Questions
Gibson Company makes a product that sells for $33 per unit. The company pays $23 per...

Gibson Company makes a product that sells for $33 per unit. The company pays $23 per unit for the variable costs of the product and incurs annual fixed costs of $95,000. Gibson expects to sell 22,600 units of product.

Margin of Safety. %

Zachary Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The growth expectations per quarter are 5 percent for Cummings Division, 3 percent for Springfield Division, and 7 percent for Douglas Division.

  1. Complete the sales budget by filling in the missing amounts.

  2. Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements.

Determine Gibson’s margin of safety expressed as a percentage. (Round your answer to 2 decimal places (i.e., .2345 should be entered as 23.45).)

Complete the sales budget by filling in the missing amounts. (Round your final answers to the nearest whole dollar amount.)
Division First Quarter Second Quarter Third Quarter Fourth Quarter
Cummings Division $110,000
Springfield Division 310,000
Douglas Division 200,000

Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements. (Round intermediate calculations and final answers to the nearest whole dollar amount.)
First Quarter Second Quarter Third Quarter Fourth Quarter
Sales revenue

In: Accounting

Core Constructions Company Trial Balance for the Month Ending December 31, 2019 Account Title Debit Credit...

Core Constructions Company
Trial Balance
for the Month Ending December 31, 2019
Account Title Debit Credit
100-Cash 600
101-Accounts Receivable 300
102-Supplies 12,500
103-Prepaid Rent 24,000
150-Computer (Cost) 125,000
151-Accumulated Depreciation 1,500
200-Accounts Payable 200
201-Unearned Revenue 60,000
202-Salaries & Wages Payable 0
300-Owner's Capital 35,600
301-Owner's Drawings 5,500
400-Sales Revenue 200,000
500-Telephone Expense 3,600
601-Salaries & Wages Expense 125,800
650-Supplies Expense 0
750-Depreciation Expense 0
790-Rent Expense 0
297,300 297,300
Adjustments:
1. The Supplies balance on December 31st is $5,500.
2. The Prepaid Rent is for 24-months
3. December depreciation expense is $500.
4. $40,000 of Unerned Revenue was used up in December.
5. Receipts for services completed in December for $15,000 was
    collected on January 4, 2020.
6. The December 2019 telephone bill for $300 was received and
     paid on January 5, 2020.
7. The weekly salary for $6,000 will be paid on Friday, January 2nd.
Please write in the Diagonal Box the balances for the following:
a. Salaries & Wages Payable
b. Net Profit
(Please do not show your work, only the answer)

In: Accounting

QUESTION 1 Which of the following is the correct reversing entry?

 

QUESTION 1

Which of the following is the correct reversing entry?

   

Depreciation Expense        1550
   Accumulated Depreciation          1550
   

Interest Revenue            2350
   Interest Receivable               2350
   

Salary Expense              1980
   Salary Payable                    1980
   

Income Tax Expense          2500
   Income Tax Payable                2500

  

QUESTION 2

Prior to preparing the organization's financial statements, the accountant prepares

   

a balance sheet
   

a post-closing trial balance
   

an adjusted trial balance
   

a closed trial balance

QUESTION 3

On April 1, 2014, Miller Company paid $6,280 for a two-year insurance policy. On that date, the company charged an asset account. The correct December 31, 2014, adjusting entry would be

   

Prepaid Insurance        3,140
   Insurance Expense              3,140
   

Insurance Expense       2,355
   Prepaid Insurance             2,355
   

Prepaid Insurance        2,355
   Insurance Expense             2,355
   

Insurance Expense        3,925
   Prepaid Insurance              3,925

QUESTION 4

Which of the following rules is incorrect?

   

The accounting equation must always remain in balance.
   

Asset accounts are increased by debit entries and decreased by credit entries.
   

Expense accounts normally have debit balances.
   

Common stock accounts are increased by debit entries and decreased by credit entries.

QUESTION 5

Which of the following is a permanent account?

   

Dividend Revenue
   

Allowance for Doubtful Accounts
   

Interest Expense
   

Sales Revenue

In: Accounting

The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.


