individual who earned an MBA from a US university and founded a company in Finland questions

Questions

M. Anthony, LLP, produces music in a studio in London. The cost of producing one typical...

M. Anthony, LLP, produces music in a studio in London. The cost of producing one typical song follows. Average Cost per Song: Labor, including musicians and technicians $ 17,200 Variable overhead, including clerical support 3,200 Fixed overhead 21,200 Marketing and administrative costs (all fixed) 28,080 Total cost per song $ 69,680 The fixed costs allocated to each song are based on the assumption that the studio produces 60 songs per month. Required: Treat each question independently. Unless stated otherwise, M. Anthony charges $82,000 per song produced. a. How many songs must the firm produce per month to break even? b. Market research estimates that a price increase to $92,000 per song would decrease monthly volume to 52 songs. The accounting department estimates that fixed costs would remain unchanged in total, and variable costs per song would remain unchanged if the volume were to drop to 52 songs per month. How would a price increase affect profits? c. Assume that M. Anthony's studio is operating at its normal volume of 60 songs per month. It has received a special request from a university to produce 30 songs that will make up a two-CD set. M. Anthony must produce the music next month or the university will take its business elsewhere. M. Anthony would have to give up normal production of 10 songs because it has the capacity to produce only 80 songs per month. Because of the need to produce songs on a timely basis, M. Anthony could not make up the production of those songs in another month. Because the university would provide its own musicians, the total variable cost (labor plus overhead) would be cut to $15,200 per song on the special order for the university. The university wants a discounted price; it is prepared to pay only $42,000 per song and believes a fee reduction is in order. Total fixed costs will be the same whether or not M. Anthony accepts the special order. Should M. Anthony accept the special order? d. Refer to the situation presented in requirement (c). Instead of offering to pay $42,000 per song, suppose the university comes to M. Anthony with the following proposition. The university official says, "We want you to produce these 30 songs for us. We do not want you to be worse off financially because you have produced these songs. On the other hand, we want the lowest price we can get." What is the lowest price that M. Anthony could charge and be no worse off for taking this order?

In: Accounting

Soul Ltd is an Australian company that makes and sells small electronic goods and its financial...

Soul Ltd is an Australian company that makes and sells small electronic goods and its financial year ends on 30 June. On 1 February 2018, a customer from the United States ordered some goods from Soul Ltd at an invoice cost of US$400,000 on terms FOB destination. On 30 April 2018, the goods were delivered to the customer. The agreed payment arrangements are that 30% of the total amount owing would be paid on delivery, 20% three months after delivery, and the remaining 50% four months after delivery. The end of the reporting period for Soul Ltd is 30 June. The following exchange rates are applicable.

1 February 2018	A$1 = US$0.77
30 April 2018	A$1 = US$0.75
30 June 2018	A$1 = US$0.70
31 July 2018	A$1 = US$0.74
31 August 2018	A$1 = US$0.78

Required:

In accordance with AASB 121, prepare the relevant journal entries of Soul Ltd to account for the above transactions.

Question 3	Max. marks allocated
Journal entries	6

In: Accounting

Dec. 1 Issued to John and Patty Driver 27,000 shares of capital stock in exchange for...

Dec.	1	Issued to John and Patty Driver 27,000 shares of capital stock in exchange for a total of $270,000 cash.
Dec.	1	Purchased for $201,600 all of the equipment formerly owned by Rent-It. Paid $138,000 cash and issued a 1-year note payable for $63,600. The note, plus all 12 months of accrued interest, are due November 30, Year 2.
Dec.	1	Paid $9,300 to Shapiro Realty as three months’ advance rent on the rental yard and office formerly occupied by Rent-It.
Dec.	4	Purchased office supplies on account from Modern Office Co., $1,200. Payment due in 30 days. (These supplies are expected to last for several months; debit the Office Supplies asset account.)
Dec.	8	Received $8,500 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fees.)
Dec.	12	Paid salaries for the first two weeks in December, $4,900.
Dec.	15	Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,600, of which $12,100 was received in cash.
Dec.	17	Purchased on account from Earth Movers, Inc., $600 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days.
Dec.	23	Collected $2,200 of the accounts receivable recorded on December 15.
Dec.	26	Rented a backhoe to Mission Landscaping at a price of $250 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks.
Dec.	26	Paid biweekly salaries, $4,900.
Dec.	27	Paid the account payable to Earth Movers, Inc., $600.
Dec.	28	Declared a dividend of 10 cents per share, payable on January 15, Year 2.
Dec.	29	Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier Construction, as a co-defendant in a $24,000 lawsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by Collier Construction. After working hours on December 26, Davenport had climbed the fence to play on parked construction equipment. While playing on the backhoe, he fell and broke his arm. The extent of the company’s legal and financial responsibility for this accident, if any, cannot be determined at this time. (Note: This event does not require a journal entry at this time, but may require disclosure in notes accompanying the statements.)
Dec.	29	Purchased a 12-month public liability insurance policy for $9,120. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on January 1, Year 2, and affords no coverage for the injuries sustained by Kevin Davenport on December 26.
Dec.	31	Received a bill from Universal Utilities for the month of December, $680. Payment is due in 30 days.
Dec.	31	Equipment rental fees earned during the second half of December amounted to $20,600, of which $15,900 was received in cash.

Data for Adjusting Entries

The advance payment of rent on December 1 covered a period of three months.

The annual interest rate on the note payable to Rent-It is 6 percent.

The rental equipment is being depreciated by the straight-line method over a period of eight years.

Office supplies on hand at December 31 are estimated at $620.

During December, the company earned $4,600 of the rental fees paid in advance by McNamer Construction Company on December 8.

As of December 31, six days’ rent on the backhoe rented to Mission Landscaping on December 26 has been earned.

Salaries earned by employees since the last payroll date (December 26) amounted to $1,900 at month-end.

It is estimated that the company is subject to a combined federal and state income tax rate of 40 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in Year 2.

Please (Debit and Credit each individual date)

In: Accounting

B) Ashesi University is Ghana’s number one university in the 2020 Times Higher Education Impact Ranking....

B) Ashesi University is Ghana’s number one university in the 2020 Times Higher Education Impact Ranking. The university presently measures its performance by comparing its actual costs against its budgeted costs for the year. Given the university’s international status, it is currently facing stiff competition from both public and privately-owned universities in Ghana. At one of its executive meetings, a member in the finance department has suggested that Ashesi needs to consider additional performance measures such as those indicated by the Balanced Scorecard.

Required:

Briefly elaborate on your understanding of the Balanced Scorecard and how the management of Ashesi university can utilize this approach to performance measurement [10 marks]
Discuss two (2) non-financial indicators (from different perspectives of the balanced scorecard) that Ashesi University could use for its performance evaluation. [4 marks]

In: Accounting

Enter the transactions listed below in the General Journal. January 1, 2019 or 2020 – Use...

Enter the transactions listed below in the General Journal.
January 1, 2019 or 2020 – Use January 1 as the starting date for transactions. This will give us a one-month accounting period for reports, etc.
Date
1 Night invested cash in business, $90,000.
Debit: Checking increases.
Credit: Owner’s Equity increases.

1 Paid insurance premium for six-month camping season, $9,000. (Record the insurance payment as a pre-paid asset.)

Debit: Prepaid asset of insurance
Credit: Checking as cash was reduced

2 Paid rent for lodge and campgrounds for the month of April, $40,000. Vendor: Wilderness Properties

Debit: The expense of paying the rent.
Credit: Checking – the reduction of cash

2 Received registration information from Augsburg University for $15,000 for an ice fishing camp during the third week in January.

Debit: Accounts Receivable: No money received yet
Credit: Registration Fees – record revenue earned

3 Received registration information from Bemidji State University for $20,000 for an ice fishing camp during the fourth week in January. Prepare an invoice for this sale. They are sending four coaches on the trip. Make note on the invoice of the dates of the camp in the Message on Invoice section. Record in the General Journal and then prepare an invoice.

Debit: Accounts Receivable: No money received yet
Credit: Revenue is increased with a credit Registration Fees

3 Purchased 10 fishing boats on account for $60,000. The boats have estimated useful lives of five years, at which time they will be donated to a local day camp. Vendor: Mt. Dora Watercraft A loan agreement with terms was signed.

Debit: The asset Fishing Boats is increased
Credit: The Notes Payable is increased

4 Purchased food supplies from Acme Super Market on account, $7,000. You are increasing the asset Food supplies and increasing the Liability – Accounts Payable for Acme Super Market.

Debit: Food Supplies
Credit: Accounts Payable

5 Purchased office supplies from Gordon Office Supplies on account, $500. Same process as previous transaction.

Debit: Office Supplies
Credit: Accounts Payable

6 Received registration information from University of Minnesota for an ice fishing camp during the first week in February. Make note on the invoice of the dates of the camp in the Message on Invoice section. They are sending eight coaches on the trip. Record in the General Journal and then prepare an invoice.

Debit: Accounts Receivable: No money received yet
Credit: Registration Fees Revenue is increased with a credit

5 Purchased food supplies from Acme Super Market on account, $8,200.

Debit: Food Supplies
Credit: Accounts Payable

7 Received a check from Augsburg University for $15,000 for payment of the fishing trip the third week in January. You will record the payment of the accounts receivable and the deposit to checking from cashing the checks.

Debit: Checking – Cash was received
Credit: Accounts Receivable – Cash was received, and balance reduced

8 Received a check from Bemidji State University for $20,000 for an ice fishing camp during the fourth week in January.

Debit: Checking – Cash was received
Credit: Accounts Receivable – Cash was received, and balance reduced

9 Purchased food supplies from Acme Super Market on account, $9,000.

15 Paid wages to fishing guides, $10,000. This is the expense of paying employees’ wages. Wages Expense is increased and Checking (Cash) is decreased. Wages are paid on the 15th and last day of each month. The fishing guides are salaried employees.

Debit: The expense of paying Wages
Credit: Cash as the account was reduced to pay wages for the period.

21 Paid postage, $150.
24 Purchased food supplies from Acme Super Market on account, $8,500.
30 Purchased food supplies from Acme Super Market on account, $6,000.

30 Paid Acme Super Market on account, $32,700. You are making a payment to pay down the balance of this accounts payable liability that you owe.

Debit Accounts Payable: You are reducing this debt.
Credit: Checking as you are reducing the balance of the account.

30 Paid utilities bill, $2,000. Record the expense of paying for the utilities.

30 Paid phone bill, $1,200. Record the expense of paying the phone bill.

30 Bob Night withdrew cash for personal use, $6,000. You will increase the drawing account and decrease cash.

30 Paid wages to fishing guides, $10,000.

Office supplies remaining on hand, $100.

Food supplies remaining on hand, $8,000.

Insurance expired during the month of January, $1500

Depreciationon the fishing boats for the month of January, $1000

How do you record closing journal entries for all accounts for the end of the month?

In: Accounting

skip 5 last one unadjusted trial balance do rest thanks All Journals and General Ledger; Trial...

skip 5 last one unadjusted trial balance do rest thanks

All Journals and General Ledger; Trial Balance

The transactions completed by AM Express Company during March, the first month of the fiscal year, were as follows:

Mar. 1.		Issued Check No. 205 for March rent, $2,450.
2.		Purchased a vehicle on account from McIntyre Sales Co., $26,900.
3.		Purchased office equipment on account from Office Mate Inc., $1,570.
5.		Issued Invoice No. 91 to Ellis Co., $7,000.
6.		Received check for $7,950 from Chavez Co. in payment of invoice.
7.		Issued Invoice No. 92 to Trent Co., $9,840.
9.		Issued Check No. 206 for fuel expense, $820.
10.		Received check for $10,000 from Sajeev Co. in payment of invoice.
10.		Issued Check No. 207 to Office City in payment of $450 invoice.
10.		Issued Check No. 208 to Bastille Co. in payment of $1,890 invoice.
11.		Issued Invoice No. 93 to Jarvis Co., $7,200.
11.		Issued Check No. 209 to Porter Co. in payment of $415 invoice.
12.		Received check for $7,000 from Ellis Co. in payment of March 5 invoice.
13.		Issued Check No. 210 to McIntyre Sales Co. in payment of $26,900 invoice of March 2.
16.		Cash fees earned for March 1–16, $26,800.
16.		Issued Check No. 211 for purchase of a vehicle, $28,500.
17.		Issued Check No. 212 for miscellaneous administrative expense, $4,680.
18.		Purchased maintenance supplies on account from Bastille Co., $2,430.
18.		Received check for rent revenue on office space, $900.
19.		Purchased the following on account from Master Supply Co.: maintenance supplies, $2,640, and office supplies, $1,500.
20.		Issued Check No. 213 in payment of advertising expense, $8,590.
20.		Used maintenance supplies with a cost of $4,400 to repair vehicles.
21.		Purchased office supplies on account from Office City, $990.
24.		Issued Invoice No. 94 to Sajeev Co., $9,200.
25.		Received check for $14,000 from Chavez Co. in payment of invoice.
25.		Issued Invoice No. 95 to Trent Co., $6,300.
26.		Issued Check No. 214 to Office Mate Inc. in payment of $1,570 invoice of March 3.
27.		Issued Check No. 215 to J. Wu as a personal withdrawal, $4,000.
30.		Issued Check No. 216 in payment of driver salaries, $33,300.
31.		Issued Check No. 217 in payment of office salaries, $21,200.
31.		Issued Check No. 218 for office supplies, $600.
31.		Cash fees earned for March 17–31, $29,400.

Required:

1. The following accounts are setup in the general ledger as of March 1. Using the information below, enter the balances for each account.

11	Cash	$65,200	32	J. Wu, Drawing	-
12	Accounts Receivable	31,950	41	Fees Earned	-
14	Maintenance Supplies	7,240	42	Rent Revenue	-
15	Office Supplies	3,690	51	Driver Salaries Expense	-
16	Office Equipment	17,300	52	Maintenance Supplies Expense	-
17	Accum. Depr.—Office Equip.	4,250	53	Fuel Expense	-
18	Vehicles	62,400	61	Office Salaries Expense	-
19	Accum. Depr.—Vehicles	17,800	62	Rent Expense	-
21	Accounts Payable	2,755	63	Advertising Expense	-
31	J. Wu, Capital	162,975	64	Miscellaneous Administrative Exp.	-

2. Journalize the transactions for March using the required journal(s). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

2a. Journalize the transactions for March using the purchases journal (with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

If no entry is required, type "No entry required" and leave the amount boxes blank.