Financial Statements
99
7. The following is the list of balances extracted from the books of Anda Trading as at
30 November 20X2.
RM
100
9,000
12,840
26,500
14,000
50,000
Particulars
Petty cash
Cash at bank
Accounts receivable
Inventory as at 1 December 20X1
Motor vehicles
Plant and machinery
Long-term investments
Freehold premises
Accounts payable
10% Mortgage on freehold premises
Capital on 1 December 20X1
Purchases
Wages and salaries
Rates and taxes
Interest on mortgage
10,000
147,500
16,500
34,000
219,840
128,900
General expenses
Carriage outwards
Insurance premium
Drawings
Carriage inwards
Advertising expenses
Sales
70,300
1,000
1,700
2,000
21,000
3,000
7,400
600
14,000
250,000
1,000
Sales returns
Purchases returns
500
Discount received
600
Discount allowed
800
Allowance for doubtful debt
200
Inventory on hand as at 30 November 20X2 was RM30,000.
You are required to prepare the statement of profit or loss for the year ended
30 November 20X2 and a statement of financial position as at that date.

Answer:

RM

Explanation:

because they are forming the books of Anda Trandig.

Sunland Company reports the following operating results for the month of August: sales $382,500 (units 5,100), variable costs $259,000, and fixed costs $99,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 12% with no change in total variable costs or units sold. 2. Reduce variable costs to 65% of sales. Compute the net income to be earned under each alternative. 1. Net Income $enter a dollar amount 2. Net Income $enter a dollar amount Which course of action will produce the highe

Assume that Jordan ​Enterprises's radio broadcast license is renewable at the end of each 10​-year term and management has provided evidence that approval of the renewal is highly probable. In this​ case, the broadcast license qualifies as an​indefinite-life intangible asset and is not subject to amortization.​ Therefore, the firm carries the broadcast license at its original cost of $786,000.
On December ​31, 2015 the company noted substantial declines in radio advertising revenues over the past year due to expanded satellite radio​subscriptions, Internet​ broadcasts, and the use of iPod players. Based on the required annual review and consideration of the available impairment​ indicators, management believes that it is more likely than not that the broadcast license may be impaired.​ Therefore, the company must test the broadcast license for impairment. Similar broadcast licenses have been sold in auctions for $676,000.
Assuming that renewal of the broadcast license is probable for this​ indefinite-life intangible​ asset, analyze the accounting for impairment and prepare the journal entries.
1.) Conduct the impairment test indicated for​indefinite-life intangible asset at the end of the year and determine the impairment​ loss, if any. ​(If you selected​ "No" that an impairment loss is not​ indicated, then leave the impairment loss input cell blank. Show a loss with a parentheses or minus​ sign.)
2.) Next, prepare the journal entry required to record any impairment loss. ​(Record debits​ first, then credits. Exclude explanations from any journal entries. If no entry is required select​ "No Entry​ Required" on the first line of the journal entry table and leave all remaining cells in the table​blank.)

When negotiators have an audience watching their progress in the negotiations, the audience's negotiator: is more likely to give in to the other party's demands. pays more attention to saving face. feels and acts the same as if no one were viewing the negotiation. tends to be more willing to make concessions to the other party. tends to feel more cooperative and is more willing to make concessions to the other party.

17. Andy Store sold merchandise in the amount of $5,800 to a customer on October 1, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Andy uses the perpetual inventory system. The journal entries that Andy will make on October 1 will include: A) Debit to Accounts Receivable for $4,000 B) Credit to Merchandise Inventory for $5,800 C) Debit to Cost of Goods Sold for $5,800 D) Credit to Merchandise Inventory for $4,000 E) Credit to Net Income for $1,800

Arlington Clothing, Inc., shows the following information for its two divisions for year 1.

