The following accounts are from Mookie The Beagle Concierge Chart of Accounts. For each account indicate:  

If the account is increased by a:

• Debit
• Credit

Type of account as:

• Asset
• Liability
• Equity
• Revenue (Income)
• Expense

Accounts:

1.  Checking

2.  Accounts Receivable (A/R)  

3.  Inventory

4.  Prepaid Expenses  

5.  Prepaid Expenses: Insurance

6.  Prepaid Expenses: Rent

7.  Prepaid Expenses: Supplies

8.  Undeposited Funds

9.  Accounts Payable (A/P)

10.  VISA Credit Card  

11.  Unearned Revenue -   

12.  Owner Distributions   

13.  Owner’s Investment   

14.  Retained Earnings   

15.  Sales  

16.  Advertising & Marketing   

17.  Bank Charges & Fees   

18.  Contractors  

19.  Insurance: Liability Insurance Expense   

20.  Interest Paid   

21.  Legal & Professional Services   

22.  Office Supplies & Software   

23.  Rent & Lease   

24.  Repairs & Maintenance   

25.  Utilities

United Project Consultants (UPC) provides project consultancy services to new business projects. For 2017, it has a total budgeted revenue of $480,000, based on an average price of $240 per business project prepared. UPC would like to achieve at least 50% as a margin of safety. The company’s current fixed costs are $241,956, and variable costs average $42 per project. (Consider each of the following separately.)

1. Calculate UPC’s breakeven point and margin of safety in units.

2. Which of the following changes would help UPC achieve its desired margin of safety?

a. Average revenue per business project increases to $276.

b. Planned number of business projects prepared increases by 25%.

c. United Project Consultants purchases new tax-software that results in a 7.5% increase in fixed costs, but makes project calculations easier. The software reduces variable costs by an average of $2 per project.

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:

Presented below is information related to Ivan Calderon Corp. for the year 2020. Net sales $1,300,000 Write-off of inventory due to obsolescence $80,000 Cost of goods sold 780,000 Depreciation expense omitted by accident in 2019 55,000 Selling expenses 65,000 Casualty loss 50,000 Administrative expenses 48,000 Cash dividends declared 45,000 Dividend revenue 20,000 Retained earnings at December 31, 2019 980,000 Interest revenue 7,000 Effective tax rate of 20% on all items Partially correct answer. Your answer is partially correct. Try again. Prepare a multiple-step income statement for 2020. Assume that 60,000 shares of common stock are outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. 1.49.) Prepare a separate retained earnings statement for 2020. (List items that increase adjusted retained earnings first.)

Chemco produces two chemicals A and B. These chemicals are produced via two manufacturing processes. Process 1 requires 2 hours of labor and 1 lb of raw materials to produce 2 oz of A and 1 oz of B. Process 2 requires 3 hours of labor and 2 lbs of raw material to produce 3 oz of A and 2 oz of B. Sixty hours of labor and 40 lbs of raw material are available. Demand for Chemical A is unlimited, but only 20 oz of B can be sold. Chemical A sells for $16/oz, and B sells for $14/oz. Any chemical B that is unsold must be disposed of at a cost of $2/oz. Formulate an LP model to maximize Chemicos revenue and solve.

1. Maximum Revenue

2. Amount of chemical A produced (oz)

3. Amount of chemical B produced and sold (oz)

4. Amunt of chemical B destroyed (oz)

Presented below is information related to Donaldson Corp., for the year 2020. Prepare an income statement and answer the question below and other questions requiring the use of this income statement. Net sales $1,820,000 Cost of goods sold 1,240,000 Selling expenses 86,000 Administrative expenses 74,000 Dividend revenue 25,000 Interest revenue 20,000 Interest expense 50,000 Write-off of goodwill due to impairment 40,000 Depreciation expense omitted in 2018 105,000 Dividends declared 12,000 Effect on prior year’s of change in accounting principle (credit) 230,000 Loss from operations of discontinued component of business, net of tax 190,000 Gain from disposal of component of business, net of tax 260,000 Federal tax rate of 20% on all items Assume the 200,000 shares of common stock were outstanding during 2020. In the multiple-step income statement for 2020, how much was net income?

Kasey Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 2,260 tenant-days, but its actual level of activity was 2,220 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:

Data used in budgeting:

Actual results for March:

The activity variance for wages and salaries in March would be closest to:

$506 F

$316 F

$506 U

$316 U

You are performing a sensitivity analysis on an investment project and looking at the EXPECTED case of outcome. At t = 0, you invest $5 million in a 10-year project and expect to receive a revenue (sales) of $10 million each year. Variable cost is 75% of revenue (sales) and the cost of capital is 8% p.a.

Using the straight-line depreciation method, determine the depreciation per year. A. $ 500,000 B. $ 750,000 C. $ 1,000,000 D. $ 1,500,000 E. $ 2,000,000

Determine the variable cost in $ amount. A. $ 5 million B. $ 7.5 million C. $ 10 million D. $ 15 million E. $ 20 million

Determine the NPV of this project using Total Cash Flow. You expect to have a Total Cash Flow of $1 million for each of the next 10 years. A. $ 1.71 million B. $ 5.67 million C. $ 5.92 million D. $ 6.55 million E. $ 7.86 million

The following information is related to Tamarisk Company for 2017.

Tamarisk Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Tamarisk sold the wholesale operations to Rogers Company. During 2017, there were 518,000 shares of common stock outstanding all year.

Please Prepare a Multi-Step Income Statement