Val’s Hair Emporium is a hair salon. Its unadjusted trial
balance as of December 31, 2017, follows, along with information
about selected accounts.
| Account Name | Debit | Credit | Further Information | |||||
| Cash | $ | 47,500 | As reported on December 31 bank statement. | |||||
| Supplies | 11,900 | Based on count, only $5,100 of supplies still exist. | ||||||
| Prepaid Rent | 17,400 | This amount was paid November 1 for rent through the end of January. | ||||||
| Accounts Payable | $ | 3,400 |
This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $1,400 of utility services through December 31 for which it has not yet been billed. |
|||||
| Wages Payable | 0 | Stylists have not yet been paid $340 for their work on December 31. | ||||||
| Income Tax Payable | 0 | The company has paid last year’s income taxes but not this year’s taxes. | ||||||
| Contributed Capital | 3,900 | This amount was contributed to the company in prior years. | ||||||
| Retained Earnings | 4,700 | This is the balance reported at the end of last year. | ||||||
| Hair Styling Revenue | 189,800 | Customers pay cash when they receive services. | ||||||
| Wages Expense | 38,600 | This is the cost of stylist wages through December 30. | ||||||
| Utilities Expense | 17,900 | This is the cost of utilities through December 15. | ||||||
| Rent Expense | 58,000 | This year’s rent was $5,800 per month. | ||||||
| Supplies Expense | 10,500 | This is the cost of supplies used through November 30. | ||||||
| Income Tax Expense | 0 | The company has an average tax rate of 30 percent. | ||||||
| Totals | $ | 201,800 | $ | 201,800 | ||||
Required:
1. Calculate the (preliminary) unadjusted net income for
the year ended December 31, 2017.
2 Name the five pairs of balance sheet and income statement
accounts that require adjustment.
3 Name the five pairs of balance sheet and income statement accounts that require adjustment.
4. Prepare the adjusting journal entries that are
required at December 31, 2017. (If no entry is required for
a transaction/event, select "No journal entry required" in the
first account field.)
5-a. Calculate the adjusted net income that the
company should report for the year ended December 31, 2017.
5-b. By how much did the adjustments in
requirement (4) cause net income to increase or decrease?
In: Accounting
Val’s Hair Emporium is a hair salon. Its unadjusted trial
balance as of December 31, 2017, follows, along with information
about selected accounts.
| Account Name | Debit | Credit | Further Information | |||||
| Cash | $ | 3,800 | As reported on December 31 bank statement. | |||||
| Supplies | 4,300 | Based on count, only $3,200 of supplies still exist. | ||||||
| Prepaid Rent | 6,000 | This amount was paid November 1 for rent through the end of January. | ||||||
| Accounts Payable | $ | 1,500 |
This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $450 of utility services through December 31 for which it has not yet been billed. |
|||||
| Wages Payable | 0 | Stylists have not yet been paid $150 for their work on December 31. | ||||||
| Income Tax Payable | 0 | The company has paid last year’s income taxes but not this year’s taxes. | ||||||
| Contributed Capital | 2,000 | This amount was contributed to the company in prior years. | ||||||
| Retained Earnings | 900 | This is the balance reported at the end of last year. | ||||||
| Hair Styling Revenue | 75,800 | Customers pay cash when they receive services. | ||||||
| Wages Expense | 29,100 | This is the cost of stylist wages through December 30. | ||||||
| Utilities Expense | 12,200 | This is the cost of utilities through December 15. | ||||||
| Rent Expense | 20,000 | This year’s rent was $2,000 per month. | ||||||
| Supplies Expense | 4,800 | This is the cost of supplies used through November 30. | ||||||
| Income Tax Expense | 0 | The company has an average tax rate of 30 percent. | ||||||
| Totals | $ | 80,200 | $ | 80,200 | ||||
Required:
1. Calculate the (preliminary) unadjusted net income for
the year ended December 31, 2017.
2. Name the five pairs of balance sheet and income statement accounts that require adjustment.
3. Calculate the desired balances for each account listed in the unadjusted trial balance.
4. Prepare the adjusting journal entries that are required at December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
5-a. Calculate the adjusted net income that the company should report for the year ended December 31, 2017.
5-b. By how much did the adjustments in requirement (4) cause net income to increase or decrease?
In: Accounting
Compose a research report on Bar Codes vs. RFID. You
work as an efficiency analyst at one of the largest retail
companies in the world, with multiple stores in every state, as
well as in many other countries. For the past 25 years, the company
has used bar code readers at checkout counters that scan the bar
code on products to determine from a database the price to charge
customers and to keep a record of inventory. The company is
considering replacing the bar codes and bar code readers with RFID.
Analyze and discuss the impact such a change would have on the
company, its suppliers, and its customers. Include in your
discussion any security risks.
Find two examples of RFID readers and compare prices, user reviews,
and features. Are handheld options for RFID readers
available for store clerks to use on the store floor or for
customer checkout? Compile your findings. List the advantages and
disadvantages of implementing RFID. Include information about
reliability and costs.
