The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017.
Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $510,000 at face value.
Sep. 1 Acquired $1,230,000 of American Instruments' 10% bonds at face value.
Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds.
Oct. 2 Sold the Distribution Transformers bonds for $590,000.
Nov. 1 Purchased $1,950,000 of M&D Corporation 6% bonds at face value.
Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:
American Instruments bonds$1,181,000
M&D Corporation bonds$2,021,000
(Hint: Interest must be accrued.)
Required:
Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end.

Answer:

1. Mar.31

Dr Investment in Distribution Transformers bonds $510,000

Cr Cash $510,000

2. September 01,

Dr Investment in American Instruments bonds

$1,230,000

Cr Cash $1,230,000

3 September 30

Dr Cash $20,400

Cr Interest revenue $20,400

4 October 02

Dr Fair value adjustment $80,000

Cr Unrealized holding gain—NI $80,000

5.October 02

Dr Cash $590,000

Cr Investment in Distribution Transformers bonds $510,000

Cr Fair value adjustment $8,000

6. November 01

Dr Investment in M&D Corporation bonds $1,950,000

Cr Cash $1,950,000

7 December 31

Dr Interest receivable $41,000

Cr Interest revenue $41,000

8 December 31

Dr Interest receivable $19,500

Cr Interest revenue $19,500

9. December 31

Dr Fair value adjustment $22,000

Cr Unrealized holding gain—NI $22,000

Explanation:

Preparation of the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end

1. Mar.31

Dr Investment in Distribution Transformers bonds $510,000

Cr Cash $510,000

2. September 01,

Dr Investment in American Instruments bonds

$1,230,000

Cr Cash $1,230,000

3 September 30

Dr Cash $20,400

Cr Interest revenue $20,400

(8%/2*$510,000)

4 October 02

Dr Fair value adjustment $80,000

Cr Unrealized holding gain—NI $80,000

($590,000-$510,000)

5.October 02

Dr Cash $590,000

Cr Investment in Distribution Transformers bonds $510,000

Cr Fair value adjustment $8,000

6. November 01

Dr Investment in M&D Corporation bonds $1,950,000

Cr Cash $1,950,000

7 December 31

Dr Interest receivable $41,000

Cr Interest revenue $41,000

($1,230,000 x 10% x 4/12)

8 December 31

Dr Interest receivable $19,500

Cr Interest revenue $19,500

($1,950,000* 6% x 2/12)

9. December 31

Dr Fair value adjustment $22,000

Cr Unrealized holding gain—NI $22,000

Available for sale securities Cost Fair market Value Profit/Loss

M & D Corporation shares

$1,950,000 $2,021,000 $ -71,000

American Instruments bonds $1,230,000 $1,181,000 $49,000

Totals $3,180,000 $3,202,000 $22,000

Marcia, age 28, charges all her groceries on her credit card. Yes,no,Depends and why?

Asian Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months for the current year are as follows: Month Sales October 10,000 November 14,000 December 13,000 Finished goods inventory at the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales. Asian Lamp expects to sell the lamps for $25 each. January sales is projected at 16,000 lamps. How many lamps should be produced in October

You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common stock. Quigley's WACC is closest to: 8.15% 8.48% 8.82% 9.17% 9.54%

On January 1, Year 1, Eureka Company issued $290,000 of 4-year, 5% bonds at face value. The annual cash payment for interest is due on January 1 of each year beginning January 1, Year 2. Based on this information, what is the total amount of liabilities related to these bonds that will be reported on the balance sheet at December 31, Year 1

benjamin company has the following results of operations for the pat tyear. A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,500 units at $8.05 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $650 and selling and administrative costs by $350. assuming benjamen has excess capacitty and Benjamin accepts the offr, its profits will:

Assume that the market is originally in equilibrium. Now suppose that this product gains a sudden popularity among consumers. How will this sudden popularity affect the profit of an individual firm in this market in the short run? Choose one: A. The profit of an individual firm decreases from zero, and the firm will incur a loss. B. The profit of an individual firm decreases from a positive value to zero. C. The profit of an individual firm increases from zero to a positive value. D. The profit of an individual firm increases from a smaller positive value to a larger positive value.

According to Value Line, Bestway has a beta of 1.15. If 3-month Treasury bills currently yield 7.9% and the market risk premium is estimated to be 8.3%, what is Bestway's cost of equity capital?
a. 16.2%
b. 9.55%
c. 8.36%
d. 17.45%

A buyer's closing statement shows different items, including a purchase price of $58,325, an assumable mortgage of $55,000, a survey fee of $250, total debits of $59,925.25, title insurance of $395, 1% loan origination fee, total credits of $58,295, 2% for discount points, contract deposit of $3,000, and rent prorations of $495. Based on this information, how much money does the buyer need to bring to the closing

A company acquires a natural resource for and spends another on development of the site and for a nonmovable tangible asset installed at the site and for tangible movable equipment. Both assets have an expected useful life of 10 years. The natural resource is expected to yield units over its expected life. In year​ 1, units are extracted from the resource. What is the depletion expense for year​ 1? (Round any intermediary calculations to the nearest​ cent, and round your final answer to the nearest​ dollar.) A. B. C. D.

