In: Accounting
Entertainment Inc. is a retail store that rents movies and sells
music CDs over the Internet. The firm’s cash receipts for February
and the general ledger accounts used to record these transactions
are shown below.
GENERAL LEDGER ACCOUNTS
| 101 | Cash | $ | 5,060 | Dr. | 401 | Sales | |
| 109 | Notes Receivable | 900 | Dr. | 491 | Interest Income | ||
| 111 | Accounts Receivable | 4,125 | Dr. | 620 | Cash Short or Over | ||
| 129 | Supplies | 710 | Dr. | ||||
| 231 | Sales Tax Payable | 345 | Cr. | ||||
| 301 | Jason Wilson, Capital | 35,000 | Cr. | ||||
| DATE | TRANSACTIONS | ||
| Feb. | 3 | Received $600 from Danielle Pelzel, a credit customer, on account. | |
| 5 | Received a cash refund of $130 for damaged supplies. | ||
| 7 | Had cash sales of $5,800 plus sales tax of $464 during the first week of February; there was a cash shortage of $70. | ||
| 9 | Jason Wilson, the owner, invested an additional $16,000 cash in the business. | ||
| 12 | Received $480 from Kyela Jones, a credit customer, in payment of her account. | ||
| 14 | Had cash sales of $4,550 plus sales tax of $364 during the second week of February; there was an overage of $38. | ||
| 16 | Received $550 from Sadie Nelson, a credit customer, to apply toward her account. | ||
| 19 | Received a check from Ketura Pittman to pay her $900 promissory note plus interest of $36. | ||
| 21 | Had cash sales of $5,050 plus sales tax of $404 during the third week of February. | ||
| 25 | Alfred Herron, a credit customer, sent a check for $680 to pay the balance he owes. | ||
| 28 | Had cash sales of $5,100 plus sales tax of $408 during the fourth week of February; there was a cash shortage of $46. | ||
Required:
Open the general ledger accounts and enter the balances as of February 1, 2019.
Record the transactions in a cash receipts journal.
Post the individual entries from the Other Accounts Credit section of the cash receipts journal to the proper general ledger accounts.
Total, prove, and rule the cash receipts journal as of February 28, 2019.
Post the column totals from the cash receipts journal to the proper general ledger accounts.
Analyze:
What total accounts receivable were collected in February?
Post the opening balances and transactions into the appropriate ledger accounts.
General Ledgers
Cash Receipts
Analyze
In: Accounting
Maple Leafs Sports & Entertainment is considering purchasing one of the following two pieces of lighting equipment. Equipment A has a purchase price of $10 million and will cost, $240,000 pre-tax, to operate on an annual basis. This equipment will have to be replaced every 5 years and has a salvage value of $1 million. Equipment B on the other hand, has an initial cost of $14 million and costs $210,000 pre-tax, annually to operate. This equipment has a useful life of 7 years with a salvage value of $1.2 million. Both equipment sets are in an asset class with a CCA Rate of 30% and are otherwise identical. The income tax rate is 40 percent and the appropriate discount rate is 10%. Which equipment should the company purchase and why?
In: Finance
**Do not round in this problem. Use at least 5 significant figures.
A large entertainment company, let’s call them Wisney! Ok, so Wisney is considering buying a new piece of land in the Everglades and planning to put a new campground…but make it fun! The land they are buying has a stipulation that nothing can be built on the property until it is paid in full. Wisney is wealthy and has cash available but due to COVID-19 is being a bit more conservative about spending large amounts of money on new projects, therefore they will take out a loan with a nominal rate of 4.78%.
In: Economics
In: Accounting
In: Accounting
Entertainment Inc. is a retail store that rents movies and sells
music CDs over the Internet. The firm’s cash receipts for February
and the general ledger accounts used to record these transactions
are shown below.
GENERAL LEDGER ACCOUNTS
| 101 | Cash | $ | 5,060 | Dr. | 401 | Sales | |
| 109 | Notes Receivable | 900 | Dr. | 491 | Interest Income | ||
| 111 | Accounts Receivable | 4,125 | Dr. | 620 | Cash Short or Over | ||
| 129 | Supplies | 710 | Dr. | ||||
| 231 | Sales Tax Payable | 345 | Cr. | ||||
| 301 | Jason Wilson, Capital | 35,000 | Cr. | ||||
| DATE | TRANSACTIONS | ||
| Feb. | 3 | Received $600 from Danielle Pelzel, a credit customer, on account. | |
| 5 | Received a cash refund of $130 for damaged supplies. | ||
| 7 | Had cash sales of $5,800 plus sales tax of $464 during the first week of February; there was a cash shortage of $70. | ||
| 9 | Jason Wilson, the owner, invested an additional $16,000 cash in the business. | ||
| 12 | Received $480 from Kyela Jones, a credit customer, in payment of her account. | ||
| 14 | Had cash sales of $4,550 plus sales tax of $364 during the second week of February; there was an overage of $38. | ||
| 16 | Received $550 from Sadie Nelson, a credit customer, to apply toward her account. | ||
| 19 | Received a check from Ketura Pittman to pay her $900 promissory note plus interest of $36. | ||
| 21 | Had cash sales of $5,050 plus sales tax of $404 during the third week of February. | ||
| 25 | Alfred Herron, a credit customer, sent a check for $680 to pay the balance he owes. | ||
| 28 | Had cash sales of $5,100 plus sales tax of $408 during the fourth week of February; there was a cash shortage of $46. | ||
Required:
Open the general ledger accounts and enter the balances as of February 1, 2019.
Record the transactions in a cash receipts journal.
Post the individual entries from the Other Accounts Credit section of the cash receipts journal to the proper general ledger accounts.
Total, prove, and rule the cash receipts journal as of February 28, 2019.
Post the column totals from the cash receipts journal to the proper general ledger accounts.
Analyze:
What total accounts receivable were collected in February?
In: Accounting
In: Economics
Tom Hruise was an entertainment executive who had a fatal accident on a film set. Tom’s will directed his executor to distribute his cash and stock to his wife, Kaffie, the real estate to his church, The First Church of Methodology, and the remainder of his assets were to be placed in trust for his three children. Tom’s estate consisted of the following: (Enter your answers in dollars, not millions of dollars.)
| Assets: | ||
| Personal assets | $ | 800,000 |
| Cash and stock | 24,000,000 | |
| Intangible assets (film rights) | 71,500,000 | |
| Real estate | 15,000,000 | |
| $ | 111,300,000 | |
| Liabilities: | ||
| Mortgage | $ | 3,200,000 |
| Other liabilities | 4,100,000 | |
| $ | 7,300,000 | |
a. Tom made a taxable gift of $8 million in 2011. Compute the estate tax for Tom’s estate.
In: Accounting
You will read “Sports & Entertainment – Endorsement Contracts" of your textbook. Should "morals clauses" be a part of an athlete's endorsement contract? What are the views of the athletes and of the companies? Who should decide if or when the contract should be terminated for violations? Can the courts be utilized controversies over whether a "morals clause" has been violated? If so, is the occurrence of a morals clause violation a condition precedent or a condition subsequent? What are the potential problems if there is no such clause in an endorsement contract? Should repetition of previous poor behavior of the athlete affect the decision whether a termination is appropriate, with the thought that the company accepted that behavior before entering into the contract?
In: Economics