AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:
| Fixed Component per Month |
Variable Component per Job |
Actual Total for February |
|||||||
| Revenue | $ | 277 | $ | 36,030 | |||||
| Technician wages | $ | 8,400 | $ | 8,250 | |||||
| Mobile lab operating expenses | $ | 4,900 | $ | 33 | $ | 9,360 | |||
| Office expenses | $ | 2,300 | $ | 3 | $ | 2,570 | |||
| Advertising expenses | $ | 1,580 | $ | 1,650 | |||||
| Insurance | $ | 2,880 | $ | 2,880 | |||||
| Miscellaneous expenses | $ | 940 | $ | 1 | $ | 385 | |||
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $9,360. The company expected to work 140 jobs in February, but actually worked 142 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (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.)
In: Accounting
On February 1, 2021, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,175,000. During 2021, costs of $2,070,000 were incurred, with
estimated costs of $4,070,000 yet to be incurred. Billings of
$2,584,000 were sent, and cash collected was $2,320,000.
In 2022, costs incurred were $2,584,000 with remaining costs
estimated to be $3,705,000. 2022 billings were $2,834,000, and
$2,545,000 cash was collected. The project was completed in 2023
after additional costs of $3,870,000 were incurred. The company’s
fiscal year-end is December 31. This project does not qualify for
revenue recognition over time.
Required:
1. Calculate the amount of revenue and gross
profit or loss to be recognized in each of the three years.
2a. Prepare journal entries for 2021 to record the
transactions described (credit "various accounts" for construction
costs incurred).
2b. Prepare journal entries for 2022 to record the
transactions described (credit "various accounts" for construction
costs incurred).
3a. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2021.
3b. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2022.
In: Accounting
Selected accounts of Olsevik Janitorial; Supplies, at July 31, 2017, are listed in alphabetical order below. For simplicity, all operating expenses are summarized in the Selling Expenses account and General Expenses account. Olsevik Janitorial Supplies used to periodic inventory system.
AP - 102,000
AR - 117,000
Accumulated Amortization Equipment - 61,500
B. Olsevik, capital - 863,400
B. Olsevik, withdrawals - 42,300
Cash - 46,200
Equipment - 484,000
General Expenses - 284,250
Interest Expense - 10,200
Interest Payable - 8,800
Interest Revenue - 1,500
Inventory (July 31/16) - 730,000
Inventory (July 31/17) - 525,000
Notes payable, long term - 500,000
Purchases - 1,361,000
Salaries Payable - 23,000
Salaries Discounts - 25,000
Sales Returns & Allowances - 52,800
Sales Revenue - 1,891,200
Selling Expenses - 317,250
Supplies - 16,200
Unearned SR - 34,800
1. Prepare the business's single step income statement for the
year ended July 31, 2017.
2. Prepare the statement of owner's equity at July 31, 2017
3. Prepare classified balance sheet in report format at July 31,
2017
In: Accounting
|
Iowa Development (ID) made the following land sales and had the following cash collections: 2012 sold Altoona land for 2,000,000 that cost ID $1,200,000. The land agreement required payments of $1,000,000 within one week of occupancy of the land, and the other $1,000,000 in 2013 ID received the $1,000,000 payment. 2013 Sold Boone land for $2,400,000 that cost ID $1,200,000. The land agreement required payments of $800,000 within one week of occupancy of the land and additional payments of $800,000 in 2014 and 2015. ID received the $800,000 payment and also a $500,000 payment for the Altoona land. |
|
|
Assume ID can estimate uncollectible accounts accurately,
accrues bad debts at 5% of sales, and recognizes revenue upon
transfer of title. |
|
In: Accounting
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:
| Fixed Component per Month |
Variable Component per Job |
Actual Total for February |
|||||||
| Revenue | $ | 276 | $ | 27,610 | |||||
| Technician wages | $ | 8,400 | $ | 8,250 | |||||
| Mobile lab operating expenses | $ | 4,700 | $ | 31 | $ | 7,950 | |||
| Office expenses | $ | 2,700 | $ | 4 | $ | 2,990 | |||
| Advertising expenses | $ | 1,600 | $ | 1,670 | |||||
| Insurance | $ | 2,850 | $ | 2,850 | |||||
| Miscellaneous expenses | $ | 920 | $ | 2 | $ | 445 | |||
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $31 per job, and the actual mobile lab operating expenses for February were $7,950. The company expected to work 110 jobs in February, but actually worked 112 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (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.)
