Problem 10-1A

On January 1, 2017, the ledger of Ivanhoe Company contained these liability accounts.

During January, the following selected transactions occurred.

During January, the company’s employees earned wages of $71,200. Withholdings related to these wages were $5,447 for Social Security (FICA), $5,086 for federal income tax, and $1,526 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tax expense as of January 31.

a) Journalize the January transactions

b) Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense.

c) Prepare the current liabilities section of the balance sheet at January 31. 207. Assume no change in Accounts payable.

Problem 10-1A

On January 1, 2017, the ledger of Sheridan Company contained these liability accounts.

During January, the following selected transactions occurred.

During January, the company’s employees earned wages of $78,800. Withholdings related to these wages were $6,028 for Social Security (FICA), $5,629 for federal income tax, and $1,689 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tax expense as of January 31.

a)Journalize the January transactions.

b)Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense

c)Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in Accounts Payable.

Revised Problem 5-65

Fresno Fiber Optics, Inc. manufactures fiber optic cables for the computer and telecommunications industries. At the request of the company VP of marketing, the cost management staff has recently completed a customer profitability study. The following activity-based costing information was the basis for the analysis.

The following additional information has been completed for Fresno Fiber Optics for two of its customers, Trace Telecom and Caltrex Computer, for the most recent year.

Given the information below, complete the following requirements:

A. Rank the customers by their gross margin as a percent of sales revenue.

B. Perform customer profitability analysis by generating an operating income for each customer segment through the use of activity-based costing.

C. Rank segments by their respective operating income as a percent of sales.

D. If the relative rankings of the segments using operating income as a percent of sales is different from the relative rankings using gross margin as a percent of sales, then provide two reasons why this change might have occurred.

Space is provided on the following two pages for your answer. Be sure to show your work for partial credit should you make an error.

Pharmacy

Hospital

HMO

Clinics

Revenue

$1,000,000

$1,200,000

$800,000

$600,000

CGS

$670,000

$720,000

$560,000

$390,000

Activity

Rate

Cost Driver

Order taking

$200.00

per purchase order

Information requests

$350.00

per request

Sales calls

$400.00

per sales call

Distribution

$150.00

per delivery

Expedited orders

$500.00

per expedited order

Activity Cost Driver Quantities

Activity Cost Driver

Pharmacy

Hospital

HMO

Clinics

Number of purchase orders

100

200

20

80

Number of requests

50

100

20

20

Number of sales calls

50

200

10

40

Number of deliveries

80

100

10

40

Number of expedited orders

40

150

8

60

Case

Azzahra is a book publisher, publishes and distributes educational and non-educational books and sell them to libraries and bookstores within Saudi Arabia and in the Arabian Gulf Region (AGR).

Azzahra employs a professional editorial team. All printing and binding activities are outsourced. The annual revenue total 250 millions Saudi Riyals which are disbursed as follows:

Cash expenditures are 150 million Saudi Riyals. Non-cash expenditures are 50 million Saudi Riyals. While revenues may be paid in different currencies, all processed out in the main center in Riyadh and using Saudi Riyal.

Requirement

Suppose you are a member of the professional editorial team and your task is to audit the revenue and accounts receivable. You probably would like to perform your audit in the following order:

1- Establish audit objectives

2- Determine the scope of the audit

3- Apply the Seven Habits of Highly Effective People (expected outcomes).

4- Understand the auditee (gather relevant information, analytical procedures, control

analysis, process flow, process risks)

5- Identify and assess risks

6- Identify key controls

7- Evaluate controls

8- Create test plan

9- Develop work program

10- Gather evidences

11- Evaluate evidences and reach conclusion

12- Develop observation and formulate recommendation.

Gulf Delivery Service, Inc. completed the following transactions during January, 2018:

1Shareholders invested in the business $25,000 cash and a delivery truck valued at $35,000 in exchange for common stock.

2.Purchased supplies for $1,000 cash.

3.Paid $2,400 for a one-year insurance policy, effective January1.

3.Performed delivery services for a customer and received $2,500 cash.

4.Completed a large delivery job for a customer on account for $8,000.

5.Paid $6,000 for employee salaries.

6.Performed delivery services for customers and received $55,000 cash.

7.Collected $4,000 in advance for delivery service to be performed later.

8.Collected $3,000 cash from a customer on account.

9.Purchased fuel for the truck , paying $1,500 with a company credit card (Credit accounts payable).

10.Performed delivery services on account, $4,500.

11.Paid office rent $2,500.

12.Paid $500 for accounts payable.

13.Paid cash dividends of $10,000.

a.

