Prepare the 20xx income statement for melanie mielke

Question

Review the discussion on present value from the textbook, and complete the following requirements (you will find it helpful to access the present value tables hyper-linked within the online version of the textbook).

(a) Prepare basic calculations showing the current value of a $25,000 sum to be received in 4 years. You may assume that 6% is the appropriate discount rate. For this requirement, do not refer to the present value table.

(b) Verify your answer to part (a) by utilizing the appropriate present value factor from the applicable table.

(c) Construct a table of basic calculations showing how much an annuity of $25,000 received at the end of each year for four years is worth today. Assume a 6% discount rate. For this requirement, you may refer to the present value table for $1 (but, do not utilize the annuity table).

(d) Verify your answer to part (c) by utilizing the annuity present value factor from the applicable table.

Prepare journal entries to record each of the following independent stock issue situations.

(a) Sherri Hui Corporation issued 100,000 shares of $1 par value common stock. The issue price was $30 per share.

(b) Ariana Corporation issued 50,000 shares of no par common stock for $10 per share.

(c) Laser Golf issued 40,000 shares of $100 par value preferred stock. The issue price was $102 per share.

(d) Charleston Industries issued 5,000 shares of $5 par value common stock for land with a fair value of $75,000.

Melanie Mielke Construction Corporation is considering the appropriate accounting for two unrelated events during the year. The first event related to the effects of a labor strike that resulted in a work stoppage on a major construction project. $2,000,000 of building material that was left exposed to weather conditions during the strike was lost. The second event was a $3,000,000 unrealized gain on available-for-sale securities that continue to be held as an investment.

Melanie Mielke's annual sales were $9,000,000, at a gross margin of 15%. Selling expenses totaled $300,000, and administrative expenses totaled $800,000. Mielke is subject to a 30% income tax rate.

Prepare the 20XX income statement for Melanie Mielke Construction Corporation.

Attachment:- acct-221_quiz-1.xls

Answer 1

Read and review the discussion on present value from the text-book and complete the given requirements. a) Make fundamental computations exhibiting the current value of a $25,000 sum to be got in 4 years. You might suppose that 6% is the suitable discount rate. For this requirement, don’t refer to the present value table. b) Confirm your answer to part (a) by using the correct present value factor from the applicable table. c) Prepare a table of fundamental computations showing how much an annuity of $25,000 received at the end of each year for 4 years is worth nowadays. Suppose a 6% discount rate. For this need, you might refer to the present value table for $1 (however, don’t make use of the annuity table).