In 2018, the Westgate Construction Company entered into a
contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2020. Information related to
the contract is as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,604,000 | $ | 4,032,000 | $ | 1,940,400 | |||
| Estimated costs to complete as of year-end | 5,796,000 | 1,764,000 | 0 | ||||||
| Billings during the year | 2,040,000 | 4,596,000 | 3,364,000 | ||||||
| Cash collections during the year | 1,820,000 | 4,000,000 | 4,180,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
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In: Accounting
***Basic company facts: Name of the firm: Britannia Category of the firm: FMCG State of incorporation: Kolkata, West Bengal, India. Year of foundation: 1918 Primary & secondary SIC codes: N/A Independent auditor: BSR & Co Shares listed in: Bangalore stock exchange, national stock exchange, OTCEI, madras stock exchange, Delhi stock exchange, MCX stock exchange etc. Stock ticker symbol: BRITANNIA
1.)
Summarize your firm’s margins that you computed in No. 6 for each of the last three years.
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Margins |
Most Recent Year |
Next Most Recent Year |
Second Most Recent Year |
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Gross profit margin % (gross margin/sales revenue |
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Operating profit margin % (Operating income/sales revenue |
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Net profit margin % Net income/sales revenue |
In: Finance
[The following information applies to the questions
displayed below.]
In 2018, the Westgate Construction Company entered into a contract
to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2020. Information related to the contract is
as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,072,000 | $ | 2,738,000 | $ | 2,849,000 | |||
| Estimated costs to complete as of year-end | 5,328,000 | 2,590,000 | 0 | ||||||
| Billings during the year | 2,160,000 | 2,650,000 | 5,190,000 | ||||||
| Cash collections during the year | 1,880,000 | 2,700,000 | 5,420,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Calculate the amount of revenue and gross profit (loss) to be
recognized in each of the three years. (Do not round
intermediate calculations. Loss amounts should be indicated with a
minus sign.)
|
In: Accounting
The following information applies to the questions displayed
below.]
In 2021, the Westgate Construction Company entered into a contract
to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2023. Information related to the contract is
as follows:
| 2021 | 2022 | 2023 | |||||||
| Cost incurred during the year | $ | 2,604,000 | $ | 4,032,000 | $ | 1,940,400 | |||
| Estimated costs to complete as of year-end | 5,796,000 | 1,764,000 | 0 | ||||||
| Billings during the year | 2,040,000 | 4,596,000 | 3,364,000 | ||||||
| Cash collections during the year | 1,820,000 | 4,000,000 | 4,180,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Required:
1. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years.
(Do not round intermediate calculations. Loss amounts
should be indicated with a minus sign.)
2021. 2022. 2023
Revenue
Gross profit(loss)
In: Accounting
Chapter 6, #5
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:
| 2021 | 2022 | 2023 | |||||||
| Cost incurred during the year | $ | 2,542,000 | $ | 3,772,000 | $ | 2,074,600 | |||
| Estimated costs to complete as of year-end | 5,658,000 | 1,886,000 | 0 | ||||||
| Billings during the year | 2,020,000 | 4,294,000 | 3,686,000 | ||||||
| Cash collections during the year | 1,810,000 | 3,800,000 | 4,390,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Required:
1. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years.
(Do not round intermediate calculations. Loss amounts
should be indicated with a minus sign.)
| 2021 | 2022 | 2023 | |
| Revenue | |||
| Gross profit(loss) |
In: Accounting
Multiple-Product Break-even, Break-Even Sales Revenue
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows:
| DVDs | Equipment Sets | |
| Price | $8 | $25 |
| Variable cost per unit | 4 | 15 |
Total fixed cost is $74,460.
Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $18 and a variable cost per unit of $12. Total fixed cost must be increased by $24,820 (making total fixed cost $99,280). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same.
Part 1: Sales Mix Instructions and Part 2: Break-Even
1. What is the sales mix of DVDs, equipment
sets, and yoga mats?
3:1:2
2. Compute the break-even quantity of each product.
| Break-even DVDs | units |
| Break-even equipment sets | units |
| Break-even yoga mats | units |
Part 3a: Income Statement
3a. Prepare an income statement for Cherry Blossom Products for the coming year.
| Cherry Blossom Products Inc. | |
| Income Statement | |
| For the Coming Year | |
| $ | |
| $ | |
| $ | |
Feedback
3a. Prepare contribution margin income statement.
Part 3b: Contribution Margin Ratio and Part 4: Margin of Safety
3b. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note: Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.)
| Overall contribution margin ratio | % | |
| Overall break-even sales revenue | $ |
4. Compute the margin of safety for the coming
year in sales dollars.