A firm with unlimited funds must evaluate five projects. Projects 1 and 2 are independent and Projects 3, 4, and 5 are mutually exclusive. The projects are listed with their returns. A ranking of the projects on the basis of their returns from the best to the worst according to their acceptability to the firm would be ________.

Question 13 Pina Colada Corp. has the following inventory data: July 1 Beginning inventory 108 units at $19 $2052 7 Purchases 378 units at $20 7560 22 Purchases 54 units at $22 1188 $10800 A physical count of merchandise inventory on July 30 reveals that there are 180 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for July is $3960. $3492. $3600. $3708.

If the Fed sells treasury bonds, what happens? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Financial institutions purchase the bonds, which injecting money into the system and the interest rate falls. b Financial institutions purchase the bonds, increasing their assets which allow them to lend more, reducing the interest rate. c Financial institutions purchase the bonds, which removes money from the system and the interest rate rises. d Financial institutions purchase the bonds, increasing their assets which allow them to lend more, increasing the interest rate.

In a statement of cash flows using the indirect method, an increase in the available-for-sale debt securities account due to an increase in the debt's fair value should be reported as: Group of answer choices A deduction from net income in determining cash flows from operating activities. Not reported. An investing activity. An addition to net income in determining cash flows from operating activities.

At the time of his death on July 9, Aiden held rights in the following real estate: Fair Market Value (on July 9) Apartment building $2,100,000 Tree farm 1,500,000 Pastureland 750,000 Residence 900,000 The apartment building was purchased by Chloe, Aiden's mother, and is owned in a joint tenancy with her. The tree farm and pastureland were gifts from Chloe to Aiden and his two sisters. The tree farm is held in joint tenancy, and the pastureland is owned as tenants in common. Aiden purchased the residence and owns it with his wife as tenants by the entirety. Compute Aiden's gross estate based on the scenarios:

The ABCD Partnership has the following balance sheet at January 1, 2017, prior to the admission of new partner, Eden. Cash and current assets $ 39,000 Liabilities $ 52,000 Land 234,000 Adams, capital 26,000 Building and equipment 130,000 Barnes, capital 52,000 Cordas, capital 117,000 Davis, capital 156,000 Total $ 403,000 Total $ 403,000 Eden acquired a 20% interest in the partnership by contributing a total of $71,500 directly to the other four partners. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: Adams, 15%; Barnes, 35%; Cordas, 30%; and Davis, 20%. After Eden made his investment, what were the individual capital balances

In the Month of March, Chester received orders of 195 units at a price of $15.00 for their product Creak, and in April receives an order for 49 units of their product Creak at $15.00. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 0 units in March, 195 units in April and 49 units in May. They received payment for 195 units in April, and payment for 49 units in May. How much revenue is recognized on the March income statement from this order

Autoliv produces air bag systems that it sells to automobile manufacturers throughout the world. Assume the company has a capacity of 50 million units per year, it is currently producing at an annual rate of 40 million units. Autoliv has received an order from a Japanese manufacturer to purchase 100,000 units at $65 each. Budgeted costs for 40 million and 45 million units are as follows:
(in thousands, except costs per unit) 40 Million Units 45 Million Units
Manufacturing costs
Direct materials $ 560,000 $ 630,000
Direct labor 220,000 247,500
Factory overhead 1,780,000 1,822,500
Total 2,560,000 2,700,000
Selling and administrative 1,120,000 1,125,000
Total $ 3,680,000 $ 3,825,000
Costs per unit
Manufacturing $ 64.00 $ 60.00
Selling and administrative 28.00 25.00
Total $ 92.00 $ 85.00
Sales to auto manufacturers are priced at $120 per unit, but the sales manager believes the company should aggressively seek the Japanese business even if it results in a loss of $20 per unit. She believes obtaining this order would open up several new markets for the company's product. The general manager commented that the company cannot tighten its belt to absorb the $2,000,000 loss ($20 × 100,000) it would incur if the order is accepted.
(a) Determine the financial implications of accepting the order. (Hint: Use the high-low method to determine variable costs per unit.)
Accepting the offer will Answerdecreaseincrease
profits by $________
(b) How would your analysis differ if the company were operating at capacity? Determine the advantage or disadvantage of accepting the order under full-capacity circumstances.

