Prepare closing entries for Bagley Consulting Company. What is the net income for this accounting period? What is the balance of retained earnings after the closing? BAGLEY CONSULTING COMPANY Adjusted Trial Balance Account Title Debits Credits Cash $4,550 Accounts receivable 8,500 Prepaid insurance 1,750 Land 230,000 Buildings & Equipment 169,500 Accumulated depreciation—buildings & Equipment $79,350 Accounts payable 29,900 Salaries and wages payable 1,400 Deferred rent revenue 950 Common stock 250,000 Retained earnings 48,300 Sales revenue 86,500 Interest revenue 4,800 Rent revenue 5,050 Salaries and wages expense 36,400 Depreciation expense 11,550 Insurance expense 1,750 Utility expense 22,700 Maintenance expense 19,550 Totals $506,250 $506,250

• Assume you are working on budgeting for the room department of your hotel.
• Assume the hotel’s ‘Room Revenue (Sales)’ was $1,640,000 during 2016. Based on the lodging forecast report, you expect the ‘Room Revenue (Sales)’ to increase by 3.7% next year.
• Assume the ‘Guest Supplies’ expenses (variable costs) from the room department was $250,000 during 2016. For 2017, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2016.
• Assume the ‘Salaries’ expenses (fixed costs) from the room department was $280,000 during 2016. For 2017, this fixed cost will increase by 2% due to the expected increase in living expenses in this area.

1. What will be the budgeted ‘Room Revenue (Sales)’ for 2017?

2. What will be the budgeted ‘Guest Supplies’ expenses for 2017?

3. What will be the budgeted ‘Salaries’ expenses for 2017?

The total weekly revenue earned at Royal Ruby Retailers is given by

R(p) = −7/3p² + 98p

where p is the price (in dollars) RRR charges per ruby. Use this function to determine the following.

(a) Determine the weekly revenue, to the nearest dollar, when the price is set at $20/ruby.
$

(b) Determine the weekly revenue, to the nearest dollar, when the price is set at $200/ruby.
$

Interpret your result.

The range of the demand function cannot realistically include p = $200. The range of the demand function includes p = $200.     The domain of the demand function cannot realistically include p = $200. The domain of the demand function includes p = $200.

(c) Determine the price RRR should charge in order to obtain a weekly revenue of $1,029.

1. Which of the following are examples of adjusting entries?

i) An entry to record interest owing on a bank loan at the end of the period. The interest is not yet paid, and is previously unrecorded.
ii) A depreciation entry to reflect the use of long-lived equipment during the period.
iii) An entry to correct an error that was discovered in the trial balance, when a $100 debit was incorrectly posted to inventory rather than accounts receivable.

a. i & ii

b. i & iii

c. ii & iii

d. i, ii, & iii

2. A company sold merchandise for cash. What is the effect of this sale?

a. increase in Revenue, increase in COGS, decrease in Inventory

b. increase in Revenue, decrease in COGS, increase in Inventory

c. increase in Revenue, increase in COGS, increase in Inventory

d. increase in Revenue, decrease in COGS, decrease in Inventory

On January 1, 2017, Novak Company acquires $320,000 of Spiderman Products, Inc., 8% bonds at a price of $296,540. Interest is received on January 1 of each year, and the bonds mature on January 1, 2020. The investment will provide Novak Company a 11% yield. The bonds are classified as held-to-maturity.

Instructions

(a)  

Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method.

(b)  

Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method.

(c)  

Prepare the journal entry for the interest revenue and discount amortization under the straight-line method at December 31, 2018.

(d)  

Prepare the journal entry for the interest revenue and discount amortization under the effective-interest method at December 31, 2018.

Question No.1: Solve the following system of two linear equations with two variables x and y by “Equating the equations” method. ? = ?? − ?? ??? ? = −? + 5

Question No.2: Is this matrix ? = [ ? ? ? ? ] singular or non-singular?

Question No. 3: Solve the following operations with the help of “PEMDAS”. ? ? − (?? ÷ ?) × ? ÷ ? − ? × ? + ?? ÷ ?3

Question No.4: A car was purchased for 5400 RO and is sold for 4300 RO. What is the percentage loss?

Question No.5 The total revenue function is given as ?? = ?? ? + ?? + ? 1. Find the average revenue 2. Find the marginal revenue 3. Find the marginal revenue when x = 3

Question No.6 : Calculate the rate of interest required for an investment ????? R.O to earn ???? R.O interest over ? years.

Question No.7: A salesman discounts a watch marked at 125 RO by 15%. 1. How much is the discount? 2. How much will a customer pay for the watch?

Rotelco is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 100 million direct subscribers (accounts) that generated revenue of $31,100 million. Costs and expenses for the year were as follows:

Assume that 70% of the cost of revenue and 30% of the selling, general, and administrative expenses are variable to the number of direct subscribers (accounts).

a. What is Rotelco's break-even number of accounts, using the data and assumptions above? Round to the nearest whole number.
million accounts

b. How much revenue per account would be sufficient for Rotelco to break even if the number of accounts remained constant? Round to the nearest dollar.
$ million per account

1.

Sales revenue would appear on

Select one:

a. Income Statement

b. Statement of Retained Earnings

c. Balance Sheet Statement

d. Statement of Cash Flows

2.

The entry to record $1,500 credit sales would be:

Select one:

a. Cash                                  1,500
              Sales Revenue                                   1,500

b. Accounts Receivable            1,500
               Sales Revenue                                 1,500

c. Sales Revenue                     1,500
                Accounts Receivable                         1,500

d. Cash                                  1,500
                Accounts Receivable                          1,500

3.

The entry to record a payment of $900 accounts payable would be:

Select one:

a. Cash                                           900
                 Accounts Payable                              900

b. Dividends                                   900
                 Cash                                                 900

c. Accounts Payable                       900
                 Cash                                                 900

d. Accounts Payable                       900
                  Retained Earnings                           900

Suppose a company has fixed costs of $5,500 and variable costs per unit of  7/8x + 1,040 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 1,200 − 1/8 x dollars per unit.

(a)

Form the cost function and revenue function (in dollars).

C(x)

=

R(x)

=

Find the break-even points.

x =

50,110

(b)

Find the vertex of the revenue function.

(x, y) =

Identify the maximum revenue.

$

(c)

Form the profit function from the cost and revenue functions (in dollars).

P(x) =

Find the vertex of the profit function.

(x, y) =

Identify the maximum profit.

$

(d)

What price will maximize the profit? (Round your answer to the nearest cent.)