• 6) ABC Company sold DEF company shoes for $67,000 on account. The shoes cost ABC $30,000. Write the journal entries for both ABC and DEF showing the sale by ABC followed by the receipt of payment & the purchase by DEF followed by the payment to ABC.
• 7) ABC Company sold DEF company shoes for $67,000 on account on terms 2/10 net 30. The shoes cost ABC $30,000. Write the journal entries for both ABC and DEF showing the sale by ABC followed by the receipt of payment & the purchase by DEF followed by the payment to ABC. They paid with the discount period.

Please create journal entries.  

1. Morningside Technologies Inc. uses flexible budgets that are based on the following data:

   Sales commissions	6% of sales
   Advertising expense	15% of sales
   Miscellaneous administrative expense	$1,450 per month plus 3% of sales
   Office salaries expense	$14,000 per month
   Customer support expenses	$2,050 plus 4% of sales
   Research and development expense	4,500 per month

2. Prepare a flexible selling and administrative expenses budget for April for sales volumes of $90,000, $115,000, and $135,000. Enter all amounts as positive numbers.

   Morningside Technologies Inc.
   Flexible Selling and Administrative Expenses Budget
   For the Month Ending April 30
   Total sales	$90,000	$115,000	$135,000
   Variable cost:
   Sales commissions	$	$	$
   Advertising expense
   Miscellaneous administrative expense
   Customer support expenses
   Total variable cost	$	$	$
   Fixed cost:
   Miscellaneous administrative expense	$	$	$
   Office salaries expense
   Customer support expenses
   Research and development expense
   Total fixed cost	$	$	$
   Total selling and administrative expenses	$	$	$

3. Personal Budget

   At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

   Cash balance, September 1 (from a summer job)	$6,730
   Purchase season football tickets in September	90
   Additional entertainment for each month	230
   Pay fall semester tuition in September	3,600
   Pay rent at the beginning of each month	320
   Pay for food each month	180
   Pay apartment deposit on September 2 (to be returned December 15)	500
   Part-time job earnings each month (net of taxes)	830

   a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign.

   KATHERINE MALLOY
   Cash Budget
   For the Four Months Ending December 31
   	September	October	November	December
   Estimated cash receipts from:
   Part-time job	$	$	$	$
   Deposit
   Total cash receipts	$	$	$	$
   Estimated cash payments for:
   Season football tickets	$
   Additional entertainment		$	$	$
   Tuition
   Rent
   Food
   Deposit
   Total cash payments	$	$	$	$
   Overall cash increase (decrease)	$	$	$	$
   Cash balance at beginning of month
   Cash balance at end of month	$	$	$	$

   b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
   c. Malloy can see that her present plan   sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $   at the end of December, with no time left to adjust.

4. Static Budget versus Flexible Budget

   The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year:

   Niland Company Machining Department Monthly Production Budget
   Wages	$396,000
   Utilities	34,000
   Depreciation	57,000
   Total	$487,000

   The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows:

   	Amount Spent		Units Produced
   January	$460,000		121,000
   February	441,000		110,000
   March	422,000		99,000

   The Machining Department supervisor has been very pleased with this performance because actual expenditures for January–March have been less than the monthly static budget of $487,000. However, the plant manager believes that the budget should not remain fixed for every month but should “flex” or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:

   Wages per hour	$15.00
   Utility cost per direct labor hour	$1.30
   Direct labor hours per unit	0.20
   Planned monthly unit production	132,000

   a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume that depreciation is a fixed cost. Enter all amounts as positive numbers. If required, use per unit amounts carried out to two decimal places.

   Niland Company-Machining Department
   Flexible Production Budget
   For the Three Months Ending March 31
   	January	February	March
   Units of production
   Wages	$	$	$
   Utilities
   Depreciation
   Total	$	$	$

   b. Compare the flexible budget with the actual expenditures for the first three months.

   	January	February	March
   Total flexible budget	$	$	$
   Actual cost
   Excess of actual cost over budget	$	$	$

   What does this comparison suggest?

   The Machining Department has performed better than originally thought.
   The department is spending more than would be expected.

5. Flexible Budget for Assembly Department

   Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department:

   Direct labor per filing cabinet	30 minutes
   Supervisor salaries	$147,000 per month
   Depreciation	$20,000 per month
   Direct labor rate	$15 per hour

   Prepare a flexible budget for 14,000, 18,000, and 21,000 filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5. Assuming that inventories are not significant. Enter all amounts as positive numbers.

