Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Could you assist me with (4) problems. I need complete asap! Exercise 83 Quigley Co. bought a machine on January 1, 2013 for $1,399,900. It
Could you assist me with (4) problems. I need complete asap!
Exercise 83 Quigley Co. bought a machine on January 1, 2013 for $1,399,900. It had a $122,400 estimated residual value and a 11-year life. An expense account was debited on the purchase date. Quigley uses straightline depreciation. This was discovered in 2015. Prepare the entries related to the machine for 2015. Exercise 90 The condensed financial statements of Marks Company for the years 2014-2015 are presented below: Marks Company Comparative Balance Sheets As of December 31, 2014 and 2015 2015 2014 Cash $398,000 $151,000 Accounts receivable (net) 360,000 302,000 Inventories 376,000 336,000 Plant and equipment 1,832,000 1,112,000 Accumulated (260,000) (192,000) depreciation $2,706,000 $1,709,000 Accounts payable Dividends payable Bonds payable Common stock ($10 par) Retained earnings $336,000 -0405,000 1,520,000 445,000 $2,706,000 $161,000 44,000 -01,220,000 284,000 $1,709,000 Additional data: Market value of stock at 12/31/15 is $80 per share. Marks sold 34,000 shares of common stock at par on July 1, 2015. Marks Company Condensed Income Statement For the Year Ended December 31, 2015 Sales revenue $2,442,000 Cost of goods sold 1,648,000 Gross profit Administrative and selling expenses Net income 794,000 504,000 $290,000 Compute the following financial ratios by placing the proper amounts for numerators and denominators. (Round per unit answers to 2 decimal places, e.g. 52.75.) (a) Current ratio at 12/31/15 $ $ $ (b) Acid test ratio at 12/31/15 $ $ (c) Accounts receivable turnover in 2015 $ $ (d) Inventory turnover in 2015 $ $ (e) Profit margin on sales in 2015 $ $ (f) Earnings per share in 2015 $ (g) Return on common stock equity in 2015 (h) Price earnings ratio at 12/31/15 $ $ $ $ (i) Debt to assets at 12/31/15 $ $ (j) Book value per share at 12/31/15 Brief Exercise 111 Hughey Co. as lessee records a capital lease of machinery on January 1, 2014. The seven annual lease payments of $700,000 are made at the end of each year. The present value of the lease payments at 9% is $3,410,600. Hughey uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value). Prepare an amortization table for 2014 and 2015. (Round answers to 0 decimal places e.g. 5,275.) Date 1/1/14 Hughey Co. Lease Amortization Schedule Annual Lease Interest on Reduction in Lease Receipt/Payment Receivable/Liability Receivable/Liability Receivable/Liability $ 12/31/14 12/31/15 SHOW LIST OF ACCOUNTS $ $ $ Prepare all of Hughey's journal entries for 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.) Account Titles and Explanation Debit Credit (To record the lease.) (To record the first lease payment.) (To record depreciation.) Exercise 121 Milner Co. sold a machine that cost $70,000 and had a book value of $30,000 for $47,000. Data from Milner's comparative balance sheets are: 12/31/15 Machinery Accumulated depreciation 12/31/14 $750,000 $650,000 150,000 100,000 Complete the cash flow statement below: (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Milner Co. Partial Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activities $ Cash flows from investing activities \fExercise 83 SolutionS. No. 1 2 Account Titles and Explanation Equipment Retained Earnings Accumulated Depreciation-Equipment (2 $116136.36) Depreciation Expense Accumulated Depreciation-Equipment Debit 1399900 116136.36 Credit 1167627.27 232272.73 116136.36 Exercise 90 Solution(a) Current ratio at 12/31/15 1134000 336000 = 3.38 (b) Acid test ratio at 12/31/15 758000 336000 = 2.26 (c) Accounts receivable turnover in 2015 2442000 331000 = 7.38 (d) Inventory turnover in 2015 1648000 331000 = 4.98 (e) Profit margin on sales in 2015 290000 2442000 = 0.12 (f) Earnings per share in 2015 290000 137000 = 2.12 (g) Return on common stock equity in 2015 290000 1734500 = 0.17 (h) Price earnings ratio at 12/31/15 80 2.12 = 37.79 (i) Debt to assets at 12/31/15 741000 2706000 = 0.27 (j) Book value per share at 12/31/15 1965000 152000 = 12.93 Brief Exercise 111 Solution(a) Hughey Lease Amortizati Date 1/1/2014 12/31/14 (b) S. No. 1 Receipt/Payment 700000 700000 Account Titles and Explanation Lease Equipment Lease Liability (To record the lease.) 2 Interest Expense Lease Liability Cash (To record the first lease payment.) 3 Depreciation Expense (3410600*7/28) Accumulated Depreciation (To record depreciation.) Hughey Co.Schedule Lease Amortization Receivable/Liability Receivable/Liability 306954 271580 393046 428420 Debit 3410600 Credit 3410600 306954 393046 700000 852650 852650 Receivable/Liability 3410600 3017554 2589134 Exercise 121 SolutionMilner Co. Partial Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activitie Depreciation Expense Gain on Sales of Machinery 90000 -17000 73000 Cash flows from investing activitie Sale of Machinery Purchase of Machinary 47000 -170000 -123000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started