(Silberberg, Problem 4.108) Ammonium nitrate, a common fertilizer, is used as an explosive in fireworks and by terrorists. In 2006, the RCMP set up a sting operation in Toronto where they arrested 18 members of an alleged terrorist cell who had ordered three metric tonnes (1 tonne = 1000 kg) of ammonium nitrate. If this quantity of ammonium nitrate decomposes explosively to nitrogen, oxygen, and water vapour, calculate the partial pressures (in atm) of each gas formed.

Balance sheet

December 31

Assets 2007 2006

Cash $25,000 $40,000

Short term investments 15,000 60,000

Accounts receivable 50,000 30,000

Inventory 50,000 70,000

Property, plant and equipment (net) 160,000 200,000

Total assets $300,000 $400,000

Liabilities and stockholders equity

Accounts payable $20,000 $30,000

Short term notes payable 40,000 90,000

Bonds payable 80,000 160,000

Common stock 60,000 45,000

Retained earnings 100,000 75,000

Total liabilities and stockholders equity $300,000 $400,000

Income statement (for the year ended December 31, 2007)

Net sales $360,000

Cost of goods sold 184,000

Gross profit 176,000

Expenses

Selling expenses 30,000

Administrative expenses 59,000

Total expenses 89,000

Income before interest expense and taxes 87,000

Interest expense 12,000

Income before income taxes 75,000

Income tax expense 30,000

Net income $45,000

Additional information

1. 120,000 shares were outstanding in 2007:90,000 shares were outstanding in 2006
2. Market value of common stock on December 31, 2007 was $12 per share.

1. Working capital
2. Current Ratio
3. Quick ratio
4. Cash ratio

Consider the unadjusted trial balance of London, Inc., at December 31, 2007, and the related month-end adjustment data. London, Inc., December 31, 2007 Unadjusted trial balance Accounts Dr. Cr. Cash 19,200 Account receivable 11,600 Supplies 2,200 Prepaid rent 2,400 Equipment 81,000 Accumulated depreciation- equipment 4,000 Accounts payable 3,700 Unearned service revenue 1,500 Tax payable 2,000 Salary payable 5,300 Share capital 60,000 Retained earning 28,500 Dividend 5,000 Service revenue 34,000 Salary expenses 2,700 Depreciation expenses 1,800 Supplies expenses 9,600 Rent expenses 3,500 Total 139,000 139,000 Adjustment data on December 31, 20X7: 1. Unearned service revenue that has been earned is 70%. 2. The company pays employees each Friday. The amount of the weekly payroll is $10,000 for a five-day work week. The current accounting period ends on Tuesday. 3. Supplies on hand, $1,300 4. Payment for rent during the year, $2,000. Prepaid rent ending $3,000. 5. Service revenue of $6,000 has been earned but not yet received. 6. The equipment was purchased on July 1, 20X7. The equipment’s useful life is five years. There is a residual value of $3,000. Record the depreciation. Required: 1- Prepare adjusting entries for these transactions at December 31, 20X7, for each situation. Consider each fact separately. Omit the explanation. 2- Prepare an income statement for the year ended Dec. 31, 20X7 (after updating the accounts)

The trial balance follows of the Larkspur, Inc. as at December 31. The books are closed annually on December 31.

Instructions: A)Enter the balances in ledger accounts.

B) From the trial balance and the information that follows, prepare annual adjusting entries.

C) Post annual adjusting entries to the ledger accounts: (Post entries in the order of journal entries presented in the previous part.)

I need this question answered assuming that Westgate Construction's contract with Santa Clara County does NOT qualify for revenue recongnition over time... In 2016, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2018. Information related to the contract is as follows:

1. You are required to prepare the Sales price variance and Revenue sales quantity variance by taking any of your choice Saudi based company and suggest the suitable reasons for the variances. (3 Points)

Answer:

Playground Steel Factory is a leading manufacturer and supplier of Restaurant Seating, Tables & Other related Furniture, Indoor & Outdoor Playgrounds for Restaurants, Public & Private Parks, Public Houses, Hospitals, Schools and Furniture Seating for Shopping Centers, Sun Shades & Car Shades in the whole Kingdom of Saudi Arabia and Middle East Countries.

The Factory expected to sell 50,000 units from one of its products "Hospital seats" during 2018, the following is the planned sales and variable costs for 2018.

Sales (50,000 units)                      SR 3,000,000

Variable costs                                  1,750,000

During the year, a competitor came out with a similar hospital seats at a lower price. Management reacted by dropping its selling price for the hospital seat, but the actual sales dropped to 45,000 units at 55 SR per seat.

The cost accounting department prepare the sales price variance and revenue sales quantity variance.

Question 1) All else held constant, which of the following actions would increase the amount of cash on a company’s balance sheet?

a) The company buys new equipment on credit terms.

b) The company gives customers less time to pay their bills.

c) The company repurchases common stock.

d) The company pays a dividend.

e) None of the above.

Question 2) Which of the following items is not normally considered to be a current asset or current liability?

a) Accounts receivable.

b) Note payable due in 18 months.

c) Inventory.

d) Accounts payable.

e) None of the above.