Acct221Omit all general journal entry explanations.Ensure to include correct dollar signs, underlines & double underlines.Question 1 30%pointsOn December 31, 2014, Frick Incorporated, had the following balances (all balances arenormal)



Omit all general journal entry explanations.

Ensure to include correct dollar signs, underlines & double underlines.

Question 1: 30%points:

On December 31, 2014, Frick Incorporated, had the following balances (all balances are


Accounts Amount

Preferred Stock, ($100 par value, 5%noncumulative,

50,000 shares authorized, 10,000 shares issued and



Common Stock ($10 par value, 200,000 shares

authorized, 100,000 shares issued and outstanding)


Paid-in Capital in Excess of par, Common 150,000

Retained Earnings 700,000

The following events occurred during 2014 and were not recorded:

a. On January 1, Frick declared a 5% stock dividend on its common stock when

the market value of the common stock was $15 per share. Stock dividends were

distributed on January 31 to shareholders as of January 25.

b. On February 15, Frick reacquired 1,000 shares of common stock for $20 each.

c. On March 31, Frick reissued 250 shares of treasury stock for $25 each.

d. On July 1, Frick reissued 500 shares of treasury stock for $16 each.

e. On October 1, Frick declared full year dividends for preferred stock and $1.50

cash dividends for outstanding shares and paid shareholders on October 15.

f. One December 15, Frick split common stock 2 shares for 1.

g. Net Income for 2014 was $275,000.


a. Prepare journal entries for the transactions listed above.

b. Prepare a Stockholders' section of a classified balance sheet as of December 31, 2014.



Question 2: 5%points:

On January 1, 2014, Frick Company purchased 10,000 shares of the stock of Floozy, and

did obtain significant influence. The investment is intended as a long-term investment.

The stock was purchased for $90,000, and represents a 30% ownership stake. Floozy

made $25,000 of net income in 2014, and paid dividends of $10,000. The price of

Floozy's stock increased from $10 per share at the beginning of the year, to $12 per share

at the end of the year.


a. Prepare the January 1 & December 31 general journal entries for Frick Company.

b. How much should the Frick Company report on the balance sheet for the investment in

Floozy as the end of 2014



Question 3: 10%points:

The following is selected information from Flip Company for the fiscal years ended

December 31, 2014: Flip Company had net income of $1,225,000. Depreciation was

$500,000, purchases of plant assets were $1,250,000, and disposals of plant assets for

$500,000 resulted in a $50,000 gain. Stock was issued in exchange for an outstanding

note payable of $725,000. Accounts receivable decreased by $25,000. Accounts payable

decreased by $40,000. Dividends of $300,000 were paid to shareholders. Flip Company

had interest expense of $50,000. Cash balance on January 1, 2014 was $250,000.

Requirements: Prepare Flip Company's statement of cash flows for the year ended

December 31, 2014 using the indirect method.



Question 4: 15%points:

Frick Corporation had the following bond transactions during the fiscal year 2014:

a. On January 1: issued ten (10), $1,000 bonds at 102. The 5-year bonds, is dated

January 1, 2014. The contract interest rate is 6%. Straight-line amortization

method is used. Interest is payable semi-annual on January 1 and July 1.

b. On July 1: Frick Corporation issued $500,000 of 10%, 10-year bonds. The

bonds dated January 1, 2014 were issued at 88.5, and pay interest on July 1 and

January 1. Effective interest rate method is used for these bonds is 12%.

c. On October 1: issued 10-year bonds $10,000 face value bonds, for $10,853

cash. The bonds have a stated rate of 8%, but an effective rate of 6%. Effectiveinterest

method is used. Interest is payable on October 1 and April 1.

Requirements: Prepare all general journal entries for the three bonds issued and any

interest accruals and payments for the fiscal year 2014. (Round all calculations to nearest

whole dollar.)



Question 5: 5%points:

Flip had sales of $10,000 (100 units at $100 per). Manufacturing costs consisted of direct

labor $1,500, direct materials $1,400, variable factory overhead $1,000, and fixed factory

overhead $500. The company did not maintain any inventories, so total cost of goods

sold was $4,400. Selling expenses totaled $1,600 ($600 variable and $1,000 fixed), and

administrative expenses totaled $1,500 ($500 variable and $1,000 fixed). Operating

income was $2,500. Round all final answers to nearest dollar or whole number.


a. What is the breakeven point in sales dollars and in units if the fixed factory

overhead increased by $1,700?

b. What is the breakeven point in sales dollars and in units if costs remain as

originally projected?

c. What would be the operating income be if sales units increased by 25%



Question 6: 5%points:

Flip manufactures footballs. The forecasted income statement for the year before any

special orders included sales of $4,000,000 (sales price is $10 per unit.) Manufacturing

cost of goods sold is anticipated to be $3,200,000. Selling expenses are expected to be

$300,000, and operating income is projected at $500,000. Fixed costs included in these

forecasted amounts are $1,200,000 for manufacturing cost of goods sold and $100,000

for selling expenses. Floozy is offering a special order to buy 50,000 footballs for $7.50

each. There will be no additional selling expenses, and sufficient capacity exists to

manufacture the extra footballs.

Requirements: Prepare an incremental analysis schedule to demonstrate by what amount

would operating income be increased or decreased as a result of accepting the special




Question 7: 5%points:

Flop Company manufactures 10,000 units of widgets for use in its annual production.

Costs are direct materials $20,000, direct labor $55,000, variable overhead $45,000, and

fixed overhead $70,000. Floozy Company has offered to sell Flop 10,000 units of

widgets for $18 per unit. If Flop accepts the offer, some of the facilities presently used to

manufacture widgets could be rented to a third party at an annual rental of $15,000.

Additionally, $4 per unit of the fixed overhead applied to widgets would be totally


Requirements: Prepare an incremental analysis schedule to demonstrate if Flop should

accept Floozy's offer.

Calculate your paper price
Pages (550 words)
Approximate price: -

High Quality Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level or professional level, and we will assign a writer who has a respective degree.


Experienced Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.


Free Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document.


Timely Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension.A 100% refund is guaranteed.


100% Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.


24/7 Customer Services

Tutorpro support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Tutorpro Homework Help Services

At Tutorpro, we have top rated masters and PhD writers who will help you tacke that homework and score A+ grade. Tutorpro services covers all levels of education : high school, college, university undergraduate, masters and PhD academic level.


Essay Writing

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.



Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.



Essay Editing

Tutorpro academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.



Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. This is free because we want you to be completely satisfied with the service offered.