Question;Week Two Assignment;Please complete the following 5;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 the;appropriate week using the Assignment Submission button.;1. Analysis of;stockholders' equity;Star Corporation issued both;common and preferred stock during 20X8. The stockholders' equity sections of;the company's balance sheets at the end of 20X8 and 20X7 follow.;20X8;20X7;Preferred stock, $100 par;value, 10%;$600,000;$500,000;Common stock, $10 par value;2,350,000;1,550,000;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;$16,064,000;$12,570,000;Compute;the number of preferred shares that were issued during 20X8.Calculate;the average issue price of the common stock sold in 20X8.By;what amount did the company's paid-in capital increase during 20X8?Did;Star's total legal capital increase or decrease during 20X8? By what amount?2.Bond computations: Straight-line amortizationNorthern Corporation issued;$800,000 of 7% bonds on March 1, 20X8. 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;a.;Cash inflow on the issuance date;$800,000;$800,000;$800,000;a.;Total;cash outflow through maturity;$700;$735;a.;Total;borrowing cost over the life of the bond issue;$600;$576;$630;a.;Interest;expense for the year ended December 31, 20X8;a.;Amortization;for the year ended December 31, 20X8;$163;$178;a.;Unamortized;premium as of December 31, 20X8;$35;$31.50;$36.50;a.;Unamortized;discount as of December 31, 20X8;-4;a.;Bond;carrying value as of December 31, 20X8;107;102.72;112.35;a.;3. Definitions of manufacturing concepts;J & B;Manufacturing produces brass fasteners and incurred the following costs for the;year just ended;Materials;and supplies used;Brass $80,000;Repair;parts 18,000;Machine;lubricants 8,000;Wages and;salaries Machine operators 140,000;Production;supervisors 62,000;Maintenance;personnel 39,000;Other;factory overhead Variable 29,000;Fixed 48,000;Sales;commissions 20,000;Compute;Total;direct materials consumedTotal;direct laborTotal;prime cost;Per;Unit;Variable Cost;Fixed Cost;Direct materials;$4.00;$ ?;Direct labor;7.0;?;Factory overhead;9.0;70,000;Selling;?;80,000;Administrative;?;135,000;4. Schedule of cost;of goods manufactured, income statement;The;following information was taken from the ledger of Jakob Industries, Inc.;Direct labor;$75,000;Administrative expenses;$63,000;Selling expenses;36,000;Work in. process;Sales;310,000;Jan. 1;32,000;Finished goods;Dec. 31;21,000;Jan. 1;115,000;Direct material purchases;87,000;Dec. 31;131,000;Depreciation: factory;21,000;Raw (direct) materials on hand;Indirect materials used;11,000;Jan. 1;31,000;Indirect labor;26,000;Dec. 31;40,000;Factory taxes;8,000;Factory utilities;12,000;Prepare the following;Schedule of cost of goods manufactured for the year;ending December 31;An;income statement for the year ended December 31.5. Manufacturing statements and;cost behavior;Sioux 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 $38 per roll. Cost information for the year just ended;follows.Production and sales totaled;20,000 rolls and 18,000 rolls, respectively There is no work in process. Sioux;carries its finished goods inventory at the average unit cost of production.Instructions;Determine;the cost of the finished goods inventory of light-gauge aluminum.Prepare;an income statement for the current year ended December 31;On;the basis of the information presented;Does;it appear that the company pays commissions to its sales staff? Explain.What;is the likely effect on the $4.00 unit cost of direct materials if next year's;production increases? Why?
Paper#41159 | Written in 18-Jul-2015Price : $22