Questions
Sylvia Sweet opened Sweet Angels, Inc. on June 1, 2020. During June, the following transactions were...

Sylvia Sweet opened Sweet Angels, Inc. on June 1, 2020. During June, the following transactions were completed:

June 1

Issued 5,000 shares of Cleaning Angels common stock for $13,000. Each share has a $1.00 par.

       2

Borrowed $7,500 on a 2-year, 8% note payable.

       2

Paid $9,000 to purchase used floor and window cleaning equipment from a company going out of business ($4,820 was for the floor equipment and $4,180 for the window equipment).

       2

Paid $250 for June for Internet and phone service.

       3

Purchased cleaning supplies for $980 on account.

       4

Hired 4 employees. Each will be paid $450 per 5-day work week (Monday-Friday). Employees will begin working on Monday, June 8th.

    4

Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Sylvia sold the window cleaning equipment for $4,000 cash.

       4

Obtained insurance coverage for $9,840 per year. Coverage runs from June 4, 2020, through June 04, 2021. Sylvia paid $2,460 cash for the first quarter of coverage.

   8

Paid $2.80 per share to buy 300 shares of Cleaning Angels, Inc common stock from a shareholder who disagreed with management goals. The shares will be held as treasury stock.

   12

Paid $300 on amount owed on cleaning supplies.

   15

Paid for employees’ wages for the week of June 8-12.

     15

Billed customers $3,600 for cleaning services performed through June 12, 2020.

     17

Received $600 from a customer for 4 weeks of cleaning services to begin on June 22, 2020.

     22

Billed customers $4,300 for cleaning services performed through June 19.

     22

Paid employees’ wages for the week of June 15-19

     23

Collected $2,400 cash from customers billed on June 15.

     25

Paid $250 for Internet and phone services for July.

     29

Declared and paid a cash dividend of $0.08 per share.

29

Collected $3,100 from customers billed on June 15 & 22.

29

Billed customers $3,900 for cleaning services performed through June 26th

29

Paid employees’ wages for the week of June 22-26

     30

Received notice that a customer who was billed $150 for services performed June 10th has filed for bankruptcy. Sweet Angels, Inc does not expect to collect any portion of this outstanding receivable. (Sweet Angels will follow the GAAP Guidelines for uncollectible accounts.)

Adjustment Data:

A. Services performed for customers through June 30, 2020, but unbilled and uncollected were $1,500.

B. Cleaning Angels used the allowance method to estimate bad debts. Cleaning Angels estimates that 3% of its month-end receivables will not be collected.

C. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 5 years, and $400 salvage value.

D. Record 1 month of insurance expense.

E. An inventory count shows $350 of supplies on hand at June 30th.

F. Record services performed for the customer who paid in advance on June 17th.

G, Accrue for wages owed through June 30, 2020.

H. Accrue for interest expense for one month.

I. Sylvia estimates a 20% income tax rate. (Hint: Prepare an income statement up to “income before taxes” to help with the income tax calculation.)

Instructions:

  1. Journalize the June transactions.
  2. Post to ledger accounts.
  3. Prepare a Trial Balance as of June 30, 2020.
  4. Journalize the adjusting entries. (Round all amounts to whole dollars.)
  5. Post the adjusting entries to the ledger accounts.
  6. Prepare an Adjusted Trial Balance as of June 30, 2020.
  7. Journalize the closing entries.
  8. Post the Closing Entries to the ledger accounts.
  9. Prepare a Post-Closing Trial Balance on June 30, 2020

In: Accounting

Information concerning Cheyenne Corporation’s intangible assets is as follows. 1. On January 1, 2020, Cheyenne signed...

Information concerning Cheyenne Corporation’s intangible assets is as follows.
1. On January 1, 2020, Cheyenne signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $50,000. Of this amount, $10,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $10,000 each, beginning January 1, 2021. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 1, 2020, of the 4 annual payments discounted at 10% (the implicit rate for a loan of this type) is $31,700. The agreement also provides that 4% of the revenue from the franchise must be paid to the franchisor annually. Cheyenne’s revenue from the franchise for 2020 was $900,000. Cheyenne estimates the useful life of the franchise to be 10 years. (Hint: You may want to refer to Chapter 18 to determine the proper accounting treatment for the franchise fee and payments.)
2. Cheyenne incurred $60,000 of experimental and development costs in its laboratory to develop a patent that was granted on January 2, 2020. Legal fees and other costs associated with registration of the patent totaled $22,400. Cheyenne estimates that the useful life of the patent will be 8 years.
3. A trademark was purchased from Shanghai Company for $44,000 on July 1, 2017. Expenditures for successful litigation in defense of the trademark totaling $11,900 were paid on July 1, 2020. Cheyenne estimates that the useful life of the trademark will be 20 years from the date of acquisition.

