Questions
The T account balances for the accounts of Rya’s Planning Services as of January 31, 2019...

The T account balances for the accounts of Rya’s Planning Services as of January 31, 2019 are listed below.

Cash $ 22,000
Accounts Receivable 18,000
Office Supplies 800
Equipment 20,000
Accounts Payable 9,880
Rya Page, Capital 29,000
Rya Page, Drawing 6,100
Planning Fees Income 34,150
Office Supplies Expense 310
Rent Expense 910
Salaries Expense 4,100
Utilities Expense 810
  1. Prepare an income statement for the Rya’s Planning Services for the month ended January 31, 2019.
  2. Prepare a statement of owner’s equity for Rya’s Planning Services for the month ended January 31, 2019.
  3. Prepare a balance sheet for Rya’s Planning Services as of January 31, 2019.

In: Accounting

Sales Forecast and Flexible Budget Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette,...

Sales Forecast and Flexible Budget

Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 14,960 for the Sleepeze, 12,080 for the Plushette, and 5,460 for the Ultima. Gene Dixon, vice president of sales, has provided the following information:

  1. Salaries for his office (including himself at $62,550, a marketing research assistant at $44,900, and an administrative assistant at $27,450) are budgeted for $134,900 next year.
  2. Depreciation on the offices and equipment is $17,050 per year.
  3. Office supplies and other expenses total $20,900 per year.
  4. Advertising has been steady at $19,000 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 10 percent of first-year Ultima sales for a print and television campaign.
  5. Commissions on the Sleepeze and Plushette lines are 3 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores.
  6. Last year, shipping for the Sleepeze and Plushette lines averaged $45 per unit sold. Gene expects the Ultima line to ship for $75 per unit sold since this model features a larger mattress.

Required:

1. Suppose that Gene is considering three sales scenarios as follows:

Pessimistic Expected Optimistic
Price Quantity Price Quantity Price Quantity
Sleepeze $185 12,190 $204 14,960 $204 17,580
Plushette 297 9,990 354 12,080 365 14,600
Ultima 880 2,180 950 5,460 1,140 5,460

Prepare a revenue budget for the Sales Division for the coming year for each scenario.

Olympus, Inc.
Revenue Budget
For the Coming Year
Pessimistic Expected Optimistic
Sleepeze $ $ $
Plushette
Ultima
Total sales $ $ $

2. Prepare a flexible expense budget for the Sales Division for the three scenarios above. If required, round answers to the nearest dollar.

Olympus, Inc.
Flexible Expense Budget
For the Coming Year
Pessimistic Expected Optimistic
Salaries $ $ $
Depreciation
Office supplies and other
Advertising:
Sleepeze and Plushette
Ultima
Commissions
Shipping:
Sleepeze
Plushette
Ultima
Total $ $ $

In: Accounting

Exercise 18-19 On June 3, 2017, Martinez Company sold to Ann Mount merchandise having a sales...

Exercise 18-19 On June 3, 2017, Martinez Company sold to Ann Mount merchandise having a sales price of $8,700 (cost $6,090) with terms of n/60, f.o.b. shipping point. Martinez estimates that merchandise with a sales value of $870 will be returned. An invoice totaling $110 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Martinez $300 of merchandise containing flaws. Martinez estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $23, paid by Martinez on June 8. On July 16, the company received a check for the balance due from Mount. Prepare journal entries for Martinez Company to record all the events in June and July. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) (To record sales returns) (To record cost of goods returned) (To record the freight cost) Click if you would like to Show Work for this question: Open Show Work

In: Accounting

1- List and describe the different sources of American law and how they originate. 2- Briefly...

1- List and describe the different sources of American law and how they originate.

2- Briefly explain what is the difference between utilitarian and duty based ethics?

3- Discuss the differences and similarities between sole proprietorships and general partnerships as well as the advantages and disadvantages of one versus the other.

4- What is the difference between a de-jure and a de-facto corporation?

5- Discuss the role and powers of shareholders in a corporation. 6- What are the duties of the board of directors and how are they elected?

7- Discuss what type of conduct is prohibited and/or regulated by sections 1 and 2 of the Sherman Act.

8- Discuss the difference between patents and copyrights. 9- Discuss the meaning, applicability and the limitations of the doctrine of employment at will.

10- Discuss what does it mean to be Holder in Due Course (HDC), what are its benefits, and what are the requirements to qualify as an HDC.

11- What is a secured interest and what are the requirements for the creation of a secured interest?

