Question Preparing a bank reconciliation
Hardy Photography’s checkbook lists the following:
Date Check No. Item Check Deposit Balance
Nov. 1 $ 500
4 622 Quick Mailing $ 45 455
9 Service Revenue $ 135 590
13 623 Photo Supplies 85 505
14 624 Utilities 45 460
18 625 Cash 50 410
26 626 Office Supplies 110 300
28 627 Upstate Realty Co. 290 10
30 Service Revenue 1,235 1,245
Hardy’s November bank statement shows the following:
Learning Objective 6
1. Adjusted Balance $1,137
Balance
Deposits
Checks: No. Amount
622 $ 45
623 85
624 105*
625 50
Other charges:
Printed checks
Service charge
Balance
*This is the correct amount for check number 624.
$ 500
135
(285)
(48)
$ 302
23
25
Requirements
1. Prepare Hardy Photography’s bank reconciliation at November 30, 2018.
2. How much cash does Hardy actually have on November 30, 2018?
3. Journalize any transactions required from the bank reconciliation.
In: Accounting
Suppose the market for corn in Banana Republic is competitive. The market demand function for corn is Qd = 10 − 0.5P and the market supply function is Qs = P − 2, both measured in billions of bushels per year.
(a) Calculate the equilibrium price and quantity.
(b) At the equilibrium at part (1a), what is the consumer surplus? producer sur- plus? dead weight loss? Show all of those numerically and graphically.
(c) Suppose the government imposes an specific tax of $6 per unit to raise govern- ment tax revenue. Analyze the problem by shifting the demand curve. What will the new equilibrium quantity be? What price will buyers pay? What price will sellers receive? Show all of those numerically and graphically. Calculate the consumer surplus, producer surplus, government tax revenue and DWL.
(d) Suppose the government imposes a price floor of $10 per bushel.What will the new equilibrium quantity be? What is consumer surplus? producer surplus? dead weight loss? Show all of these numerically and graphically.
(e) Suppose the government imposes a price ceiling of $6 per bushel.What will the new equilibrium quantity be? What is consumer surplus? producer surplus? dead weight loss? Show all of these numerically and graphically.
In: Economics
As a long-term investment, Painters' Equipment Company purchased
20% of AMC Supplies Inc.'s 470,000 shares for $550,000 at the
beginning of the fiscal year of both companies. On the purchase
date, the fair value and book value of AMC’s net assets were equal.
During the year, AMC earned net income of $320,000 and distributed
cash dividends of 20 cents per share. At year-end, the fair value
of the shares is $582,000.
1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.
Record any necessary year-end adjusting journal entry when the fair value of the shares held are $582,000 at year-end.
Help me with the name for the credit part. The correct answer is
Dr. Fair value adjustment 320,000
Cr, ? ( unrealized holding gain or loss - OCI is incorrect) 320,000
2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.
Help me with the name for the credit part. The correct answer is
Dr. Cash 18,800
Cr, ? ( Dividend revenue and interest revenue is incorrect) 18,800
In: Accounting
Crane Company has provided information on intangible assets as
follows.
A patent was purchased from Ford Company for $2,559,000 on January
1, 2016. Crane estimated the remaining useful life of the patent to
be 10 years. The patent was carried in Ford’s accounting records at
a net book value of $1,822,000 when Ford sold it to Crane.
During 2017, a franchise was purchased from Polo Company for
$545,000. In addition, 4% of revenue from the franchise must be
paid to Polo. Revenue from the franchise for 2017 was $2,505,000.
Crane estimates the useful life of the franchise to be 10 years and
takes a full year’s amortization in the year of purchase.
Crane incurred research and development costs in 2017 as
follows.
| Materials and equipment |
$144,200 |
|
| Personnel |
185,200 |
|
| Indirect costs |
103,500 |
|
|
$432,900 |
Crane estimates that these costs will be recouped by December 31,
2020. The materials and equipment purchased have no alternative
uses.
On January 1, 2017, because of recent events in the field, Crane
estimates that the remaining life of the patent purchased on
January 1, 2016, is only 5 years from January 1, 2017
Prepare the income statement effect (related to expenses) for the year ended December 31, 2017, as a result of the facts above
In: Accounting
a. In the hotel industry, package rate refers to a...
| A. | room sold using a fade rate. | |
| B. | rooms that is sold at full or "rack" rate. | |
| C. | group of hotel products and service sold for one price. | |
| D. | rooms rate discount offered to members of a consortium. |
b. Which is the best description of an individual hotel's competitive set?
| A. | Hotels located in close proximity to the individual hotel | |
| B. | Hotels that offer the same rate as the individual hotel | |
| C. | Hotels with the same brand affiliation as the individual hotel | |
| D. | Hotels with which the individual hotel directly competes |
c. In the short run, when room supply is held constant...
| A. | changes in room demand will not affect the selling prices of rooms. | |
| B. | a decrease in demand for rooms typically leads to a decreased selling price. | |
| C. | a decrease in demand for rooms typically leads to an increase in selling price. | |
| D. | an increase in demand for rooms typically leads to a decreased selling price. |
d. GOPPAR is best defined as hotel's...
| A. | revenue less management controllable costs per available room. | |
| B. | ADR x RevPAR x Occupancy % | |
| C. | revenue less management controllable costs per sold room. | |
| D. | ADR x RevPAR |
In: Operations Management
Consider the milestones that must be achieved
to reduce the cost of the health insurance being provided. Provide
a timeline that is realistic.
