ACC 303 Unit 1 – Chapter 1 Homework Assignment 1 Cash flows during the first yea

ACC 303 Unit 1 – Chapter 1 Homework Assignment 1 Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $295,000; Cash paid for rent, $31,000; Cash paid to employees for services rendered during the year, $111,000; Cash paid for utilities, $41,000. In addition, you determine that customers owed the company $51,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $1,100 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.   2 Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.   Year 1 Year 2 Amounts billed to clients for services rendered $ 174,000   $ 224,000   Cash collected from clients   162,000     192,000   Cash disbursements             Salaries paid to employees for services rendered during the year   92,000     102,000   Utilities   31,000     42,000   Purchase of insurance policy   60,600     0               In addition, you learn that the company incurred utility costs of $36,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period. Required: 1. & 3.Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. 2. Prepare an income statement for each year according to the accrual accounting model.   Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. (Net cash outflows should be indicated by a minus sign.) Prepare an income statement for each year according to the accrual accounting model.     3 Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair each item from List A with the item from List B that is most appropriately associated with it. List A List B 1. Expense recognition   2. Periodicity   3. Historical cost principle   4. Materiality   5. Revenue recognition   6. Going concern assumption   7. Monetary unit assumption   8. Economic entity assumption   9. Full-disclosure principle     4 Listed below are several statements that relate to financial accounting and reporting. Identify the basic assumption, broad accounting principle, or component that applies to each statement.     1. Jim Marley is the sole owner of Marley’s Appliances. Jim borrowed $100,000 to buy a new home to be used as his personal residence. This liability was not recorded in the records of Marley’s Appliances.   2. Apple Inc. distributes an annual report to its shareholders.   3. Hewlett-Packard Corporation depreciates machinery and equipment over their useful lives.   4. Crosby Company lists land on its balance sheet at $120,000, its original purchase price, even though the land has a current fair value of $200,000.   5. Honeywell International Inc. records revenue when products are delivered to customers, even though the cash has not yet been received.   6. Liquidation values are not normally reported in financial statements even though many companies do go out of business.   7. IBM Corporation, a multibillion dollar company, purchased some small tools at a cost of $800. Even though the tools will be used for a number of years, the company recorded the purchase as an expense.     5 For each of the following situations, state whether you agree or disagree with the financial reporting practice employed, and briefly explain the reason for your answer. The controller of the Dumars Corporation increased the carrying value of land from its original cost of $2 million to its recently appraised value of $3.5 million. The president of Vosburgh Industries asked the company controller to charge miscellaneous expense for the purchase of an automobile to be used solely for personal use. At the end of its 2018 fiscal year, Dower, Inc., received an order from a customer for $45,350. The merchandise will ship early in 2019. Because the sale was made to a long-time customer, the controller recorded the sale in 2018. At the beginning of its 2018 fiscal year, Rossi Imports paid $48,000 for a two-year lease on warehouse space. Rossi recorded the expenditure as an asset to be expensed equally over the two-year period of the lease. The Reliable Tire Company included a note in its financial statements that described a pending lawsuit against the company. The Hughes Corporation, a company whose securities are publicly traded, prepares monthly, quarterly, and annual financial statements for internal use but disseminates to external users only the annual financial statements.   ACC 303 Unit 2 – Chapter 2 Homework Assignment 1 The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded. On December 1, 2017, the company paid its annual fire insurance premium of $5,600 for the year beginning December 1 and debited prepaid insurance. On August 31, 2017, the company borrowed $92,500 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2018. Mazzanti owns a warehouse that it rents to another company. On January 1, 2018, Mazzanti collected $23,200 representing rent for the 2018 calendar year and credited deferred rent revenue. Depreciation on the office building is $17,400 for the fiscal year. Employee salaries and wages for the month of June 2018 of $18,000 will be paid on July 20, 2018. Prepare the necessary year-end adjusting entries at the end of June 30, 2018, for the above situations. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)   2 The following transactions occurred during 2018 for the Beehive Honey Corporation: Feb.   1   Borrowed $20,000 from a bank and signed a note. Principal and interest at 9% will be paid on January 31, 2019. Apr.   1   Paid $5,200 to an insurance company for a two-year fire insurance policy. July   17   Purchased supplies costing $3,600 on account. The company records supplies purchased in an asset account. At the year-end on December 31, 2018, supplies costing supplies costing $1,650 remained on hand. Nov.   1   A customer borrowed $8,400 and signed a note requiring the customer to pay principal and 7% interest on April 30, 2019. Required: 1. Record each transaction in general journal form. 2. Prepare any necessary adjusting entries at the year-end on December 31, 2018. No adjusting entries were recorded during the year for any item.   