Required information
[The following information applies to the questions
displayed below.]
In 2021, the Westgate Construction Company entered into a contract
to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2023. Information related to the contract is
as follows:
| 2021 | 2022 | 2023 | |||||||
| Cost incurred during the year | $ | 2,204,000 | $ | 3,192,000 | $ | 2,424,400 | |||
| Estimated costs to complete as of year-end | 5,396,000 | 2,204,000 | 0 | ||||||
| Billings during the year | 2,140,000 | 3,256,000 | 4,604,000 | ||||||
| Cash collections during the year | 1,870,000 | 3,200,000 | 4,930,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Required:
1. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years.
(Do not round intermediate calculations. Loss amounts
should be indicated with a minus sign.)
In: Accounting
The following accounts and balances were drawn from the records of Barker Company at December 31, 2018:
| Supplies | $ | 690 | Beginning retained earnings | $ | 19,000 | ||||
| Cash flow from investing act. | (6,400 | ) | Cash flow from financing act. | (5,700 | ) | ||||
| Prepaid insurance | 2,600 | Rent expense | 2,800 | ||||||
| Service revenue | 78,000 | Dividends | 4,900 | ||||||
| Other operating expenses | 42,000 | Cash | 10,900 | ||||||
| Supplies expense | 290 | Accounts receivable | 19,000 | ||||||
| Insurance expense | 1,000 | Prepaid rent | 5,000 | ||||||
| Beginning common stock | 1,100 | Unearned revenue | 6,400 | ||||||
| Cash flow from operating act. | 7,500 | Land | 38,000 | ||||||
| Common stock issued | 5,300 | Accounts payable | 17,380 |
Please prepare the income statement, stockholder equity, balance sheet and statement of cash flow
In: Accounting
compared with firms in a perfectly competitive industry, firms in a monopolistically competitive industry are inefficient because thery
a. do not lower the product price if put prices fall
b. waste resources by producing an excess amount of output
c. restrict their output levels to maximiz profirs
d make economic profits in the long run.
which of the following statement is true about a firm in a perfectly competitive market
a. the demand for its product is a downward sloping curve, because the law of demand states as price increases quantity demandedwill decrease.
b.the firm will earn zero economic profit in the log run.
c. advertising is vert improtant tool for this business if it
wishes to increase asles revenue
d. the marginal revenue the firm earn from each additional unit
will be different than the price it earns.
In: Economics
Breakeven, Target Profit, Margin of Safety, Operating Leverage
Pike Street Taffy makes and sells taffy in a variety of flavours in a shop located in the local public market. Data for a recent week are as follows:
|
Revenue (2,000 kgs @ $4.80 per kg) |
$9,600 |
|
|
Cost of ingredients |
$3,200 |
|
|
Rent |
800 |
|
|
Wages |
4,800 |
8,800 |
|
Pretax income |
800 |
|
|
Taxes (20%) |
160 |
|
|
After-tax income |
$ 640 |
All employees work standard shifts, no matter how much taffy is produced or sold.
REQUIRED
A.
Calculate the breakeven point in units and in revenue.
B.
Calculate the number of units and the amount of revenues that would be needed for after-tax income of $3,000.
C.
Calculate the margin of safety in units and the margin of safety percentage.
D.
Calculate the degree of operating leverage.
In: Accounting
Multiple-step income statement (show your work)
Presented below is information related to Donaldson Corp., for the year 2017.
Net sales $1,950,000
Cost of goods sold 1,200,000
Selling expenses 95,000
Administrative expenses 70,000
Dividend revenue 30,000
Interest revenue 20,000
Interest expense 45,000
Write-off of goodwill due to impairment 75,000
Depreciation expense omitted in 2015 105,000
Dividends declared 120,000
Effect on prior years of change in accounting principle (credit) 220,000
Loss from operations of discontinued component of business 240,000
Gain from disposal of component of business 300,000
Federal tax rate of 30% on all items
Instructions
Prepare a multiple-step income statement for 2017. Assume the 200,000 shares of common stock were outstanding during 2017.
