The Unadjusted Trial Balance has been prepared (provided below and also in ThreeBrothers worksheet.xlsx), showing only those accounts with a non-zero balance. You have gathered the following information that will be helpful in preparing any necessary adjusting entries (add any accounts necessary). Good luck!
|
ThreeBrothers |
Unadjusted Trial Balance |
|
|
Dec. 31, 2017 |
||
|
debit |
credit |
|
|
Cash |
4,400,000 |
|
|
Accounts Receivable |
22,500,000 |
|
|
Allowance for Bad Debts |
20,000 |
|
|
Inventory |
2,500,000 |
|
|
Purchases |
85,832,500 |
|
|
Construction in Progress Inventory |
36,000,000 |
|
|
Billings on Contract |
35,000,000 |
|
|
PP&E |
60,000,000 |
|
|
Accumulated Depreciation |
36,000,000 |
|
|
Accounts Payable |
18,000,000 |
|
|
Income Tax Payable |
136,000 |
|
|
Common Stock |
1,500,000 |
|
|
Retained Earnings |
33,444,000 |
|
|
Sales Revenue |
134,500,000 |
|
|
Sales Returns |
2,017,500 |
|
|
NEWPROD Revenue |
9,000,000 |
|
|
FITTRACKER Revenue |
10,000,000 |
|
|
Cost of NEWPROD Sold |
8,100,000 |
|
|
Cost of FITTRACKER Sold |
4,500,000 |
|
|
General and Admin |
51,750,000 |
|
|
TOTAL |
277,600,000 |
277,600,000 |
Question 1. ThreeBrothers’s tax rate is 34%. Ignore all other taxes.
1B. There are 150,000 shares of common stock outstanding for 2017.
I need the adjusting journal entry and closing journal entry - for Question 1 and 1B., if necessary. Thank You
In: Accounting
Form a Balance Sheet
| ABC Corporation | ||
| Adjusted Trial Balance | ||
| December 31, 2016 | ||
| Debit | Credit | |
| Cash | $ 834,544 | |
| Accounts Receivable | 442,120 | |
| Allowance for doubtful accounts | 75,000 | |
| Inventory | 70,000 | |
| Allowance to Reduce Inventory to NRV | 16,000 | |
| Prepaid Insurance | 4,500 | |
| Land | 88,000 | |
| Building | 37,500 | |
| Accumulated depreciation: building | 1,265 | |
| Equipment | 21,600 | |
| Accumulated depreciation: equipment | 9,900 | |
| Patent | 45,000 | |
| Accounts Payable | 88,851 | |
| Interest Payable | 35,000 | |
| Income taxes payable | 37,221 | |
| Wages payable | 4,000 | |
| Unearned rent revenue | 9,000 | |
| Bonds payable | 700,000 | |
| Premium on Bonds payable | 52,045 | |
| Common stock | 135,000 | |
| PIC in Excess of Par- Common Stock | 130,000 | |
| Paid in Capital- Treasury Stock | 6,000 | |
| Retained earnings | ||
| Treasury stock | 10,000 | |
| Dividends | 28,000 | |
| Sales Revenue | 790,000 | |
| Rent Revenue | 4,500 | |
| Purchases | 177,000 | |
| Wages expense | 66,150 | |
| Bad debt expense | 75,000 | |
| Office expense | 28,500 | |
| Insurance expense | 22,500 | |
| Advertising expense | 9,240 | |
| Depreciation expense | 11,165 | |
| Interest expense | 31,171 | |
| Loss on inventory | 16,000 | |
| Utilities expense | 33,571 | |
| Impairment loss expense | 5,000 | |
| Income taxes expense | 37,221 | |
| Total | 2,093,782 | 2,093,782 |
In: Accounting
Form a Classified Balance Sheet
| ABC Corporation | ||
| Adjusted Trial Balance | ||
| December 31, 2016 | ||
| Debit | Credit | |
| Cash | $ 834,544 | |
| Accounts Receivable | 442,120 | |
| Allowance for doubtful accounts | 75,000 | |
| Inventory | 70,000 | |
| Allowance to Reduce Inventory to NRV | 16,000 | |
| Prepaid Insurance | 4,500 | |
| Land | 88,000 | |
| Building | 37,500 | |
| Accumulated depreciation: building | 1,265 | |
| Equipment | 21,600 | |
| Accumulated depreciation: equipment | 9,900 | |
| Patent | 45,000 | |
| Accounts Payable | 88,851 | |
| Interest Payable | 35,000 | |
| Income taxes payable | 37,221 | |
| Wages payable | 4,000 | |
| Unearned rent revenue | 9,000 | |
| Bonds payable | 700,000 | |
| Premium on Bonds payable | 52,045 | |
| Common stock | 135,000 | |
| PIC in Excess of Par- Common Stock | 130,000 | |
| Paid in Capital- Treasury Stock | 6,000 | |
| Retained earnings | ||
| Treasury stock | 10,000 | |
| Dividends | 28,000 | |
| Sales Revenue | 790,000 | |
| Rent Revenue | 4,500 | |
| Purchases | 177,000 | |
| Wages expense | 66,150 | |
| Bad debt expense | 75,000 | |
| Office expense | 28,500 | |
| Insurance expense | 22,500 | |
| Advertising expense | 9,240 | |