Consider the following case: Plumeria Inc. is a local employer of more than 5,000 employees that manufactures metal parts for automobiles. It provides health insurance for its employees and their families. Over the last five years, the premium costs of the insurance have been rising at an average rate of 30 percent annually. Next year, the premium is expected to rise another 28 percent. Health benefits now account for more than 30 percent of the cost structure. The operating margin for the company is 3 percent per year. Revenue growth during the same period has been 8 percent per year. Health costs have grown faster than revenue growth. The company's chief financial officer has advised that next year's budget will show a 1 percent margin, and if the cost structure does not improve, the company will operate at a loss in two years. Leadership has identified that, along with a general cost-cutting strategy, a targeted reduction in healthcare costs is critical to ensure sustainability and profitability. You are the company's chief human resources officer.
In: Operations Management
Buhler Industries is a farm implement manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight tractors. Buhler plans to use a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incomplete incremental free cash flow projections (in millions of dollars):
|
Free Cash Flow ($000,000s) |
Year 0 |
Years
1–9 |
Year 10 |
|
Revenues |
102.00 |
102.00 |
|
|
−Manufacturing expenses (other than depreciation) |
−38.00 |
−38.00 |
|
|
−Marketing expenses |
−10.00 |
−10.00 |
|
|
−CCA |
? |
? |
|
|
equals=EBIT |
? |
? |
|
|
−Taxes (35%) |
? |
? |
|
|
=Unlevered net income |
? |
? |
|
|
+CCA |
? |
? |
|
|
−Increases in net working capital |
−5.00 |
−5.00 |
|
|
−Capital expenditures |
−151.00 |
||
|
+Continuation value |
10.00 |
||
|
=Free cash flow |
minus−151.00151.00 |
? |
? |
The relevant CCA rate for the capital expenditures is 20%. Assume assets are never sold.
a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight tractors?
b. Based on input from the marketing department, Buhler is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are 10% higher than forecast? What is the NPV of this project if revenues are 10% lower than forecast?
In: Accounting
In: Math
Presented below is the trial balance of Pharoah Corporation at December 31, 2020.
Cash $265,500
Sales Revenue $10,935,000
Debt Investments (trading) (at cost, $218,000) 207,000
Cost of Goods Sold 6,480,000
Debt Investments (long-term) 403,200
Equity Investments (long-term) 374,400
Notes Payable (short-term) 121,500
Accounts Payable 613,800
Selling Expenses 2,700,000
Investment Revenue 85,500
Land 351,000
Buildings 1,404,000
Dividends Payable 183,600
Accrued Liabilities 129,600
Accounts Receivable 586,800
Accumulated Depreciation–Buildings 205,200
Allowance for Doubtful Accounts 34,200
Administrative Expenses 1,215,000
Interest Expense 285,300
Inventory 805,500
Gain 108,000
Notes Payable (long-term) 1,215,000
Equipment 810,000
Bonds Payable 1,350,000
Accumulated Depreciation–Equipment 81,000
Franchises 216,000
Common Stock ($5 par) 1,350,000
Treasury Stock 258,300
Patents 263,700
Retained Earnings 105,300
Paid-in Capital in Excess of Par 108,000
Totals $16,625,700 $16,625,700
Compute each of the following:
1. Total current assets
2. Total property, plant, and equipment
3. Total assets
4. Total Liabilities
5. Total stockholders’ equity
In: Accounting
Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $60,000 per year. Jane employs a maintenance person at an annual salary of $32,000 and a cleaning person at an annual salary of $24,000. Real estate taxes are $10,000 per year. The rooms rent at an average price of $60 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $10 per person per night and the cost of food which is $5 per person per night.
Instructions (a) Determine the number of rentals and the sales revenue Jane needs to break even using the contribution margin technique.
(b) If the current level of rentals is 3,500, by what percentage can rentals decrease before Jane has to worry about having a net loss?
(c) Jane is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $3 for food costs per person per night. Jane feels she can increase the room rate to $66 per person per night. Determine the number of rentals and the sales revenue Jane needs to break even if the changes are made.
In: Accounting