Cullumber Windows manufactures and sells custom storm windows for three-season porches. Cullumber also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Cullumber enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,520 and chooses Cullumber to do the installation. Cullumber charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Cullumber $2,050 (which equals the standalone selling price of the windows, which have a cost of $1,110) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Cullumber completes installation on October 15, 2020, and the customer pays the balance due.
Cullumber estimates the standalone selling price of the
installation based on an estimated cost of $430 plus a margin of
10% on cost.
Prepare the journal entries for Cullumber in 2020.
(Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is
required, select "No entry" for the account titles and enter 0 for
the amounts. Round answer to 0 decimal places, e.g.
5,125.)
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Date |
Account Titles and Explanation |
Debit |
Credit |
|
|
Jul. 1, 2020Oct. 15, 2020Sep. 1, 2020 |
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(To record contract entered into) |
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(To record sales) |
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(To record cost of goods sold) |
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(To record payment received) |
eTextbook and Media
List of Accounts
Given uncertainty of finding skilled labor, Cullumber is unable
to develop a reliable estimate for the standalone selling price of
the installation.
Prepare the journal entries for Cullumber in 2020.
(Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is
required, select "No entry" for the account titles and enter 0 for
the amounts.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
|
||||
|
(To record sales) |
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(To record cost of goods sold) |
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(To record payment received) |
In: Accounting
In: Finance
10 points
QUESTION 9
True
False
10 points
QUESTION 10
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The use of big data helps in marketing decision making because it keeps marketing information more “pure” by eliminating other business units from the marketing decision-making process. |
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Big data can help firms react to market conditions more quickly, leading to optimized pricing practices. |
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Data science has helped simplify promotional decisions because it has shown that simple promotions reaching large audiences work the best. |
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Real-time inventory management often helps marketers plan promotional campaigns that are more effective. |
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Big data has been useful in determining what other companies a firm should merge with to be a more effective marketer. |
10 points
QUESTION 11
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The firm’s efforts in creating and placing television and print advertising |
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Creating content for and monitoring consumer actions on the firm’s social media platforms, such as Facebook and Twitter |
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Efforts of the firm to capture consumers no matter where they are |
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Ensuring that consumers can find the firm when they search for information on products and services |
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Creating display advertising, finding websites on which to place such advertising, and ensuring that inquiries made from such advertising are responded to properly. |
10 points
QUESTION 12
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Customers acquired through word-of-mouth avenues are worth twice as much as are those attracted through other channels. |
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According to Intuit co-founder Scott Cook, “A brand is no longer what we tell the consumer it is—it is what consumers tell each other it is.” |
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Social interactions contribute to the retention of existing customers. |
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All of these factors correctly explain the importance of social media for marketers. |
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McKinsey and Company estimates that between 20% and 50% of all purchases are driven primarily by word-of-mouth recommendations. |
In: Operations Management
In July 2020, Delta Air Lines reported earnings for the second quarter of 2020. Delta’s CEO Ed Bastian stated “[d]emand has stalled as the virus has grown...coupled with the quarantine measures”. Delta’s posted a $5.7 billion net loss in the second quarter. Which of the following is correct?
In: Economics
Fernandez Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares $15,000 $21,000 Poley Corp. 2,000 shares 40,000 42,000 Arnold Aircraft 2,000 shares 72,000 60,000 Totals $127,000 $123,000 Correct answer iconYour answer is correct. What should be reported on Fernandez’s December 31, 2020, balance sheet relative to these securities? What should be reported on Fernandez’s 2020 income statement? (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Fernandez Corp. Balance Sheet (Partial) Equity Investments $ 123,000 Income Statement Unrealized Holding Gain or Loss - Income $ 4,000 eTextbook and Media List of Accounts Correct answer iconYour answer is correct. On December 31, 2021, Fernandez’s securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Lindsay Jones, Inc. 1,000 shares $15,000 $20,000 Lindsay Jones, Inc. 2,000 shares 33,000 40,000 Duff Company 1,000 shares 16,000 12,000 Arnold Aircraft 2,000 shares 72,000 22,000 Totals $136,000 $94,000 During the year 2021, Fernandez Corp. sold 2,000 shares of Poley Corp. for $38,200 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company. What should be reported on Fernandez’s December 31, 2021, balance sheet? What should be reported on Fernandez’s 2021 income statement? (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Fernandez Corp. Balance Sheet (Partial) Equity Investments $ 94,000 Fernandez Corp. Income Statement (Partial) Loss on Sale of Investments $ 1,800 Unrealized Holding Gain or Loss - Income 38,000 eTextbook and Media List of Accounts New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct. On December 31, 2022, Fernandez’s securities portfolio consisted of the following common stocks. Security Quantity Cost Fair Value Arnold Aircraft 2,000 shares $72,000 $82,000 Duff Company 500 shares 8,000 6,000 Totals $80,000 $88,000 During the year 2022, Fernandez Corp. sold 3,000 shares of Lindsay Jones, Inc. for $39,900 and 500 shares of Duff Company at a loss of $2,700. What should be reported on the face of Fernandez’s December 31, 2022, balance sheet? What should be reported on Fernandez’s 2022 income statement? (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Fernandez Corp. Balance Sheet (Partial) Equity Investments $ 88,000 Fernandez Corp. Income Statement (Partial) Loss on Sale of Investments $ 10,800 Unrealized Holding Gain or Loss - Income____?
