Question 17 Points Towson Corp Was Organized On January 2, 2

Question 17 Pointstowson Corpwas Organized On January 2 2018 Du

Question 17 Pointstowson Corpwas Organized On January 2 2018 Du

Question 1 (7 points) Towson Corp., was organized on January 2, 2018. During the first year of operation, Towson issued 70,000 shares of $4 par value common stock at a price of $35 cash per share. On December 31, 2018, Towson reported Net Income of $250,000 and paid $50,000 cash dividends. Use this information to determine the dollar amounts that Towson will report on its year end Balance Sheet for Paid in Capital Common Stock in Excess to par. Your Answer: Question 2 (7 points) Towson Corp., had 6,000 shares of $100 par, 4% cumulative preferred stock as of January 1, 2018.

No additional shares of preferred stock were issued during fiscal years 2018 & 2019. Dividends were paid to common shareholders in 2017 but no shareholders were paid dividends in 2018. A total of $95,000 of dividends was paid in 2019. Use this information to determine the total dollar amount of dividends that was paid to common shareholders during fiscal year 2019. Your Answer: Question 3 (7 points) On January 2, 2018, the first year of operations, Brunswick Corp., issued 15,000 shares of $10 par value common stock for $15 per share.

On July 1, 2018, Alpha Corp., 2,000 of these shares were reacquired for $20 each. On September 1, 2018 Brunswick Corp. reissued 700 shares of its treasury stock for $23 per share. No other stock transactions occurred during the rest of fiscal year 2018. Use this information to determine the dollar amount that Alpha will report on its fiscal year 2018 Balance Sheet for Paid in Capital Treasury Stock. Your Answer: Question 4 (7 points) On August 1, 2018, Towson Corp., declared a 5% stock dividend on its common stock when the market value of the common stock was $16 per share.

The balance in the common stock account, before the stock dividend was declared, was $1,100,000. The par value of all common stock is $10. What is the total dollar amount credited to additional paid in capital - common stock on August 1, 2018? Your Answer: Question 5 (7 points) Easton Company prepares annual adjusting entries only. During the third quarter of Fiscal Year 2018, Easton Company acquired the following trading securities: Date Company # of Shares Price per Share 8/15 X Company 1,500 $/25 Y Company 1,/30 Z Company 1, On November 10th, Easton Company sold the Y Company stock for $31 per share.

On December 15th, Z Company paid dividends of $0.12 per share. The following were the year-end market values: Company FMV per Share X Company $47 Y Company 15 Z Company 27 What the total dollar values that Towson Company should record for the Unrealized Gain or (Loss) on Trading Securities for 2018? Enter a Loss as a negative number. Your Answer: Question 6 (7 points) Arundel Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of: Dollar Value Age of Account Estimated Collectible $230,000 120 days old 20.0% The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero.

After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar. Your Answer: Question 7 (7 points) Arundel Company uses percentage of sales to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance of $78,000 and had a total of $715,000 in credit sales. Arundel assumes that 1.5% of sales will eventually be uncollectible. before adjustment, the Allowance for Uncollectible Accounts had a credit balance of 6,000.

What dollar amount should be credited to Allowance for Uncollectible Accounts at year end? Your Answer: Question 8 (7 points) Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $12./5 Purchase 200 $11./10 Sales 300 $/15 Purchase 200 $13./20 Sales 250 $/25 Purchase 150 $12.50 Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent. Your Answer: Question 9 (7 points) Adelphi Company purchased a machine on January 1, 2017, for $100,000. The machine was estimated to have a service life of ten years with an estimated residual value of $5,000.

Adelphi sold the machine on January 1, 2021 for $21,000. Adelphi uses the double declining method for depreciation. Using this information, how much is the gain or (loss) for the equipment sale entry made on January 1, 2021. Enter a loss as a negative number. Your Answer: Question 10 (7 points) Barbara is an employee of Baltimore Company.

Baltimore Company pays employees the Friday after the wages are earned. Overtime in excess of 40 hours must be paid at 150% of the normal hourly rate. Social Security taxes are 6.2% and Medicare taxes are 1.45%. The federal unemployment tax rate is 1.1% and the state unemployment tax rate is 3.5%. Barbara's wages, including the current pay period, will not exceed the limits for Social Security, Medicare and unemployment taxes.

