In: Accounting
1Companies make a month-end adjustment for expected returns by decreasing Sales Revenue and decreasing Cost of Goods Sold.
Mitchell uses a perpetual inventory system. Mitchell sells a computer from inventory for $1,198 on credit. Mitchell originally bought the computer from IBM for $790. What journal entry (entries) will Mitchell prepare to record the sale? Multiple Choice Debit Cash and credit Sales Revenue for $1,198; debit Cost of Goods Sold and credit Inventory for $790. Debit Accounts Receivable for $1,198, credit Inventory for $790, and credit Gross Profit for $408. Debit Accounts Receivable and credit Sales Revenue for $1,198; debit Cost of Goods Sold and credit Inventory for $790. Debit Inventory for $790, debit Cost of Goods Sold for $408, and credit Accounts Receivable for $1,198.
3 Neakanie Industries sells specialized mountain bikes. Each specialized bike purchased includes free maintenance service for 12 months. The price of the specialized bike is $1,000. When sold separately, a maintenance contract is $200 and a comparable but non-specialized bike is $600. What amount of revenue will Neakanie recognize at the date of sale for each bike?
In: Accounting
Gentry Inc. is a mid-sized tech firm (200 employees and $300 million in revenue) and has been privately held since the firm’s inception ten years ago. The organization’s board of directors is keen on expanding the operations globally to take advantage of a growing market. Based on reports from the research and development team, the organization can increase its profitability metrics by 15 to 25% if it expands the operations to China, Japan, and Germany. Becoming a multinational organization will not be easy. To finance this expansion, the board of directors has decided to take the organization public and issue some bonds to raise an additional $50 million. The research team has already determined that the organization meets the financial requirements outlined by the Securities Exchange Commission. The goal is to maximize the Initial Public Offering (IPO), and the leadership must efficiently manage the capital, measure the risk of the investments, and ensure the financial metrics are robust relative to similarly sized organizations.
You are acting as an outside consultant to Gentry Inc. and have been hired to help the company with the IPO on the primary market so that it can expand internationally. Be sure to review the Course Project Introduction before you start this project.
Create an outline with all of the items that need to be addressed for you to complete the client engagement. The final page of your outline should be an APA References page.
Include your initial plans for:
growth strategies
capital structure
risk identification, which is all covered in subsequent weeks of the projects
Use a numerical outline with subcategories to complete this assignment. See example below:
Expanding XYZ Inc
History
Background
Locations
Customers
Growth Strategies
Etc.
In: Finance
In the context diagram for an order entry/sales (OE/S) system that includes the revenue cycle processes up through the shipment of goods (but does not include billing the customer), which of the following items is least likely to be an external entity?
the general ledger system
the purchases/accounts payable/cash disbursements (P/AP/CD) system
the carrier
the inventory system
the billing/accounts receivable/cash receipts (B/AR/CR) system
In: Accounting
| Income Statement | |||
| For the Year Ended December 31, 2014 | |||
| Revenue: | |||
| Sales | $ 792,845 | ||
| Cost of Goods Sold | $ 275,000 | ||
| Gross Profit | $ 517,845 | ||
| Operating Expenses: | |||
| Depreciation Expense | $ 35,159 | ||
| Insurance Expense | $ 82,000 | ||
| Office Expense | $ 21,700 | ||
| Advertising Expense | $ 8,400 | ||
| Utilities Expense | $ 31,000 | ||
| Wage Expense | $ 80,350 | ||
| Bad Debt Expense | $ 25,000 | ||
| Pension Expense | $ 40,000 | ||
| Income from Operations: | $ 194,236 | ||
| Other Revenue: | |||
| Rent Revenue | $ 12,000 | ||
| Interest Revenue | $ 19,561 | ||
| Other Expenses: | |||
| Unrealized Holding G/L | $ (8,000) | ||
| Loss on Impairment | $ (10,000) | ||
| Interest Expense | $ (47,593) | ||
| Total Expenses: | $ (65,593) | ||
| Net Income Before Income Taxes | $ 160,204 | ||
| Income Tax Expense | $ 64,081 | ||
| Net Income | $ 96,122 | ||
| Statement of Retained Earnings | ||
| For the Year Ended December 31, 2014 | ||
| Retained earnings, Beginning | $ - | |
| Add: Net Income | $ 96,122 | |
| Subtract: Dividends | $ (41,000) | |
| Retained earnings, Ending |
$ 55,122 |
|
| Balance Sheet | |||
| For the Year Ended December 31, 2014 | |||
| Assets | |||
| Current Assets: | |||
| Cash | $ 648,729 | ||
| Accounts receivable | $ 190,300 | ||
