INCOME STATEMENT WITH DEPARTMENTAL GROSS PROFIT AND OPERATING INCOME Bacon and Hand Distributors has

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INCOME STATEMENT WITH DEPARTMENTAL GROSS PROFIT AND OPERATING INCOME Bacon and Hand Distributors has divided its business into two departments: retail sales and wholesale sales. The following information is provided for the year ended December 31, 20–:Net sales, retail sales department ……….$570,000Net sales, wholesale sales department ……….830,000Cost of goods sold, retail sales department ……319,200Cost of goods sold, wholesale sales department ….398,400Warehouse wages expense ………….110,000Truck drivers’ wages expense ………….90,500Advertising expense …………….70,000Warehouse lease expense …………..40,000Depreciation expense—delivery equipment …….12,000Other operating expenses ………….130,000REQUIRED1. Prepare an income statement showing departmental gross profit and total operating income.2. Calculate departmental gross profit percentages.View Solution:
INCOME STATEMENT WITH DEPARTMENTAL GROSS PROFIT AND OPERATING IN

Cinders Marketing Corporation reported the following stockholders equity at December Cinders…

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Cinders Marketing Corporation reported the following stockholders equity at December
Cinders Marketing Corporation reported the following stockholders’ equity at December 31 (adapted and in millions):

Common stock………………………………$ 281

Additional paid-in capital…………………….275

Retained earnings……………………………2,129

Treasury stock………………………………(611)

Total stockholders equity………………….$2,074

During the next year. Cinders Marketing purchased treasury stock at a cost of $28 million and resold treasury stock for $9 million (this treasury stock had cost Cinders Marketing $3 million). Record the purchase and resale of Cinders Marketing’s treasury stock. Overall, how much did stockholders’ equity increase or decrease as a result of the two treasury-stock transactions?

Cinders Marketing Corporation reported the following stockholders equity at December

Question 1: Details of a purchase invoice and related credit memorandum are summarized as follows:In

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Question 1: Details of a purchase invoice and related credit memorandum are summarized as follows:Invoice: Cost of merchandise $5,000 Prepaid transportation charge added to invoice: $100 Terms, FOB Shipping Point, 1/10, n/30 Credit Memo: Cost of merchandise returned $1,500 Assume that the credit memorandum was received prior to payment and that the invoice is paid within the discount period. Determine the following:(a) Dollar amount of the cash discount allowed.(b) Amount to be paid by the purchaser if the discount is taken.(c) Cost of their merchandise to the purchaser if the discount is not taken.Be sure to label each answer clearly and show all work. If work is not shown, full credit will not be awarded for this problem.Question 2: Explain the purpose of the following: (a) Purchases Journal (b) General JournalExplain the purpose of the following: (a) Purchases Journal (b) General Journal

Beta and standard deviation differ as risk measures in that beta measures:

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Beta and standard deviation differ as risk measures in that beta measures:

a. Only unsystematic risk, while standard deviation measures total risk.

b. Only systematic risk, while standard deviation measures total risk.

c. Both systematic and unsystematic risk, while standard deviation measures only unsystematic risk.

d. Both systematic and unsystematic risk, while standard deviation measures only systematic risk

In 2012 Annie invests $55,000 in an activity for which she is not a material participant. Annie has

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In 2012 Annie invests $55,000 in an activity for which she is not a material participant. Annie has no other sources of income. Annie’s losses from the activity are as follows:Income/(Loss)2012 ($45,000) 2013 ($20,000)2014 $30,000Calculate Annie’s deductible loss, basis, and any losses suspended under the at-risk and/or passive activity loss rules each year.

Verne Cova Company has the following balances in selected accounts on December 31, 2015. All the… 1 answer below »

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Verne Cova Company has the following balances in selected accounts on December 31, 2015. All the accounts have normal balances. The information below has been gathered at December 31, 2015. Verne Cova Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2015. A count of supplies on December 31, 2015, indicates that supplies of $900 are on hand. Depreciation on the equipment for 2015 is $1,000. Verne Cova Company paid $2, 100 for 12 months of insurance coverage on June 1, 2015. On December 1, 2015. Verne Cova collected $30,000 for consulting services to be performed from December 1, 2015, through March 31, 2016. Verne Cova performed consulting services for a client in December 2015. The client will be billed $4, 200. Verne Cova Company pays its employees total salaries of $9,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2015.

Brief Exercise 8-13At July 31, Ramirez Company has the following bank information: cash balance per

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Brief Exercise 8-13At July 31, Ramirez Company has the following bank information: cash balance per bank $7,745, outstanding checks $758, deposits in transit $1,511, and a bank service charge $25.Determine the adjusted cash balance per bank at July 31.The adjusted cash balance per bank$

American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Ba… 1 answer below »

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American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2016. In payment for the $4.5 million machine, American Food Services issued a four-year installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 10%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required: 1.

Prepare the journal entry for American Food Services’ purchase of the machine on January 1, 2016. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field. Enter your answers in whole dollars.)

     

2.

Prepare an amortization schedule for the four-year term of the installment note. (Enter your answers in whole dollars.

     
3.

Prepare the journal entry for the first installment payment on December 31, 2016. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field. Enter your answers in whole dollars.)

      
4.

Prepare the journal entry for the third installment payment on December 31, 2018. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field. Enter your answers in whole dollars.)

     

Develop brief answers to each of the following questions:1.

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Develop brief answers to each of the following questions:

1. Why is it essential that management compensation, including bonuses, be linked to financial goals and strategies that achieve shareholder value?

2. How are past performance and industry norms useful in evaluating a company’s performance? What are their limitations?

3. In a five-year trend analysis, why do the dollar values remain the same for their respective years while the percentages usually change when a new five-year period is chosen?

 

Which of the following is not true about a 10% stock dividend?

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Which of the following is not true about a 10% stock dividend?

a. Par value decreases.

b. Paid-in Capital increases.

c. Retained Earnings decreases.

d. The market value of the stock is needed to record the stock dividend.

e. Total stockholders’ equity remains the same.