Questions
Adjusting entries for unearned items typically include which of the following related types of accounts:


QUESTION 11

Adjusting entries for unearned items typically include which of the following related types of accounts:



Revenue and Liability accounts



Revenue and Asset accounts



Expense and Liability accounts



Expense and Asset accounts

QUESTION 12

Before making adjusting entries you should:



Close permanent accounts



Prepare a Trial Balance



Close temporary accounts



Prepare a balance sheet

QUESTION 13

To record adjusting journal entries in QuickBooks, select:



Company Center > Journal Entry icon



Accountant Menu > Make General Journal Entries



Banking section of the Home Page > Journal Entry icon



Company section of the Home Page > Journal Entry icon

QUESTION 14

The order of the steps in the accounting cycle includes:



Adjusted Trial Balance, financial reports, adjusting entries, Trial Balance



Adjusted Trial Balance, adjusting entries, financial reports, Trial Balance



Trial Balance, adjusting entries, Adjusted Trial Balance, financial reports



Trial Balance, financial reports, adjusting entries, Adjusted Trial Balance

QUESTION 15

To prepare the Trial Balance, select:



Reports Center > Accountant & Taxes



Company Center > Company & Financials



Reports Center > Company & Financials



Company Center > Accountant & Taxes

QUESTION 16

Adjusting entries for prepaid items typically include which of the following related types of accounts:



Revenue and Liability accounts



Revenue and Asset accounts



Expense and Liability accounts



Expense and Asset accounts

QUESTION 17

Unearned revenue occurs when:



Customers pay after receiving a service



Customers pay in advance of receiving a service



Customers default and do not pay you what is owed



All of the choices are correct

QUESTION 18

To print the Adjusted Trial Balance, select:



Reports Center > Accountant & Taxes



Company Center > Company & Financials



Reports Center > Company & Financials



Company Center > Accountant & Taxes

QUESTION 19

Sales are recorded under cash basis accounting when:



The goods or services are provided regardless of whether the cash is collected from the customers



The bookkeeper has time to record the transactions



The cash is collected from the customers



The costs are incurred to earn the revenue

QUESTION 20

The Trial Balance:



Lists all the company's accounts and ending balances



Is prepared before and after making adjustments



Verifies the accounting system balances



All of the choices are correct

In: Accounting

Washington County’s Board of Representatives is considering the construction of a longer runway at the county...

Washington County’s Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board’s decision appear below.

Cost of acquiring additional land for runway $ 69,000
Cost of runway construction 230,000
Cost of extending perimeter fence 16,967
Cost of runway lights 36,000
Annual cost of maintaining new runway 18,000
Annual incremental revenue from landing fees 35,000

In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $140,000. The old snowplow could be sold now for $13,500. The new, larger plow will cost $10,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $92,000 per year in additional tax revenue for the county.

In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county’s hurdle rate for capital projects is 18 percent.

1. Prepare a net-present-value analysis of the proposed long runway.
Annual incremental benefit $0
Annuity discount factor
Present value of annual benefits
Initial costs:
Net present value $0

2. Should the County Board of Representatives approve the runway considering NPV?(Yes or No)

3-a. Which of the data used in the analysis are likely to be most uncertain?

(Select which of the following statements (is) are true by selecting an "X".)
Cost of acquiring land
Annual cost of maintaining new runway
Annual incremental revenue from landing fees
Cost of new snow plow
Cost of runway lights
Annual additional tax revenue
Salvage value of old snow plow

3-b. Which of the data used in the analysis are likely to be least uncertain?

(Select which of the following statements (is) are true by selecting an "X".)
Annual additional tax revenue
Annual cost of maintaining new runway
Cost of acquiring land
Annual incremental revenue from landing fees
Cost of runway lights
Salvage value of old snow plow
Cost of new snow plow

In: Finance

During the year, Trombley Incorporated has the following inventory transactions.   Date Transaction Number of Units Unit...

