Sutton Pond, Inc.'s, unadjusted and adjusted trial balances at June 30, 2016, follow. Requirements 1. Make the adjusting entries that account for the differences between the two trial balances. 2. Compute Sutton Pond Rentals' total assets, total liabilities, net income, and total equity. Sutton Pond, Inc.'s Trial Balance Sheet June 30, 2016 Trial Balance Adjusted Trial Balance Account Debit Credit Debit Credit Cash $ 8,300 $ 8,300 Accounts receivable 6,800 6,840 Interest receivable 700 Note receivable 4,800 4,800 Supplies 1,800 500 Prepaid Insurance 2,900 2,000 Building 68,000 68,000 Accumulated Depreciation (Building) $ 7,800 $ 9,300 Accounts payable 6,900 6,900 Wages payable 870 Unearned Rental Revenue 1,500 1,000 Common Stock 15,000 15,000 Retained Earnings 41,000 41,000 Dividends 4,000 4,000 Rental Revenue 25,100 25,640 Interest Revenue 1,000 1,700 Depreciation (Building) 1,500 Supplies Expense 1,300 Utilities Expense 300 300 Wage Expense 1,000 1,870 Property Tax Expense 400 400 Insurance Expense _____ ______ 900 _____ Total $ 98,300 $ 98,300 $ 101,410 $ 101,410 Please solve asap. Thank you so much. Having each step explained would be most helpful as well.

Fairfax Paint operates stores in Virginia. The firm is evaluating the Vienna project, which would involve opening a new store in Vienna. During year 1, Fairfax Paint would have total revenue of 362,000 dollars and total costs of 280,000 dollars if it pursues the Vienna project, and the firm would have total revenue of 310,000 dollars and total costs of 253,000 if it does not pursue the Vienna project. Depreciation taken by the firm would be 65,000 dollars if the firm pursues the project and 45,000 dollars if the firm does not pursue the project. The tax rate is 45 percent. What is the relevant operating cash flow (OCF) for year 1 of the Vienna project that Fairfax Paint should use in its NPV analysis of the Vienna project? What if the project would require an initial investment in equipment of 790,000 dollars that would be depreciated using MACRS where the depreciation rates in years 1, 2, 3, and 4 are 40 percent, 22 percent, 22 percent, and 16 percent, respectively. At the end of the project in 2 years, the equipment would be sold for an expected after-tax cash flow of 12,800 dollars. In year 2 of the project, relevant revenue associated with the project would be 311,800 dollars and relevant costs associated with the project would be 295,600 dollars. The tax rate is 40 percent. What is the relevant operating cash flow (OCF) associated with the project expected to be in year 2?

Question 1

Suppose a yacht dealer has five potential customers who each have a maximum willingness to pay of:
$15 million; $13 million; $11 million; $9 million; $7 million
The MARGINAL revenue (with no price discrimination; in millions of dollars) at the following prices are:
at a price of $15 million
at a price of $13 million
at a price of $11 million
at a price of $9 million
at a price of $7 million
*In answering this question, assume the price begins somewhere above $15 million (with zero sales) and is continually lowered to $7 million.*

QUESTION 2

If the yacht dealer wants to maximize TOTAL revenue, how much should he charge?

$15 million

$13 million

$11 million

$9 million

$7 million

QUESTION 3

Suppose the marginal cost of selling a yacht is $6 million. If the yacht dealer wants to maximize NET revenue, how much should he charge?

$15 million

$13 million

$11 million

$9 million

$7 million
1.5 points

QUESTION 4

Supposing only marginal (no fixed) costs, how many millions of dollars in profits would the yacht dealer make?


QUESTION 5

Now suppose that the yacht dealer can engage in perfect price discrimination, if this were the case (with no fixed costs), how much profit would the yacht dealer make?

PRACTICAL QUESTION   

Tiger Construction Ltd signs a contract on 1 May 2018 to build a theme park. The construction is scheduled to commence on 1 July 2018 and the estimated date of completion is 30 June 2021. The total contract price is $5m and the cost of the park is initially estimated at $4.5m. The following data relates to the construction period:

Assume that cost (an input measure) is used as the basis for assessing progress on the construction contract.

Required

Determine the percentage of completion for 2019, 2020 and 2021.              

Calculate revenue and gross profit for 2019, 2020 and 2021.                          

Using the percentage of completion method, provide the journal entries for 2019, 2020 and 2021.                                                                                                              

QUESTION 2

The list of accounts and balances for Stewart Car Servicing Pty Ltd for the year ended 30 June 2015 is presented below.

