Exchange Corp. is a company that acts as a facilitator in tax-favored real estate swaps. Such swaps, know as 1031 exchanges, permit participants to avoid some or all of the capital gains taxes that would otherwise be due. The bookkeeper for the company has been asked to prepare a report for the company to help its owner/manager analyze performance. The first such report appears below:

Note that the revenues and costs in the above report are unit revenues and costs. For example, the average office expense is $254 per exchange completed on the planning budget; whereas, the average actual office expense is $140 per exchange completed.  

Legal and search fees is a variable cost; office expenses is a mixed cost; and equipment depreciation, rent, and insurance are fixed costs. In the planning budget, the fixed component of office expenses was $5,000.

All of the company’s revenues come from fees collected when an exchange is completed.

Required:  

1. Is the report prepared by the bookkeeper useful as a performance report?

2. Complete a performance report that would help the owner/manager assess the performance of the company in May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Create an excel workbook for the following questions. Answer these questions under your Solver work for each respective problem.

1. Devos Inc. is building a hotel. It will have 4 kinds of rooms: suites where customers can smoke, suites that are non-smoking, budget rooms where the customers can smoke, and budget rooms that are non-smoking. When we build the hotel, we need to plan for how many rooms of each type we should have. The following are requirements for the hotel:

1. We want to figure out how many rooms of each type to build based on maximizing revenue if we fill up the hotel. We expect to charge $190 for a suite that is non-smoking and $140 for a budget room that is non-smoking. Smoking room customers for both suites and budget rooms will have to pay an additional $20 per night.
2. We can spend up to $7,500,000 on construction of our hotel. The cost to build a non-smoking budget room is $12,000. The cost to build a non-smoking suite is $15,000. It is $3,000 additional for a smoking room of either type for smoke detectors and sprinklers.
3. We require that the number of budget rooms be at least 1.5 times the number of suites, but no more than 3 the number of suites.
4. There needs to be at least 80 suites, but no more than 200.
5. Industry trends recommend that smoking rooms should be less than 50% of the non-smoking room and in addition, we require our builder gives us at least 4 smoking rooms.

Answer the following using your Solver answers:

1. How many of each room type should be built, and what would the revenue be for a night when our hotel was fully booked?
2. Without re-running Solver, what happens to our revenue if we get an additional $1,500,000 for building? Explain in words how you got this answer without re-running solver. Over what amount of construction costs can you use this procedure?
3. Over what range of room price can our budget non-smoking rooms vary over for us to get the same answer for the quantity of each type of room?

Blue Spruce Company recently hired a new accountant whose first task was to prepare the financial statements for the year ended December 31, 2021. The following is what he produced:

Make a Horizontal and Vertical analysis of SBUX balance sheet with four years of camparative data from Yahoo Finance If you can only answer one then please answer the Verical analysis

On January 1, 2015, when its $30 par value common stock was selling for $80 per share, a corporation issued $10 million of 10% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert it into six shares of the corporation’s $30 par value common stock. The debentures were issued for $11 million. At the time of issuance, the present value of the bond payments was $8.5 million, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2016, the corporation’s $30 par value common stock was split 3 for 1. On January 1, 2017, when the corporation’s $10 par value common stock was selling for $90 per share, holders of 40% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums.

Required:

The following list of accounts and their balances represents the unadjusted trial balance of Alt Company at December 31, 2018:

Additional Data:

The balance in the Insurance Expense account contains the premium costs of three policies:

Policy 1, remaining cost of $2,550, 1-yr. term, taken out on May 1, 2017;

Policy 2, original cost of $10,800, 3-yr. term, taken out on Oct. 1, 2018;

Policy 3, original cost of $1,300, 1-yr. term, taken out on Jan. 1, 2018.

On September 30, 2018, Alt received $21,600 rent from its lessee for an eighteen month lease beginning on that date.

The regular rate of depreciation is 8% per year. Acquisitions and retirements during a year are depreciated at half this rate. There were no purchases during the year. On December 31, 2017, the balance of the Plant and Equipment account was $220,000.

On December 28, 2018, the bookkeeper incorrectly credited Sales Revenue for a receipt on account in the amount of $20,000.