Record each transaction in general journal form.(If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)   Prepare any necessary adjusting entries at the December 31, 2018, year-end. No adjusting entries were recorded during the year for any item.(Do not round intermediate calculations. If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)   3 Indicate whether a debit will increase (I) or decrease (D) each of the following accounts listed in items 1 through 15:   4 The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances: Account Title Debits   Credits   Cash 32,000       Accounts receivable 12,500       Equipment 20,000       Accumulated depreciation     6,000   Salaries payable     7,250   Common stock     43,500   Retained earnings     7,750   Total 64,500   64,500           The following is a summary of the transactions for the year: Sales of services, $112,000, of which $33,600 was on credit. Collected on accounts receivable, $23,500. Issued shares of common stock in exchange for $10,500 in cash. Paid salaries, $40,750 (of which $7,250 was for salaries payable). Paid miscellaneous expenses, $22,000. Purchased equipment for $12,500 in cash. Paid $2,700 in cash dividends to shareholders. Accrued salaries at year-end amounted to $815. Depreciation for the year on the equipment is $2,000. Required: 2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed. 3. Post the transactions, adjusting and closing entries into the appropriate t-accounts. 4. Prepare an unadjusted trial balance. 6. Prepare an adjusted trial balance. 7-a. Prepare an income statement for 2018. 7-b. Prepare a balance sheet as of December 31, 2018. 9. Prepare a post-closing trial balance.   Req 2 5 and 8 Prepare the summary, adjusting and closing entries for each of the transactions listed.(If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)   Req 3 Post the transactions, adjusting and closing entries into the appropriate t-accounts. (Enter the letter of the transaction in the column next to the amount.) Req 4 Prepare an unadjusted trial balance   Req 6 Prepare an adjusted trial balance.   Req 7A Prepare an income statement for 2018. Req 7B Prepare a balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) Req 9 Prepare a post-closing trial balance.   5 Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2018, appears below. December 31 is the company’s fiscal year-end. The company uses the perpetual inventory system. Account Title Debits   Credits Cash   22,500           Accounts receivable   31,700           Supplies   0           Prepaid rent   0           Inventory   57,000           Office equipment   73,400           Accumulated depreciation—office equipment           9,200   Accounts payable           25,300   Salaries and wages payable           2,200   Note payable           22,000   Common stock           72,000   Retained earnings           20,050   Sales revenue           172,000   Cost of goods sold   87,000           Interest expense   0           Salaries and wages expense   31,550           Rent expense   13,200           Supplies expense   1,200           Utility expense   5,200           Totals   322,750       322,750                 Information necessary to prepare the year-end adjusting entries appears below. The office equipment was purchased in 2016 and is being depreciated using the straight-line method over an eight-year useful life with no salvage value. Accrued salaries and wages at year-end should be $3,300. The company borrowed $22,000 on September 1, 2018. The principal is due to be repaid in 12 years. Interest is payable twice a year on each August 31 and February 28 at an annual rate of 12%. The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $420. Prepaid rent at year-end should be $1,800. Required: Prepare the necessary December 31, 2018, adjusting entries. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field. Do not round intermediate calculations.)   ACC 303 Unit 3 – Chapter 3 Homework Assignment 1 The following is a December 31, 2018, post-closing trial balance for Culver City Lighting, Inc. Account Title Debits   Credits   Cash 73,000       Accounts receivable 57,000       Inventories 63,000       Prepaid insurance 33,000       Equipment 140,000       Accumulated depreciation—equipment     52,000   Patent, net 58,000       Accounts payable     21,000   Interest payable     11,000   Note payable (due in 10, equal annual installments)     190,000   Common stock     88,000   Retained earnings     62,000   Totals 424,000   424,000           a. Calculate the current ratio. b. Calculate the acid-test ratio. c. Calculate the debt to equity ratio.   2 The current asset section of Stibbe Pharmaceutical Company’s balance sheet included cash of $30,000 and accounts receivable of $50,000. The only other current asset is inventories. The company’s current ratio is 2.5 and its acid-test ratio is 1.6. Determine the ending balance in inventories and total current liabilities.     3 The 2018 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2018 ($ in 000s) Assets       Cash $ 370   Short-term investments   320   Accounts receivable   370   Inventories   340   Property, plant, and equipment (net)   2,700   Total assets $ 4,100   Liabilities and Shareholders’ Equity       Current liabilities $ 570   Long-term liabilities   520   Paid-in capital   1,600   Retained earnings   1,410   Total liabilities and shareholders’ equity $ 4,100         The company’s 2018 income statement reported the following amounts ($ in 000s):         Net sales $ 6,300   Interest expense   50   Income tax expense   160   Net income   330         Required: 1. Calculate the current ratio. (Round your answer to 2 decimal places.) 