An inexperienced bookkeeper prepared the following trial balance
that does not balance.
Prepare a correct trial balance, assuming all account balances are
normal.
|
ORIOLE COMPANY |
||||
| Debit | Credit | |||
| Cash |
$22,410 |
|||
| Prepaid Insurance |
$ 4,700 |
|||
| Accounts Payable |
4,110 |
|||
| Unearned Service Revenue |
4,790 |
|||
| Common Stock |
10,000 |
|||
| Retained Earnings |
6,600 |
|||
| Dividends |
7,140 |
|||
| Service Revenue |
26,800 |
|||
| Salaries and Wages Expense |
12,460 |
|||
| Rent Expense |
5,590 |
|||
|
$39,660 |
$64,940 |
|||
In: Accounting
Given demand curve for Silvana Chocolates Company ( SCC )
QD = 10,000 - 25P.
e. Suppose that the price of SCC rose to P = $250.What would be
the new point-price elasticity of demand? What is total revenue at
this price? What is marginal revenue at this price?
f. Suppose that the supply Curve of SCC is given by the equation QS
= -5,000 + 50P.What is the relationship between quantity supplied
and quantity demanded at a price of $300?
g. In this market, what is the equilibrium price and quantity?
In: Economics
The adjusted trial balance of Norton Company contained the following information. Assume the tax rate is 25%:
Debit Credit
Sales revenue $390,000
Sales returns and allowances $ 10,000
Sales discounts 5,000
Cost of goods sold 200,000
Operating expenses 110,000
Interest revenue 8,000
Interest expense 3,000
Compute Income before income tax
Compute the net income.
Compute the gross profit & rate(%)
Compute the net sales.
Compute income from Operations
In: Accounting
Which of the following is NOT true about Income Statements?
Question 2 options:
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Revenue recognition and the Matching Principle require the recognition of revenue in the time period for which the product or service has been substantially performed. |
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Operating expenses flow the income statement in the period they are incurred, while capital spending is recorded on the balance sheet then depreciated. |
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Nonrecurring items can distort reported earnings in a given period. |
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Analysts only need to track reported income and earnings to evaluate a company. |
In: Finance
Locate the company's most recent financial information. Note that this information may be located in one of two places: the Annual Report to Shareholders or Form 10-K Annual Report to the SEC. Locate the Notes to the Financial Statements. In the first note, Significant Accounting Policies, locate the Revenue Recognition note. How does the accrual accounting/revenue recognition principle affect this company? If the cash basis of accounting were used rather than the accrual basis, how would the results of operations be impacted?
In: Accounting
Foxboro Company experienced an accounting event that affected it balance sheet and income statement in the following way:
Assets: -/+
Liabilities: NA
Equity: NA
Revenue: NA
Expenses: NA
Net Income: NA
Which of the following accounting events could have caused these effects on Foxboro's statements:
a. Purchase raw materials inventory on account
b. Transfer cost from work in process to finished good inventory
c. Recognize revenue from merchandise sold for cash
d. None of the above
In: Accounting
Quiz 4
A manufacturer makes and sales four types of products: Product X, Product Y, Product Z, and Product W.
The resources needed to produce one unit of each product and the sales prices are given in the following Table.
|
Resource |
Product X |
Product Y |
Product Z |
Product W |
|
Steel (lbs) |
2 |
3 |
4 |
7 |
|
Hours of Machine Time (hours) |
3 |
4 |
5 |
6 |
|
Sales Price ($) |
4 |
6 |
7 |
8 |
Formulate an LP that can be used to maximize sales revenue for the manufacturer.
LP Formula
Let Pi be the number of product type i produced by the manufacturer, where i = X, Y, X, and W.
MAXIMIZE 4 PX + 6 PY + 7 PZ + 8 PW
Subject To
2 PX + 3 PY + 4 PZ + 7 PW <= 4600 ! Available Steel
3 PX + 4 PY + 5 PZ + 6 PW <= 5000 ! Available Machine Hours
PX + PY + PZ + PW = 950 ! Total Demand
PW >= 400 ! Product W Demand
PX >=0
PY >=0
PZ >=0
PW >=0
Suppose the sales price of Product Z is decreased by 60¢. What is the new optimal solution to the LP?
