1998 revenue $126,231,000 entertainment questions

Questions

1.Brian is putting together a balance worksheet and just finished entering the balances of the general...

1.Brian is putting together a balance worksheet and just finished entering the balances of the general ledger accounts into the trial balance section of the worksheet.

After making sure that the trial balance is accurate, Brian will prepare the __________ section, followed by the __________ section of the worksheet.

a.)income statement; balance sheet

b.)balance sheet; closing entries

c.)adjusting entries; adjusted trial balance

d.)adjusted trial balance; income statement

2 Which of the following statements is NOT a characteristic of a trial balance?

a.)All account totals are summarized.

b.)The report is made public.

c.)Posting errors are identified.

d.)Debit totals and credit totals are compared.

3 Which scenario below correctly describes an unearned revenue adjustment entry?

a.)Brian accounted for the printer ink cartridges that he used during the month for his various orders.

b.)Brian made the next adjustment and recorded $2,975 to be paid to graphic artist contractors at the end of the month, when paychecks were sent out.

c.)Brian was halfway through a project that involved creating and printing advertisement posters for a local hardware store. He would not be paid until the project was complete.

d.)Brian was recently hired to create and print brochures and business cards for the customer's new landscaping company. Brian was given a down payment for his work, but had not yet begun work

4 Sharon would make an adjustment entry to __________ to record the $500 her company received from a customer to perform future services.

Suppose that before the adjusting entry, the balance in this account was $2,725. After the adjusting entry, the ending balance will be __________.

a.)accounts receivable; $2,225

b.)prepaid expenses; $2,225

c.)unearned revenue; $3,225

d.)accrued revenue; $3,225

5 In the general journal, Amy saw a record in the owner's drawing account indicating that a partner withdrew $675 from her firm last month.

Which of the following is a closing general journal entry that Amy will make related to this withdrawal?

a.)Amy will not make a closing general journal entry related to this withdrawal.

b.)Amy will record a credit of $675 to the cash account.

c.)Amy will record a debit of $675 to the owner's capital account.

d.)Amy will record a credit of $675 to accounts payable.

In: Accounting

Management from Global Shippers Inc, an international shipping business, is in the process of assessing the...

Management from Global Shippers Inc, an international shipping business, is in the process of assessing the choice between two different cost structures for the business. Option A has relatively higher variable costs per unit shipped but lower annual fixed costs, while Option B has the opposite—relatively lower variable costs in its cost structure but higher fixed costs. Assume that delivery selling prices per unit are constant. The table below contains critical information in making the decision:

Cost Information	Option A	Option B
Delivery price (revenue) per shipment	$100	$100
Variable cost per shipment delivered	$85	$60
Contribution Margin per unit	$15	$40
Fixed costs (annual)	$1,200,000	$4,500,000

Management wants you to write a professional report, answering the following questions:

Questions

1) What is the break-even point, in terms of volume (i.e., number of shipments per year), for Option A? Option B?

(2) How many shipments would have to be made under Option A to produce operating income of $30,000 for an annual period?

(3) How many shipments per year would have to be made under Option A to produce an operating margin equal to 9% of sales revenue?

(4) How many shipments are required under Option B to produce net income of $180,000 per year, given a corporate tax rate of 40%?

(5) Assume that for the coming year total fixed costs are expected to increase by 15% for each of the two options. What is the new break-even point, in terms of number of shipments, for each option? By what percentage did the break-even point change for each case? How do these figures compare to the percentage increase in budgeted fixed costs?

(6) Assume an average income-tax rate of 20%. What volume (number of shipments) would be needed to generate net income of 5% of revenue for each option?

(7) Which option do you think is the more profitable one for this business? Explain.

(8) Which option do you consider to be more risky to the business? Explain (calculate degree of operating leverage to help answer this question).

In: Accounting

The Starr Theater, owned by Meg Vargo, will begin operations in March. The Starr will be...

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 $3,050, Land $23,000, Buildings (concession stand, projection room, ticket booth, and screen) $12,000, Equipment $12,000, Accounts Payable $6,300, and Owner’s Capital $43,750. During the month of March, the following events and transactions occurred.