2. Calculate the acid-test ratio. (Round your answer to 3 decimal places.) 3. Calculate the debt to equity ratio. (Round your answer to 2 decimal places.) 4. Calculate the times interest earned ratio. (Round your answer to 1 decimal place.)     4 The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title Debits Credits Cash 40,000       Accounts receivable 34,000       Inventories 75,000       Prepaid rent for the next 8 months 16,000       Marketable securities (short term) 10,000       Machinery 145,000       Accumulated depreciation—machinery     11,000   Patent (net of amortization) 83,000       Accounts payable     8,000   Wages payable     4,000   Taxes payable     32,000   Bonds payable (due in 10 years)     200,000   Common stock     100,000   Retained earnings     48,000   Totals 403,000   403,000           Required: Prepare a classified balance sheet for Jackson Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)   5 The following are typical disclosures that would appear in the notes accompanying financial statements. For each of the items listed, indicate where the disclosure would likely appear—either in (A) the significant accounting policies note or (B) a separate note. (The first item is shown as an example.)   6 Parkman Sporting Goods is preparing its annual report for its 2018 fiscal year. The company’s controller has asked for your help in determining how best to disclose information about the following items: Required: Indicate whether the above items should be disclosed (A) in the summary of significant accounting policies note, (B) in a separate disclosure note, or (C) on the face of the balance sheet.     ACC 303 Unit 4 – Chapter 4 Homework Assignment 1 The following are partial income statement account balances taken from the December 31, 2018, year-end trial balance of White and Sons, Inc.: restructuring costs, $430,000; interest revenue, $53,000; before-tax loss on discontinued operations, $530,000; and loss on sale of investments, $63,000. Income tax expense has not yet been recorded. The income tax rate is 40%. Prepare the lower portion of the 2018 income statement beginning with $915,000 income from continuing operations before income taxes. Include appropriate EPS disclosures. The company had 150,000 shares of common stock outstanding throughout the year.(Amounts to be deducted should be indicated with a minus sign. Round “EPS” answers to 2 decimal places.) 2 The Esposito Import Company had 1 million shares of common stock outstanding during 2018. Its income statement reported the following items: income from continuing operations, $6 million; loss from discontinued operations, $1.9 million. All of these amounts are net of tax. Required: Prepare the 2018 EPS presentation for the Esposito Import Company. (Amounts to be deducted should be indicated with a minus sign. Round your answers to 2 decimal places.) 3 Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2018 ($ in thousands) Sales revenue               $ 15,000     Operating expenses:                       Cost of goods sold   $ 5,000                 Depreciation     400                 Insurance     900                 Administrative and other     3,400                 Total operating expenses                 9,700     Income before income taxes                 5,300     Income tax expense                 2,120     Net income               $ 3,180     Balance Sheet Information ($ in thousands) Dec. 31,2018   Dec. 31, 2017                 Assets:                       Cash   $ 620         $ 360     Accounts receivable     830           990     Inventory     810           760     Prepaid insurance     130           35     Plant and equipment     3,200           2,600     Less: Accumulated depreciation     (1,160 )         (760 )   Total assets   $ 4,430         $ 3,985     Liabilities and Shareholders' Equity:                       Accounts payable   $ 380         $ 520     Payables for administrative and other expenses     380           560     Income taxes payable     360           310     Note payable (due 12/31/2019)     1,380           950     Common stock     1,100           960     Retained earnings     830           685     Total liabilities and shareholders' equity   $ 4,430         $ 3,985                           Required: Prepare Tiger’s statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have to calculate dividend payments). (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)   4 Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2018 ($ in thousands) Sales revenue               $ 7,720     Operating expenses:                       Cost of goods sold   $ 3,480                 Depreciation     360                 Insurance     220                 Administrative and other     1,920                 Total operating expenses                 5,980     Income before income taxes                 1,740     Income tax expense                 720     Net income               $ 1,020     Balance Sheet Information ($ in thousands) Dec. 31,2018   Dec. 31, 2017                 Assets:                       Cash   $ 420         $ 320     Accounts receivable     870           950     Inventory     760           720     Prepaid insurance     110           80     Plant and equipment     2,700           2,400     Less: Accumulated depreciation     (1,080 )         (720 )   Total assets   $ 3,780         $ 3,750     Liabilities and Shareholders' Equity:                       Accounts payable   $ 420         $ 480     Payables for administrative and other expenses     420           520     Income taxes payable     320           270     Note payable (due 12/31/2019)     920           720     Common stock     1,020           