Albany High School is planning a field trip for senior students. They expected 100 students to participate in the trip but eventually 130 students join the trip. They planned to charge each student a price of $25 for the trip and spend an expense of $20 per student for the trip. Then, they find that the expense of the filed trip goes up to $30 per student, and they have to increase the price for each student to $40.

Budget Actual

Number of students 100 130

Revenue per student $25 $40

Expense per student $20 $30

(1) What is the expense variance? Is it favorable or unfavorable? How would this variance affect the balance of the budget (aka: the profit)? (Hint: Homework 6 templates might be useful for this question, but you don’t need to follow the templates. No need to consider Quantity (input) in this question.)

(2) What is the revenue variance? Is it favorable or unfavorable? How would this variance affect the balance of the budget (aka: the profit)? (Hint: Homework 6 templates might be useful for this question, but you don’t need to follow the templates. No need to consider the Mix in this question.)

(3) What is the total variance (revenue variance and expense variance together)? Is it favorable or unfavorable? How would this variance affect the balance of the budget (aka: the profit)?

White Ltd has adjusted trial balance as follows on 30 June 2020.

Required:

(a) Prepare the closing entries.

(b) Calculate debt-to-equity ratio and interest coverage ratio, and comment on the solvency of the company.

(c) Prepare reversing entries, assuming prepaid expenses are originally record as expenses.

Debt-to-equity ratio = Total liabilities/Total shareholders’ equity

Interest coverage ratio = Earnings before interest and tax (EBIT)/Net interest expense

*Please upload the solution as soon as you can finish it. Thanks for your help

On January 1, 2015, the ledger of Accardo Company contains the following liability accounts. Accounts Payable $52,420 Sales Taxes Payable 7,150 Unearned Service Revenue 16,740 During January, the following selected transactions occurred.

Jan. 5 Sold merchandise for cash totaling $16,740, which includes 8% sales taxes.

Jan 12 Performed services for customers who had made advance payments of $11,320. (Credit Service Revenue.)

Jan 14 Paid state revenue department for sales taxes collected in December 2014 ($7,150).

Jan 20 Sold 950 units of a new product on credit at $50 per unit, plus 8% sales tax.

Jan 21 Borrowed $24,750 from Girard Bank on a 3-month, 8%, $24,750 note.

Jan 25 Sold merchandise for cash totaling $7,560, which includes 8% sales taxes.

1) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the Girard Bank note.)

2) Prepare the current liabilities section of the balance sheet at January 31, 2015. Assume no change in accounts payable.

Date      Account Titles and Explanation    Debit      Credit

Lindstrom Company produces two fountain pen models. Information about its products follows:

Lindstrom’s fixed costs total $84,500.

Required:
1. Determine Lindstrom’s weighted-average unit contribution margin and weighted-average contribution margin ratio. (Round your weighted-average CM to 2 decimal places and your CM ratio to 1 decimal place (i.e. .123 should be entered as 12.3%)).



2. Calculate Lindstrom’s break-even point in units and in sales revenue. (Round your "Sales Revenue" answer to 2 decimal places and "Sales Units" answer to the nearest whole number.)


    
3. Calculate the number of units that Lindstrom must sell to earn a $120,000 profit. (Round your answer to the nearest whole number.)


    
4. Calculate Lindstrom’s margin of safety and margin of safety as a percentage of sales if it sells 11,000 total pens. (Round your margin of safety in units to the nearest whole number and your percentage of sales answer to 2 decimal places (i.e. .1234 should be entered as 12.34%))

Top executive officers of Preston Company, a merchandising firm, are preparing the next year’s budget. The controller has provided everyone with the current year’s projected income statement. Current Year Sales revenue $ 3,200,000 Cost of goods sold 2,240,000 Gross profit 960,000 Selling & admin. expenses 380,000 Net income $ 580,000 Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $60,000. The president has announced that the company’s goal is to increase net income by 15 percent.

1. Richard Bains, a professional accountant, performed accounting service December, A bill was mailed to the client on December 30. Richard transfer on January 5. The Revenue recognition principle requires the following accounts appears on the balance sheet at December 31?

a) Prepaid expense b) Accounts receivable c) Unearned revenue d) Accounts payable

2. A business acquires equipment costing $10,000 by making a $2,000 ISSuing a note for the balance. This transaction will cause:

a) Notes payable to be debited for $8,000 b) Cash to be credited for $8,000 c) Equipment to be debited for $10,000 d) Equipment to be credited for $8,000

3. Purchasing supplies on account would include a:

a) Debit to supplies and a credit to accounts payable b) Debit to supplies and a credit to notes payable c) Debit to supplies and a debit to accounts payable d) Debit to supplies and a credit to cash

4. Unearned revenue has:

a) Not been earned but the cash has been received b) Been earned and the cash has been received Been earned but the cash has not been received d) Not been earned nor has the cash been received

5. The accounts that appear on a post-closing trial balance are:

a) Revenues, expenses, and capital b) Assets, liabilities, and expenses

As the new owner of a supermarket, you have inherited a large inventory of unsold imported Limburger cheese, and you would like to set the price so that your revenue from selling it is as large as possible. Previous sales figures of the cheese are shown in the following table.