(a)

Your answer is correct.
Prepare a schedule showing the intangible assets section of Cheyenne’s balance sheet at December 31, 2020.
CHEYENNE CORPORATION
Intangible Assets
choose the accounting period

For the Year Ended December 31, 2020December 31, 2020For the Month Ended December 31, 2020
select a balance sheet item

Patent AmortizationTrademark AmortizationTotal Intangible AssetsPatentTrademarkLegal FeesFranchise FeeFranchiseFranchise AmortizationResearch and Development Costs

 $enter a dollar amount
select a balance sheet item

Franchise AmortizationPatentTotal Intangible AssetsTrademarkResearch and Development CostsTrademark AmortizationLegal FeesPatent AmortizationFranchiseFranchise Fee

 enter a dollar amount
select a balance sheet item

Trademark AmortizationResearch and Development CostsPatent AmortizationLegal FeesPatentFranchise FeeTotal Intangible AssetsFranchise AmortizationTrademarkFranchise

 enter a dollar amount
select a closing section name

        Patent    Trademark    Franchise Amortization    Legal Fees    Total Intangible Assets    Patent Amortization    Franchise Fee    Research and Development Costs    Trademark Amortization    Franchise

 $enter a total amount for this section

SHOW SOLUTION

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT
Attempts: 3 of 5 used

(b)

Your answer is partially correct. Try again.
Prepare a schedule showing all expenses resulting from the transactions that would appear on Cheyenne’s income statement for the year ended December 31, 2020.
CHEYENNE CORPORATION
Expenses Resulting from Selected Intangible Assets Transactions
choose the accounting period

December 31, 2020For the Year Ended December 31, 2020For the Month Ended December 31, 2020
select a balance sheet item

Franchise AmortizationResearch and Development CostsTotal Intangible AssetsInterest ExpensePatent AmortizationTrademark AmortizationFranchisePatentTrademarkLegal FeesFranchise Fee

 $enter a dollar amount
select a balance sheet item

Research and Development CostsFranchise AmortizationTotal Intangible AssetsPatent AmortizationTrademark AmortizationFranchise FeePatentInterest ExpenseFranchiseTrademarkLegal Fees

 enter a dollar amount
select a balance sheet item

Interest ExpenseFranchise FeeTotal Intangible AssetsLegal FeesPatentTrademark AmortizationFranchise AmortizationPatent AmortizationTrademarkFranchiseResearch and Development Costs

 enter a dollar amount
select a balance sheet item

Franchise AmortizationTrademarkResearch and Development CostsFranchise FeeTotal Intangible AssetsPatent AmortizationTrademark AmortizationInterest ExpensePatentFranchiseLegal Fees

 enter a dollar amount
select a balance sheet item

Trademark AmortizationTrademarkPatent AmortizationTotal Intangible AssetsInterest ExpenseFranchiseResearch and Development CostsPatentLegal FeesFranchise FeeFranchise Amortization

 enter a dollar amount
select a closing section name

    Total Intangible Assets    Patent    Trademark Amortization    Franchise    Interest Expense    Research and Development Costs    Franchise Amortization    Trademark    Legal Fees    Franchise Fee    Patent Amortization    

 $enter a total amount for this section

In: Accounting

Sylvia Sweet opened Sweet Angels, Inc. on June 1, 2020. During June, the following transactions were...

Sylvia Sweet opened Sweet Angels, Inc. on June 1, 2020. During June, the following transactions were completed:

June 1

Issued 5,000 shares of Cleaning Angels common stock for $13,000. Each share has a $1.00 par.

       2

Borrowed $7,500 on a 2-year, 8% note payable.

       2

Paid $9,000 to purchase used floor and window cleaning equipment from a company going out of business ($4,820 was for the floor equipment and $4,180 for the window equipment).

       2

Paid $250 for June for Internet and phone service.

       3

Purchased cleaning supplies for $980 on account.

       4

Hired 4 employees. Each will be paid $450 per 5-day work week (Monday-Friday). Employees will begin working on Monday, June 8th.

