Questions
Tracer Advance Corporation (TAC) sells a tracking implant that veterinarians surgically insert into pets. TAC began...

Tracer Advance Corporation (TAC) sells a tracking implant that veterinarians surgically insert into pets. TAC began January with an inventory of 400 tags purchased from its supplier in November last year at a cost of $24 per tag, plus 200 tags purchased in December last year at a cost of $30 per tag. TAC uses a perpetual inventory system to account for the following transactions.

Jan. 3 TAC gave 500 tags to a courier company (UPS) to deliver to veterinarian customers. The sales price was $60 per tag, and the sales terms were n/30, FOB shipping point.
Jan. 4 UPS confirmed that all 500 tags were delivered today to customers.
Jan. 9 TAC ordered 700 tags from its supplier. The supplier was out of stock but promised to send them to TAC as soon as possible. TAC agreed to a cost of $43 per tag, n/30.
Jan. 19 The 700 tags ordered on January 9 were shipped to and received by TAC today. TAC complained about the delay between order and shipment date, so the supplier reduced the amount TAC owed by granting an allowance of $1 per tag ($700 total).
Jan. 23 TAC gave 750 tags to UPS, which were delivered “same day” to veterinarian customers at a price of $60 per tag, n/30, FOB shipping point.
Jan. 28 TAC received cash payment from customers for 400 of the tags delivered January 4.
Jan. 31 TAC counted its inventory and determined 40 tags were on hand. TAC made a “book-to-physical adjustment” to account for the missing 10 tags.

Assume Tracer Advance Corporation (TAC) uses LIFO in its perpetual inventory system. Prepare the journal entry for each transaction.

Journal Entry Worksheet

1 - Record the sale of tags to veterinarian customers

2 - Record the cost of tags sold to veternarian customers.

3- Record the tags delivered to customers.

4-Record the order for tags made by TAC from its supplier.

5-Record the purchase of tags after deducting the allowance given by supplier for delay between order and shipment.

6- Record the sale of tags to veterinarian customers.

7-Record the cost of tags sold to veternarian customers.

8-Record the cash collected from customers.

9-Record the loss of inventory at its cost.

In: Accounting

Use the following to answer the next six questions MADONNA, INC. Unadjusted Trial Balance December 31,...

Use the following to answer the next six questions
MADONNA, INC.
Unadjusted Trial Balance
December 31, 2012
DR CR
Cash $ 51,000   
Equipment 38,000   
Retained Earnings $ 4,000
Accounts Payable 6,000
Unearned Fee Revenue 8,000
Accumulated Depreciation-Equipment 1,800
Accounts Receivable 1,500   
Supplies 950   
Salaries Expense 6,700   
Common StockInsurance Expense 500 61,050
Fee RevenueRent Expense 4,200 30,000
Notes Receivable 8,000   
$ 110,850 $ 110,850
1. On July 1, 2012, Madonna paid the landlord $4,200 for 10 months rent in advance. The adjusting entry at December 31, 2012 would include:
A. debit to Prepaid Rent for $2,520
B. credit to Rent Expense for $1,680
C. credit to Rent Expense for $2,520
D. debit to Rent Expense for $2,520
E. none of the above
2. On October 1, 2012, Madonna received $8,000 in advance for fees to be earned evenly over five months beginning on that date. The required adjusting journal entry at December 31, 2012 would include a:
A. debit to Fee Revenue for $3,200
B. credit to Unearned Fee Revenue for $4,800
C. credit to Fee Revenue for $3,200
D. credit to Fee Revenue for $4,800
E. none of the above
3. The Notes Receivable represent a loan given to a supplier for $8,000 on December 1, 2012. The loan carries a 12 percent interest rate and has a term of 180 days. The adjusting entry on December 31, 2012 will include:
A. A debit to Interest Expense for $80
B. A debit to Interest Receivable for $80
C. A credit to Interest Payable for $480
D. A debit to Notes Receivable for $480
E. none of the above
4. At December 31, 2012 there was $320 of supplies on hand. The adjusting entry would include a:
A. credit to Supplies Expense of $630
B. debit to Supplies of $320
C. debit to Supplies Expense of $630
D. debit to Supplies Expense of $320
E. None of the above
5. The Equipment was purchased on July 1, 2011. It has a useful life of ten years and an estimated salvage value of $2,000. The adjusting entry at December 31, 2012 would include a:
A. credit to Equipment for $3,600
B. debit to Depreciation Expense –Equipment for $3,800
C. credit to Accumulated Depreciation –Equipment for $3,600
D. debit to Depreciation Expense –Equipment for 5,400
E. none of the above
6. Refer to the previous question. The book value of the Equipment on the December 31, 2012 balance sheet (after adjusting depreciation expense for 2012) is:
A. $ 36,000
B. $ 32,600
C. $ 32,400
D. $ 30,600
E. none of the above

