the cpompany has customers make a 20% deposit on items made. This deposit is credited to the Unearned Sales Account when received. Customers pay the remaining balance (80% of the selling price) once the product is done and delivered. On june 1, 2016, the Unearned Sales account had a credit balance of $180,000. During June and July 2016, total customer deposits made for products to be delivered in the future amounted to $400,000 and $480,000.
Questions: (please explain answers, not just give. thank you!!!)
What account would be debited when customer deposits are received?
What account would be credited when the customer deposits are received?
During june and july 2016, the company completed and delivered goods worth $800,000 and $1,200,000, for which customer deposits had been received. (Note: $800,000 and $1,200,000 is the total selling price including the 20% deposit) What is the total sales revenue recognized for june and july As of june 31, what is the balance of the Unearned Sales account?
As of july 30th, what is the balance of the Unearned Sales account? ( The best way to answer 5and6 is to construct a 3 column ledger )
In: Accounting
For each situation indicate when a company should recognize revenue:
| Situation | Recognition of Revenue | |
| a. | On June 2, 2017, a customer books travel on an airline, paying $500 for a round-trip ticket that departs July 15, 2017, and returns July 20, 2017. In addition, once the round-trip ticket is used, the airline credits the passenger's frequent-flier account for 500 miles. The airline determines that each frequent-flier point has a value of $0.01. | |
| b. | On May 1, 2017, a retailer enters into a contract with a construction company. The construction company will build a new warehouse for the retailer at a price of $2 million. The retailer will make four equal payments to the construction company over the 1-year construction period, starting on May 1, 2017, and then every 4 months. The retailer can cancel construction at any time and will own any construction to date; however, it must pay the construction company for work done up to the cancellation date. The building is completed on April 30, 2017. | |
| c. | Morning Donut agrees to supply donuts and coffee on a daily basis to a local business. The contract starts on January 1, 2017, and runs for 1 year. Morning Donut charges $400 per week for the donuts and coffee. | |
| d. | The Raleigh Knights sell four season tickets to a customer. The Knights play 10 regular season games, and the cost of one season ticket is $250. |
In: Accounting
1. Assume the company uses the perpetual FIFO cost flow assumption. What is the ending inventory balance and cost of goods sold? You must show your work.
Stratosphere Communications has the following inventory transactions in its first year.
2. Assume the company uses the periodic LIFO cost flow assumption. What is the ending inventory balance and cost of goods sold? You must show your work.
Stratosphere Communications has the following inventory transactions in its first year.
3. Assume the company uses the perpetual LIFO cost flow assumption. What is the ending inventory balance and cost of goods sold? You must show your work.
Stratosphere Communications has the following inventory transactions in its first year.
In: Accounting
From Dunkin Donuts to Just Dunkin! The famous American Donut’s brand is rebranding and closing stores across the world including Oman as its outlets have shut down for good. The demand for donuts in America is decreasing as customers preferring more healthy food with less sugar and fat.
The company’s brand CEO Mr. David Hoffmann said, “the rebranding comes as an effort to reshape the company’s strategic goals and focusing on drinks more than donuts.” While analyzing the company’s different products, the managers noticed that 60% of its revenue is coming from drinks like coffee while demand for donuts is declining.
The company redesigned its brand, and its stores making them look simpler. The company is also introducing new coffee experiences like nitro, cold brew, black...etc. The company will also introduce digital menu and drive through to fit the customers on the go lifestyle. The company will also reduce its employees as the new digital menus will eliminate the need of human employees, reducing the company’s costs.
Questions:
2. Explain, how the demographic environment is affecting the company? (250 words)
In: Operations Management
The comparative balance sheets for 2018 and 2017 and the
statement of income for 2018 are given below for Dux Company.
Additional information from Dux’s accounting records is provided
also.
