Questions
West Laboratory provides service The trial balance at 30 September 2019, before adjustments is as follows:...

West Laboratory provides service The trial balance at 30 September 2019, before adjustments is as follows:

Debit

Credit

Cash

$174,450

Accounts Receivable

17,000

Prepaid Rent

28,000

Prepaid insurance

1,600

Supplies inventory

2,400

Equipment

183,600

Accumulated Depreciation: Equipment

$68,850

Accounts Payable

18,100

Unearned revenue

14,000

Share Capital

200,000

Retained Earnings

44,700

Revenue

371,000

Salaries Expense

200,000

Rent expense

56,000

Insurance expense

3,200

Utilities Expense

9,600

Depreciation Expense

      40,800

             

$716,650

$716,650

The following information relates to month end adjustments:

  1. The useful life of the equipment was estimated to be 4 years with no residual value. West Laboratory uses straight-line method to calculate depreciation.
  1. A few customers pay in advance for the laboratory services provided by West Laboratory. Fees of $6,000 were earned during the month by providing service to customers who had paid in advance.
  1. Salaries earned by employees during the month but not yet recorded amounted to $23,000.
  1. On 1 July 2019, West Laboratory prepaid $42,000 for 6 months’ rent for the period from July to December 2019.
  1. On 1 January 2019, West Laboratory prepaid an insurance of $4,800 for the year from 1st January to 31st December 2019.
  1. Medical service provided during the month but not yet billed or recorded amounted to

$4,600.

Required:

  1. Prepare the adjusting entries for the month of September 2019.
  1. Prepare an income statement after the above adjustments.

(c) The president of West Laboratory was informed that the financial statements would be available "as soon as the adjusting entries are made." Being a non-accountant, the president feels adjustments should not be necessary if the accounting department is operating in a competent manner. Does the need for adjusting entries at the end of the period imply that transactions are not being recorded properly? Why adjusting entries are needed? Explain.

In: Accounting

Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use...

Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use a network of automated teller machines. RSB&T earns revenue by investing the money deposited; currently, it averages 5.90 percent annually on its investments of those deposits. To compete with larger banks, RSB&T pays depositors 0.50 percent on all deposits. A recent study classified the bank’s annual operating costs into four activities.

Activity Cost Driver Cost Driver Volume
Using ATM Number of uses $ 2,550,000 3,400,000 uses
Visiting branch Number of visits 1,530,000 255,000 visits
Processing transaction Number of transactions 11,220,000 136,000,000 transactions
Managing functions Total deposits 10,200,000 $ 637,500,000 in deposits
Total overhead $ 25,500,000

Data on two representative customers follow.

Customer A Customer B
ATM uses 100 200
Branch visits 5 20
Number of transactions 40 1,500
Average deposit $ 6,000 $ 6,000

A. Compute RSB&T's operating profits.

Operating profit   

B. Compute the profit from Customer A and Customer B, assuming that customer costs are based only on deposits. Interest costs = {{0.5:#,##0.00}} percent of deposits; operating costs are 4 percent (= $25,500,000/$637,500,000) of deposits. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Profit Per Customer
Customer A
Customer B

C. Compute the profit from Customer A and Customer B, assuming that customer costs are computed using the information in the activity-based costing analysis. (Do not round intermediate calculations. Round your answers to 2 decimal places. Loss amounts should be indicated by a minus sign.)

Customer A Customer B
Sales revenue
Interest on deposit
Total operating cost
Customer profit/loss

In: Accounting

Benson Brands, Inc. Benson, presents its statement of cash flows using the indirect method. The following...

Benson Brands, Inc. Benson, presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Benson’s 2017 and 2016 year-end balance sheets:

Account Title 2017 2016
Accounts receivable $ 20,000 $ 30,000
Merchandise inventory 56,000 49,600
Prepaid insurance 16,500 24,700
Accounts payable 26,800 18,500
Salaries payable 4,700 4,000
Unearned service revenue 1,000 2,900

The 2017 income statement is shown below:

Income Statement
Sales $ 610,000
Cost of goods sold (380,000 )
Gross margin 230,000
Service revenue 4,900
Insurance expense (39,000 )
Salaries expense (157,000 )
Depreciation expense (4,100 )
Operating income 34,800
Gain on sale of equipment 3,600
Net income $ 38,400

