Accounting Homework Problem Need Help ASAP
The mortgage payable is payable in semiannual installments of $4,800 each plus interest. The next payment is due on October 31, 2013. Interest has been properly accrued and is included in accrued expenses.
Balance sheet is June 30, 2013
Accrued Expenses are 46,000
I need help in what to put for current maturities of long term debt in the current liabilities section and also what amount to put for mortgage payable in long term liabilities
Accounting Homework - Calculate Income (loss) from operations of discontinued comp.
I have been stuck on this for so long, I need help in how to calculate income (loss) from operations of discontinued operations for 2013 and 2012. Please breakdown with steps , thanks so much .
Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):
2013 2012
Sales $ 4,450,000 $ 3,550,000
Cost of goods sold 2,870,000 2,010,000
Administrative expenses 810,000 685,000
Selling expenses 370,000 322,000
Interest revenue 151,000 141,000
Interest expense 202,000 202,000
Loss on sale of assets of discontinued component 54,000 —
On July 1, 2013, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2013, for $54,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:
1/1/13-9/30/13 2012
Sales $ 410,000 $ 510,000
Cost of goods sold (295,000 ) (326,000 )
Administrative expenses (51,000 ) (41,000 )
Selling expenses (21,000 ) (31,000 )
Operating income before taxes $ 43,000 $ 112,000
In addition to the account balances above, several events occurred during 2013 that have not yet been reflected in the above accounts:
1. A fire caused $51,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event.
2. An earthquake caused $101,000 in property damage to one of Reed's factories. The amount of the loss is material and the event is considered unusual and infrequent.
3. Inventory that had cost $41,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $5,000.
4. Income taxes have not yet been accrued.
Required:
Prepare a multiple-step income statement for the Reed Company for 2013, showing 2012 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 400,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign.Round EPS answers to 2 decimal places.)
Accounting Homework Need Help ASAP
I don't know how to calculate extraordinary loss I thought it would have been 101,000
Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):
2013 2012
Sales $ 4,450,000 $ 3,550,000
Cost of goods sold 2,870,000 2,010,000
Administrative expenses 810,000 685,000
Selling expenses 370,000 322,000
Interest revenue 151,000 141,000
Interest expense 202,000 202,000
Loss on sale of assets of discontinued component 54,000 —
On July 1, 2013, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2013, for $54,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:
1/1/13-9/30/13 2012
Sales $ 410,000 $ 510,000
Cost of goods sold (295,000 ) (326,000 )
Administrative expenses (51,000 ) (41,000 )
Selling expenses (21,000 ) (31,000 )
Operating income before taxes $ 43,000 $ 112,000
In addition to the account balances above, several events occurred during 2013 that have not yet been reflected in the above accounts:
1. A fire caused $51,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event.
2. An earthquake caused $101,000 in property damage to one of Reed’s factories. The amount of the loss is material and the event is considered unusual and infrequent.
3. Inventory that had cost $41,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $5,000.
4. Income taxes have not yet been accrued.
Required:
Prepare a multiple-step income statement for the Reed Company for 2013, showing 2012 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 400,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign.Round EPS answers to 2 decimal places.)
accounting problem someone please help
Hi, I need help in calculating the loss from earthquake I put 101,000 , and (101,000) but this was marked wrong. I am pasting all the info I was given :
Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):
2013 2012
Sales $ 4,450,000 $ 3,550,000
Cost of goods sold 2,870,000 2,010,000
Administrative expenses 810,000 685,000
Selling expenses 370,000 322,000
Interest revenue 151,000 141,000
Interest expense 202,000 202,000
Loss on sale of assets of discontinued component 54,000 —
On July 1, 2013, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2013, for $54,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:
1/1/13-9/30/13 2012
Sales $ 410,000 $ 510,000
Cost of goods sold (295,000 ) (326,000 )
Administrative expenses (51,000 ) (41,000 )
Selling expenses (21,000 ) (31,000 )
Operating income before taxes $ 43,000 $ 112,000
In addition to the account balances above, several events occurred during 2013 that have not yet been reflected in the above accounts:
1. A fire caused $51,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event.
2. An earthquake caused $101,000 in property damage to one of Reed’s factories. The amount of the loss is material and the event is considered unusual and infrequent.