Lake Region Coastal Region
Sales revenue $4,020,000 $13,110,000
Cost of sales 2,625,000 6,470,000
Allocated corporate overhead 241,200 786,600
Other general and administration 548,900 3,710,000

The results for year 2 have just been posted.
Lake Region Coastal Region
Sales revenue $4,020,000 $9,520,000
Cost of sales 2,625,000 4,840,000
Allocated corporate overhead 301,500 714,000
Other general and administration 549,000 3,710,000

Required:
a. Compute divisional operating income for the two divisions.
b. What are the gross margin and operating margin percentages for both divisions?

On January 1, Cheyenne Corp. had 61,400 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.

Apr. 1 Issued 11,250 additional shares of common stock for $11 per share.
June 15 Declared a cash dividend of $1.90 per share to stockholders of record on June 30.
July 10 Paid the $1.90 cash dividend. Dec. 1 Issued 5,000 additional shares of common stock for $12 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $2.00 per share to stockholders of record on December 31.

Required:
Prepare the entries, if any, on each of the three dates that involved dividends.

Project Z will result in unit sales of 2,250, at a price of $650 each. The variable cost (VC) of each unit is $325. The cost accountant will allocate overhead on the existing plant to Project Z at a rate of $21 per unit. A special piece of equipment must be leased for $75,000 per year for purposes related solely to Project Z. Project Z will reduce sales of the same company’s Project X by 900 units (selling price of $950 with variable cost of $510 and overhead allocation of $32 per unit). What is the total incremental cash flow for Project Z?

33. A tripeptide has
A. 3 amino acids and 1 peptide bond
B. 3 amino acids and 2 peptide bond
6.3 amino acids and 3 peptide bond
D. 3 amino acids and 4 peptide bond I need the answer​

The project manager of a task force planning the construction of a domed stadium had hoped to be able to complete construction prior to the start of the next college football season. After reviewing construction time estimates, it now appears that a certain amount of crashing will be needed to ensure project completion before the season opener. Given the following time and cost estimates, determine a minimum-cost crashing schedule that will shave five weeks off the project length. Note: No activity can be crashed more than two weeks.

Suppose Germany, a large country, imposes a tariff on tuna imports. Before the tariff, all the countries in the world are engaged in free trade in tuna. Explain why.
(1). The German consumers pay a higher price for tuna.
(2). The German producers receive a higher price for tuna.
(3). The world price of tuna increases.
(4). The tariff makes Vietnam, a tuna exporting country, worse off.
(5). Vietnamese tuna consumers suffer because of the tariff.

You are Heidi Ganahl, CEO and Founder of Camp Bow Wow, and you are intending to expand the brand to new global locations. If you are expanding into a country that values humane-oriented leadership, which of the following behaviors is most in line with that perspective?
a. You implement weekly team building session to create a collaborative work environment.
b. You involve all employees in all decisions, ensuring that everyone participates in the decision making process.
c. You articulate a dear vision for changing the organization so that it will focus on consistently delivering high levels of performance.
d. You provide compassionate support when an employee is having difficulty with family issues.

g The following totals for the month of April were taken from the payroll records of Kingbird Company. Salaries $144000 FICA taxes withheld 11020 Income taxes withheld 30000 Medical insurance deductions 5400 Federal unemployment taxes 380 State unemployment taxes 2590 The journal entry to record the monthly payroll on April 30 would include a debit to Salaries and Wages Expense for $144000. debit to Salaries and Wages Expense for $97580. credit to Salaries and Wages Payable for $144000. debit to Salaries and Wages Payable for $144000.

Your plan is to work for 40 years after graduations. You will invest monthly. You plan to start at the end of your first month with $300. Historically, the company you will be working for increases salaries at the rate of 6% each year and you expect this to continue. You translate this as 0.5% every month and hence, you plan to increase your monthly investment by 0.5%. Note that your 0.5% investment adjustments will start in the second month of your employment. If these funds are invested in a retirement account that attracts an interest rate of 0.75% per month:
i. Calculate the present worth of your investment.
ii. How much will be in your investment account after 40 years of dumping money into it?
iii. This is the fun part. After getting all this money in (ii), your plan is to take them and reinvest in a low risk funds like bonds. If you put all the amount in a fund that attracts 3% per year compounding monthly, how much equal payment will you receive every month before the funds depletes if you plan to spend all your money over a 40 year period?