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


  Date Transaction Number
of Units		 Unit
Cost		    Total Cost
  Jan. 1      Beginning inventory 16      $ 18       $ 288    
  Mar. 4      Purchase 21      17       357    
  Jun. 9      Purchase 26      16       416    
  Nov. 11      Purchase 26      14       364    
89      $ 1,425    

   

For the entire year, the company sells 69 units of inventory for $26 each.

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

FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory
# of units Average Cost per unit Cost of Goods Available for Sale # of units Average Cost per unit Cost of Goods Sold # of units Average Cost per unit Ending Inventory
Beginning Inventory $0 $0 $0
Purchases:
Mar 04 0 $0 0
Jun 09 0 $0 0
Nov 11 0 $0 0
Total 0 $0
Sales revenue
Gross profit

2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory
# of units Average Cost per unit Cost of Goods Available for Sale # of units Average Cost per unit Cost of Goods Sold # of units Average Cost per unit Ending Inventory
Beginning Inventory
Purchases:
Mar 04
Jun 09
Nov 11

Total
Sales revenue
Gross profit

3. 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.)

Weighted Average Cost Cost of Goods Available for Sale Cost of Goods Sold - Weighted Average Cost Ending Inventory - Weighted Average Cost
# of units Average Cost per unit Cost of Goods Available for Sale # of units Sold Average Cost per Unit Cost of Goods Sold # of units in Ending Inventory Average Cost per unit Ending Inventory
Beginning Inventory 16 $288
Purchases:
Mar.4 21 357
Jun.9 26 416
Nov.11 26 364
Total
Sales revenue
Gross profit

In: Accounting

1. Under absorption costing, a company had the following unit costs when 8,000 units were              produced.        ...

1. Under absorption costing, a company had the following unit costs when 8,000 units were

             produced.        

Direct labor

$

8.50

per unit

Direct material

$

9.00

per unit

Variable overhead

$

6.75

per unit

Fixed overhead ($60,000/8,000 units)

$

7.50

per unit

Total production cost

$

31.75

per unit

Compute the total production cost per unit under variable costing if 25,000 units had been produced.

A) $31.75

B) $27.25

C) $26.25

D) $24.25

E) $17.50

2.         When evaluating a special order, management should:

A) Only accept the order if the incremental revenue exceeds all product costs.

B) Only accept the order if the incremental revenue exceeds fixed product costs.

C) Only accept the order if the incremental revenue exceeds total variable product costs.

D) Only accept the order if the incremental revenue exceeds full absorption product costs.

E) Only accept the order if the incremental revenue exceeds regular sales revenue.

3.       Which of the following best describes costs assigned to the product under the absorption

             costing method?

Direct labor (DL)

Direct materials (DM)

Variable selling and administrative (VSA)

Variable manufacturing overhead (VOH)

Fixed selling and administrative (FSA)

Fixed manufacturing overhead (FOH)

A) DL, DM, VSA, and VOH.

B) DL, DM, and VOH.

C) DL, DM, VOH, and FOH.

D) DL and DM.

E) DL, DM, FSA, and FOH.

4.       Which of the following best describes costs assigned to the product under the variable

             costing method?

Direct labor (DL)

Direct materials (DM)

Variable selling and administrative (VSA)

Variable manufacturing overhead (VOH)

Fixed selling and administrative (FSA)

Fixed manufacturing overhead (FOH)

A) DL, DM, VSA, and VOH.

B) DL, DM, and VOH.

C) DL, DM, VOH, and FOH.

D) DL and DM.

E) DL, DM, FSA, and FOH.

12.       Howley Company has the following information for April:

                        

                        Sales                            $912,000

                        VC of goods sold           474,000

                        FC – mfg.                          82,000

                        VC – selling & adm.       238,000

                        FC – selling & adm.          54,700

a, Operating Income for Howley during the month of April.

In: Accounting

Complete a Balance Sheet ABC Corporation Income Statement For the Year Ended December 31, 2014 Sales...

Complete a Balance Sheet

ABC Corporation
Income Statement
For the Year Ended December 31, 2014
Sales Revenue    792,845
Less: Operating Expenses
Wages Expense         80,350
Office Expense         21,700
Utilities Expense         31,000
Advertising Expense $       8,400
Insurance Expense         82,000
Employee Compensation Expense         10,000
Bad Debt Expense         25,000
Pension Expense         40,000
Depreciation Expense         33,759
Total Operating Expenses    332,209
Income from Operations    460,636
Other Revenue/Expenses
Rent Revenue         12,000
Interest Income         19,561
Interest Expense          (1,175)     30,386
Income before Taxes    491,021
Income Tax Expense    (63,800)
Net Income    427,221
ABC Corporation
Adjusted Trial Balance
December 31, 2014
Debit Credit
Accounts Payable $           65,340
Accounts Receivable              190,300
Accumulated Depreciation: Building $             5,400
Accumulated Depreciation: Equipment               29,359
Accumulated Other Comprehensive Income               15,000
Additional Paid in Capital - Treasury Stock               21,000
Advertising Expense                  8,400
Allowance for Doubtful Accounts               25,000
Bad Debt Expense                25,000
Bonds Interest Expense                43,088
Bonds Payable           1,600,000
Building              150,000
Cash            1,270,676
Common Stock             101,000
Depreciation Expense                33,759
Dividends                41,000
Employee Compensation Expense                10,000
Employee Stock Option Outstanding Account               10,000
Equipment                50,000
Fair value adjustment (Trading)                 (8,000)
Income Taxes Expense                63,800
Income Taxes Payable               63,800
Insurance Expense                82,000
Interest Expense                  1,175
Interest Income               19,561
Interest Receivable                16,000
Inventory                        -
Investment in Bonds of Intuit Corp              200,000
Investment in Bonds of Intuit Corp - Discount               18,615
Land                75,000
Lease Equipment                43,796
Lease Liability               33,293
LT (Debt) Investments (HTM)              177,824
Notes Payable             236,175
Office Expense                21,700
Patent                37,500
Pension Expense                40,000
Pension-Related Asset                10,000
PIC in Excess of Par - Common Stock               33,000
Premium on Bonds Payable             118,630
Prepaid Insurance                17,400
Purchases              350,000
Rent Revenue               12,000
Retained Earnings                       -
Sales Revenue             792,845
Short-term Investments              167,000
Treasury Stock                        -
Unearned Rent Revenue               24,000
Unrealized Holding Gains and Losses                  8,000
Utilities Expense                31,000
Wages Expense                80,350
Wages Payable $           12,750
Total $        3,236,768 $       3,236,768

In: Accounting

Which of the following statements is true about productive and allocative efficiency? Productive efficiency and allocative...

Which of the following statements is true about productive and allocative efficiency?

Productive efficiency and allocative efficiency can only occur together; neither can occur without the other.

Productive efficiency can only occur if there is also allocative efficiency.

Society can achieve either productive efficiency or allocative efficiency, but not both simultaneously.

Realizing allocative efficiency implies that productive efficiency has been realized.

Select which of the statements below aretrue.

Both pure and monopolistically competitive firms do not need to advertise their products so that they may minimize their ATC.

Natural monopolies can achieve minimum ATC.

Under regulatory marginal cost pricing, firms earn normal profits, but no more.

Economic profits are treated as a cost of production.

None of the other answers are true.

A purely competitive firm is currently producing 100 units of output and selling at $40 price. Its cost structure at the existing operation level is:

AFC = $10

AVC = $25

MC =$35

This firm

is earning an economic profit = $500.

is losing $1500.

should shut-down in the short run.

should cut back on its current level of production.

none of the other answers are correct.

The most microeconomic topic below is

French inflation rates.

aggregate unemployment in Russia.

Mexican economic growth.

the level of Volkswagan profit.

the American money supply and central bank policies.

