Background

Pure Sport plc was formed following the merger of Pure Limited and Sport Limited in 2016. It

is a listed company which designs, manufactures, markets and distributes footwear, sportswear

and leisurewear products in Asia, Europe and North America. Pure Sport plc employs

approximately 1,000 people at its three sites in the United Kingdom and Ireland, and supplies

products to over six million customers in 20 countries.

Pure Sport plc holds inventory of about 100,000 different components and product elements for

use in the manufacture of its products.

Organisational Structure and Market / Competitor Information

Pure Sport plc is organised into three divisions based upon its lines of business: Footwear

Division (FWD); Sportswear Division (SWD); and Leisurewear Division (LWD).

1. FWD’s primary products are sports shoes aimed at customers aged 12-30 years that are

fashion and exercise conscious at the same time. The average product price is in the lower

quartile when compared against competitors, with 90% of sales in this area coming from

the Asian market.

2. SWD focuses on high net income customers aged 25-45 years who value status and

emerging materials, design and technology on their high-performance product. The

average product price is the upper quartile when compared against direct competitors and

75% of sales for these products come from North America.

3. LWD’s products are aimed at customers aged 8-30 years who like to wear the latest trends

and styles and have great control and choice over their look. The average product price is

in the lower quartile when compared against direct competitors. Sales for these products

are divided 40% Asia / 37% North America / 23% Europe.

The company sells products direct to consumers by mail order, through retailers and aggregated

wholesalers; it also creates ‘white label products’ and sells clothing components and blueprints

to other manufacturers.

The present structure was established by Pure Limited in 1998 and continued after the merger

with Sport Limited. While the directors of Pure Sport plc consider continuity to be a very

important value, many of Pure Sport plc’s competitors have undertaken structural re

organisations in recent years. In 2016, Pure Sport plc commissioned a review of its

organisational structure from an independent consultancy firm. The consultants suggested

alternative structures which they believed Pure Sport plc could employ to its advantage.

However, Pure Sport plc’s directors believed that continuity was more important and no change

to the organisational structure occurred.

Pure Sport plc owns three freehold properties which it uses as administrative offices for each

of its three divisions. Each property had an expected useful life of 50 years on its date of original

acquisition (which was prior to the merger of Pure Limited and Sport Limited in 2016), and the

directors believe that this assumption will still be appropriate at 31 December 2019. It is

45

company policy to depreciate the properties on a straight-line basis over their estimated useful

economic life.

FWD property SWD property LWD property

Date of acquisition 1 January 2010 1 January 2010 1 January 2010

Original cost £10,000,000 £10,000,000 £10,000,000

Net book value at 31 December 2019 £8,000,000 £8,000,000 £8,000,000

Market value at 31 December 2019 £6,000,000 £14,000,000 £10,000,000

In the financial statements for the year ended 31 December 2019, the directors of Pure Sport

plc are proposing to show the SWD and LWD properties at market value and the FWD property

at its depreciated historic cost. The directors believe the fall in the market value of the FWD

property is temporary and its value will rise in the next one to two years.

Product and Service Delivery

Consumers, retailers and wholesalers are increasingly seeking to collaborate with the designers

of Pure Sport plc’s products and the associated manufacturing and assembly processes. Pure

Sport plc’s directors view this as a growth area.

The directors of Pure Sport plc recognise that the company needs to develop web-based services

and tools which can be accessed by these partners. The traditional method of listing the

company’s range of products, designs and components in a catalogue is becoming less effective,

costly and cumbersome because customers are increasingly seeking specially designed custom

made products as the industry becomes more sophisticated.

In October 2019, the directors of Pure Sport plc advised the company’s solicitors to commence

legal action against one of its main suppliers claiming damages of £1,000,000 in respect of

losses sustained as a result of the supply of faulty raw material. According to legal advice, Pure

Sport plc has a very good chance of winning its case; although, it is unlikely to be settled before

the 2019 financial statements are finalised.

