skip 5 last one unadjusted trial balance do rest thanks

All Journals and General Ledger; Trial Balance

The transactions completed by AM Express Company during March, the first month of the fiscal year, were as follows:

Required:

1. The following accounts are setup in the general ledger as of March 1. Using the information below, enter the balances for each account.

2. Journalize the transactions for March using the required journal(s). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

2a. Journalize the transactions for March using the purchases journal (with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

If no entry is required, type "No entry required" and leave the amount boxes blank.

If an amount box does not require an entry, leave it blank.

2b. Journalize the transactions for March using the cash receipts journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

If an amount box does not require an entry, leave it blank.

2c. Journalize the transactions for March using the single-column revenue journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

2d. Journalize the transactions for March using the cash payments journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

If an amount box does not require an entry, leave it blank.

2e. Journalize the transactions for March using the two-column general journal. Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made.

If an amount box does not require an entry, leave it blank.

3. Post the appropriate individual entries to the general ledger.

4. Total each of the columns of the special journals, and post the appropriate totals to the general ledger; insert the account balances.

If an amount box does not require an entry, leave it blank.

5. Prepare a trial balance.

If an amount box does not require an entry, leave it blank.

Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 17% for all items sold. Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year.

Pittman Company

Budgeted Income Statement

For the Year Ended December 31

Sales                                                             $                                         16,600,000

Manufacturing expenses:                                                    

Variable              $                                         7,300,000                       

Fixed overhead                                           2,420,000                        9,720,000

Gross margin                                                                                         6,880,000

Selling and administrative expenses:                                               

Commissions to agents                            2,822,000                       

Fixed marketing expenses                        140,000*                        

Fixed administrative expenses                1,900,000                        4,862,000

Net operating income                                                                          2,018,000

Fixed interest expenses                                                                       560,000

Income before income taxes                                                              1,458,000

Income taxes (40%)                                                                              583,200

Net income                                                                              $            874,800

Primarily depreciation on storage facilities. As Barbara handed the statement to Karl Vecci, Pittman’s president, she commented, “I went ahead and used the agents’ 17% commission rate in completing these statements, but we’ve just learned that they refuse to handle our products next year unless we increase the commission rate to 22%.” “That’s the last straw,” Karl replied angrily. “Those agents have been demanding more and more, and this time they’ve gone too far. How can they possibly defend a 22% commission rate?” “They claim that after paying for advertising, travel, and the other costs of promotion, there’s nothing left over for profit,” replied Barbara. “I say it’s just plain robbery,” retorted Karl. “And I also say it’s time we dumped those guys and got our own sales force. Can you get your people to work up some cost figures for us to look at?” “We’ve already worked them up,” said Barbara. “Several companies we know about pay a 7.7% commission to their own salespeople, along with a small salary. Of course, we would have to handle all promotion costs, too. We figure our fixed expenses would increase by $2,822,000 per year, but that would be more than offset by the $3,652,000 (22% × $16,600,000) that we would avoid on agents’ commissions.”

The breakdown of the $2,822,000 cost follows: Salaries: Sales manager $ 120,000 Salespersons 700,000 Travel and entertainment 480,000 Advertising 1,522,000 Total $ 2,822,000

“Super,” replied Karl. “And I noticed that the $2,822,000 is just what we’re paying the agents under the old 17% commission rate.” “It’s even better than that,” explained Barbara. “We can actually save $85,000 a year because that’s what we’re having to pay the auditing firm now to check out the agents’ reports. So our overall administrative expenses would be less.” “Pull all of these numbers together and we’ll show them to the executive committee tomorrow,” said Karl. “With the approval of the committee, we can move on the matter immediately.”

Required: 1. Compute Pittman Company’s break-even point in dollar sales for next year assuming: (Enter your answer in whole dollars and not in thousands. Round CM ratio to 3 decimal places and final answers to the nearest dollar amount.)

a. The agents’ commission rate remains unchanged at 17%.

b. The agents’ commission rate is increased to 22%.

c. The company employs its own sales force.

2. Assume that Pittman Company decides to continue selling through agents and pays the 22% commission rate. Determine the volume of sales that would be required to generate the same net income as contained in the budgeted income statement for next year. (Enter your answer in whole dollars and not in thousands. Round CM ratio to 3 decimal places.)