    4

Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Sylvia sold the window cleaning equipment for $4,000 cash.

       4

Obtained insurance coverage for $9,840 per year. Coverage runs from June 4, 2020, through June 04, 2021. Sylvia paid $2,460 cash for the first quarter of coverage.

   8

Paid $2.80 per share to buy 300 shares of Cleaning Angels, Inc common stock from a shareholder who disagreed with management goals. The shares will be held as treasury stock.

   12

Paid $300 on amount owed on cleaning supplies.

   15

Paid for employees’ wages for the week of June 8-12.

     15

Billed customers $3,600 for cleaning services performed through June 12, 2020.

     17

Received $600 from a customer for 4 weeks of cleaning services to begin on June 22, 2020.

     22

Billed customers $4,300 for cleaning services performed through June 19.

     22

Paid employees’ wages for the week of June 15-19

     23

Collected $2,400 cash from customers billed on June 15.

     25

Paid $250 for Internet and phone services for July.

     29

Declared and paid a cash dividend of $0.08 per share.

29

Collected $3,100 from customers billed on June 15 & 22.

29

Billed customers $3,900 for cleaning services performed through June 26th

29

Paid employees’ wages for the week of June 22-26

     30

Received notice that a customer who was billed $150 for services performed June 10th has filed for bankruptcy. Sweet Angels, Inc does not expect to collect any portion of this outstanding receivable. (Sweet Angels will follow the GAAP Guidelines for uncollectible accounts.)

Adjustment Data:

A. Services performed for customers through June 30, 2020, but unbilled and uncollected were $1,500.

B. Cleaning Angels used the allowance method to estimate bad debts. Cleaning Angels estimates that 3% of its month-end receivables will not be collected.

C. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 5 years, and $400 salvage value.

D. Record 1 month of insurance expense.

E. An inventory count shows $350 of supplies on hand at June 30th.

F. Record services performed for the customer who paid in advance on June 17th.

G, Accrue for wages owed through June 30, 2020.

H. Accrue for interest expense for one month.

I. Sylvia estimates a 20% income tax rate. (Hint: Prepare an income statement up to “income before taxes” to help with the income tax calculation.)

Instructions:

  1. Journalize the June transactions.
  2. Post to ledger accounts.
  3. Prepare a Trial Balance as of June 30, 2020.
  4. Journalize the adjusting entries. (Round all amounts to whole dollars.)
  5. Post the adjusting entries to the ledger accounts.
  6. Prepare an Adjusted Trial Balance as of June 30, 2020.
  7. Journalize the closing entries.
  8. Post the Closing Entries to the ledger accounts.
  9. Prepare a Post-Closing Trial Balance on June 30, 2020

In: Accounting

Red Line Railroad Inc. has three regional divisions organized as profit centers. The chief executive officer...

Red Line Railroad Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31:

Revenues—East $ 862,000
Revenues—West 1,036,000
Revenues—Central 1,890,000
Operating Expenses—East 563,600
Operating Expenses—West 621,840
Operating Expenses—Central 1,167,900
Corporate Expenses—Shareholder Relations 150,000
Corporate Expenses—Customer Support 360,000
Corporate Expenses—Legal 252,000
General Corporate Officers’ Salaries 274,500

The company operates three service departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services for shareholders of the company. The Customer Support Department is the company’s point of contact for new service, complaints, and requests for repair. The department believes that the number of customer contacts is an activity base for this work. The Legal Department provides legal services for division management. The department believes that the number of hours billed is an activity base for this work. The following additional information has been gathered:

East

West

Central
Number of customer contacts 5,000 6,000 9,000
Number of hours billed 1,400 2,000 2,200
Required:
1. Prepare quarterly income statements showing income from operations for the three divisions. Use three column headings: East, West, and Central.
2. Identify the most successful division according to the profit margin. Enter percentage rounded two decimal places (e.g. 0.22547 is 22.55%).
3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions? What is a major weakness of the present method?

Quarterly Income Statements

1. Prepare quarterly income statements showing income from operations for the three divisions. Use three column headings: East, West, and Central.

Red Line Railroad Inc.

Divisional Income Statements

For the Quarter Ended December 31

1

East

West

Central

2

Revenues

3

Operating expenses

4

Income from operations before service department charges

5

Service department charges:

6

Customer Support

7

Legal

8

Total service department charges

9

Income from operations

2. Compute the profit margin for each division. Enter percentage rounded two decimal places (e.g. .22547 is 22.55%).

Division

Profit Margin
East Division %
West Division %
Central Division %

In: Accounting

The NetCare Company, which operates assisted-living facilities, is planning to issue or sell shares of stock...

