Question;ACC;206 Week Two Assignment;Please;complete the following exercises below in either Excel or a word document (but;must be single document). You must show your work where appropriate (leaving;the calculations within Excel cells is acceptable). Save the document, and;submit it in theappropriate;week using the Assignment Submission button.;1. Analysis of stockholders' equity;Star;Corporation issued both common and preferred stock during 20X6. The;stockholders' equity sections of the company's balance sheets at the end of;20X6 and 20X5 follow;20X6;20X5;Preferred;stock, $100 par value, 10%;$580,000;$500,000;Common;stock, $10 par value;2,350,000;1,750,000;Paid-in;capital in excess of par value;Preferred;24,000;?;Common;4,620,000;3,600,000;Retained;earnings;8,470,000;6,920,000;Total;stockholders' equity;$16,044,000;$12,770,000;a.;Compute the number of preferred shares;that were issued during 20X6.;b.;Calculate the average issue price;of the common stock sold in 20X6.;c.;By what amount did the company's;paid-in capital increase during 20X6?;d.;Did Star's total legal capital;increase or decrease during 20X6? By what amount?;2. Bond;computations: Straight-line amortization;Southlake Corporation issued $900,000;of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1;and mature in 10 years. Assume the independent cases that follow.;?;Case A?The bonds are issued at 100.;?;Case B?The bonds are issued at 96.;?;Case C?The bonds are issued at 105.;Southlake uses the straight-line;method of amortization.;Instructions;Complete the following table;Case A;Case B;Case C;Cash inflow on the issuance date;Total cash outflow through;maturity;Total borrowing cost over;the life of the bond issue;Interest expense for the;year ended December 31, 20X1;Amortization for the year;ended December 31, 20X1;Unamortized premium as of;December 31, 20X1;Unamortized discount as of;December 31, 20X1;Bond carrying value as of;December 31, 20X1;3. Definitions of manufacturing concepts;Interstate Manufacturing produces brass fasteners and incurred the following;costs for the year just ended;Materials;and supplies used;Brass $75,000;Repair;parts 16,000;Machine;lubricants 9,000;Wages and;salaries Machine operators 128,000;Production;supervisors 64,000;Maintenance;personnel 41,000;Other;factory overhead Variable 35,000;Fixed 46,000;Sales;commissions 20,000;Compute;a.;Total direct materials consumed;b.;Total direct labor;c.;Total prime cost;d.;Total conversion cost;4.;Scheduleof;cost of goods manufactured, income statement;The following information was;taken from the ledger of Jefferson Industries, Inc.;Direct;labor;$85,000;Administrative;expenses;$59,000;Selling;expenses;34,000;Work in.;process;Sales;300,000;Jan. 1;29,000;Finished;goods;Dec. 31;21,000;Jan. 1;115,000;Direct;material purchases;88,000;Dec. 31;131,000;Depreciation;factory;18,000;Raw;(direct) materials on hand;Indirect;materials used;10,000;Jan. 1;31,000;Indirect;labor;24,000;Dec. 31;40,000;Factory;taxes;8,000;Factory;utilities;11,000;Prepare the following;a.;A schedule of cost of goods manufactured for;the year ended December 31.;b.;An income statement for the year ended;December 31.;5. Manufacturing statements and cost;behavior;Tampa Foundry began operations during the;current year, manufacturing various products for industrial use. One such;product is light-gauge aluminum, which the company sells for $36 per roll. Cost;information for the year just ended follows.;Per Unit;Variable;Cost;Fixed;Cost;Direct materials;$4.50;$ ?;Direct labor;6.5;?;Factory overhead;9;50,000;Selling;?;70,000;Administrative;?;135,000;Production and sales totaled 20,000 rolls and;17,000 rolls, respectively There is no work in process. Tampa carries its;finished goods inventory at the average unit cost of production.;Instructions;a.;Determine the cost of the finished goods;inventory of light-gauge aluminum.;b.;Prepare an income statement for the current;year ended December 31;c.;On the basis of the information presented;1.;Does it appear that the company pays;commissions to its sales staff? Explain.;2.;What is the likely effect on the $4.50 unit;cost of direct materials if next year's production increases? Why?
Paper#40342 | Written in 18-Jul-2015Price : $28