Describe types and sources of data and information required for preparing your budget and forecast. Please include examples with your answer

On July 1, 2010, ABC co. had a cash balance of $10 000.During July the following summary transactions were completed.

1.Received $1,200 cash from customers on account.

2.Received $2,400 cash for services performed in July.

3.Purchased store equipment on account $3,000.

4.Paid cash $ 2000 for a one – year insurance policy.

5.Purchased supplies on account $1,200.

6.Paid creditors $4,400 on account.

7.Performed services on account and billed customers for services provided $1,500.

8.Signed a contract with Alex company to buy furniture of $2 000 next month.

9.Received $800 from customers for future service.

10.Paid salaries of $ 5 000.

11.Rent of $400 was unpaid at July 31.

Required:

(a) Journalize the transactions.

(b) Post to the cash ledger account.

The general ledger of Zips Storage at January 1, 2021, includes the following account balances:

The following is a summary of the transactions for the year:

2. Prepare a post-closing trial balance. (Hint: The balance of Retained Earnings will be the amount shown in the balance sheet.)

4. Prepare an unadjusted trial balance

7. Prepare an adjusted trial balance

8-a. Prepare the income statement for the year ended December 31, 2021.

8-b. Prepare the classified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

9. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

1. 3. 6. & 10. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances.

Thornton Manufacturing Company was started on January 1, 2018, when it acquired $86,000 cash by issuing common stock. Thornton immediately purchased office furniture and manufacturing equipment costing $7,700 and $35,500, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,500 salvage value and an expected useful life of four years. The company paid $11,900 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid $10,010 for raw materials that were used to make inventory. All inventory was started and completed during the year. Thornton completed production on 4,300 units of product and sold 3,340 units at a price of $14 each in 2018. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.)

Required

1. Determine the total product cost and the average cost per unit of the inventory produced in 2018. (Round "Average cost per unit" to 2 decimal places.)

2. Determine the amount of cost of goods sold that would appear on the 2018 income statement. (Do not round intermediate calculations.)

3. Determine the amount of the ending inventory balance that would appear on the December 31, 2018, balance sheet. (Do not round intermediate calculations.)

4. Determine the amount of net income that would appear on the 2018 income statement.

5. Determine the amount of retained earnings that would appear on the December 31, 2018, balance sheet.

6. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet.

Jordan Inc. makes a smartphone case that includes a battery that extends the operating life of an iPhone. The manufacturing costs per unit include $14 direct materials, $16 direct labor and $8 manufacturing overhead. These costs are based on a production and sales volume of 4,000 units. Advertising costs amounted to $24,000. Research and development cost for the materials used in the phone cases amounted $27,000. Companywide administrative costs amounted to $44,000. Fashion design costs amounted to $29,000. Jordan’s management team established the sales price at 150 percent of GAAP-defined product cost.

Required

1. Determine the total amount of upstream costs.

2. Determine the total amount of downstream cost.

3. Determine the total amount of midstream cost.

4. Determine the sales price per unit.

5. Prepare a GAAP-based income statement.

Are there other ways to measure productivity increases besides amount produced each year per hours of work?

Problem 12-19 Dropping or Retaining a Segment [LO12-2] Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House- keeping Revenues $ 935,000 $ 269,000 $ 409,000 $ 257,000 Variable expenses 469,000 116,000 199,000 154,000 Contribution margin 466,000 153,000 210,000 103,000 Fixed expenses: Depreciation 69,200 8,500 40,500 20,200 Liability insurance 44,100 20,900 7,600 15,600 Program administrators’ salaries 116,000 40,500 38,900 36,600 General administrative overhead* 187,000 53,800 81,800 51,400 Total fixed expenses 416,300 123,700 168,800 123,800 Net operating income (loss) $ 49,700 $ 29,300 $ 41,200 $ (20,800) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year’s net operating income of $49,700 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided. Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. Should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement. 2-b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services?

In 2018, Bogart paid $20,000 of interest on a mortgage on his home (Bogart borrowed $600,000 in 2015 to buy this primary residence and it is currently worth $1,000,000). In 2018 Bogart also paid $12,000 of interest on a $150,000 home equity loan on his home, and $10,000 of interest on a mortgage on his vacation home (loan of $300,000; home purchased for $400,000 in 2016). How much interest expense can Bogart deduct as an itemized deduction in 2018?

Hello: Can someone explain the below? I am trying to understand the below.

How does net income and assets vary for each of the below?

1) furniture company sold an unused piece of land next door to their manufacturing facilities. land was purchased for $2M years back and sold for $4M. buyer paid in cash.

2) goodwill was over valued by $25M. Company recorded the entry to adjust goodwill to current value

3) company repurchased $5M of common stock and is holding them as treasury stock

4) company split its common stock 2 for 1 (one share split to 2 shares)

5) company employees exercised 2000 vested stock options with strike price of $100 each

6) company wrote off $2M of accounts receivable.

enus Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at March 31, 2016:

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Blending Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

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1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory.

Learning Objective 2, Learning Objective 4.

2. Assuming that the March 1 work in process inventory includes $16,740 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and March. If required, round your answers to the nearest cent.

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Target pretax income= $0

Investment= $2 million

Capacity=1 million units

1. Assume that the volume of dolls sold increases to 225,000 units, with no change in fixed or variable costs. What is the new pretax income? Does the number produced by your financial model appear to be reasonable? (Manually estimate the increase in pretax income if volume increases and fixed costs remain constant.)

2. Based on the original assumptions, what is the effect on pretax income if variable costs increase by 5% for each of the three product lines?Assume that nothing else changes.

3. Return to the original assumptions. Assume that a sales manager proposed a new advertising campaign to boost sales volume. The campaign would cost $30,000 and is estimated to increase the volume of each product as follows:

Baby doll sales increase by 20,000 units.

Teddy bear sales increase by 7,500 units.

Toy car sales increase by 30,000 units.

What would be the effect on pretax income if this plan were adopted?

4.Return to the original assumptions. Now assume that, due to competition, Toddler Toys must cut prices on each of its three products by 20%. In addition, a new advertising campaign costing $45,000 must be instituted to counteract bad publicity. Given these assumptions, what is the new breakeven point?

5.Return to the original assumptions. What would be the pretax income if Toddler Toys increased the price of all three products by 10% and the volume of each product line decreased by 5%?

6.Given the same assumptions as in Part 5, how many units must Toddler Toys sell to earn a target pretax income of $100,000? a target pretax income of $150,000? a pretax return on investment (ROI) of 10%?(Hint: To determine the target pretax income, multiply 10% by the amount invested.)

AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, then poured into molds to produce the castings. On May 1, there were 360 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 360 pounds was $50,112, determined as follows:

During May, the Casting Department was charged $353,600 for 2,600 pounds of alloy and $22,651 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,760 pounds of finished castings to the Machining Department. The May 31 inventory in process was 15% complete as to conversion.

Required:

Target pretax income= $0

Investment= $2 million

Capacity=1 million units

1.Return to the original assumptions. Now assume that, due to competition, Toddler Toys must cut prices on each of its three products by 20%. In addition, a new advertising campaign costing $45,000 must be instituted to counteract bad publicity. Given these assumptions, what is the new breakeven point?

income using accrual accounting decides a firm's ability to to meet long-term obligations. Is this different if a company uses cash based accounting instead? Why or why not?