Financial Objectives

Pure Sport plc’s directors have generally taken a cautious approach to providing strategic

direction for the company. Most directors consider that this has been appropriate because Pure

Limited was unprofitable for the three years preceding the merger and needed to be turned

around. Also, most directors believe a cautious approach has been justified given the

constrained economic circumstances which have affected Pure Sport plc’s markets since 2016.

While shareholders have been disappointed with Pure Sport plc’s performance over the last

three years, they have remained loyal and supported the company’s directors in their attempts

to move the company into profit. The institutional shareholders however are now looking for

increased growth and profitability combined with a strategic vision for the future.

Financial Information

Pure Sport plc’s prepares its financial statements to 31 December each year and its historical

financial records over the last three years indicate:6

2018 2017 2016

£ million £ million £ million

Revenue 620 433 360

Operating profit 39 20 13

Profit for the year 21 9 5

Earnings per share 11.7 pence 5 pence 2.8 pence

Dividend per share 5.8 pence 0 0

Performance Review

Pure Sport plc’s three divisions have been profitable throughout the last three years. The

revenue and operating profit of the three divisions of Pure Sport plc for 2018 were as follows:

FWD Division SWD Division LWD Division Total

£ million £ million £ million £ million

Revenue 212 284 124 620

Operating profit 20 6 13 39

Capital Budgeting

Pure Sport plc has an internal audit department. The Chief Internal Auditor, who leads this

department, reports directly to the Pure Sport plc’s Finance Director.

Investigation by the Internal Audit department has revealed that managers with responsibility

for capital expenditure have often paid little attention to expenditure authorisation levels

approved by the company’s directors. They have justified overspending on the grounds that the

original budgets were inadequate and in order not to jeopardise the capital projects, the

overspends were necessary. It is perceived by the designers and most staff members that the

need to allow a great deal of customisation on products leads to difficultly in predicting costs

being incurred.

Strategic Planning

Pure Sport plc applies a traditional rational model in carrying out its strategic planning process.

This encompasses an annual exercise to review the previous plan, creation of a revenue and

capital budget for the next five years and instruction to managers within Pure Sport plc to

maintain their expenditure within the budget limits approved by the company’s directors.

The directors of Pure Sport plc stated in the company’s 2018 annual report, published in March

2019, that the overall strategic aim of the company is to:

‘Achieve growth and increase shareholder returns by continuing to design produce and

distribute high quality clothing and footwear products and components and develop

our international presence through expansion into new overseas markets.’

Requirment:

(a) evaluates the financial performance of Total Sport plc over the three-year period 2017 to
2019;
(b) considers how the directors of Total Sport plc can accelerate the growth of the company
and increase its profitability.

It is a strategic management

Question 1: Discuss the business-level and corporate-level strategies of Apple, as discussed in the articles below. Why is Apple pursuing these strategies? Be sure to discuss competitive pressures from Sony as it pursues its strategy. Compel your response with data from the articles.

Article 1:

THE NEWEST NUMBERS ARE IN —While iPhone sales remain stagnant, Apple services hit $10 billion in revenue

Apple announced on its earnings call today that it had surpassed its revenue estimates for Q4 2018. The iPhone maker boasted $62.9 billion in revenue, slightly more than the $60-62 billion it previously estimated, as well as $14.1 billion in profit, up from $11.5 billion in the previous quarter.

"We're thrilled to report another record-breaking quarter that caps a tremendous fiscal 2018, the year in which we shipped our two billionth iOS device, celebrated the 10th anniversary of the App Store, and achieved the strongest revenue and earnings in Apple's history,” Apple CEO Tim Cook said in a statement.Ars Technica

Apple sold 46.8 million iPhones, 9.6 million iPads, and 5.2 million Macs in the final quarter of 2018. While that represents a 14 percent increase in iPhone sales when compared to last quarter, it's about the same number of iPhones sold this time last year. However, year-over-year revenue from iPhone sales was up by 29 percent, thanks to the increase in iPhone prices.