3. Determine the volume of sales at which net income would be equal regardless of whether Pittman Company sells through agents (at a 22% commission rate) or employs its own sales force. (Enter your answer in whole dollars and not in thousands. Round CM ratio to 3 decimal places.) 4. Compute the degree of operating leverage that the company would expect to have on December 31 at the end of next year assuming:

a. The agents’ commission rate remains unchanged at 17%. (Round your answer to 2 decimal places.)

b. The agents’ commission rate is increased to 22%. (Round your answer to 2 decimal places.)

c. The company employs its own sales force

I answered the questions but do not feel 100% about my answer want to compare it to another

Maria Santos was recently promoted to senior vice president and assistant to the CFO at Paradise Environmental Designs (PED).

In her new position, Maria is responsible for raising external funds for PED. When the firm needs to raise capital, her team recommends the type of financial instrument that should be issued, completes the appropriate paperwork, negotiates with PED’s investment bankers, and so forth. In a departmental meeting a couple of days ago, the CEO stated that he thought the rate at which PED has been raising capital has been much too high, and he wants any future funds that are raised to have substantially lower costs. Although he blamed her predecessor, the comments were clearly directed at Maria and the members of her department.

As a result, Maria felt that she had to come up with some means by which PED can lower the costs of funds in the future. Because she is fairly new to her position, Maria thought it would be a good idea to meet with others who are more experienced in raising funds for corporations. One of the persons who offered Maria some ideas is Roger, a close friend of hers, who works at Superior Investment Networks (SIN), which is one of the investment banking organizations used by PED. Roger suggested that PED consider issuing convertible bonds rather than straight, or traditional, bonds. He explained that a convertible bond can be issued at a lower interest rate than an identical bond that is not convertible because the conversion feature is a benefit to investors rather than to issuers.

Roger also explained that convertibles are somewhat complex hybrid securities. Other than the information that Roger gave her, Maria knows nothing about convertibles. But because Roger is a friend and his description of convertibles was intriguing, she decided to investigate whether it would be appropriate for PED to use convertibles. When she arrived at work this morning, Maria was told that PED plans to raise $400 million as soon as possible to invest in new projects that the CEO wants to purchase within one year.

Unfortunately, Maria hasn’t had a chance to collect more information about convertibles. Even so, she thinks that a convertible might be an appropriate instrument to issue at this time. As a result, Maria called Roger and asked him how she could learn more about convertibles in a short time period. Roger told her that SIN presents a conference each year at which invited participants discuss various aspects of convertibles. The topics that are covered at the conference range from the basics of convertible securities to more complex topics. The conference seems to be exactly what Maria needs to become more informed about the advantages and disadvantages of issuing convertibles, so she asked Roger to provide her with specific information about the conference, including the dates, costs, specific session topics, and so forth.

One hour ago, Roger called with details about the SIN conference. The seven-day conference will be held aboard a cruise ship as it sails to exotic ports in the Mediterranean Sea. The sessions are scheduled during the time the ship is traveling from one port to another, which generally takes four or five hours. When the ship is in port, the conference coordinator has arranged for the participants to take tours, play golf and tennis, lounge at the beach, and enjoy the local entertainment. The conference sounds great to Maria because she can work and relax at the same time.

One thing bothers her, however—all of the costs, including recreation, relaxation, and entertainment activities will be paid by SIN. Maria is convinced that she will get the information she needs at the SIN conference. But she is concerned that attending the conference might be considered a conflict of interest because she knows that SIN representatives will try to convince her to use the company’s services to issue convertibles. She also knows that Roger will earn substantial commissions if PED uses SIN to issue convertibles. Further, Maria is concerned that material and information she receives at the conference will be one-sided (biased). If she is going to attend the conference, Maria needs to register within the next couple of days. As a result, she needs to make a decision soon.

QUESTIONS -

1. What do you think Maria should do?
2. If she decides to work with SIN to purchase the convertible bonds, do you think she can remain impartial?
3. What do you think is the best decision for PED?

Imagine you are Person A. You just graduated from school and are now on your own. Your family is unable to help you in any way. You managed to find a job, but the pay is only enough to cover your rent in a tiny rundown apartment, transportation to and from work, limited cell phone service, and fast food or other cheap sources of calories. Your purchases of clothing and personal items are limited to what you absolutely require. You cannot buy anything simply because you like it. You need some new slacks to wear to work, so you are skipping breakfast this month to save for them. You cannot afford to see a doctor if you get sick. Your only choices for entertainment include hanging out with old friends from school, walking in a city park, watching a 9-year-old TV in your apartment, or reading books from the library. You do not have a computer or access to the Internet or cable TV at home. You do not know if or when you will be able to get a higher-paying job.

