On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $53,600 from Green at the end of each month. If total cost savings reach a specific target, Revis will receive an additional $26,800 from Green at the end of the contract, but if total cost savings fall short, Revis will refund $26,800 to Green. Revis estimates an 80% chance that cost savings will reach the target and calculates the contract price based on the expected value of future payments to be received.

Required:
Prepare the following journal entries for Revis:

1. to 3. Prepare the journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue. Also record the entry on June 30 for receipt of the bonus assuming total cost savings exceed target. And record the entry on June 30 for payment of the penalty assuming total cost savings fall short of target. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the collection of cash and recognition of the first month's revenue.

• Record the receipt of the bonus assuming total cost savings exceed target.

• Record the payment of penalty assuming that total cost savings fall short of target.

Chris P. Bacon is the chief accountant for CV Industries, a large manufacturing company. In addition to its normal business activities, the company has excess warehouse space that it rents out to local businesses. Because the typical renter is a small business, CV Industries requires renters to make lease payments for the entire rental period on the day the lease is signed. As a result, CV Industries typically reports a large unearned rent balance on its balance sheet. After making adjusting entries for the current year, Chris prepares the adjusted trial balance and notices that the company’s earnings will decline significantly. He presents the adjusted trial balance to the company’s CFO, Antonio Beldin, who is concerned about the earnings decline. Mr. Beldin notices the large unearned rent balance and proposes making an additional end-of- period adjusting entry to recognize the entire unearned rent balance as revenue in the current period. Chris protests, reminding Mr. Beldin that the adjusting entry for unearned rent has already been made. Mr. Beldin assures Chris that his proposal is acceptable, reminding Chris that “because we have already received the cash, we have the right to recognize the revenue in the current period.” He instructs Chris to make the additional adjusting journal entry. Chris is hesitant to follow these instructions, but he is sensitive to the company’s emphasis on earnings growth and makes the adjusting entry as instructed.

Is Chris behaving ethically? Why?

Who is affected by Chris’s decision?

Jessica is a recent graduate of Brenau University’s business school entrepreneurship program. The business plan that she created before she graduated was for a business developing websites for individuals and commercial businesses. Friends and family provided funding for the start-up, and she has been in business for the last two and a half years.

Jessica had learned about the balanced scorecard in her accounting classes and has been applying some of the techniques. Her vision for this business is to provide clients with high quality websites that receive a relatively high numbers of hits. Recently, word-of mouth advertising had led to more requests for websites with creative animated graphics. As part of her balanced scorecard, she tracked the following measures over the last two years for her individual clients:

                                                                                              20x1                20x2

Average revenue per individual client                              $2,000             $1,500

Average time from start to finish (business days)           10 days            13 days

Average site ranking on top two search engines                     15                    21

Total revenue                                                                   $80,000           $78,000

Total labor cost                                                                $20,000           $22,000

Utilities cost (electricity and phone)                                 $2,100             $2,400

Number of individual clients                                                    40                    52

Employee turnover                                                                     1                      0

a.   Classify each performance measure according to one of the four balanced scorecard perspectives. Explain your reasoning.

b.   Analyze the change in each performance measure from 20X1 to 20X2. Give one possible reason for the change.

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 $3,800 per month plus $45 per course plus $5 per student. The company’s sales should average $890 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 53 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.

TipTop Flight School offers flying lessons at a small municipal airport. The school’s owner and manager has been attempting to evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recent variance report appears below: TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget Variances Lessons 230 225 Revenue $ 66,350 $ 65,250 $ 1,100 F Expenses: Instructor wages 14,830 14,625 205 U Aircraft depreciation 8,050 7,875 175 U Fuel 5,200 4,500 700 U Maintenance 4,720 4,515 205 U Ground facility expenses 3,025 3,050 25 F Administration 4,175 4,255 80 F Total expense 40,000 38,820 1,180 U Net operating income $ 26,350 $ 26,430 $ 80 F After several months of using such variance reports, the owner has become frustrated. For example, she is quite confident that instructor wages were very tightly controlled in July, but the report shows an unfavorable variance. The planning budget was developed using the following formulas, where q is the number of lessons sold: Cost Formulas Revenue $290q Instructor wages $65q Aircraft depreciation $35q Fuel $20q Maintenance $690 + $17q Ground facility expenses $2,150 + $4q Administration $3,580 + $3q Required: 2. Complete the flexible budget performance report for the school for July

The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company.

Additional information:

Prepaid expenses include $128,000 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 $34,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $114,000 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 $44,000 note due in six months.

a $104,000 note due in six years.

a $72,000 note due in three annual installments of $24,000 each, with the next installment due August 31, 2019.

The common stock account represents 404,000 shares of no par value common stock issued and outstanding. The corporation has 600,000 shares authorized.

Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

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!!

Charleston Carriage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolina. The carriage business is highly regulated by the city. The fare for all passengers is $19.50. Charleston Carriage has the following monthly operating costs:

In addition to these costs, Charleston Carriage pays a brokerage fee of $1.10 per ticket sold by brokers. On average, 60% of tickets are issued through these brokers; 40% are sold directly by Charleston Carriage.

Charleston Carriage has several questions about its monthly revenues, costs, and profits in 2018.

5. How many monthly passengers would be required for Charleston Carriage to earn $91,000 per month in 2018?    

6. Assuming a tax rate of 34%, what must revenue be in order for Charleston Carriage to earn $91,000 per month in 2018?   

Part C
7. Charleston Carriage has an opportunity to negotiate with the company that leases the horses and boards them. If Charleston Carriage expects to sell 6,078 tickets per month in 2018, what's the most it could pay to lease and board the horses if it wants to break even each month (ignoring taxes)?

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

For example, administrative expenses should be $3,800 per month plus $41 per course plus $5 per student. The company’s sales should average $880 per student.

The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 58 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.)