GB 518 Unit 6 Assignment - P12-04A P13-04A - Galley Corp. a merchandiser recently completed its 2011 operations. For the year

GB 518 Unit 6 Assignment - EXCEL TEMPLATE

P12-04A Galley Corp. a merchandiser recently completed its 2011 operations.  For the year:
1 all sales are credit sales
2 all credits to Accounts Receivable reflect cash receipts from customers
3 all purchases of inventory are on credit
4 all debits to Accounts Payable reflect cash payments for inventory.
5 Other Expenses are all cash expenses
6  any change in Income Taxes Payable reflects the accrual and cash payments of taxes. The company's balance sheets and income statement follow.

Additional information on Year 2011 Transactions

a Purchased equipment for $36,000 cash
b Issued 12,000 shares of common stock for $5 cash per share.
c Declared and paid $111,000 in cash dividends.

Prepare a complete statement of cash flows; report its cash inflows from operating activities according to the indirect method.


P13-04A Selected year-end financial statements of McCord Corporation
1 All sales were on credit
2 Selected balance amounts at December 31, 2010 were:
Inventory $32,400
Total assets $182,400
Common stock $90,000
Retained earnings $31,300


Compute the following
1 Current ration
2 Acid-test ratio
3 days sales uncollected
4 Inventory turnover
5 Days sales in inventory
6 Debt-to-equity ratio
7 Times interest earned
8 profit margin ratio
9 Total asset turnover
10 Return on total assets
11 -Return on common stockholder's equity


TUTORIAL PREVIEW

GALLEY CORPORATION Statement of cash Flows For Year Ended December 31, 2011
Cash flows from operating activities:
Net income	$201,000
Adjustments to reconcile net income to net
Cash provided by operating activities
Increase in accounts receivable	(12,000)
Increase in inventory	(75,000)

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Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding

P8-5A Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $ 1,028.05 and No. 5893 for $ 494.25. The following information is available for its September 30, 2013, reconciliation.

PREVIOUS BALANCE	TOTAL CHECKS AND DEBITS	TOTAL DEPOSITS AND CREDITS	CURRENT BALANCE
16,800.45	9,620.05	11,272.85	18,453.25

 

CHECKS AND DEBITS	DEPOSITS AND CREDITS	DAILY BALANCE

 

Additional Information

Check No. 5904 is correctly drawn for $ 2,090 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $ 2,060. The NSF check shown in the statement was originally received from a customer, S. Nilson, in payment of her account. Its return has not yet been recorded by the company. The credit memorandum is from the collection of a $ 1,500 note for Chavez Company by the bank. The bank deducted a $ 15 collection fee. The collection and fee are not yet recorded.

Required

1. Prepare the September 30, 2013, bank reconciliation for this company.

2. Prepare the journal entries (in dollars and cents) to adjust the book balance of cash to the reconciled balance.

 

 

Analysis Component

3. The bank statement reveals that some of the prenumbered checks in the sequence are missing. Describe three situations that could explainthis.

 

TUTORIAL PREVIEW

	CHAVEZ COMPANY Bank Reconciliation September 30, 2013
Bank statement balance		$18,453.25
Add:
Deposit of September		1,682.72

 

File name: P8-5A Chavez Company.xls  File type: .xls  PRICE: $8

P7-3A Church Company completes these transactions and events during March of the current year

P7-3A Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).

Mar. 1 Purchased $43,600 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30.

2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $16,800 (cost is $8,400). 3 (a) Purchased $1,230 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM.

3 (b) Sold merchandise on credit to Linda Witt, Invoice No. 855, for $10,200 (cost is $5,800).

6 Borrowed $82,000 cash from Federal Bank by signing a long-term note payable. 9 Purchased $21,850 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM.

10 Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $5,600 (cost is $2,900).

12 Received payment from Min Cho for the March 2 sale less the discount.

13 (a) Sent Van Industries Check No. 416 in payment of the March 1 invoice less the discount.

13 (b) Received payment from Linda Witt for the March 3 sale less the discount.

14 Purchased $32,625 of merchandise from the CD Company, invoice dated March 13, terms 2/10, n/30.

15 (a) Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $18,300. Cashed the check and paid the employees.

