Inventory records for a company revealed the following:

Date Transaction Number of Units Unit Cost

Apr. 1 Beginning inventory 500 $2.40

Apr. 20 Purchase 400 $2.50

The company sold 700 units of inventory during the month. Cost of goods sold assuming FIFO would be:

If management can estimate the amount of loss that will occur due to litigation against the company, and the likelihood of the loss is reasonably possible, a contingent liability should be

On December 31, 2018, a company had balances in Accounts Receivable of $53,600 (debit) and in Allowance for Uncollectible Accounts of $1,325 (credit). During 2019, the company wrote off $1,465 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $1,280 at December 31, 2019. Bad debt expense for 2019 would be:

On August 10th, a company billed a customer for services that were provided on August 5th. Which of the following should be recorded on August 10th?

An example of an adjusting entry would include:

if you could please post your work/reasoning, that'd be great!! thank you!

The following were selected from among the transactions completed by Babcock Company during November of the current year:

Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.

Must Use

CHART OF ACCOUNTS
Babcock Company General Ledger

2. Which of the following best describes the nature of personal selling?

Multiple Choice

• It involves direct spoken communication between sellers and potential customers.

• It costs less than advertising for reaching a large, widespread market.

• It tries to communicate with many customers at the same time.

• It refers to "promoting" at trade shows, demonstrations, and contests.

• It is less flexible than mass selling

3. .Agent wholesalers are

Multiple Choice

• mainly concerned with buying and selling.

• used by small companies that want a wholesaler to assume all of the risk of carrying inventory.

• specialists in certain geographic areas, rather than specializing by product or customer type.

• at a disadvantage because manufacturers expect them to pay for products before they are shipped.

• None of these answers is correct.

4. While reviewing this month's numbers, a retail manager noticed that the stockturn rate was much higher than last month. What does this mean?

Multiple Choice

• Product is selling more quickly this month than last.

• Product is selling less quickly this month compared to last.

• Their costs have risen.

• Their profits have declined.

• None of these answers relates to stockturn rate.

5. A tire manufacturer currently produces tires in small quantities as they are ordered. The company learns that it can reduce costs significantly by producing one type of tire at a time in large quantities and storing its unsold tires for later sale. Should the company switch to large quantity production?

Multiple Choice

• No, because this will prevent the company from providing tires as they are ordered.

• No, because this will cause the company to incur unexpected transportation costs.

• Yes, because this will help the company in achieving economies of scale in production.

• Yes, because this will allow the company to utilize JIT delivery systems.

• No, because this will not enable the company to improve its production speed per tire.

6. Which of the following statements about just-in-time delivery is FALSE?

Multiple Choice

• Just-in-time shifts greater responsibility for physical distribution backward in the channel.

• Just-in-time reduces storing and handling costs for everyone in the channel.

• Just-in-time increases the coordination needed among channel members.

• Just-in-time reduces storing and handling costs for business customers.

7. Exclusive distribution

Multiple Choice

• should generally be used only if it is not possible to generate intermediary interest in intensive distribution.

• is legal as long as it does not involve vertical channel arrangements.

• is an arrangement between a producer and intermediary that is illegal for most types of products in the United States; thus it is not very common.

• usually involves intermediaries who are willing to take over all responsibility for promoting the producer's product.

• None of these answers is correct.

Analyzing Operating Cash Flows (Direct Method)
Lincoln Company owns no plant assets and reported the following income statement for the current year:

Calculate the net cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense.

Compute its operating cash flow to current liabilities (OCFCL) ratio. (Assume current liabilities consist of accounts payable and wages payable.)

Round answer to two decimal places.

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company’s operations in July appear below:

The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount.

Required:

1. Complete the flexible budget performance report abstract for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Early Payment Discount

Jones Equipment is a private company that sells and installs HVAC systems. Jones offers payment term of 2/10, n/30 where customers making payment within 10 days of installation will receive a discount of 2% off the purchase price or must pay the full balance due within 30 days. Jones has just received payment from a new customer who paid within the 10-day window and is thus entitled to the 2% discount. The gross sales price of the equipment and installation, before discount, was $10,000. This discount will not result in a loss to Jones on the sale of the product and service. Jones need your help to determine when the 2% early-payment discount should be recognized and how it should be recorded – for example, as a reduction in revenue or as a cost of sales?

1. Citing from the guidance support, show the approximate journal entries that Jones would make upon installation of the equipment and upon receipt of customer payment.
2. Explain how you located the relevant guidance, including the search method used and which section you searched within the appropriate topic.

Analyzing Operating Cash Flows (Direct Method)

Lincoln company owns no plant assets and reported the following income statement for the current year:

Calculate the net cash flow from operating activities using the direct method. show a related cash flow for each revenue and expense.

Compute its operating cash flow to current liabilities (OCFCL) ratio. (Assume current liabilities consist of accounts payable and wages payable.)

Round answer to two decimal places.

1. The following differences enter into the reconciliation of financial income and taxable income of Abbott Company for the year ended December 31, 2020, its first year of operations. The enacted income tax rate is 20% for all years. Pretax accounting income $800,000 Excess tax depreciation (480,000) Litigation accrual 70,000 Unearned rent revenue deferred on the books but appropriately recognized in taxable income 60,000 Interest income from New York municipal bonds (20,000) Taxable income $430,000

1. Excess tax depreciation will reverse equally over a four-year period, 2021-2024.

2. It is estimated that the litigation liability will be paid in 2024.

3. Rent revenue will be recognized during the last year of the lease, 2024.

4. Interest revenue from the New York bonds is expected to be $20,000 each year until their maturity at the end of 2024.

(c)   Since this is the first year of operations, there is no beginning deferred tax asset or liability. Compute the net deferred tax expense (benefit).

(d)   Prepare the journal entry to record income tax expense, deferred taxes, and the income taxes payable for 2020.

Below is an alphabetical list of the adjusted accounts of Cullumber Tour Company at its year end, December 31, 2021. All accounts have normal balances.

Additional information:

a) Prepare closing journal entries and calculate the post-closing balance in F. Cullumber, Capital on December 31, 2021.

b) Prepare a classified balance sheet. (List Current Assets in order of liquidity.)

a.
An apartment owner receives a deposit of? $1200 equal to one? month's rent.
b.
An insurance company receives annual premiums for fire insurance on June 25 for coverage beginning July 1.
c.
A city transit authority issues? 200,000 monthly passes at? $80 each for sale at various retailers. Retailers act as consignees for these passes.
d.
A city transit authority sells? 50,000 monthly passes at? $80 each to transit riders at its own retail? offices/stores.
e.
A provincial lottery corporation delivers 10 million? scratch-and-win cards to retailers. The cards retail for? $2 and generate a commission of? $0.20 per card for the retailer. The retailer can return unsold cards to the lottery corporation.

1.
Identify the contract with the customer.
2.
Identify the performance obligations.
3.
Determine the transaction price.
4.
Allocate the transaction price to performance obligations.
5.
Recognize revenue in accordance with performance

For each of the preceding? circumstances, identify which revenue recognition? criterion/criteria is/are NOT met at the point of? sale, preventing the recognition of revenue at that time. ?(Italics identify the entity for which you are? accounting.)