The following was taken from the books of Coyote Company as of December 31, 2017.

a. Prepaid insurance expired during the year, $11,000.

b. Estimated bad debts, 1.0% of sales.

c. Inventory as of 12/31/2017 turned out to be $40,000.

d. Four month rent of $56,000 was paid in advance on October 1, 2017 and charged to rent expense then. 4 months From Oct. 2017 to Jan 2018.

e. Furniture and equipment have an average useful life of 5 years and no salvage value. Coyote Company uses the straight line method of depreciation.

f. Utility bill of $600 for the month of December 2017 will be paid on its due date, January 10, 2018: a missing record.

g. Salaries earned but not yet paid by December 31, 2017, $6,000.

Instruction: prepare

1. Any necessary adjusting entries at the end of 2017.

2. Income Statement and statement of retained earnings, and balance sheet of the company for the year 2017.

3. Any necessary closing entries at the end of 2017.

Bass hunt is a local outdoor store that competes with other outdoor stores.

They are proposing two marketing plans follow (consider them independent of each other)

Plan 1: They sell a deer tree stand. they take a standard tree and modify it to make it work.

- They sold 80 stands during 2018 for $400 each

- the stands are warrantied for 3 years (manufacture defects)

- the company's purchase cost per stand is $250 and they spent another $3,000 modifying the 80 stands.

- in addition to the sale of the stand, they sold extended warranties for 20 stands that added 2 years to the period.

- the extended warranty was sold for $250 each

- the company estimates that they will incur $2,600 of total cost servicing the 3 year standard warranty for the 80 stands sold during 2018.

Plan 2: they have a customer royalty program that "rewards" customer with one point for every $10 purchase.

- each point is redeemable for $1.00 off any purchase from the store in the next two years.

- during 2018, customers bought $100,000 of products and earned 10,000 points.

- the standalone selling price of the products was $100,000

- based on previous data, they expect 9,400 of the points to be redeemed from the 10,000

Required:

A- prepare journal entries for the 2018 sale of tree stands and warranty.

B- The company incurred $350 of warranty cost during 2018 relating with 2018 sales. prepare journal entry to record the incurrence of these costs and prepare any 12/31/18 adjusting entries.

C- prepare journal entries related to bonus point sales for 2018.

D- How much will the company recognize additional revenue in 2019 assuming 4,600 of the 2018 points are redeemed.

1. Prepare an expanded accounting equation worksheet for the Zeon Company to show the effect of the following transactions on the given dates – our accounting period is January:
   • January 2 Investment of $75,000 in cash into the business by stockholders.
   • January 4 Paid $10,000 in cash toward a building that cost $90,000 with the rest being borrowed from the bank to be paid back in 5 years.
   • January 10 Bought inventory on credit for $4,200
   • January 14 Paid cash wages to employees who worked in January for the business for $2,300.
   • January 21 Sold merchandise for $900 in cash. This merchandise (inventory) originally cost $500.
   • January 30 Received a bill from the utilities company for $600 for utilities used during January that will be due in February.
   • January 31 Paid cash dividends of $300 to stockholders.
2. Prepare the income statement, statement of stockholders equity, balance sheet and cash flow statement for the month of January for Zeon.
3. Prepare an expanded accounting equation worksheet for the Zeon Company for February given what was done in January and the following transactions:
   • February 5 Paid $750 in cash to the bank on the loan borrowed in January and paid $900 in interest on that loan.
   • February 11 Paid the bill from the utilities company from January
   • February 12 Paid the accounts payable associated with the inventory purchased in January.
   • February 18 Sold merchandise to a customer for $1,200 in cash. This merchandise originally cost $750.
   • February 27 Received a bill from the utilities company for $585 for utilities used during February that will be due in March.
   • February 28 Paid cash dividends of $300 to stockholders.
4. Prepare the income statement, statement of stockholders equity, balance sheet and cash flow statement for the month of February for Zeon.

