Nelson Corporation issues 6,000 shares of $100 par preferred stock at a price of $112 per share on December 31. A stock warrant is attached to each share of preferred stock that enables the holder to purchase one share of $10 par common stock for $25. Immediately after issuance, the preferred stock begins selling ex rights for $110 per share. The warrants (which expire in 30 days) also begin trading for $4 per warrant.

Required:

Prepare the journal entry to record the sale of the preferred stock on December 31. Additional Instructions

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Prepare the journal entry to record the issuance of 5,000 shares of common stock in exchange for 5,000 warrants and $25 per share on December 31. Additional Instructions

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Prepare the journal entry to record the expiration of 1,000 warrants on December 31. Additional Instructions

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Problem #1 Mr. Blue is a licensed skin doctor. During the first month of the operation of his business, the following events and transactions occurred.

·             April 1 Invested $20,000 cash in his business.

·             1 Hired a secretary-receptionist at a salary of $700 per week payable monthly.

·             2 Paid office rent for the month $1,100.

·             3 Purchased doctor office’s supplies on account from Dazzle Company $4,000.

·             10 Performed medical services and billed insurance companies $5,100.

·             11 Received $1,000 cash advance from Sebastian for the medical service.

·             20 Received $2,100 cash for services performed from James.

·             30 Paid secretary-receptionist for the month $2,800.

·             30 Paid $2,400 to Dazzle for accounts payable due.

Mr. Blue uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 301 Owner’s Capital, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

Instructions

(a) Journalize the transactions.

(b) Post to the ledger accounts.

(c) Prepare a trial balance on April 30, 2018

_____________________________________________________________________________________________________

Problem #3 The adjusted trial balance columns of the worksheet for Company, owned by Meteor and Blue, are as follows.

Meteor and Blue’s COMPANY

Worksheet

For the Year Ended December 31, 2018

Instructions

(a) Complete the worksheet by extending the balances to the financial statement columns.

(b) Prepare an income statement, owner’s equity statement, and a balance sheet.

(Note: $5,000 of the notes payable become due in 2019.) D. Thao did not make any additional investments in the business during the year.

(c) Prepare the closing entries.

Bridgeport Company
Worksheet (Partial)
For the Month Ended April 30, 2019

Adjusted Trial Balance

Cash10,000

Accounts Receivable8,080

Prepaid Rent2,500

Equipment22,700

Accumulated Depreciation—Equip.5,500

Notes Payable5,700

Accounts Payable5,500

Common Stock19,460

Retained Earnings8,100

Dividends3,400

Service Revenue15,000

Salaries and Wages Expense10,980

Rent Expense900

Depreciation Expense700

Interest Expense60

Interest Payable  60   

Totals59,320

Journalize the closing entries at April 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

THIS IS WHAT I NEED HELP WITH!!! THANK YOU  
(1)   Apr. 30  
enter an account title for the first entry to close revenue account on April 30
enter a debit amount
enter a credit amount
enter an account title for the first entry to close revenue account on April 30
enter a debit amount
enter a credit amount
(To close revenue account)
(2)   Apr. 30  
enter an account title for the second entry to close expense accounts on April 30
enter a debit amount
enter a credit amount
enter an account title for the second entry to close expense accounts on April 30
enter a debit amount
enter a credit amount
enter an account title for the second entry to close expense accounts on April 30
enter a debit amount
enter a credit amount
enter an account title for the second entry to close expense accounts on April 30
enter a debit amount
enter a credit amount
enter an account title for the second entry to close expense accounts on April 30
enter a debit amount
enter a credit amount
(To close expense accounts)
(3)   Apr. 30  
enter an account title for the third entry to close net income or loss on April 30
enter a debit amount
enter a credit amount
enter an account title for the third entry to close net income or loss on April 30
enter a debit amount
enter a credit amount
(To close net income / (loss))
(4)   Apr. 30  
enter an account title for the fourth entry to close dividends on April 30
enter a debit amount
enter a credit amount
enter an account title for the fourth entry to close dividends on April 30
enter a debit amount
enter a credit amount
(To close dividends)

The Pritzker Music Pavilion in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts live concerts attended by over half a million patrons a year. A group of local organizers, led by a prominent local businesswoman, would like to use the pavilion for a concert to benefit Ceres, a non-profit, national network of investors and environmental organizations working with companies and investors to address sustainability challenges such as global climate change. If the pavilion management agrees to host the concert, the organizers will donate all profits to Ceres (or absorb any losses).