Now, imagine you are Person B. Like Person A, you just graduated from school. But unlike Person A, you have been put under house arrest for one year because of a conviction for drug possession. Although you live alone, you are the beneficiary of a family fortune and have more money than you could possibly spend in a lifetime. You are not allowed to leave your beautiful penthouse apartment, which is furnished with every kind of electronic entertainment device known to man. You do not need a job; you can surf the Internet; you can buy anything you want online and have it delivered; you can listen to the music you like and watch TV or streaming video whenever you wish; you can order food in from the best restaurants in town; and your friends can visit you.   

In legal terms, Person A is “free” and Person B is “not free.” Person A has the right to go anywhere in the world, while Person B is “imprisoned” in a beautifully decorated 3,000 squarefoot condominium.   

question

1. On page 4 of Handout S3, I describe an imagined Person A and Person B. Person A is legally free to go anywhere and do anything, but has very limited resources. Person B is confined to house arrest, but has no financial constraints. Go back and read the description, then answer the following questions:

If you had to spend a year living under the conditions of Person A or Person B, which would you choose? Which of the two has greater freedom? What if the timeframe were longer? Would that change your answers? (25 POINTS)

Answer EITHER 2a OR 2b below (25 POINTS):

2a. Happiness in the present moment has been described as being “in the flow,” a state of “being so absorbed and engaged in something that time falls away.” Here is a quote from page 14 of Handout S3:

“Being “in the flow” is not the same thing as relaxation, although both might make you lose track of time and both are important to happiness. Both can also bring about a sense of peace. Yet while relaxation generally implies a passive engagement or an avoidance of purpose, “flow” happens when you are actively focused on an intentional task or pursuit. All of your thoughts and emotions are simultaneously and purposefully directed toward this task, so much so that you may not even be aware of your feelings. You may not even be able to distinguish your awareness and intent from the actions themselves.

You might play ball, for example, either to relax or to intentionally hone your athletic skills. Either way, you might enjoy yourself and lose a sense of time, but working on skills requires more directed focus. Or, you might watch a movie either to relax or to gain information. The intention of the activity is what distinguishes “flow” from relaxation.”

What intentional activities do you engage in that take you away from time, place, and maybe even an awareness of yourself? Are there any similarities in these activities? Can you think of how to build more of them into your life?  

2b. Describe a situation in which you discovered synthetic happiness. What did you want that you did not get? What happened instead? How did you find happiness? What surprised you about the situation?

Consider a market with many firms that have different cost structures.

Unless shutdown or exit is​ optimal, every firm expands production until​ ___________.

A.

marginal product is maximized.

B.

marginal​ revenue, marginal​ cost, and price are all equal

​(MR

​ = MC​ =

P​).

C.

marginal revenue is equal to the minimum of​ short-run average total cost.

D.

marginal cost is minimized.

To construct the supply curve in a market with many firms with different cost​ structures, the​ ___________.

A.

individual supply curves for each firm are added together.

B.

individual average variable cost curves are added together.

C.

minimums of the​ firms' marginal cost curves are linked together.

D.

minimums of the​ firms' long-run average total cost curves are linked together.

The equilibrium price is the​ ___________.

A.

​long-run average total cost of the last entrant into the market.

B.

average marginal cost of the firms.

C.

​long-run average total cost of the first entrant into the market.

D.

minimum of the average variable cost of the smallest firm in the market.

In terms of economic​ profits, early market entrants earn

(negative

zero

positive)

economic profits and the last entrant earns

(negative

zero

positive)

economic profits.

A perfectly competitive firm will choose to shut down when the (price (marginal revenue)/ average total cost) intersects the marginal cost curve below the ( total cost curve average variable cost curve ).

​Therefore, the​ short-run supply curve for a perfectly competitive firm is represented by​ __________.

A. the portion of the average variable cost curve below marginal cost. B. the portion of the average variable cost curve above marginal cost. C. the portion of the marginal cost curve above average total cost. D. the portion of the marginal cost curve above average variable cost.

In the long​ run, the supply curve for a perfectly competitive firm is represented by​ __________.

A. the portion of the marginal cost curve above average total cost. B. the portion of the marginal cost curve above average variable cost. C. the portion of the average variable cost curve below marginal cost. D. the portion of the average variable cost curve above marginal cost.

