Greive is a sole trader business which only manufactures and sells a set of garden equipment which comprises a spade, a hose pipe and a trowel.

Given below are the sales revenue and profit for 2017.

In 2017 the business manufactured and sold 22,000 sets of garden equipment and had fixed costs of £124,000. All other costs were variable.

Required:

a.Calculate the average selling price, variable cost and contribution for a set of garden equipment for 2017.

b.Calculate the average sales revenue level, both in numbers of sets of garden equipment and in money terms, at which the business broke even in 2017. (Your calculation should be rounded up to the nearest whole number.)

c.Why does it make more sense for a break-even calculation to round up to the nearest whole number and not just to the nearest number?

d.Calculate the number of sets of garden equipment needed to be sold to earn a profit of £200,000.

e.Calculate the margin of safety for Greive for 2017.

shareholders contributed 60 grand.
land was purchased for 40 grand
I borrowed 18 grand from a bank
I provided services on credit for 16 grand which should be paid back to me in a year.
I paid 11 grand for operating expenses.
I paid a grand cash dividends to shareholders.

place the appropriate amounts in the corresponding T accounts: cash, accounts receivable, land, notes payable, common stock (shareholders equity), service revenue and operating expenses.

what is the revenue amount on the income statement? what is the operating expenses on the income statement? what is the net income on the income statement?

is there a beginning retained earnings balance?
on the statement of retained earnings, what is the net income, dividends and ending retained earnings?

on the balance sheet : what are the cash assets, account receivable assets and land asset? what is the total in assets? what is the liability amount for notes payable? for equity, what is the amount of common stock? what is the amount of retained earnings? what is the total liability and equity?

AOCI 703

APIC 40,570

Change in foreign currency translation net of tax 566

Change in unrealized gain/loss on available for sale investments net (90)

Common Stock 14

Cost of revenue 5,454

Dividends 3,614

General and administrative 2,517

Interest and other income (expense), net 391

Marketing and sales 4,725

Net income attributable to noncontrolling int 14

Provision for income taxes 4,660

Research and development 7,754

Retained Earnings 21,670

Revenue $ 40,653

Weighted average shares used to compute earnings per share attributable to common stockholders: 2,901

Requirement 1 Using the partial trial balance (will not balance) given above, create an income statement, statement of comprehensive income and statement of changes stockholders equity

Requirement 2 Please describe what would change on the statements you prepared if there was an unrealized loss on an available for sale security that was discovered and not included in the trial balance given. Please explain all the changes that will be needed to correct the financial statements prepared.

reate a class Song with the data members listed below:

• title: string the name of the song. (initialize to empty string)
• artist: string the name of the artist. (initialize to the empty string)
• downloads: int the number of times the song has been downloaded. (initialize to 0)

Include the following member functions:

• default constructor,
• a constructor with parameters for each data member (in the order given above),
• getters and setter methods for each data member named in camel-case.  For example, if a class had a data member named myData, the class would require methods named in camel-case: getMyData and setMyData.
• double grossRevenue(double price): This function should take in a price per download and returns the total revenue for the song (revenue = price * downloads).

You only need to write the class definition and any code that is required for that class (i.e., header and implementation).

NOTE: you must not use the implicit "private" for class data types and methods. Include public or private explicitly.

1. Joe Windows manufactures and sells custom storm windows for three-season porches. Joe also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Joe enters into the following non-cancellable contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,400 and chooses Joe to do the installation. Joe charges the same price for the windows regardless of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $600. The customer pays Joe $2,000 (which equals the fair value of the windows, which have a cost of $1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Joe completes installation on October 15, 2020, and the customer pays the balance due. Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Joe. Round percentage allocations to two decimal places and final amounts to the nearest dollar. Assume Joe follows IFRS.

Required: Fill in the following chart.

Analysis:

Schedule 1

Following is the unadjusted trial balance of Skylar Gaming, Inc. at the end of its first year of operations, December 31, 20x7:

The following additional information is available:

1. Skylar Gaming, Inc. needs to accrue $2,000 in salaries that will not be paid until next month.
2. Skylar Gaming, Inc. has earned $2,000 of the services that were paid for in advance as included in the unearned revenue account.
3. At the end of the period, Skylar Gaming, Inc. has provided services in the amount of $500 to another customer (John Gartner). However, Skylar has not billed them yet since they only issue bills at the beginning of each month.
4. Skylar Gaming, Inc. needs to record the annual $1,025 of depreciation on the equipment.
5. One month of the 12-month insurance policy in prepaid insurance has been used up, and a journal entry is needed to reflect this.
6. At the end of the period, $125 in supplies are remaining

1. Prepare all necessary adjusting entries at December 31, 20x7 Descriptions are not needed.
2. Prepare an adjusted trial balance at December 31, 20x7.
3. Columns listed on the worksheet as income statement, statement of retained earnings, and balance sheet should be completed.
4. Prepare closing entries including descriptions.

Since 1990, Raise the Roof has provided elevator maintenance servicing. On January 1, 2018, Raise the Roof obtains a contract to maintain an elevator in a 90-story building in San Francisco for 10 months and receives a fixed payment of $80,000 on January 1. The contract specifies that Raise the Roof will receive an additional $41,000 at the end of the 10 months if there are no elevator stoppages or accidents during the year. Raise the Roof estimates variable consideration to be the most likely amount it will receive.

R 1: Assume that Raise the Roof will be given unlimited access to the elevators for repairs and maintenance. With these conditions, Raise the Roof believes its chances of earning the bonus is 90%. Prepare the journal entry Raise the Roof would record on January 1 to record the receipt of cash and January 31 to record one month of revenue.

R 2: Assume instead that Raise the Roof will have access to the elevators only from 2:00 AM to 4:00 AM each day which is insufficient for more time consuming repairs and maintenance. As a result, Raise the Roof believes its chances of earning the bonus is only 20%. Prepare the journal entry Raise the Roof will record on January 31 to record one month of revenue.

R 3: Continuing with the same facts from Requirement 2, assume that on May 31, Raise the Roof determines that it does not need to spend more than 2 hours daily on maintenance and repairs. Therefore, Raise the Roof changes its estimate of the likelihood to receive the bonus to 85%. Prepare the journal entry Raise the Roof would record on May 31 to recognize May revenue and any necessary revision in its estimate bonus receivable.

Traynor Corporation's capital structure consists of 50,000 shares of common stock at January 1 and as of year-end. At December 31, 2018 an analysis of the accounts and discussions with company officials revealed the following information:

Additional information:

• Income tax rate for all income items is 30%.
• Traynor decided to discontinue its entire wholesale operations and on August 31, Traynor sold the wholesale operations to Donald Corporation for a loss of $30,000. The wholesale division had a total loss on operations of $50,000 from January 1 to August 31.
• There was an error noted in the prior year financial statements whereas depreciation expense of $20,000 was omitted.

Instructions:

In an excel spreadsheet, prepare the following: