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

c#

In Chapter 2, you created an interactive application named MarshallsRevenue. The program prompts a user for the number of interior and exterior murals scheduled to be painted during the next month by Marshall’s Murals.

Next, the programs compute the expected revenue for each type of mural when interior murals cost $500 each and exterior murals cost $750 each. The application also displays the total expected revenue and a statement that indicates whether more interior murals are scheduled than exterior ones.

Now, modify the application to accept a numeric value for the month being scheduled and to modify the pricing as follows:

• Because of uncertain weather conditions, exterior murals cannot be painted in December through February, so change the number of exterior murals to 0 for those months.

• Marshall prefers to paint exterior murals in April, May, September, and October. To encourage business, he charges only $699 for an exterior mural during those months. Murals in other months continue to cost $750.

• Marshall prefers to paint interior murals in July and August, so he charges only $450 for an interior mural during those months. Murals in other months continue to cost $500

using System;
using static System.Console;
class MarshallsRevenue
{
static void Main()
{
const int INTERIOR_PRICE = 500;
const int EXTERIOR_PRICE = 750;
string entryString;
int numInterior;
int numExterior;
int revenueInterior;
int revenueExterior;
int total;
bool isInteriorGreater;
Write("Enter number of interior murals scheduled >> ");
entryString = ReadLine();
numInterior = Convert.ToInt32(entryString);
Write("Enter number of exterior murals scheduled >> ");
entryString = ReadLine();
numExterior = Convert.ToInt32(entryString);
revenueInterior = numInterior * INTERIOR_PRICE;
revenueExterior = numExterior * EXTERIOR_PRICE;
total = revenueInterior + revenueExterior;
isInteriorGreater = numInterior > numExterior;
WriteLine("{0} interior murals are scheduled at {1} each for a total of {2}",
numInterior, INTERIOR_PRICE.ToString("C"), revenueInterior.ToString("C"));
WriteLine("{0} exterior murals are scheduled at {1} each for a total of {2}",
numExterior, EXTERIOR_PRICE.ToString("C"), revenueExterior.ToString("C"));
WriteLine("Total revenue expected is {0}", total.ToString("C"));
WriteLine("It is {0} that there are more interior murals scheduled than exterior ones.", isInteriorGreater);
}
}

Lamplighter Company, the lessor, agrees to lease equipment to Tilson Company, the lessee, beginning January 1, 2016. The lease terms, provisions, and related events are as follows:

Required:

selling price implied by the lease is $148443.65.

I need help with the boxes that don't have green check marks in them.

Bailand Company purchased a building for $210,000 that had an estimated residual value of $10,000 and an estimated service life of 10 years. Bailand purchased the building 4 years ago and has used straight-line depreciation. At the beginning of the fifth year (before it records depreciation expense for the year), the following independent situations occur:

Bailand estimates that the asset has 8 years’ life remaining (for a total of 12 years). Prepare the journal entry on December 31 to record depreciation in the fifth year after the change in estimate. Ignore income taxes.

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Prepare the journal entry on December 31 to record depreciation in the fifth year after the change in depreciation method. Round your answers to the nearest dollar.

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Prepare the journal entries on December 31 to record the prior period adjustment for the error and depreciation in the fifth year. Ignore income taxes.

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Required information

[The following information applies to the questions displayed below.]

The City of Lynnwood was recently incorporated and had the following transactions for the fiscal year ended December 31.

1. The city council adopted a General Fund budget for the fiscal year. Revenues were estimated at $2,100,000 and appropriations were $2,000,000.
2. Property taxes in the amount of $2,040,000 were levied. It is estimated that $14,000 of the taxes levied will be uncollectible.
3. A General Fund transfer of $30,000 in cash and $310,000 in equipment (with accumulated depreciation of $75,000) was made to establish a central duplicating internal service fund.
4. A citizen of Lynnwood donated marketable securities with a fair value of $900,000. The donated resources are to be maintained in perpetuity with the city using the revenue generated by the donation to finance an after school program for children, which is sponsored by the culture and recreation function. Revenue earned and received as of December 31 was $50,000.
5. The city’s utility fund billed the city’s General Fund $135,000 for water and sewage services. As of December 31, the General Fund had paid $134,000 of the amount billed.
6. The central duplicating fund purchased $9,500 in supplies.
7. Cash collections recorded by the general government function during the year were as follows:

8. During the year the internal service fund billed the city’s general government function $20,700 for duplicating services and it billed the city’s utility fund $13,100 for services.
9. The city council decided to build a city hall at an estimated cost of $5,100,000. To finance the construction, 5 percent bonds were sold at the face value of $5,100,000. A contract for $4,600,000 has been signed for the project; however no expenditures have been incurred as of December 31.
10. The general government function issued a purchase order for $37,000 for computer equipment. When the equipment was received, a voucher for $32,900 was approved for payment and payment was made.

a. For each transaction number identify all of the fund and/or government-wide activity journals in which journal entries must be made. (Select all that apply.)

