Four accounting questions
/in Uncategorized /by Liz|
1) Early in its fiscal year ending December 31, 2013, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $820,000. San Antonio paid $210,000 and signed a noninterest bearing note requiring the company to pay the remaining $610,000 on March 28, 2015. An interest rate of 6% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $21,000 were paid at closing. |
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During April, the old building was demolished at a cost of $71,000, and an additional $51,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): |
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May 30 |
$ |
1,350,000 |
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July 30 |
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1,550,000 |
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September 1 |
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960,000 |
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October 1 |
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1,860,000 |
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San Antonio borrowed $3,000,000 at 6% on May 1 to help finance construction. This loan, plus interest, will be paid in 2014. The company also had the following debt outstanding throughout 2013: |
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$2,100,000, 7% long-term note payable |
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$4,100,000, 4% long-term bonds payable |
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In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $610,000. The fair values of the equipment and the furniture and fixtures were $426,000 and $284,000, respectively. In December, San Antonio paid a contractor $290,000 for the construction of parking lots and for landscaping. |
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Required: |
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1. |
Determine the initial values of the various assets that San Antonio acquired or constructed during 2013. The company uses the specific interest method to determine the amount of interest capitalized on the building construction. |
Land Land Improvements Building Equipment
Furniture and Fixtures
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2. |
How much interest expense will San Antonio report in its 2013 income statement? |
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2) Consider each of the transactions below. All of the expenditures were made in cash. |
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1. |
The Edison Company spent $30,000 during the year for experimental purposes in connection with the development of a new product. |
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2. |
In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $11,000. |
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3. |
In March, the Cleanway Laundromat bought equipment. Cleanway paid $24,000 down and signed a noninterest-bearing note requiring the payment of $27,000 in nine months. The cash price for this equipment was $43,000. |
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4. |
On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $46,000. |
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5. |
The Mayer Company, plaintiff, paid $30,000 in legal fees in November, in connection with a successful infringement suit on its patent. |
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6. |
The Johnson Company traded its old machine with an original cost of $16,400 and a book value of $8,400 plus cash of $11,600 for a new one that had a fair value of $15,400. The exchange has commercial substance. |
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Required: |
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Prepare journal entries to record each of the above transactions.
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3 ) On May 1, 2013, Hecala Mining entered into an agreement with the state of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $9 million. Additional costs and purchases included the following (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): |
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Development costs in preparing the mine |
$ |
2,200,000 |
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Mining machinery |
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117,000 |
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Construction of various structures on site |
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24,500 |
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After the minerals are removed from the mine, the machinery will be sold for an estimated residual value of $12,000. The structures will be torn down. |
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Geologists estimate that 700,000 tons of ore can be extracted from the mine. After the ore is removed the land will revert back to the state of New Mexico. |
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The contract with the state requires Hecala to restore the land to its original condition after mining operations are completed in approximately four years. Management has provided the following possible outflows for the restoration costs: |
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Cash Outflow |
Probability |
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$ |
500,000 |
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40 |
% |
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600,000 |
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30 |
% |
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700,000 |
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30 |
% |
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Hecala’s credit-adjusted risk-free interest rate is 7%. During 2013, Hecala extracted 110,000 tons of ore from the mine. The company’s fiscal year ends on December 31. |
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Required: |
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1. |
Determine the amount at which Hecala will record the cost of the mine. |
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2. |
Calculate the depletion of the mine and the depreciation of the mining facilities and equipment for 2013, assuming that Hecala uses the units-of-production method for both depreciation and depletion. Depletion Depreciation of Machinery Depreciation of Structures
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Assignment Type: Individual Project Deliverable Length: 2 -3 Pages
/in Uncategorized /by Lizray and chuck own 50 percent capital and profits interests in alpine properties llc alpine builds and manages r/
/in Uncategorized /by Liza. How much of each member’s loss is suspended because of the tax basis limitation?
Assignment 2: Successful Domestic Company Goes Global!