DUX COMPANY
Comparative Balance Sheets
December 31, 2018 and 2017
($ in 000s)
2018 2017
Assets
Cash $ 47 $ 27
Accounts receivable 51 61
Less: Allowance for uncollectible accounts (3 ) (2 )
Dividends receivable 5 4
Inventory 69 57
Long-term investment 29 17
Land 96 50
Buildings and equipment 218 264
Less: Accumulated depreciation (32 ) (64 )
$ 480 $ 414
Liabilities
Accounts payable $ 20 $ 34
Salaries payable 5 8
Interest payable 7 6
Income tax payable 14 16
Notes payable 46 0
Bonds payable 109 77
Less: Discount on bonds (9 ) (17 )
Shareholders' Equity
Common stock 217 207
Paid-in capital—excess of par 28 27
Retained earnings 58 56
Less: Treasury stock (15 ) 0
$ 480 $ 414
DUX COMPANY
Income Statement
For Year Ended December 31, 2018
($ in 000s)
Revenues
Sales revenue $ 261
Dividend revenue 6 $ 267
Expenses
Cost of goods sold 127
Salaries expense 32
Depreciation expense 19
Bad debt expense 1
Interest expense 15
Loss on sale of building 3
Income tax expense 24 221
Net income $ 46
Additional information from the accounting records:
A building that originally cost $68,000, and which was
three-fourths depreciated, was sold for $14,000.
The common stock of Byrd Corporation was purchased for $12,000 as a
long-term investment.
Property was acquired by issuing a 15%, seven-year, $46,000 note
payable to the seller.
New equipment was purchased for $22,000 cash.
On January 1, 2018, bonds were sold at their $32,000 face
value.
On January 19, Dux issued a 4% stock dividend (1,000 shares). The
market price of the $10 par value common stock was $11 per share at
that time.
Cash dividends of $33,000 were paid to shareholders.
On November 30,000 shares of common stock were repurchased as
treasury stock at a cost of $15,000.
Required:
Prepare the statement of cash flows for Dux Company using the
indirect method. (Do not round intermediate calculations. Amounts
to be deducted should be indicated with a minus sign. Enter your
answers in thousands. (i.e., 10,000 should be entered as
10).))
In: Accounting
The comparative balance sheets for 2018 and 2017 and the
statement of income for 2018 are given below for Dux Company.
Additional information from Dux’s accounting records is provided
also.
| DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) |
||||||||
| 2018 | 2017 | |||||||
| Assets | ||||||||
| Cash | $ | 47 | $ | 27 | ||||
| Accounts receivable | 51 | 61 | ||||||
| Less: Allowance for uncollectible accounts | (3 | ) | (2 | ) | ||||
| Dividends receivable | 5 | 4 | ||||||
| Inventory | 69 | 57 | ||||||
| Long-term investment | 29 | 17 | ||||||
| Land | 96 | 50 | ||||||
| Buildings and equipment | 218 | 264 | ||||||
| Less: Accumulated depreciation | (32 | ) | (64 | ) | ||||
| $ | 480 | $ | 414 | |||||
| Liabilities | ||||||||
| Accounts payable | $ | 20 | $ | 34 | ||||
| Salaries payable | 5 | 8 | ||||||
| Interest payable | 7 | 6 | ||||||
| Income tax payable | 14 | 16 | ||||||
| Notes payable | 46 | 0 | ||||||
| Bonds payable | 109 | 77 | ||||||
| Less: Discount on bonds | (9 | ) | (17 | ) | ||||
| Shareholders' Equity | ||||||||
| Common stock | 217 | 207 | ||||||
| Paid-in capital—excess of par | 28 | 27 | ||||||
| Retained earnings | 58 | 56 | ||||||
| Less: Treasury stock | (15 | ) | 0 | |||||
| $ | 480 | $ | 414 | |||||
| DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s) |
||||||
| Revenues | ||||||
| Sales revenue | $ | 261 | ||||
| Dividend revenue | 6 | $ | 267 | |||
| Expenses | ||||||
| Cost of goods sold | 127 | |||||
| Salaries expense | 32 | |||||
| Depreciation expense | 19 | |||||
| Bad debt expense | 1 | |||||
| Interest expense | 15 | |||||
| Loss on sale of building | 3 | |||||
| Income tax expense | 24 | 221 | ||||
| Net income | $ | 46 | ||||
Additional information from the accounting records:
A building that originally cost $68,000, and which was three-fourths depreciated, was sold for $14,000.
The common stock of Byrd Corporation was purchased for $12,000 as a long-term investment.
Property was acquired by issuing a 15%, seven-year, $46,000 note payable to the seller.