Required

  1. Prepare the operating activities section of the statement of cash flows using the direct method.

  2. Prepare the operating activities section of the statement of cash flows using the indirect method.

Prepare the operating activities section of the statement of cash flows using the direct method. (Cash outflows should be indicated with minus sign.)
BENSON BRANDS, INC.
Statement of Cash Flows (Operating Activities)
For the Year Ended December 31, 2017
Cash flows from operating activities:   
Cash collections from customers for sales
Cash collections from customers for services
Cash payments for:
Net cash flow from operating activities $0

Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
BENSON BRANDS, INC.
Statement of Cash Flows (Operating Activities)
For the Year Ended December 31, 2017
Cash flows from operating activities:
Add:
Deduct:
Add: noncash expenses
Net cash flow from operating activities $0

In: Accounting

Benson Brands, Inc. Benson, presents its statement of cash flows using the indirect method. The following...

Benson Brands, Inc. Benson, presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Benson’s 2017 and 2016 year-end balance sheets:

Account Title 2017 2016
Accounts receivable $ 20,000 $ 30,000
Merchandise inventory 56,000 49,600
Prepaid insurance 16,500 24,700
Accounts payable 26,800 18,500
Salaries payable 4,700 4,000
Unearned service revenue 1,000 2,900

The 2017 income statement is shown below:

Income Statement
Sales $ 610,000
Cost of goods sold (380,000 )
Gross margin 230,000
Service revenue 4,900
Insurance expense (39,000 )
Salaries expense (157,000 )
Depreciation expense (4,100 )
Operating income 34,800
Gain on sale of equipment 3,600
Net income $ 38,400

Required

  1. Prepare the operating activities section of the statement of cash flows using the direct method.

  2. Prepare the operating activities section of the statement of cash flows using the indirect method.

Prepare the operating activities section of the statement of cash flows using the direct method. (Cash outflows should be indicated with minus sign.)
BENSON BRANDS, INC.
Statement of Cash Flows (Operating Activities)
For the Year Ended December 31, 2017
Cash flows from operating activities:
Cash collections from customers for sales
Cash collections from customers for services
Cash payments for:
Net cash flow from operating activities $0

Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
BENSON BRANDS, INC.
Statement of Cash Flows (Operating Activities)
For the Year Ended December 31, 2017
Cash flows from operating activities:
Add:
Deduct:
Add: noncash expenses
Net cash flow from operating activities $0

In: Accounting

Discuss the trends in the revenue for McDonalds. Is this a problem?

Discuss the trends in the revenue for McDonalds. Is this a problem?

In: Finance

2/ impact in the equity of revenue and expenses

2/ impact in the equity of revenue and expenses

In: Accounting

What was Dwight Eisenhower revenue act

What was Dwight Eisenhower revenue act

In: Economics

explain the components of government revenue and outlays

explain the components of government revenue and outlays

In: Economics

Organization: Freestanding ER Services Title: ER Operations Manager Outline: Multiple Regression: Effect of Age and General...

Organization: Freestanding ER Services

Title: ER Operations Manager

Outline:

  1. Multiple Regression: Effect of Age and General Health Status Score on Total ER Cost.
    1. Purpose
    2. Importance
    3. Variables
    4. Sample Size
    5. Hypothesis
    6. Methodology
    7. Findings
    8. Interpretations/Implications

Description of each Section

Purpose: Identify the purpose of the analysis in this section. What questions do you hope to answer?

Importance: State and explain the importance of this analysis to the department/organization. How will the findings be used?

Variables: List all variables, explain how they will be measured, and how they will be collected.

Sample Size: State your sample size and when data is collected.

Hypothesis: What are your null and alternate hypothesis?

Methodology: State the statistical method used in this section.

Findings: Copy and Paste all relevant output from Excel into this section. State your major findings from the included tables/charts.

Interpretaions/Implications: Discuss what the department/organization needs to do based on the findings.