On June 3, 2020, Pearl Company sold to Ann Mount merchandise having a sales price of $7,400 (cost $6,660) with terms of n/60, f.o.b. shipping point. Pearl estimates that merchandise with a sales value of $740 will be returned. An invoice totaling $100 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Pearl $300 of merchandise containing flaws. Pearl estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $24, paid by Pearl on June 8. On July 16, the company received a check for the balance due from Mount.
Prepare journal entries for Coronado Company to record all the events in June and July. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Partnership XYZ distributed a piece of land in a nonliquidating distribution to Bob, a 50% partner, during the current taxable year. The land had an adjusted basis of $50,000 and a FMV at the date of the distribution of $180,000. Bob has been a partner for 10 years. He had contributed the land to the partnership at formation when its FMV and basis were both equal. He has a basis in the partnership of $40,000 at year end, without taking into consideration the effects of the distribution. Calculate items 1-4 using the information above. Enter the appropriate amounts in the designated cells below. Indicate negative numbers by using a leading minus (-) sign. If no entry is necessary, enter a zero (0). Item Amount
1. Partnership XYZ's recognized gain (loss)
2. Bob's taxable gain (income)
3. Bob's basis in the property
4. Bob's basis in the partnership

The leaders at Hill Corp. execute tasks by assigning complete responsibility to employees and hence, employees are held answerable for their work. The leaders of the firm concentrate on the results of the tasks and not on how the tasks are executed. This manner of achieving goals at Hill Corp. indicates that it has a(n)

Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,988. The FICA tax for social security is 6.2% of the first $128,400 of employee earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,491.37. Her net pay for the month is: (Round your intermediate calculations to two decimal places.) Multiple Choice $6,566.00 $6,809.04 $5,074.63 $7,366.30 $6,375.04

Say one morning you are considering whether to take UBER or riding the train to work. Both mediums would cost you about $4, but you have already paid in advance for the train (since you pay a flat fee at the beginning of the month). If the UBER would take slightly less time than the train ride, and you are mostly concerned with the time it takes you to get to work, you should:________
a) take the train since you already paid for it
b) take the UBER
c) be indifferent between either modes of transportation
d) find another way to get to work

Portions of the financial statements for Clear Transmissions Company are provided below.
CLEAR TRANSMISSIONS COMPANY
Income Statement
For the Year Ended December 31, 2021 ($ in thousands)
Sales $ 2,160
Cost of goods sold 864
Gross margin 1,296
Salaries expense $ 388
Depreciation expense 250
Amortization expense 38
Interest expense 96
Loss on sale of cash equivalents 20 792
Income before taxes 504
Income tax expense 252
Net Income 252
CLEAR TRANSMISSIONS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2021 and 2020 ($ in 000s)
Year
2021 2020 Change
Cash 135 128 7
Accounts receivable 259 274 (15 )
Inventory 464 478 (14 )
Accounts payable 198 190 8
Salaries payable 106 114 (8)
Interest payable 54 48 6
Income tax payable 45 38 7
Required:
Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the indirect method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)

Stanford Corporation has four categories of overhead. The expected overhead costs for each category for next year are as follows:

Maintenance $210,000
Materials handling 90,000
Setups 75,000
Inspection 150,000

The company has been asked to submit a bid for a proposed job. The plant manager believes that obtaining this job would result in new business in future years. Bids are usually based upon full manufacturing cost plus 30 percent. Estimates for the proposed job are as follows:

Direct materials $5000
Direct labor (375 hours) $7500
Number of material moves 4
Number of inspections 3
Number of setups 2
Number of machine-hours 150

Expected activity for the four activity-based cost drivers that would be used is:

Machine-hours 10,000
Material moves 2,000
Setups 100
Quality inspections 4,000


Required:
a. Determine the amount of overhead that would be allocated to the proposed job if 20,000 direct labor-hours are used as the volume-based cost driver.
b. Determine the total costs of the proposed job.
c. Determine the company's bid if the bid is based upon full manufacturing cost plus 30 percent.
d. Determine the amount of overhead that would be applied to the proposed project if activity-based costing is used.

