The SeaBurst Company, owned by Sharon Hernandez, reported the
following account balances, after adjustments, for the year ended
December 31, 2018. Assume all accounts had "normal" balances.
1. Prepare a trial balance in the columns shown below, including
column totals. You may reorder the accounts if you prefer (i.e.
list assets first, then liabilities, equity, revenue, &
expenses.)
2. Prepare an Income Statement and Balance Sheet in proper form
| Accounts Payable | 960 |
| Accounts Receivable | 4,795 |
| Advertising | 3,150 |
| Cash, checking | 4,892 |
| Insurance Expense | 4,867 |
| Insurance Payable | 856 |
| Notes Payable, Long-term | 5,000 |
| Notes Receivable, Long-term | 6,500 |
| Payroll Tax Expense | 6,931 |
| Petty Cash | 200 |
| Rent | 18,000 |
| Rent Payable | 1,500 |
| S. Hernandez, Capital | 4,144 |
| S. Hernandez, Withdrawals | 52,000 |
| Salaries & Wages | 72,386 |
| Salaries & Wages Payable | 2,375 |
| Sales Revenue | 165,000 |
| Supplies | 490 |
| Supplies Expense | 2,475 |
| Utilities | 3,149 |
In: Accounting
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:
| Fixed Component per Month |
Variable Component per Job |
Actual Total for February |
|||||||
| Revenue | $ | 279 | $ | 33,520 | |||||
| Technician wages | $ | 8,500 | $ | 8,350 | |||||
| Mobile lab operating expenses | $ | 4,800 | $ | 31 | $ | 8,670 | |||
| Office expenses | $ | 2,500 | $ | 2 | $ | 2,610 | |||
| Advertising expenses | $ | 1,620 | $ | 1,690 | |||||
| Insurance | $ | 2,870 | $ | 2,870 | |||||
| Miscellaneous expenses | $ | 960 | $ | 2 | $ | 525 | |||
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $31 per job, and the actual mobile lab operating expenses for February were $8,670. The company expected to work 130 jobs in February, but actually worked 138 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February
In: Accounting
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 | $ | 2,610,000 | $ | 3,162,000 | $ | 2,230,800 | |||
| Estimated costs to complete as of year-end | 6,390,000 | 2,028,000 | 0 | ||||||
| Billings during the year | 2,100,000 | 3,672,000 | 4,228,000 | ||||||
| Cash collections during the year | 1,850,000 | 3,000,000 | 5,150,000 | ||||||
Westgate recognizes revenue over time according to percentage of completion.
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.)
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,610,000 | $ | 3,850,000 | $ | 3,250,000 | |||
| Estimated costs to complete as of year-end | 6,390,000 | 3,150,000 | 0 | ||||||
In: Accounting
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 | $ | 2,610,000 | $ | 3,162,000 | $ | 2,230,800 | |||
| Estimated costs to complete as of year-end | 6,390,000 | 2,028,000 | 0 | ||||||
| Billings during the year | 2,100,000 | 3,672,000 | 4,228,000 | ||||||
| Cash collections during the year | 1,850,000 | 3,000,000 | 5,150,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
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.)
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,610,000 | $ | 3,850,000 | $ | 4,050,000 | |||
| Estimated costs to complete as of year-end | 6,390,000 | 4,200,000 | 0 | ||||||
In: Accounting
|
The alphabetical listing below includes all of the adjusted account balances of T.O.’s Dance Studio as of December 31, 2015. All account balances are normal. |
| Accounts Payable | $ 3,800 | |||||||||||||
| Accounts Receivable | 9,000 | |||||||||||||
| Accumulated Depreciation––Equipment | 4,700 | |||||||||||||
| Common Stock | 3,300 | |||||||||||||
| Cash | 5,000 | |||||||||||||
| Depreciation Expense | 1,600 | |||||||||||||
| Dividends | 1,600 | |||||||||||||
| Equipment | 9,900 | |||||||||||||
| Income Tax Expense | 1,300 | |||||||||||||
| Income Taxes Payable | 1,300 | |||||||||||||
| Rent Expense | 1,300 | |||||||||||||
| Retained Earnings | 3,400 | |||||||||||||
| Salaries and Wages Expense | 8,200 | |||||||||||||
| Service Revenue | 19,600 | |||||||||||||
| Unearned Revenue | 1,800 | |||||||||||||
|
||||||||||||||
In: Accounting
Debit Credit
- Cash 3,000
- Rent expense 49,000
- Income taxes expense 2,000
- Supplies expense 23,000
- Salaries expense 147,000
- Accounts receivable 44,000
- Depreciation expense 9,000
- Wages expense 42,000
- Prepaid insurance expense 2,000
- Equipment 75,000
- Investments 20,000
- Interest expense 3,000
- Supplies inventory 5,000
- Retained earnings 2,000
- Unearned rent revenue 22,000
- Notes payable (due in 2021) 20,000
- Wages payable 9,000
- Accounts payable 15,000
- Contributed capital 60,000
- Equipment accumulate depreciation 18,000
- Design service revenue 278,000
424,000 424,000
Trisco has paid dividends during the year for $ 500. Retained earnings was $ 2,500 at 01/01/2018.
