At June 30, 2017, the end of its most recent fiscal year, Blue Computer Consultants’ post-closing trial balance was as follows:

The company underwent a major expansion in July. New staff was hired and more financing was obtained. Blue conducted the following transactions during July 2017, and adjusts its accounts monthly.

Adjustment data:

The chart of accounts for Blue Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, Supplies Expense, and Utilities Expense.

Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.)

a) Find ABC’s average fixed costs, average variable costs, average total costs and marginal costs.

b) Since ABC is charging the customers at the price of $50, it seems that the company cannot make a profit. The owner decides to shut down operations. What are ABC’s profits/losses? Should the owner shut down operations? Explain.

c) Economic adviser suggested that it is better to produce unit of output, because marginal revenue equals marginal cost at the quantity. What are the ABC's profit /losses at the level of production? Was this the best decision? Explain.

Rundle Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of interest and depreciation. The direct operating costs for each condo follow.

Indirect operating expenses, which amounted to $46,590, are allocated to the condos in proportion to the amount of other direct operating costs incurred for each.

Required

1. Assuming that the amount of rent revenue from Condo 2 is $105,000, what amount of income did it earn? (Do not round intermediate calculations.

Atlantis Company sells computer components and plans on borrowing some money to expand. After reading a lot about earnings management, Andy, the owner of Atlantis, has decided he should try to accelerate some sales to improve his financial statement ratios. He has called his best customer and asked them to make their usual January purchases by December 31. Andy told the customers he would allow them, until the end of February, to pay for the purchases, just as if they had made their purchase in January.

1. Is Andy's action complying with GAAP? Why or why not? (i.e. what is the revenue recognition principle?)

2. What do you think are the ethical implications of Andy's action?

3. Which ratios will be improved by accelerating these sales?

Lu Technology Co. manufactures DVDs for computer software and entertainment companies. Lu uses job order costing. On June 2,Lu began production of 5,800 ​DVDs, Job​ 423, for Portrait Pictures for $1.20 sales price per DVD. Lu promised to deliver the DVDs to Portrait Pictures by June 5. Lu incurred the following direct​ costs:

Data table:

more info:

LuTechnology allocates manufacturing overhead to jobs based on the relation between estimated overhead of $550,000 and estimated direct labor costs of $440,000. Job 423 was completed and shipped on June 3.

Requirement 1. Prepare a job cost record for Job 423. Calculate the predetermined overhead allocation rate​ (round to two decimal​ places); then allocate manufacturing overhead to the job.

Begin by determining the total amount of direct materials and direct labor incurred on the job.​ Next, calculate the predetermined overhead allocation rate and apply manufacturing overhead to the job.​ Lastly, compute the total cost of Job 423 and the cost per DVD.

Requirement 2. Journalize in summary form the requisition of direct materials and the assignment of direct labor and the allocation of manufacturing overhead to Job 423. Wages are not yet paid. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

Start by journalizing the use of direct materials.

​Next, journalize the use of direct labor.

Now journalize the allocation of overhead to Job 423.

Requirement 3. Journalize completion of the job and the sale of the 5,800

DVDs on account. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

Begin by preparing the entry to show the completion of the job.

​Next, journalize the revenue portion of the sale of Job 423.

​Finally, journalize the cost of goods portion of the sale.

and,

Princeton Computer Company uses a job order costing system in which each batch manufactured is a different job. Princeton Computer Company assigns direct materials and direct labor to each job. The company assigns labor costs at $26 per hour. It allocates manufacturing overhead to jobs based on a predetermined overhead allocation​rate, computed as a percentage of direct labor costs. At the beginning of 2020​, the controller prepared the following​budget:

In November 2020​, PrincetonComputer Company worked on several jobs. Records for two jobs appear​ here:

Suppose that nominal GDP was $9750000.00 in 2005 in Montgomery County Maryland. In 2015, nominal GDP was $11500000.00 in Montgomery County Maryland. The price level rose 3.00% between 2005 and 2015, and population growth was 4.00%. Calculate the following figures for Montgomery County Maryland between 2005 and 2015.

a. nominal growth is:

b.economic growth is:

c.inflation is:

d.real GDP growth is:

e.per capita GDP growth is:

f. real per capita GDP growth is:

Write a business plan for a child home daycare provider business including:

1.      Executive Summary:

A.    The Grab - Lead with the most compelling statement of why you have a really big idea. This sets the tone for the rest of the executive summary

B.     Product/Service Offer - What specifically are you offering to whom?

C.     Market Opportunity - Provides a basic Industry Analysis - size, growth and dynamics— how many customers &/or companies

D.    Your Competitive Advantage - Understand what your real, sustainable competitive advantage is, and state clearly what it is.

E.     Revenue Model – Estimate what revenue (sales), in dollars, your business will generate for your 1st year of business and 2 nd year and 3rd year.

2.      Product or Service

Write 1-2 paragraphs that describe your what your company sells.

3.       Market analysis You are to clearly describe your target market for your product or service, that is, clearly describe who your customers are.

4.       Analysis of competition

– Top 2 companies in this Industry An analysis that in the writing demonstrates that you have a clear understanding of your competition.

5.       Promotional Campaign Plan

Provide a detailed plan for how you are going to promote the opening “day” for your business. State in this section the date when that “opening day” will be.

6.       Mission Statement

Use the information provided in CH 7 to write a mission statement for your business that is no longer than 2 sentences in length.

7.       Three-year goals for your business

State 2 specific and measurable goals for year 1; 2 specific and measurable goals for year 2; and 2 specific and measurable goals for year 3 that your business will focus on and accomplish.

Write a business plan for a child daycare provider business including:

Executive Summary:

The Grab - Lead with the most compelling statement of why you have a really big idea. This sets the tone for the rest of the executive summary

Product/Service Offer - What specifically are you offering to whom?

Market Opportunity - Provides a basic Industry Analysis - size, growth and dynamics— how many customers &/or companies

Your Competitive Advantage - Understand what your real, sustainable competitive advantage is, and state clearly what it is.

Revenue Model – Estimate what revenue (sales), in dollars, your business will generate for your 1st year of business and 2 nd year and 3rd year.

Product or Service

Write 1-2 paragraphs that describe your what your company sells.

Market analysis You are to clearly describe your target market for your product or service, that is, clearly describe who your customers are.

Analysis of competition

– Top 2 companies in this Industry An analysis that in the writing demonstrates that you have a clear understanding of your competition.

Promotional Campaign Plan

Provide a detailed plan for how you are going to promote the opening “day” for your business. State in this section the date when that “opening day” will be.

Mission Statement

Use the information provided in CH 7 to write a mission statement for your business that is no longer than 2 sentences in length.

Three-year goals for your business

State 2 specific and measurable goals for year 1; 2 specific and measurable goals for year 2; and 2 specific and measurable goals for year 3 that your business will focus on and accomplish.

Appendix

8.       Appendix

Mountain Distribution has decided to analyze the profitability of five new customers. The company has the following​ activities:

It buys bottled water at ​$12.20 per case and sells to retail customers at a list price of $14.50

per case. Data pertaining to the five customers​ are:

Requirement