12- Discuss the purpose, the similarities and differences of Chapter 7 and Chapter 13 types of bankruptcies.

In: Accounting

Sylvan Inc. entered into a non-cancelable lease arrangement with Breton Leasing Corporation for a certain machine....

Sylvan Inc. entered into a non-cancelable lease arrangement with Breton Leasing Corporation for a certain machine. Breton's primary business is leasing;it is not a manufacturer or dealer. Sylvan will lease the machine for a period of 3 years, which is 50% of the machine's economic life. Breton will take possession of the machine at the end of the initial 3-year lease and lease it to another, smaller company that does not need the most current version of the machine. Sylvan does not guarantee any residual value for the machine and will not purchase the machine at the end of the lease term.

Sylvan's incremental borrowing rate is 10%, and the implicit rate in the lease is 9%. Sylvan has no way of knowing the implicit rate used by Breton. Using either rate, the present value of the minimum lease payments is between 90% and 100% of the fair value of the machine at the date of the lease agreement.

Sylvan has agreed to pay all executory costs directly, and no allowance for these costs is included in the lease payments.

Breton is reasonably certain that Sylvan will pay all lease payments. Because Sylvan has agreed to pay all executory costs, there are no important uncertainties regarding costs to be incurred by Breton. Assume that no indirect costs are involved.

Instructions

(a)  With respect to Sylvan (the lessee), answer the following.

How should Sylvan compute the appropriate amount to be recorded for the lease or asset acquired?

What accounts will be created or affected by this transaction, and how will the lease or asset and other costs related to the transaction be recorded in earnings?

What disclosures must Sylvan make regarding this leased asset?

(b)  With respect to Breton (the lessor), answer the following.  

How should this lease be recorded by Breton, and how are the appropriate amounts determined?

How should Breton determine the appropriate amount of revenue to be recognized from each lease payment?

What disclosures must Breton make regarding this lease?

In: Accounting

The firm Prussian Clausewitz produces three products: Blücher, Napoleon, and Wellington. These three products are sold...

The firm Prussian Clausewitz produces three products: Blücher, Napoleon, and Wellington. These three products are sold at a sales mix of 1:3:2, respectively.

Blücher Napoleon Wellington
Price (per unit) $5,000 $18,000 $15,000
Variable Cost per Unit $4,000 $5,000 $5,000

The firm has $6,000,000 in fixed costs. How many Napoleon units must the firm sell at breakeven (round up to nearest unit if necessary)?

Selected Answer: d.

462 Napoleon units.

Answers: a.

100 Napoleon units.

b.

1,385 Napoleon units.

c.

300 Napoleon units.

d.

462 Napoleon units.

In: Accounting

Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments...

Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash payments January $ 526,000 $ 471,700 February 406,500 352,200 March 464,000 533,000 According to a credit agreement with the company’s bank, Kayak promises to have a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $160,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)

In: Accounting

The stockholders’ equity section of Stellar Inc. at the beginning of the current year appears below....

The stockholders’ equity section of Stellar Inc. at the beginning of the current year appears below.

Common stock, $10 par value, authorized 1,043,000 shares, 321,000 shares issued and outstanding$3,210,000Paid-in capital in excess of par—common stock562,000Retained earnings624,000

During the current year, the following transactions occurred:

1) The company issued to the stockholders 109,000 rights. Ten rights are needed to buy one share of stock at $30. The rights were void after 30 days. The market price of the stock at this time was $32 per share.

2) The company sold to the public a $204,000, 10% bond issue at 104. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $28 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8.

3) All but 5,450 of the rights issued in (1) were exercised in 30 days.

4) At the end of the year, 80% of the warrants in (2) had been exercised, and the remaining were outstanding and in good standing.

5) During the current year, the company granted stock options for 10,800 shares of common stock to company executives. The company, using a fair value option-pricing model, determines that each option is worth $10. The option price is $28. The options were to expire at year-end and were considered compensation for the current year.

6) All but 1,080 shares related to the stock-option plan were exercised by year-end. The expiration resulted because one of the executives failed to fulfill an obligation related to the employment contract.

Prepare the stockholders’ equity section of the balance sheet at the end of the current year. Assume that retained earnings at the end of the current year is $771,000.

In: Accounting

For your fourth assignment we will be covering the Partnership chapter. Partnerships are very similar to...

For your fourth assignment we will be covering the Partnership chapter. Partnerships are very similar to sole proprietorships in many ways but it adds the old mantra of "two heads are better than one" to the mix. After reading the chapter please complete the following questions.