| Depreciation expense | 11,165 | |
| Interest expense | 31,171 | |
| Loss on inventory | 16,000 | |
| Utilities expense | 33,571 | |
| Impairment loss expense | 5,000 | |
| Income taxes expense | 37,221 | |
| Total | 2,093,782 | 2,093,782 |
In: Accounting
Aldovar Company produces a variety of chemicals. One division makes reagents for laboratories. The division's projected income statement for the coming year is: Sales (203,000 units @ $70) $14,210,000 Total variable cost 8,120,000 Contribution margin $6,090,000 Total fixed cost 4,945,500 Operating income $1,144,500 Required: 1. Compute the contribution margin per unit, and calculate the break-even point in units. Calculate the contribution margin ratio and use it to calculate the break-even sales revenue. (Note: Round contribution margin ratio to four significant digits, and round the break-even sales revenue to the nearest dollar.) Unit contribution margin $ Break-even point in units Contribution margin ratio Break-even sales revenue $ 2. The divisional manager has decided to increase the advertising budget by $250,000. This will increase sales revenues by $1 million. By how much will operating income increase or decrease as a result of this action? Use your answers from part 1 to determine the amountSuppose sales revenues exceed the estimated amount on the income statement by $1,500,000. Without preparing a new income statement, by how much are profits underestimated? Use your answers from part 1 to determine the amount
In: Accounting
The following are selected ledger accounts of Monty Corporation
at December 31, 2017.
| Cash | $188,580 | Salaries and wages expense (sales) | $287,580 | |||
| Inventory | 538,580 | Salaries and wages expense (office) | 349,580 | |||
| Sales revenue | 4,278,580 | Purchase returns | 18,580 | |||
| Unearned sales revenue | 120,580 | Sales returns and allowances | 82,580 | |||
| Purchases | 2,789,580 | Freight-in | 75,580 | |||
| Sales discounts | 37,580 | Accounts receivable | 146,080 | |||
| Purchase discounts | 30,580 | Sales commissions | 86,580 | |||
| Selling expenses | 72,580 | Telephone and Internet expense (sales) | 20,580 | |||
| Accounting and legal services | 36,580 | Utilities expense (office) | 35,580 | |||
| Insurance expense (office) | 27,580 | Miscellaneous office expenses | 11,580 | |||
| Advertising expense | 57,580 | Rent revenue | 243,580 | |||
| Delivery expense | 96,580 | Casualty loss (before tax) | 73,580 | |||
| Depreciation expense (office equipment) | 51,580 | Interest expense | 179,580 | |||
| Depreciation expense (sales equipment) | 39,580 | Common stock ($10 par) | 903,580 |
Monty’s effective tax rate on all items is 34%. A physical
inventory indicates that the ending inventory is $689,580.
Prepare a condensed 2017 income statement for Monty Corporation.
(Round earnings per share to 2 decimal places, e.g.
1.48.)
In: Accounting
Cash Budget
Wilson's Retail Company is planning a cash budget for the next
three months. Estimated sales revenue is as follows:
| Month | Sales Revenue | Month | Sales Revenue |
|---|---|---|---|
| January | $300,000 | March | $200,000 |
| February | 245,000 | April | 155,000 |
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 $40,000 per month and are paid during the month
incurred. The cash balance on February 1 is estimated to be
$30,000.
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.
| Wilson's Retail
Company Cash Budgets February, March, and April |
|||
|---|---|---|---|
| February | March | April | |
| Cash balance, beginning | $Answer | $Answer | $Answer |
| Total Cash receipts | Answer | Answer | Answer |
| Cash available | Answer | Answer | Answer |
| Total disbursements | Answer | Answer | Answer |
| Cash balance, ending | $Answer | $Answer | $Answer |
In: Accounting
Profitability Analysis
Assume Strands, a local hair salon, provides cuts, perms, and
hairstyling services. Annual fixed costs are $150,000, and variable
costs are 40 percent of sales revenue. Last year's revenues totaled
$300,000.
(a) Determine its break-even point in sales dollars.
