On October 1, Robertson Company sold inventory in the amount of $5,800 to Alberta, Inc. with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robertson uses a periodic inventory system. Alberta pays the invoice on October 8 and takes the appropriate discount. What journal entry will be recorded by Robertson on October 8?

a. Debit Cash for $3,920, debit Sales Discounts for $80, and credit Accounts Receivable for $4,000

b. Debit Cash and credit Accounts Receivable for $4,000

c. Debit Cash and credit Accounts Receivable for $5,800

d. Debit Cash for $5,684, debit Sales Discounts for $116, and credit Accounts Receivable for $5,800

A company produces toy favors for children's parties. Two of its most popular items around Halloween are pirate eye patches and skeleton key chains. The company accountant determines that the October profit resulting from the sale of p pirate eye patches and s skeleton key chains can be modeled as

T(p, s) = 980 − 0.25p² + 120p + 0.25ps − 0.375s² + 100s dollars.

(a) Calculate the number of eye patches and key chains the company should produce to maximize the October profit resulting from the sale of these two items.

(b) What is the maximum October profit from the sale of the eye patches and key chains?

Sweet Company has the following expected sales for the next several months for its product which sells for $10 per unit:

September       $450,000

October           $500,000

November       $400,000

Sweet buys the product from wholesalers at a cost that is 70 % of the sales price. Sweet has a policy of keeping 50% of what is needed for next month’s sales in inventory. Sweet pays for 40 % of purchases in the month of purchase and the remaining 60 % in the following month. The accounts payable balance at August 31 is $200,000 and there are 20,000 units in August ending inventory.

Required:

1. Prepare a purchases budget in units for September and October.

2. Prepare a cash disbursements budget for purchases for September and October.

Question 3 – Cash Budgeting

Henry’s forecasted data is as follows:

From past experience Henry’s has found that Accounts Receivable pay as follows:

60% in the month the sale

30% in the month following the sale

8% two months after the sale

2% are never collected (become bad debts).

It is Henry’s policy to pay Accounts Payable in the month following the credit purchase.

Cash payments for operating expenses in October are expected to be $144,000.

Required

Prepare a Cash Budget for Henry’s for October.

Shown below is the information needed to prepare bank reconciliation for Mandy Company on 31 October 2019:
(1) The cash ledger account showed a balance of $8,510, while the bank statement indicated a cash balance of $12,390.

(2) The bank statement showed $45 interest earned for the month of October.

(3) ZYX company settled its notes payable by depositing $4,000 directly into Mandy’s bank account.

(4) The company issued three checks totaling $1,000, which had not been shown in the bank statement in October. (5) A $300 check mailed to the bank for deposit had not reached the bank on 31 October.

(6) A $710 deposit to Manning Company was erroneously credited to Mandy’s account by the bank.

(7) The bank returned a customer’s NSF check for $575 received as payment of an account receivable.

(8) A $2,500 check received from a tenant for rental revenue was recorded as $3,500 in the book.

Question 1B

Prepare the necessary journal entries to update the accounting records.

The stockholders’ equity section of Fleming Corporation at December 31, 2009, included the following: 6% preferred stock, $100 par value, cumulative, 15,000 shares authorized, 10,000 shares issued and outstanding $1,000,000 Common stock, $10 par value, 250,000 shares authorized, 200,000 shares issued and outstanding $2,000,000 Dividends were not declared on the preferred stock in 2009 and are in arrears. On September 15, 2010, the board of directors of Fleming Corporation declared dividends on the preferred stock to stockholders of record on October 1, 2010, payable on October 15, 2010. On November 1, 2010, the board of directors declared a $2.50 per share dividend on the common stock, payable November 30, 2010, to stockholders of record on November 15, 2010.