1. What are some examples of industries that the business entities still commonly setup in the partnership business form?

2. Why would a group of people organize their business as a partnership?

3. What is the difference between the entity theory and aggregate theory of partnerships?

In: Accounting

1. A corporation issues $500,000 of 20-year, 7% bonds dated January 1 at 95. The journal...

1.

A corporation issues $500,000 of 20-year, 7% bonds dated January 1 at 95. The journal entry to record the issuance will include

Group of answer choices

a credit to Bonds Payable for $500,000.

a credit to Premiums on Bonds Payable for $25,000.

a debit to Interest Expense for $25,000.

a credit to Discount on Bonds Payable for $25,000.

a debit to Cash for $500,000.

2.

If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at

Group of answer choices

the conversion rate

a premium.

the termination rate

a discount.

par.

In: Accounting

Forecast Sales Volume and Sales Budget For 20Y8, Raphael Frame Company prepared the sales budget that...

Forecast Sales Volume and Sales Budget

For 20Y8, Raphael Frame Company prepared the sales budget that follows.

At the end of December 20Y8, the following unit sales data were reported for the year:

Unit Sales
8" × 10" Frame 12" × 16" Frame
East 27,501 10,504
Central 6,464 3,822
West 5,723 3,193
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y8
Product and Area Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East 26,700 $27 $720,900
Central 6,400 27 172,800
West 5,900 27 159,300
Total 39,000 $1,053,000
12" × 16" Frame:
East 10,100 $28 $282,800
Central 3,900 28 109,200
West 3,100 28 86,800
Total 17,100 $478,800
Total revenue from sales $1,531,800

For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" × 10" frame is expected to increase to $28 and the unit selling price for the 12" × 16" frame is expected to increase to $30, effective January 1, 20Y9.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

Unit Sales,
Year Ended 20Y8
Increase (Decrease)
Actual Over Budget
Budget Actual Sales Amount Percent
8" × 10" Frame:
East %
Central %
West %
12" × 16" Frame:
East %
Central %
West %

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

20Y8
Actual
Units
Percentage
Increase
(Decrease)
20Y9
Budgeted
Units (rounded)
8" × 10" Frame:
East %
Central %
West %
12" × 16" Frame:
East %
Central %
West %

3.  Prepare a sales budget for the year ending December 31, 20Y9.

Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y9
Product and Area Unit Sales Volume Unit Selling Price Total Sales
8" × 10" Frame:
East $ $
Central
West
Total $
12" × 16" Frame:
East $ $
Central
West
Total $
Total revenue from sales $

In: Accounting

QUESTION 1 Required: #1. Prepare journal entries to record the December transactions in the General Journal...

QUESTION 1 Required: #1. Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec Began business by depositing $8500 in a bank account in the name of the company in exchange for 850 shares of $10 per share common stock. 1-Dec Paid the rent for the current month, $1250 . 1-Dec Paid the premium on a one-year insurance policy, $1320 . 1-Dec Purchased Equipment for $3600 cash. 5-Dec Purchased office supplies from XYZ Company on account, $300 . 15-Dec Provided services to customers for $8400 cash. 16-Dec Provided service to customers ABC Inc. on account, $7000 . 21-Dec Received $3000 cash from ABC Inc., customer on account. 23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 . 28-Dec Paid wages for the period December 1 through December 28, $5040 . 30-Dec Declared and paid dividend to stockholders $200 . #2. Post all of the December transactions from the “General Journal” tab to the T-accounts under the “T-Accounts” tab in the excel template file "Accounting Cycle Excel Template.xlsx". Assume there are no beginning balances in any of the accounts.   #3. Compute the balance for each T-account after all of the entries have been posted. These are the unadjusted balance as of December 31. #4. Prepare the unadjusted trial balance under the “Unadjusted Trial Balance” tab in the excel template file "Accounting Cycle Excel Template.xlsx" . Provide the total of the credit column from the Unadjusted Trial Balance #5. Record the following four transactions as adjusting entries under the “General Journal” tab. 31-Dec One month’s insurance has been used by the company $110. 31-Dec The remaining inventory of unused office supplies is $90. 31-Dec The estimated depreciation on equipment is $60. 31-Dec Wages incurred from December 29 to December 31 but not yet paid or recorded total $540. #6. Post all of the adjusting entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the adjusting entries have been posted. These are the adjusted balance as of December 31. #7. Prepare the adjusted trial balance under the “Adjusted Trial Balance” tab as of December 31 in the excel template file "Accounting Cycle Excel Template.xlsx" . Provide the following accounts balances from the Adjusted Trial Balance: Cash    Accounts Receivable Supplies    Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Wages Payable    Common Stock Retained Earnings    #8. Prepare Income Statement, Statement of Stockholder’s Equity, and Classified Balance Sheet under the “Financial Statements” tab for the month ended December 31, 20XX in the excel template file "Accounting Cycle Excel Template.xlsx". Provide the following amount from the Income Statement: Service Revenue Depreciation Expense    Wages Expense    Supplies Expense Rent Expense Insurance Expense Net Income Provide the following account balance from the Statement of Stockholders' Equity: Dividends Provide the following account balances from the Balance Sheet: Current Assets                               Long-Term Assets                     Total Liabilities                   Total Stockholder’s Equity             Cash                              #9. Record the closing entries under the “General Journal” tab. #10. Post all of the closing entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the closing entries have been posted. Provide the ending balance of Cash at December 31 from the T-account                    Provide the balance of the Retained Earnings T-account after closing entries have been posted.   Does the ending balance of the Retained Earnings T-account agree with the balance of Retained Earnings on the Balance Sheet? Check Point: Total Assets $ 17,160.00 just need 8,9,10.

In: Accounting

CHAPTER 21 (8.) Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS...

CHAPTER 21 (8.)

Portions of the financial statements for Myriad Products are provided below.

MYRIAD PRODUCTS COMPANY
Income Statement
For the Year Ended December 31, 2018
($ in millions)
Sales $ 1,000
Cost of goods sold 350
Gross margin 650
Salaries expense $ 175
Depreciation expense 108
Patent amortization expense 5
Interest expense 48
Loss on sale of land 4 340
Income before taxes 310
Income tax expense 155
Net Income $ 155
MYRIAD PRODUCTS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2018 and 2017
($ in millions)
Year
2018 2017 Change
Cash $ 153 $ 140 $ 13
Accounts receivable 271 292 (21 )
Inventory 470 490 (20 )
Accounts payable 228 214 14
Salaries payable 112 126 (14 )
Interest payable 72 60 12
Income taxes payable 63 50 13


Required:
Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the direct method.

In: Accounting

What is leverage and what are two major types of leverage? Define each.

What is leverage and what are two major types of leverage? Define each.

In: Accounting

Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption...

Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown:

Hi-Tek Manufacturing Inc.
Income Statement
Sales $ 1,699,200
Cost of goods sold 1,228,786
Gross margin 470,414
Selling and administrative expenses 590,000
Net operating loss $ (119,586 )

Hi-Tek produced and sold 60,000 units of B300 at a price of $20 per unit and 12,800 units of T500 at a price of $39 per unit. The company’s traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company’s two product lines is shown below:

B300 T500 Total
Direct materials $ 400,400 $ 162,200 $ 562,600
Direct labor $ 120,000 $ 42,600 162,600
Manufacturing overhead 503,586
Cost of goods sold $ 1,228,786

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek’s ABC implementation team concluded that $52,000 and $109,000 of the company’s advertising expenses could be directly traced to B300 and T500, respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company’s manufacturing overhead to four activities as shown below:

Manufacturing
Overhead
Activity
Activity Cost Pool (and Activity Measure) B300 T500 Total
Machining (machine-hours) $ 212,106 90,900 62,800 153,700
Setups (setup hours) 130,380 78 240 318
Product-sustaining (number of products) 100,200 1 1 2
Other (organization-sustaining costs) 60,900 NA NA NA
Total manufacturing overhead cost $ 503,586

Required:

1. Compute the product margins for the B300 and T500 under the company’s traditional costing system.

2. Compute the product margins for B300 and T500 under the activity-based costing system.

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.

Compute the product margins for the B300 and T500 under the company’s traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.)

B300 T500 Total
Product margin $0

Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.)

B300 T500 Total
Product margin

$0

Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.)

B300 T500 Total
% of % of
Amount Amount Amount
Traditional Cost System
% %
% %
% %
Total cost assigned to products $0 $0 $0
Total cost $0
B300 T500 Total
% of % of
Amount Total Amount Amount Total Amount Amount
Activity-Based Costing System
Direct costs:
% %
% %
% %
Indirect costs:
% %
% %
% %
Total cost assigned to products $0 $0 0
Costs not assigned to products:
Total cost $0

In: Accounting