Required information
PA4-4 Identifying and Preparing Adjusting Journal Entries [LO 4-1, LO 4-2, LO 4-3, LO 4-6]
[The following information applies to the questions displayed below.]
Val’s Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts.
Account Names | Debit | Credit | Further Information | |||||||
Cash | $ | 2,800 | As reported on December 31 bank statement. | |||||||
Supplies | 3,300 | Based on count, only $800 of supplies still exist. | ||||||||
Prepaid Rent | 3,000 |
This amount was paid November 1 for rent through the end of January. |
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Accounts Payable | $ | 1,000 |
This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $350 of utility services through December 31 for which it has not yet been billed. |
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Salaries and Wages Payable |
0 |
Stylists have not yet been paid $100 for their work on December 31. |
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Income Tax Payable | 0 |
The company has paid last year’s income taxes but not this year’s taxes. |
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Common Stock | 1,000 | This amount was contributed for common stock in prior years. | ||||||||
Retained Earnings | 700 | This is the balance reported at the end of last year. | ||||||||
Service Revenue | 59,500 | Customers pay cash when they receive services. | ||||||||
Salaries and Wages Expense |
28,100 |
This is the cost of stylist wages through December 30. |
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Utilities Expense | 11,200 | This is the cost of utilities through December 15. | ||||||||
Rent Expense | 10,000 | This year’s rent was $1,000 per month. | ||||||||
Supplies Expense | 3,800 |
This is the cost of supplies used through November 30. |
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Income Tax Expense | 0 | The company has an average tax rate of 30%. | ||||||||
Totals | $ | 62,200 | $ | 62,200 | ||||||
PA4-4 Part 1
Required:
I have
Revunues
Service Revunue $59,500
Total Revnues 59,500
Expenses
Salaries and wages Expense 28,100
Utilities Expense 11,200
Rent Expense 10,000
Supplies Expense 3800
Income Tax Expense 0
Total Expenses 53,100
Net Income 6400
Now part 2
Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair.
1 Supplies - Supplies Expense Amount $2500
2 Prepaid Rent - Rent Expense $2000
3 Accounts Payable Utilities Expense $350
4 Salaries and wages payable- Salaries and wages expense $100
5 Income tax payable - income tax expense $0
part 3
PA4-4 Part 3
Not sure on this part or how to get income tax payable, any help would be greatly appreciated
PA4-4 Part 4
and this is the end of the question I need to order each one in steps 1,2,3,4 I appreciate the help a lot it will help me learn how to solve this thanks!
In: Accounting
Department S had no work in process at the beginning of the period. It added 11,400 units of direct materials during the period at a cost of $79,800; 8,550 units were completed during the period; and 2,850 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $52,000 and factory overhead was $8,600. The total cost of units completed during the period was
In: Accounting
1. When can a court exercise jurisdiction over a party whose only connection to a state is via the Internet? In other words, when might there by sufficient minimum contacts to give a court jurisdiction over a remote party? For instance, Is a passive website that can be accessed from anywhere enough to establish jurisdiction or is more needed?
2. Why would a corporation prefer to be seen as ethical? To whom does a corporation owe a duty and what if it finds itself subject to conflicting duties?
