Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; End-of-Period Spreadsheet.

The unadjusted trial balance of Recessive Interiors at January 31, 2018, the end of the year, follows:

The following additional accounts from Recessive Interiors' chart of accounts should be used: Wages Payable, 22; Income Summary, 34; Depreciation Expense-Equipment, 54; Supplies Expense, 55; Depreciation Expense-Trucks, 56; Insurance Expense, 57.

The data needed to determine year-end adjustments are as follows:

Supplies on hand at January 31 are $2,850.

Insurance premiums expired during the year are $3,150.

Depreciation of equipment during the year is $5,250.

Depreciation of trucks during the year is $4,000.

Wages accrued but not paid at January 31 are $900.

1- Prepare an adjusted trial balance. List the accounts in order by type: Assets, Liabilities, Capital, Dividends, Revenue and Expenses. If an amount box does not require an entry, leave it blank.

Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use a network of automated teller machines. RSB&T earns revenue by investing the money deposited; currently, it averages 5.50 percent annually on its investments of those deposits. To compete with larger banks, RSB&T pays depositors 0.50 percent on all deposits. A recent study classified the bank’s annual operating costs into four activities.

Data on two representative customers follow.

Required:

a. Compute RSB&T's operating profits.

b. Compute the profit from Customer A and Customer B, assuming that customer costs are based only on deposits. Interest costs = 0.50 percent of deposits; operating costs are 4 percent (= $19,500,000/$487,500,000) of deposits.

c. Compute the profit from Customer A and Customer B, assuming that customer costs are computed using the information in the activity-based costing analysis.

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 65 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,900 per month plus $44 per course plus $4 per student. The company’s sales should average $870 per student.

The company planned to run four courses with a total of 65 students; however, it actually ran four courses with a total of only 59 students. The actual operating results for September appear below:

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Problem 9-20 More Than One Cost Driver [LO9-4, LO9-5]

Directions: Journalize the adjusting entries.

Adjustment for Prepaid Insurance
The Prepaid Insurance account began the year with a balance of $460. During the year, insurance in the amount of $1,040 was purchased. At the end of the year (December 31), the amount of insurance still unexpired was $700. Prepare the year-end entry in journal form to record the adjustment for insurance expense for the year.

Adjustment for Supplies
The Supplies account began the year with a balance of $380. During the year, supplies in the amount of $980 were purchased. At the end of the year (December 31), the inventory of supplies on hand was $440. Prepare the year-end entry in journal form to record the adjustment for supplies expense for the year.

Adjustment for Depreciation
The depreciation expense on office equipment for the month of March is $100. This is the third month that the office equipment, which cost $1,900, has been owned. Prepare the adjusting entry in journal form to record depreciation for March and show the balance sheet presentation for office equipment and related accounts after the March 31 adjustment.

Adjustment for Accrued Wages
Wages are paid each Saturday for a six-day workweek. Wages are currently running $1,380- per week. Prepare the adjusting entry required on June 30, assuming July 1 falls on a Tuesday.

Adjustment for Unearned Revenue
During the month of August, deposits in the amount of $1,100 were received for services to be performed. By the end of the month, services in the amount of $760 had been performed. Prepare the necessary adjustment for the Service Revenue at the end of the month.

Word Doc please!

Problem 4-5 (Algo) Income statement presentation; Restructuring costs; Discontinued operations; Accounting error [LO4-1, 4-3, 4-4, 4-5]

The preliminary 2021 income statement of Alexian Systems, Inc., is presented below:

Additional information:

1. Selling and administrative expense includes $32 million in restructuring costs.
2. Included in other income is $125 million in income from a discontinued operation. This consists of $90 million in operating income and a $35 million gain on disposal. The remaining $7 million is from the gain on sale of investments.
3. Cost of Goods Sold in 2021 was increased by $5 million to correct an error in the calculation of 2020's ending inventory. The amount is material.

Required:
Prepare a revised income statement for 2021 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 25% applies to all income statement items, and that 10 million shares of common stock were outstanding throughout the year. (Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places.)
  

Miller Cereals is a small milling company that makes a single brand of cereal. Recently, a business school intern recommended that the company introduce a second cereal in order to “diversify the product portfolio.” Currently, the company shows an operating profit that is 20 percent of sales. With the single product, other costs were twice the cost of rent.

The intern estimated that the incremental profit of the new cereal would only be 7.5 percent of the incremental revenue, but it would still add to total profit. On his last day, the intern told Miller’s marketing manager that his analysis was on the company laptop in a spreadsheet with a file name, NewProduct.xlsx. The intern then left for a 12-month walkabout in the outback of Australia and cannot be reached.

When the marketing manager opened the file, it was corrupted and could not be opened. She then found an early (incomplete) copy on the company’s backup server. The incomplete spreadsheet is shown as follows. The marketing manager then called a cost management accountant in the controller’s office and asked for help in reconstructing the analysis.

Required:

As the management accountant, fill in the blank cells. (Do not round intermediate calculations. Round your final answers to the nearest whole number. Enter all amounts as positive values.)

Problem 19-8 (Part Level Submission)

The following information was disclosed during the audit of Elbert Inc.

E. Prepare the journal entry to record income taxes for 2018.

F. Draft the income tax section of the income statement for 2018, beginning with “Income before income taxes.”

5. The Claron Corporation’s main competitor, Brighton company, just filed for bankruptcy, presenting a potential opportunity for an increase in customers and revenue at Claron. As a result, several of Brighton’s salespeople have contacted George Wills, Claron’s vice president of sales, inquiring about employment at Claron. Currently Wills has no openings on his 10-person salesforce. However, he does not want to dismiss the Brighton reps, some of whom are top performers that might be able to enhance Brighton’s revenue stream that has been falling for the past year.

            After speaking to his CEO about adding a position to his salesforce, Wills was given permission to do so as long as the new salesperson made more of his salary in commissions than base salary. Wills, however would like to add three of Brighton’s salespeople. Currently there are four salespeople on Wills’s staff that outperform the other six, who are approximately equal in talent. Yet, Wills is hard-pressed to identify a clear laggard whom he would dismiss in favor of the competition’s salespeople. Wills is also concerned that he could disrupt the team chemistry he has worked hard to build the past two years by firing some of his current salespeople and hiring those from Brighton. However, he does not know if he can pass up this opportunity to upgrade his salesforce.

            How should Wills approach this dilemma? Should he hire the new reps and deal with the ramifications of letting two of his people go, or can he afford to pass on the new reps altogether?

Novak Miniature Golf and Driving Range Inc. was opened on March 1 by Scott Verplank. The following selected events and transactions occurred during March. Mar. 1 Invested $52,900 cash in the business in exchange for common stock. 3 Purchased Michelle Wie’s Golf Land for $36,660 cash. The price consists of land $10,170, building $20,650, and equipment $5,840. (Make one compound entry.) 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,540. 6 Paid cash $1,415 for a one-year insurance policy. 10 Purchased golf equipment for $2,440 from Singh Company, payable in 30 days. 18 Received golf fees of $1,101 in cash. 25 Declared and paid a $550 cash dividend. 30 Paid wages of $827. 30 Paid Singh Company in full. 31 Received $777 of fees in cash. Novak uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Common Stock, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense. Journalize the March transactions. (Use Service Revenue account to record fees.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Mar. 3