In: Accounting
A. Post the Transaction to T- Accounts ( see example on exercise 2-10 for T-Accounts)
B. Prepare: A Trial Balance at August 31 2017
Demonstration Problem (see example on 76 Campus Trial Balance Format)
|
Date |
Account Title & Explanation |
Ref. |
Debit |
Credit |
|
2017 Aug. 1 |
Cash Owner’s Capital (Owner’s investment of cash in business) |
5,000 |
5,000 |
|
|
10 |
Cash Service Revenue (Received cash for services performed) |
2,000 |
2,000 |
|
|
12 |
Equipment Cash Notes Payable (Purchased equipment for cash note payable) |
5,000 |
2,300 2,700 |
|
|
25 |
Accounts Receivable Service Revenue (Billed clients for services performed) |
1,700 |
1,700 |
|
|
31 |
Cash Accounts Receivable (Receipt of cash on account) |
900 |
900 |
In: Accounting
|
DavidAdvertising Trial Balance December 31, 2014 |
|||
|
Account Title |
Dr. |
Cr. |
|
|
Cash |
$7,600 |
||
|
AccountsReceivable |
7,200 |
||
|
Supplies |
4,700 |
||
|
PrepaidInsurance |
3,600 |
||
|
Prepaid Rent |
2,400 |
||
|
Equipment |
24,000 |
||
|
Accumulateddepreciation-Equipment |
$6,500 |
||
|
Accounts Payable |
4,400 |
||
|
Notes Payable |
9,000 |
||
|
Unearned Revenue |
3,600 |
||
|
Share Capital |
20,000 |
||
|
Retained Earnings |
-0- |
||
|
Dividends |
2,500 |
||
|
Service Revenue |
14,000 |
||
|
Salaries Expense |
5,200 |
||
|
Utilities Expense |
300 |
||
|
$57,500 |
$57,500 |
$57500 |
|
After preparing the adjusting entries (given earlier), posting them and preparing an adjusted trial balance.
•Instructions, from the adjusted trial balance:
5. Prepare the closing entries at December 31, 2014.
6. Post the closing entries.
7. Prepare a post-closing trial balance
In: Accounting
Journalize transactions from account data and prepare a trial balance.
(LO 2, 4)
The T-accounts below summarize the ledger of Daggett Landscaping Company at the end of the first month of operations.
| Cash | No. 101 | Unearned Service Revenue | No. 209 | ||||
|---|---|---|---|---|---|---|---|
| 4/1 | 12,000 | 4/15 | 1,300 | 4/30 | 1,000 | ||
| 4/12 | 900 | 4/25 | 1,500 | ||||
| 4/29 | 400 | ||||||
| 4/30 | 1,000 | ||||||
| Accounts Receivable | No. 112 | Owner's Capital | No. 301 | ||||
| 4/7 | 3,200 | 4/29 | 400 | 4/1 | 12,000 | ||
| Supplies | No. 126 | Service Revenue | No. 400 | ||||
| 4/4 | 1,800 | 4/7 | 3,200 | ||||
| 4/12 | 900 | ||||||
| Accounts Payable | No. 201 | Salaries and Wages Expense | No. 726 | ||||
| 4/25 | 1,500 | 4/4 | 1,800 | 4/15 | 1,300 | ||
In: Accounting
Two firms are in a market and are able to compete on quantity, as is typical in a Cournot Oligopoly. The market demand curve is Q = 30 – 3P. The market marginal revenue curve is: MR= 10-(2/3)Q
The two firms have different marginal costs. Firm A has a marginal cost of $6, while Firm B has a marginal cost of $9.
(a) Find the demand curve that Firm A faces.
(b) Assume that Firm A knows that Firm B will produce 2 units of output. They are not cooperating with each other. How much output should Firm A produce? The marginal revenue curve
associated with the demand function you found in question 1a is: MRA = 10 - (2/3)qA - (1/3)qB
(c) What will be the market price of this good?
In: Economics
The adjusted 12/31/22 Trial Balance for Sirius Corporation included these accounts and balances. All accounts have a normal balance. No other accounts existed.
|
Retained Earnings (1/1/22) |
$161 |
Salaries Expense |
$170 |
|
|
Accounts Payable |
$25 |
Common Stock |
$50 |
|
|
Cash |
$75 |
Accounts Receivable |
$28 |
|
|
Unearned Service Revenue |
$21 |
Salaries Payable |
$9 |
|
|
Dividends |
$25 |
Prepaid Rent |
$8 |
|
|
Depreciation Expense: Equip. |
$40 |
Cleaning Supplies |
$15 |
|
|
Service Revenue |
$350 |
Accumulated Depreciation: Equip. |
$120 |
|
|
Cleaning Supplies Expense |
$95 |
Equipment |
$280 |
In: Accounting