In: Computer Science
MARKETING DEBATE—Whom Should You Target With New Products?
Some new products experts maintain that getting close to customers through intensive research is the only way to develop successful new products. Other experts disagree and maintain that customers can’t possibly provide useful feedback on what they don’t know and can’t provide insights that will lead to breakthrough products.
If you feel that customer research is not appropriate for this company, identify the research processes that you would use.
In: Operations Management
At the beginning of the first year, the Olympic company issued
10,000 stock options to an executive at an exercise price of US $
45 (convertible to 10,000 ordinary shares), provided that the
executive met the performance requirements and served for 3 years.
On the grant date, the estimated fair value of the stock option
with an exercise price of $ 45 is $ 15. If the exercise price is $
25, the estimated fair value of the option is $ 31. If the revenue
of the Olympic company grows at an average annual rate of 15%
within three years, the execution price will be reduced to $
25.
In the first year, the company's earnings increased by 16%, and it
is expected to continue to grow at this rate in the next two years.
In the second year, the company's profit increased by only 3%, the
company does not expect the profit target to be achieved. In the
third year, the company's earnings increased by 4%. The supervisor
completed three years of service and therefore met the performance
requirements.
Required:
a) Prepare journal entries for Year 1 to Year 3 relating to compensation expense.
b) The executive exercised half of the share options on 3 January of Year 4. The executive did not exercise the remaining share options and the right is lapsed in Year 4. Prepare all journal entries for Year 4 relating to the share options.
In: Accounting
2. Operating loss is 18.000 TL when sales revenue is 420.000 TL and operating income is 108.000 TL when sales revenue is 840.000 TL
By using information above, calculate:
a) Total fixed costs.
b) BEP in TL.
c) Contribution margin ratio.
d) Unit contribution margin if selling price is 300 TL per unit.
e) Operating profit when company sells 3,000 units (selling price is 300 TL per unit).
f) Sales revenue to earn 144.000 TL operating profit.
In: Accounting
Problem 3-5 (Algo) Balance sheet preparation [LO3-2, 3-3]
The following is the ending balances of accounts at June 30,
2021, for Excell Company.
| Account Title | Debits | Credits | |||||
| Cash | $ | 91,000 | |||||
| Short-term investments | 73,000 | ||||||
| Accounts receivable (net) | 288,000 | ||||||
| Prepaid expenses (for the next 12 months) | 40,000 | ||||||
| Land | 83,000 | ||||||
| Buildings | 328,000 | ||||||
| Accumulated depreciation—buildings | $ | 164,000 | |||||
| Equipment | 269,000 | ||||||
| Accumulated depreciation—equipment | 124,000 | ||||||
| Accounts payable | 177,000 | ||||||
| Accrued liabilities | 49,000 | ||||||
| Notes payable | 108,000 | ||||||
| Mortgage payable | 210,000 | ||||||
| Common stock | 140,000 | ||||||
| Retained earnings | 200,000 | ||||||
| Totals | $ | 1,172,000 | $ | 1,172,000 | |||
Additional information:
| a. | Amounts owed by customers | $ | 229,000 | |
| b. | Allowance for uncollectible accounts—trade customers | (12,000 | ) | |
| c. | Nontrade notes receivable (due in three years) | 69,000 | ||
| d. | Interest receivable on notes (due in four months) | 2,000 | ||
| Total | $ | 288,000 | ||
Required:
Prepare a classified balance sheet for the Excell Company at June
30, 2021. (Amounts to be deducted should be indicated by a
minus sign.)
In: Accounting
The number of passengers arriving at a checkout counter of an international airport follows a Poisson distribution. On average, 4 customers arrive every 5-minutes period. The probability that over any 10-minute interval, at most 5 passengers will arrive at the checkout counter is
A:- 0.1221
B:- 0.1250
C:- 0.2215
D:- 0.8088
The number of customers who enter a bank is thought to be Poisson distributed with a mean equal to 10 per hour. What are the chances that 2 or 3 customers will arrive in a 15-minute period?
A:- 0.0099
B:- 0.4703
C:- 0.0427
D:- 0.0053
In: Statistics and Probability
The time required for an automotive center to complete an oil change service on an automobile approximately follows a normal distribution, with a mean of 19 minutes and a standard deviation of 3
minutes.
(a) The automotive center guarantees customers that the service will take no longer than 20
minutes. If it does take longer, the customer will receive the service for half-price. What percent of customers receive the service for half-price?
(b) If the automotive center does not want to give the discount to more than 7% of its customers, how long should it make the guaranteed time limit?
In: Statistics and Probability
A Company’s balance sheet consists primarily of intangible assets causing the Company to have a negative tangible net worth. Revenue is stable and the Company had a net loss. Despite these factors, the Company’s net cash flow from operations has increased. Why?
In: Accounting