7. The accountant for the Mobe Company made an adjusting entry to record depreciation for the current year twice by mistake. The effect of this error would be:
A. An overstatement of assets offset by an understatement of owner’s equity.
B. An understatement of assets, net income, and owner’s equity.
C. An overstatement of assets and of net income, and an understatement of owner’s equity.
D. An overstatement of net income and an understatement of assets.
E. None of the above.
8. The Sweeney Theater offered books of theater tickets to its patrons at $30 per book. Each book contained a certain number of tickets to future performances. During the current period 1,000 books were sold for $30,000, and this amount was credited to a temporary account. At the end of the period it was determined that $17,000 worth of book tickets had been used by customers attending performances. The appropriate adjusting entry at the end of the period would be:
A. Debit Ticket Revenue $17,000 and credit Unearned Ticket Revenue $17,000.
B. Debit Unearned Ticket Revenue $13,000 and credit Ticket Revenue $13,000.
C. Debit Unearned Ticket Revenue $17,000 and credit Ticket Revenue $17,000.
D. Debit Ticket Revenue $13,000 and credit Unearned Ticket Revenue $13,000.
E. None of the above.

In: Accounting

Metlock, Inc. has the following information available for accruals for the year ended December 31, 2017....

Metlock, Inc. has the following information available for accruals for the year ended December 31, 2017. The company adjusts its accounts annually. 1. The December utility bill for $385 was unrecorded on December 31. Metlock paid the bill on January 11. 2. Metlock is open 7 days a week and employees are paid a total of $3,150 every Monday for a 7-day (Monday–Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28–Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on January 4. 3. Metlock signed a $40,500, 5% bank loan on November 1, 2016, due in 2 years. Interest is payable on the first day of each following month. 4. Metlock receives a fee from Pizza Shop next door for all pizzas sold to customers using Metlock’s facility. The amount owed for December is $270, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.) 5. Metlock rented some of its unused warehouse space to a client for $5,400 a month, payable the first day of the following month. It received the rent for the month of December on January 2.

In: Accounting

The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below:

The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below:

Service revenue .......................................$ 900,000
Operating expenses ..................................700,000
Income before income taxes ...................200,000
Income tax expense ....................................50,000
Net income ..............................................$ 150,000

The following balance sheet
 information also is available:

12/31/2021 12/31/2020 $ 70,000 Cash $305,000 Accounts receivable 120,000 100,000 Accrued liabilities ( for operating exp

In addition, the following transactions took place during the year:
1. Common stock was issued for $100,000 in cash.
2. Long-term investments were sold for $50,000 in cash. The original cost of the investments also was $50,000.
3. $80,000 in cash dividends was paid to shareholders.
4. The company has no outstanding debt, other than those payables listed above.
5. Operating expenses include $30,000 in depreciation expense.

 

Required:
1. Prepare a statement of cash flows for 2021 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities. Use a format similar to the one in the Concept Review Exercise at the end of Part B of this chapter.
2. Prepare the cash flows from operating activities section of Diversified’s 2021 statement of cash flows using the indirect method. Use a format similar to the one in the Concept Review Exercise at the end of Part B of this chapter.

In: Computer Science

Universal Leasing leases electronic equipment to a variety of businesses. The company’s primary service is providing...

Universal Leasing leases electronic equipment to a variety of businesses. The company’s primary service is providing alternate financing by acquiring equipment and leasing it to customers under long-term sales-type leases. Universal earns interest under these arrangements at a 11% annual rate. The company leased an electronic typesetting machine it purchased for $40,900 to a local publisher, Desktop Inc. on December 31, 2017. The lease contract specified annual payments of $8,959 beginning January 1, 2018, the beginning of the lease, and each December 31 through 2019 (three-year lease term). The publisher had the option to purchase the machine on December 30, 2020, the end of the lease term, for $22,700 when it was expected to have a residual value of $26,700, a sufficient difference that exercise seems reasonably certain. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Show how Universal calculated the $8,959 annual lease payments for this sales-type lease. 2. Prepare an amortization schedule that describes the pattern of interest revenue for Universal Leasing over the lease term. 3. Prepare the appropriate entries for Universal Leasing from the beginning of the lease through the end of the lease term.

In: Economics

Universal Leasing leases electronic equipment to a variety of businesses. The company’s primary service is providing...

Universal Leasing leases electronic equipment to a variety of businesses. The company’s primary service is providing alternate financing by acquiring equipment and leasing it to customers under long-term sales-type leases. Universal earns interest under these arrangements at a 11% annual rate.
  