In: Accounting
Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations:
a. Materials purchased on account, $28,610. | |
b. Materials requisitioned and factory labor used: |
Job |
Materials |
Factory Labor |
301 | $2,810 | $2,640 |
302 | 3,710 | 3,920 |
303 | 2,340 | 1,910 |
304 | 8,210 | 7,110 |
305 | 5,360 | 5,270 |
306 | 3,780 | 3,390 |
For general factory use | 1,060 | 4,040 |
c. Factory overhead costs incurred on account, $5,710. | |
d. Depreciation of machinery and equipment, $1,910. | |
e. The factory overhead rate is $55 per machine hour. Machine hours used: |
Job | Machine Hours |
301 | 24 |
302 | 36 |
303 | 29 |
304 | 73 |
305 | 41 |
306 | 24 |
Total | 227 |
f. Jobs completed: 301, 302, 303 and 305. | |
g. Jobs were shipped and customers were billed as follows: Job 301, $8,520; Job 302, $10,770; Job 303, $15,650. |
Required: | |||
1. | Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on March 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles. | ||
2. | Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. For grading purposes enter transactions in alphabetical order. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank. | ||
3. | Prepare a schedule of unfinished jobs to support the balance in the work in process account.* | ||
4. | Prepare a schedule of completed jobs on hand to support the
balance in the finished goods account.*
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Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kurtz Fencing Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amount Descriptions
Amount Descriptions | |
Balance of Work in Process, January 30 | |
Finished Goods, January 30 (Job 305) | |
Job No. 301 | |
Job No. 302 | |
Job No. 303 | |
Job No. 304 | |
Job No. 305 | |
Job No. 306 |
Journal
1. Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on March 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 10
JOURNAL
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T Accounts
2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. For grading purposes enter transactions in alphabetical order. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.
Work in Process | |||
Bal. |
Finished Goods | |||
Bal. |
Schedule of Unfinished Jobs
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.
Kurtz Fencing Inc. |
Schedule of Unfinished Jobs |
1 |
Job |
Direct Materials |
Direct Labor |
Factory Overhead |
Total |
2 |
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3 |
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4 |
Schedule of Completed Jobs
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.
Kurtz Fencing Inc. |
Schedule of Completed Jobs |
1 |
Job |
Direct Materials |
Direct Labor |
Factory Overhead |
Total |
2 |
In: Accounting
"I think we goofed when we hired that new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this report that he prepared for last month for the Finishing Department. I can’t understand it."
Finishing Department costs: | |||
Work in process inventory, April 1,650 units; materials 100% complete; conversion 60% complete | $ | 8,816 | * |
Costs transferred in during the month from the preceding department, 3,150 units |
37,396 | ||
Materials cost added during the month | 16,002 | ||
Conversion costs incurred during the month | 33,120 | ||
Total departmental costs | $ | 95,334 | |
Finishing Department costs assigned to: | |||
Units completed and transferred to finished goods, 4,200 units at $22.700 per unit |
$ | 95,334 | |
Work in process inventory, April 30, 600 units; materials 0% complete; conversion 40% complete |
0 | ||
Total departmental costs assigned | $ | 95,334 | |
*Consists of cost transferred in, $4,316; materials cost, $2,100; and conversion cost, $2,400.
"He's struggling to learn our system," replied Frank Harrop, the operations manager. "The problem is that he's been away from process costing for a long time, and it's coming back slowly."
"It's not just the format of his report that I'm concerned about. Look at that $22.700 unit cost that he's come up with for April. Doesn't that seem high to you?" said Ms. Scarpino.
"Yes, it does seem high; but on the other hand, I know we had an increase in materials prices during April, and that may be the explanation," replied Mr. Harrop. "I’ll get someone else to redo this report and then we can see what’s going on."
Provost Industries manufactures a ceramic product that goes through two processing departments—Molding and Finishing. The company uses the weighted-average method in its process costing.
Required:
1-a. Calculate the equivalent units of production.
1-b. Calculate the cost per equivalent unit. (Round your answers to 2 decimal places.)
1-c. How much cost should have been assigned to the ending work in process inventory? (Round your intermediate calculations to 2 decimal places.)
1-d. How much cost should have been assigned to the units completed and transferred to finished goods? (Round your intermediate calculations to 2 decimal places.)
In: Accounting
Prepare a written Executive Summary Report regarding any company, using the information contained in the company’s balance sheet and income statement, the Internet or other resources, answering the following questions.
Company history: When was the company founded? By whom? List other historical facts.
