A: Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question. Round answers to 0 decimal places, e.g. 5,275.)

The Skyline Motel opened for business on May 1, 2017. Its trial balance before adjustment on May 31 is as follows.

In addition to those accounts listed on the trial balance, the chart of accounts for Skyline Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

Logan Krause started her own consulting firm, Krause Consulting, on May 1, 2017. The trial balance at May 31 is as follows.

In addition to those accounts listed on the trial balance, the chart of accounts for Krause Consulting also contains the following accounts and account numbers: No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense, No. 717 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expense.

Other data:

Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances.

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made.

The pizzeria’s cost formulas appear below:

In November, the pizzeria budgeted for 1,860 pizzas at an average selling price of $17 per pizza and for 240 deliveries.

Data concerning the pizzeria’s actual results in November appear below:

1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (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.)

The Asian GardenAsian Garden​, a local Thai​ restaurant, expects sales to be $780,000 in January. Its average customer restaurant bill is $65. Only 20% of the restaurant bills are paid with​ cash; 50% are paid with credit cards and 30% with debit cards. The transaction fees charged by the credit and debit card issuers are as​ follows:

Arctic Guide Service provides guided 1–5 day hiking tours throughout the Arctic Mountains. Jungle Tours hires Arctic to lead various tours that Jungle sells. Arctic receives $2,000 per tour day, and shortly after the end of each month Arctic learns whether it will receive a $200 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of “excellent” by Jungle customers. The $2,000 per day and any bonus due are paid in one lump payment shortly after the end of each month.

• On July 1, based on prior experience, Arctic estimated that there is a 30% chance that it will earn the bonus for July tours. It guided a total of 8 days from July 1–July 15.
• On July 16, based on Arctic’s view that it had provided excellent service during the first part of the month, Arctic revised its estimate to an 80% chance it would earn the bonus for July tours. Arctic also guided customers for 12 days from July 16–July 31.
• On August 5 Arctic learned that it did not receive an average evaluation of “excellent” for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours.

Arctic bases estimates of variable consideration on the most likely amount it expects to receive.

Required:

1. Prepare Arctic’s July 15 journal entry to record revenue for tours given from July 1–July 15.
2. Prepare Arctic’s July 31 journal entry to record revenue for tours given from July 16–July 31.
3. Prepare Arctic’s August 5 journal entry to record any necessary adjustments to revenue and receipt of payment from Jungle.

Question 1.

juanma Party Supplies Co. is creating its budget for the second quarter of the upcoming year.

Revenue estimates are $1,495,000 for April, $1,430,000 for May, and $1,560,000 for June. While markups on individual items vary, the company controller estimates that the average selling price exceeds the average purchase cost by 25%. In terms of inventory, Juanma tries to maintain merchandise on hand at the end of one month equal to 20% of the cost of goods sold for the next month.

In addition to the cost of goods purchased, Juanma budgets 80 hours of labor, at a cost of $10 per hour, for every $10,000 of revenue. Many stores adjust the number of checkout clerks, stock people, and other labor costs based on actual sales, which influences the volume of workers needed. Juanma ’s supervisory staff costs $25,500 per month and rent and utilities amount to $38,000 per month. All other expenses, including $12,000 for depreciation on store fixtures, amount to $74,000 per month.

Prepare the master budget information for May—that means:

1) Purchases budget for May (Hint: for the May purchases budget, you will have to use the CGS baby formula to back into amounts for beginning inventory)

2) Direct labor budget for May

3) Budgeted income statement for May

4) Budget cash budget, using these assumptions in addition to what you computed above:

-Juanma collects 90% of its revenue in the month of sale and the balance in the following month.

-Juanma pays for 75% of its purchases in the month of purchase and the balance in the following month

-In May, Juanma intends to purchase and pay for new display units costing 24,000.

-Beginning cash balance for May is forecasted to be $25,000. Normally Juanma maintains a cash balance of $25,000.

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $15,700; cost of goods sold, $6,400; selling expenses, $1,320; general and administrative expenses, $820; interest revenue, $80; interest expense, $200. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount. Investments were sold during the year at a loss of $240. Schembri also had an unrealized gain of $360 for the year on investments in debt securities that qualify as components of comprehensive income. One of the company’s factories was closed during the year. Restructuring costs incurred were $1,400. During the year, Schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of $580 in 2021 prior to the sale, and its assets were sold at a gain of $1,440. In 2021, the company’s accountant discovered that depreciation expense in 2020 for the office building was understated by $220. Negative foreign currency translation adjustment for the year totaled $260.

Required:
1. Prepare Schembri’s single, continuous multiple-step statement of comprehensive income for 2021, including earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares were issued on July 1, 2021.
2. Prepare a separate statement of comprehensive income for 2021.

Bratt Plumbing Company had the following transactions for June.

For each transaction, prepare a basic analysis and a debit/credit analysis. (If no entry is required, select "No Entry" for the specific accounts and enter 0 for the amounts, leave other fields blank.)

Options

Basic type: Revenue / Liability / Owner's Equity / Asset / Drawings / Expense

Increase/decrease: Increase / Decrease

Specific Account:  Accounts Payable / Accounts Receivable / Advertising Expense / Cash / D. Bratt, Capital / D. Bratt, Drawings / Equipment / Insurance Expense / No Entry / Notes Payable / Prepaid Insurance / Rent Expense / Salaries Expense / Service Revenue / Supplies / Unearned Revenue / Utilities Expense / Vehicles

1.  

Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 4,300 tenant-days, but its actual level of activity was 4,340 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:

Data used in budgeting:

Actual results for March:

The revenue variance for March would be closest to:

2. (4)  

Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $59,900 per month plus $3,248 per flight plus $11 per passenger. The company expected its activity in November to be 85 flights and 258 passengers, but the actual activity was 88 flights and 260 passengers. The actual cost for plane operating costs in November was $337,780. The spending variance for plane operating costs in November would be closest to:

3. (8)

The following labor standards have been established for a particular product:

The following data pertain to operations concerning the product for the last month:

What is the labor rate variance for the month?

home / study / business / finance / finance questions and answers / ashley runs a small business, in boulder colorado. she expects the business to grow substantially ... Your question has been answered Let us know if you got a helpful answer. Rate this answer Question: Ashley runs a small business, in Boulder Colorado. She expects the business to grow substantially... Ashley runs a small business, in Boulder Colorado. She expects the business to grow substantially over the next three years. Because she is concerned about product liability and is planning to take the company public in year 2 she is considering incorporating the business.The financial data is as follows: Year 1 - Sales revenue = 150,000 tax-free interest= 5,000 deductible cash expenses= 30,000 tax depreciation= 25,000 Year 2 sales revenue= 320,000 tax-free interest= 8,000 deductible cash expenses= 58,000 tax depreciation= 20,000 Year 3 sales revenue= 600,000 tax free interest= 15,000 deductible cash expenses= 95,000 tax depreciation= 40,000. Ashley expects her combined Federal and state marginal income tax rate to be 35% over the three years before any profits from the business are considered. Her after-tax cost of capital is 12%. a.) Considering only this data, compute the present value of the future cash flows for the three-year period, assuming Ashley incorporates the business and pays all after-tax income as dividends (for Ashley's dividends that qualify for the 15% rate). b.) Considering only this data, compute the present value of the future cash flows for the period, assuming Ashley continues to operate the business as a sole proprietorship. c.) Should Ashley incorporate the business in year 1? Why or why not? I need the answer to question b and c