Mar. 2		Rented the three Indiana Jones movies to be shown for the first 3 weeks of March. The film rental was $3,200; $1,500 was paid in cash and $1,700 will be paid on March 10.
3		Ordered the Lord of the Rings movies to be shown the last 10 days of March. It will cost $200 per night.
9		Received $4,100 cash from admissions.
10		Paid balance due on Indiana Jones movies rental and $2,100 on March 1 accounts payable.
11		Starr Theater contracted with Adam Ladd to operate the concession stand. Ladd is to pay 15% of gross concession receipts, payable monthly, for the rental of the concession stand.
12		Paid advertising expenses $900.
20		Received $5,500 cash from customers for admissions.
20		Received the Lord of the Rings movies and paid the rental fee of $2,000.
31		Paid salaries of $3,100.
31		Received statement from Adam Ladd showing gross receipts from concessions of $5,000 and the balance due to Starr Theater of $750 ($5,000 × 15%) for March. Ladd paid one-half the balance due and will remit the remainder on April 5.
31		Received $9,000 cash from customers for admissions.

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.)

In: Accounting

1. How does Peter Drucker define profit? Define the term “cash basis accounting”. Define the “matching...

1. How does Peter Drucker define profit?

Define the term “cash basis accounting”.

Define the “matching principle”

Describe the delivery company that purchased a truck in January and how it applies to the matching principle.

Explain why the Income Statement does not account for the inflows and outflows of cash.

Define the purpose of the Income Statement.

List three alternative names for the Income Statement

What time periods can the Income Statement cover?

Public companies must follow GAAP in compiling financial statements TRUE/FALSE

What is a Pro-forma Income Statement?

Sales and Revenue on the Income Statement mean the same thing TRUE/FALSE

Define the term “Cost of Sales”.

Why are footnotes considered to be an important part of the financial statements?

What is the “One Big Rule” when reading financial statements?

In its simplest form, when can a company recognize a sale?

In the example in the book, how did the software company manipulate revenue recognition?

What is “channel stuffing”?

“The most common source of accounting fraud has been and probably always will be _____________

Define “deferred revenue”.

“Above the line” on the Income Statement refers to what?

“Below the line on the Income Statement refers to what?

Define “Operating Expenses”

Operating expenses are often thought of and referred to as ________________

How did Waste Management Inc. use depreciation to manipulate earnings?

Why is depreciation and amortization considered a “non-cash expense”?

Give an example of a “one time charge”.

Expenses should be listed on the Income Statement to assist management in analyzing the business. TRUE/FALSE

Gross Profit varies by industry. TRUE/FALSE

Compare the gross profit of a grocery business to a jewelry store.

Define Operating Profit or EBIT

List three ways Operating Profit can measure how well or poorly a company is being managed

Define EBITDA

Why is EBITDA favored over EBIT by financial analysts?

Define “Net Profit”

List the three legitimate fixes to a low net Profit

What are the negative consequences of reducing Operating Expenses as a strategy to increase Net Profit?

How can “exchange rates” adversely affect Net Profit?
Can you answer all of the questions.

In: Finance

American customer satisfaction index: Starbucks in the U.S. 2006-2016 2006 77 2007 78 2008 77 2009...

American customer satisfaction index: Starbucks in the U.S. 2006-2016

2006	77
2007	78
2008	77
2009	76
2010	78
2011	80
2012	76
2013	80
2014	76
2015	74
2016	75

ABOUT THIS STATISTIC: This statistic shows the American customer satisfaction index scores of Starbucks in the United States from 2006 to 2016. Starbucks had an ACSI score of 75 in 2016.

Starbucks

The Starbucks Corporation is a coffeehouse chain based in Seattle which operates more than 25 thousand stores worldwide (as of 2016). Just over 50 percent (around 7,880) of all Starbucks stores were company-operated stores, from which Starbucks generates around 79 percent of its revenue. Around 5,292 stores are licensed stores. Starbucks, which became a publicly traded company on June 26, 1992, generated around 21.32 billion U.S. dollars in revenue in the 2016 fiscal year.

In its company-operated stores Starbucks generates 74 percent of revenue from the sale of beverages, 19 percent from food sales and three percent from the sale of packaged and single serve coffees. Another four percent of retail sales are attributable to coffee-making equipment and other merchandise.

