Crystal Lake Inc. bottles and distributes spring water. On March 4 of the current year, Crystal Lake reacquired 33,000 shares of its common stock at $84 per share. On August 27, Crystal Lake Inc. sold 25,000 of the reacquired shares at$90 per share. The remaining 8,000 shares were sold at $80 per share on November 11.

b. Compute the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year.

Hunt Company is considering purchasing a competing company in order to expand its market share. Estimates of the excess of the value of the individual assets, less liabilities to be assumed, range from $\$ 50,000$ to $\$ 60,000$, depending on the manner in which that excess is calculated. Hunt believes it can purchase the competitor for a direct cash outlay of $\$ 700,000$, which is only $\$ 25,000$ more than the value of the individual assets less the liabilities that Hunt will assume. Assuming Hunt makes the purchase for $\$ 700,000$, at what amount should goodwill be recorded? Briefly explain your answer.

Go to the book's website and download the file Employee data.xlsx link. You will need to have the Analysis Toolpak add-in installed in Excel. It can be found under the Tools tab. If it does not appear, select Excel Add-ins under the Tools tab, and then check Analysis Toolpak. From the Excel ribbon, select Data and then Data Analysis. From the pop-up window, choose Descriptive Statistics; then click OK. Select the salary column as the input range, and check the box for labels in the first row. Choose "New Worksheet" as the output option, click Summary Statistics, and click OK. Report the given: e. Number of salary observations in the database

What is the journal entry for bad debts recovered?

Why are adjusting entries necessary under accrual-basis accounting?

is accrued expense a debit or credit

During the year, a company recorded prepayments of expenses in asset accounts and cash receipts of unearned revenues in liability accounts. At the end of its annual accounting period, the company must make three adjusting entries.

(1) Accrue salaries expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dr. ___ Cr. ___

(2) Adjust the Unearned Services Revenue account to recognize earned revenue. . . . . . . Dr. ___ Cr. ___

(3) Record services revenue earned for which cash will be received the following period. . . Dr. ___ Cr. ___

For each of the adjusting entries (1), (2), and (3), indicate the account to be debited and the account to be credited—from a through i below.

c. Salaries Payable

Grey Products has $63.50 in selling price per unit,$380,000 in fixed operating costs, and $16 in variable operating costs per unit. Determine the unit operational breakeven threshold.

Burns Company’s 2019 and 2018 balance sheets presented the following data for equipment:

$$\begin{array}{lrr} &\textbf{12/31/2019}&\textbf{12/31/2018}\\\hline \text{Equipment}&\$325,000&\$262,000\\ \text{Accumulated depreciation}&\underline{~~133,900}&\underline{~~108,000}\\\ \text{Book value}&\underline{\underline{\$191,100}}&\underline{\underline{\$154,000}} \end{array}$$

During 2019, equipment costing $41,000 with accumulated depreciation of$36,700 was sold for cash, producing a $3,200 gain.

Required:

Calculate the amount that should be included as a cash inflow from the disposal of equipment.

The purpose of the Securities Act of 1933 is to regulate the initial offering of a firm's securities by ensuring that investors are given full and fair disclosure of all pertinent information about the firm. The Securities Exchange Act of 1934 was passed to regulate the trading of securities on secondary markets and to eliminate abuses in the trading of securities after their initial distribution. To accomplish these objectives, the 1934 act created the SEC. Under its auspices, public companies must not only register their securities but also periodically prepare and file Forms 8-K, 10-K, and 10-Q.

Required

With regard to Form 8-K, discuss the following:

(1) The report's purpose.

(2) The report's timing.

(3) The report's format.

(4) The role of financial statements in filing the report.

Costco, and Office Max. Scholes is concerned about the possible effects of inflation on its operations. Currently, the company sells 80,000 units for $60 per unit. The variable production costs are$30, and fi xed costs amount to $1,400,000. Production engineers have advised management that they expect unit labor costs to rise by 15 percent and unit materials costs to rise by 10 percent in the coming year. Of the$30 variable costs, 50 percent are from labor and 25 percent are from materials. Variable overhead costs are expected to increase by 20 percent. Sales prices cannot increase more than 10 percent. It is also expected that fixed costs will rise by 5 percent as a result of increased taxes and other miscellaneous fixed charges.

The company wishes to maintain the same level of profit in real dollar terms. It is expected that to accomplish this objective, profi ts must increase by 6 percent during the year.

Required
Compute the volume in units and the dollar sales level necessary to maintain the present profit level, assuming that the maximum price increase is implemented.

Marist Industries maintains its own exercise facility for employees and their families. To show its commitment to employee health, the company hired Thom Dyer, an Olympic hopeful The payroll register and employee earnings records provide all the payroll information needed to prepare payroll and payroll tax reports. Journal entries are made to record the payment of the payroll and employer payroll taxes. In addition, various quarterly and annual payroll tax reports are required to report the payment of payroll taxes. in weight lifting, as the facility manager. The company gave Thom a $20,000 budget to upgrade the exercise equipment. He used all the money to buy free weights, the equipment of choice for serious weightlifters.

To make room for the new weights, Thom removed several stationary bikes. Mary Ester, a 55-year-old manager, complained to Thom that he was "pushing out" the older employees. She told him that free weights would only be used by "younger" employees. In response, Thom explained his belief that weight training was the most effective exercise for people of all ages. Not satisfied with his answer, Mary filed an employment discrimination complaint against Thom with the ethics office of Marist Industries.

INSTRUCTIONS

Determine whether Thom acted ethically when he modified the mix of exercise equipment. Use the Employee Handbook for the Emerson Business Ethics Program as a guide. To access the handbook, enter its title in your internet browser's search engine.

Quick Fix-it Corporation was organized in January 2011 to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following capital stock:

$$\begin{array} {lrrrrr} \text{Common stock, \$10 par value, 98,000 shares}\\ \text{Preferred stock, \$50 par value, 8 percent, 59,000 shares}\\ \end{array}$$

During January and February 2011, the following stock transactions were completed:

a. Sold 78,000 shares of common stock at $20 per share and collected cash.

b. Sold 20,000 shares of preferred stock at$80 per share; collected the cash and immediately issued the stock.

c. Bought 4,000 shares of common stock from a current stockholder for $20 per share.

Required:

Net income for 2011 was$90,000; cash dividends declared and paid at year-end were $30,000. Prepare the stockholders’ equity section of the balance sheet at December 31, 2011.

Amy Tanner purchased renter's insurance with the following coverage: $100,000 liability for lawsuits and medical;$20,000 replacement cost for personal property, $500 deductible. One night, Amy left a candle burning that ended up causing a fire and destroying all of her personal belongings. The original cost of the belongings was$32,000.

1. How much did the insurance company pay for this claim?