3. Inventory that had cost $41,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $5,000.
4. Income taxes have not yet been accrued.
Required:
Prepare a multiple-step income statement for the Reed Company for 2013, showing 2012 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 400,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign.Round EPS answers to 2 decimal places.)
Income Statement Problem need help (work shown)
On May 1, 2011 Garcia paid $1200 for 12 month rent and recorded transaction in income statement account.
The question asked for answer to adjusting entry on December 31, 2011 and answer was $400 debit to prepaid rent.
I did $1200/12 = 100 per month but don't see where 400 would come from
Current Asset Calculation
Can someone please guide me through with steps? I am confused on how $12,000 is obtained:
My thoughts/work : I did not get very far because I don't know how long the $1000 is being paid for, it says per month, but is it for 1/2 years? 36,000 - 1000 = 35,000 is random thought in my head, but I just can't see how the 12,000 is derived.
On January 1st of current year, Lafferty signs contract to rent building for $1000 per month. On that date, Lafferty pays $36,000 for rent. What is amount of prepaid rent that should be classified as current asset?
Thanks in advance :)
Accounting Calculation Non Current Liability
On January 1 , Year 1, Reinquist borrowed $100,000 by signing 5 year N/P with annual interest 8%. Terms of contract require Reinquist to repay principal over 5 years with payment of $20,000 at end of each year. On December 31, Reinquist made first payment plus interest. On January 1, Year 2 what portion of note should be classified as non-current liabilities?
Answer was $60,000 but I don't get how or why.
Accounting Discontinued Operation Question
Hi I need some help with steps on this, I don't know how to set this up right, and get the answer of $84,000 gain.
Carol has component that is discontinued operation. Revenues : 100,000 Expenses : 160,000. Component sold with resulting gain of $200,000. Tax rate is 40%. What is total gain/ loss on discontinued operations (net-of-tax effects) that will be reported on income statement?
My work : I thought I would do 100,000 - 160,000 and then subtract that from 200,000 and find 40% of that but this was wrong
Income Tax Benefit Question Accounting
Hi I am stuck on another problem , my work : I always think I have to subtract revenues minus expenses and then subtract that from loss/gain.
Crimson Corp has component that is discontinued operations. Revenues : 200,000 Expenses : 240,000. Component sold as resulting loss : 160,000. Tax Rate : 30%. What is income tax benefit for discontinued operations?
Answer was 60,000 but I don't get how or why?
accounting question college
On September 1, 2009, Jacob Furniture Mart enters into a tentative agreement to sell the assets of its office equipment division. This division comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes. The division's contribution to Jacob's operating income for 2009 was a $3 million loss before taxes. Jacob has an average tax rate of 30%.
Required: Consider independently the appropriate accounting by Jacob under the three scenarios below.
123. Scenario 1: Assume that Jacob sold the division's assets on December 31, 2009, for $24 million. The book value of the division's assets was $19 million at that date. Under these assumptions, what would Jacob report in its 2009 income statement regarding the office equipment division? Explain where this information would be presented.
Scenario 1: Jacob would report $1.4 million ($2,000,000 net of $600,000 in taxes) as income from discontinued operations. This income would be reported as a separate item between income from continuing operations and net income in Jacob's income statement.
I don't get where the 2,000,000 comes from
Accounting Installment Sales Need Help
Hi, I have no idea how to solve this and it is due tomorrow , please help with steps, I thought gross profit would have been 120,000
Ajax Company appropriately accounts for certain sales using the installment sales method. The perpetual inventory system is used. Information related to installment sales for 2013 and 2014 is as follows:
2013 2014
Sales $ 300,000 $ 400,000
Cost of sales 180,000 280,000
Customer collections on:
2013 sales 120,000 100,000
2014 sales 150,000
Required:
1.
Calculate the amount of gross profit that would be recognized each year from installment sales.
Accounting Effective Interest Rate Question
I need some help on this I get 12.77 % but this is marked wrong.
On June 30, 2013, the Esquire Company sold some merchandise to a customer for $30,000 and agreed to accept as payment a noninterest-bearing note with an 8% discount rate requiring the payment of $30,000 on March 31, 2014. The 8% rate is appropriate in this situation.
What is the effective interest rate on the note?
