Question 2 On December 15, 2015, a public company receives an order from a customer for services to be performed on December 28, 2015. Due to a backlog of orders, the company does not perform the services until January 3, 2016. The customer pays for the services on January 6, 2016. When should revenue be recorded for the company? Why (support your argument
In: Accounting
Sales Returns Adjusting Entry
Estimated additional customer returns expected to be 0.5% of year end net sales revenue. Cost of additional expected returned inventory is estimated to be 195$. 80% of additional expected returns are estimated to come from sales on account. 20% of additional expected returns are estimated to come from cash sales.
Net Sales = 61152
In: Accounting
In accounting its important to understand that there may be events that occur that are not business transactions. Please give us an example of a business transaction that affects the accounting equation. Remember that the expanded accounting equation is: Assets = Liabilities + Owner's Equity + Revenue - Expenses. Please be sure that you provide this transaction in General Journal format. Additionally give us an example of an event that is not an accounting transaction.
In: Accounting
a) The price elasticity of a good is -4.2. What does this mean? What would happen to the total revenue collected if prices were to increase by 10%?
b)The income elasticity of a good is 0.25. What can we conclude about this good? Explain.
c) The cross price of elasticity of a good is -1.5. What can we conclude about this good? Explain.
In: Economics
A government 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
Explanation to the answer please
In: Accounting
(a) Using an appropriate diagram Illustrate and explain the welfare effects of a unit tax on a commodity within the framework of indifference curves analysis
(b) Illustrate on the same diagram, the welfare effects of a lump-sum tax that generates the same amount of tax revenue as in (a). (1.5 marks)
(c). Are the welfare effects the same? Is any of the taxes efficient? Explain why or why not. (1.5 marks)
In: Economics
Define in own words
CHAPTER 5 – Accounting Systems
In: Accounting
| Account Title | Debits | Credits | |
| Cash | 30,000 | ||
| Accounts receivable | 40,000 | ||
| Supplies | 1,500 | ||
| Inventory | 60,000 | ||
| Note receivable | 20,000 | ||
| Interest receivable | 0 | ||
| Prepaid rent | 2,000 | ||
| Prepaid insurance | 0 | ||
| Office equipment | 80,000 | ||
| Accumulated depreciation—office equipment | 30,000 | ||
| Accounts payable | 31,000 | ||
| Salaries and wages payable | 0 | ||
| Note payable | 50,000 | ||
| Interest payable | 0 | ||
| Deferred revenue | 0 | ||
| Common stock | 60,000 | ||
| Retained earnings | 24,500 | ||
| Sales revenue | 148,000 | ||
| Interest revenue | 0 | ||
| Cost of goods sold | 70,000 | ||
| Salaries and wages expense | 18,900 | ||
| Rent expense | 11,000 | ||
| Depreciation expense | 0 | ||
| Interest expense | 0 | ||
| Supplies expense | 1,100 | ||
| Insurance expense | 6,000 | ||
| Advertising expense | 3,000 | ||
| Totals | 343,500 | 343,500 | |
Information necessary to prepare the year-end adjusting entries
appears below.
Depreciation on the office equipment for the year is $10,000.
Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2018, were $1,500.
On October 1, 2018, Pastina borrowed $50,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.
On March 1, 2018, the company lent a supplier $20,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.
On April 1, 2018, the company paid an insurance company $6,000 for a two-year fire insurance policy. The entire $6,000 was debited to insurance expense.
$800 of supplies remained on hand at December 31, 2018.
A customer paid Pastina $2,000 in December for 1,500 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.
On December 1, 2018, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019 at $1,000 per month.