America's national debt

Which statement is true?

A firm's explicit costs are the opportunity costs of using the resources that it already owns to make the firm's own product rather than selling those resources to outsiders for cash.

If demand is elastic, a decrease in price will increase total revenue.

Average revenue is the total amound the seller receives from the sale of a product in a praticular time period.

Marginal cost reaches its minimum point just as marginal product reaches its minimum point as well.

Diseconomies of scale explain the downward sloping part of the long-run ATC curve.

In the most competitive of industries, the surviving firms will earn huge economic profit over the longer run.

Marginal revenue

exceeds price for monopoly firms.

is perfectly inelastic for purely competitive firms.

is equivalent to average revenue for purely price discriminating firms.

is rising under conditions of oligopoly.

measures the slope of the average revenue curve.

is positive at the level of maximum total revenue.

In: Economics

On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Accounts...

On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances:

Accounts Debit Credit
Cash $ 23,900
Accounts Receivable 5,300
Supplies 3,200
Land 51,000
Accounts Payable $ 3,300
Common Stock 66,000
Retained Earnings 14,100
Totals $ 83,400 $ 83,400

During January 2021, the following transactions occur:

January 2 Purchase rental space for one year in advance, $6,300 ($525/month).
January 9 Purchase additional supplies on account, $3,600.
January 13 Provide services to customers on account, $25,600.
January 17 Receive cash in advance from customers for services to be provided in the future, $3,800.
January 20 Pay cash for salaries, $11,600.
January 22 Receive cash on accounts receivable, $24,200.
January 29 Pay cash on accounts payable, $4,100.

The following information is available on January 31.

  • Rent for the month of January has expired.
  • Supplies remaining at the end of January total $2,900.
  • By the end of January, $3,275 of services has been provided to customers who paid in advance on January 17.
  • Unpaid salaries at the end of January are $5,730.

Solve Service Revenue, Retained Earning for Jan 31 and retained earning for jan 31. Create income statemenent and balance sheet

No Date Account Title Debit Credit
1 Jan 02 Prepaid Rent 6,300
Cash 6,300
2 Jan 09 Supplies 3,600
Accounts Payable 3,600
3 Jan 13 Accounts Receivable 25,600
Service Revenue 25,600
4 Jan 17 Cash 3,800
Deferred Revenue 3,800
5 Jan 20 Salaries Expense 11,600
Cash 11,600
6 Jan 22 Cash 24,200
Accounts Receivable 24,200
7 Jan 29 Accounts Payable 4,100
Cash 4,100
8 Jan 31 Rent Expense 525
Prepaid Rent 525
9 Jan 31 Supplies Expense 3,900
Supplies 3,900
10 Jan 31 Deferred Revenue 3,275
Service Revenue 3,275
11 Jan 31 Salaries Expense 5,730
Salaries Payable 5,730
12 Jan 31 Service Revenue
Retained Earnings
13 Jan 31 Retained Earnings
Salaries Expense 17,330
Rent Expense 525
Supplies Expense 3,900

In: Accounting

Adger Corporation is a service company that measures its output based on the number of customers...

Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below:
Fixed Element
per Month		 Variable Element per Customer Served Actual Total
for May
  Revenue $ 5,700      $ 209,500
  Employee salaries and wages $ 64,000     $ 1,100      $ 106,400
  Travel expenses $ 560      $ 19,000
  Other expenses $ 43,000     $ 40,700

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers

1.What net operating income would appear in Adger’s flexible budget for May?

2. What is Adger's revenue variance for May?
Actual Results Revenue Variance Flexible Budget
3.

What is Adger’s employee salaries and wages spending variance for May?

Actual Results Spending Variance Flexible Budget

4.What is Adgers travel expenses spending variance for May?