Based on the following revenue and cost information, the organizers would like answers to several questions.

There are three sources of revenue for the concert:

Tickets will be sold for $16.00 each.

A large multinational corporation headquartered in Chicago will donate $2.00 per ticket sold.

Each concert attendee is expected to spend an average of $16.00 for parking, food, and merchandise.

On the expense side, there are also three components:

A popular national group has agreed to perform at the concert. Normally, the group demands a significant fixed fee to perform, but to reduce the risk for the organizers, the group has agreed to perform for $6.50 per ticket sold.

The organizers will pay several companies to operate the parking, food, and merchandise concessions. They will pay $24,000 plus 14% of all parking, food, and merchandise revenue.

The organizers will pay the pavilion $85,000 plus $6.00 per person attending to cover its operating expenses (production, maintenance, advertising, etc.).

REQUIRED [ROUND YOUR CM ANSWER TO THE NEAREST CENT; ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEAREST DOLLAR.]

Part A
1. What is the estimated contribution margin per ticket sold for the benefit concert?    

2. What are the estimated total fixed costs for the benefit concert?    

Part B
3. What is the estimated profit from the benefit concert if 11,500 tickets are sold?    

4. How many tickets must be sold in order for concert profit to be $90,000?    

5. Assuming a tax rate of 31% on profits from the concert, what must dollar ticket sales be in order for after-tax concert profits to be $90,000?    

Part C
6. Assume that the organizers can negotiate the fixed portion of the pavilion's operating expenses. If the organizers expect to sell 11,500 tickets, how much operating fixed costs can they afford to pay and still earn a profit of $90,000 (ignore taxes)?

I just need to understand Question 1 and 2. I just wanted to make sure I did the revenue management right.

Freedom Airlines recently started operations in the Southwest. The airline owns two airplanes, one based in Phoenix and the other in Denver. Each airplane has a coach section with 140 seats available. Each afternoon, the Phoenix based airplane flies to San Francisco with stopovers in Las Vegas and in San Diego. The Denver-based airplane also flies to San Francisco with stopovers in Las Vegas and in San Diego. Each airplane returns to its home-base with no stopovers.

Freedom Airlines uses two coach-fare classes: A discount fare (A) and a full fare (B). Discount fares are available with a 21-day advance purchase. Full fares applied at any time, up to the time of the flight.

Below is the daily fare and demand data for 16 selected Freedom Airline itineraries. Itineraries 1 through 6 apply to the Phoenix based airplane (leg 1); itineraries 7 through 12 apply to the Denver based airplane (leg 2); itineraries 13 and 14 apply to the Phoenix based airplane (leg 3); itineraries 15 and 16 apply to the Denver based airplane (leg 4):

1. Develop a revenue management (maximizing) model based on the information given in the scenario.
2. How many seats should be allocated to each of the 16 itineraries to maximize revenue?

Said Al Hamli and his friend Khaled Al Masri are the owners of a small hotel, the Sun Star, in the Red Sea town of Hurghada. Close to Cairo, the resort town has grown from a fishing village to one of Egypt’s famous vacation spots. Hurghada is the gateway to many small islands and offshore reefs favored by recreational snorkelers and divers and many tourists combine their stay with excursions to the Nile Valley, the Great Pyramids and Luxor.

To take advantage of the growing numbers of tourists, particularly from Europe and the Middle East, Said and Khaled are planning to double the room capacity of their hotel by adding a second building to the already existing structure. Fortunately, Said recognized the great potential of Hurghada ten years ago, well before the town became a hub for recreational tourism, and bought the land adjacent to the hotel for relatively little money when it was still under construction.

Now, Said and Khaled are studying the new layout and trying to determine if the expected revenues justify the substantial initial investment of EGP 70 million ($11.8 million). According to their calculations, operating cost would rise by EGP 23.8 million ($4 million) in the first year, which would include hiring and training of new personnel, maintenance of facilities and equipment etc., and likely increase by about 5 percent per year thereafter. With an aggressive marketing strategy, Said and Khaled believe that a revenue enhancement of EGP 20.8 million in the first year is realistic and that a subsequent annual increase of about 15 percent for eight to nine years, with revenues leveling off thereafter, can be achieved. Ideally, Khaled would like to retire in ten years. Seeking advice from you, a knowledgeable friend, they share their detailed cost and revenue projections with you.