In: Accounting
On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,400,000. During 2018, costs of $2,160,000 were incurred, with estimated costs of $4,160,000 yet to be incurred. Billings of $2,692,000 were sent, and cash collected was $2,410,000. In 2019, costs incurred were $2,692,000 with remaining costs estimated to be $3,840,000. 2019 billings were $2,942,000, and $2,635,000 cash was collected. The project was completed in 2020 after additional costs of $3,960,000 were incurred. The company’s fiscal year-end is December 31. This project does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. 2a. Prepare journal entries for 2018 to record the transactions described (credit "various accounts" for construction costs incurred). 2b. Prepare journal entries for 2019 to record the transactions described (credit "various accounts" for construction costs incurred). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2018. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019.
In: Accounting
In: Accounting
On February 1, 2021, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,375,000. During 2021, costs of $2,150,000 were incurred, with
estimated costs of $4,150,000 yet to be incurred. Billings of
$2,680,000 were sent, and cash collected was $2,400,000.
In 2022, costs incurred were $2,680,000 with remaining costs
estimated to be $3,825,000. 2022 billings were $2,930,000, and
$2,625,000 cash was collected. The project was completed in 2023
after additional costs of $3,950,000 were incurred. The company’s
fiscal year-end is December 31. This project does not qualify for
revenue recognition over time.
Required:
1. Calculate the amount of revenue and gross
profit or loss to be recognized in each of the three years.
2a. Prepare journal entries for 2021 to record the
transactions described (credit "various accounts" for construction
costs incurred).
2b. Prepare journal entries for 2022 to record the
transactions described (credit "various accounts" for construction
costs incurred).
3a. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2021.
3b. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2022.
In: Accounting
. The Adjusting Company, which opened business on June 1, 2014, have given you a portion of their first adjusted trial balance as of June 30, 2014.
Adjusting Company
Unadjusted Trial Balance
June 30, 2014
Debit Balance Credit Balance
Prepaid Insurance $ 3,600
Supplies 2,450
Unearned Revenue $3,600
a.Regarding; Prepaid Insurance
i.In your own words create an adjusting transaction that will require an adjusting journal entry
ii.Based on your adjusting transaction, prepare the correct journal entry
iii.Based on your journal entry explain how the income statement was effected
b. Regarding; Supplies
i.In your own words create an adjusting transaction that will require an adjusting journal entry
ii.Based on your adjusting transaction, prepare the correct journal entry
iii.Based on your journal entry explain how the balance sheet was effected
c. Regarding; Unearned Revenue
i.In your own words create an adjusting transaction that will require an adjusting journal entry
ii. Assume that the company forgot to prepare an adjusting journal entry for the transaction, explain what is wrong with the balance sheet.
In: Accounting
|
Quantity |
Price |
Total |
Marginal |
Total |
Marginal |
Average |
|
0 |
25 |
0 |
25 |
30 |
— |
— |
|
2 |
24 |
48 |
23 |
35 |
2.5 |
17.5 |
|
4 |
23 |
92 |
21 |
45 |
5 |
11.25 |
|
6 |
22 |
132 |
19 |
60 |
7.5 |
10 |
|
8 |
21 |
168 |
17 |
77 |
8.5 |
9.63 |
|
10 |
20 |
200 |
15 |
100 |
11.5 |
10 |
|
12 |
19 |
228 |
13 |
126 |
13 |
10.5 |
|
14 |
18 |
252 |
11 |
165 |
19.5 |
11.79 |
|
16 |
17 |
272 |
9 |
210 |
22.5 |
13.13 |
|
18 |
16 |
288 |
7 |
260 |
25 |
14.44 |
|
20 |
15 |
300 |
5 |
320 |
30 |
16 |
In: Economics