Prepare the journal entries that should be made by Fleming Corporation on the dates indicated below:

September 15, 2010

November 1, 2010

October 1, 2010

November 15, 2010

October 15, 2010

November 30, 2010

Please show work and explain why

Piece of Time is a manufacturer of wrist watches and relies heavily on advertising to promote its products. Its partially filled Prepaid Advertising account below is missing an additional $44,000 (GST-inclusive) prepaid for advertising by Piece of Time on October 8, 2020 and the recognition of advertising expense for the month of October 2020.

Required:

Complete the Prepaid Advertising 3-column ledger below to find out the amount of advertising expense incurred by Piece of Time in October 2020. GST needs to be accounted for.

Using the General Journal below, record the additional $44,000 (GST-inclusive) prepaid for advertising and record the advertising expense for the month of October 2020 following the completion of Prepaid Advertising 3-column ledger above. GST needs to be accounted for. Narrations are not required.

1. 36 Hour Fitness is a calendar year, accrual-basis taxpayer. On October 1, 2017, 36 Hour Fitness sold a 12-month private training contract for $2,400. The client paid the full amount in cash. The service period covers October 1, 2017 to September 30, 2018. • For tax purposes, if 36 Hour Fitness wants to defer income recognition (to the extent allowed by tax law), how much income it should recognize in 2017? In 2018?

2.36 Hour Fitness is a calendar year, accrual-basis taxpayer. On October 1, 2017, 36 Hour Fitness sold a 24-month private training contract for $4,800. The client paid the full amount in cash. The service periods covers October 1, 2017 to September 30, 2019. • For tax purposes, if 36 Hour Fitness wants to defer income recognition (to the extent allowed by tax law), how much income it should recognize in 2017? In 2018? In 2019?

Alberta Corp. (Alberta) manufactures hair shampoo using two departments: a mixing department and a bottling department. Shampoo manufacturing starts with the addition of all of the ingredients in the mixing department. Direct labour and overhead are added evenly throughout the month. Alberta uses the first-in, first-out method of process costing and provided the following information for the month of October.

Beginning work-in-process (WIP) inventory in the mixing department consisted of 750 units that were 15% of the way through the process. This beginning inventory included costs of $5,150 for direct materials, direct labour of $6,250 and overhead of $8,315.

During October, direct materials of $28,950 were added to the mixing department, and

$32,650 in direct labour costs and $55,450 in overhead costs were incurred. At the end of October, 13,500 completed units were transferred to the bottling department, and the remaining 1,650 units in the mixing department were 55% complete.

Required:

Calculate the value of WIP inventory in the mixing department at the end of October.

only journal entries

The following information was available to reconcile Montrose Company’s book balance of Cash with its bank statement balance as of October 31, 2020:

a. After all posting was completed on October 31, the company’s Cash account had a $13,219 debit balance but its bank statement showed a $29,355 balance.
b. Cheques #296 for $1,334 and #307 for $12,754 were outstanding on the September 30 bank reconciliation. Cheque #307 was returned with the October cancelled cheques, but cheque #296 was not. It was also found that cheque #315 for $893 and cheque #321 for $2,000, both written in October, were not among the cancelled cheques returned with the statement.
c. In comparing the cancelled cheques returned by the bank with the entries in the accounting records, it was found that cheque #320 for the October rent was correctly written for $4,090 but was erroneously entered in the accounting records as $4,900.
d. A credit memo enclosed with the bank statement indicated that there was an electronic fund transfer related to a customer payment for $21,400. A $120 bank service charge was deducted. This transaction was not recorded by Montrose before receiving the bank statement.
e. A debit memo for $3,251 listed a $3,202 NSF cheque plus a $49 NSF charge. The cheque had been received from a customer, Jefferson Tyler. Montrose had not recorded this bounced cheque before receiving the statement.
f. Also enclosed with the statement was a $74 debit memo for bank services. It had not been recorded because no previous notification had been received.
g. The October 31 cash receipts, $6,856, were placed in the bank’s night depository after banking hours on that date and this amount did not appear on the bank statement.