Exercise 3-19A Record closing entries and prepare a post-closing trial balance (LO3-6, 3-7)

The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
  

Accounts Debit   Credit  
Cash $ 10,400            
Accounts Receivable   134,000            
Prepaid Rent   4,400            
Supplies   22,000            
Equipment   240,000            
Accumulated Depreciation         $ 119,000    
Accounts Payable           10,400    
Salaries Payable           9,400    
Interest Payable           3,400    
Notes Payable (due in two years)           24,000    
Common Stock           140,000    
Retained Earnings           44,000    
Service Revenue           340,000    
Salaries Expense   240,000            
Rent Expense   12,000            
Depreciation Expense   24,000            
Interest Expense   3,400            
Totals $ 690,200     $ 690,200    
 

Exercise 3-19A Part 1

Required:

1. Record the necessary closing entries at December 31, 2021.

A) record the entry to close revenue accounts

B) record the entry to close the expense accounts

(If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Note, the journal account entries are as follows:

no journal entry required

accounts payable

accounts receivable

accumulated depreciation

cash

common stock

depreciation expense

equipment

interest expense

interest payable

notes payable

prepaid rent

rent expense

retained earnings

salaries expense

salaries payable

service revenue

supplies

In: Accounting

Ruby Ruth Hospital had the following transactions during the year ended December 31, 2018. Prepare journal...

Ruby Ruth Hospital had the following transactions during the year ended December 31, 2018. Prepare journal entries to record these transactions, and state the amount that Ruby Ruth Hospital would report as patient service revenue in its operating statement.

1. The hospital provided services to patients insured by third-party payer A amounting to $5 million at its established billing rates. The hospital’s prospective billing arrangement with this third party stipulates payment to the hospital of 70 percent of its established rates for services performed. All billings were paid during the year.

2.The hospital provided services to patients insured by third-party payer B amounting to $3 million at its established billing rates. Its retrospective billing arrangement with this third party stipulates that the hospital should receive payment at an interim rate of 90 percent of its established rates, subject to retrospective adjustment. based on agreed-upon allowable costs. By year-end, B had paid all the billings. Before issuing its financial statements, the hospital estimated that the probable amount it will need to refund to B is $250,000, based on allowable costs.

4. The hospital provided services to charity patients amounting to $1 million at its established billing rates.

What amount would be Ruby Ruth Hospital report as patient service revenue on it's operating statement?
$ net patient service revenue

In: Accounting

Presented below are the amounts of assets and liabilities of BPA, Inc. as of December 31,...

Presented below are the amounts of assets and liabilities of BPA, Inc. as of December 31, 2017, and revenues and expenses of the company for the year ended on that date.

Sales

$ 18,000,000

Cost of Goods Sold

$ 13,500,000

Wages Expense

$   2,700,000

Common Stock

$   2,250,000

Cash

$   2,059,650

Building

$   1,350,000

Mortgage Payable - Long Term

$   1,012,500

Notes Payable - Long Term

$      675,000

Marketing Expense

$      607,500

Accounts Receivable

$      517,500

Equipment

$      450,000

Accounts Payable

$      427,500

Income Tax Expense

$      405,000

Wages Payable

$      382,500

Dividends

$      337,500

Inventory

$      270,000

Land

$      225,000

Accumulated Depreciation

$      202,500

Utilities Expense

$      162,000

Rent Expense

$      112,500

Short-term Investments

$      112,500

Depreciation Expense

$        78,750

Retained Earnings Balance 12-31-16

$        67,500

Rent Revenue

$        67,500

Interest Revenue

$        63,000

Supplies

$        56,250

Insurance Expense

$        54,000

Delivery Expense

$        38,250

Prepaid Insurance

$        36,000

Supplies Expense

$        29,250

Interest Expense

$        27,000

Prepaid Rent

$        27,000

Property Tax Expense

$        13,500

Interest Payable

$          9,000

Miscellaneous Revenue

$          6,750

Taxes Payable

$          5,400

Requirements:

  1. Prepare the company's multi-step income statement for the year ended December 31, 2017.
  2. Prepare the company's statement of retained earnings for the year ended December 31, 2017.
  3. Prepare the company's classified balance sheet at December 31, 2017.

In: Accounting

Requirement 2: Revise the data in your worksheet to reflect the results for the subsequent period...