ID Insurance Location Wait Time Age GHSS Cost
126 Uninsured Moore 60 11 12 $12,000
107 Uninsured Moore 25 13 99 $7,800
110 Uninsured Moore 45 16 13 $478
141 Uninsured West 34 31 1 $135
160 Insurance Moore 2 47 14 $1,200
128 Uninsured Moore 22 47 16 $4,600
166 Insurance Moore 12 49 77 $4,400
121 Insurance Moore 25 52 15 $4,500
120 Insurance West 15 56 67 $4,450
124 Insurance Moore 22 57 61 $1,200
132 Insurance Moore 54 59 16 $1,200
130 Insurance Moore 55 60 25 $1,200
108 Uninsured Moore 10 60 26 $1,365
161 Insurance Moore 56 62 27 $1,200
115 Government Moore 15 63 66 $13,000
163 Insurance Moore 61 66 34 $1,400
158 Uninsured Moore 56 71 45 $1,300
138 Uninsured Moore 15 74 79 $4,900
113 Government Moore 25 78 56 $13,000
139 Uninsured West 13 78 77 $4,850
180 Government Moore 33 79 86 $12,000
182 Government Moore 34 80 57 $900
176 Government Moore 55 85 79 $1,245
177 Government Moore 60 87 49 $678
178 Government Moore 45 89 73 $450
133 Uninsured West 45 89 93 $9,850
149 Uninsured Moore 14 90 88 $4,500
193 Government Moore 34 90 99 $8,700
114 Government Moore 44 91 90 $5,000
102 Government Pelican 20 5 1 $680
165 Uninsured Pelican 11 5 2 $899
109 Uninsured Pelican 89 6 77 $12,000
152 Insurance Pelican 15 6 77 $14,000
140 Insurance Pelican 20 7 11 $9,000
192 Government West 20 7 13 $450
174 Government Pelican 20 7 15 $6,785
155 Insurance Pelican 20 7 24 $850
112 Government West 22 8 26 $450
169 Insurance Pelican 20 8 36 $960
137 Insurance Pelican 25 9 1 $6,000
194 Government West 22 9 11 $450
156 Insurance West 25 10 13 $11,000
197 Government Pelican 23 12 18 $195
143 Insurance Pelican 26 14 66 $650
164 Uninsured West 22 14 89 $4,500
170 Government West 24 15 99 $4,630
135 Insurance Pelican 31 16 14 $9,000
119 Insurance Pelican 34 17 16 $1,200
196 Government Pelican 24 18 19 $1,645
150 Uninsured Pelican 23 18 25 $879
134 Insurance Pelican 36 19 22 $950
185 Government Pelican 26 19 26 $1,200
145 Government West 28 19 88 $13,000
179 Government West 28 22 1 $456
157 Insurance West 36 22 44 $980
181 Government Pelican 29 24 13 $7,100
144 Insurance Pelican 44 24 36 $1,300
100 Uninsured Pelican 45 27 26 $1,500
159 Insurance Pelican 44 27 48 $15,000
131 Insurance Pelican 45 30 79 $1,500
125 Uninsured Pelican 56 30 99 $12,000
186 Government West 36 34 13 $156
136 Insurance Pelican 45 34 99 $4,500
116 Government West 36 36 16 $4,900
148 Insurance West 48 36 89 $14,800
106 Insurance West 55 38 36 $1,356
129 Insurance Pelican 55 43 46 $4,500
190 Government Pelican 36 44 16 $1,200
123 Insurance Pelican 56 44 36 $1,630
142 Uninsured Pelican 61 45 49 $4,680
117 Government Pelican 39 46 36 $4,950
104 Government Pelican 43 47 12 $4,977
154 Government Pelican 44 48 24 $1,200
103 Government West 46 50 56 $5,500
184 Government Pelican 24 51 57 $5,500
189 Government Pelican 46 55 23 $1,300
122 Government West 49 56 66 $1,230
153 Government West 15 56 99 $5,600
191 Government West 15 57 68 $1,340
183 Uninsured Pelican 9 58 63 $1,345
101 Government Pelican 18 59 89 $8,800
151 Insurance Pelican 14 64 89 $5,600
173 Government Pelican 13 66 23 $2,300
172 Government Pelican 55 67 69 $678
146 Government Pelican 14 67 88 $6,600
175 Government Pelican 24 74 37 $1,300
105 Government Pelican 15 74 88 $8,890
188 Government Pelican 4 76 36 $134
187 Government Pelican 3 78 69 $7,400
162 Insurance Pelican 14 88 90 $2,000
147 Government Pelican 13 88 99 $9,450
168 Government Pelican 13 91 73 $8,700
118 Insurance Pelican 13 91 94 $10,000
167 Insurance Pelican 13 93 93 $8,999
127 Insurance Pelican 14 94 74 $550
171 Government Pelican 14 98 74 $15,000
111 Insurance Pelican 12 99 73 $900
197 Uninsured West 55 80 59 $780
197 Government West 21 19 26 $1,450
197 Uninsured West 14 29 88 $8,900
197 Government West 19 36 44 $1,200
197 Uninsured West 15 36 55 $1,300
197 Government West 17 43 99 $900
197 Uninsured West 16 44 46 $4,400
197 Government West 35 45 78 $7,780
197 Uninsured Pelican 19 45 86 $4,465
197 Uninsured West 60 47 23 $1,200
197 Government Pelican 47 48 22 $1,430
197 Government Pelican 14 55 88 $12,800
197 Insured Pelican 10 65 10 $1,200
197 Government West 46 67 67 $650
197 Insured Pelican 21 69 79 $4,458
197 Insured West 22 70 15 $1,200
197 Insured Pelican 27 73 66 $4,600
197 Insured Pelican 28 74 78 $7,748
197 Insured Pelican 36 76 19 $1,200
197 Insured Pelican 25 77 48 $1,400
197 Government Pelican 13 77 79 $12,000
197 Insured Pelican 44 78 79 $9,900
197 Government Pelican 25 78 99 $1,800
197 Insured Pelican 76 81 89 $4,500
197 Insured Pelican 38 82 79 $5,000
197 Government Pelican 19 89 44 $3,000
197 Government Moore 55 89 96 $5,750
197 Insured Moore 37 89 99 $12,000
197 Government Moore 56 90 79 $10,000
197 Insured Moore 44 94 86 $55
51.18898 53.24409 4486.15

