Business
The following transactions apply to Jova Company for Year 1, the first year of operation: a. Issued $17,000 of common stock for cash. b. Recognized $63,000 of service revenue earned on account. c. Collected $56,400 from accounts receivable.d. Paid operating expenses of $36,600. e. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2: a. Recognized $70,500 of service revenue on account. b. Collected $64,400 from accounts receivable. c. Determined that $860 of the accounts receivable were uncollectible and wrote them off. d. Collected $300 of an account that had previously been written off. e. Paid $48,100 cash for operating expenses. f. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account. Required: a. Identify the type of each transaction (asset source, asset use, asset exchange, or claims exchange).b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows. c. Prepare closing entries and post these closing entries to the T-accounts. Prepare the postclosing trial balance.
Pilot plus Pens is deciding when to replace its old machine. The old machines current salvage value is $2 million. Its current book value is $1 million. If not sold, the old machine will require maintenance costs of $400,000 at the end of the year, for the next five years. Depreciation on the old machine is $200,000 per year. At the end of five years, the old machine will have salvage value of $200,000 and a book value of $0. A replacement machine costs $3 million now and requires maintenance costs of $500,000 at the end of each year during its economic life of five years. At the end of five years, the new machine will have a salvage value of $500,000. It will be fully depreciated by the straight-line method. In five years, a replacement machine will cost $3,500,000. Pilot will need to purchase this machine regardless of what the choice it makes today. The corporate tax rate is 34% and the appropriate discount rate is 12%. The company is assumed to earn sufficient revenues to generate tax shields from depreciation. Should Pilot Plus replace the old machine now or at the end of five years? no excel and financial calculator, so please show the answer by hand written and how u get to the numbers
Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5][The following information applies to the questions displayed below.]The Sky Blue Corporation has the following adjusted trial balance at December 31. Debit Credit Cash $1,230 Accounts Receivable 2,000 Prepaid Insurance 2,300 Notes Receivable (long-term) 3,000 Equipment 12,000 Accumulated Depreciation $ 2,600 Accounts Payable 5,420 Salaries and Wages Payable 1,000 Income Taxes Payable 2,900 Deferred Revenue 600 Common Stock 2,400 Retained Earnings 1,000 Dividends 300 Sales Revenue 42,030 Rent Revenue 300 Salaries and Wages Expense 21,600 Depreciation Expense 1,300 Utilities Expense 4,220 Insurance Expense 1,400 Rent Expense 6,000 Income Tax Expense 2,900 Total $58,250 $ 58,250 M4-17Prepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. 1. What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? 2. If you expanded and hired additional people to help you, might that give rise to agency problems?3. Suppose you need additional capital to expand and you sell some stock to outside investors. If you maintain enough stock to control the company, what type of agency conflict might occur?4. List three provisions in the corporate charter that affect takeovers.5. Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?6. What is block ownership? How does it affect corporate governance?7. Briefly explain how regulatory agencies and legal systems affect corporate governance.