Southwestern Rentals, Inc., rents equipment to customers ranging from homeowners to large construction companies. The financial information shown below was gathered from its accounting records for 2003. Assume any increase or decrease in the balances from 1/1/03 to 12/31/03 resulted from either receiving or paying cash in the transaction. For example, during 2003 the balance on loans for land holdings increased $150,000 because the company received$150,000 in cash by taking out an additional loan on the land.

1.Prepare a statement of cash flows for Southwestern Rentals, Inc., for the year ended December 31, 2003.

2. Interpretive Question: Does Southwestern Rentals, Inc., appear to be in good shape from a cash flow standpoint? What other information would help you analyze the situation?

AMC Movie Theatre

Movie theaters generate revenue through ticket and concession sales, but
most of a theatre’s profit comes from concession sales – popcorn, soft drinks,
candy, and related snacks. Because concession sales are down, the Board of
Directors of AMC wants to add either (a) wine and beer, or (b) cappuccino and
hot chocolate, to the menu in each of the theatres they own, nationwide. The
AMC Board has hired you (a team of consultants) to research these options, and
to provide a recommendation: should they sell wine and beer, or should they
sell cappuccino and hot chocolate? You will need to conduct research to
determine (or estimate) what the profit potential is for each option, what the
theatre might have to invest in equipment, and what risks each option might
pose. Consider possible solutions (for example, can they offer one of these
products while minimizing risk somewhat?), establish criterion/criteria to
narrow down the solutions, provide a single recommendation, and discuss
implementation considerations.

Attachments:

Group-Project….pdf

Workpaper (mid-year acquisition of 80% interest, downstream inventory sales)

Pop Corporation acquired an 80 percent interest in Sat Corporation on October 1, 2011, for $82,400, equal to 80 percent of the underlying equity of Sat on that date plus $16,000 goodwill (total goodwill is $20,000). Financial statements for Pop and Sat Corporations for 2011 are as follows (in thousands):

ADDITIONAL INFORMATION

1. In November 2011, Pop sold inventory items to Sat for $12,000 at a gross profit of $3,000. One-third of these items remained in Sat’s inventory at December 31, 2011, and $6,000 remained unpaid.

2. Sat’s dividends were declared in equal amounts on March 15 and November 15, and its income was earned in proportionate amounts throughout each quarter of the year.

3. Pop applies the equity method such that its net income is equal to the controlling share of consolidated net income.

REQUIRED: Prepare a workpaper to consolidate the financial statements of Pop Corporation and Subsidiary for the year ended December 31, 2011.

Computations and entries (subsidiary issues additional shares to public)

Pin Corporation purchased 960,000 shares of Sit Corporation’s common stock (an 80 percent interest) for $21,200,000 on January 1, 2011. The $2,000,000 excess of investment fair value over book value acquired was goodwill.

On January 1, 2013, Sit sold 400,000 previously unissued shares of common stock to the public for $30 per share. Sit’s stockholders’ equity on January 1, 2011, when Pin acquired its interest, and on January

1, 2013, immediately before and after the issuance of additional shares, was as follows (in thousands):

REQUIRED

1. Calculate the balance of Pin’s Investment in Sit account on January 1, 2013, before the additional stock issuance.

2. Determine Pin’s percentage interest in Sit on January 1, 2013, immediately after the additional stock issuance.

3. Prepare a journal entry on Pin’s books to adjust for the additional share issuance on January 1, 2013, if gain or loss is not recognized.

(Accounting for Patents) Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Fields does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes which it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells a patent. The history of Fields patent number 758-6002-1A is as follows.

Fields assumed a useful life of 17 years when it received the initial precipitator patent. On January 1, 2011, it revised its useful life estimate downward to 5 remaining years. Amortization is computed for a full year if the cost is incurred prior to July 1, and no amortization for the year if the cost is incurred after June 30. The company’s year ends December 31.

Instructions

Compute the carrying value of patent No. 758-6002-1A on each of the following dates:

(a) December 31, 2006.

(b) December 31, 2010.

(c) December 31, 2013.