Required: Prepare a classified income statement, a statement of retained earnings and a classified balance sheet for 2018.
In: Accounting
U8i4 Construction Company has the following account balances reported on its financial statements on December 31, 2019. In addition, the company did not issue any common stock during 2019. All accounts on financial statements have been adjusted and reported.
Equipment (net) $550
Deferred revenue 145
Salaries expense 60
Depreciation for the year 90
Common stock 60
Supplies 100
Notes payable 180
Service revenue 360
Cash 100
Dividend paid during the year 20
Retained earnings ?
Required: Please choose the best answer for the following three questions based on the above information.
What is the net income reported in 2019?
multiple choice 1
$125
$190
$210
$280
What is the balance of total assets on December 31, 2019?
multiple choice 2
$660
$895
$835
$750
What is the balance of retained earnings on December 31, 2019?
multiple choice 3
$595
$295
$365
$675
In: Accounting
Required information
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 | $ | 2,156,000 | $ | 3,388,000 | $ | 2,371,600 | |||
| Estimated costs to complete as of year-end | 5,544,000 | 2,156,000 | 0 | ||||||
| Billings during the year | 2,130,000 | 3,414,000 | 4,456,000 | ||||||
| Cash collections during the year | 1,865,000 | 3,300,000 | 4,835,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
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.)
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,156,000 | $ | 3,865,000 | $ | 4,095,000 | |||
| Estimated costs to complete as of year-end | 5,544,000 | 4,230,000 | 0 | ||||||
In: Accounting
Required information
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 | $ | 2,156,000 | $ | 3,388,000 | $ | 2,371,600 | |||
| Estimated costs to complete as of year-end | 5,544,000 | 2,156,000 | 0 | ||||||
| Billings during the year | 2,130,000 | 3,414,000 | 4,456,000 | ||||||
| Cash collections during the year | 1,865,000 | 3,300,000 | 4,835,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
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.)
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,156,000 | $ | 3,865,000 | $ | 3,265,000 | |||
| Estimated costs to complete as of year-end | 5,544,000 | 3,165,000 | 0 | ||||||
In: Accounting
Suppose a profit-maximizing firm can produce 100 units of a hypothetical product, wendals (selling at a price of $1 per unit), by combining labor, land, capital, and entrepreneurial ability in each of the four ways shown in the table below. Assume further that the firm can hire labor at $6 per unit, capital at $4 per unit, and entrepreneurship at $2 per unit.
TECHNIQUES
|
A |
B |
C |
|
|
LABOR |
4 |
6 |
8 |
|
LAND |
4 |
3 |
|
|
CAPITAL |
5 |
4 |
|
|
ENTREPRENEURSHIP |
1 |
1 |
1 |
|
TECHNIQUE COST |
$62 |
$66 |
|
|
REVENUE |
|||
|
PROFIT |
$34 |
3. The total revenue for this firm is________ dollars.
4. The price of land is _________ dollars.
5. The cost of technique B is _______ dollars.
6. The profit for technique C is ________ dollars.
7. The amount of land embedded in technique B is _________ units.
8. The amount of capital embedded in technique C is _________ units.
9. This firm will earn a profit of ______ dollars.
10. If the price of wendals increases to $2, then which technique will this firm use? ____________
In: Economics