AC 302

AC 302 WEEK 7 Exercise 21 Question 6 Crosley Company a machinery dealer leased a machine to Dexter Corporation on January 1 2014 The lease is for an 10 year period and requires equal annual payments of $32,308 at the beginning of each year. The first payment is received on January 1, 2014. Crosley had purchased the machine during 2013 for $161,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surrou

AC 302 WEEK 6 Willy Exercise Questions Brief Exercise 21 Question 9 Indiana Jones Corporation enters into a 5-year lease of equipment on January 1, 2014, which requires 5 annual payments of $35,070 each, beginning January 1, 2014. In addition, Indiana Jones guarantees the lessor a residual value of $20,770 at lease-end. The equipment has a useful life of 5 years. Prepare Indiana Jones’ January 1, 2014, journal entries assuming an inte

AC 302 WEEK 2 Problem 18A 11 On March 1 2014 Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $7,224,000. The building was completed by October 31, 2016. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2014, 2015, and 2016 are given below. 2014 2015 2016 Contract costs incurred during the

AC 302 WEEK 1 Problem 18A 8 Van Hatten Consolidated has three operating divisions DeMent Publishing Division Ankiel Securities Division and Depp Advisory Division Each division maintains its own accounting system DeMent Publishing Division The DeMent Publishing Division sells large volumes of novels to a few book distributors, which in turn sell to several national chains of bookstores. DeMent allows distributors to return up to 30% of sales

AC 302 WEEK 1 Exercise 18A 9 Sanchez Co. enters into a contract to sell Product A and Product B on January 2, 2014, for an upfront cash payment of $168,000. Product A will be delivered in 2 years (January 2, 2016) and Product B will be delivered in 5 years (January 2, 2019). Sanchez Co. allocates the $168,000 to Products A and B on a relative standalone selling price basis as follows. Standalone Selling Prices Percent Allocated Allocated

AC 230 WEEK 1 Exercise 18A 7 On June 3 2014 Hunt Company sold to Ann Mount merchandise having a sales price of $9360 cost $6552 with terms of 2/10, n/60, f.o.b. shipping point. Hunt estimates that merchandise with a sales value of $936 will be returned. An invoice totaling $140, terms n/30, was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 5, Mount notified Hunt that $351 of m

AC 302 WEEK 1 Exercise 18A 3 In September 2014 Gaertner Corp commits to selling 154 of its iPhone compatible docking stations to Better Buy Co. for $15,400 ($100 per product). The stations are delivered to Better Buy over the next 6 months. After 116 stations are delivered, the contract is modified and Gaertner promises to deliver an additional 58 products for an additional $5,510 ($95 per station). All sales are cash on delivery. Prepare the

AC 302 WEEK 1 Willy Exercises In September 2014, Gaertner Corp. commits to selling 154 of its iPhone-compatible docking stations to Better Buy Co. for $15,400 ($100 per product). The stations are delivered to Better Buy over the next 6 months. After 116 stations are delivered, the contract is modified and Gaertner promises to deliver an additional 58 products for an additional $5,510 ($95 per station). All sales are cash on delivery. Prepare

AC 302 WEEK 10 Discussion Nancy Tercek, the financial vice president, and Margaret Lilly, the controller, of Romine Manufacturing Company are reviewing the financial ratios of the company for the years 2012 and 2013. The financial vice president notes that the profit margin on sales ratio has increased from 6% to 12%, a hefty gain for the two- year period. Tercek is in the process of issuing a media release that emphasizes the efficiency of Romi

AC 302 WEEK 9 Discussion GAAP requires the statement of cash flows be presented when financial statements are prepared. Answer the following questions in the Discussion Board: Explain the purposes of the statement of cash flows. List and describe the three categories of activities that must be reported in the statement of cash flows. Identify and describe the two methods that are allowed for reporting cash flows from operations. Descri