The following information relates to Hudson City for its fiscal year ended December 31, 2017.
During the year, retailers in the city collected $1,700,000 in sales taxes owed to the city. As of December 31, retailers have remitted $1,100,000, $200,000 is expected in January 2018, and the remaining $400,000 is expected in April 2018.
On December 31, 2016, the Foundation for the Arts pledged to donate $1, up to a maximum of $1 million, for each $3 that the museum is able to collect from other private contributors. The funds are to finance construction of the city-owned art museum. During 2017, the city collected $600,000 and received the matching money from the Foundation. In January and February 2018, it collected an additional $2,400,000 and also received the matching money.
During the year the city imposed license fees on street vendors. All vendors were required to purchase the licenses by September 30, 2017. The licenses cover the one-year period from October 1, 2017, through September 30, 2018. During 2017 the city collected $240,000 in license fees.
The city sold a fire truck for $40,000 that it had acquired five years earlier for $250,000. At the time of sale the city had charged $225,000 in depreciation.
The city received a grant of $2 million to partially reimburse costs of training police officers. During the year the city incurred $1,500,000 of allowable costs and received $1,200,000. It expects to incur an additional $500,000 in allowable costs in January 2048 and to be reimbursed for all allowable costs by the end of February 2018.
Refer to the two lists that follow. Select the appropriate amounts from the lettered list for each item in the numbered list. An amount may be selected once, more than once, or not at all.
Amount of sales tax revenue that the city should recognize in its funds statements
Amount of sales tax revenue the city should recognize as revenue in government-wide statements
Increase in deferred inflows in funds statements from sales tax revenues not yet received
Contribution revenue from Foundation for the Arts to be recognized in funds statements
Contribution revenue from Foundation for the Arts to be recognized in government-wide statements
Revenue from license fees to be recognized in funds statements
Increase in general fund balance owing to sale of fire engine
Increase in net position (government-wide statements) owing to sale of fire engine
Revenue in fund statements from police training grant
Revenue in government-wide statements from police training grant
PLEASE INLCUDE COMPUTATIONS FOR ANSWERS GIVEN!
Answer Choices
a. $0 m. $1,000,000
b. $1,500 n. $1,200,000
c. $15,000 o. $1,300,000
d. $30,000 p. $1,500,000
e. $40,000 q. $1,700,000
f. $60,000 r. $2,000,000
g. $200,000
h. $225,000
i. $240,000
j. $400,000
In: Accounting
What is the computations for the following answers? I can't figure this one out.
The following information relates to Hudson City for its fiscal year ended December 31, 2017. • During the year, retailers in the city collected $1,700,000 in sales taxes owed to the city. As of December 31, retailers have remitted $1,100,000. $200,000 is expected in January 2018, and the remaining $400,000 is expected in April 2018. • On December 31, 2016, the Foundation for the Arts pledged to donate $1, up to a maximum of $1 million, for each $3 that the museum is able to collect from other private contributors. The funds are to finance construction of the city-owned art museum. During 2017, the city collected $600,000 and received the matching money from the Foundation. In January and February 2018 it collected an additional $2,400,000 and also received the matching money. • During the year the city imposed license fees on street vendors. All vendors were required to purchase the licenses by September 30, 2017. The licenses cover the one-year period from October 1, 2017, through September 30, 2018. During 2017 the city collected $240,000 in license fees. • The city sold a fire truck for $40,000 that it had acquired five years earlier for $250,000. At the time of sale the city had charged $225,000 in depreciation. • The city received a grant of $2 million to partially reimburse costs of training police officers. During the year the city incurred $1,500,000 of allowable costs and received $1,200,000. It expects to incur an additional $500,000 in allowable costs in January 2018 and to be reimbursed for all allowable costs by the end of February 2018. Refer to the two lists that follow. Select the appropriate amounts from the lettered list for each item in the numbered list. An amount may be selected once, more than once, or not at all. 1. Amount of sales tax revenue that the city should recognize in its funds statements e. $40,000 2. Amount of sales tax revenue the city should recognize as revenue in government-wide statements m. $1,000,000 3. Increase in deferred inflows in funds statements from sales tax revenues not yet received e. $40,000 4. Contribution revenue from Foundation for the Arts to be recognized in funds statements h. $225,000 5. Contribution revenue from Foundation for the Arts to be recognized in government-wide statements h. $225,000 6. Revenue from license fees to be recognized in funds statements j. $400,000 7. Increase in general fund balance owing to sale of fire engine c. $15,000 8. Increase in net position (government-wide statements) owing to sale of fire engine c. $15,000 9. Revenue in fund statements from police training grant p. $1,500,000 10. Revenue in government-wide statements from police training grant p. $1,500,000
In: Accounting
Revenue Recognition, Cash and Accrual Bases
Hathaway Health Club sold three-year memberships at a reduced
rate during its opening promotion. It sold 1,000 three-year
nonrefundable memberships for $351 each. The club expects to sell
100 additional three-year memberships for $888 each over each of
the next two years. Membership fees are paid when clients sign up.
The club's bookkeeper has prepared the following income statement
for the first year of business and projected income statements for
Years 2 and 3.
Cash-basis income statement:
| Year 1 | Year 2 | Year 3 | |
| Sales | $351,000 | $88,800 | $88,800 |
| Equipment* | $107,000 | $0 | $0 |
| Salaries and wages | 49,830 | 49,830 | 49,830 |
| Advertising | 5,330 | 5,330 | 5,330 |
| Rent and utilities | 32,490 | 32,490 | 32,490 |
| Net income (loss) | $156,350 | $1,150 | $1,150 |
*Equipment was purchased at the beginning of year 1 for $107,000 and is expected to last for three years and then to be worth $1,070.
Required:
Convert the income statements for each of the three years to the accrual basis. Indicate a net loss with a minus sign.
| Hathaway Health Club | |||
| Income Statements | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $ | $ | $ |
| Expenses: | |||
| Depreciation | $ | $ | $ |
| Salaries and wages | |||
| Advertising | |||
| Rent and utilities | |||
| Total expenses | $ | $ | $ |
| Net income (loss) | $ | $ | $ |
2. Which of the following statements is incorrect?
A. Accural -Basis income statement allows the reader to focus on the long-term profit-ability of the business.
B. Accural -Basis income statement are more useful to the management.
C. Under revenue recognition, revenue is recognized when cash is received.
D. Under revenue recognition, revenue is recognized when performance obligation is satisfied.
In: Accounting
Thomas Topology has completed all its journal entries and adjusting entries for the month of April 2018. The chart of accounts and adjusted trial balance are shown below.
| Account Description | Account # |
| ASSETS | |
| Cash | 101 |
| A/R | 105 |
| Prepaid Insurance | 110 |
| Equipment | 120 |
| Accumulated Depreciation-Equipment | 125 |
| LIABILITIES | |
| A/P | 200 |
| Unearned Revenue | 210 |
| Notes Payable | 215 |
| OWNERS EQUITY | |
| Thompson,Capital | 300 |
| Thompson,Withdrawals | 310 |
| Income Summary | 315 |
| REVENUE | |
| Service Revenue | 400 |
| EXPENSES | |
| Depreciation Expense | 510 |
| Insurance Expense | 515 |
| Interest Expense | 520 |
| Rent Expense | 540 |
| Salaries Expense | 545 |
| Telephone Expense | 550 |
| Travel Expense | 555 |
| Adjusted Trial Balance | ||
| Account Title | DR | CR |
| Cash | 32,050 | |
| A/R | 9000 | |
| Prepaid Insurance | 1100 | |
| Equipment | 15000 | |
| Accumulated Depreciation-Equipment | 120 | |
| Accounts Payable | 25550 | |
| Unearned Revenue | 3200 | |
| Notes Payable | 1500 | |
| Thompson,Capital | 18000 | |
| Service Revenue | 26300 | |
| Depreciation Expense | 120 | |
| Insurance Expense | 100 | |
| Interest Expense | 50 | |
| Rent Expense | 1000 | |
| Salaries Expense | 8000 | |
| Telephone Expense | 250 | |
| Travel Expense | 8000 | |
| Total | 74670 | 74670 |
A.Prepare the Income Statement for Thomas Topolgy
B. Prepare the Statement of owners equity
C.Prepare the balance sheet
D.Create the closing entries using the income summary account and post the closing entries to the ledger accounts
E. Prepare the post closing trial balance. Note: The daily transactions and adjustments for the month of April have already been posted in the general ledger. You are only responsible for posting the closing entries.