   CABINAIRE INC-ASSEMBLY DEPARTMENT
   Flexible Production Budget
   For the Month Ending August 31 (assumed data)
   Units of production	14,000	18,000	21,000
   Variable cost:
   Direct labor	$	$	$
   Total variable cost	$	$	$
   Fixed cost:
   Supervisor salaries	$	$	$
   Depreciation
   Total fixed cost	$	$	$
   Total department cost	$	$	$

Given Information:          
Lincoln Corporation had no noncash investing and financing transactions for 2018. During the year, Lincoln sold equipment for $15,100, which had originally cost $12,700, with a book value of $10,700. Lincoln did not issue any notes payable during the year, but did issue common stock for $30,000. Note that the corporation's board of directors authorized the payment of dividends for the year.          
          
Lincoln Corporation          
Income Statement          
For the Period Ending December 31, 2018
          
Sales revenue $347,000
Cost of goods sold 78,000
Gross profit $269,000

Operating expenses:          
Salaries expense $26,500       
Depreciation expense 4,900       
Other operating expenses   12,500      43,900
Operating Income $225,100

Other incomes and expenses:          
Gain on Sale of equipment   $4,400       
Interest expense 9,900        5,500
Income before taxes $219,600
Income tax expense (36,600)
Net Income $183,000
          
          
          
Lincoln Corporation          
Balance Sheets          
          
Year ended December 31,      
Assets 2018       2017
Current Assets:          
Cash and cash equivalents $50,000        $23,500
Accounts receivable 32,100        29,100
Inventory 86,000 93,300
Prepaid insurance 3,300 2,800
Total current assets: $171,400        $148,700
Property, plant & equipment   153,000        136,000
Less: Accumulated depreciation(30,000)       (27,100)
Investments 113,000        -   
Total Assets $407,400        $257,600

Liabilities          
Current Liabilities:          
Accounts payable (Inventory purchases)   $33,200        $36,500
Salaries payable 2,900        7,400
Interest payable 2,400        -   
Taxes payable 5,300        -   
Other accrued operating expenses 18,800        22,100
Total current liabilities 62,600        66,000
Bonds Payable 78,000        113,000
Total Liabilities 140,600        179,000

Stockholders' Equity          
Common stock 107,000        77,000
Retained earnings 159,800        1,600
Total stockholders' equity 266,800        78,600
Total liabilites and equity $407,400        $257,600
          
Instructions: Prepare a statement of cash flows using the indirect method.           

What are the correct journal entries and adjusting entries for the below transaction? I'm having trouble identifying the journal and adjusting entries in 'bank situations'. The textbook doesn't come with answers.

3. Using the regular Treasury note of Problem 2:

a. What is its price if investors’ required rate of return is 6.0 percent on similar bonds? Treasury notes pay interest semiannually.

b. Erron Corporation wants to issue five-year notes but investors require a credit risk spread of 3 percentage points. What is the anticipated coupon rate on the Erron notes?

the treasuring note of problem 2

2. Judy Johnson is choosing between investing in two Treasury securities that mature in five years and have par values of $1,000. One is a Treasury note paying an annual coupon of 5.06 percent. The other is a TIPS that pays 3 percent interest annually.

a. If inflation remains constant at 2 percent annually over the next five years, what will be Judy’s annual interest income from the TIPS bond? From the Treasury note?

b. How much interest will Judy receive over the five years from the Treasury note? From the TIPS?

c. When each bond matures, what par value will Judy receive from the Treasury note? From the TIPS?

d. After five years, what is Judy’s total income (interest + par) from each bond? Should she use this total as a way of deciding which bond to purchase?

Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chapped skin. After considerable research, a winter products line has been developed. However, Silven’s president has decided to introduce only one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated. The product selected (called Chap-Off) is a lip balm that will be sold in a lipstick-type tube. The product will be sold to wholesalers in boxes of 24 tubes for $10 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $115,500 charge for fixed manufacturing overhead will be absorbed by the product under the company’s absorption costing system. Using the estimated sales and production of 165,000 boxes of Chap-Off, the Accounting Department has developed the following manufacturing cost per box: Direct material $ 4.70 Direct labor 3.00 Manufacturing overhead 2.10 Total cost $ 9.80 The costs above relate to making both the lip balm and the tube that contains it. As an alternative to making the tubes for Chap-Off, Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $2.00 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, its direct labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and its direct materials costs would be reduced by 30%. Required: 1. If Silven buys its tubes from the outside supplier, how much of its own Chap-Off manufacturing costs per box will it be able to avoid? (Hint: You need to separate the manufacturing overhead of $2.10 per box that is shown above into its variable and fixed components to derive the correct answer.) 2. What is the financial advantage (disadvantage) per box of Chap-Off if Silven buys its tubes from the outside supplier? 3. What is the financial advantage (disadvantage) in total (not per box) if Silven buys 165,000 boxes of tubes from the outside supplier? 4. Should Silven Industries make or buy the tubes? 5. What is the maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? 6. Instead of sales of 165,000 boxes of tubes, revised estimates show a sales volume of 203,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $70,000 per year to make the additional 38,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 203,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 203,000 boxes of tubes from the outside supplier? Given this new information, should Silven Industries make or buy the tubes? 7. Refer to the data in (6) above. Assume that the outside supplier will accept an order of any size for the tubes at a price of $2.00 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier?

