Questions
during 2016, Liang's bookstore paid $484,000 for land and built a store in Georgetown. prior to...

during 2016, Liang's bookstore paid $484,000 for land and built a store in Georgetown. prior to construction, the city of Georgetown charged Liang's $1,300 for a building permit, which Liang's paid. Liang's also paid %15,300 for architect's fees. the construction cost of $685,000 was fascinated by a long-term note payable with interest cost of $28,220 paid at completion of the project. the building was completed June 30, 2016. Liang's depreciates the building by the straight-line method over 35 years with estimated residual value of $336.000.

requirements:

1. journalize transaction for the following

a. purchase of the land

b. all the cost chargeable to the building in a single entry

c. depreciation on the building for 2016

2. report Liang's bookstore's plant assets on the company's balance sheet at December 31, 2016.

3. what's Liang's income statement for the year ended December 31, 2016, report for these facts

In: Accounting

NBA San Francisco Warriors played in San Francisco for nine seasons before relocating to Oakland, CA...

NBA San Francisco Warriors played in San Francisco for nine seasons before relocating to Oakland, CA in 1971 and renaming themselves the Golden State Warriors. Their new home was the Oakland Alameda County Arena, a $24 million, 13,000-seat facility built in 1966. In 1997, a $121 million renovation expanded the facility to 20,000 seats and in 2007 it was renamed Oracle Arena. The Warriors won three NBA Championships in 1975, 2015, and 2017 in that facility. Despite playing in the oldest arena in the NBA, the Warriors’ success on the court led to a season ticket waiting list with about 40,000 fans.
Oracle Arena is owned by the joint city-county governmental agency called the Oakland Alameda County Coliseum Authority (OACCA). The city and county taxpayers covered the original arena construction cost and in 1996 issued $140 million in construction bonds for the renovation. That year the Warriors signed a 20-year lease that included paying $1.5 million for rent as well as the first $7.4 million of their premium seating revenue to the OACCA. The OACCA retained 5% of each ticket sold, a portion of the naming rights, parking revenue, and concession revenue. The OACCA share of annual ticket revenue tripled to $6.5 million in the period between 2011 and 2016 as the Warriors’ popularity grew. The OACCA also covered costs including maintenance and operation of the arena, some game day production and marketing expenses, and about $22 million for the principal and interest on the loan. In 2016, the OACCA required contributions of $11 million from both the city and county to balance their budget.
In 2012, the Warriors announced their intentions to leave Oracle Arena and build a new facility on the waterfront in San Francisco. After years of opposition and ballooning costs, the team altered their plans and in April 2014 paid a reported $250 million to purchase a different plot of land south of the San Francisco Giant’s AT&T Park. After several years of lawsuits from a local hospital concerned with arena crowds reducing patient and ambulance access, ground breaking took place in January 2017. The 11-acre development built and owned by the Warriors encompasses the 18,000 seat Chase Center arena, 100,000 square feet of retail space, and 580,000 square feet of office space. Half of the office space has already been rented out by ride-sharing firm Uber and JPMorgan Chase paid $300 million over 20 years for the naming rights.
Despite excitement about the new arena, the Warriors are responsible for the $1 billion cost. Arenas need to book events 200 or more days a year to break even. When the Chase Center opens in 2019, it will compete to fill those 200 dates with other local arenas including the newly abandoned Oracle Arena in Oakland, the 80-year-old Cow Palace south of San Francisco, and the SAP Center 45 miles away in San Jose. Notably, there are no other large, modern arenas within San Francisco leading some to suggest the Chase Center will have the upper hand in booking events. As evidence of the Warriors hopes for high profit potential, two years before opening they announced suites will range from $525,000 to $2.5 million in the Chase Center while they cost only $200,000 to $300,000 at Oracle Arena.
Back in Oakland, Oracle Arena will see their average of 110 annual events decrease by about 50 because of the loss of the Warriors. In addition, there will still be approximately $55 million remaining to be paid on the bonds they issued in 1996.
Please answer the following questions for discussion
1. From a finance perspective, why did the Warriors allocate $1 billion to build a new arena?
2. What new revenue streams might the Warriors generate that could cover the cost of the new arena?
3. What specific risks do the Warriors face in taking on the full cost of the project?
4. If the Warriors used bonds to finance a portion of their costs, what criteria would lenders use to evaluate their ability to repay the loan?









