ACCT 201 Spring 2013 Name: Practice Exercise 3 Chapter 10 1. On October 31, 2011 Ronald signed a 2-year installment note in the amount of $50,000 in conjunction with the purchase of equipment. This note is payable in equal monthly installments of $2,354, which include interest computed at an annual rate of 12%. The first monthly payment is made on November 30, 2011. This note is fully amortizing over 24 months. Complete the amortization table for the first two payments by entering the correct dollar amounts in the blank spaces provided. In addition, answer the questions that follow.
Calculate the cost of the chairs in CompuFurn, Inc.’s finished-goods Inventory as of December 31.
Turnaround Childcare Agency is a private not-for-profit entity providing child care for a fee The agency has a permanent endowment and the income may be used to sponsor families that are unable to pay for services but the principal must be preserved In addition, various fundraising activities take place during the year
When the agency held its annual holiday fundraiser in 2017, pledges of $50,000 were received The administration expected 5% of the pledges to be uncollectible
In addition, income of $10,000 was received from the permanent endowment to sponsor children to be placed with foster families
Prepare the journal entries for these transactions
At the start of this chapter, you learned a little about Safeway and its history Now letâ€™s look at the
companyâ€™s ?nancial performance in recent years Refer to Safewayâ€™s income statement (on page 35),
the balance sheet (on page 30), and the statement of cash ?ows (on page 39) Based on information
contained in these ?nancial statements, answer the following questions:
1 As a percentage of total assets, did current assets increase or decrease from 2007 to 2008?
What was the primary reason for the change? 2 Divide gross pro?t by sales for 2007 and 2008 For which year is the gross pro?t percent-
age higher? What does that change represent? 3 In 2008, did Safeway generate enough cash from operations to fund all of its investing
activities? Did Safeway generate enough cash from operations to cover both its investing
and its ?nancing activities?
Labrador Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 2014, the end of the current fiscal year, the balances of selected accounts from the ledger of Labrador Weight Loss Co. are as follows:
Format The assignment may be completed manually, or with the use of an electronic spreadsheet, word processing software or with the use of accounting software. Marks may be deducted for illegible or partially illegible papers. Assignments (or parts thereof) prepared using MS Word can be lodged in MS Word 2003, MS Word 2007, or MS Word 2010 format. Assignments (or parts thereof) prepared using MS Excel can be lodgement MS Excel 2003, MS Excel 2007, or MS Excel 2010 format. Assignments (or parts thereof) prepared using any format other than indicated above (eg manually, wordprocessing software or accounting software etc) must be provided in PDF format. Documents prepared in formats other than indicated above will not be accepted. You may prepare different parts of your assignment in different (approved) formats and lodge each part as separate documents, provided you comply with the format requirements shown above.
You have been asked to write an article outlining the corporate governance implications of the Centro case for publication in the Business Section of a national newspaper. Please search business and legal publications to find out the facts of the case. However, be sure to use your own words and acknowledge the sources of your information. You will be rewarded for researching widely. Remember that while youare writing for an informed section of the public it is important to keep the legal jargon to a minimum.1. Outline the facts of the Centro (ASIC v.
A city government has a six-year capital lease for property being used within the General Fund. Minimum lease payments total $70,000 starting next year but have a current present value of $49,000. What is the total amount of expenditures to be recognized on the fund-based financial statements over the six-year period?
How does top-down budgeting work? Bottom-up budgeting? Zero-based budgeting? Flexible budgeting?
Safety Trucking Company uses the units-of-production (UOP) depreciation method because UOP best measures wear and tear on the trucks. Consider these facts about one Mack truck in the companys fleet. When acquired in 2010, the rig cost $450,000 and was expected to remain in service for 10 years or 1,000,000 miles. Estimated residual value was $150,000. The truck was driven 82,000 miles in 2010, 122,000 miles in 2011, and 162,000 miles in 2012. After 45,000 miles in 2013, the company traded in the Mack truck for a less expensive Freightliner. Safety also paid cash of $22,000. Fair value of the Mack truck was equal to its net book value on the date of the trade.
1. Determine Safetys cost of the new truck. Journal entries are not required.