920     Retained earnings     680           840     Total liabilities and shareholders' equity   $ 3,780         $ 3,750                           Required: Prepare the cash flows from operating activities section of Tiger's 2018 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable. (Hint: Use T-accounts for the pertinent items to isolate the information needed for the statement.) (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)   5 Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):     2018   2017 Sales $ 4,900,000 $ 4,000,000 Cost of goods sold   2,960,000   2,100,000 Administrative expenses   900,000   775,000 Selling expenses   460,000   412,000 Interest revenue   160,000   150,000 Interest expense   220,000   220,000 Loss on sale of assets of discontinued component   90,000   —         On July 1, 2018, 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, 2018, for $90,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:   1/1/18-9/30/18   2017   Sales   $ 500,000       $ 600,000   Cost of goods sold     (340,000 )       (380,000 ) Administrative expenses     (60,000 )       (50,000 ) Selling expenses     (30,000 )       (40,000 ) Operating income before taxes   $ 70,000       $ 130,000                     In addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: A fire caused $60,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event. Inventory that had cost $50,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $4,000. Income taxes have not yet been recorded. Required: Prepare a multiple-step income statement for the Reed Company for 2018, showing 2017 information in comparative format, including income taxes computed at 20% and EPS disclosures assuming 800,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)     6 For the year ending December 31, 2018, Benson Corporation had income from continuing operations before taxes of $1,400,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. In November 2018, Benson sold its Pancake Village restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2018. The income from operations of the chain from January 1, 2018, through November was $180,000 and the loss on sale of the chain’s assets was $340,000. In 2018, Benson sold one of its six factories for $1,600,000. At the time of the sale, the factory had a book value of $1,300,000. The factory was not considered a component of the entity. In 2016, Benson’s accountant omitted the annual adjustment for patent amortization expense of $140,000. The error was not discovered until December 2018. Required: Prepare Benson’s income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2018. Assume an income tax rate of 30%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)     ACC 303 Unit 5 – Chapter 5 Homework Assignment 1 On July 1, 2018, Apache Company, a real estate developer, sold a parcel of land to a construction company for $3,610,000. The book value of the land on Apache’s books was $1,520,000. Terms of the sale required a down payment of $190,000 and 18 annual payments of $190,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2019. How much revenue will Apache recognize for the sale (ignoring interest), assuming that it recognizes revenue at the point in time at which it transfers the land to the construction company? (Leave no cells blank – be certain to enter “0” wherever required.)   2 Sarjit Systems sold software to a customer for $95,000. As part of the contract, Sarjit promises to provide “free” technical support over the next six months. Sarjit sells the same software without technical support for $82,500 and a stand-alone six-month technical support contract for $27,500, so these products would sell for $110,000 if sold separately. Prepare Sarjit’s journal entry to record the sale of the software. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)   3 Aria Perfume, Inc., sold 3,820 boxes of white musk soap during January of 2018 at the price of $120 per box. The company offers a full refund to unsatisfied customers for any product returned within 30 days from the date of purchase. Based on historical experience, Aria expects that 2% of sales will be returned. How many performance obligations are there in each sale of a box of soap? How much revenue should Aria recognize in January?   4 GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2018, GoodBuy sold $1,030,000 of gift cards, and $890,000 of the gift cards were redeemed for products. As of December 31, 2018, $12,000 of the remaining gift cards had passed the date at which GoodBuy concludes that the cards will never be redeemed. How much gift card revenue should GoodBuy recognize in 2018?   5 A construction company entered into a fixed-price contract to build an office building for $22 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company’s income statement in the first year of the contract? (Enter your answer in whole dollars.)   6 Ski West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $75. Adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December 1 through April 30. Ski West expects its season pass holders to use their passes equally throughout the season. The company’s fiscal year ends on December 31. On November 6, 2018, Jake Lawson purchased a season pass for $405. Required: 1. When should Ski West recognize revenue from the sale of its season passes? 2. Prepare the appropriate journal entries that Ski West would record on November 6 and December 31. 3. What will be included in the Ski West 2018 income statement and balance sheet related to the sale of the season pass to Jake Lawson? · Required 1 When should Ski West recognize revenue from the sale of its season passes? · Required 2 Prepare the appropriate journal entries that Ski West would record on November 6 and December 31.