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 | $ | 2,291,000 | $ | 3,555,000 | $ | 2,259,400 | |||
| Estimated costs to complete as of year-end | 5,609,000 | 2,054,000 | 0 | ||||||
| Billings during the year | 2,110,000 | 3,736,000 | 4,154,000 | ||||||
| Cash collections during the year | 1,855,000 | 3,500,000 | 4,645,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
rev: 09_15_2017_QC_CS-99734
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
In: Accounting
Goodyear Tire and Rubber Company is the ninth largest tire manufacturer in the world. Here are the sales revenues for the past five years:
|
Year |
Revenue (millions) |
|
1 |
$4,877.9 |
|
2 |
5,065.4 |
|
3 |
5,525.6 |
|
4 |
5,729.8 |
|
5 |
5,499.7 |
a.When might a manager prefer linear trend/double exponential smoothing techniques to moving average/simple exponential smoothing techniques and why? (5 points)
b. Based on MAD for the last three years (years 3, 4, and 5), which method (linear-trend or double-exponential smoothing method with a = 0.4 and b = 0.2 (start with initial estimates S1 = $4,867.90 and T1 = $201.5 for year 1)) provides the better forecasts? Explain. Then, use your selected forecasting method, forecast the revenue for year 6 and year 7.
In: Operations Management
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 |
$ |
2,580,000 |
$ |
4,042,000 |
$ |
2,175,800 |
|||
|
Estimated costs to complete as of year-end |
6,020,000 |
1,978,000 |
0 |
||||||
|
Billings during the year |
2,060,000 |
4,562,000 |
3,378,000 |
||||||
|
Cash collections during the year |
1,830,000 |
4,200,000 |
3,970,000 |
||||||
Westgate recognizes revenue over time according to percentage of
completion.
Required:
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.
|
2018 |
2019 |
2020 |
|||||||
|
Cost incurred during the year |
$ |
2,580,000 |
$ |
3,830,000 |
$ |
3,990,000 |
|||
|
Estimated costs to complete as of year-end |
6,020,000 |
4,160,000 |
0 |
||||||
In: Accounting
Percy Productions has three models: D, E, and F. The following information is available:
| ? | Model D | Model E | Model F |
| Sales revenue | $65,000 | $37,000 | $24,000 |
| Variable expenses | $35,000 | $15,000 | $14,000 |
| Contribution margin | $30,000 | $22,000 | $10,000 |
| Fixed expenses | $16,000 | $16,000 | $16,000 |
| Operating income (loss) | $14,000 | $6000 | -$6000 |
Percy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Assume Percy Productions is able to increase the sales revenue of product F to $32,000 with no change in volume of units sold and no change in variable costs or fixed costs. What effect will this have on operating income?
|
Decrease $24,000 |
||
|
Increase $24,000 |
||
|
Increase $11,000 |
||
|
Decrease $11,000 |
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
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
In: Accounting
REVENUE RECOGNITION
If you sign up for and receive a new phone that would normally
retail for $500 (cost to manufacture $380). We commit to a three
year contract where we will have to pay back an amount that starts
at $600 (to pay for the phone) but drops each month until it
reaches zero at the end of 3 years (kind of like financing for the
phone). We pay an activation fee of $35 along with the first month
of service that will be $70 each month for the next 36 months.
After one year of service, we will be eligible for $100 off the
latest phone if we trade in the one year old phone for a new one.
That rises to $200 after two years.
Show all journal entries needed to show revenue recognition.
In: Accounting
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.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
In: Accounting
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.
Record on page 10 of the journal
| Mar. | 2 | Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,300. |
| 3 | Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000. | |
| 4 | Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200. | |
| 5 | Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,400. | |
| 12 | Received check for amount due from Equinox Co. for sale on March 2. | |
| 14 | Sold merchandise to customers who used American Express cards, $13,700. The cost of the goods sold was $8,350. | |
| 16 | Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $16,000. | |
| 18 | Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900. |
Record on page 11 of the journal
| Mar. | 19 | Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of the goods sold was $5,000. |
| 26 | Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. | |
| 28 | Received check for amount due from Vista Co. for sale of March 19. | |
| 31 | Received check for amount due from Empire Co. for sale of March 4. | |
| 31 | Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under shipping terms of FOB destination. | |
| Apr. | 3 | Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March. |
| 15 | Paid $6,544 to state sales tax division for taxes owed on sales. |
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Amsterdam Supply Co.General Ledger
| ASSETS | |
| 110 | Cash |
| 121 | Accounts Receivable-Empire Co. |
| 122 | Accounts Receivable-Equinox Co. |
| 123 | Accounts Receivable-Targhee Co. |
| 124 | Accounts Receivable-Vista Co. |
| 125 | Notes Receivable |
| 130 | Inventory |
| 131 | Estimated Returns Inventory |
| 140 | Office Supplies |
| 141 | Store Supplies |
| 142 | Prepaid Insurance |
| 180 | Land |
| 192 | Store Equipment |
| 193 | Accumulated Depreciation-Store Equipment |
| 194 | Office Equipment |
| 195 | Accumulated Depreciation-Office Equipment |
| LIABILITIES | |
| 210 | Accounts Payable |
| 216 | Salaries Payable |
| 218 | Sales Tax Payable |
| 219 | Customer Refunds Payable |
| 221 | Notes Payable |
| EQUITY | |
| 310 | Common Stock |
| 311 | Retained Earnings |
| 312 | Dividends |
| 313 | Income Summary |
| REVENUE | |
| 410 | Sales |
| 610 | Interest Revenue |
| EXPENSES | |
| 510 | Cost of Goods Sold |
| 521 | Delivery Expense |
| 522 | Advertising Expense |
| 524 | Depreciation Expense-Store Equipment |
| 525 | Depreciation Expense-Office Equipment |
| 526 | Salaries Expense |
| 531 | Rent Expense |
| 533 | Insurance Expense |
| 534 | Store Supplies Expense |
| 535 | Office Supplies Expense |
| 536 | Credit Card Expense |
| 539 | Miscellaneous Expense |
| 710 | Interest Expense |
In: Accounting
Data: Life satisfaction among sport coaches. Drakou, Kambitsis, Charachousou, and Tzetzis (2006) tested differences in life satisfaction among sport coaches. They tested differences by sex, age, marital status, and education. The results of each test in the following table are similar to the way in which the data were given in their article.
Which factors were significant at a .05 level of significance?
State the number of levels for each factor.
|
Independent Variables |
Life Satisfaction |
||||
|
M |
SD |
F |
p |
||
|
Sex |
0.68 |
.409 |
|||
|
Men |
3.99 |
0.51 |
|||
|
Women |
3.94 |
0.49 |
|||
|
Age |
3.04 |
.029 |
|||
|
20s |
3.85 |
0.42 |
|||
|
30s |
4.03 |
0.52 |
|||
|
40s |
3.97 |
0.57 |
|||
|
50s |
4.02 |
0.50 |
|||
|
Marital status |
12.46 |
.000 |
|||
|
Single |
3.85 |
0.48 |
|||
|
Married |
4.10 |
0.50 |
|||
|
Divorced |
4.00 |
0.35 |
|||
|
Education |
0.82 |
.536 |
|||
|
High school |
3.92 |
0.48 |
|||
|
Postsecondary |
3.85 |
0.54 |
|||
|
University degree |
4.00 |
0.51 |
|||
|
Masters |
4.00 |
0.59 |
|||
In: Statistics and Probability