Project #74678 - Homework

 

P9-4B Journal Entries for Plant Assets… Stellar Delivery Service had the following transactions related to its delivery truck:

 

Year 1

 

Mar. 1 Purchased for 28,500 cash a new delivery truck with an estimated useful life of five years and a 2,800 salvage value.

 

          2 Paid $580 for painting the company name and logo on the truck.

 

Dec. 31 Recorded depreciation on the truck for the year.

 

Year 2

 

July 1 Installed air conditioning in the truck at a cost of 1,808 cash. Although the truck’s estimated useful unaffected, its estimated salvage value was increased by $400.

 

Sept. 7 Paid $430 for truck tune-up and safety inspection.

 

Dec 31 Recorded depreciation on the truck for the year.

 

Year 3

 

Sept. 3 Installed a set of front and rear bumper guards at a cost of $130 cash.

 

Dec. 31 Recorded depreciation on the truck for the year.

 

Year 4

 

Dec 31 Recorded depreciation on the truck for the year.

 

Stellar’s depreciation policies include (1) using straight-line depreciation, (2) recording depreciation to the nearest whole month, and (3) expensing all truck expenditures of $150 or less.

 

Required

 

Prepare journal entries to record these transactions and adjustments.

 

 

 

P10-3A Recording Payroll and Payroll Taxes… Beamon Corporation had the following payroll for April:

 

Officers’ salaries………………………………………………… $ 32,000

 

Sales salaries……………………………………………………....  67,000

 

Federal income taxes withheld…………………………….. 19,000

 

FICA taxes withheld………………………………………………. 7,500

 

Health insurance premiums withheld…………………… 1,600

 

Union dues withheld………………………………………………. 1,200

 

Salaries (included above) subject to federal unemployment taxes………………. 55,000

 

Salaries (included above) subject to state unemployment taxes…………………….. 60,000

 

Required

 

Prepare journal entries on April 30 to record:

 

  1. Accrual of the monthly payroll.

  2. Payment of the net payroll.

  3. Accrual of employer’s payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal unemployment tax is 0.6 percent, and the state unemployment tax is 5.4 percent.)

     d. Payment of all liabilities related to this payroll. (Assume that all are settled at the same time.)

 

 

 

P11-2A Stockholders’ Equity: Transactions and Balance Sheet Presentation… Tunic Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders’ equity occurred:

 

Apr. 1 Issued 80,000 shares of common stock at $15 cash per share.

 

         3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $31,000.

 

          8 Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $48,000.

 

          20 Issued 6,000 shares of preferred stock for cash at $55 per share.

 

Required

 

  1. Prepare journal entries to record the above transactions.

  2. Prepare the stockholders’ equity section of the balance sheet at April 30. Assume that the net income for April is $49,000.

 

 

 

E13-5B Ratios Analyzing Firm Profitability… The following information is available for Crest Company:

 

Annual Data                                                                          2013                        2012

 

Sales revenue                                                                   $6,400,000         $6,000,000

 

Cost of goods sold                                                             4,006,400            3,720,000

 

Net income                                                                         307,200                  264,000

 

 

 

Year-End Data                                                              Dec. 31, 2013                  Dec. 31, 2012

 

Total assets                                                                 $2,850,000               $2,360,000

 

Common stockholders’ equity                                  1,900,000                  1,800,000

 

 

 

Calculate the following ratios for 2013:

 

  1. Gross profit percentage

  2. Return on sales

  3. Asset turnover

  4. Return on assets

  5. Return on common stockholders’ equity (Crest Company declared and paid preferred stock dividends of $25,000 in 2013.)

 

Subject Mathematics
Due By (Pacific Time) 06/26/2015 11:00 pm
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