In: Accounting
Problem 2
The Dunbar zoo operates a drive-through tourist attraction in hamilton. The selected accounts appearing below reflect balances on January 1 , 2017.
Prepaid Rent (expires on Nov 30,2017) 11,000
Prepaid Insurance (expires on Sep 30,2017) 9,000
Car 30,000
Accumulated Amortization - Car 2,000
Unearned Ticket Revenue 15,000
Other Data
-On December 1, 2017 the Zoo renewed the contract for another year for $18,000 to be paid in three installments. The first installment is due on April 1, 2018.
-On October 1, 2017, the zoo renewed the insurance policy for six months and paid $6,000. The full amount was record as an expense.
The unearned ticket revenue represents tickets sold in advance for future zoo visits. During 2002, additional $12,000 of tickets were sold in advance and were recorded as revenue earned. On December 31, 2017. it was determined that $4,000 of the tickets sold in advance were not used by customers.
A utility bill for $2,000 was received on December 31,2017 for the amount of utility used up during November and December 2017. The bill is due on jANUARY 15,2018.
On December 1, 2017, the zoo signed a contract with the Mifflin Food to supply food for the animals for an amount of $500 per month, effective January 1, 2018. The zoo paid $4,000 in advance and recorded it as an asset.
Required
Prepare the adjusting entires that were made by the Dunbar Zoo on December 31, 2017. If no adjusting entry is required, please type “NO ENTRY” in the appropriate space.
Explain how a revenue journal might to modified for the following specific business. Discuss the process of posting from revenue journal to general ledger.
In: Accounting
This is a partial adjusted trial balance of Wildhorse
Co..
| WILDHORSE
CO. Adjusted Trial Balance January 31, 2017 |
||||
|---|---|---|---|---|
| Debit | Credit | |||
|
Supplies |
$780 | |||
|
Prepaid Insurance |
1,620 | |||
|
Salaries and Wages Payable |
$1,040 | |||
|
Unearned Service Revenue |
710 | |||
|
Supplies Expense |
910 | |||
|
Insurance Expense |
540 | |||
|
Salaries and Wages Expense |
1,770 | |||
|
Service Revenue |
4,350 | |||
Prepare the closing entries at January 31, 2017. (If no
entry is required, select "No Entry" for the account titles and
enter 0 for the amounts. Credit account titles are automatically
indented when the amount is entered. Do not indent
manually.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
Jan. 31 |
enter an account title to close revenue account |
enter a debit amount |
enter a credit amount |
|
enter an account title to close revenue account |
enter a debit amount |
enter a credit amount |
|
|
(To close revenue account) |
|||
|
Jan. 31 |
enter an account title to close expense accounts |
enter a debit amount |
enter a credit amount |
|
enter an account title to close expense accounts |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to close expense accounts |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to close expense accounts |
enter a debit amount |
enter a credit amount |
|
|
(To close expense accounts) |
|||
|
Jan. 31 |
enter an account title to close net income / (loss) |
enter a debit amount |
enter a credit amount |
|
enter an account title to close net income / (loss) |
enter a debit amount |
enter a credit amount |
|
|
(To close net income / (loss)) |
In: Accounting
You have been engaged to review the financial statements of
Walsh Corporation. While examining the work of the bookkeeper hired
during the year that just ended, you noticed a number of
irregularities for the past fiscal year:
| 1. | Year-end wages payable of $13,000 were not accrued, because the bookkeeper thought that “it was immaterial.” | |
| 2. | Accrued vacation pay for the year of $35,200 was not recorded, because the bookkeeper “never heard that you had to do it.” | |
| 3. | Insurance that covers a 12-month period and was purchased on November 1 was charged to insurance expense in the amount of $9,780 “because the amount of the cheque is about the same every year.” | |
| 4. | Reported sales revenue for the year was $2,740,500 and included all sales taxes charged for the year. The sales tax rate is 5%. Because the sales tax is forwarded to the provincial ministry of revenue, the bookkeeper thought that “sales tax is a selling expense” and therefore debited the Sales Tax Expense account. At the end of the fiscal year, the balance in the Sales Tax Expense account was $122,100. |
QUESTION:
Prepare the necessary correcting entries, assuming that Walsh
Corporation uses a calendar-year basis and that the books for the
fiscal year that just ended are not yet closed.
