An investment offers $6,800 per year, with the first payment occurring one year from now. The required return is 7 percent. a. What would the value be today if the payments occurred for 20 years?  b. What would the value ...

Oil services corp reports the following eps data in its

Oil Services Corp. reports the following EPS data in its 2017 annual report (in million except per share data). Net income $1,827 Earnings per share: Basic $1.56 Diluted $1.54 Weighted average shares outstanding: Basic 1 ...

At the start of 2013 shasta corporation has 15000

At the start of 2013, Shasta Corporation has 15,000 outstanding shares of preferred stock, each with a $60 par value and a cumulative 7% annual dividend. The company also has 28,000 shares of common stock outstanding wit ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As