$
In: Accounting
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In: Accounting
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Prepare Balance Sheet |
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The following is the adjusted trial balance at December 31, 2018 for the Farmer Enterprises. |
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Account Title |
Debits |
Credits |
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Cash |
105,000 |
||
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Investments |
274,000 |
||
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Accounts receivable |
161,000 |
||
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Inventories |
234,000 |
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Loans to employees |
59,000 |
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Prepaid expenses (for 2019) |
35,000 |
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Rent expense |
84,000 |
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Land |
299,000 |
||
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Building |
1,740,000 |
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Machinery and equipment |
656,000 |
||
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Trademark |
171,000 |
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Copyright |
59,000 |
||
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Bad debt expense |
6,200 |
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Depreciation expense |
98,750 |
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Dividends |
40,000 |
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Note receivable |
345,000 |
||
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Interest receivable |
31,000 |
||
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Cost of goods sold |
242,000 |
||
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Accumulated depreciation—building |
639,000 |
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Accumulated depreciation—equipment |
229,000 |
||
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Accounts payable |
208,000 |
||
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Dividends payable (payable on 1/30/19) |
29,000 |
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Interest payable |
35,000 |
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Interest revenue |
42,000 |
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Taxes payable |
59,000 |
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Accumulated other comprehensive income |
125,000 |
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Deferred revenue |
79,000 |
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Notes payable |
338,000 |
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Allowance for uncollectible accounts |
27,000 |
||
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Common stock |
2,076,000 |
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Retained earnings |
168,950 |
||
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Sales revenue |
585,000 |
||
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Totals |
4,639,950 |
4,639,950 |
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Additional Information: |
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1. The common stock represents 500,000 shares of no par stock authorized, 400,000 shares issued and outstanding. |
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2. The loans to employees are due on February 14, 2020. |
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3. The note receivable is due in installments of $86,250, payable on each June 30. Interest is payable annually. |
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4. Investments consist of $35,000 in treasury bills purchased on November 15 of the current year that mature on January 10, 2019, $45,000 in marketable equity securities the company intends to sell in the next year, with the remaining being marketable equity securities that the company does not plan to sell in the next year. |
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5. Deferred revenue represents customer payments for extended service contracts. Forty percent of these contracts expire in 2019, the remainder in 2020. |
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6. Notes payable consists of the following: $40,000 note due in six months, $100,000 note due in six years, and $198,000 note due in three annual installments of $66,000 each, with the next installment due August 31, 2019. |
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In: Accounting
Harlow Company reported the following account balances at December 31, 2019: Cash $25,000 Retained Earnings $53,000 (at January 1, 2019) Advertising Expense $22,000 Cost of Goods Sold $29,000 Rental Revenue $13,000 Copyright $28,000 Supplies $12,000 Accounts Payable $50,000 Common Stock $91,000 Accounts Receivable $15,000 Notes Payable $68,000 Income Tax Expense $12,000 Inventory $59,000 Dividends $11,000 Salaries Expense $14,000 Sales Revenue $97,000 Building $43,000 Trademark $81,000 Mortgage Payable $35,000 Equipment $56,000 The following additional information is available: 1. The note payable was a 3-year loan taken out on March 1, 2017. 2. The mortgage payable was a 15-year loan taken out on May 1, 2010. Calculate Harlow Company's total intangible assets at December 31, 2019.
Calculate Harlow Company's total assets at December 31, 2019.
Calculate Harlow Company's total current liabilities at December 31, 2019.
Calculate Harlow Company's total stockholder's equity at December 31, 2019.
In: Accounting
True or False
1) Journal entries must be made to record the reconciling items on the bank side of the reconciliation.
2) An outstanding check is a check issued by the company and recorded on its books, but not yet paid by its bank.
3) On a bank reconciliation, deposits in transit are subtracted on the book side of the reconciliation.
4) If the bank reconciliation includes a bank service charge, a journal entry is required which debits Cash and credits Miscellaneous expense.
5) If the bank reconciliation includes a deposit in transit, a journal entry is required which includes a debit to cash.
6) If the bank reconciliation includes outstanding checks, no journal entries are required.
7) If the bank reconciliation includes a book error, no journal entries are required.
8) Journal entries that are necessitated by reconciling items on the book side of the reconciliation all include either a debit to Cash or a credit to Cash.
9) If the bank reconciliation includes interest revenue, a journal entry is required which debits Cash and credits Interest revenue.
10) In a bank reconciliation, a book error will be shown on the bank side of the reconciliation.
In: Accounting