QUESTIONS

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:

Chart of Accounts

General Journal

Prepare journal entries to record the transactions on December 31. Memorandum entry is not recorded. Additional Instruction

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Record items 1 and 2 on page 1 and items 3-5 on page 2

ANZflix, a media-services provider, charges subscribers $13.49 per month. To attract more customers, the Management and Product Planning team spents an estimated cost at $52,000 to produce and deploy products across all user interfaces. Also, the Software Engineering team maintains all systems and infrastructure to ensure that members can continue to sign up and watch ANZflix. This maintainance costs ANZflix $56,000 per month. ANZflix uses a server in Taiwan to deliver streaming videos to its subscribers and the facility runs at a cost of $135 per month. Another cost incurred by ANZflix includes $0.02 per GB (GigaByte) of bandwidth to deliver content. In addition, the external studios making the content are paid $0.15 every time for a subscriber watches one program. A typical ANZflix subscriber will watch 30 programs, streaming 65GB of film and TV shows per month. Each subscriber will also cost ANZflix $1.14 per month to maintain their membership. (a) Using the above information, calculate: (i) The break-even number of subscribers per month for ANZflix. (ii) The monthly revenue at break-even. Show all working out including the modelling and solution steps. (b) Provide an EXCEL graph detailing the necessary information to show the break-even points contained in your responses to parts (a) of this question. The graph must illustrate the B.E.P. and the region corresponding to profits and the region corresponding to losses. Your student ID must be included as a part of the title of the graph. (c) How many subscribers are required to obtain a profit of $120,000 per month? What is the monthly revenue for this number of subscribers? Show all working out including the modelling and solution steps. (d) The marketing department is forecasting that if the subscription price is reduced by 10%, Anzflix will attract 35% more subscribers than the current number when monthly profit is $100,000. However, as they don’t have a degree in analysing data they need you to make sure they aren’t making bad recommendations. Calculate the new break-even number of subscribers, the new revenue and thus the new profit for these changes. Show all working out including the modelling and solution steps. (e) What effect does the change in part (d) have on the contribution margin? Explain the effect of this change on the expected break-even number in part (a). Support your justification with calculation of both contribution margins.

The country of Freelandia gained independence a few years ago and is mounting a major effort to promote new agricultural development in previously underdeveloped regions. A trucking operator in the town of K has previously been providing only local service. Now that a new major agricultural development program is under way, this operator is considering providing farm-to-market service to carry agricultural and other natural products from their origin in locality M to market at K. The distance is 150 miles (one way), with no intermediate major settlements. After discussions with the local agents of the producers at M, the trucker estimates that the demand function for shipments from M to K is

? = ? + ?₀? − ?₁P

where V is volume in tons per week, Q is frequency of shipments (per week), P is price charged per ton, and a₀, a₁, and Z are parameters. Based upon an average traveling speed of 30 miles per hour, plus a loading or unloading time of 3 hours at each end, he estimates that he can manage at the most one round trip every two days, so Q = 3 per week. He also figures that his costs are related to the mileage he drives per week; his total cost per week is:

?? = ?₀ + ?₁?_?

where m_T = 300Q is the total round-trip mileage driven and b₀and b₁ are parameters. The truck carries 15 tons. He is considering offering an initial frequency of 1 or 2 trips per week at a rate of $25.00 or $30.00 per ton. Assume b₀ = $270, b₁ = $0.50, Z = 25, a₀ = 13, a₁ = 1.

a. For these four combinations of frequency and price, what would be the tonnage carried, the gross revenues, the total cost, and the net revenue?

b. Which of the four options would be preferred by the operator if his objective where to maximize net revenue? To minimize costs? To maximize volume carried? Which option would be preferred by users (shippers)? Can both interests get their first choice simultaneously? If not, why not?

c. For the proposed service the predominant movement is from M to K; the amount of freight to be carried in the reverse direction is negligible. There is a possibility of  picking additional cargo at D to go to M; this would incur a detour of 100 miles additional but could result in an additional load and source of revenue. Would it be profitable for this operator to make the detour? Discuss qualitatively

At the end of 2016, its first year of operations, Swelland Company reported a pretax operating loss of $32,000 for both financial reporting and income tax purposes. At that time, Swelland had no positive verifiable evidence that it would earn future taxable income. However, due to successful management, the company reported pretax operating income (and taxable income) of $70,000 in 2017. During both years, the income tax rate was 30%, and no change had been enacted for future years.

Required:

Prepare Swelland’s income tax journal entries on December 31, 2016.

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Prepare Swelland’s income tax journal entry on December 31, 2017. Additional Instruction

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Prepare the lower portion of Swelland’s 2017 income statement. Additional Instructions