This quarter saw the reveal of the iPhone XS and XS Max, but only a fraction of those sales contribute to these numbers because of the handsets' late release date. The YoY increase mostly comes from the $1,000 iPhone X, which has been the best-selling iPhone since its launch in September 2017. The X continues to sell well enough that Apple moved roughly the same number of iPhones and made nearly 30 percent more. Now, the average sale price for an iPhone is $793, up drastically from $618 in the same quarter last year.

Apple's services business, a constant bright spot in recent quarters, hit a revenue milestone in Q4 2018: $10 billion (it's $9.98 billion to be exact, but Apple rounded up). That's an increase of 27 percent from Q4 2017, in which services including iCloud, Apple Music, the App Store, and others brought in $7.9 billion in revenue.

When asked about how Apple plans to continue growing its services business, CFO Luca Maestri highlighted the "exponential trajectory" of all of Apple's services from Apple Music to the Apple Store to Apple Pay. Maestri also called out Apple's "very large and growing" install base, which is currently at an all-time high. With so many users within the Apple ecosystem, the company now has the opportunity to monetize more services, improve existing services, and add new ones like Apple's Search Ad business on the App Store. Maestri said that the company is on track to double its fiscal 2016 services revenue by 2020.

iPad numbers were lackluster: unit sales were down 16 percent from last quarter, and revenue was down 14 percent as well. That might be due to all the rumors leading up to this week's "special event" in which Apple released the new iPad Pros. Those devices feature all-new designs, a new Apple Pencil, and higher prices to boot. Meanwhile, Mac sales brought in 39 percent more revenue than last quarter, thanks in part to sales of the updated MacBook Pros and the back-to-school season overall.

Apple's "other products" category, which includes the Apple Watch, AirPods, Apple TV, HomePod, and others, saw a 13 percent sequential increase and a 31 percent increase from this time last year. Cook praised the wearables segment (Apple Watch, AirPods, and Beats devices) numerous times on today's call, although Apple still doesn't provide individual product sales numbers for the devices included in that category.

Cook said the company saw an "overwhelmingly positive" response to the Apple Watch Series 4, which debuted in September alongside the iPhone XS and XS Max. When asked about Apple's future in the health care space, Cook said that health is an "area of major interest" for Apple as the company looks to add more health products and services into its business.

Notably, Apple will start treating all of its hardware like it does the "other products" category we're used to seeing in its earnings reports. Apple stated that it will no longer report unit sales for iPhones, iPads, and Macs in future reports. Maestri said that unit sales are "not representative of the underlying strength of our business." Analysts and investors often look to those numbers to determine how well certain devices have sold in comparison to previous quarters and years, and they help calculate average selling prices per product. Apple clearly wants to highlight how much it's making from product sales, without also showing that some devices, like the iPhone, may not be selling as many units as some expected.

Both Apple and investors are looking forward to the first quarter of 2019, which will include holiday sales and more data about iPhone XS, XS Max, and XR sales. Apple set its sights high: it estimates Q1 2019 revenue to be between $89 and $93 billion.

Article 2 - Sony:

Pioneer of Walkman targets premium market dominated by Bose and Beats

TOKYO -- When Ichiro Takagi took over Sony Corp.'s audio business seven years ago, he found the staff took pride in being the global No. 1 in headphones, in terms of units sold. But he was appalled at how many were $10 headphones sold for minimal profit at grocery stores. "What's the point of that? Where's our brand image?" Mr. Takagi recalls telling employees. Fast forward to this fall and the international electronics show in Berlin, where Mr. Takagi was showing off the latest version of his flagship product, a $350 pair of noise-canceling wireless headphones.

The premium-price headphone market has been largely dominated by Bose, the industry pioneer popular with frequent fliers, and Beats, the fashion-savvy brand acquired by Apple Inc. for $3 billion in 2014. All share the challenge of wooing listeners who already get free earbuds with their smartphones.

Sony said in May it has 11% of the headphone market in terms of revenue, the third-largest slice. It didn't name the top two companies.