15 (b) Cash sales for the first half of the month are $34,680 (cost is $20,210). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)

16 Purchased $1,770 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM.

17 Received a $2,425 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.

19 Received a $630 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit.

20 Received payment from Jovita Albany for the sale of March 10 less the discount. 23 Issued Check No. 418 to CD Company in payment of the invoice of March 13 less the March 17 return and the discount.

27 Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $14,910 (cost is $7,220).

28 Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,315 (cost is $3,280).

31 (a) Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $18,300. Cashed the check and paid the employees.

31 (b) Cash sales for the last half of the month are $30,180 (cost is $16,820).

31 (c) Verify that amounts impacting customer and creditor accounts were posted and that any amounts that should have been posted as individual amounts to the general ledger accounts were posted. Foot and crossfoot the journals and make the month-end postings.

 

Assume the following ledger account amounts Inventory (March 1 beg. bal. is $10,000); Z. Church, Capital (March 1 beg. bal. is $10,000). Enter the transactions in a sales journal. Enter the transactions in a purchases journal. Enter the transactions in a cash receipts journal. Enter the transactions in a cash disbursements journal. Enter the transactions in a general journal. Post the transactions in a general ledger. Prepare a trial balance of the general ledger.

 

TUTORIAL PREVIEW

CHURCH COMPANY Sales Journal
Date	Account debited	Inv. No.	PR	Acct. Rec. Debit Sales Cr.	COGS Debit Inv. Credit
Mar. 2	Min Cho	854	√	16,800	8400
3	Linda Witt	855	√	10,200	5,800
10	Jovita Albany	856	√	5,600	2,900

 

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P17-4 Sachs Brands P17-4 Sachs Brands

P17-4 Sachs Brands

P17-8 A partially completed

P17-4 Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 1999 and is expected to retire at the end of 2033 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $90,000 at the end of 2013 and the company's actuary projects her salary to be $240,000 at retirement. The actuary's discount rate is 7%.

At the beginning of 2014, the pension formula was amended to:

The amendment was made retroactive to apply the increased benefits to prior service years.

Required:

1. What is the company's prior service cost at the beginning of 2014 with respect to Davenport after the amendment described above?

2. Since the amendment occurred at the beginning of 2014, amortization of the prior service cost begins in 2014. What is the prior service cost amortization that would be included in pension expense?

3. What is the service cost for 2014 with respect to Davenport?

4. What is the interest cost for 2014 with respect to Davenport?

5. Calculate pension expense for 2014 with respect to Davenport, assuming plan assets attributable to her of $150,000 and a rate of return (actual and expected) of 10%.

P17-8 A partially completed pension spreadsheet showing the relationships among the elements that constitute Carney, Inc.'s defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits earned by employees in prior years using the more generous formula. The prior service cost created by the recalculation is being amortized at the rate of $5 million per year. At the end of 2013, the pension formula was amended again, creating an additional prior service cost of $40 million. The expected rate of return on assets and the actuary's discount rate were 10%, and the average remaining service life of the active employee group is 10 years.

() indicates credit; debits otherwise ($in millions)	PBO	Plan assets	Prior Service cost	Not Loss	Pension Expense	Cash	Net pension (liability) /asset
Balance Jan,1, 2013	(830)	680	20	93			(150)
Service cost	?				74		?
Interest cost	?				?		?
Expected return on asset		?			?		?
Adjust for: Loss on assets		(7)		?			?
Amortization: Price service cost			?		?
Net loss				?	?		?
Loss on BPO	?			?			(13)
Prior service cost	?		?				?
Cash funding		?				?	84
Retiree benefits	?	?
Balance, Dec 31,2013	?	775	?	?	?		?

Required:

1. Copy the incomplete spreadsheet and fill in the missing amounts.

2. Prepare the 2013 journal entry to record pension expense.

3. Prepare the journal entry(s) to record any 2013 gains and losses and new prior service cost in 2013.

4. Prepare the 2013 journal entries to record the cash contribution to plan assets and payment of retiree benefits.

TUTORIAL PREVIEW

1. What is the company's prior service cost at the beginning of 2014 with respect to Davenport after the amendment described above?

PBO Without Amendment		PBO With Amendment
1.6% x 15 yrs. x $240,000 = $57,600		1.75% x 15 yrs. x $240,000 = $63,000
$57,600 x 10.05909* = $579,404		$63,000 x 10.05909* = $633,723

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