The United States is Starbucks’ biggest and most important market. In 2016, revenues from Starbucks Americas segment amounted to more than 14 billion U.S. dollars. The

Americas segment comprises over 13,000 stores in the U.S., Canada, Mexico, Puerto Rico, Brazil Chile and other American countries with around 86 percent of those stores located in the United States. 2

Plot this set of data as a scatterplot in excel. Insert excel graph here:

Find the correlation coefficient.
Is it positive or negative?
What does the sign tell us?
What does the correlation imply about the relationship between the time and the satisfaction?

Is the correlation significant? Why or why not? (Answer in 1-2 complete sentences.) (Use the Pearson calculator).

20) Draw the trendline in excel. Can the regression line be used for prediction? No, it is too weak. Insert excel graph here:

In: Statistics and Probability

Submission 2 - due Saturday June 23 before 5pm - You must submit your completed Bank...

Submission 2 - due Saturday June 23 before 5pm - You must submit your completed Bank Reconciliation, the journal entries to bring the cash balance to the correct balance, and the Bank Reconciliation formulas tab completed. Your file must be named correctly – Please Show equations

The following information should be used to prepare a bank reconciliation for SWARS Sales and Consulting as of March 31. Prepare the reconciliation on the Bank Reconciliation tab.

	On March 31, 2018, SWARS Sales and Consulting Co. had a cash balance in the ledger of $253,560. The March statement from Dakota State Bank showed a balance of $254,911 on March 31, 2018. The following facts regarding banking and cash activities are available.

	The bank service charge for March was $95.

	The bank collected $13,400, that was owed to SWARS Sales and Consulting Co by a customer, through electronic funds transfer.

	The March 31 receipts of $24,500 were not included in the bank deposits for March. These receipts were deposited by the company in a night deposit vault on March 31.

	Company check No. 2480 issued to Tatooine Co, a creditor, for $354 that cleared the bank in March was incorrectly entered in the cash payments journal on March 10 for $300.

	Checks outstanding on March 31 totaled $16,500.

	On March 31, the bank statement showed an NSF charge of $1,250 for a check received by the company from J T Hutt, a customer, on account.

	The bank statement shows a check for $2,650 was charged to SWARS account. The check was written by BB8 Company not SWARS Sales and Consulting .


	Prepare the bank reconciliation as of March 31.

	Prepare the necessary entries at March31 to update the cash account. Place the Journal entries on the Journal entries Tab

March Journal Entries

1-Mar	Accounts Receivable	3450
	Sales Revenue		3,450

	Cost of Goods Sold	1450
	Inventory		1,450

3-Mar	Inventory	2800
	Accounts Payable		2,800

15-Mar	Accounts Receivable	3750
	Sales Revenue		3,750

	Cost of Goods Sold	1950
	Inventory		1,950

20-Mar	Inventory	2000
	Accounts Payable		2,000

24-Mar	Accounts Receivable	4900
	Sales Revenue		4,900

	Cost of Goods Sold	2600
	Inventory		2,600





Bank Reconciliation Journal Entries

In: Accounting

Journalize the entries to record the following selected bond investment transactions for Southwest Bank: Refer to...

Journalize the entries to record the following selected bond investment transactions for Southwest Bank: Refer to the Chart of Accounts for exact wording of account titles.

Apr. 1

Purchased $400,000 of Daytona Beach 4.5% bonds at 100 plus accrued interest of $4,500.

July 1

Received the first semiannual interest.

Sept. 1

Sold $250,000 of the bonds at 97, plus accrued interest of $1,875.

CHART OF ACCOUNTS

Southwest Bank

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
121	Allowance for Doubtful Accounts
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
151	Supplies
152	Prepaid Insurance
161	Investments-Daytona Beach Bonds
165	Valuation Allowance for Trading Investments
166	Valuation Allowance for Available-for-Sale Investments
181	Land
191	Equipment
192	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
231	Interest Payable
241	Salaries Payable

EQUITY

311

Common Stock

312

Paid-In Capital in Excess of Par-Common Stock

321

Preferred Stock

322

Paid-In Capital in Excess of Par-Preferred Stock

331

Treasury Stock

332

Paid-In Capital from Sale of Treasury Stock

340

Retained Earnings

351

Cash Dividends

352

Unrealized Gain (Loss) on Available-for-Sale Investments

353

Stock Dividends

390

Income Summary

Journalize each of the entries to record the selected bond investment transactions for Southwest Bank. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10

	REVENUE
410	Sales
611	Interest Revenue
612	Dividend Revenue
631	Gain on Sale of Investments
641	Unrealized Gain on Trading Investments

	EXPENSES
511	Cost of Merchandise Sold
512	Bad Debt Expense
522	Salaries Expense
531	Advertising Expense
532	Rent Expense
533	Insurance Expense
534	Supplies Expense
561	Depreciation Expense-Equipment
590	Miscellaneous Expense
710	Interest Expense
731	Loss on Sale of Investments
741	Unrealized Loss on Trading

In: Accounting

Income Statement Format The following information from Tricon Company's operations is available: Administrative expenses $165,600 Cost...