Barbara earns $18 per hour and worked 46 hours for the week ended January 13 , 2019. Baltimore will withhold $220 federal income taxes. Use this information to determine the total payroll tax expense for Baltimore Company as related to Barbara's earnings. (Round to the closest cent) Your Answer: Question points) The following is the Easton Company adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,400 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 881,105 Interest Income 5,500 Dividends 9,000 Rent Expense 59,500 Wages Expense 529,000 Supplies Expense 42,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________ Totals $1,530,565 $1,530,565 Use this information to prepare the Single-Step Income Statement for the fiscal year. There are additional lines in the formatted income statement form to allow for authorized alternate presentations. Easton Company Income Statement Question 12 The following is the Easton Company's adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,000 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 877,105 Interest Income 5,500 Dividends 7,000 Rent Expense 59,900 Wages Expense 529,000 Supplies Expense 40,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________ Totals $1,526,565 $1,526,565 Use this information to prepare the Balance Sheet for the fiscal year.

There are additional lines in the formatted Balance Sheet form to allow for authorized alternate presentations. Answer Easton Company Balance Sheet · Ryans, A. 2010. The high stakes of low-cost competition. (down) · MacMillan, I. C., & McGrath, R.

G. 1997. Discovering new points of differentiation. Harvard Business Review, 75, . · Kim, W. C., Mauborgne, R.

2004. Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant, 1. Creating Blue Oceans (down) Case study: A Maestro without borders Case question: 1. Is the classical music industry attractive? If you were head of an orchestra set on beating the competition, what strategic options could you have?

What would be the likely results? 2. What is the key logic underlying Rieu’s business success? 3. Despite his impressive achievements over the years, AndreÌ Rieu suffered a financial downfall at one point in his career, as described in the case.

Seen from a blue ocean strategy perspective, what did he do wrong there? The End The End Case study: A Maestro without borders Case question: 1. Is the classical music industry attractive? If you were head of an orchestra set on beating the competition, what strategic options could you have? What would be the likely results?

2. What is the key logic underlying Rieu’s business success? 3. Despite his impressive achievements over the years, AndreÌ Rieu suffered a financial downfall at one point in his career, as described in the case. Seen from a blue ocean strategy perspective, what did he do wrong there?

Paper For Above instruction

The financial and strategic management of corporations involves a detailed understanding of various accounting principles, strategic frameworks, and market dynamics. This paper addresses a series of interconnected questions, each rooted in fundamental accounting or strategic decision-making, illustrating their application through real-world examples and calculations based on the scenarios provided.

Question 1: Calculation of Paid-in Capital in Excess of Par for Towson Corporation

Towson Corporation issued 70,000 shares of $4 par value common stock at a price of $35 per share in its first year of operation beginning January 2, 2018. The total proceeds from issuance amount to 70,000 shares x $35 = $2,450,000. The par value total is 70,000 shares x $4 = $280,000. The excess of the issue price over par value is therefore $35 - $4 = $31 per share. Consequently, the amount reported on the balance sheet for Paid-in Capital in Excess of Par is 70,000 shares x $31 = $2,170,000. This component of shareholders’ equity reflects the additional amount investors are willing to pay over the stock's par value, signifying confidence and market valuation of the company's growth prospects (Kieso, Weygandt, & Warfield, 2019).

Question 2: Dividends Paid to Common Shareholders in 2019

As of January 1, 2018, Towson had 6,000 shares of $100 par, 4% cumulative preferred stock. Total annual dividends for preferred stock equate to 6,000 shares x $100 par x 4% = $24,000 per year. Since preferred dividends are cumulative, unpaid dividends from previous years accumulate. The preference for dividends in 2018 was not paid, resulting in an accumulated dividend of $24,000. In 2019, a total of $95,000 was paid in dividends. First, preferred shareholders are paid their accumulated dividends, leaving $95,000 - $24,000 = $71,000 for common shareholders. Therefore, the total dividends paid to common shareholders during 2019 amount to $71,000. This allocation underscores the priority of preferred dividends, emphasizing the rights of preferred shareholders over common shareholders, especially when dividends are deferred (Ross, Westerfield, & Jaffe, 2019).