I did 1800 (discount on note receivable) divided by sales revenue of 28,200 and multiplied by 2 and got 12.77
Accounting HW Question Need Help Now
Hi I tried several answers, but I cannot figure out the right answer, please help with detailed steps, thanks in advance.
JWS Transport Company’s employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately (that is, an employee is entitled to the pay even if employment terminates). During 2013, total wages paid to employees equaled $404,000, including $4,000 for vacations actually taken in 2013 but not including vacations related to 2013 that will be taken in 2014. All vacations earned before 2013 were taken before January 1, 2013. No accrual entries have been made for the vacations. No overtime premium and no bonuses were paid during the period.
Required:
Prepare the appropriate adjusting entry for vacations earned but not taken in 2013
I tried 404,000 , 400,000, 408,000
Accounting adjusting entry question
For the question : record redemption of gift certificates in 2013, I put liability gift certificates as 1300 which is marked correct but when I put a credit to cash for 1300 it shows that cash is right account to put but 1300 is wrong, is there another account I have to add between?
Please help with steps :
Bavarian Bar and Grill opened for business in November 2013. During its first two months of operation, the restaurant sold gift certificates in various amounts totaling $5,200, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 80% of gift certificates are redeemed within one year. Certificates totaling $1,300 were presented for redemption during 2013 for meals having a total price of $2,100. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift certificates) are purchased. Sales taxes will be remitted in January.
Required:
1.
Prepare the appropriate journal entries (in summary form) for the gift certificates sold during 2013 (keeping in mind that, in actuality, each sale of a gift certificate or a meal would be recorded individually). (If no entry is required for a event, select "No journal entry required" in the first account field.)
Accounting adjusting entry question #2
I need help finding the current and noncurrent portions of liability gift certificates.
I put 3900 for current but was marked wrong, and 1300 for noncurrent and was marked wrong.
Bavarian Bar and Grill opened for business in November 2013. During its first two months of operation, the restaurant sold gift certificates in various amounts totaling $5,200, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 80% of gift certificates are redeemed within one year. Certificates totaling $1,300 were presented for redemption during 2013 for meals having a total price of $2,100. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift certificates) are purchased. Sales taxes will be remitted in January.
Current and Noncurrent Accounting Question
I need help finding the current and noncurrent portions of liability gift certificates.
I put 3900 for current but was marked wrong, and 1300 for noncurrent and was marked wrong.
Bavarian Bar and Grill opened for business in November 2013. During its first two months of operation, the restaurant sold gift certificates in various amounts totaling $5,200, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 80% of gift certificates are redeemed within one year. Certificates totaling $1,300 were presented for redemption during 2013 for meals having a total price of $2,100. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift certificates) are purchased. Sales taxes will be remitted in January.
Accounting allocation problem need help
Hi I need some help with this problem, I don't understand where 10/12 comes from
On November 1, 2013, Manufacturing rented a portion of its factory to a tenant for $30,000 per year, payable in advance. The payment for the 12 months ended October 31, 2014, was received as required and was credited to rent revenue.
The adjusting entry was shown as a debit to rent revenue calculated as (10/12 x 30,000) which comes out to be 25,000 and a credit to unearned rent revenue for 25,000.
Please say why every step is so.
Accounting realized gross profit question
I don't get how/why this answer is so, please show with steps how to solve :
Mickey uses installment sales method to recognize revenue. Mickey sold goods to customers for $10,000 on 5 year installment note. The cost of goods sold was $7000. Which of following will be included in journal entry when Mickey receives installment payment of $2000 at end of year 1?
Answer was credit realized gross profit $600 and credit installment receivables $2000 but I don't get how/why.
Thanks
Gross profit recognized accounting need help
ABC Company sold tract of land for $1,000,000. Sale agreement requires buyer to make 5 annual payments of $200,000. Land cost $400,000 to develop. ABC uses installment sales method to recognize revenue. What amount of gross profit is recognized when first payment is made?
Answer was $120,000 but I don't get why
My work : I know 1,000,000 - 400,000 = 600,000 but this doesn't get me anywhere
Discounting note receivable accounting
Riley has $100,000 note receivable from customer. The note receivable is 8% note , due in 9 months. Three months after accepting note , Riley discounts note receivable at Third Bank at discount rate of 10%. What are cash proceeds of discounted note?
Answer was $100,700 but I don't get why
Please explain with steps