Question # 1

Barhom’s Cellular (BC) is a distributor and sells phones for $1250. BC gets the phones for $900 each. BC pays the sales staff a commission of 10% for each phone sold. BC’s fixed selling, administrative & other fixed costs total $36,900 per year.

Required:

1. How many phones BC needs to sell to achieve a target profit of $51,000 a year?

2. BC is considering selling another type of phone. The new phone has a cost of $1,400 and will be sold for $2,000 each. The sales commission policy will apply for the new phone too. Barhom expects that out of every four phones he sells one will be from the new one and three from the old one. How many phones of each he needs to sell to breakeven.

Question #6.2: For each of the following independent cases:

a) Record the transaction using the accounting equation. Be specific about account names & $ amounts.

b) Indicate the effect of each transaction on the Statement of Cash Flow (SCF). Specify which section(s) of the SCF the transaction affects and in what direction. If there is no effect on the SCF, write “no effect”.

discuss the concept of cloud cost management, its application and other related issues

Please write a minimum of 150 words each

6. When is revenue earned and therefore should be recognized?

7. When a company pays $10,000 for insurance that will cover it for two years, the transaction is not immediately recognized as an expense. Explain why.

8. Distinguish between cash flows resulting from operating activities, financing activities, and investing activities.

Question # 3   Answer each of the following independent questions.

1. On Jan. 10, 2015 AIE Co. bought a plant asset with a cost of $216,000, estimated life of 6 years, and residual value of $36,000, is depreciated by the straight-line method. On Oct. 19, 2019 The asset was sold for $116,000. Required: Determine the amount of gain or loss to be recognized on this sale. Explain how the sale would be reported in the financial statements of AIE Co.

2. At the beginning of 2017 TW Co. reported Supplies on hand balance of $400. During 2017 TW Co. purchased additional supplies for $1,100. Physical count at the end of 2017 revealed a balance of $250 worth of supplies. Show how TW Co. would report the supplies related accounts in the income statement and balance sheet at the end of 2017?

3. During 2016, Dubai Theatre bought projection equipment on installment basis. The contract price was $23,610, payable $5,610 down, and $2,250 a month for the next eight months. The cash price for this equipment was $22,530. Additional $850 were paid for wiring & ventilation work. The costs of running the projection equipment during 2016 was $450. Determine the cost at which the Projection equipment will be recorded in the books of Dubai Theatre.

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Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $44,200. The machine's useful life is estimated at 10 years, or 392,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 33,200 units of product.

Exercise 8-5 Units-of-production depreciation LO P1

Determine the machine’s second-year depreciation using the units-of-production method.

Under which method are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?

The fixed assets of a business are:

1. Webber Technologies is an emerging manufacturer of 3.5 inch diagonal touch screens for mobile communication devices/media players. 2011 industry sales were reported at 17.21 million units. This number represents an 19.2 % increase over 2010 industry sales. Webber Technologies had a 2010 market share of 5.8 %, compared with a 2011 market share of 4.2%. What was the change in unit sales for Webber Technologies, from 2010 to 2011, attributable to the change in industry sales? Report your answer in individual units

2. Webber Technologies is an emerging manufacturer of 3.5 inch diagonal touch screens for mobile communication devices/media players. 2011 industry sales were reported at 17.63 million units. This number represents an 18.5% increase over 2010 industry sales. Webber Technologies had a 2010 market share of 5.8 %, compared with a 2011 market share of 4.1 %. What was change in unit sales for Webber Technologies, from 2010 to 2011, attributable to its change in market share? Report your answer in individual units.

The citizens of Spencer County approved the issuance of $2,003,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows:

a. Prepare any closing entries necessary at year-end

b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund.

c. Prepare a Balance Sheet for the courthouse annex capital project fund, assuming all unexpended resources are restricted to construction of the courthouse annex.

Question #6: For each of the following independent cases:

a) Record the transaction using the accounting equation. Be specific about account names & $ amounts.

b) Indicate the effect of each transaction on the Statement of Cash Flow (SCF). Specify which section(s) of the SCF the transaction affects and in what direction. If there is no effect on the SCF, write “no effect”.

On January 1, 2018, Bishop Company issued 10% bonds dated January 1, 2018, with a face amount of $19.6 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to the nearest whole dollar.) Required: 1. Determine the price of the bonds at January 1, 2018. 2. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2018. 3. Prepare the journal entry to record interest on June 30, 2018, using the effective interest method. 4. Prepare the journal entry to record interest on December 31, 2018, using the effective interest method.

Lars Linken opened Sheffield Cleaners on March 1, 2017. During March, the following transactions were completed.

Journalize the following adjustments. (Credit account titles are automatically indented when the 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.)

Boston’s Dairy has just opened its main yogurt factory in upstate Massachusetts. This main factory can produce 3,500 boxes of yogurt monthly (each box contains twelve 6-oz cups). Due to overwhelming demand for the company’s product, Boston’s Dairy has signed a contract to rent a new factory, which can produce up to 8,000 boxes per month. The monthly total fixed costs are $40,000 in the main factory and $16,000 in the new factory. The variable production cost of yogurt is $4.50 per box in the main factory. The variable production cost in the new factory is $6.0 per box as materials have to be redistributed from the main factory. The average selling price is $15, and the variable selling expense is $1 per box, which is the same for all factories. In addition, Boston’s Dairy plans to pay its sales force $0.80 per box as added bonus for every box sold above the break-even point. How many boxes does the company have to produce and sell in order to earn a net operating income of $10,000 per month (round all decimal up to one box)