Crane Clark opened Crane’s Cleaning Service on July 1, 2020. During July, the following transactions were completed.

Ricky’s Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:

Following are the January transactions:

1. Received a $795 deposit from a customer who wanted her piano rebuilt in February.
2. Rented a part of the building to a bicycle repair shop; $545 rent received for January.
3. Delivered five rebuilt pianos to customers who paid $14,425 in cash.
4. Delivered two rebuilt pianos to customers for $7,600 charged on account.
5. Received $6,400 from customers as payment on their accounts.
6. Received an electric and gas utility bill for $750 for January services to be paid in February.
7. Ordered $1,140 in supplies.
8. Paid $3,400 on account in January.
9. Paid $16,900 in wages to employees in January for work done this month.
10. Received and paid cash for the supplies in (g).

Prepare a classified balance sheet for the month ended and at January 31.

Grouper’s Miniature Golf and Driving Range Inc. was opened on March 1 by Bob Dean. These selected events and transactions occurred during March.

Supply Club, Inc., sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2018 it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers do not earn additional loyalty points for purchases on which loyalty points are redeemed. Based on past experience, Supply Club estimates a 75% probability that any point issued will be redeemed for the discount. During July 2018, the company records $132,000 of revenue and awards 220,000 loyalty points. The aggregate stand-alone selling price of the purchased products is $132,000. Eighty percent of sales were cash sales, and the remainder were credit sales.

Required:
1. & 2. Prepare Supply Club’s journal entry to record July and August sales. During August, customers redeem loyalty points on $132,000 of merchandise. Seventy-five percent of those sales were for cash, and the remainder were credit sales. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

Answer both questions using chart

Lock-Tite Company

Jobs Report – Traditional OH allocation (Direct Labor Dollars)

Year Ending December 31

1. Comparing the Gross Margin percentages of the jobs under traditional costing. Should Lock-Tite be concerned with the accuracy of the overhead applied to each job? Explain why in 30 to 50 words.

2. Businesses that typically use job costing, will generally quote their customers a price before the work begins. Recently, Lock-Tite’s customers have indicated that their prices are priced significantly different from competitive companies’ prices. Given the significant amount of under-applied overhead, do you think these gross margin percentages are realistic? Could they be charging their customers too much? Not enough? While answering these questions, explain how the application of overhead impacts the information the company uses. Use 30 to 50 words.

Supply Club, Inc., sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2018 it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers do not earn additional loyalty points for purchases on which loyalty points are redeemed. Based on past experience, Supply Club estimates a 80% probability that any point issued will be redeemed for the discount. During July 2018, the company records $153,000 of revenue and awards 106,250 loyalty points. The aggregate stand-alone selling price of the purchased products is $153,000. Seventy percent of sales were cash sales, and the remainder were credit sales.

Required:
1. & 2. Prepare Supply Club’s journal entry to record July and August sales. During August, customers redeem loyalty points on $68,000 of merchandise. Seventy-five percent of those sales were for cash, and the remainder were credit sales. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

Supply Club, Inc., sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2018 it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers do not earn additional loyalty points for purchases on which loyalty points are redeemed. Based on past experience, Supply Club estimates a 70% probability that any point issued will be redeemed for the discount. During July 2018, the company records $157,500 of revenue and awards 125,000 loyalty points. The aggregate stand-alone selling price of the purchased products is $157,500. Seventy percent of sales were cash sales, and the remainder were credit sales.

Required:
1. & 2. Prepare Supply Club’s journal entry to record July and August sales. During August, customers redeem loyalty points on $70,000 of merchandise. Sixty-five percent of those sales were for cash, and the remainder were credit sales. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

Supply Club, Inc., sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2018 it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers do not earn additional loyalty points for purchases on which loyalty points are redeemed. Based on past experience, Supply Club estimates a 70% probability that any point issued will be redeemed for the discount. During July 2018, the company records $220,500 of revenue and awards 175,000 loyalty points. The aggregate stand-alone selling price of the purchased products is $220,500. Seventy percent of sales were cash sales, and the remainder were credit sales.

Required:
1. & 2. Prepare Supply Club’s journal entry to record July and August sales. During August, customers redeem loyalty points on $98,000 of merchandise. Seventy-five percent of those sales were for cash, and the remainder were credit sales. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

Business Plan

I have chosen the mortgage industry with my main company being Quicken Loans. For my market domain I will be focusing on mortgage origination and servicing. The main reason I selected this market is I have been employed with a mortgage servicing company for the last 8 years and have gained significant knowledge operationally of how important this industry is to all customers. I am looking forward to evaluating this market and gaining additional knowledge in this industry. I have seen the progression from the crash of the mortgage industry in 2006 where it clearly showed how important it is as it almost pushed the U.S. economy into a recession. The mortgage industry has a long history of highs and lows and I believe I will be able to accurately identify SOWT within this industry. With an ever-changing world the mortgage industry has to continue to shift and balance revenue opportunities vs. regulatory compliance directives.

While doing my research I will be using resources such as S&P Global Ratings Research, Harvard Business, Housing Wire, FITCH rating agency data, US News, etc. I believe the challenges I will face with researching this market is the enormous amount of news reports and data that do not fully represent the facts accurately. I also believe due to this being such a large market and the amount of change that has occurred good and bad there is a lot of data to work through. A main focus within this market I will be using is going to be digital transformation and how Quicken loans has embraced this with their consumer base to not only increase productivity, but also provide an easier streamlined approach for consumers. The world is now different and the majority of people use cell phones, electronic funds transfer, online accounts, etc. Quicken loans is using this technology to enhance the consumer experience.

As part of researching the mortgage industry and Quicken Loans I will also be discussing companies who were not as fortunate and made mistakes which led to their ultimate closing such as Thornburg Mortgage LLC who was effected by the subprime mortgage crisis in 2007 which forced them to file chapter 11 bankruptcy in 2009 and lead to multiple investigations of the founders.

Question: Please provide substantive feedback on the above market domain selection. Please also provide references if used