In: Accounting
Please, I need the following indicators for Mexico 2020 and Peru 2020, if you can provide numbers from a trustworthy website.
· Flexibility of Exchange rate: fixed or flexible?
· Size of Current Account Deficit: large or small?
· Size of Budget Deficit: large or small?
· Amount of Foreign Reserves: small or large?
· Amount of Foreign Debt: large or small?
Political Risk: high or low?
In: Economics
Select Corporation was incorporated on January 2, 2020. The following information pertains to Select Corporation’s 2020 common stock transactions. Net income: $330,000. Convertible Preferred stock, 5%, cumulative, 5,000 shares, $10 par value per share. Preferred dividends declared in 2020: $0
Jan. 2 Number of shares authorized . . . . . . . . . . . . . . . . . . . . . 250,000
Jan. 2 Number of shares issued . . . . . . . . . . . . . . . . . . . . . . . . 85,000
Jul. 1 Number of shares reacquired but not canceled . . . . . . . 5,000
Sept. 1 Two‑for‑one stock split
Dec. 1 Reissued shares of treasury stock . . . . . . . . . . . . . . . . . 5,000
| A. |
Weighted Avg Shares outstanding are 165,000 and Basic Earnings Per Share is $2.00/share |
|
| B. |
Weighted Avg Shares outstanding are 165,417 and Basic Earnings Per Share is $2.10/share |
|
| C. |
Weighted Avg Shares outstanding are 165,417 and Basic Earnings Per Share is $1.98/share |
|
| D. |
Weighted Avg Shares outstanding are 165,000 and Basic Earnings Per Share is $1.90/share |
In: Accounting
XYZ Co. began operations on January 1, 2020. Financial statements for 2020 and 2021 contained the following errors:
Dec. 31, 2020 Dec. 31, 2021
Ending inventory $198,000 overstated $219,000 understated
Depreciation expense 126,000 overstated —
No corrections have been made for any of the errors. Ignore income tax considerations.
The total effect of the errors on the balance of XYZ’s retained earnings at December 31, 2021 is overstated or understated by _______
In: Accounting
Orange Co. began operations on January 1, 2020. Financial statements for 2020 and 2021 contained the following errors:
Dec. 31, 2020 Dec. 31, 2021
Ending inventory $198,000 overstated $219,000 understated
Depreciation expense 126,000 overstated —
In addition, on December 31, 2021 fully depreciated equipment was sold for $44,000, but the sale was not recorded until 2022. No corrections have been made for any of the errors. Ignore income tax considerations.
The total effect of the errors on the balance of Orange's retained earnings at December 31, 2021 is understated by _______
In: Accounting
3.
EASTDALE INDUSTRIES INC.
STATEMENT OF INCOME
FOR THE YEAR ENDED MARCH 31, 2020
2020 2019
Sales revenue$1,095,000$750,000
Cost of goods sold 635,100 435,000
Gross profit 459,900 315,000
Expenses
Depreciation 29,520 24,000
Office supplies 2,200 1,600
Salaries and benefits 112,850 102,500
Rent 18,000 18,000
Utilities 27,192 20,200
189,762166,300
Operating income 270,138 148,700
Income tax expense 59,430 32,714
Net income$ 210,708$ 115,986
Additional information:
Unit sales for 2020 and 2019 were 8,760 and 6,000 units, respectively.
Required:
5a) For each cost in the above income statement, identify whether the cost is fixed, variable and mixed with respect to sales volume, and explain how this was determined.
1b) Determine a reasonable cost driver for income tax expense. That is, what is the nature of the activity that would cause income tax expense to vary?
2c) Select one mixed cost and prepare a scattergraph. From the scattergraph, use the visual fit method to determine the total fixed cost and variable cost per unit.
6d) For the remaining mixed costs, determine the fixed and variable component of each cost using the high-low method. Why is the preparation of a scattergraph of no benefit given the information you have available?
2e) Based on your knowledge of depreciation methods from financial accounting, give a reasonable explanation of the cost structure of depreciation expense that you have identified earlier.
7f) Using a contribution format, prepare a budgeted income statement for 2021 if 9,600 units are expected to be sold. Stop at the calculation of operating income, so no income tax expense need be calculated.
In: Accounting