(If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) · Required 3 What will be included in the Ski West 2018 income statement and balance sheet related to the sale of the season pass to Jake Lawson?   7 Video Planet (“VP”) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $2,550, sells the remote separately for $150, and offers the installation service separately for $300. The entire package sells for $2,900. Required: How much revenue would be allocated to the TV, the remote, and the installation service?   ACC 303 Unit 6 – Chapter 6 Homework Assignment 1 Fran Smith has two investment opportunities. The interest rate for both investments is 44%. Interest on the first investment will compound annually while interest on the second will compound quarterly. Which investment opportunity should Fran choose? (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.)   2 Bill O’Brien would like to take his wife, Mary, on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $22,000 inheritance from an uncle and intends to invest it for the trip. Bill estimates the trip will cost $27,500 and he believes he can earn 7% interest, compounded annually, on his investment. (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.) Complete the following table to calculate the future value. Will he be able to pay for the trip with the accumulated investment amount? (Round your final answers to nearest whole dollar amount.)   3 Bill O’Brien would like to take his wife, Mary, on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $24,500 inheritance from an uncle and intends to invest it for the trip. Bill estimates the trip will cost $34,790.(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.) What interest rate, compounded annually, must Bill earn to accumulate enough to pay for the trip? (Round your final answers to nearest whole dollar amount.) 4 Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 28%, compounded quarterly.(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.) How much will Leslie accumulate in three years by depositing $620 at the beginning of each of the next 12 quarters? (Round your final answers to nearest whole dollar amount.) 5 Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $16,500 beginning one year from today. The interest rate on the note is 7%.(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.) What amount did Canliss borrow? (Round your final answers to nearest whole dollar amount.) 6 Kingsley Toyota borrowed $150,000 from a local bank. The loan requires Kingsley to pay 20 equal annual installments beginning one year from today. Assume an interest rate of 6%. What is the amount of each annual installment payment? (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.) (Round your final answers to nearest whole dollar amount.)   7 On December 31, 2018, Interlink Communications issued 7% stated rate bonds with a face amount of $108 million. The bonds mature on December 31, 2048. Interest is payable annually on each December 31, beginning in 2019. (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.) Determine the price of the bonds on December 31, 2018, assuming that the market rate of interest for similar bonds was 8%. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.)   ACC 303 Unit 6 – Chapter 7 Homework Assignment 1 On June 30, 2018, the Esquire Company sold some merchandise to a customer for $42,000. In payment, Esquire agreed to accept a 6% note requiring the payment of interest and principal on March 31, 2019. The 6% rate is appropriate in this situation. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019 collection. 2. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over-or understated in 2018 and 2019? Required 1 Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019 collection. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) Required 2 If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over-or understated in 2018 and 2019?   2 On June 30, 2018, the Esquire Company sold some merchandise to a customer for $20,000 and agreed to accept as payment a noninterest-bearing note with an 10% discount rate requiring the payment of $20,000 on March 31, 2019. The 10% rate is appropriate in this situation. Esquire views the financing component of this contract as significant. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019 collection. 2. What is the effective interest rate on the note? Required 1 Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019 collection. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) Required 2 What is the effective interest rate on the note? (Round your intermediate calculations and the final percentage answer to 3 decimal places.)   3 Loucks Company established a $340 petty cash fund on October 2, 2018. The fund is replenished at the end of each month. At the end of October 2018, the fund contained $93 in cash and the following receipts:         Office supplies $ 104   Lunch with client   76   Postage   34   Miscellaneous   33         Required: Prepare the necessary general journal entries to establish the petty cash fund on October 2 and to replenish the fund on October 31. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)   4 El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2018, reconciliation of the bank balance is as follows:               Balance per bank, November 30       $ 3,241   Add: Deposits outstanding         1,210   Less: Checks outstanding             #363 $ 124         #365   202         #380   57         #381   87         #382   350     (820 ) Adjusted balance per bank, November 30       $ 3,631               The company’s general ledger checking account showed the following for December:           Balance, December 1   $ 3,631   Receipts     42,750   Disbursements     (41,953 ) Balance, December 31   $ 4,428