Required:

Prepare a Statement of Profit or Loss for the year.                                                                     

Prepare a Calculation of Retained Earnings for the year.                                                            

Prepare a classified Statement of Financial Position for the year.                                               

(Total marks for Question 2 = 17 marks)

On July 1, 2018, Gupta Corporation bought 30% of the outstanding common stock of VB Company for $170 million cash. At the date of acquisition of the stock, VB’s net assets had a total fair value of $490 million and a book value of $220 million. Of the $270 million difference, $50 million was attributable to the appreciated value of inventory that was sold during the last half of 2018, $160 million was attributable to buildings that had a remaining depreciable life of 10 years, and $60 million related to equipment that had a remaining depreciable life of 5 years. Between July 1, 2018, and December 31, 2018, VB earned net income of $60 million and declared and paid cash dividends of $50 million.

Required:
1. Prepare all appropriate journal entries related to the investment during 2018, assuming Gupta accounts for this investment by the equity method.
2. Determine the amounts to be reported by Gupta. (amounts in millions)

P5–5A Buono Adventures, which uses the perpetual inventory system, has the following account balances (in alphabetical order) on July 31, 2020:

Accounts Payable.......................................................................$ 21,600Accounts Receivable..................................................................23,200Accumulated Amortization—Equipment..............................64,600Cash..............................................................................................8,400Cost of Goods Sold.....................................................................687,000E. Buono, Capital........................................................................402,000E. Buono, Withdrawals..............................................................92,000Equipment..............................180,000Interest Earned..........................................................................4,000Inventory....................................................................................143,000Operating Expenses..................................................................355,000Sales Discounts..........................................................................10,300Sales Returns and Allowances................................................32,900Sales Revenue............................................................................1,045,200Supplies......................................................................................14,600Unearned Sales Revenue..........................................................9,000

NOTE: For simplicity, all operating expenses have been summarized in the account Operating Expenses.

Additional data at July 31, 2020:

A physical count of items showed $3,000 of supplies on hand. (Hint: Use the account Operating Expenses in the adjusting journal entry.)

An inventory count showed inventory on hand at July 31, 2020, of $140,000.

The equipment has an estimated useful life of eight years and is expected to have no scrap or residual value at the end of its life. (Hint: Use the account Operating Expenses in the adjusting journal entry.)

Unearned sales revenue of $5,600 was earned by July 31, 2020.

Required

Record all adjustments and closing entries that would be required on July 31, 2020.

Prepare the multi-step income statement and statement of owner’s equity for the year ended July 31, 2020, and the classified balance sheet in report format as at July 31, 2020.

Assume that the supply function for X is Q(s) = -50 + 5P.

Using this information, select the correct responses from the answers below. Note that multiple answers may be correct.

A.)

B.)

C.)

D.)

E.)

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:

Each T-shirt is expected to sell for $21.

The purchasing manager buys the T-shirts for $8 each.

The company needs to have enough T-shirts on hand at the end of each quarter to fill 31 percent of the next quarter’s sales demand.

Selling and administrative expenses are budgeted at $62,000 per quarter plus 18 percent of total sales revenue.

1. Determine budgeted sales revenue for each quarter.
Budgeted Sales Revenue  
Quarter1:

Quarter 2:

Quarter 3:

2. Determine budgeted cost of merchandise purchased for each quarter.
Budgeted Cost of Merchandise Purchased
Quarter1:

Quarter 2:

Quarter 3:

3. Determine budgeted cost of good sold for each quarter.
Budgeted Cost of Goods Sold
Quarter1:

Quarter 2:

Quarter 3:

4. Determine selling and administrative expenses for each quarter.

Budgeted Selling and Administrative Expenses

Quarter1:

Quarter 2:

Quarter 3:

Complete the budgeted income statement for each quarter.

The following transactions relate to Academy Towing Service. Assume the transactions for the purchase of the wrecker and any capital improvements occur on January 1 of each year. 2016 1. Acquired $79,000 cash from the issue of common stock. 2. Purchased a used wrecker for $41,000. It has an estimated useful life of three years and a $10,000 salvage value. 3. Paid sales tax on the wrecker of $5,000. 4. Collected $65,100 in towing fees. 5. Paid $12,900 for gasoline and oil. 6. Recorded straight-line depreciation on the wrecker for 2016. 7. Closed the revenue and expense accounts to Retained Earnings at the end of 2016. 2017 1. Paid for a tune-up for the wrecker’s engine, $1,800. 2. Bought four new tires, $2,150. 3. Collected $71,000 in towing fees. 4. Paid $18,900 for gasoline and oil. 5. Recorded straight-line depreciation for 2017. 6. Closed the revenue and expense accounts to Retained Earnings at the end of 2017. 2018 1. Paid to overhaul the wrecker’s engine, $5,700, which extended the life of the wrecker to a total of four years. The salvage value did not change. 2. Paid for gasoline and oil, $20,000. 3. Collected $74,000 in towing fees. 4. Recorded straight-line depreciation for 2018. 5. Closed the revenue and expense accounts at the end of 2018