Price per Pound, p $3.00 $4.00 $5.00

Monthly Sales, q (pounds) 402 284 222

(a) Use the sales figures for the prices $4 and $5 per pound to construct a demand function of the form q = Ae−bp, where A and b are constants you must determine. (Round A and b to two significant digits.) q =

(b) Use your demand function to find the price elasticity of demand at each of the prices listed. (Round your answers to two decimal places.) p = $3, E = p = $4, E = p = $5, E =

(c) At what price should you sell the cheese to maximize monthly revenue? (Round your answer to the nearest cent.) $

(d) If your total inventory of cheese amounts to only 200 pounds, and it will spoil one month from now, how should you price it to receive the greatest revenue? (Round your answer to the nearest cent.)

1. Potato growers have a mandatory demand expansion program where all growers pay a certain amount to fund a promotion program for tomatoes. You have estimated the following market supply and demand functions for potatoes, which include a demand shifter for generic potato promotion:

Qd = 15 - P + 0.1PROM

Qs = 5 + 2.5P TC = 0.2Qs

where: Qd = quantity demanded of potatoes, measured in million pounds,

P = price of potatoes measured in $ per pound,

PROM = total generic promotion in million dollars,

Qs= quantity supplied, measured in million pounds,

TC = total production costs, but does not include the promotion costs.

(a) Assume that in 2019, PROM = 2.5. Calculate the equilibrium price, quantity, total industry net revenue (total revenue minus TC).

(b) Simulate the equilibrium price, quantity, total industry net revenue if the industry spent zero on promotion, i.e., PROM=0. Compute the average net benefit-cost ratio for the potato industry for potato promotion.

(c) Now assume the new demand curve for tomatoes is: Qd = 15 - P + 0.5PROM Based on the new demand function, what is the average net BCR due to potato generic Promotion?

The following ledger accounts are used by the Shawanda Race Track:
Cash
Accounts Receivable
Prepaid Printing
Prepaid Rent
Unearned Admissions Revenue
Note Payable
Interest payable
Admissions Revenue
Concessions Revenue
Interest Expense
Printing Expense
Rent Expense

Instructions
For each of the transactions below, prepare the journal entry (if one is required) to
record the initial transaction and then prepare the adjusting entry, if any, required on
November 30, the end of the fiscal year.
a) On November 1, paid rent on the track facility for three months, $105,000.
b) On November 1, sold season tickets for admission to the racetrack. The racing season
is year-round with 25 racing days each month. Season ticket sales totalled $900,000.
c) On November 1, borrowed $150,000 from their bank by issuing a 6% note payable
due in three months. Interest is payable at maturity.
d) On November 5, schedules for 20 racing days in November, 25 racing days in
December and 15 racing days in January were printed for $3,000.
e) The accountant for the concessions company reported that gross receipts for
November were $140,000. Ten percent is due to Shawanda and will be remitted by
December 10.

Answer the following statements as true or false, then select the correct multiple -choice answer:

  1.   If dividends are declared during the year the company would close the dividend account by debiting retained

         earnings and crediting the dividend account.

  2.   A company that forgets to recognize depreciation for the year understates its income and assets.

  3.   Prepaid insurance expense will have a zero balance on the after closing trial balance.

  4.   Retained earnings on an adjusted trial balance is the beginning retained earnings for the period.

A.    True, False, False, False

B.    False, True, True, False

C.    True, False, False, True

D. True, True, False, False

A partial listing of a company’s accounts are listed below:

      Sales Revenue                               $190,000                Depreciation Expense         $20,000

      COGS                                               84,000                Rent Expense                          8,000

      Cash                                                     1,000                Unearned Revenue                 2,000

      Building                                          200,000                Wage Expense                      30,000

      Accumulated Depreciation                44,000                Interest Expense                     3,000

      Note Payable                                     50,000               Service Revenue                   60,000

      Dividends                                            4,000               Goodwill                                 7,000

    The closing entry to close the Income Summary would include a debit to Income Summary for:

A. $101,000

B. $189,000

C. $105,000

D. $  77,000