At December 31, 2018, salaries and wages accrued but unpaid were $4,200.

Alt estimates that 2% of gross accounts receivable will become uncollectible.

On August 1, 2018, Alt purchased, as a short-term investment, 60 $1,000, 5% bonds of Allen Corp. at par. The bonds mature on August 1, 2019. Interest payment dates are July 31 and January 31.

On April 30, 2018, Alt rented a warehouse for $3,000 per month, paying $36,000 in advance.

Instructions

Record the necessary correcting and adjusting entries.

Indicate which of the adjusting entries may be reversed at the beginning of the next accounting period.

1) Paula Corporation owns all of the voting common stock of Sally Company. Sally manufactures toys and sells
them to Paula. In turn, Paula sells them to customers. Neither of these companies do anything else. At the
beginning of 2012 neither company had any inventory. During 2012 Sally manufactured 120,000 toys and
sold 100,000 of them to Paula for $10 each and Paula sold 90,000 of these toys to customers for $16 each.
These toys had cost Sally only $7 each to produce. During 2013 Sally manufactured 115,000 toys and sold
98,000 to Paula for $10 each. Paula sold 100,000 toys to customers during 2013 for $16 each. (The
manufacturing cost for Sally was still $7 per toy.) Please determine each of the following:
A. Total Consolidated Sales Revenue for 2013

B. Total Consolidated Cost of Goods Sold for 2013

C. Consolidated Ending Inventory for December 31, 2013

2) During 2014 Sally produced 200,000 toys at a cost of $7 each. Paula produced 30,000 books at a cost of $12
each. Sally sold 120,000 toys to Paula for $10 each and 50,000 toys to customers for $15 each. Paula sold
110,000 of the toys to customers for $16 each and 20,000 books to customers for $20 each. Please
determine each of the following:
A. Total Consolidated Sales Revenue for 2014

B. Total Consolidated Cost of Goods Sold for 2014

C. Consolidated Ending Inventory for December 31, 2014

Part II
t the beginning of 2014 Peri Co. created a wholly owned subsidiary, Speri Co., to handle the marketing and sales of its
products. During 2014 Peri manufactured goods for a total cost of $1,000,000. It sold 80% of these items to Speri for
$1,200,000. Speri sold 75% of what it purchased from Peri to customers for $1,500,000. (Peri only sold to Speri and
Speri only purchased from Peri.) In the 2014 annual consolidated financial statements for Peri and Speri, what should
be reported for each of the following:
A. Total Consolidated Sales Revenue for 2014

B. Total Consolidated Cost of Goods Sold for 2014

C. Consolidated Ending Inventory for December 31, 2014

Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and 10,000 shares of 9%, $100 par preferred stock. It enters into the following transactions on December 31:

Required:

Prepare journal entries to record the transactions on December 31. Additional Instructions

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GENERAL JOURNAL

Problem 17-38 Analyze Performance for a Restaurant (LO 17-5)

Doug’s Diner is planning to expand operations and is concerned that its reporting system might need improvement. The master budget income statement for the Downtown Doug’s, which contains a delicatessen and restaurant operation, follows (in thousands):

The company uses the following performance report for management evaluation:

^a There is no sales price variance.

^b Variable costs; all other costs are fixed.

Required:

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $15,300; cost of goods sold, $6,200; selling expenses, $1,300; general and administrative expenses, $800; interest revenue, $40; interest expense, $180. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount.

1. Investments were sold during the year at a loss of $220. Schembri also had an unrealized gain of $320 for the year on investments in debt securities that qualify as components of comprehensive income.
2. One of the company’s factories was closed during the year. Restructuring costs incurred were $1,200.
3. During the year, Schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of $560 in 2021 prior to the sale, and its assets were sold at a gain of $1,400.
4. In 2021, the company’s accountant discovered that depreciation expense in 2020 for the office building was understated by $200.
5. Negative foreign currency translation adjustment for the year totaled $240.

Required:
1. Prepare Schembri’s single, continuous multiple-step statement of comprehensive income for 2021, including earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares were issued on July 1, 2021.
2. Prepare a separate statement of comprehensive income for 2021