Read the case study and answer the questions

When many people think of a traditional, established company, they think of IBM. IBM has been famous for its written and unwritten rules—such as its no-layoff policy, its focus on individual promotions and achievement, the expectation of lifetime service at the company, and its requirement of suits and white shirts at work. The firm was one of the mainstays of the “man in a gray flannel suit” corporate culture in the United States. Times have certainly changed. IBM has clients in 170 countries and now does two-thirds of its business outside the United States. As a result, it has overturned virtually all aspects of its old culture. One relatively new focus is on teamwork. While IBM uses work teams extensively, like almost all large organizations, the way it does so is unique. To foster appreciation of a variety of cultures and open up emerging markets, IBM sends hundreds of its employees to month-long volunteer project teams in regions of the world where most big companies don’t do business. Al Chakra, a software development manager located in Raleigh, North Carolina, was sent to join GreenForest, a furniture manufacturing team in Timisoara, Romania. With Chakra were IBM employees from five other countries. Together, the team helped GreenForest become more computer-savvy to increase its business. In return for the IBM team’s assistance, GreenForest was charged nothing. This is hardly altruism at work. IBM firmly believes these multicultural, multinational teams are good investments. First, they help lay the groundwork for uncovering business in emerging economies, many of which might be expected to enjoy greater future growth than mature markets. Stanley Litow, the IBM VP who oversees the program, also thinks it helps IBMers develop multicultural team skills and an appreciation of local markets. He notes, “We want to build a leadership cadre that learns about these places and also learns to exchange their diverse backgrounds and skills.” Among the countries where IBM has sent its multicultural teams are Turkey, Tanzania, Vietnam, Ghana, and the Philippines. As for Chakra, he was thrilled to be selected for the team. “I felt like I won the lottery,” he said. He advised GreenForest on how to become a paperless company in 3 years and recommended computer systems to boost productivity and increase exports to western Europe. Another team member, Bronwyn Grantham, an Australian who works at IBM in London, advised GreenForest about sales strategies. Describing her team experience, Grantham said, “I’ve never worked so closely with a team of IBMers from such a wide range of competencies.”

Required Questions:

Question 01: If you calculate the person-hours devoted to IBM’s team projects, they amount to more than 180,000 hours of management time each year. Do you think this is a wise investment of IBM’s human resources? Why or why not?

Question 02: Why do you think IBM’s culture changed from formal, stable, and individualistic to informal, impermanent, and team-oriented?

Question 03: Would you like to work on one of IBM’s multicultural, multinational project teams? Why or why not?

Question 04: Multicultural project teams often face problems with communication, expectations, and values. How do you think some of these challenges can be overcome?

Suppose you want to conduct a survey of a sample of registered at the University. Discuss some techniques that would be appropriate to select the sample. Discuss the advantages and disadvantages of each.

Assume you have just been appointed a project manager for building a female hostel at the University Campus area. Prepare the procurement plan to be submitted to the management

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow. Additional Information Items An analysis of WTI's insurance policies shows that $3,600 of coverage has expired. An inventory count shows that teaching supplies costing $3,120 are available at year-end 2017. Annual depreciation on the equipment is $14,400. Annual depreciation on the professional library is $7,200. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,700, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. On October 15,

WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,380 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017

Debit

Cash- $27,547

Accounts receivable- 0

Teaching supplies- 10,594

Prepaid insurance- 15,894

Prepaid rent- 2,120

Professional library- 31,784

Equipment- 74,152

Dividends- 42,381

Depreciation expense—Professional library 0

Depreciation expense—Equipment 0

Salaries expense 50,858

Insurance expense- 0

Rent expense- 23,320

Teaching supplies expense- 0

Advertising expense -7,417

Utilities expense -5,933

$ 292,000

Credit

Problem 3-3A Part 2 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance
.

Additional Information Items

A. An analysis of WTI's insurance policies shows that $3,600 of coverage has expired.

B. An inventory count shows that teaching supplies costing $3,120 are available at year-end 2017.

C. Annual depreciation on the equipment is $14,400.

D. Annual depreciation on the professional library is $7,200.

E. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,700, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.

F. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,380 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

G. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.

H. The balance in the Prepaid Rent account represents rent for December.

Prepare Wells Technical Institute's balance sheet as of December 31, 2017.

Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $24,000 for 890 shares of Malti Company’s common stock. She received a $837 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $25,000. Kathy would like to earn a return of at least 13% on all of her investments. She is not sure whether the Malti Company stock provide a 13% return and would like some help with the necessary computations.

Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.

Required:

1. Compute the net present value that Kathy earned on her investment in Malti Company stock.

2. Did the Malti Company stock provide a 13% return?

RTI Company’s master budget calls for production and sale of 18,200 units for $83,720, variable costs of $32,760, and fixed costs of $20,000. During the most recent period, the company incurred $32,200 of variable costs to produce and sell 20,000 units for $85,200. During this same period, the company earned $25,200 of operating income.

Required:

1. Determine the following for RTI Company: (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)

a. Flexible-budget operating income.

b. Flexible-budget variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)?

c. Flexible-budget variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?

d. Sales volume variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)?

e. Sales volume variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?

RTI Company’s master budget calls for production and sale of 18,100 units for $81,450, variable costs of $30,770, and fixed costs of $18,000. During the most recent period, the company incurred $34,100 of variable costs to produce and sell 18,000 units for $84,000. During this same period, the company earned $23,000 of operating income.

QUESTIONS:

1. Determine the following for RTI Company: (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)

a. Flexible-budget operating income.

b. Flexible-budget variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)?

c. Flexible-budget variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?

d. Sales volume variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)?

e. Sales volume variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?