In: Finance

Fundamentals of cost and management accounting Classwork on breakeven analysis Question 1 GPZ sells cupcakes for...


Fundamentals of cost and management accounting

Classwork on breakeven analysis

Question 1

GPZ sells cupcakes for $2. Material per unit costs $0.10. Variable labour cost is $0.25. Variable other manufacturing costs is $0.35. Monthly fixed costs are $12,000.

Required

  1. Calculate the breakeven point.
  2. Calculate the volume required to earn $30,000.
  3. How does your analysis change if you learn that the cupcakes are sold through agents who charge a commission of $1 per each 100 cupcakes sold?

Question 2

A road construction company generates on average $500,000 of revenue for each kilometre of road built. The variable costs per kilometre built are made up of fuel ($10,000), direct labour ($40,000), vehicle maintenance ($20,000), other variable vehicle costs ($55,000), and materials ($225,000). The monthly fixed costs of the company are $1.5 million.

Required

1) Calculate the breakeven point in kilometres of road built per month.

2) Calculate the breakeven point in dollar revenue per month.

3) Calculate the contribution margin percentage.

Question 3

APP operates a beauty salon. Average revenue per customer is $200. Monthly fixed costs are $45,000. Variable costs in last month were in total $78,000. During that month APP had 1,000 customers.

Required

  1. Calculate the breakeven point.
  2. Calculate the contribution margin ratio.
  3. What was the profit last month?

Question 4

Aisha operates a children’s nursery. Her monthly fixed costs are AED60,000. Her revenue per month per child is AED1,600. Variable costs per month are AED200 per child.

Required

  1. Calculate the breakeven point in units
  2. How many children need to attend the nursery if she wants to make a monthly profit of AED20,000?
  3. How many children need to attend the nursery if she wants to make a monthly profit of AED20,000 and she is liable to 50% income tax?
  4. How many children need to attend the nursery if she wants to make a monthly profit of AED20,000 and she is liable to 30% income tax?



In: Accounting

how to create a function to compute PACF of a time series in MATLAB without using...

how to create a function to compute PACF of a time series in MATLAB without using built-in function ''parcorr''?

In: Computer Science

How do I prepare a budget for a new plant being built compared to the existing...

How do I prepare a budget for a new plant being built compared to the existing plant data

In: Accounting

What is the similarity of electromagnetic processes in the near zone of elementary sources and in...

What is the similarity of electromagnetic processes in the near zone of elementary sources and in the oscillatory circuit?

In: Physics

Discuss the pros and cons of keeping the federal funds rate near zero percent.

Discuss the pros and cons of keeping the federal funds rate near zero percent.

In: Economics

Why can the Drude equation not be applied in the range of wavelengths near maximum absorbance?

Why can the Drude equation not be applied in the range of wavelengths near maximum absorbance?

In: Chemistry

A 60-year-old man, who has normal vision, has a near point of 93 cm. Instead of...

A 60-year-old man, who has normal vision, has a near point of 93 cm. Instead of using reading glasses, he chooses to use a magnifier of focal length 15 cm for reading. He reads with his eyes relaxed.
(a) Find the magnification M.
(b) What is the distance from the page to the magnifier?
(c) What is the maximum angular magnification that can be obtained with this magnifier by a child with a near point of 14 cm?

In: Physics

In this week's lecture #3, Walter Lewin lit a fluorescent bulb by holding it near a...

In this week's lecture #3, Walter Lewin lit a fluorescent bulb by holding it near a Van de Graaff generator, charged to 300,000 V. Suppose that the spherical conductor of the Van de Graaff has a diameter of 68.69 cm, that the bulb is 100.56 cm in length, and Prof. Lewin is holding the near end of the bulb 32.23 cm from the surface of the Van der Graaff. What is the potential difference (V) between the two ends of the bulb?

In: Physics