Instructions

1- You should use a Microsoft Office Word to accomplish this assignment.

SABIC Corporation December 01, 2017

Account Titles

Cash $18,000

Supplies 3,000

Prepaid Insurance 600

Building 7,000

Account Payable 8,600

Notes Payable 1,200

Unearned Service Revenue 2,500

Common Stock 10,000

Dividends 500

Service Revenue 12,000

Salaries Expense 4,000

Rent Expense 1,200


Assumes the following adjustments data  

1. Supplies on hand at December. 31 total $1000.

2. Expired insurance for the month is $100.

3. Depreciation for the month is $150.

4. Services worth $900 related to the previously recorded unearned revenue had been performed.

5. Services performed but unrecorded at December 31 are $300.

6. Interest Expense accrued at December 31 is $180.

7. Accrued salaries at December 31 are $700.



Required:

In a worksheet format prepare  

1. Trail balance (14 points).

2. Adjustments including adjusting entries and column (38 points).

3. Adjusted Trail balance (22 points).

4. Income Statement (11 points).

5. Balance sheet (Financial Position) Statement (15 points)

The following are selected ledger accounts of Whispering Corporation at December 31, 2020.

Whispering’s effective tax rate on all items is 20%. A physical inventory indicates that the ending inventory is $686,000.

Prepare a condensed 2020 income statement for Whispering Corporation. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Cash Budget
Wilson's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows:

All sales are on credit; 60 percent is collected during the month of sale, and 40 percent is collected during the next month. Cost of goods sold is 70 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $44,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $40,000.

Prepare monthly cash budgets for February, March, and April.

Use negative signs only with beginning and ending cash balances, when appropriate. Do not use negative signs with disbursement answers.

Please respond to the following: From the case study, in 2009, the FASB issued a ruling related to income recognition from multiple element sales involving software to various stakeholder groups. Evaluate the impact of Apple’s retrospective restatement of its financial statements resulting from FASB’s ruling. Provide support for your rationale.

From the case study, examine the influence of both Apple’s reported deferred revenue and the lobbying by Apple executives on FASB’s ruling. Indicate your agreement or disagreement with Apple’s attempt to influence FASB’s ruling.

Case Study: Apple’s net income before provision for income taxes was only $7.984 billion. For 2007 through 2009, but primarily for 2008 and 2009, Apple deferred $9.619 billion of pretax profits (some should have been deferred because Apple did have an obligation to provide software updates, and not all of the deferrals were because of the iPhone and iTV). The market appropriately ignored Apple’s accounting because the expected cost to provide software updates to its iPhones was so low (when it adopted the new revenue recognition rules, Apple disclosed that it was deferring only $25 of revenue for iPhone software upgrades, and that may be a very conservative deferral).

The next series of questions deal with comparing Monthly profits form Generic antibiotics and Name brand antibiotics

Figure A.    (Daily profit Revenue)

15. (Using Figure A) The general manager believes that having Generic antibiotics does not increase revenue because its less expensive. With respect to central tendency, does the data support this? Explain which measures you use and why they are appropriate. Hint: consider shape.

16. (Using Figure A) The general manager is concerned that because of variability that the revenue isn’t typically larger with Generic antibiotic means. With respect to variability, does the data support this concern? Explain which measures you use and why they are appropriate. Hint: There are four measures to compare. One of these is helpful. (consider shape of the data).

In this exercise you will choose a term from the column on the left and Type it beside the appropriate definition in the space provided. While you are allowed to consult your notes, time is limited so do as many as you can first so that you do not run out of time.

The adjusted trial balance of King Cornelius Company follows:

KING CORNELIUS COMPANY
Adjusted Trial Balance
December 31, 2014
Cash $ 5,600
Accounts receivable 37,100
Inventory 25,800
Supplies 1,300
Prepaid rent 1,000
Furniture 26,500
Accumulated depreciation $ 23,800
Accounts payable 6,300
Salary payable 2,000
Interest payable 600
Unearned sales revenue 2,400
Note payable, long-term 35,000
K. Cornelius, Capital 22,200
K. Cornelius, Drawing 48,000
Sales revenue 244,000
Interest revenue 2,000
Sales discounts 10,000
Sales returns and allowances 8,000
Cost of goods sold 81,000
Salary expense 72,700
Rent expense 7,700
Depreciation expense 2,700
Utilities expense 5,800
Supplies expense 2,200
Interest expense 2,900
Total $338,300 $338,300

Requirements
1. Journalize the closing entries at December 31. Post to the Income summary account as an accuracy check on net income. Recall that the credit balance closed out of Income summary should equal net income as computed on the income statement.
2. Prepare the company’s multi-step income statement, and balance sheet in account form. Draw arrows linking the statements.

Cash Budget
Wilson's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows:

All sales are on credit; 60 percent is collected during the month of sale, and 40 percent is collected during the next month. Cost of goods sold is 70 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $44,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $40,000.

Prepare monthly cash budgets for February, March, and April.

Use negative signs only with beginning and ending cash balances, when appropriate. Do not use negative signs with disbursement answers.

Cox Electric makes electronic components and has estimated the following for a new design of one of its products:

Fixed Cost = $3,000

Material cost per unit = $0.15

Labor cost per unit = $0.10

Revenue per unit = $0.65

Production Volume = 12,000
Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all it produces, build a spreadsheet model that calculates the profit by subtracting the fixed cost and total variable cost from total revenue, and answer the following questions.

Cox Electric makes electronic components and has estimated the following for a new design of one of its products:

Fixed Cost = $15,000

Material cost per unit = $0.15

Labor cost per unit = $0.10

Revenue per unit = $0.65

Production Volume = 12,000

Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all it produces, build a spreadsheet model that calculates the profit by subtracting the fixed cost and total variable cost from total revenue, and answer the following questions.