Actual Results Spending Variance Flexible Budget

5. What is Adger's other expenses spending variance for May?

Actual Results Spending Variance Flexible Budget

6. What amount of revenue would be inculded in Adger's planning budget for May?

Revenue:
Variable element per customer served
Planned level of activity
Amount in planning budget

7. What amount of employee salaries and wages would be inculded in Adger's planning budget for May?

Employee salaries and wages:
Variable element per customer served
Planned activity
Variable portion of the amount
Fixed element per month
Amount in planning budget $0

8. What amount of travel expenses would be inculded in Adger's planning budget for May?

Travel expenses:
Variable element per customer served
Planned activity
Amount in planning budget

9. What amount of other expenses would be included in Adger's planning budget for May?

Amount of other expenses

10. What exctiving Variance would Adger report in May with respect to its revenue?

Flexible Budget Activity Variance Planning Budget

11. What activity Variances would Adger report with respect to each of its expenses?

Flexible Budget Activity Variance Planning Budget
Employee salaries and wages
Travel expenses
Other expenses

In: Accounting

4. The Laffer curve Government-imposed taxes cause reductions in the activity that is being taxed, which...

4. The Laffer curve


Government-imposed taxes cause reductions in the activity that is being taxed, which has important implications for revenue collections.

To understand the effect of such a tax, consider the monthly market for vodka, which is shown on the following graph.

Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.

Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.

image.png

Suppose the government imposes a $ 20-per-bottle tax on suppliers.

At this tax amount, the equilibrium quantity of vodka is _______  bottles, and the government collects $_______  in tax revenue.

Now calculate the government's tax revenue if it sets a tax of $ 0, $ 20, $ 40, $ 50, $ 60, $ 80, or $ 100 per bottle. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels.

Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.

image.png

Suppose the government is currently imposing a $ 40-per-bottle tax on vodka.

True or False: The government can raise its tax revenue by increasing the per-unit tax on vodka.


Consider the deadweight loss generated in each of the following cases: no tax, a tax of $ 40 per bottle, and a tax of $ 80 per bottle.

On the following graph, use the black curve (plus symbols) to illustrate the deadweight loss in these cases. (Hint: Remember that the area of a triangle is equal to 1/2 × Base × Height. In the case of a deadweight loss triangle found on the graph input tool, the base is the amount of the tax and the height is the reduction in quantity caused by the tax.)

image.png

As the tax per bottle increases, deadweight loss _______ .



In: Economics

Problem 7-9 Dixie Showtime Movie Theaters, Inc., owns and operates a chain of cinemas in several...

Problem 7-9

Dixie Showtime Movie Theaters, Inc., owns and operates a chain of cinemas in several markets in the southern U.S. The owners would like to estimate weekly gross revenue as a function of advertising expenditures. Data for a sample of eight markets for a recent week follow.


  Market		 Weekly Gross Revenue
($100s)		 Television Advertising
($100s)		 Newspaper Advertising
($100s)
  Mobile 101.3 4.9 1.4
  Shreveport 52.9 3.1 3.2
  Jackson 75.8 4.2 1.5
  Birmingham 127.2 4.5 4.3
  Little Rock 137.8 3.6 4
  Biloxi 102.4 3.5 2.3
  New Orleans 236.8 5 8.4
  Baton Rouge 220.6 6.8 5.9
(a) Use the data to develop an estimated regression with the amount of television advertising as the independent variable.
Let x represent the amount of television advertising.
If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)
=   +   x
Test for a significant relationship between television advertising and weekly gross revenue at the 0.05 level of significance. What is the interpretation of this relationship?
The input in the box below will not be graded, but may be reviewed and considered by your instructor.
(b) How much of the variation in the sample values of weekly gross revenue does the model in part (a) explain?
If required, round your answer to two decimal places.
%
(c) Use the data to develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables.
Let x1 represent the amount of television advertising.
Let x2 represent the amount of newspaper advertising.
If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)
=   +  x1 +  x2
(d) How much of the variation in the sample values of weekly gross revenue does the model in part (c) explain?
If required, round your answer to two decimal places.
%

In: Statistics and Probability