Following are several transactions involving a university. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $500,000 grant for wetlands research. The university received a $500,000 endowment. For the fiscal year, the university recorded $2,500,000 in tuition and fees revenue. Cash refunds of $325,000 were given. The university provided $12,600 in tuition waivers for students with outstanding academic performance. During the year, the university constructed a new street, to allow for the expansion of its student housing efforts. The cost of the street was $1,980,000. The biology department spent $25,000 on wetlands research. At year-end, $1,670 of estimated uncollectible tuition and fees was recorded. Required Prepare journal entries to record the foregoing transactions, assuming the university is a private institution. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)Following are several transactions involving a university. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $500,000 grant for wetlands research. The university received a $500,000 endowment. For the fiscal year, the university recorded $2,500,000 in tuition and fees revenue. Cash refunds of $325,000 were given. The university provided $12,600 in tuition waivers for students with outstanding academic performance. During the year, the university constructed a new street, to allow for the expansion of its student housing efforts. The cost of the street was $1,980,000. The biology department spent $25,000 on wetlands research. At year-end, $1,670 of estimated uncollectible tuition and fees was recorded. Required Prepare journal entries to record the foregoing transactions, assuming the university is a private institution. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

a. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $500,000 grant for wetlands research.

Note: Enter debits before credits.

b.The university received a $500,000 endowment.

Note: Enter debits before credits.

c. Record the receipt of tuition and fees revenue.

Note: Enter debits before credits.

Case Background

A sole proprietor (the owner) has established a service business specializing in recruitment for businesses needing specialized Tool Industry staff. The trail balance at the end of the first three months of operations is provided below. Part of the service is to train people before they are placed with companies. The owner has asked, you, the accountant for HR, to prepare the answers to the questions below considering the notes provided.

Trial Balance

Notes

1. The owner issued a cheque for $2,000 for insurance for the next three month after discovering there was no insurance in place. The cheque has not been recorded as a reduction of cash to-date. There is no insurance expense for the first three months.

2. The equipment must be depreciated for three months. The equipment has a service life of 5 years and monthly depreciation is estimated to be $833 a month.

3. Recorded revenue of $5,000 is unearned and was an advance from a client. This revenue will be earned in the next three months.

4. Salaries of $15,000 were paid in the first three months. However, $1,000 of salaries should be accrued as employees earned these salaries but will not be paid until the 4th month.

5. The owner provided services of $2,500, which were not invoiced or billed to clients in the 3rd month but were earned in accordance with the Revenue Principle.

6. Interest expense (Debit) needs to be recorded at the end of three months. The amount is $750 and should be recorded as a liability in Interest Payable (Credit) on the balance sheet. None of the $50,000 note has been paid to lenders yet. This note will be paid back at the end of 5 years.

7. Supplies of $1,500 must be expensed to Cost of Goods Sold (i.e., moved out of inventory) and a new accrual of Accounts Payable should be established for $2,000 for supplies ordered at the end of the 3rd month, and not booked to-date.

Questions

1. Prepare an adjusted trial balance showing adjustments. Show the adjustments and add any new accounts required because of the adjustments. Calculate the current ratio, quick ratio and debt to equity (capital) ratio for the owner.

Q1. Non-GST version

On 1 July 2019 Andreou Black opened a beauty parlour. The following transactions occurred during the first month of operations (ignore GST).

Use the following account titles and numbers: Cash at Bank, 100; Accounts Receivable, 101; Supplies, 102; Equipment, 103; Loan Payable, 200; Andreou Black, Capital, 300; Andreou Black, Drawings, 301; Revenue, 400; Rent Expense, 500; Advertising Expense, 501; Insurance Expense, 502; Telephone Expense, 503.

Required:

(a) Prepare the general journal entries to record the transactions.

(b) Post the entries from the general journal to the general ledger accounts (running balance format) and enter the posting references in the general journal.

(c) Prepare a trial balance as at 31 July 2019.

(d) Prepare a Balance sheet as at 31 July 2019.

(e) Prepare a Balance sheet as at 31 July 2019.

Q2. Flow GST and journal entries

A Timber merchant sells timber to a Furniture manufacturer for $220 (this amount include 10% GST). The furniture manufacturer then makes a table and sells it to Fantastic Furniture Ltd, a furniture retailer, for $440 (including GST). The retailer sells the table to a consumer for $550 (Including GST).

Required

1. Prepare flow of GST among businesses and the Australia Taxation Office.
2. Prepare journal entries for the flow of GST among businesses and the Australia Taxation Office