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Objective Function Value: |
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PX: |
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PY: |
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PZ: |
|
|
PW: |
In: Advanced Math
Quiz 4
A manufacturer makes and sales four types of products: Product X, Product Y, Product Z, and Product W.
The resources needed to produce one unit of each product and the sales prices are given in the following Table.
|
Resource |
Product X |
Product Y |
Product Z |
Product W |
|
Steel (lbs) |
2 |
3 |
4 |
7 |
|
Hours of Machine Time (hours) |
3 |
4 |
5 |
6 |
|
Sales Price ($) |
4 |
6 |
7 |
8 |
Formulate an LP that can be used to maximize sales revenue for the manufacturer.
LP Formula
Let Pi be the number of product type i produced by the manufacturer, where i = X, Y, X, and W.
MAXIMIZE 4 PX + 6 PY + 7 PZ + 8 PW
Subject To
2 PX + 3 PY + 4 PZ + 7 PW <= 4600 ! Available Steel
3 PX + 4 PY + 5 PZ + 6 PW <= 5000 ! Available Machine Hours
PX + PY + PZ + PW = 950 ! Total Demand
PW >= 400 ! Product W Demand
PX >=0
PY >=0
PZ >=0
PW >=0
Suppose manufacturer raises the price of Product Y by 50¢ per unit. What is the new optimal solution to the LP?
|
Objective Function Value: |
|
|
PX: |
|
|
PY: |
|
|
PZ: |
|
|
PW: |
In: Advanced Math
True / False Questions
1. Inventory is a relatively liquid asset and usually appears above Accounts Receivable on the balance sheet.
2. The operating cycle of a merchandising company consists of (1) purchases of merchandise; (2) sales of the merchandise; and (3) collection of accounts receivable.
3. Inventory shrinkage refers to unrecorded decreases in inventory resulting from breakage, theft, and sales of inventory.
4. In a perpetual inventory system, when merchandise is purchased, it is debited to an account called Purchases.
5. In a periodic inventory system, the Cost of Goods Sold account may be created during the closing process by debiting Cost of Goods Sold and crediting the Beginning Inventory and the Purchases account.
6. Purchase Discounts Lost is shown as a reduction of cost of goods sold in the income statement.
7. Net Sales is computed as total sales revenue less sales returns and allowances less sales discounts.
8. The contra-revenue accounts, Sales Returns and Allowances and Sales Discounts, should be closed by crediting these accounts and debiting Income Summary for each account.
9. Gross profit margin is the dollar amount of gross profit expressed as a percentage of gross sales.
10. The accounting cycle of a merchandising business is the length of time covered by the company's income statement.
In: Accounting
True / False Questions
1. Inventory is a relatively liquid asset and usually appears above Accounts Receivable on the balance sheet.
2. The operating cycle of a merchandising company consists of (1) purchases of merchandise; (2) sales of the merchandise; and (3) collection of accounts receivable.
3. Inventory shrinkage refers to unrecorded decreases in inventory resulting from breakage, theft, and sales of inventory.
4. In a perpetual inventory system, when merchandise is purchased, it is debited to an account called Purchases.
5. In a periodic inventory system, the Cost of Goods Sold account may be created during the closing process by debiting Cost of Goods Sold and crediting the Beginning Inventory and the Purchases account.
6. Purchase Discounts Lost is shown as a reduction of cost of goods sold in the income statement.
7. Net Sales is computed as total sales revenue less sales returns and allowances less sales discounts.
8. The contra-revenue accounts, Sales Returns and Allowances and Sales Discounts, should be closed by crediting these accounts and debiting Income Summary for each account.
9. Gross profit margin is the dollar amount of gross profit expressed as a percentage of gross sales.
10. The accounting cycle of a merchandising business is the length of time covered by the company's income statement.
In: Accounting