QUESTION 6

Required information [The following information applies to the questions displayed below.] Jarden Company has credit sales of $2,300,000 for year 2018. On December 31, 2018, the companys Allowance for Doubtful Accounts has an unadjusted credit balance of $18,160. Jarden prepares a schedule of its December 31, 2018, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2018 Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 460,000 Not yet due 1.35 % 184,000 1 to 30 days past due 2.10 36,800 31 to 60 days past due 6.60 18,400 61 to 90 days past due 33.25 3,680 Over 90 days past due 69.00 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2018, using the aging of accounts receivable method. QUESTION7 A machine costing $211,000 with a four-year life and an estimated $17,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 485,000 units of product during its life. It actually produces the following units: 122,600 in 1st year, 123,400 in 2nd year, 120,900 in 3rd year, 128,100 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimatethis difference was not predicted. (The machine must not be depreciated below its estimated salvage value.) Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) QUESTION8 Required information [The following information applies to the questions displayed below.] In January 2018, Mitzu Co. pays $2,700,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $630,000, with a useful life of 20 years and a $75,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $600,000 that are expected to last another 20 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,770,000. The company also incurs the following additional costs: Cost to demolish Building 1 $ 344,400 Cost of additional land grading 187,400 Cost to construct new building (Building 3), having a useful life of 25 years and a $402,000 salvage value 2,262,000 Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 168,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2018. QUESTION9 Required information [The following information applies to the questions displayed below.] In January 2018, Mitzu Co. pays $2,700,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $630,000, with a useful life of 20 years and a $75,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $600,000 that are expected to last another 20 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,770,000. The company also incurs the following additional costs: Cost to demolish Building 1 $ 344,400 Cost of additional land grading 187,400 Cost to construct new building (Building 3), having a useful life of 25 years and a $402,000 salvage value 2,262,000 Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 168,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. QUESTION10 The following selected transactions are from Ohlm Company. (Use 360 days a year.) 2017 Dec. 16 Accepted a(n) $14,100, 60-day, 10% note dated this day in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note. 2018 Feb. 14 Received Todds payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $6,800, 10%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a(n) $2,300, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable. Apr. 16 Privet dishonored her note when presented for payment. May 31 Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable. July 16 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 10%. Aug. 7 Accepted a(n) $7,750, 90-day, 10% note dated this day in granting a time extension on the past-due account receivable of Mulan Co. Sep. 3 Accepted a(n) $3,560, 60-day, 11% note dated this day in granting Noah Carson a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest from Carson for the September 3 note. Nov. 5 Received payment of principal plus interest from Mulan for the August 7 note. Dec. 1 Wrote off the Privet account against the Allowance for Doubtful Accounts. Required: 1-a. Complete the table below to calculate the interest amount at December 31, 2017. 1-b. Use the calculated values from 1-a to prepare your journal entries for 2017 transactions. 1-c. Complete the table below to calculate the interest amounts. 1-d. Use the calculated values from 1-c to prepare your journal entries for 2017 transactions. QUESTION11 Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year). May 1 Prepared a company check for $350 to establish the petty cash fund. 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. a. Paid $109.20 for janitorial expenses. b. Paid $89.15 for miscellaneous expenses. c. Paid postage expenses of $60.90. d. Paid $80.01 to Facebook for advertising expense. e. Counted $26.84 remaining in the petty cashbox. 16 Prepared a company check for $200 to increase the fund to $550. 31 The petty cashier reports that $390.27 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. f. Paid postage expenses of $59.10. g. Reimbursed the office manager for mileage expense, $47.05. h. Paid $48.58 in delivery expense for products to a customer, terms FOB destination. 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $500. Required: 1. Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places.)