The audio business -- where Sony has been a player since the 1950s -- is a prime example of how it got back to profitability in recent years, even in a traditional hardware business that once looked like a lost cause. For the year that ended in March, sales for the audio unit rose for the first time in 20 years after having fallen some 80% from the peak.

More important for Chief Executive Kenichiro Yoshida, the home-electronics division, including audio and televisions (another former money loser), posted operating profit of nearly $800 million for the year, helping Sony achieve record overall profit. Mr. Yoshida is hoping roughly to match that record in the current fiscal year: Quarterly earnings coming Tuesday will give a progress report. The rise of Spotify Technology SA and other music services has been good for headphone makers, increasing the time consumers spend listening on the go. Streaming companies such as Spotify and France-based Deezer offer high-resolution services that have expanded the market for higher-quality headphones costing hundreds or even thousands of dollars. Recent product releases by Sony include a $280 pair of earphones; an $8,500 portable music player targeted at audiophiles goes on sale in December, with a gold-plated volume controller and a battery system designed to reduce noise.

In the first generation of portable MP3 music players, "the quality of the music sources was poor," Sony audio executive Yoshinori Matsumoto said. "We couldn't push high-end listening devices because they would highlight the coarseness." Now, better technology has "made high-quality music more accessible both to customers and creators," he said.

Audio has paralleled Sony's highs and lows through its 72-year history. The Walkman in 1979 set off a revolution in portable electronic devices, with Sony in the lead. But in the 2000s, Sony let Apple and the iPod seize the dominant position. By 2011, the Tokyo company was nearly giving up on its old hardware products. "The attitude of management at that time was like, 'If you're so-so, that's fine,' " Mr. Takagi, the audio-unit chief, said. That changed under then Chief Executive Kazuo Hirai, who took over in 2012, and Mr. Yoshida, who was chief financial officer under Mr. Hirai and became CEO this year. They pushed the audio team to drop cheap products and focus on a few high-end models.

Mr. Takagi says the new management scrapped an organizational chart that had separate groups of engineers focusing on subcategories like car audio. "I told them to look around the whole industry to come up with products that consumers are willing to pay extra for," he said.

Sony says the $350 headphones can detect the owner's facial shape, hairstyle and presence of glasses, as well as pressure changes in an airplane, all to optimize the noise-canceling feature. "Our latest model is distinctly the best in terms of noise-canceling technology," says Mr. Takagi, who is in the habit of visiting electronics stores to eavesdrop on what customers are saying to salespeople. "It's obvious if you ask your ears."

Another Sony rival, especially for younger customers, is Beats. Mr. Matsumoto says the competition has led Sony to stress fashion as well as sound quality. "In China, headphones have become part of the outfit for young people, and they have to have a style that people want to wear all the time, even when they are not listening," he said.

Mr. Takagi said there is more innovation to come, such as headsets that stream music from the internet on their own without having to be hooked up to a smartphone. "Audio will remain a profitable business so long as we keep listening to music," Mr. Takagi said. "If we remain as a strong and respected player in the industry, then the whole company will be too because audio is the origin of Sony."

The trial balance columns of the worksheet for Novak Company at June 30, 2022, are as follows.

Other data:

Complete the worksheet.

Balanced Scorecard Preparation
The following information is presented for the Worldwide Auditor's Association. For the year ended November 30, 2017, the organization had set a membership goal of 100,000 members with the following anticipated results (and actual results for the year-end).

Additional information (PLANNED):

• Membership dues were increased from $360 to $400 at the beginning of the year.
• One-year subscriptions to Worldwide Auditor were anticipated to be 2,400 units.
• Advertising revenue was budgeted at $320,000. Each magazine was budgeted at a cost of $36.
• A total of 29,000 technical reports were anticipated at an average price of $80 with average costs of $22.
• The budgeted one-day courses had an anticipated attendance of 33,000 with an average fee of $450. The two-day courses had an anticipated attendance of 3,000 with an average fee of $770 per person.
• The organization began the year with net capital assets of $88,000,000 with a planned cost of capital of 9 percent.

