Use the following information to prepare a multi-step income
statement and a balance sheet for Sherman Equipment Co. for Year 2.
(Hint: Some of the items will not appear on
either statement, and ending retained earnings must be calculated.)
(Balance Sheet only: Items to be deducted must be indicated
with a minus sign.)
| Salaries Expense | $ | 84,000 | Operating Expenses | $ | 77,000 | |||
| Common Stock | 100,000 | Cash Flow from Investing Activities | 93,400 | |||||
| Notes Receivable (short term) | 39,000 | Prepaid Rent | 14,000 | |||||
| Allowance for Doubtful Accounts | 9,300 | Land | 55,000 | |||||
| Uncollectible Accounts Expense | 9,600 | Cash | 49,600 | |||||
| Supplies | 2,700 | Inventory | 99,800 | |||||
| Interest Revenue | 6,900 | Accounts Payable | 61,000 | |||||
| Sales Revenue | 380,000 | Salaries Payable | 27,000 | |||||
| Dividends | 5,000 | Cost of Goods Sold | 163,000 | |||||
| Interest Receivable (short term) | 3,000 | Accounts Receivable | 71,000 | |||||
| Beginning Retained Earnings | 88,500 | |||||||
In: Accounting
A governmental entity is the recipient of a bequest of a
multi-story office building that the government intends to use as a
new city hall. The building has a historical cost of $850,000; a
book value in the hands of the benefactor of $700,000; and a fair
value of $1,050,000. The city should recognize on its governmental
fund financial statements, donations revenue of
a) $-0-.
b) $700,000.
c) $850,000.
d) $1,050,000
Explanation to why answer is d
A governmental entity is the recipient of a bequest of a
multi-story office building that the government intends to sell to
support program activities. The building has a historical of
$850,000; a book value in the hands of the benefactor of $700,000;
and a fair value of $1,050,000. The city had not yet begun to try
to sell the building when its annual financial statements were
issued. The city should recognize on its governmental fund
financial statements, donations revenue of
a) $-0-.
b) $700,000.
c) $850,000.
d) $1,050,000
Explanation to why answer is a
In: Accounting
A Company is selling two products A and B. It sells the two products at the prices of AED 190 and 230 respectively. The finance department estimated the fixed cost for both products A and B as AED 2400 and 2550 and the variable cost to make a unit of each product is AED 70 and 60 respectively.
If the company used new technology in redesigning product A and the total fixed cost reduced to AED 2250. The marketing department estimated the new selling price per unit to be AED 240 and that the company would be break-even if they sale 10 units of product A. Compute the variable cost per unit and the total variable cost of the newly designed product A?
In: Finance
Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs:
|
Selling Price per Case |
Variable Cost per Case |
Fixed Cost per Month |
|||||||
| Variety 1 | $ | 20 | $ | 16 | – | ||||
| Variety 2 | 21 | 19 | – | ||||||
| Variety 3 | 26 | 17 | – | ||||||
| Entire firm | – | – | $ | 49,400 | |||||
|
|
|||||||||
The sales mix (in cases) is 50 percent Variety 1, 25 percent Variety 2, and 25 percent Variety 3.
Required:
a. At what sales revenue per month does the company break even? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)
b. Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue per month will the company earn $54,470 after taxes assuming the same sales mix? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)
In: Accounting
Assume you work as budget analyst for City of Blue Ridge and you are preparing the budget for Fiscal Year 2020-2021. The data of tax revenue of past 10 years have been obtained as following. You are using two of the three different forecast models - 3-year moving average (with the alpha 0.4), linear regression trend project, and exponential smoothing.
(1) What would be your forecasted revenue for 2020-2021based on your forecasting models, respectively?
(2) Which model gives you the better estimate? In other words, which model would you choose? Provide a justification for your choice.
|
Year |
Tax Levies |
|
2010-2011 |
31,039,086 |
|
2011-2012 |
30,838,534 |
|
2012-2013 |
31,389,341 |
|
2013-2014 |
30,005,085 |
|
2014-2015 |
31,657,568 |
|
2015-2016 |
32,647,441 |
|
2016-2017 |
32,676,680 |
|
2017-2018 |
33,704,285 |
|
2018-2019 |
34,150,363 |
|
2019-2020 |
35,048,537 |
|
2020-2021 |
? |
In: Accounting
|
Pearse 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 December, the kennel budgeted for 5,300 tenant-days, but its actual level of activity was 5,320 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: |
Data used in budgeting:
| Fixed
element per month |
Variable element per tenant-day | |
| Revenue | — | $31.80 |
| Wages and salaries | $4,300 | $7.80 |
| Food and supplies | 900 | 12.60 |
| Facility expenses | 8,700 | 4.80 |
| Administrative expenses | 7,700 | 0.60 |
| Total expenses |
$21,600 |
$25.80 |
Actual results for December:
| Revenue | $109,080 |
| Wages and salaries | $23,630 |
| Food and supplies | $36,803 |
| Facility expenses | $19,380 |
| Administrative expenses | $9,166 |
The net operating income in the flexible budget for December would
be closest to:
a. $20,007
b. $20,101
c. $10,200
d. $10,320
In: Accounting
Required information
[The following information applies to the questions
displayed below.]
In 2018, 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 2020. Information related to the contract is
as follows:
| 2018 | 2019 | 2020 | |||||||
| 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.
rev: 09_15_2017_QC_CS-99734
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)
In: Accounting
Required information
[The following information applies to the questions
displayed below.]
In 2018, 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 2020. Information related to the contract is
as follows:
| 2018 | 2019 | 2020 | |||||||
| 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.
rev: 09_15_2017_QC_CS-99734
5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)
In: Accounting
Two accountants for the firm of Elwes and Wright are arguing
about the merits of presenting an income statement in a
multiple-step versus a single-step format. The discussion involves
the following 2017 information related to Ayayai Company ($000
omitted).
| Administrative expense | ||
| Officers' salaries | $5,076 | |
| Depreciation of office furniture and equipment | 4,136 | |
| Cost of goods sold | 60,746 | |
| Rent revenue | 17,406 | |
| Selling expense | ||
| Delivery expense | 2,866 | |
| Sales commissions | 8,156 | |
| Depreciation of sales equipment | 6,656 | |
| Sales revenue | 96,676 | |
| Income tax | 9,246 | |
| Interest expense | 2,036 |
Common shares outstanding for 2017 total 40,550 (000 omitted).
Prepare an income statement for the year 2017 using the multiple-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.)
Prepare an income statement for the year 2017 using the single-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.)
In: Accounting
A music promoter has had an offer to bring a famous musical group from England to Australia, as part of its world tour to promote its new album. The music promoter has done smaller tours previously, but nothing on the scale proposed by the manager of this famous group, the tour will cost several million dollars, but is likely to have revenue which will result in substantial profits for those involved. The promoter has some contacts at a national radio station which can promote the tour, and there is at least one financier who is interested in financing the tour in return of course for a share of the revenue from the tour. The promoter is calling for a meeting of the different interested parties, he is not sure what business organisation would be best to manage and conduct the proposed tour, particularly as it is going to involve various diverse entities, each with their own separate business interests.
Explain: • The options open to the different parties in what business structure they might use to promote the tour
In: Accounting