Many college students are more focused on getting a job after graduation than on planning for their careers. Even if you are not currently pursuing your dream job, successfully managing your career requires many career readiness competencies that employers are already looking for, including self-awareness, self-motivation, ownership/accepting responsibility, and openness to change. This activity is important because enhancing these skills will make you a more attractive job candidate in addition to increasing your ability to manage your career.
The goal of this exercise is to challenge your knowledge of tips for managing your career.
1. Angèle breaks her workday into two main chunks. She reserves the first half of the day—the morning, when she is most productive—for activities that are time-consuming, complex, and don't produce any immediate gratification. She then spends the afternoons catching up on emails and other personally satisfying, albeit mindless, work tasks.
(Click to select) Make every day count Stay informed and network Promote yourself Roll with change and disruption Small things matter during interviews
2. Darnell runs into the CEO of his company while attending a conference in another state. Darnell takes the rare one-on-one opportunity to tell the her about the success he and his team have had on a recent company project.
(Click to select) Make every day count Stay informed and network Promote yourself Roll with change and disruption Small things matter during interviews
3. Wesley loves his current job. However, he still views every new project as an opportunity to gain valuable skills that will make him more marketable to other companies.
(Click to select) Make every day count Stay informed and network Promote yourself Roll with change and disruption Small things matter during interviews
4. Esteban treats every interaction at work as a job interview. He wants his coworkers, subordinates, and supervisors to know that he is a dedicated, conscientious, and hard-working person.
(Click to select) Make every day count Stay informed and network Promote yourself Roll with change and disruption Small things matter during interviews
5. Teresa is the VP of Human Resources at her company. Next week she is attending a training to bring her up to speed on the latest in medical marijuana legislation and how it will impact organizational policies in her state.
(Click to select) Make every day count Stay informed and network Promote yourself Roll with change and disruption Small things matter during interviews
6. Luke thinks he is losing ground on the younger workers in his company because he continuously has to ask them for help with technology-related matters. Luke decides to enroll in some seminars on social media management so that he can update his skill set.
(Click to select) Make every day count Stay informed and network Promote yourself Roll with change and disruption Small things matter during interviews
7. In her LinkedIn profile, Reena lists the major projects she has led successfully with her current employer. For each project, she notes the impact that the project had on the organization's financial performance.
(Click to select) Make every day count Stay informed and network Promote yourself Roll with change and disruption Small things matter during interviews
8. Brandy is offered an interview for her dream job. She spends several days emailing back and forth with the interviewer's administrative assistant to get things set up. The assistant is impressed by his interactions with Brandy because she is prompt and respectful in her responses to him. He passes this information along to his boss.
(Click to select) Make every day count Stay informed and network Promote yourself Roll with change and disruption Small things matter during interviews
9. Monique is quitting her job and moving to another state because her partner was offered a tremendous job there. Monique is excited about the opportunity to recharge and refocus her own career.
(Click to select) Make every day count Stay informed and network Promote yourself Roll with change and disruption Small things matter during interviews
10. Khalil researches the norms for attire at each company he plans to interview with. This way he can be certain to dress according to specific organizational expectations.
(Click to select)
Make every day count
Stay informed and network
Promote yourself
Roll with change and disruption
Small things matter during interviews

Malibu Corporation has monthly fixed costs of $59,000. It sells two products for which it has provided the following information. Sales Price Contribution Margin Product 1 $ 15 $ 9 Product 2 20 4 a. What total monthly sales revenue is required to break even if the relative sales mix is 30 percent for Product 1 and 70 percent for Product 2

Matrix Inc. calculates cost for an equivalent unit of production using weighted average method . Data for July: Work in process inventory, July 1 (36,000 units) Direct materials (100 % completed)$122,400 Conversion (50 % completed) 76,800 Balance in work in process inventory, July 1$199,200 Units started during July 90,000 Units completed and transferred 102,000 Work in process inventory, July 31 24,000 Direct materials (100% completed) Conversion (50% completed) Cost incurred during July: Direct materials$180,000 Conversion costs 288,000 The cost of goods completed and transferred out under the weighted-average method is calculated to be: A. $96,000 B. $476,400 C. $571,200 D. $484,000

Harvey Hotels has provided a defined benefit pension plan for its employees for several years. At the end of the most recent year, the following information was available with regard to the plan: service cost: $6.2 million, expected return on plan assets: $1.2 million, actual return on plan assets: $1 million, interest cost: $1.4 million, payments to retired employees: $2 million, and amortization of prior service cost (created when the pension plan was amended causing a drop in the projected benefit obligation): $1.1 million. What amount should Harvey Hotels report as pension expense in its income statement for the year? Group of answer choices $7.5 million $8.7 million $7.7 million $1.4 million

g Excess reserves refer to the Multiple Choice difference between a bank's vault cash and its reserves deposited at the Federal Reserve Bank. minimum amount of actual reserves a bank must keep on hand to back up its customers deposits. difference between actual reserves and loans. difference between actual reserves and required reserves.

if the company chooses the lease option, it will have to pay an immediate deposit of 25000 to cover any future damages to the equipment. deposit is refundable at the end of the lease term. the annual lease payments are made at the end of each year. based on a net present value analysis with a discount rate of 20% what is the financial advantage (disadvantage) of buying the equipment rather than leasing it