2. Who is the audit firm for the company?
3. What stock exchange is the company listed on? What is their ticker symbol?
4. How much cash and cash equivalents did the company have at the end of its 2 most recent annual reporting periods?
5. What were the company’s total current assets at the end of its 2 most recent annual reporting periods?
In: Accounting
Diaz Company issued $80,000 face value of bonds on January 1, 2018. The bonds had a 6 percent stated rate of interest and a ten-year term. Interest is paid in cash annually, beginning December 31, 2018. The bonds were issued at 98. The straight-line method is used for amortization. Required a. Use a financial statements model like the one shown below to demonstrate how (1) the January 1, 2018, bond issue and (2) the December 31, 2018, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company’s financial statements. Use + for increase, − for decrease, and NA for not affected. b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, 2018. c. Determine the amount of interest expense reported on the 2018 income statement. d. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, 2019. e. Determine the amount of interest expense reported on the 2019 income statement.
In: Accounting
Terms of a lease agreement and related facts were:
The lease asset had a retail cash selling price of $114,000. Its useful life was six years with no residual value (straight-line depreciation). Annual lease payments at the beginning of each year were $23,346, beginning January 1. Lessor’s implicit rate when calculating annual rental payments was 9%. Costs of $2,562 for legal fees for the lease execution were the responsibility of the lessor. Required: Prepare the appropriate entries for the lessor to record the lease, the initial payment at its beginning, and at the December 31 fiscal year-end under each of the following three independent assumptions: 1. The lease term is three years and the lessor paid $114,000 to acquire the asset (operating lease). 2. The lease term is six years and the lessor paid $114,000 to acquire the asset. Also assume that adjusting the lease receivable (net investment) by initial direct costs reduces the effective rate of interest to 8%. 3. The lease term is six years and the lessor paid $90,000 to acquire the asset.
In: Accounting
All jurisdictions have legislation protecting seniority and benefits for qualified employees who are members of the Canadian Forces Reserves and who are deployed for active service. Compare the legislated requirements of your province/territory to those of another jurisdiction of your choice.
my province British Columbia
In: Accounting
In: Accounting
Carl Boger’s Dilemma Carl Boger recently interviewed for a staff auditing position with one of the accounting firms in Phoenix, where he plans to move after graduation from UNM. The firm agreed to cover the travel expenses, including airfare and hotels, from UNM to the firm’s office. Carl, who prefers to fly American Airlines and has the credit card wh ich allows for free checked bags, booked his round- trip ticket for the interview for a total fare of $300. The firm assu red Carl it would reimburse him for the airfare expense ra ther than the firm payi ng American directly. At the end of the interview, Carl presents th e airfare receipt, along w ith other receipts for hotels, to Janet, the audit firm’s controller. Janet provides a summar y of all of Carl’s expenses as Carl departs the audit offices after the interviews are completed. Janet informs Carl that a check will be mailed in 5-7 days. Carl leaves Phoenix and flies back to Albuquerque. On the flight back to Albuquerque, Carl review s the summary of expenses and notes that the firm has included $50 for “Airline Baggage Fees”; however, Carl did not pay any such fees as he has the credit card that waives all baggage fees. On the following Monday, Carl calls Janet to tell her of the oversight on the bill. Ja net explains that the firm has al ready processed the check with the $50 baggage fee reimbursement included and to “not worry about it because it’s already paid and not that large of an amount.” Ja net continues to explain that she is busy and that small amounts such as baggage fees are not scrutinized by the firm when processing expense reimbursements. She abruptly ends the call with Carl. Being a bright , aspiring business professional, Carl carefully considers his options and the potenti al ramifications of his decision.
REQUIREMENTS (be sure to incorporate into your responses when following the rubric): 1. What courses of action are available to Carl Boger? Identify at leas t three possible actions. 2. Discuss why each course of action may be ethical or non-ethical. 3. Which course of action should Carl choose ? Why?