|
No. |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
1. |
enter an account title | ||
| enter an account title | |||
|
2. |
enter an account title | ||
| enter an account title | |||
|
3. |
enter an account title | ||
| enter an account title | |||
|
4. |
enter an account title to record sales tax on revenue | ||
| enter an account title to record sales tax on revenue | |||
|
(To record sales tax on revenue.) |
|||
| enter an account title to adjust balances to actual | |||
| enter an account title to adjust balances to actual | |||
|
(To adjust balances to actual.) |
In: Accounting
City Bagel operates four bagel stores in New York. The owner has provided the following budgeted data for next year.
| Revenue | $11,419,000 |
| Fixed Costs | $3,308,000 |
| Variable Costs (depends on the # of bagels sold) | $7,820,000 |
For each of the following scenarios, determine the dollar impact on
City Bagel.
Consider each scenario independently.
Do not enter dollar signs or commas in the input boxes.
Round all answers to the nearest whole number. Enter all values as
positive values. Do not use the negative sign.
i. A 6% increase in fixed costs.
| Revenue: | AnswerDecrease byIncrease byNo change | $Answer |
| Variable Costs: | AnswerDecrease byIncrease byNo change | $Answer |
| Fixed Costs: | AnswerDecrease byIncrease byNo change | $Answer |
| Contribution Margin: | AnswerDecrease byIncrease byNo change | $Answer |
| Budgeted Operating Income: | AnswerDecrease byIncrease byNo change | $Answer |
ii. A 8% increase in contribution margin, but holding revenue
constant.
| Revenue: | AnswerDecrease byIncrease byNo change | $Answer |
| Variable Costs: | AnswerDecrease byIncrease byNo change | $Answer |
| Fixed Costs: | AnswerDecrease byIncrease byNo change | $Answer |
| Contribution Margin: | AnswerDecrease byIncrease byNo change | $Answer |
| Budgeted Operating Income: | AnswerDecrease byIncrease byNo change | $Answer |
iii. A 16% increase in fixed costs and 14% increase in units
sold.
| Revenue: | AnswerDecrease byIncrease byNo change | $Answer |
| Variable Costs: | AnswerDecrease byIncrease byNo change | $Answer |
| Fixed Costs: | AnswerDecrease byIncrease byNo change | $Answer |
| Contribution Margin: | AnswerDecrease byIncrease byNo change | $Answer |
| Budgeted Operating Income: | AnswerDecrease byIncrease byNo change |
$Answer |
In: Accounting
Extensions of Demand and Supply Analysis
Please can you specify for me which information you need?
In: Economics
ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following income statement account balances are available for ERS at the end of 2019.
| Advertising expense | $24,100 |
| Depreciation expense (on service van) | 16,200 |
| Income taxes expense | 15,150 |
| Interest expense | 10,100 |
| Rent expense | 58,400 |
| Insurance expense | 11,900 |
| Salaries expense (for administrative personnel) | 195,600 |
| Service revenue | 933,900 |
| Supplies expense | 66,400 |
| Utilities expense | 26,100 |
| Wages expense (for service technicians) | 448,300 |
Required:
1. Prepare a single-step income statement for ERS for 2019.
Note: For grouped values (e.g. revenues or expenses), enter individual amounts as positive values. If the total for the group is subtracted or a overall negative amount, enter using a minus sign.
| ERS Inc. | ||
| Income Statement | ||
| For the Year Ended December 31, 2019 | ||
| Revenues: | ||
| Service revenue | $ | |
| Expenses: | ||
| Wages expense | $ | |
| Salaries expense | ||
| Supplies expense | ||
| Rent expense | ||
| Utilities expense | ||
| Advertising expense | ||
| Depreciation expense | ||
| Insurance expense | ||
| Interest expense | ||
| Income taxes expense | ||
| Total expenses | ||
| Net income | $ | |
Feedback
1. Prepare an income statement with proper form. Start with company name, statement type, and date. Total revenue minus total expenses = net income.
2. Conceptual Connection: Compute net profit
margin for ERS. Round your answer to one decimal place.
%
If ERS is able to increase its service revenue by $100,000, what should be the effect on future income?
If ERS had an incremental increase in revenue
of $100,000, based on the net profit margin computed, what is the
additional potential profit?
$
In: Accounting