In: Statistics and Probability

The following comparative income statement (in thousands of dollars) for the two recent fiscal years was...

The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways.

1

Current Year

Previous Year

2

Revenues:

3

Admissions

$116,034.00

$130,239.00

4

Event-related revenue

151,562.00

163,621.00

5

NASCAR broadcasting revenue

192,662.00

185,394.00

6

Other operating revenue

29,902.00

26,951.00

7

Total revenue

$490,160.00

$506,205.00

8

Expenses and other:

9

Direct expense of events

$101,402.00

$106,204.00

10

NASCAR purse and sanction fees

122,950.00

120,146.00

11

Other direct expenses

18,908.00

20,352.00

12

General and administrative

183,215.00

241,223.00

13

Total expenses and other

$426,475.00

$487,925.00

14

Income from continuing operations

$63,685.00

$18,280.00
A. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Enter all amounts as positive numbers. Rounding instructions (Note: Due to rounding, amounts may not total 100%).
B. Comment on the significant changes.

Income Statement

Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Enter all amounts as positive numbers. Rounding instructions (Note: Due to rounding, amounts may not total 100%).

Speedway Motorsports, Inc.

Comparative Income Statement (in thousands of dollars)

For the Years Ended December 31

1

Current Year

Current Year

Previous Year

Previous Year

2

Amount

Percent

Amount

Percent

3

Revenues:

4

Admissions

$116,034.00

$130,239.00

5

Event-related revenue

151,562.00

163,621.00

6

NASCAR broadcasting revenue

192,662.00

185,394.00

7

Other operating revenue

29,902.00

26,951.00

8

Total revenue

$490,160.00

100.0%

$506,205.00

100.0%

9

Expenses and other:

10

Direct expense of events

$101,402.00

$106,204.00

11

NASCAR purse and sanction fees

122,950.00

120,146.00

12

Other direct expenses

18,908.00

20,352.00

13

General and administrative

183,215.00

241,223.00

14

Total expenses and other

$426,475.00

$487,925.00

15

Income from continuing operations

$63,685.00

$18,280.00

Final Question

Comment on the significant changes.

While overall revenue some between the two years, the overall mix of revenue sources did change somewhat. The NASCAR broadcasting revenue as a percent of total revenue by almost 2.6 percentage points, while the percent of admissions revenue to total revenue by 2 percentage points. Overall, it appears that income from continuing operations has significantly improved because of

In: Accounting