The specified purpose of the loan was to purchase equipment for 4800 and to use

The specified purpose of the loan was to purchase

This preview shows page 4 - 7 out of 7 pages.

percent per annum on the outstanding balance. The specified purpose of the loan was to purchase equipment for $4,800 and to use the balance of $1,200 to meet working capital needs. 2. Purchased reproduction equipment for $4,800 on January 2, using cash provided in transaction1. The equipment has an estimated useful life of 4 years and no salvage value. 3. Purchased paper and supplies for $4,500 on credit. (Because inventories are kept to a mini- mum, charge the purchase to Supplies expense.) 4. Sent invoices for $65,000 to departments financed by the general fund. 5. Received cash in the amount of $63,000 as a result of transaction 4. 6. Paid the $4,500invoice received in transaction 3. 7. Paid salaries in the amount of $50,000 and utility bills in the amount of $6,000 8. Repaid the county $1,500 of principal on the loan, plus interest of 1 percent. 9. In preparation for year-end financial statements, recorded depreciation on the equipment for 12 months. Requirements: Prepare – (a) Journal entries to record these transactions in the Lilly Printing Fund; (b) A statement of net position as of December 31, 2013; and (c) A statement of revenues, expenses, and changes in net position for the year ended December 31, 2013.
Image of page 4
5. Deleon Inc. is preparing its annual budgets for the year ending December 31, 2014. Accounting assistants furnish the data shown below: Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 400,000 200,000 Unit selling price $20.00 $25.00 Production budget: Desired ending finished goods units 25,000 15,000 Beginning finished goods units 30,000 10,000 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 30,000 15,000 Beginning direct materials pounds 40,000 10,000 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $12 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $660,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product JB 60. Income taxes are expected to be 30%. Requirements: Prepare the following budgets for the year: 1. Sales 2. Production 3. Direct material 4. Direct labor 5. Income statement
Image of page 5
6. Comparative financial statement data for Duran Corporation and Kiepert Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2012. Requirements: (a) Comment on the relative profitability of the companies by computing the net income and earnings per share for each company for 2012.
Image of page 6
Image of page 7

You've reached the end of your free preview.

Want to read all 7 pages?

  • Summer '17
  • javed
  • Business, Income Statement, petty cash fund, Harris Co., Rivera Sportswear

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes