Questions
Inventory Costing Methods Morrison Inc. reported the following information for the month of October: Inventory, October...

Inventory Costing Methods

Morrison Inc. reported the following information for the month of October:

Inventory, October 1 58 units @ $22
Purchase:
October 7 57 units @ $23
October 18 58 units @ $24
October 27 46 units @ $25

During October, Morrison sold 138 units. The company uses a periodic inventory system.

Required:

What is the value of ending inventory and cost of goods sold for October under the following assumptions.

ASSUMPTIONS:

1. Of the 138 units sold, 49 cost $22, 40 cost $23, 44 cost $24, and 5 cost $25.
2. FIFO
3. LIFO
4. Weighted average method (Round average unit cost to the nearest cent,
and round all other calculations and your final answers to the nearest dollar.)

Answer with $

1. Cost of Goods Sold=

Ending Inventory=

2. Cost of Goods Sold=

Ending Inventory=

3. Cost of Goods Sold=

Ending Inventory=

4. Cost of Goods Sold=

Ending Inventory=

In: Accounting

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 in...

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts.  

Cash $ 7,950 Cash dividends $ 3,070
Accounts receivable 17,500 Consulting revenue 17,500
Office supplies 4,200 Rent expense 4,530
Land 46,010 Salaries expense 8,090
Office equipment 19,060 Telephone expense 880
Accounts payable 9,430 Miscellaneous expenses 690
Common Stock 85,050

Also assume the following:

  1. The owner’s initial investment consists of $39,040 cash and $46,010 in land in exchange for its common stock..
  2. The company’s $19,060 equipment purchase is paid in cash.
  3. The accounts payable balance of $9,430 consists of the $4,200 office supplies purchase and $5,230 in employee salaries yet to be paid.
  4. The company’s rent, telephone, and miscellaneous expenses are paid in cash.
  5. No cash has been collected on the $17,500 consulting fees earned.


Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)

In: Accounting

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in...

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts.

Cash $ 11,360 Cash dividends $ 2,000

Accounts receivable 14,000 Consulting revenue 14,000

Office supplies 3,250 Rent expense 3,550

Land 46,000 Salaries expense 7,000

Office equipment 18,000 Telephone expense 760

Accounts payable 8,500 Miscellaneous expenses 580

Common Stock 84,000

Using the above information prepare an October 31 balance sheet for Ernst Consulting.

In: Accounting

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,220 in...

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,220 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts.  

Cash $ 13,840 Cash dividends $ 1,280
Accounts receivable 12,000 Consulting revenue 12,000
Office supplies 2,530 Rent expense 2,770
Land 45,840 Salaries expense 6,120
Office equipment 17,200 Telephone expense 820
Accounts payable 7,810 Miscellaneous expenses 630
Common Stock 83,220

Also assume the following:

  1. The owner’s initial investment consists of $37,380 cash and $45,840 in land in exchange for its common stock..
  2. The company’s $17,200 equipment purchase is paid in cash.
  3. The accounts payable balance of $7,810 consists of the $2,530 office supplies purchase and $5,280 in employee salaries yet to be paid.
  4. The company’s rent, telephone, and miscellaneous expenses are paid in cash.
  5. No cash has been collected on the $12,000 consulting fees earned.


Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)

In: Accounting

A student researcher compares the heights of American students and non-American students from the student body...

A student researcher compares the heights of American students and non-American students from the student body of a certain college in order to estimate the difference in their mean heights. A random sample of 18 American students had a mean height of 69.9inches with a standard deviation of 2.79inches. A random sample of 12 non-American students had a mean height of 63.8 inches with a standard deviation of 2.31 inches. Determine the 98% confidence interval for the true mean difference between the mean height of the American students and the mean height of the non-American students. Assume that the population variances are equal and that the two populations are normally distributed.

Step 1 of 3 :  

Find the point estimate that should be used in constructing the confidence interval.

In: Statistics and Probability

A student researcher compares the heights of American students and non-american students from the student body...

A student researcher compares the heights of American students and non-american students from the student body of a certain college in order to estimate the difference in their mean heights. A random sample of 18 American students had a mean height of 70 inches with a standard deviation of 3.03 inches. A random
sample of 12 non-american students had a mean height of 66.1 inches with a standard deviation of 2.35 inches. Determine the 99% confidence interval for the true mean difference between the mean height of the American students and the mean height of the non-american students. Assume that the population variances are equal and that the two populations are normally distributed. Find the margin of error to be used in constructing the confidence interval.

In: Statistics and Probability

Examine political cartoons published in the early nineteenth century. How accurately did these cartoons reflect society...

Examine political cartoons published in the early nineteenth century. How accurately did these cartoons reflect society in the early 1800s?

In: Economics

Dogo is planning to open a retail shop on 1/5/2019. He would put in $25,000 cash...