/in Uncategorized /by LizImagine that you are the CEO of a successful domestic company. In the last 6 months, many potential clients in foreign countries have expressed a desire to conduct business with you. You know that in order for your company to grow, you will have to expand overseas. You have recently attended a local three (3)-day international trade exposition and have gathered many brochures on the foreign companies interested in doing business with your company.
After meeting with the Executive Committee of your successful domestic company, you decide that you will need to identify a minimum of two (2) countries for expansion and two (2) expatriates whom you will send into the chosen countries. The selected expatriates will learn about the countries’ cultures and business activities there. You must prepare a report for the potential employees who may want to take an overseas assignment, the Executive Committee, and the Board of Directors.
Use the Internet and Strayer Library to research possible countries for expansion. Next, conduct research on leveraging expatriates over country nationals for business overseas. Finally, research books that could help expatriates in their transition to working overseas.
Note: You may create and / or assume all necessary assumptions needed for the completion of this assignment.
Write an eight to ten (8-10) page paper in which you:
- Create a guide to leveraging expatriates. The guide should include four to six (4-6) sources that address benefits and challenges of sending expatriates to other countries.
- Examine the major benefits that this report can provide for the organization, and suggest two (2) uses for the information contained therein. Justify your response.
- Analyze the major factors (e.g., distance, cultural background, knowledge of the related countries, languages spoken, relatives who may live in another country, etc.) that would influence your choice of countries into which your company would expand. Recommend two (2) countries for expansion. Provide a rationale for your response.
- Determine three (3) criteria that you would consider when deciding which employees to send abroad. Justify your response.
- Propose the major methods and / or incentives you would use in order to encourage the selected employees to become expatriates. Provide a rationale for your response.
- Recommend one (1) strategy to ensure that both the Executive Committee and the Board of Directors are committed to the expansions. Justify your response.
- Recommend two (2) books that the selected expatriates should take with them when they go overseas. Provide a rationale for your response.
- Outline a guide for expatriates who will reside within another country for one to two (1-2) years. The related guide should cover the following topics: selecting items to pack, accommodating a vehicle (i.e., leave behind or send overseas), shipping or selling furniture, moving pets, and arranging accommodations for children and / or family residing in another country for the discussed length of time.
- Develop a framework for your presentation. The framework should include the following:
- Relevant visuals
- Statistics that support the decision to expand into the identified countries
- A feasibility study of your company’s proposed expansion to the countries in question
- Information related to renting or buying land or a building
- Any other information relevant to the case for expansion
- Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other similar websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
- Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
- Evaluate the implementation process related to strategy management.
- Use technology and information resources to research issues in global management.
- Write clearly and concisely about global management using proper writing mechanics.
solve the following system of equations graphically and check: y-x=1 y=-1/2x+4
/in Uncategorized /by LizExpert in MS Excel Needed
/in Uncategorized /by LizI have 4 tutorials and a final exam. I need an expert in MS Excel to complete these for me. Please respond ASAP. I will provide a digital copy of the chapters needed through http://www.cengagebrain.com/shop/isbn/9780538742917
Thank you in advance for your consideration. I will pay $75 to complete the 5 tasks.
II essay questions
/in Uncategorized /by LizQuestion 11
Question 12
Need help today with ECO question
/in Uncategorized /by Lizconsider the elements and indicators among reporting frameworks illustration 10 3 in illustration 10 3/
/in Uncategorized /by LizRequired
(a) Describe key financial indicators given in a financial statement presented in accordance with the CICA PSA Handbook. Contrast these indicators with indicators provided in the NPO, IFRS, and ASPE frameworks.
(b) Explain why net debt, the difference between liabilities and financial assets, bears directly on future revenue requirements and acts as a constraint upon the public sector’s entity’s ability to finance its activities, as well as meeting its liabilities and future commitments.
(c) Indicate how approaches under the frameworks vary when presenting changes in assets and liabilities and what challenges this can provide to users seeking to understand the results being reported by entities using these differ ent frameworks.
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