1. Jan. 1: Xenon issued $40,000 of common stock.
2. Jan. 1: Xenon paid $18,000 cash to purchase an equipment. The equipment has an estimated useful life of 5 years and an estimated salvage value of $3,000.
3. Jan. 1: Xenon paid $7,000 cash for two years of insurance coverage starting on Jan. 1, 2020.
4. March 1:Xenon rented a building and paid $2,400 for one year’s rent (starting 3/1).
5. April 1: Xenon purchased $5,700 of inventory on account.
6. June 1: Xenon sold $23,000 of software on account. The cost is $3,500.
7. Sept. 1: Xenon collected $7,000 cash from its customers for the previous sales on account.
8. Oct 31: Xenon paid $5,000 cash for employee wages earned during the first ten months (Jan 1 to October 31, $500 per month).
9. Nov 1: Xenon paid $3,300 cash to suppliers for inventory purchases made on account.
10. Dec 1: Xenon started an on-line service where customers pay an annual subscription fee when they sign up for a 12-month service plan. On Dec. 1, Xenon received $3,600 of cash from customers for one year of subscription fees (for online services from Dec 1, 2020 to Nov 30, 2021).

Additional Info:

-Xenon uses Straight Line Depreciation

-Two months of employee wages was accrued on Dec. 31, 2020. Xenon plans to pay employees Jan. 1 2021

Questions

Fill out the summary of T-Accounts for

1. Revenue and Expenses (Temporary Income Statement Accounts)

       -Includes: Sales and Service Revenue, Costs of Goods sold, Wages Expense, Insurance Expense, Rent Expense, Depreciation Expense.

2. Assets (Permanent Balance Sheet Accounts)

      -Includes: Cash, Inventory, accounts receivable, prepaid insurance, equipment, accumulated depreciation, prepaid rent.

3. Liabilities and Equities (Permanent Balance Sheet Accounts)

      -Includes: Accounts payable, unearned revenue, wages payable, common stock, retained earnings

4. What are the total Assets?

5. What are the total Liabilities & Shareholder's Equity?

    Note: Total assets and Liabilities + Shareholders equity should balance.

Bailand Company purchased a building for $148,000 that had an estimated residual value of $8,000 and an estimated service life of 10 years. Bailand purchased the building 4 years ago and has used straight-line depreciation. At the beginning of the fifth year (before it records depreciation expense for the year), the following independent situations occur:

Bailand estimates that the asset has 8 years’ life remaining (for a total of 12 years). Prepare the journal entry on December 31 to record depreciation in the fifth year after the change in estimate. Ignore income taxes. Additional Instruction

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Prepare the journal entry on December 31 to record depreciation in the fifth year after the change in depreciation method. Additional Instruction

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Prepare the journal entries on December 31 to record the prior period adjustment for the error and depreciation in the fifth year. Ignore income taxes. Additional Instruction

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Requirement

a. Details of the Prepaid Insurance account reveal a January 1​ (beginning of the​ year) debit balance of $ 2200 and a debit to the account on March 31 for $ 3300 to record the payment of an annual insurance premium. At December 31​, $ 400 is still prepaid. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.) Journal Entry Date Accounts and Explanation Debit Credit Dec 31 Insurance Expense 5100 Prepaid Insurance 5100

b. Greens pays employees each Friday. The amount of the weekly payroll is $ 5700 for a​ five-day work week. The current accounting period ends on a Tuesday. Journal Entry Date Accounts and Explanation Debit Credit Dec 31 Salary Expense 5700 Salary Payable 5700

c. Greens has a note receivable. During the current​ year, Greens has earned accrued interest revenue of $ 400 that it will collect next year. Journal Entry Date Accounts and Explanation Debit Credit Dec 31

d. The beginning balance of supplies was $ 2900. During the​ year, Greens purchased supplies for $ 6100​, and at December 31 the supplies on hand total $2100. Journal Entry Date Accounts and Explanation Debit Credit Dec 31

e. Greens is providing services for Orca ​Investments, and the owner of Orca paid Greens $ 12000 as the annual service fee. Greens recorded this amount as Unearned Service Revenue. Greens estimates that it has earned 80 % of the total fee during the current year. Journal Entry Date Accounts and Explanation Debit Credit Dec 31

f. Depreciation for the current year includes Office​ Furniture, $ 3 comma 500​, and​ Equipment, $ 6200. ​(Make one journal entry for all​ depreciation.) Journal Entry Date Accounts and Explanation Debit Credit Dec 31