Dogo is planning to open a retail shop on 1/5/2019. He would put in $25,000 cash as capital. He also has the following plans:

i) On 1/5/2019, to buy and pay for premises costing $20,000, furniture and fittings = $3,000 and motor vehicle = $1,000.

ii) To employ 2 assistants each to get a salary of $130 per month, to be paid at the end of each month (ignore PAYE tax and national insurance contribution).

iii) To buy the following goods (in units):

May

June

July

August

September

October

Units

200

220

280

350

400

330

iv) To sell the following number of units:

May

June

July

August

September

October

Units

120

180

240

300

390

420

v) Units will be sold for $10 each. One-third of the sales are for cash and the rest are on credit. These later customers are expected to pay their account in the second month following the month of sales.

vi) The units will cost $6 each from May to August inclusive and $7 each thereafter. Creditors will be paid in the month following purchases (value the inventories on FIFO basis).

vii) Other expenses = $150 per month payable in the month following the month they were incurred.

viii) Part of the premises will be sublet as an office at a rent of $600 per annum. This is paid in equal installment in July, October, January and April.

ix) Dogo’s cash drawing will amount to $250 per month.

x) Depreciation is to be provided on shop fixtures at 10% per annum and 20% per annum on motor vehicles.

Required:

a) Prepare a cash budget for the six (6) months ended 31/10/2019 showing the balances of cash at the end of each month. [15 marks]

b) Your newly appointed Managing Director is preparing to deliver a paper on the need to keep budgets clean and use it as a model of change in the organisation. As the Management Accountant of your organisation, briefly explain to him FIVE ways of making budgeting very effective. [10 MARKS]

In: Accounting

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows.

No. Account Title Debit Credit
101 Cash $ 38,264
106 Accounts receivable 12,618
126 Computer supplies 2,545
128 Prepaid insurance 2,220
131 Prepaid rent 3,300
163 Office equipment 8,000
164 Accumulated depreciation—Office equipment $ 0
167 Computer equipment 20,000
168 Accumulated depreciation—Computer equipment 0
201 Accounts payable 0
210 Wages payable 0
236 Unearned computer services revenue 0
301 S. Rey, Capital 73,000
302 S. Rey, Withdrawals 5,600
403 Computer services revenue 25,659
612 Depreciation expense—Office equipment 0
613 Depreciation expense—Computer equipment 0
623 Wages expense 2,625
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 1,728
676 Mileage expense 704
677 Miscellaneous expenses 250
684 Repairs expense—Computer 805
Totals $ 98,659 $ 98,659


Business Solutions had the following transactions and events in December 2019.

Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
3 Paid $500 cash for minor repairs to the company’s computer.
4 Received $3,950 cash from Alex’s Engineering Co. for the receivable from November.
10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day.
14 Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,000 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Business Solutions.
15 Purchased $1,100 of computer supplies on credit from Harris Office Products.
16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
20 Completed a project for Liu Corporation and received $5,625 cash.
22–26 Took the week off for the holidays.
28 Received $3,000 cash from Gomez Co. on its receivable.
29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile).
31 S. Rey withdrew $1,500 cash from the company for personal use.


The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months.

  1. The December 31 inventory count of computer supplies shows $580 still available.
  2. Three months have expired since the 12-month insurance premium was paid in advance.
  3. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
  4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
  5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
  6. Three of the four months' prepaid rent have expired.


Required:
1. Prepare journal entries to record each of the December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a through f.
2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.
3. Prepare an adjusted trial balance as of December 31, 2019.
4. Prepare an income statement for the three months ended December 31, 2019.
5. Prepare a statement of owner’s equity for the three months ended December 31, 2019.
6. Prepare a balance sheet as of December 31, 2019.

In: Accounting

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows.

No. Account Title Debit Credit
101 Cash $ 38,464
106 Accounts receivable 13,218
126 Computer supplies 2,645
128 Prepaid insurance 1,860
131 Prepaid rent 3,280
163 Office equipment 8,800
164 Accumulated depreciation—Office equipment $ 0
167 Computer equipment 23,600
168 Accumulated depreciation—Computer equipment 0
201 Accounts payable 0
210 Wages payable 0
236 Unearned computer services revenue 0
301 S. Rey, Capital 67,000
302 S. Rey, Withdrawals 6,100
403 Computer services revenue 36,849
612 Depreciation expense—Office equipment 0
613 Depreciation expense—Computer equipment 0
623 Wages expense 2,575
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 1,648
676 Mileage expense 694
677 Miscellaneous expenses 250
684 Repairs expense—Computer 715
Totals $ 103,849 $ 103,849

Business Solutions had the following transactions and events in December 2017.   

Dec. 2 Paid $935 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
3 Paid $440 cash for minor repairs to the company’s computer.
4 Received $4,850 cash from Alex’s Engineering Co. for the receivable from November.
10 Paid cash to Lyn Addie for six days of work at the rate of $105 per day.
14 Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,300 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Business Solutions.
15 Purchased $1,400 of computer supplies on credit from Harris Office Products.
16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
20 Completed a project for Liu Corporation and received $6,575 cash.
22–26 Took the week off for the holidays.
28 Received $3,900 cash from Gomez Co. on its receivable.
29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.30 per mile).
31 S. Rey withdrew $1,100 cash from the company for personal use.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:

  1. The December 31 inventory count of computer supplies shows $650 still available.
  2. Three months have expired since the 12-month insurance premium was paid in advance.
  3. As of December 31, Lyn Addie has not been paid for four days of work at $105 per day.
  4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
  5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
  6. Three of the four months' prepaid rent has expired.


Required:
1. Prepare journal entries to record each of the December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a through f.
2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.
3. Prepare an adjusted trial balance as of December 31, 2017.
4. Prepare an income statement for the three months ended December 31, 2017.
5. Prepare a statement of owner’s equity for the three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31, 2017.

In: Accounting