Business
Using the attached sheet (or a spreadsheet if you prefer), prepare a classified balance sheet for the ABC, LLC for the year ended December 31, 2020 using the following data. Accounts Payable 4,000 Accounts Receivable 3,000 Cash 20,000 Common Stock 1,000 Land 25,000 Notes Payable (due in 5 years) 10,000 Paid in Capital in Excess of Par - Common Stock 17,000 Paid in Capital in Excess of Par - Preferred Stock 2,000 Preferred Stock 8,000 Retained Earnings 7,000 Salaries Payable 5,000 Treasury Stock 6,000
Many people believe that because wages are lower in developing countries than in developed countries, competition from developing countries in goods traded internationally will soon eliminate large numbers of jobs in developed countries. Currently, developed countries' advanced technology results in higher productivity, which accounts for their higher wages. Advanced technology is being transferred ever more speedily across borders, but even with the latest technology, productivity and wages in developing countries will remain lower than in developed countries for many years because developed countries have better infrastructure and better-educated workers. When productivity in a developing country does catch up, experience suggests that wages there will rise. Some individual firms in developing countries have raised their productivity but kept their wages (which are influenced by average productivity in the country's economy) low. However, in a developing country's economy as a whole, productivity improvements in goods traded internationally are likely to cause an increase in wages. Furthermore, if wages are not allowed to rise, the value of the country's currency will appreciate, which (from the developed countries' point of view) is the equivalent of increased wages in the developing country. And although in the past a few countries have deliberately kept their currencies undervalued, that is now much harder to do in a world where capital moves more freely.The passage suggests that if the movement of capital in the world were restricted, which of thefollowing would be likely?(A) Advanced technology could move more quickly from developed countries to developing countries.(B) Developed countries could compete more effectively for jobs with developing countries.(C) A country's average wages could increase without significantly increasing the sophistication of its technology or the value of its currency.(D) A country's productivity could increase without significantly increasing the value of its currency.(E) Workers could obtain higher wages by increasing their productivity.
On January 1, 2018, Alamar Corporation acquired a 39 percent interest in Burks, Inc., for $228,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $327,000. During 2018, Burks reported net income of $79,000 and declared and paid cash dividends of $29,000. Alamar sold inventory costing $26,000 to Burks during 2018 for $42,000. Burks used all of this merchandise in its operations during 2018. Prepare all of Alamar's 2018 journal entries to apply the equity method to this investment.
Polson Pool Company is involved in a number of competitive bidding situations. The following costs are anticipated for a project to be bid for Terrance Manufacturing: Direct material $ 680,000 Direct labor 2,450,000 Allocated variable overhead 570,000 Allocated fixed cost 230,000 Which of these costs would be treated differently if Polson had either excess capacity or no excess capacity?a. Allocated variable overhead, $570,000 b. Direct labor, $2,450,000 c. Allocated fixed cost, $230,000 d. Direct materials used, $680,000.
Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: Original Budget Actual Costs Variable overhead costs: Supplies $7,980 $8,230 Indirect labor 29,820 29,610 Total variable manufacturing overhead cost $37,800 $37,840The original budget was based on 4,200 machine-hours. The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours. What was the overall variable overhead efficiency variance for the month?a. $130 Unfavorableb. $950 Favorablec. $1,440 Unfavorabled. $1,310 Favorable
ZIP Company owns 46,000 shares of the common stock of PIK Company. ZIP decided to divest itself of this investment by distributing the PIK shares in the form of a property dividend. The dividend ratio is one share of PIK for every four shares of ZIP common held by shareholders. ZIP has 184,000 common shares outstanding. On April 15, 2016, the date of declaration, PIK stock had a par value of $5 per share, a book value of $12.6 per share, and a market value of $17.6 per share.Required:1. Prepare any necessary journal entries. The shares were distributed on May 15, 2016, to stockholders of record on May 1, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.2. Record appreciation of investment.3. Record declaration of property dividend.4. Record the entry on date of record.5. Record the payment of the property dividend.
On June 30, 2018, Streeter Company reported the following account balances:Receivables$83,900Current liabilities$(12,900)Inventory70,250Long-term liabilities(54,250)Buildings (net)78,900Common stock(90,000)Equipment (net)24,100Retained earnings(100,000)Total assets$257,150Total liabilities and equities$(257,150)On June 30, 2021, Princeton Company paid $316,500 cash for all assets and liabilities of Streeter, which will cease to exist as a separate entity. In connection with the acquisition, Princeton paid $12,700 in legal fees. Princeton also agreed to pay $63,800 to the former owners of Streeter contingent on meeting certain revenue goals during 2022. Princeton estimated the present value of its probability adjusted expected payment for the contingency at $20,100.In determining its offer, Princeton noted the following pertaining to Streeter:It holds a building with a fair value $43,100 more than its book value.It has developed a customer list appraised at $25,200, although it is not recorded in its financial records.It has research and development activity in process with an appraised fair value of $36,400. However, the project has not yet reached technological feasibility and the assets used in the activity have no alternative future use.Book values for the receivables, inventory, equipment, and liabilities approximate fair values.Prepare Princetons accounting entry to record the combination with Streeter. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)1. First Entry Record the acquisition of Streeter company.2. Second Entry Record the legal fees related to the combination.