The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December 31 is the company’s reporting year-end.

Information necessary to prepare the year-end adjusting entries appears below.

1. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciation method.
2. The office equipment is depreciated at 10 percent of original cost per year.
3. Prepaid insurance expired during the year, $1,450.
4. Accrued salaries at year-end, $1,150.
5. Deferred rent revenue at year-end should be $700.

Required:
1. From the trial balance and information given, prepare adjusting entries.
2. Post the beginning balances and adjusting entries into the appropriate T-accounts.
3. Prepare an adjusted trial balance.
4. Prepare closing entries.
5. Prepare a post-closing trial balance.

1. Felicia Álvarez, a bakery manager, faces the total product curve shown, which gives the relationship between the number of workers she hires each day and the number of loaves of bread she produces, assuming all other factors of production are given.

Assume that bakery workers in the area receive a wage of $100 per day and that the price of bread is $1.00 per loaf.

1. Fill in the columns above for Marginal Product and Marginal Revenue Product. (one should have dollar signs and one does not!)
2. Plot the bakery’s marginal revenue product curve on a graph.
3. Plot the bakery’s marginal factor cost curve on the same graph (see examples of what the graph should look like in section 14.1).

4. How many workers will Ms. Álvarez employ per day? 4
5. Suppose that the price of bread falls to $.75 per loaf. How will this affect the marginal revenue product curve for workers at the firm? Plot the new curve, label it MRP₂.

6. How will the shift in MRP affect the number of workers Ms. Álvarez hires?

7. Suppose the price of bread rises to $1.50 per loaf. How will this affect the marginal revenue product curve for workers? Plot the new curve, label it MRP₃.

8. How will the shift in MRP affect the number of workers that Ms. Álvarez hires?

The business manager of a 90 unit apartment building is trying to determine the rent to be charged. From past experience with similar buildings, when rent is set at $400, all the units are full. For every $20 increase in rent, one additional unit remains vacant. What rent should be charged for maximum total revenue? What is that maximum total revenue?

To help solve the above scenario, perform an internet search for Profit Parabola or Applications of Quadratic Functions. List the URL of one of the applications that you find.

URL ___________________________________________________________________

Go to http://www.purplemath.com/modules/quadprob3.htm to see the process used for determining the quadratic function for revenues R(x) as a function of price hikes x on page 3 with the canoe-rental business problem. Use this process to determine the quadratic function that models the revenues R(x) as a function of price hikes x in the apartment building scenario above. SHOW ALL YOUR WORK!

3. What is the formula for revenues R after   x $20 price hikes in the apartment building?

Graph the function. Clearly label the graph (desmos.com is a great an on-line graphing resource).

Find the maximum revenue (or income) of the apartment building.

What is the rent that coincides with this maximum revenue?

What is the outcome of the rent hike of $20 results in 2 additional vacancies instead of 1 additional vacancy? Recalculate questions 3, 5, 6 for this new scenario.

1.If store rent has been paid in cash for the month, then

a. owner's equity will decrease.

b. an asset will increase.

c. a liability will increase.

d. the owners equity will increase

2.

Pharoah’s Forest Products showed the following account balances at the end of 2021:

Assuming all accounts have normal balances, what are the totals for the debit and credit columns in the trial balance?

a. $234900

b. $233950

c. $135250

d. $163650

3. The accounts of a business before an adjusting entry is made to record an accrued revenue reflect an

a. understated liability and an overstated owner's capital.

b. overstated asset and an understated revenue.

c. understated expense and an overstated revenue.

d. understated asset and an understated revenue.

4. If a company purchases inventory for $150000 with terms 1/5 n/30 and pays within the discount period, the amount of cash paid is

a. $151500.

b. $148500.

c. $150000.

d. $155000.

5. Windsor Farm Store had a beginning merchandise inventory of $9000. During the period, purchases were $34800; purchase returns, $1700; and freight in $2500. A physical count of inventory at the end of the period revealed that $6400 was still on hand. Using a periodic inventory system, the cost of goods sold was

a. $43800.

b. $38200.

c. $45500.

d. $42100.

Data used in budgeting:

Actual results for December:

Answer ALL of the questions below!

Circle the right expression in the parentheses.

Q1. Import tariff (a. raises, b. lowers, c, keeps constant) the domestic price and (a. always, b. sometimes, c. never) (a. raises, b lowers) the world price.

2. (Multiple choices.) A tariff in a large country tends to benefit (a. domestic producers/ b. foreign producers/ c. domestic consumers/ d. foreign consumers/ e. domestic government revenue) and hurt (a. domestic producers/ b. foreign producers/ c. domestic consumers/ d. foreign consumers/ e. domestic government revenue). Similarly, an export subsidy tends to benefit (a. domestic producers/ b. foreign producers/ c. domestic consumers/ d. foreign consumers/ e. domestic government revenue) and hurt (a. domestic producers/ b. foreign producers/ c. domestic consumers/ d. foreign consumers/ e. domestic government revenue).(4)

3. Trade policy (a. always/ b. sometimes/ c. never) generates an efficiency loss and (a. always/ b. sometimes/ c. never) improves the terms of trade. If the country is small, the (a. former/ b. latter) never holds true.(3)

4. Import quotas (a. always/ b. sometimes/ c. never) improve the terms of trade and (a. always/ b. sometimes/ c. never) generates gains in government revenue, and they also (a. benefit/ b. sacrifice) a (a. large/ b. small) number of domestic producers and (a. benefit/ b. sacrifice) a (a. large/ b. small) number of domestic consumers.(6)

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

rev: 09_15_2017_QC_CS-99734

4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December 31 is the company’s reporting year-end.

Information necessary to prepare the year-end adjusting entries appears below.

1. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciation method.
2. The office equipment is depreciated at 10 percent of original cost per year.
3. Prepaid insurance expired during the year, $1,250.
4. Accrued salaries at year-end, $950.
5. Deferred rent revenue at year-end should be $500.

Required:
1. From the trial balance and information given, prepare adjusting entries.
2. Post the beginning balances and adjusting entries into the appropriate T-accounts.
3. Prepare an adjusted trial balance.
4. Prepare closing entries.
5. Prepare a post-closing trial balance.

Rundell Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of July. Wages and Supplies are purely variable costs while Insurance is all fixed cost. Miscellaneous expense is a mixed cost with $2,500 being the fixed component of the total amount planned.

Rundell Corporation

Comparison of Actual Results to Planning Budget

For the Month Ended July 31

Required: Using the Planning budget column and the assumptions above, determine the unit variable costs and the fixed costs needed to build the Flexible Budget then complete the Revenue and Spending Variances and the Activity Variances for each revenue and expense account and the appropriate totals. You may prepare the Flexible Budget amounts on a separate worksheet and submit, but it is not required.Round answers to whole amounts, use commas if necessary and no dollar signs.

Rundell Corporation

Flexible Budget Performance Report - Variances Only

For the Month Ended July 31