  1. The NetCare Company, which operates assisted-living facilities, is planning to issue or sell shares of stock to accredited investors. Briefly explain whether each of the following individuals would qualify as an “accredited investor” under the SEC’s Reg. D. [Note: Materials in Appendix B are useful in answer this exercise.]
    1. Amy Smith is the chief executive officer (CEO) of NetCare Company.
    2. Bruce Jones, who has a net worth of $750,000 , is planning to purchase shares of stock to be issued by NetCare Company.
    3. Jean Wu also is considering purchasing shares of stock that will be issued by NetCare Company. Jean’s annual income has been $250,000 in each of the past two years, and she expects to have a comparable amount of income next year.
    4. James Shastri is a software programmer for NetCare Company.
    5. Julie Kukoc recently inherited some financial assets and now has a net worth of $2 million with an annual income of $35,000.

In: Finance

During the 2ndquarter of 2016 (June 2016 – August 2016) Ping-Pong Industries (located at 535 Main...

During the 2ndquarter of 2016 (June 2016 – August 2016) Ping-Pong Industries (located at 535 Main Street, Brentwood, NY 11717; Sales Tax ID# 44455566677) had total sales of $126,000. Of this amount, $21,000 were non-taxable. All of the sales were made in Suffolk County, and the company does not report gross credit card and debit card sales. This is not the final sales tax return for the company, and the company pays the sales tax amount that is due when filing the form. The company does not use a third-party designee, and prepares the sales tax forms on its own. The forms are signed by Alton Thompson, the CEO of the company (phone number: 631-555-8476, no e-mail address), and are filed on the due date for the form.

Based on the instructions that have been provided for Form ST-100, complete Form ST-100 of Ping-Pong Industries for the 2ndquarter of the year.

In: Accounting

Receivables can also be used to analyze the financial health of a company. Research the Accounts...

Receivables can also be used to analyze the financial health of a company. Research the Accounts Receivable Turnover ratio for TWO companies in the same industry. Report back the ratios for these companies. Analyze these ratios and tell us, based only on this information, what company is in a better financial position. Is this what you expected, why or why not?

In: Accounting

Consider a hypothetical US company who is considering its expansion in India (soft drink company) Need...

Consider a hypothetical US company who is considering its expansion in India (soft drink company)

Need the below information about India which characterstics of labour force in terms of size and unemployment rate.

Labour Force

a)Size

b)Unemployment rates

:250 words

No copy please.Use your own words.

In: Operations Management

Problem 8-07A (Video) On January 1, 2020, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000,...

Problem 8-07A (Video)

On January 1, 2020, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2019. Harter Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred.

Jan. 5 Sold $20,000 of merchandise to Sheldon Company, terms n/15.
20 Accepted Sheldon Company’s $20,000, 3-month, 8% note for balance due.
Feb. 18 Sold $8,000 of merchandise to Patwary Company and accepted Patwary’s $8,000, 6-month, 9% note for the amount due.
Apr. 20 Collected Sheldon Company note in full.
30 Received payment in full from Willingham Company on the amount due.
May 25 Accepted Potter Inc.’s $6,000, 3-month, 7% note in settlement of a past-due balance on account.
Aug. 18 Received payment in full from Patwary Company on note due.
25 The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated.
Sept. 1 Sold $12,000 of merchandise to Stanbrough Company and accepted a $12,000, 6-month, 10% note for the amount due.


Journalize the transactions. (Omit cost of goods sold entries.) (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

In: Accounting

In New York, a can of coffee costs about $5 and in Saudi Arabia, it costs...

  1. In New York, a can of coffee costs about $5 and in Saudi Arabia, it costs about 20 Saudi Riyals. If the exchange rate is about 0.27 dollars per riyal, what is the real exchange rate?
  2. Analyze the impact of Saudi Riyal appreciation in US dollar for each of the following cases
    1. A US firms plans to invest in Saudi Arabia
  1. You are planning to visit USA in summer holidays ​​​​​​

Explain what will happen to the size of both M1 and M2 in each of the following situations:

  1. Sahar withdraws $300,000 from her checking account to pay for her admission fee in US.
  2. Muntaha transfers $5,000 from her checking account to her saving account. decrease M1 and not change M2.

In: Economics