New equipment was purchased for $22,000 cash.
On January 1, 2018, bonds were sold at their $32,000 face value.
On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $11 per share at that time.
Cash dividends of $33,000 were paid to shareholders.
On November 30,000 shares of common stock were repurchased as treasury stock at a cost of $15,000.
Required:
Prepare the statement of cash flows for Dux Company using the
indirect method. (Do not round intermediate
calculations. Amounts to be deducted should be indicated with a
minus sign. Enter your answers in thousands. (i.e., 10,000 should
be entered as 10).))
In: Accounting
Copier maintenance. The Tri-City Office Equipment Corporation sells an imported copier on a franchise basis and performs preventive maintenance and repair service on this copier. The data below have been collected from 45 recent calls on users to perform routine preventive maintenance service; for each call, X is the number of copiers serviced and Y is the total number of minutes spent by the service person. Assume that first-order regression model (1.1) is appropriate. (a) Obtain the estimated regression function. (b) Plot the estimated regression function and the data. How well does the estimated regression function fit the data? (c) Interpret b o in your estimated regression function. Does b o provide any relevant information here? Explain. (d) Obtain a point estimate of the mean service time when X = 5 copiers are serviced. Use R programming . The data set is 20 2 60 4 46 3 41 2 12 1 137 10 68 5 89 5 4 1 32 2 144 9 156 10 93 6 36 3 72 4 100 8 105 7 131 8 127 10 57 4 66 5 101 7 109 7 74 5 134 9 112 7 18 2 73 5 111 7 96 6 123 8 90 5 20 2 28 2 3 1 57 4 86 5 132 9 112 7 27 1 131 9 34 2 27 2 61 4 77 5
In: Math
In: Accounting
16. According to the SEC, which of the following compromises independence between an auditor and his client?
A. If the auditor also prepares the tax returns for his client
B. If the relationship between the auditor and the client places the accountant in the position of auditing his own work
C. If the auditor has been on the engagement for more than four years
D. If the client pays the audit fees
17. What is one common criticism of corporate governance programs?
A. Public recognition of whistleblowers deters some people from reporting instances of fraud.
B. Whistleblower policies do not incentivize or reward employees to report instances of fraud to management or the board.
C. Punishment inflicted on fraudsters is too harsh.
D. Monetary rewards are too generous.
18. What is the best way to mitigate the risk of fraud with regard to social media?
A. Implement a social media policy.
B. Restrict access to social media sites on company computers to all employees outside of the public relations department.
C. Limit the social media presence of your organization to reputable sites such as LinkedIn and Twitter.
D. Require all employees to adjust their Facebook privacy settings in a particular way.
19. Which of the following is characteristic of an official code of ethics?
A. An official code of ethics is not a requirement for publicly traded companies.
B. An official code of ethics can eliminate any possible confusion regarding a conflict of interest.
C. An official code of ethics is an effective substitute for moral principles, culture, and character.
D. An official code of ethics is not intended to govern behavior.
In: Accounting
Larissa has decided to expand the company’s operations. She has asked Dan to enlist an underwriter to help sell $50 million in new 20-year bonds to finance new construction. Dan has entered into discussions with Kim McKenzie, an underwriter from the firm of Crowe & Mallard, about which bond features East Coast Yachts should consider and also what coupon rate the issue will likely have. Although Dan is aware of bond features, he is uncertain as to the costs and benefits of some of them, so he isn’t clear on how each feature would affect the coupon rate of the bond issue.
1. You are Kim’s assistant, and she has asked you to prepare a memo to Dan describing the effect of each of the following bond features on the coupon rate of the bond. She would also like you to list any advantages or disadvantages of each feature.
The security of the bond, that is, whether or not the bond has collateral.
The seniority of the bond.
The presence of a sinking fund.
A call provision with specified call dates and call prices.
A deferred call accompanying the above call provision.
A make-whole call provision.
Any positive covenants. Also, discuss several possible positive covenants East Coast Yachts might consider.
Any negative covenants. Also, discuss several possible negative covenants East Coast Yachts might consider.
A conversion feature (note that East Coast Yachts is not a publicly traded company).
A floating rate coupon.
In: Finance