Introduction to Psychology Article Summary Assignment Fall 2013 1 As you re learning, psychology advances by way of research and academic discourse. More specifically, as a college student, you will be required to know how to obtain and evaluate scholarly articles. This requirement is designed to help you become knowledgeable consumers of the literature. To this objective, you will hand in 1 summary that is worth a total of 100 points (equivalent to an exam grade). Assignment: I will provide you with options from which to select your article (See below).

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Introduction to Psychology Article Summary Assignment Fall 2013 1 As you re learning, psychology advances by way of research and academic discourse. More specifically, as a college student, you will be required to know how to obtain and evaluate scholarly articles. This requirement is designed to help you become knowledgeable consumers of the literature. To this objective, you will hand in 1 summary that is worth a total of 100 points (equivalent to an exam grade). Assignment: I will provide you with options from which to select your article (See below). Once located, your job will be to summarize the article according to the guidelines below. Each summary should be between 3-4 double-spaced pages (12 point normal font-e.g. Times New Roman, 1-inch margins, stapled with numbered pages) and. Your reference page must conform to APA style. Suggestions for Reading the Article and Writing the Summary ? Highlight selectively and/or take notes on a separate sheet of paper-Do not copy passages. Take note of important facts and use your own words. ? Most articles can be divided into the following sections: Introduction Methods Results and Discussion. These articles are easiest to summarize because you can glean important information from each section and it can help you to organize your summary. * Introduction: What is the rationale for the study? This section usually states the hypothesis(es). What are they? * Method: What was the population from which the sample was drawn? Why was this particular sample selected? What did the participants do-e.g. complete a survey, participate in an interview? What kind of research was this: Experimental? Correlational?
Introduction to Psychology Article Summary Assignment Fall 2013 2 * Results: You do not have to focus heavily on statistical analyses here, but see if you can get a general idea of what was done. * Discussion: Were the author’s hypotheses supported or rejected? (Notedo not use the word “prove”) What were the author’s…

Attachments:

PSY-Research.pdf

Article-Summa….pdf

Amortization of Unrecognized Prior Service Cost – On January 1, 2007 the Baznik Company adopted a defined benefit pension plan. At that time the company awarded retroactive benefits to certain employees. These retroactive benefits resulted in an unrecognized prior service cost of $1,200,000 on that date. The company has six participating employees who are expected to receive the retroactive benefits. Following is a schedule that identifies the participating employees and their expected years of future service as of January 1, 2007:

The company decided to amortize the unrecognized prior service cost to pension expense using the years-of-future-service method. The following are the amounts of the components of Baznik Company’s pension expense, in addition to the amortization of the unrecognized prior service cost for 2007 and 2008:

The company contributed $850,000 and $830,000 to the pension fund at the end of 2007 and 2008, respectively. Ignore any additional pension liability.

Required

1. Prepare a set of schedules for the Baznik Company to determine (a) the amortization fraction for each year, and (b) the amortization of the unrecognized prior service cost.

2. Prepare the journal entries to record the pension expense for 2007 and 2008.

Pension Expense Different Than Funding – The Lane Company was incorporated in 1998. Because it had become successful, the company established a defined benefit pension plan for its employees on January 1, 2007. Due to the loyalty of its employees, the company granted retroactive benefits to them. These retroactive benefits resulted in $1,240,000 of unrecognized prior service cost on that date. The company decided to amortize these costs using the years-of-future-service method. The company’s actuary and funding agency have provided the following additional information for 2007 and 2008:

*Due to the unrecognized prior service cost

The company contributed $690,000 and $650,000 to the pension fund at the end of 2007 and 2008, respectively. No retirement benefits were paid in 2007. There are no other components of Lane Company’s pension expense; ignore any additional pension liability. The company rounds its calculations to the nearest dollar.

Required

1. Compute the amount of Lane Company’s pension expense for 2007 and 2008.

2. Prepare the December 31 journal entry to record the pension expense for 2007 and 2008.

3. What is the total prepaid/accrued pension cost at the end of 2008? Is it an asset or a liability?

4. Prepare a schedule that reconciles the beginning and ending amounts of the projected benefit obligation for 2007.