6. Prepare a post-closing trial balance.
In: Accounting
Section 8.1 Expanded: Constructing the nonlinear profit contribution expression Let PS and PD represent the prices charged for each standard golf bag and deluxe golf bag respectively. Assume that “S” and “D” are demands for standard and deluxe bags respectively. S = 2250 – 15PS (8.1) D = 1500 – 5PD (8.2) Revenue generated from the sale of S number of standard bags is PS*S. Cost per unit production is $70 and the cost for producing S number of standard bags is 70*S. So the profit for producing and selling S number of standard bags = revenue – cost = PSS – 70S (8.3) By rearranging 8.1 we get 15PS = 2250 – S or PS = 2250/15 – S/15 or PS = 150 – S/15 (8.3a) Substituting the value of PS from 8.3a in 8.3 we get the profit contribution of the standard bag: (150 –S/15)S – 70S = 150S – S2/15 – 70S = 80S – S2/15 (8.4) Revenue generated from the sale of D number of deluxe bags is PD*D. Cost per unit production is $150 and the cost for producing D number of deluxe bags is 150*D. So the profit for producing and selling D number of deluxe bags = revenue – cost = PDD – 150D (8.4a) By rearranging 8.2 we get 5PD = 1500 – D or PD = 1500/5 – D/5 or PD = 300 – D/5 (8.4b) Substituting the value of PD from 8.4b in 8.4a we get the profit contribution of the deluxe bags: (300 -D/5)D – 150D = 300D – D2/5 – 150D = 150D – D2/5 (8.4c) By adding 8.4 and 8.4c we get the total profit contribution for selling S standard bags and D deluxe bags. Total profit contribution = 80S –S2/15 + 150D – D2/5 (8.5) Reconstruct new objective function for 8.5 by changing “15PS” to “8PS” in 8.1, “5PD” to “10PD” in 8.2, cost per unit standard bag from 70 to “last two digits of your UTEP student ID” and cost per unit deluxe bag from 150 to 125. Keep other parameter values unchanged. Use up to 2 decimal points accuracy. Substitute the new expression for 8.5 in the excel solver workbook as explained in the class and solve for the optimal combination values for S and D.
In: Statistics and Probability
1. These items are taken from the financial statements of
Grouper Corporation for 2022.
|
Retained earnings (beginning of year) |
$33,280 | |
|
Utilities expense |
2,110 | |
|
Equipment |
68,280 | |
|
Accounts payable |
22,570 | |
|
Cash |
15,070 | |
|
Salaries and wages payable |
5,840 | |
|
Common stock |
12,000 | |
|
Dividends |
12,000 | |
|
Service revenue |
69,290 | |
|
Prepaid insurance |
6,340 | |
|
Maintenance and repairs expense |
1,690 | |
|
Depreciation expense |
3,490 | |
|
Accounts receivable |
15,970 | |
|
Insurance expense |
2,310 | |
|
Salaries and wages expense |
38,290 | |
|
Accumulated depreciation—equipment |
22,570 |
Prepare a retained earnings statement for the year ended December 31, 2022. (List items that increase retained earnings first.)
2. You are provided with the following information for Ayayai
Enterprises, effective as of its April 30, 2022,
year-end.
|
Accounts payable |
$844 | |
|
Accounts receivable |
910 | |
|
Accumulated depreciation—equipment |
670 | |
|
Cash |
1,370 | |
|
Common stock |
1,200 | |
|
Cost of goods sold |
1,070 | |
|
Depreciation expense |
325 | |
|
Dividends |
335 | |
|
Equipment |
2,520 | |
|
Income tax expense |
175 | |
|
Income taxes payable |
145 | |
|
Insurance expense |
220 | |
|
Interest expense |
410 | |
|
Inventory |
1,067 | |
|
Land |
3,200 | |
|
Mortgage payable |
3,600 | |
|
Notes payable (due March 31, 2023) |
161 | |
|
Prepaid insurance |
70 | |
|
Retained earnings (beginning) |
1,600 | |
|
Salaries and wages expense |
690 | |
|
Salaries and wages payable |
232 | |
|
Sales revenue |
5,200 | |
|
Stock investments (short-term) |
1,290 |
Prepare a retained earnings statement for Ayayai Enterprises for the year ended April 30, 2022. (List items that increase retained earnings first.)
3. These financial statement items are for Pharoah Corporation
at year-end, July 31, 2022.
|
Salaries and wages payable |
$ 3,880 | |
|
Salaries and wages expense |
59,200 | |
|
Supplies expense |
17,000 | |
|
Equipment |
20,300 | |
|
Accounts payable |
4,100 | |
|
Service revenue |
67,800 | |
|
Rent revenue |
9,900 | |
|
Notes payable (due in 2025) |
2,900 | |
|
Common stock |
16,000 | |
|
Cash |
30,900 | |
|
Accounts receivable |
10,880 | |
|
Accumulated depreciation—equipment |
7,600 | |
|
Dividends |
4,000 | |
|
Depreciation expense |
5,600 | |
|
Retained earnings (beginning of the year) |
35,700 |
Prepare an income statement for the year. Pharoah Corporation did not issue any new stock during the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
In: Accounting