The Starr Theater, owned by Meg Vargo, will begin operations in March. The Starr will be unique in that it will show only triple features of sequential theme movies. As of March 1, the ledger of Starr showed: Cash $2,950, Land $22,000, Buildings (concession stand, projection room, ticket booth, and screen) $10,000, Equipment $10,000, Accounts Payable $6,000, and Owner’s Capital $38,950. During the month of March, the following events and transactions occurred.

1.) Enter the beginning balances in the ledger.

2.) Journalize the March transactions. Starr records admission revenue as service revenue, rental of the concession stand as rent revenue, and film rental expense as rent expense.(Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

3.) Post the March journal entries to the ledger. (Post entries in the order of journal entries presented in the previous question.)

Common-Size Income Statements and Horizontal Analysis

Income statements for Mariners Corp. for the past two years are as follows:

Required:

1. Using the format in Example 13-5, prepare common-size comparative income statements for the two years for Mariners Corp. Round percentages to one decimal point.

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Prepare in correct form common-size comparative income statements for two years. Set up with five columns.

2. Based on Mariner's common size statements in 2017 compared to 2016, it can be concluded that

all of these are true.

gross profit as a percentage of sales declined due to higher cost of goods sold.

net income decreased both in dollars and as a percentage of sales.

selling and administrative expenses increased both in dollars as well as percentage of sales.

a

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Correct

3. Using the format in Example 13-2, prepare comparative income statements for Mariners Corp., including columns for the dollars and for the percentage increase or decrease in each item on the statement. Round all percentages to the nearest whole percent. If an answer is zero, enter "0".

On January 1, 2017, Fro-Yo Inc. began offering customers a cash rebate of $5.00 if the customer mails in 10 proof-of-purchase labels from its frozen yogurt containers. Based on historical experience, the company estimates that 20% of the labels will be redeemed. During 2017, the company sold 5,000,000 frozen yogurt containers at $1, cash, per container. From these sales, 800,000 labels were redeemed in 2017, 150,000 labels were redeemed in 2018, and the remaining labels were never redeemed.

Required:

Prepare the necessary journal entries to record:

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GENERAL JOURNAL

Next Level

Assume that 300,000 labels were redeemed in 2018. Prepare the journal entries related to the cash rebate offer for 2018.

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Use the data below to compute 2014 FCF (Free Cash Flow):

(Round to the nearest whole dollar)

Answer:

Entity A is a manufacturer of consumer goods. On 1 January 2020, Entity A entered into a one-year contract to sell goods to a large global chain of retail stores. The customer committed to buy at least $90,000,000 of products in January. The contract required Entity A to make a non-refundable payment of $200,000 to the customer at the inception of the contract. The $200,000 payment is to compensate the customer for the changes required to its shelving to accommodate Entity A's products. Entity A duly paid this $200,000 to the customer on 3 January 2020.

Entity A transferred goods with an invoice price of $98,000,000 to the customer on 31 January 2020. The customer agreed to settle the outstanding amount by two payments, i.e. 40% and 60% of the outstanding amount on 18 February 2020 and 31 March 2020 respectively.

REQUIRED:

Provide journal entries for Entity A from 1 January 2020 to 31 March 2020 in accordance with relevant accounting standards.

ACCOUNT NAMES FOR INPUT:

| Plant | Machine | Motor van | Equipment | Land | Building | Inventory | Intangible assets |

| Bank | Payable | Receivable | Other income | Other expense | Interest expense | Interest revenue |

| Depreciation | Accum. depreciation | Impairment loss | Reversal of impairment loss | Goodwill |

| Loss on disposal | Gain on disposal | Restoration liability | Revaluation surplus | Revaluation deficit |

| Asset for product to be returned | Commission expense | Commission revenue | Revenue |

| Cost of sales | Refund liability | Contract asset | Contract liability | Retained earnings | No entry |

ANSWERS:

Journal Entries:

Event 1: record entry for issuance of common stock

Event 2: record purchase of equipment for cash

Event 3: record cash received from revenue

Event 4: record cash paid for salaries expenses

Event 5: record depreciation expense

b. Then post them to T-accounts.

c.

Data reported for West’s four operating divisions are as follows:

Intersegment sales are priced at cost, and all goods have been subsequently sold to nonaffiliates. Some joint production costs are allocated to the divisions based on total sales. These joint costs were $45,000 in 20X2. The company’s corporate center had $30,000 of general corporate expenses and $130,000 of assets that the chief operating decision maker did not use in making the decision regarding the operating segments.

3. Suppose you are the manager of an airline company. As a recent MBA graduate, you decided to use all the knowledge you have acquired to improve the firm’s pricing decisions. To begin with, you search for a market survey company to find out the demand curve for flights. The market survey company sent you back a report stating that there are two distinct segments of consumers - tourists and business travelers – and that their demand curves are given by the following equations:

Market Demand for Tourists: Q = 500 – 2P + 2I

Market Demand for Business Travelers: Q = 1000 – P + I

Where Q is the quantity demanded (in thousands of tickets), P is the price for a ticket, and I is the median income of each segment of consumers.

Currently, the price for tourists is $200 and the price for business travelers is $500. Moreover, the median income of tourists is $50 and the median income of business travelers is $100.

a) Using the point slope elasticity formula, what is the price elasticity of demand for airline tickets at the current price and income level for each group of consumer? Hint: to answer this question you will need to accurately determine the slope of the two demand curves given the level of income for each group and find the quantity each group demands at the current price for the group given the income that each group has.

b) Based on your result in (a), do you think you should raise or lower the price paid by tourists? What about the price paid by business travelers?

c) To verify your answer in (b), set a new price for tourists that is $50 higher or lower than the original price of $200 and a new price for business travelers that is $50 higher or lower than the original price of $500. Make your determination of whether to raise or lower the price based on your answers in (b). Relative to the revenue accrued in each market segment with the original prices, what happens to the revenue accrued by the airline in each market segment with the new prices? Hint: If the revenue does not increase then you need to redo this problem by moving the price in the opposite direction!

d) Using the two-point elasticity formula (the arc elasticity formula), what is the price elasticity of demand when you go from the original price to the new price? In doing this problem hold income constant.

How would you interpret the below financial statements?

Monty Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. MONTY RESORT TRIAL BALANCE AUGUST 31, 2017 Debit Credit Cash $23,200 Prepaid Insurance 8,100 Supplies 6,200 Land 24,000 Buildings 124,000 Equipment 20,000 Accounts Payable $8,100 Unearned Rent Revenue 8,200 Mortgage Payable 64,000 Common Stock 98,600 Retained Earnings 9,000 Dividends 5,000 Rent Revenue 80,200 Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 Totals $268,100 $268,100 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2017. 2. An inventory count on August 31 shows $471 of supplies on hand. 3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $3,916 was earned prior to August 31. 5. Salaries of $383 were unpaid at August 31. 6. Rentals of $757 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year. Collapse question part (a) Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit 1. Aug. 31 2. Aug. 31 3. (a) Aug. 31 3. (b) Aug. 31 4. Aug. 31 5. Aug. 31 6. Aug. 31 7. Aug. 31 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER Expand question part (b) The parts of this question must be completed in order. This part will be available when you complete the part above.