The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.65. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $2.8 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, and T-bills currently offer a 6% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Calculate the P/E ratio.

Consider the following statements about the step-down method of service department cost allocation: I. Under the step-down method, all service department costs are eventually allocated to production departments. II. The order in which service department costs are allocated is important. III. After a service department's costs have been allocated to other departments, no costs are re-circulated back to that service department. Which of the above statements is (are) correct?

a. I, II, and III.
b. I only.
c. I and II.
d. II only.
e. I and III.

The Pastel Paint Company recently loaned $300,000 to KIX 96, a local radio station. The radio station signed a noninterest-bearing note requiring the $300,000 to be repaid in three years. As part of the agreement, the radio station will provide Pastel with a specified amount of free radio advertising over the three-year term of the note. The focus of this case is the valuation of the note receivable by Pastel Paint Company and the treatment of the "free" advertising provided by the radio station. Your instructor will divide the class into two to six groups depending on the size of the class. The mission of your group is to reach consensus on the appropriate note valuation and accounting treatment of the free advertising.
Required:
1. Each group member should deliberate the situation independently and draft a tentative argument prior to the class session for which the case is assigned.
2. In class, each group will meet for 10 to 15 minutes in different areas of the classroom. During that meeting, group members will take turns sharing their suggestions for the purpose of arriving at a single group treatment.
3. After the allotted time, a spokesperson for each group (selected during the group meetings) will share the group’s solution with the class. The goal of the class is to incorporate the views of each group into a consensus approach to the situation.

Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21, computed as follows: Direct materials $ 7 Direct labor 6 Variable manufacturing overhead 3 Fixed manufacturing overhead 5 Unit product cost $ 21 An outside supplier has offered to provide the annual requirement of 2,900 of the parts for only $13 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: Multiple Choice ($3) per unit on average $3 per unit on average $6 per unit on average ($8) per unit on average

Which of the following is the second step in the hiring process?

Select the best answer choice.
A.
the submission of the application or resume

B.
the interview

C.
sending a thank-you note

D.
getting hired for the position

The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.70. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $3.6 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 15%, and T-bills currently offer a 5% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

According to supporters of globalization,

a.
Free trade encourages countries to be economically independent.
b.
Free trade will result in countries specializing in the production of those goods and services they can produce most efficiently.
c.
The costs of free trade outweigh the benefits.
d.
The dislocation of jobs resulting from free trade can be avoided by increasing domestic wages.
e.
The labor supply is easily controlled on a global basis.

Gibson Guitar Corporation has chosen to build instruments one at a time, by hand. Gibson's century-old tradition of creating investment-quality instruments represents the highest standards of imaginative design and masterful craftsmanship. Gibson's CEO has found an inverse price-demand relationship exists. He states, "the more we charged, the more guitars we sold." Thus, consumers think that higher prices mean more quality in the case of _____.

Bramble Corp. purchased land as a factory site for $1305000. Bramble paid $121000 to tear down two buildings on the land. Salvage was sold for $8400. Legal fees of $5340 were paid for title investigation and making the purchase. Architect's fees were $47000. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15480. The contractor was paid $4400000. An assessment made by the city for pavement was $9900. Interest costs during construction were $251000.
1. The cost of the land that should be recorded by Wilson Co. is:_____.
a. $989,880
b. $980,480
c. $996,280
d. $986,880
The cost of the building should be recorded by Wilson Co. is:_____.
a. 2,804,840
b. 2,813,200
c. 2,803,800
d. 3,014,240