Record each transaction in the journal. Key each transaction by its letter (Explanations are not required).

b.Post the transactions that you recorded in requirement 1 to the ledger accounts using T-accounts. The ledger for Gulf Delivery Service contains the following accounts:

Cash                                                    Service revenue

Accounts receivable                            Salaries expense

Supplies                                               Depreciation expense

Prepaid insurance                                Insurance expense

Delivery truck                                     Fuel expense

Accumulated depreciation                  rent expense

Accounts payable                                supplies expense

Salaries payable                                              

Unearned service revenue

Common stock

Retained earnings

Dividends

Income summary

Laundromat is trying to enhance the services it provides to? customers, mostly college students. It is looking into the purchase of new? high-efficiency washing machines that will allow for the? laundry's status to be checked via smartphone.

FulmarFulmar

estimates the cost of the new equipment at

$178,000.

The equipment has a useful life of 9 years.

FulmarFulmar

expects cash fixed costs of

$80,000

per year to operate the new? machines, as well as cash variable costs in the amount of

15%

of revenues.

FulmarFulmar

evaluates investments using a cost of capital of

6?%.

Requirement 1. Calculate the payback period and the discounted payback period for this? investment, assuming

FulmarFulmar

expects to generate

$ 190 comma 000$190,000

in incremental revenues every year from the new machines.? (Round your answer to two decimal? places.)

Requirements:

Additional Information:

i   Rent expires (is used up) at a rate of $700 per month.

ii   Monthly depreciation on equipment is $300.

iii   Interest on the 6 per cent promissory note is paid quarterly on
1 April, 1 July, 1 October and 1 January.

iv   Performed services for which payment was received in April– $800.

v   Received electricity bill to be paid next month – $500.

vi   Services to customers earned during June but unrecorded at 30 June, $2500

. vii   Supplies on hand totaled $1500 at 30 June. viii Owed employees for salaries for the last week of June to be
paid in July – $800

. ix   Prime Realty prepares adjusting entries each quarter adjustments were last made on 31 march

Required
a   Prepare all adjusting journal entries for the quarter ending 30 June.
b   Post journal entries to T-accounts using totals on the unadjusted trial balance as the opening balances

c   Prepare an adjusted trial balance as of 30 June

The POL Company had started its operations in 2016. The balance sheet for December 31, 2016, showed the following accounts balances (there were no other accounts listed):

Accounts receivables 45

Unearned revenue 40

Accumulated depreciation 10

Common stock 500

Retained earnings 57

Property plant and equipment (gross) 200

Inventory 75

Accounts payable 40

Cash 309

Prepaid rent ______

During 2017 the following transactions occurred:

1. POL purchased $375 worth of inventory on account.

2.Payments on Accounts payable were $365.

3.Cash sales were $260; credit sales were $360.

4.Ending inventory was $59.

5.Depreciation expense was $20.

6.Collections from customers (not including cash sales) were $312.

7. The Prepaid rent had expired during the year.

8. POL hired one employee, who worked for the entire year at $4 per month. At the end of the year, POL owes its employee $6.

9.Dividend of $24 was declared and paid during 2017.

10. On the last day of the year, POL gave a loan of $50 to its twin sister company, CLA.

11.Unearned revenue account remained intact during 2017.

a.What was the balance of the Prepaid rent account on December 31, 2016?

b.Record journal entries for all transactions occurred during 2017.

c.Prepare an Income Statement for the year ended December 31, 2017.

d. Prepare a Balance Sheet for December 31, 2017.

Custom Auto Parts started this year with the following balances:

      Cash: $60,000

      Merchandise Inventory: $8,000

      Land: $12,000

      Accounts Payable: $0

      Common Stock: $50,000

      Retained Earnings: $30,000

During the year they had the following transactions:

Purchase $60,000 of merchandise inventory on account, terms 2/10,n/30.

The goods delivered in Event 1 were delivered FOB shipping point. Freight costs of $1,500 were paid in cash by the responsible party

Returned $3,000 of goods purchased in Event 1

Paid the balance due on the goods purchased in Event 1 and recorded the cash discount.

Recognized $59,000 of cash revenue from the sale of merchandise and recognized $45,000 of cost of goods sold from such sale.

The goods sold in Event 5 were delivered to the customers FOB destination. Freight costs of $1,400 were paid in cash by the responsible party.

Paid $9,000 in cash for selling and administrative expenses.

Sold the land for $14,500 in cash.

Using Excel, assuming a perpetual inventory system, record each transaction in the horizontal statements model.

After completing the recording of the transactions, prepare a multistep income statement. Include common size percentages on the income statement.

I need help with this part below!!