$Answer 375,000 wrong
(b) Determine last year's margin of safety in sales dollars.
$Answer 75,000 wrong
(c) Determine the sales volume required for an annual profit of
$80,000.
Round your answer to the nearest dollar.
$Answer 316,667 wrong
Multiple Product Planning with Taxes
In the year 2017, Pyramid Consulting had the following contribution
income statement:
| PYRAMID CONSULTING Contribution Income Statement For the Year 2017 |
||
|---|---|---|
| Sales revenue | $ 1,300,000 | |
| Variable costs | ||
| Cost of services | $ 420,000 | |
| Selling and administrative | 200,000 | (620,000) |
| Contribution margin | 680,000 | |
| Fixed Costs -selling and administrative | (285,000) | |
| Before-tax profit | 395,000 | |
| Income taxes (36%) | (142,200) | |
| After-tax profit | $ 252,800 | |
D) What is the break-even point in sales revenue if management makes a decision that increases fixed costs by $57,000?
Use rounded contribution margin ratio (2 decimal places) for
your calculation.
$ 657,692 wrong
In: Accounting
Exercise 4-11
The following are selected ledger accounts of Skysong Corporation at December 31, 2017.
| Cash | $189,090 | Salaries and wages expense (sales) | $288,090 | |||
| Inventory | 539,090 | Salaries and wages expense (office) | 350,090 | |||
| Sales revenue | 4,279,090 | Purchase returns | 19,090 | |||
| Unearned sales revenue | 121,090 | Sales returns and allowances | 83,090 | |||
| Purchases | 2,790,090 | Freight-in | 76,090 | |||
| Sales discounts | 38,090 | Accounts receivable | 146,590 | |||
| Purchase discounts | 31,090 | Sales commissions | 87,090 | |||
| Selling expenses | 73,090 | Telephone and Internet expense (sales) | 21,090 | |||
| Accounting and legal services | 37,090 | Utilities expense (office) | 36,090 | |||
| Insurance expense (office) | 28,090 | Miscellaneous office expenses | 12,090 | |||
| Advertising expense | 58,090 | Rent revenue | 244,090 | |||
| Delivery expense | 97,090 | Casualty loss (before tax) | 74,090 | |||
| Depreciation expense (office equipment) | 52,090 | Interest expense | 180,090 | |||
| Depreciation expense (sales equipment) | 40,090 | Common stock ($10 par) | 904,090 |
Skysong’s effective tax rate on all items is 34%. A physical
inventory indicates that the ending inventory is $690,090.
Prepare a condensed 2017 income statement for Skysong Corporation.
(Round earnings per share to 2 decimal places, e.g.
1.48.)
In: Accounting
WHen starting a small staffing/recruiting firm decide how many sales (in units) you would make in a year (factoring in all decisions made so far--target market, competition, etc.).What is your gross revenue projection for the year? (unit price x units sold = revenue) 2. There are fixed costs to consider. Give some basic examples of fixed cost expense categories for a business such as yours. Estimate what the associated fixed cost expenses will be on an annual basis for your venture. What is this figure? 3. There are variable costs to consider. Give some basic examples of variable cost expense categories for a business such as yours. Estimate what the associated variable cost expenses will be on a per-unit produced/sold basis. Based on sales projections in #1 above, what then is the total variable cost expenses for the year? 4. Combine total fixed costs and total variable costs. This is your total expenses. What is this figure? 5. Figure your net profit from gross revenue minus total expenses. What is this figure? 6. What is your break-even point in dollars? What is your break-even point in units sold?
In: Finance
Q1) A monopolist will choose to increase output when
Group of answer choices
at the present level of output, marginal revenue exceeds marginal cost.
market price increases.
the demand curve shifts to the left.
at all levels of output, marginal cost increases.
Q2) The deadweight loss that arises from a monopoly is a consequence of the fact that the monopoly
Group of answer choices
earns positive profits.
price is the same as average revenue.
price equals marginal revenue.
quantity is lower than the socially-optimal quantity.
Q3) The concert promoters of a heavy-metal band, WeR2Loud, know that there are two types of concert-goers: die-hard fans and casual fans. For a particular WeR2Loud concert, there are 1,000 die-hard fans who will pay $150 for a ticket and 500 casual fans who will pay $50 for a ticket. There are 1,500 seats available at the concert venue. Suppose the cost of putting on the concert is $50,000, which includes the cost of the band, lighting, security, etc.
Refer to Scenario 15-6. How much additional profit can the
concert promoters earn by charging each customer their willingness
to pay relative to charging a flat price of $150 per
ticket?
Group of answer choices
$100,000
$50,000
$25,000
$75,000
In: Economics