As the accountant for Wheatley International, it is your job to prepare the company’s income statement and balance sheet. Use the accounts listed below to construct the statements. Assume that the tax rate is 25%.

I recommend that you should first go through each account and determine if it is a balance sheet account (i.e., asset, liability, or owners' equity) or income statement account (i.e., revenue, costs of goods sold, expense, or net income). Hint: ending inventory goes on both the balance sheet and income statement; on the income statement, both beginning and ending inventory are used to calculate cost of goods sold.

This is a tough assignment. The important thing is to understand is if accounts are balance sheet accounts (i.e., assets, liabilities, or owners' equity) or income statement accounts (i.e., revenue, cost of goods sold, expense, or net income). Additionally, it's important to understand the fundamental accounting equation (A = L + OE).

justing entries

Instructions

Chart of Accounts

Journal

Final Question

Instructions

On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty:

Chart of Accounts

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expected to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The company actually washed 8,300 cars.

The actual operating results for August appear below.

Required:

Compute the company's activity variances for August. (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.)

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:

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 63 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,600 per month plus $40 per course plus $3 per student. The company’s sales should average $880 per student.

The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 59 students. The actual operating results for September were as follows:

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.)

Shaving Cream

You are working with the marketing team for a FMCG firm that produces shaving cream. The team believes that sales of some of the products are closely related to sales of other products. They want you to explore this in a little more depth for two products, SKU 123 and SKU 456. Unfortunately, all of the base sales data for these products has been destroyed. All that you have is the weekly summary data:

The marketing team believes the correlation of these items is 0.8.

Question 1 What would the covariance need to be for the marketing team to be correct?

Now the marketing team wants to understand the potential weekly sales for these two products. Let the sales price for the two SKUs be 12.50, 7.75, respectively.

Question 2 What is the expected weekly revenue?

Assume that marketing is correct and the correlation = 0.8.

Question 3 What is the standard deviation of the weekly revenue?

Question 4 Assuming the joint distribution is normal, and the marketing team’s correlation of 0.8 is correct. What is the probability that weekly sales will be between 10,000 and 20,000 dollars?

Question 5

Which of the following statements are true:

Choose the correct answer.

A: The population mean is always greater than the sample mean.

B: Everything else being equal, the Confidence Interval for a sample increases with the number of observations (n) in the sample.

C: The t-distribution is used for small sample sizes instead of the Normal.

D: Holding all else equal, reducing the probability of a Type I error actually increases the probability of a Type II error.

The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31.

1. Prepare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901.
2. Prepare the December 31, post-closing trial balance for Cruz Company. Note: A. Cruz, Capital was $46,630 on December 31 of the prior year.

repare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901.

Journal entry worksheet

• Record the entry to close revenue accounts.

Note: Enter debits before credits.

Complete this questions by entering your answers in the tabs below.

• Required 1
• Required 2

Prepare the December 31, post-closing trial balance for Cruz Company. Note: A. Cruz, Capital was $46,630 on December 31 of the prior year.

The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company. Account Title Debits Credits Cash 71,000 Accounts receivable 166,000 Inventories 288,000 Prepaid expenses 154,000 Machinery and equipment 326,000 Accumulated depreciation—equipment 113,000 Investments 146,000 Accounts payable 63,000 Interest payable 23,000 Deferred revenue 83,000 Taxes payable 33,000 Notes payable 215,000 Allowance for uncollectible accounts 19,000 Common stock 403,000 Retained earnings 199,000 Totals 1,151,000 1,151,000 Additional information: Prepaid expenses include $126,000 paid on December 31, 2018, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility. Investments include $33,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $113,000 includes investments in marketable equity securities that the company intends to sell in the next year. Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less. The notes payable account consists of the following: a $43,000 note due in six months. a $103,000 note due in six years. a $69,000 note due in three annual installments of $23,000 each, with the next installment due August 31, 2019. The common stock account represents 403,000 shares of no par value common stock issued and outstanding. The corporation has 800,000 shares authorized. Required: Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2018.

Read the case study and addressing the following:

Part 1, Sections 1-2: Provide calculations and a solution for total variable costs, break even in sales volume (number of members), break even in sales (in dollars), and margin of safety.

Case Study:

n addition to regular gyms, nontraditional workout concepts and centers such as Kosama are increasing in popularity. Kosama is a franchise opportunity that offers members the opportunity to improve their health and fitness level. To learn more about the company visit kosama.com.

Part 1, Section 1: Assume the following revenue and cost break-down.

Revenue:  

-Monthly membership fee = $30.

Costs:

-General fixed operating expenses = $4,100 per month.

-Equipment Lease = $395 per month.

-Mixed costs are equal to $275 per/month (fixed) plus $1.10 per membership sale (variable).

-Total variable costs are not known.  

-Estimated number of members required to break even is 330 members per month.  

Using the information provided estimate the amount of variable costs. When performing your analysis, assume that the only fixed costs are the estimated monthly operating expenses, equipment lease and the fixed part of mixed costs. Show your work and all calculations.

Part 1, Section 2: Using the information from section 1. What would monthly sales in members and dollars have to be to achieve a target net income of $13,750 for the month? What is the margin of safety in dollars? Show your work and all calculations.

A common size income statement for Creek Enterprises 2018 operations follows. Using the firms 2019 income statement presented in 3-16, develop the 2019 common size income statement and compare it with the 2018 statement. (I don't know how to get the answers for the 2019 common size income statement)

2018 common size income statement:

3-16 Income Statement: