During the current year, KB has the following costs:

Utility Costs for Home $2,500

Maintenance and Repairs for Home 3,100

Property Taxes for Home 5,400

House Insurance 1,300

Interest on Mortgage 4,600

Home Telephone Monthly Charge 600

Separate Line to Home-Work-Space Monthly Charge 480

Employment Related Long Distance Charges 560

Home Internet Service Fees 720

KB estimates that he/she uses 18 percent of his residence and 30 percent of his home internet service for employment/business related purposes. Maximum CCA on 100 percent of the house would be $12,000. Determine the maximum deduction that would be available to Mr. Beasley assuming:

A. He is an employee with $72,000 in income (no commissions).

B. He is an employee with $72,000 in commission income.

Why cash conversion cycle is important to measure company’s liquidity?

At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $3,075; Inventory $4,075; and Common Stock $7,150. The following transactions occurred during April 2017.

1) Journalize the April transactions using a periodic inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)

2) Using T accounts, enter the beginning balances in the ledger accounts and post the April transactions. (Post entries in the order of journal entries posted in part a. Round answers to 0 decimal places, e.g. 5,275. For accounts that have a zero balance select "4/30 Bal." from the list and enter 0 for the amount.)

3) Prepare a trial balance on April 30, 2017. (Do not list those accounts that have zero ending balance.)

4) Prepare an income statement through gross profit, assuming inventory on hand at April 30 is $4,902.

1)

Suburbia Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for February 2016 are as follows:

Required:
Calculate the Following using the weighted average method:

2)

Daosta Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Required:

Using the FIFO method:

On Jan 1, 2012, Roger Company issued $2,000,000, 9%, 5-year bonds dated Jan 1, 2012, at 97. The bonds pay semiannual interest on Jan 1 and July 1. The company uses the straight-line method of amortization and has a calendar year-end.

Prepare all the journal entries on the dates Jan 1 and July 1.

Skysong, Inc. began the year with retained earnings of $308000. During the year, the company issued $417000 of common stock, recorded expenses of $1193000, and paid dividends of $80400. If Skysong ending retained earnings was $328000, what was the company’s revenue for the year? $1293400 $1213000 $1630000 $1710400

Part 1: Record the following transactions for Classic Canine Cuts for the month of December in the General Journal.

Transaction Date Description
1 12/1 Issued 100,000 shares of common stock for $100,000.
2 12/2
A retail space is rented. Paid for one year of rent in advance totaling $24,000. (rent is $2,000 per month)
3 12/4 Purchased equipment for the business totaling $36,000.
4 12/5 Purchased $1,500 of supplies on account.
5 12/7 Provided services to customers for cash totaling $5,000.
6 12/9
Purchased an ad in the local newspaper to run during December for $400.
7 12/12
Customers purchased $1,000 of gift certificates for services to be provided in the future (pre-paid for future services).
8 12/15
Paid employee salaries for the first half of December totaling $1,200.
9 12/17 Paid $1,000 for the supplies that were purchased on December 5th.
10 12/20 Provided $2,500 of services to customers on account.
11 12/25 Paid a cash dividend of $800 to the shareholders.
12 12/30 Received $1,500 on account for services provided on 12/20.

Part 2: Post all of the transactions for the month of December from the General Journal to the General Ledger

General Journal – Adjusting Entries Part 4

Ref # Date Account Debit Credit
A 1
  
  
A 2
  
  
A 3
  
  
A. 4
  
  
A. 5
  
  

What are cost drivers? How do cost drivers relate to cost pools? What are some cost pools? Name two or three different cost drivers for each of these cost pools.

What are value-added processes? How do you determine if a process adds value? How does identifying value-added processes help a company run more efficiently and effectively?

Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department. The Work in Process T-account for the Grinding Department for May is given below:

The May 1 work in process inventory consisted of 44,000 pounds with $64,680 in materials cost and $23,320 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 30% complete with respect to conversion. During May, 355,000 pounds were started into production. The May 31 inventory consisted of 123,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method in its process costing system.

