Ichabod runs a clothing store in London. He recently purchased 1000 dress shirts that had a manufacturer’s list price of $35. On each shirt there was a trade discount of 10%, 8% and 6% from the manufacturer. Ichabod’s store has operating expenses that are 35% of the selling price and rate of markup is 60% on selling price.  

a) He sold 400 shirts at the regular selling price. What was the total revenue from the first 400 shirts sold?

b) During a sale, Ichabod offered a markdown of 20% and sold another 250 shirts. What was the total revenue from the 250 shirts sold?

c) Ichabod sold another 200 shirts at the break-even price. What was the total revenue from the 200 shirts sold at the break-even price?

d) What was the rate of markdown from the regular price of the shirts to the break-even price of the shirts?

Please show all work with correct formulas

Instruction
Prepare a correct trial balance. (Note: It may be necessary to add one or more accounts to the trial balance.)
E3-5 (L03) EXCEL (Adjusting Entries) The ledger of Duggan Rental Agency on March 31 of the current year includes the
following selected accounts before adjusting entries have been prepared.
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment $ 8,400
Notes Payable 20,000
Unearned Rent Revenue 9,300
Rent Revenue 60,000
Interest Expense –0–
Salaries and Wages Expense 14,000
An analysis of the accounts shows the following.
1. The equipment depreciates $250 per month.
2. One-third of the unearned rent was recognized as revenue during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $850.
5. Insurance expires at the rate of $300 per month.

Lease or Sell Decision

Inman Industries is considering selling excess machinery with a book value of $278,000 (original cost of $398,500 less accumulated depreciation of $120,500) for $274,200 less a 6% brokerage commission. Alternatively, the machinery can be leased for a total of $283,500 for five years, after which it is expected to have no residual value. During the period of the lease, Inman Industries' costs of repairs, insurance, and property tax expenses are expected to be $24,900.

a. Prepare a differential analysis report for the lease or sell decision.

b. Based on the data presented, which is the most appropriate plan of action?

The trial balance of Sam Landscaping at 30 June 2019 is as follows:

Additional information for the period:
a. The insurance was purchased on 1 May 2019, and it covers a period of 24 months.
b. A physical count reveals $4,000 of landscaping supplies are on hand at the end of 30 June
c. Equipment is depreciated at a rate of 20% each year
d. $1,600 unearned service revenue was earned
e. Accrued salaries are $3,600

Required:
Prepare relevant adjusting entries. Ignore narrations.

During the year, Trombley Incorporated has the following inventory transactions.

For the entire year, the company sells 51 units of inventory for $21 each.

A: Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

B:Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit

C:Using weighted-average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Weighted-Average Cost per unit" to 2 decimal places.)

D: Which method will result in higher profitability when inventory costs are declining?

The Mojito Computer Store had the following transactions in May 2018.

Required (5 points):

For each transaction, indicate in the space provided how much, if any, revenue or

expense should be recorded in May 2018.

a. Sold a computer to a customer in the amount of $2,100. Delivered the

computer in May. Customer paid in June 2018.

Amount of revenue to be recorded in May______________

b. Collected $1,200 in May from a customer for a computer to be delivered in

June.

Amount of revenue to be recorded in May ______________

c. Paid $400 in sales commissions to sales persons related to sales that were

made in April 2018.

Amount of expense to be recorded in May ______________

d. Paid $2,400 in May for a 6-month insurance policy to cover the period from

May 1, 2018 - October 31, 2018.

Amount of expense to be recorded in May ______________

e. Received an electric bill for May in the amount of $230. The bill is not due

for payment until June 15.

Amount of expense to be recorded in May ______________

Prepare an Income Statement and Balance Sheet for Kidgets Tour Servicesbased on the following information. Your boss would also like you to write a brief paragraph on how you think the company could improve its profitability.

A monopoly *

a-Is a firm that sets its own price

b-Has several sellers.

c-Has at least a few sellers.

d-Has many buyers and sellers.

Which of the following statements about a monopoly is FALSE? *

a-A monopoly is the only supplier of the good.

b-Monopolies have no barriers to entry or exit.

c-The good produced by a monopoly has no close substitutes.

d-None of the above; that is, all of the above answers are true statements about a monopoly

The closest example of a monopoly market is *

a-Mercedes Benz

b-Apple phones

c-wheat

d-Electricité du Liban

For a monopolist, the demand curve lies: *

a-Below the supply curve

b-Above the supply curve

c-Below the marginal revenue curve

d-Above the marginal revenue curve

For a monopoly, the industry’s demand curve is the firm's *

a-profit function.

b-marginal revenue curve.

c-supply curve.

d-demand curve.

learn about Adjusting Entries. These are internal transactions that are required to make sure that all of the revenue and expenses are accurately recorded in the accounting period. They're also important so that our amounts recorded in the Balance Sheet are correct.

There are four categories of Adjusting Entries: Prepaid Expenses (including Depreciation), Unearned Revenue, Accrued Expenses and Accrued Revenue. Within each of these categories, there are a lot of examples that we could show.

For this graded discussion, please choose one category of Adjusting Entries. Within that category, choose one example of an adjusting entry that you might make in a company.

---Please describe why this adjusting entry needs to be made.

---Please describe the accounts that are affected by making the adjusting entry.

----Please describe the impact this adjusting entry has on the Income Statement and the Balance Sheet.

---Which adjusting entry do you think will be most prone to error? It does not have to be the example you chose.

The above table contains the maximum prices different types of consumers are willing to pay for three software titles: PowerPoint, Excel and Word. Suppose there are 100 consumers of each type.

a. (6 pts) Which of the following three strategies has the chance of generating the highest revenue for Microsoft?

Support your answers with revenue estimates for each strategy.
Strategy A. Charge a single price of $315 for the bundle of PowerPoint, Excel and Word
Strategy B. Charge $60 for PowerPoint, $80 for Excel and $75 for Word
Strategy C. Charge $125 for PowerPoint, $175 for Excel and $140 for Word

The best strategy among A, B, and C is…

b. (4 pts) Can you suggest a strategy that would produce higher revenue that any of the above three strategies? Support your answer with numbers.