In: Accounting
Almaden Hardware Store sells two product categories, tools and
paint products. Information pertaining to its 2018 year-end
inventory is as follows:
Inventory, by Product Category |
Quantity | Per Unit Cost |
Net Realizable Value | ||||||||
Tools: | |||||||||||
Hammers | 110 | $ | 5.70 | $ | 6.20 | ||||||
Saws | 270 | 10.70 | 9.70 | ||||||||
Screwdrivers | 370 | 2.70 | 3.30 | ||||||||
Paint products: | |||||||||||
1-gallon cans | 570 | 6.70 | 5.70 | ||||||||
Paint brushes | 110 | 4.70 | 5.20 | ||||||||
Required:
1. Determine the carrying value of inventory at
year-end, assuming the lower of cost or net realizable value
(LCNRV) rule is applied to (a) individual products, (b) product
categories, and (c) total inventory.
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2.
Assuming that the company reports an inventory write-down as a line item in the income statement, for each of the LCNRV applications determine the amount of the loss.
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In: Accounting
Unit 4 - Fernando's Fraud Triangle 48 48 unread replies. 48 48 replies. Fernando’s Fraud Triangle is a retail establishment that has been experiencing lower revenues in the last six months, even though sales are up to 21.1 %. Fernando’s sells whatever products you want to sell and takes cash, credit cards, and checks. All three categories-cash/checks/credit cards-have remained consistent with no significant increase-while sales are up. There are three employees and all have access to the register and can override refunds and any other items that need to be charged back. I have narrowed it down to three employees for you. You have been called in as the Fraud Examiner to see who has their fingers in the till. Mitch: 47 Years old; 14.2 years with the company/full time employee Recently divorced/ pays child support for two kids Wages are garnished by the courts for payment Drives a three year old Jag-u-Ar Just bought a new home Makes $88,282 a year Loves to dress in style Loves the night life Crystal: 31 Years old; 10.8 years with the company/full time employee Married/mother of two children Husband has a full time job Makes $72,262 a year Drives a four year old Volvo Recently bought a new home Loves to dress in style Loves the night life John: 21 years old; 5.3 years with the company/part time employee College student/accounting Just bought a four year old Hyundai Santa Fe Lives with his parents Pays for school Makes $38,282 a year, part time Single Loves to party and dress nice
In: Accounting
Forester Company has five products in its inventory. Information
about the December 31, 2018, inventory follows.
Product | Quantity | Unit Cost |
Unit Replacement Cost |
Unit Selling Price |
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A | 600 | $ | 12 | $ | 14 | $ | 18 | ||||||||||
B | 1,000 | 17 | 13 | 20 | |||||||||||||
C | 600 | 5 | 4 | 10 | |||||||||||||
D | 600 | 9 | 6 | 8 | |||||||||||||
E | 600 | 16 | 14 | 15 | |||||||||||||
The cost to sell for each product consists of a 10 percent sales
commission. The normal profit percentage for each product is 25
percent of the selling price.
Required:
1. Determine the carrying value of inventory at
December 31, 2018, assuming the lower of cost or market (LCM) rule
is applied to individual products.
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2a. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory. (Do not round intermediate calculations.)
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2b. Record any necessary year-end adjusting entry assuming that inventory write-downs are common for Forester Company.
Note: Enter debits before credits.
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In: Accounting
Smith-Kline Company maintains inventory records at selling
prices as well as at cost. For 2018, the records indicate the
following data:
($ in 000s) | ||||||
Cost | Retail | |||||
Beginning inventory | $ | 91 | $ | 130 | ||
Purchases | 518 | 905 | ||||
Freight-in on purchases | 23 | |||||
Purchase returns | 1 | 1 | ||||
Net markups | 3 | |||||
Net markdowns | 7 | |||||
Net sales | 800 | |||||
Required:
Assuming the price level increased from 1 at January 1 to 1.50 at
December 31, 2018, use the dollar-value LIFO retail method to
approximate cost of ending inventory and cost of goods sold.
(Do not round intermediate calculations. Round final
answers to the nearest whole dollar. Enter your answers in
thousands.)
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In: Accounting