| Prepaid insurance | $ 17,400 | ||
| Inventory | $ 75,000 | ||
| Short-Term investments | $ 167,000 | ||
| Fair Value Adjustment | $ (8,000) | ||
| Allowance for doubtful accounts | $ (25,000) | ||
| Total Current Assets | $ 1,065,429 | ||
| Long-Term Assets | |||
| Patent | $ 27,500 | ||
| Land | $ 75,000 | ||
| Building | $ 150,000 | ||
| Accumulated depreciation: building | $ (5,400) | ||
| Equipment | $ 50,000 | ||
| Accumulated depreciation: equipment | $ (22,000) | ||
| Leased Vehicle | $ 43,796 | ||
| Accumulated Deprection- Vehicle | $ (8,759) | ||
| Pension Asset/Liability | $ 17,000 | ||
| LT (Debt) investments (HTM | $ 181,385 | ||
| Total Long-Term Assets | $ 508,522 | ||
| Total Assets: | $ 1,573,951 | ||
| Liabilities | |||
| Current Liabilities | |||
| Accounts payable | $ 65,340 | ||
| Wages Payable | $ 12,750 | ||
| Income taxes payable | $ 64,081 | ||
| Interest Payable | $ 52,504 | ||
| Notes payable | $ 235,000 | ||
| Deferred Compensation | $ (10,000) | ||
| Unearned rent revenue | $ 24,000 | ||
| Total Current: | $ 443,676 | ||
| Long-Term Liabilities: | |||
| Leased Liability | $ 33,293 | ||
| Bonds Payable | $ 800,000 | ||
| Premium on Bonds Payable | $ 56,860 | ||
| Total Long-Term Liabilities | $ 890,153 | ||
| Total Liabilities: | $ 1,333,828 | ||
| Capital | |||
| Common Stock | $ 109,000 | ||
| Additional Paid in caiptal | $ 21,000 | ||
| PIC In Excess of Par-Common Stock | $ 35,000 | ||
| Retained earnings | $ 55,122 | ||
| Treasury stock | $ - | ||
| Accumulated other comprehensive income: | |||
| Pension gain/loss OCI | $ 20,000 | ||
| Total Capital: | $ 240,122 | ||
| Total Liabilities and Capital |
$ 1,573,951 |
||
Please make Post Closing Trial Balance Statement
In: Accounting
In: Accounting
In: Accounting
The following transactions relate to Newport City’s special revenue fund. In 2020, Newport City created a special revenue fund to help fund the 911 emergency call center. The center is to be funded through a legally restricted tax on cellular phones. No budget is recorded. During the first year of operations, revenues from the newly imposed tax totaled $489,000. Of this amount, $444,000 has been received in cash and the remainder will be received within 60 days of the end of the fiscal year. Expenditures (salaries) incurred through the operation of the 911 emergency call center totaled $449,000. Of this amount, $422,000 was paid before year-end. During the year the state government awarded Newport City a grant to reimburse the City’s costs (not to exceed $150,000) for the purpose of training new 911 operators. During the year, the City paid $146,500 (not reflected in the expenditures above) to train new operators for the 911 emergency call center and billed the state government. $138,000 of the amount billed to the State had been received by year-end. Required: a. Prepare the journal entries for the above transactions. It is not necessary to use control accounts and subsidiary ledgers. Prepare closing entries for year-end. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the special revenue fund. c. Prepare a Balance Sheet assuming there are no committed or assigned net resources.
In: Accounting
The following projections relate to two recently merged
firms:
Revenue = $7,280,000
Cost of Goods Sold (without operating synergy) = 88% of
revenue
Cost of Goods Sold (with operating synergy) = 85% of revenue
Depreciation Expense (not included in the Cost of Goods Sold) =
$380,000
Tax Rate = 40%
Change in Working Capital = $26,000
Capital Spending = $220,000
Cost of Capital = 12.50%
Expected perpetual growth rate = 4.50%
After achieving operating synergy, the combined firms can reduce
the cost of capital to 12.00% by adding long-term debt. What will
be the value of the financial synergy created by moving to this
improved capital structure?
Select one:
A. $467,667
B. $548,996
C. $654,879
D. None of the above
In: Finance
A company has the following results for the year ending December 31, 2020
| Sales Revenue | $4,995,000 |
| Cost of Goods Sold | $1,785,000 |
| Salaries and Wages Expense | $602,000 |
| Sales Commissions | $575,000 |
| Sales Discounts | $490,000 |
| Other Administrative Expenses | $307,000 |
| Depreciation of Equipment | $189,000 |
| Rent Revenue | $120,000 |
| Advertising Expense | $85,000 |
| Interest Expense | $55,000 |
| Dividend Revenue | $30,000 |
| Loss of Sale of Investments | $7,000 |
On September 1, 2020, the company decided to eliminate a division. During 2020, losses relating to the eliminated division total $253,000. The above results in the table do not include this amount.
The company's income tax rate is 40%. All given amounts are pre-tax figures.
What is the company's net income or loss from 2020?
In: Accounting