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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
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 21,200 portable grills, 58,300 stationary grills, and 5,300 smokers. Information on the three models is as follows:
| Portable | Stationary | Smokers | |
| Price | $95 | $201 | $249 |
| Variable cost | |||
| Per unit | 50 | 129 | 139 |
Total fixed cost is $2,358,760.
Required:
1. What is the sales mix of portable grills to stationary grills to smokers?
2. Compute the break-even quantity of each product.
3. Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution margin ratio as a percentage rounded to two decimal places; round the break-even sales revenue to the nearest dollar.
4. Compute the margin of safety for the coming year.
In: Accounting
Lakeview Company completed the following two transactions. The annual accounting period ends December 31.
Required:
In: Accounting
The accountant for Mystique Company, a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue earned during the year , $21,950; and (b) accrued wages, $6,100.
| a. | Indicate the effect of each error, considered individually, on the income statement for the current | |||||||||||
| year ended July 31. Also indicate the effect of each error on the July 31, balance sheet. Set up | ||||||||||||
| a table similar to the following and record your answers by inserting the dollar amount in the | ||||||||||||
| appropriate spaces. Insert a zero if the error does not affect the item. | ||||||||||||
| Error (a) | Error (b) | |||||||||||
| Over-stated | Under-stated | Over-stated | Under-stated | |||||||||
| 1 | Revenue for the year would be | $ | $ | $ | $ | |||||||
| 2 | Expenses for the year would be | $ | $ | $ | $ | |||||||
| 3 | Ne income for the year would be | $ | $ | $ | $ | |||||||
| 4 | Assets at July 31 would be | $ | $ | $ | $ | |||||||
| 5 | liabilities at July 31 would be | $ | $ | $ | $ | |||||||
| 6 | Owner's equity at July 31 would be | $ | $ | $ | $ | |||||||
| b. | If the net income for the current year had been $24,300, what would have been the correct net | |||||||||||
| income if the proper adjusting entries had been made? | ||||||||||||
In: Accounting
Lakeview Company completed the following two transactions. The annual accounting period ends December 31.
On December 31, calculated the payroll, which indicates gross earnings for wages ($100,000), payroll deductions for income tax ($10,000), payroll deductions for FICA ($7,500), payroll deductions for American Cancer Society ($3,750), employer contributions for FICA (matching), and state and federal unemployment taxes ($875). Employees were paid in cash, but payments for the corresponding payroll deductions have not yet been made and employer taxes have not yet been recorded.
Collected rent revenue of $6,375 on December 10 for office space that Lakeview rented to another business. The rent collected was for 30 days from December 12 to January 10 and was credited in full to Deferred Revenue.
Required:
1. & 2. Prepare the journal entries to record payroll on December 31, the collection of rent on December 10 and adjusting journal entry on December 31.
3. Show how any of the liabilities related to these items should be reported on the company’s balance sheet at December 31.
In: Accounting
Sandler Company completed the following two transactions. The annual accounting period ends December 31.
Required:
In: Accounting
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 16,200 portable grills, 59,400 stationary grills, and 5,400 smokers. Information on the three models is as follows:
| Portable | Stationary | Smokers | |
|---|---|---|---|
| Price | $89 | $195 | $253 |
| Variable cost | |||
| per unit | 45 | 131 | 140 |
Total fixed cost is $2,078,310.
| Required: | |
| 1. | What is the sales mix of portable grills to stationary grills to smokers? |
| 2. | Compute the break-even quantity of each product. |
| 3. | Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution margin ratio as a percentage rounded to two decimal places; round the break-even sales revenue to the nearest dollar. |
| 4. | Compute the margin of safety for the coming year. |
In: Accounting
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 19,200 portable grills, 43,200 stationary grills, and 4,800 smokers. Information on the three models is as follows:
|
Portable |
Stationary |
Smokers |
|
| Price | $92 | $205 | $251 |
| Variable cost | |||
| per unit | 44 | 127 | 138 |
Total fixed cost is $2,175,120.
| Required: | |
| 1. | What is the sales mix of portable grills to stationary grills to smokers? |
| 2. | Compute the break-even quantity of each product. |
| 3. | Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution margin ratio as a percentage rounded to two decimal places; round the break-even sales revenue to the nearest dollar. |
| 4. | Compute the margin of safety for the coming year. |
In: Accounting