You are interested in investing your m0ney, but don't know much about
individual stocks or bonds. What kind of investment would be best for you?
A. Mutual fund
B. Shares of G0ogle or lBM
C. Treasury Bonds
D. Checking account

Argentina is considering constructing a bridge across the Rio de la Plata to connect its northern coast to the southern coast of Uruguay. If this bridge is constructed, it will reduce the travel time from Buenos Aires, Argentina, to Sao Paulo, Brazil, by over 10 hours and has the potential to significantly improve the flow of manufactured goods between the two countries. The cost of the new bridge, which will be the longest bridge in the world, spanning over 50 miles, will be $700 million. The bridge will require an annual maintenance of $10 million for repairs and upgrades and is estimated to last 80 years. It is estimated that 550,000 vehicles will use the bridge during the first year of operation, and an additional 50,000 vehicles per year until the tenth year. These data are based on an a toll charge of $90 per vehicle. The annual traffic for the remainder of the life of the bridge life will be 1,000,000 vehicles per year. The Argentine government requires a minimum rate of return of 9% to proceed with the project.
(a) Does this project provide sufficient revenues to offset its costs?
(b) What considerations are there besides economic factors in deciding whether to construct the bridge

The following selected transactions relate to liabilities of Rocky Mountain Adventures. Rocky Mountain's fiscal year ends on December 31.
January 13: Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at the bank's prime rate.
February 1: Arrange a three-month bank loan of $4.3 million with First Bank under the line of credit agreement. Interest at the prime rate of
7% is payable at maturity.
May 1: Pay the 7% note at maturity.
Record the appropriate entries, if any, on January 13, February 1, and May 1.

Benny is 57 years old and is employed by the state as a school bus driver.He has an exemplary record,with no accidents in the past 27 years.Tom,aged 31,replaces Benny.Benny intends to file a discrimination claim under the Age Discrimination in Employment Act (ADEA)with the Equal Employment Opportunity Commission.If Benny lives in a state that has not waived sovereign immunity,which of the following statements is most likely to be true?
A) Benny has a valid claim and can sue the state because he can establish all of the elements of a prima facie case.
B) Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
C) Benny is a state employee and must file his claim pursuant to the Older Workers' Benefit Protection Act.
D) Benny does not have a claim for age discrimination under the ADEA as he was replaced by an employee who is older than 30.

Roy Wilton is a CPA who recently made a poor investment. When researching the investment, Roy examined the financial statements of the firm, but did not read the accompanying footnotes, and therefore didn’t comprehend the broader context underlying those financial statements. Which of the following is true with respect to the enhancing qualitative characteristic of understandability in this case?
a. This demonstrates a violation of understandability, given that Roy did not comprehend all relevant information.
b. This does not demonstrate a violation of understandability, as Roy did not bother to read the footnotes but could have understood them if he did so.
c. This does not demonstrate a violation of understandability, but rather completeness, as Roy’s understanding was incomplete.
d. This demonstrates a violation of understandability, as CPAs should be able to rely on the financial statements alone.

Sales promotion is the promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.

a. True
b. False

Axil Corp. has not tapped the Deutsche mark public debt market because of concern about a likely appreciation of that currency and only wishes to be a floating-rate dollar borrower, which it can be at LIBOR + 1%. Bevel Corp. strongly prefers fixed-rate DM debt, but it must pay 1.5% more than the 6.25% coupon that Axil's DM notes would carry. Bevel, however, can obtain Eurodollars at LIBOR + 1/2%. Show work and explain.
1. What is the maximum possible cost savings to Axil from engaging in acurrency swap with Bevel?
2. What is the maximum possible cost savings to Bevel from engaging in acurrency swap with Axil?

Information concerning a product produced by Ender Company appears here: Sales price per unit $ 200 Variable cost per unit $ 80 Total annual fixed manufacturing and operating costs $ 600,000 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $240,000. Determine the margin of safety in units, sales dollars, and as a percentage.