The company leased an electronic typesetting machine it purchased for $39,900 to a local publisher, Desktop Inc., on December 31, 2020. The lease contract specified annual payments of $8,617 beginning January 1, 2021, the beginning of the lease, and each December 31 through 2022 (three-year lease term). The publisher had the option to purchase the machine on December 30, 2023, the end of the lease term, for $22,600 when it was expected to have a residual value of $26,600, a sufficient difference that exercise seems reasonably certain. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. Show how Universal calculated the $8,617 annual lease payments for this sales-type lease.
2. Prepare an amortization schedule that describes the pattern of interest revenue for Universal Leasing over the lease term.
3. Prepare the appropriate entries for Universal Leasing from the beginning of the lease through the end of the lease term.

In: Accounting

10) Universal Leasing leases electronic equipment to a variety of businesses. The company’s primary service is...

10) Universal Leasing leases electronic equipment to a variety of businesses. The company’s primary service is providing alternate financing by acquiring equipment and leasing it to customers under long-term sales-type leases. Universal earns interest under these arrangements at a 10% annual rate.
  
The company leased an electronic typesetting machine it purchased for $30,900 to a local publisher, Desktop Inc. on December 31, 2017. The lease contract specified annual payments of $8,000 beginning January 1, 2018, the beginning of the lease, and each December 31 through 2019 (three-year lease term). The publisher had the option to purchase the machine on December 30, 2020, the end of the lease term, for $12,000 when it was expected to have a residual value of $16,000, a sufficient difference that exercise seems reasonably certain. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. Show how Universal calculated the $8,000 annual lease payments for this sales-type lease.
2. Prepare an amortization schedule that describes the pattern of interest revenue for Universal Leasing over the lease term.
3. Prepare the appropriate entries for Universal Leasing from the beginning of the lease through the end of the lease term.
  

In: Accounting

Case Study 2 ( 10 Marks) GEEPAS is an electronic company that worked hard to establish...

Case Study 2 ( 10 Marks)
GEEPAS is an electronic company that worked hard to establish a place for itself in the market. It serves more 85 countries across the globe. GEEPAS produce all kind of products ranging from entertainent products to kitchen appliances and tools.
Mr. Anas is working as head of the marketing department for GEEPAS electronics. Of course, competing with other electronic brands like LG, Samsung and other electronic dominated companies is not an easy task at all. Since they need to establish their customers trust and have their loyalty, so many steps and measurements should be in place for that.
Promotion is a very powerful tool for that. As Anas started to realize that he can do more to widen their customers base. He started to add more advertisement efforts and publicity in radios, TV and other medias. He even started face to face communication with their potential customers and offering more promotions to increase the customers base.
The whole promotion campaign will ensure that the right message will reach the customer as thecompany wants to convey. The company will also ensure that customers understand the whole message that is communicated with them. Also choose how it will reach them and getting there feedback after they recive it to help the company in their promotional effort.

Question 2

i. Describe the communication process that Anas will use to convey the product information to their customers? (4marks, 100-125 words)

ii. What outcome would you predict for the business if Anas did not succeed in his new approach to attract the customers? (3marks, 75-100 words)

iii. Examine the difference between direct and indirect promotional tools that Anas could use to promote his business. Which one will you suggest to Mr. Anas as an effective promotional tool for Geepas? . (3marks, 75-100 words)

In: Accounting

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...


Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:



Quarter 1Quarter 2Quarter 3Quarter 4
  Budgeted Unit Sales32,00052,00026,00052,000

    

     

Each T-shirt is expected to sell for $20.

The purchasing manager buys the T-shirts for $8 each.

The company needs to have enough T-shirts on hand at the end of each quarter to fill 30 percent of the next quarter’s sales demand.

Selling and administrative expenses are budgeted at $64,000 per quarter plus 16 percent of total sales revenue.


Required: 

.1. Determine budgeted sales revenue for each quarter. 

2. Determine budgeted cost of merchandise purchased for each quarter.

3. Determine budgeted cost of good sold for each quarter. 

4. Determine selling and administrative expenses for each quarter.

5. Complete the budgeted income statement for each quarter.

In: Accounting

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:

    

  Quarter 1 Quarter 2 Quarter 3 Quarter 4
  Budgeted Unit Sales 40,000 60,000 30,000 60,000
 

     

•    Each T-shirt is expected to sell for $15.
•    The purchasing manager buys the T-shirts for $6 each.
• The company needs to have enough T-shirts on hand at the end of each quarter to fill 25 percent of the next quarter’s sales demand.
•    Selling and administrative expenses are budgeted at $80,000 per quarter plus 10 percent of total sales revenue.

  

Required:
1. Determine budgeted sales revenue for each quarter.
   
   

  

2. Determine budgeted cost of merchandise purchased for each quarter.
 
3. Determine budgeted cost of good sold for each quarter.
   
   

    

4. Determine selling and administrative expenses for each quarter.

   

 

     

5. Complete the budgeted income statement for each quarter.
 

In: Accounting