Required:

1. Compute the Grinding Department's equivalent units of production for materials and conversion in May.

2. Compute the Grinding Department's costs per equivalent unit for materials and conversion for May.

3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May.

4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May.

Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 608,000 $ 40 Variable expenses 425,600 28 Contribution margin 182,400 $ 12 Fixed expenses 151,200 Net operating income $ 31,200 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $75,600? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company’s CM ratio? If sales increase by $83,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

Highlands Company uses the weighted-average method in its process costing system. It processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp processed during June are provided below:  

Required:  

1. Compute the number of tons of pulp completed and transferred out during June.

2. Compute the equivalent units of production for materials and for labor and overhead for June.

Harry and Sons’ Law Offices opened on January 1,2018. During the first year of business the company had the following transactions.

January 2: The owners Invested 300,000 (the par value of the stock) into the business and acquired 30,000 shares of common stock in return.

January 15: Harry and Sons’ bought an office building in the amount of $85,000. The company took out a long-term note from the bank to finance the purchase.

February 12: Harry and Son’ billed clients for $85,000 of services performed.

March 1: Harry and Sons’ took out a two-year insurance policy, which it paid cash for in the amount of $18,000.

March 10: harry collected $30,000 from clients toward the outstanding accounts receivable balance.

May 13: Harry received cash payments totaling $270,000 for legal services-$55,000 was for services previously billed to customers on February 12 and the remainder was for services provided in May not yet recorded.

June 10: Harry purchased office supplies in the amount of $25,000, all on credit.

July 15: Harry paid wages of $24,000 in cash to office staff workers.

August 8: Harry paid off the $25000 balance owed to a supplier for the purchase made June 10.

September 3:Harry and Sons’ purchased $5,000 of office supplies in cash.

September 20: The company paid $14,000 cash for utilities.

October 1: Harry and Sons’ paid wages in the amount of $22,000 to office workers.

December 1: Harry and Sons’ received cash payments from clients in the amount of $310,000 for services to be performed in the upcoming months.

December 31: Harry declared and paid a $18,000 dividend.

*Additional Information

• Of the cash payments received from customers on December 1, half of these services were performed in December and half relates to future services to be rendered in the following year.   

• Ten months of the insurance policy expired by the end of the year.

• Depreciation for the full year should be recorded on the building purchased. the building has a 20-year life and no residual value. Depreciation will be recorded on a straight-line bases.

• A total of $12,000 of office supplies remains on hand at the end of the year.

• Interest Expense in the amount of $4,250 should be accrued on the note payable.

• Wages in the amount of $48,000 must be accrued at year end to be paid in January.

Harry’s Unadjusted Trial Balance at December 31,2018 is as follows.

Unadjusted Trial Balance

At December 31,2018

Account Debit Credit

Cash $784,000

Office Supplies 30,000

Prepaid Insurance 18,000

Building 85,000

Unearned Service Revenue $310,000

Notes Payable 85,000

Common Stock 300,000

Dividends 18,000

Service Revenue 300,000

Wage Expense 46,000

Utilites Expense 14,000

Total: $995,000 $995,000

Requirements

A) Journalize and post adjusting journal entries for Harry and Sons’.

B) Post the adjusting Journal entries to the T-accounts to obtain the adjusted balances.

C) Prepare a Single-Step Income Statement, Statement of Shareholders Equity, and a Balance Sheet.

1) Determine the price of a $1 million bond issue under each of the following independent assumptions:

2) Prepare journal entries to record the issuance for each of the following the above independent assumptions

3) Only for Assumption 1 and 2, prepare an amortization schedule that determines interest at the effective rate.

For each of the following inventory errors occurring in 2018, determine the effect of the error on 2018's cost of goods sold, net income, and retained earnings using understated (U), overstated (O), or no effect (NE). Assume that the error is not discovered until 2019 and that a periodic inventory system is used. Ignore income taxes.