Question 3: Recording Paid-in Capital for Treasury Stock Reacquired and Reissued by Brunswick

Brunswick issued 15,000 shares of $10 par common stock for $15 each, thus receiving total proceeds of 15,000 x $15 = $225,000. When 2,000 shares are reacquired at $20 per share on July 1, 2018, Brunswick's treasury stock account increases by 2,000 x $20 = $40,000. Reissuing 700 of these treasury shares at $23 per share yields total reissuance proceeds of 700 x $23 = $16,100. The cost basis for reissued treasury stock is based on the reacquisition cost of $20 per share, totaling 700 x $20 = $14,000. The difference between reissue proceeds and the cost basis contributes to Paid-in Capital from Treasury Stock. Therefore, additional paid-in capital from reissuance is $16,100 - $14,000 = $2,100. This amount will be recorded as Paid-in Capital – Treasury Stock, reflecting the excess over the cost basis (Brigham & Ehrhardt, 2016).

Question 4: Effect of Stock Dividend on Additional Paid-in Capital

Towson declared a 5% stock dividend when the market value was $16 per share. The number of shares before the dividend is derived from the common stock account balance of $1,100,000 at a $10 par value, which equates to 110,000 shares. A 5% dividend adds 5,500 shares (110,000 x 5%). The total market value of the dividend shares is 5,500 x $16 = $88,000. Since the stock dividend is distributed at market value, the amount transferred from retained earnings (or the common stock account) to the common stock account is based on par value, which is 5,500 x $10 = $55,000. The excess of the total market value over the par value, $88,000 - $55,000 = $33,000, is credited to Additional Paid-in Capital - Common Stock. Therefore, this amount ($33,000) reflects the increase in paid-in capital resulting from the stock dividend distribution (Weygandt, Kieso, & Kimmel, 2019).

Question 5: Unrealized Gains or Losses on Trading Securities

Easton Company acquired trading securities during the third quarter of 2018. Securities in X Company (1,500 shares at $25), Y Company (1,300 shares at $30), and Z Company (1 share at $30) were acquired. On November 10, the Y Company stock was sold at $31 per share. Year-end market values are X at $47, Y at $15, and Z at $27 per share. The unrealized gain or loss is calculated based on the change in fair value from the cost to the year-end market value for securities still held. For X, the unrealized gain per share is $47 - $25 = $22, totaling 1,500 x $22 = $33,000. For Y, with an unrealized loss, the calculation is $15 - $30 = -$15 per share, totaling 1,300 x -$15 = -$19,500. For Z, the unrealized gain is $27 - $30 = -$3 per share, totaling 1 x -$3 = -$3. The sale of Y shares at $31 does not affect unrealized gains/losses but recognizes realized gains, not considered here. Summing the unrealized gains and losses, the overall unrealized loss for 2018 is ($33,000 + (-$19,500) + (-$3)) = -$52,503. This negative amount indicates a net unrealized loss recorded in the financial statements (FASB, 2020).

Question 6: Allowance for Uncollectible Accounts Using Aging Method

Arundel uses aging to estimate uncollectible accounts, with specific recovery rates based on account age. The balance sheet shows receivables of $230,000, with portions categorized into

Question 7: Allowance for Uncollectible Accounts Using Percentage of Sales

Using the percentage of sales method, estimated uncollectibles are calculated based on total credit sales. Total sales for 2018 are $715,000, and at an estimated 1.5%, the uncollectible amount is $715,000 x 1.5% = $10,725. Given the existing credit balance in Allowance for Uncollectible Accounts is $6,000, the adjustment needed is to bring the allowance to reflect the new estimate. Therefore, the amount to be credited at year-end is $10,725 - $6,000 = $4,725. This amount will be recorded as Bad Debt Expense, reflecting the expected loss from uncollectible receivables (Lamb, 2018).

Question 8: Inventory Valuation Using LIFO Method

Salisbury Company’s inventory activity involves multiple purchases and sales. Using the last-in, first-out (LIFO) method, units sold are assumed to come from the most recent purchases. The ending inventory comprises the oldest inventory costs. Calculating ending inventory involves listing the latest purchases and subtracting the quantities sold from these. The purchases are on May 1