what documentation should you access prior to making a collection call?
how can you negotiate with customers so that both they and the organisation you represent are happy with the outcome?
hat sort of procedures might be in place to deal with accounts that are outside of agreed terms?

what non financial (qualitative) information might be useful for management team of Singapore Airlines company? provide two examples and explain why. (250 words)

Characteristics of Production Process, Cost Measurement

Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScape estimated the following for the year:

During the year, the following actual amounts were experienced:

Vince Melders, owner of EcoScape, noticed that the watering systems for many houses in a local subdivision had the same layout and required virtually identical amounts of prime cost. Vince met with the subdivision builders and offered to install a basic watering system in each house. The idea was accepted enthusiastically, so Vince created a new company, Irrigation Specialties, to handle the subdivision business. In its first three months in business, Irrigation Specialties experienced the following:

Required:

1. Should Irrigation Specialties use process costing or job-order costing?

2. If Irrigation Specialties uses an actual costing system, what is the cost of a single system installed in June? In July? In August? Round your answers to the nearest dollar.

3. Now assume that Irrigation Specialties uses a normal costing system. Estimated overhead for the year is $64,600, and estimated production is 680 watering systems. What is the predetermined overhead rate per system?

$ per system installed

What is the cost of a single system installed in June? In July? In August?

In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation.

Indicate the error in 12/31/21 Retained Earnings:

Select one:

a. $400 overstated

b. $350 overstated

c. $400 understated

d. $350 understated

e. $550 understated

Question 29

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Question text

In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation.

Corrected 12/31/21 Total Equity will be:

Select one:

a. $78,450

b. $110,300

c. $77,950

d. $110,650

e. $78,650

Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

Bob Sample opened the Campus Laundromat on September 1, 2017. During the first month of operations, the following transactions occurred. Sep. 1 Bob invested $20,000 cash in the business. Sep. 2 The company paid $1,000 cash for store rent for September. Sep. 3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month, 12% note payable Sep. 4 Paid $1,200 for a one-year accident insurance policy. Sep. 10 Received a bill from the Daily News for online advertising of the opening of the laundromat $200. Sep. 20 Bob withdrew $700 cash for personal use. Sep. 30 The company determined that cash receipts for laundry services for the month were $6,200. Question1 Journalize the September transactions. (Use J1 for the journal page number.) (in General journal table) Question2. Open ledger accounts and post the September transactions Question3. Prepare a trial balance at September 30, 2017

Please answer ALL of the questions!

At the end of the year, a company offered to buy 4,100 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $18.00 each. The following information relates to the 68,400 units of the product that X Company made and sold to its regular customers during the year:

Fixed cost of goods sold for the year were $151,848, and fixed period costs were $78,660. Variable period costs include selling commissions equal to 4% of revenue.

6. Profit on the special order is

7. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.87 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit?

8. There is concern that regular customers will find out about the special order, and X Company's regular sales will fall by 700 units. As a result of these lost sales, X Company's profits would fall by

X Company currently makes a part and is considering buying it from a company that has offered to supply it for $19.45 per unit. This year, per-unit production costs to produce 54,000 units were:

$167,400 of the total overhead costs were variable; $39,960 of the fixed overhead costs cannot be avoided even if X Company buys the part. If the company buys the part, the resources that are used to make it cannot be used for anything else. Production next year is expected to increase to 57,400 units.

If X Company continues to make the part instead of buying it, it will save _______

The Perez Company has the opportunity to invest in one of two mutually exclusive machines that will produce a product it will need for the foreseeable future. Machine A costs $11 million but realizes after-tax inflows of $5 million per year for 4 years. After 4 years, the machine must be replaced. Machine B costs $13 million and realizes after-tax inflows of $3.5 million per year for 8 years, after which it must be replaced. Assume that machine prices are not expected to rise because inflation will be offset by cheaper components used in the machines. The cost of capital is 14%.

1. Using the replacement chain approach to project analysis, by how much would the value of the company increase if it accepted the better machine? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.
   $ ________ million

2. What is the equivalent annual annuity for each machine? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to two decimal places.

   Machine A	$ ________ million
   Machine B	$ ________ million