Income Statement Format
The following information from Tricon Company's operations is available:

Administrative expenses	$165,600
Cost of goods sold	1,113,600
Sales revenue	1,852,800
Selling expenses	208,800
Interest expense	16,800
Loss from operations of discontinued segment	144,000
Flood loss (considered unusual and infrequent)	60,000
Gain on disposal of discontinued segment	96,000
Income taxes:
Amount applicable to ordinary operations	139,200
Reduction applicable to loss from operations of discontinued segment	81,600
Amount applicable to gain on disposal of discontinued segment	38,400
Reduction applicable to flood loss	24,000

Required
a. Prepare a multiple-step income statement. (Disregard earnings per share amounts.)
b. Prepare a single-step income statement. (Disregard earnings per share amounts.)

a. Hint: Do not enter any answers as negative numbers unless it's indicated with an asterisk *.

TRICON COMPANY Income Statement For Year Ended
Sales Revenue		$Answer
Cost of Goods Sold		Answer
Gross Profit on Sales		Answer
Selling Expenses	$Answer
Administrative Expenses	Answer	Answer
Operating Income		Answer
Interest Expense		Answer
Income from Continuing Operations before Taxes		Answer
Income Tax Expense		Answer
Income from Continuing Operations		Answer
Discontinued Operations
Loss from operations of discontinued segment	Answer*
Gain on disposal of discontinued segment	Answer	Answer*
Income before Extraordinary Item		Answer
Extraordinary Item
Flood Loss		Answer*
Net Income		$Answer

b. Hint: Do not enter any answers as negative numbers unless it's indicated with an asterisk *.

TRICON COMPANY Income Statement For Year Ended
Sales Revenue		$Answer
Expenses
Cost of Goods Sold	$Answer
Selling Expenses	Answer
Administrative Expenses	Answer
Interest Expense	Answer
Income Tax Expense	Answer	Answer
Income from Continuing Operations		Answer
Discontinued Operations
Loss from operations of discontinued segment	Answer*
Gain on disposal of discontinued segment	Answer	Answer*
Income before Extraordinary Item		Answer
Extraordinary Item
Flood Loss		Answer*
Net Income		$Answer

In: Accounting

On January 1, 2017, Fro-Yo Inc. began offering customers a cash rebate of $5.00 if the...

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:

1.	Prepare the journal entries related to the sale of frozen yogurt and the cash rebate offer for 2017 and 2018.
2.	Next Level Assume that 300,000 labels were redeemed in 2018. Prepare the journal entries related to the cash rebate offer for 2018.

Chart of Accounts

CHART OF ACCOUNTS

Fro-Yo Inc.

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
189	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
242	Estimated Rebate Liability
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

General Journal

Prepare the necessary journal entries to record:

	1. the sale of Fro-Yo containers for cash during 2017
	2. the redemption of labels during 2017
	3. the redemption of labels during 2018
	4. the recognition of the unredeemed labels at the end of 2018
	Additional Instructions

PAGE 9

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9

Next Level

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

PAGE 9

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3

In: Accounting

Case: Cost Structures for Global Shippers Inc. Management from Global Shippers Inc, an international shipping business,...

Case: Cost Structures for Global Shippers Inc.

Management from Global Shippers Inc, an international shipping business, is in the process of assessing the choice between two different cost structures for the business. Option A has relatively higher variable costs per unit shipped but lower annual fixed costs, while Option B has the opposite—relatively lower variable costs in its cost structure but higher fixed costs. Assume that delivery selling prices per unit are constant. The table below contains critical information in making the decision:

Cost Information	Option A	Option B
Delivery price (revenue) per shipment	$100	$100
Variable cost per shipment delivered	$85	$60
Contribution Margin per unit	$15	$40
Fixed costs (annual)	$1,200,000	$4,500,000