Requirement 2:

Revise the data in your worksheet to reflect the results for the subsequent period as shown below:

A

B

C

D

E

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20
Chapter 9: Applying Excel
Data
Revenue $16.50 q
Cost of ingredients $6.25 q
Wages and salaries $10,400
Utilities $800 + $0.20 q
Rent $2,200
Miscellaneous $600 + $0.80 q
Actual results:
Revenue $29,730
Cost of ingredients $11,460
Wages and salaries $10,250
Utilities $1,155
Rent $2,200
Miscellaneous $2,085
Planning budget activity 1,700 meals served
Actual activity 1,800 meals served

a. What is the activity variance for revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

b. What is the spending variance for the cost of ingredients? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

c. What is spending variance for wages and salaries? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

d. What is spending variance for total expenses? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

In: Finance

For each item, indicate the account and the related amount to be reported as a current liability on the Big Wave Marine balance sheet at December 31.

For each item, indicate the account and the related amount to be reported as a current liability on the Big Wave Marine balance sheet at December 31. Account Amount a. Account Amount b. Account Amount c. Account Amount d. Account Amount e. Choose from any list or enter any number in the input fields and then continue to the next question. More Info 

a. December revenue totaled $ 150 comma 000; and, in addition, Big Wave collected sales tax of 5%. The tax amount will be sent to the state of North Carolina early in January. 

b. On August 31, Big Wave signed a six-month, 4% note payable to purchase a boat costing $ 92 comma 000. The note requires payment of principal and interest at maturity. 

c. On August 31, Big Wave received cash of $ 5 comma 000 in advance for service revenue. This revenue will be earned evenly over six months. 

d. Revenues of $ 800 comma 000 were covered by Big Wave's service warranty. At January 1, accrued warranty payable was $ 11 comma 300. During the year, Big Wave recorded warranty expense of $ 32 comma 000 and paid warranty claims of $ 34 comma 300. 

e. Big Wave owes $ 75 comma 000 on a long-term note payable. At December 31, 9 % interest for the year plus $ 35 comma 000 of this principal are payable within one year.

In: Accounting

Question1: The following are account balances of Gadgets Com Pty, Ltd., a company selling gadgets, at...

Question1:

The following are account balances of Gadgets Com Pty, Ltd., a company selling gadgets, at the end of financial year 2020

Accounts

2020 ($000)

Cash at bank

168

Inventory

600

Accounts receivable

450

Land

1,516

Buildings &Equipment

2,169

Accumulated depreciation

350

Accounts payable

900

Notes payable (due in 12 months)

250

Bank loan

2,000

Share capital

866

Retained earnings (Ending Balance)

537

Sales

5,500

Cost of goods sold

2,100

Finance costs

250

Sales salaries expense

425

Sales utilities expenses

35

Office salaries expense

825

Office utilities expenses

125

Depreciation expense

100

Income Tax

492

           

Required:

  1. Prepare a classified Income Statement
  2. Prepare a classified Balance Sheet
  3. Incorporating the additional information below, calculate the Gross Profit Margin (GPM) and the Profit Margin (PM) ratios for GadgetsCom and provide your comment on the company’s profitability and efficiency.

Additional Information

The manager was pleased with the increased sales revenue in the current year. Last year’s ratios are GPM 55% and PM 23%. The following are ratio formula used by the company:

Ratio

Method of calculation

Gross Profit Margin

Gross Profit     x 100    =   x%

                                     Sales revenue

Profit Margin

Profit After Tax     x 100    =   x%

                                   Sales revenue

In: Accounting

Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet: Current...

Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet:

Current assets:
Accounts receivable, net of $26,000 in allowance for
uncollectible accounts		 $ 228,000
Interest receivable 7,850
Notes receivable 280,000


Additional Information:

  1. The notes receivable account consists of two notes, a $55,000 note and a $225,000 note. The $55,000 note is dated October 31, 2021, with principal and interest payable on October 31, 2022. The $225,000 note is dated June 30, 2021, with principal and 6% interest payable on June 30, 2022.
  2. During 2022, sales revenue totaled $1,360,000, $1,290,000 cash was collected from customers, and $24,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable.
  3. On March 31, 2022, the $225,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 8%. Chamberlain accounts for the discounting as a sale.


Required:
1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain’s 2022 income statement?
2. & 3. What amounts will appear in the 2022 year-end balance sheet for accounts receivable and Calculate the receivables turnover ratio for 2022.

In: Accounting