Additional 2017 information (ACTUAL):

• Membership dues are $400 per year, of which $100 is considered to cover a one-year subscription to the association’s journal. Other benefits include membership in the association and unit affiliation.
• One-year subscriptions to Worldwide Auditor are sold to nonmembers for $160 each. A total of 2,500 of these subscriptions were sold. In addition to subscriptions, the journal generated $400,000 in advertising revenue. The cost per magazine was $40.
• A total of 30,000 technical reports were sold by the Books and Reports Department at an average unit selling price of $90. Average costs per publication were $24.
• The association offers a variety of continuing education courses to both members and nonmembers. During 2017, the one-day course, which cost participants an average of $500 each, was attended by 31,300 people. A total of 1,985 people took two-day courses at a cost of $800 per person.
• General and administrative expenses include all other costs incurred by the corporate staff to operate the association.
• The organization has net capital assets of $90,060,000 and had an actual cost of capital of 9 percent.

Required
a. Prepare a balanced scorecard for IAA for November 2017 with calculated key performance indicators presented in two columns for planned performance and actual performance--include key financial, customer, and operating performance indicators.

Include all zeros with figures. For example, 2017 Planned Total Revenues for $55,859.6 (thousand) is entered as $55,859,600

b. Which of the evaluation areas you selected indicated success and which indicated failure?

Success areas:

Failure areas:

Nailed It! Construction (Nailed It! or the “Company”), an SEC registrant, is a construction company that manufactures commercial and residential buildings. On March 1, 20X1, the Company entered into an agreement with a customer, Village Apartments, to construct a residential apartment building for a fixed price of $1.5 million. The Company estimates that it will incur costs of $1 million to complete construction of the apartment building. The apartment building will only transfer to Village Apartments once the construction of the entire building is complete. In addition, Village Apartments has various design requirements that would require Nailed It! to incur significant costs to rework the building prior to selling it to a customer other than Village Apartments. To construct the apartment building, Nailed It! acquires standard materials that it regularly uses in construction contracts for both residential and commercial buildings. These materials are used to manufacture generic component parts for inclusion in Village Apartments’ residential buildings. These standard materials remain interchangeable with other items until they are deployed in a Village Apartments building. The Company has made the following purchases and incurred the following costs throughout the construction progress:

As of June 30, 20X1, in total, Nailed It! has purchased $75,000 of component parts. As of June 30, 20X1, $25,000 of component parts remain in inventory and $50,000 have been integrated into the project. Further, Nailed It! has incurred $12,500 of direct costs to integrate the component parts into the Village Apartments construction project during the three months ended June 30, 20X1. •During the three months ended September 30, 20X1, Nailed It! purchased an additional $500,000 of component parts ($575,000 in total). Of the $575,000 of component parts, $325,000 remain in inventory and $200,000 have been integrated into the project during the three months ended September 30, 20X1. During the three months ended September 30, 20X1, Nailed It! incurred an additional $50,000 of direct costs to integrate the component parts into the Village Apartments construction project. •As of September 30, 20X1, Nailed It! determined that the project was over budget and revised its cost estimate from $1 million to $1.25 million.•As of December 31 20X1, the construction project was completed. During the three months ended December 31, 20X1, Nailed It! purchased an additional $425,000 of generic component parts ($1 million in total). Of the $1 million component parts, $0 remain in inventory and $750,000 were integrated into the project during the three months ended December 31, 20X1. Nailed It! has incurred $187,500 of direct costs to integrate the component parts into the Village Apartments construction project during the three months ended December 31, 20X1.

If Village Apartments cancels the contract, Nailed It! will be entitled to reimbursement for costs incurred for work completed to date plus a margin of 20 percent, which is considered to be a reasonable margin. Nailed It! will not be reimbursed for any materials that have been purchased for use in the contract but have not yet been used and are still controlled by Nailed It!.

Required:

1.Does the performance obligation meet any of the criteria or recognition of revenue over time?

2.How should the entity recognize revenue for the satisfaction of its performance obligation? What amount of revenue should be recognized for the following periods:

2a.The three months ended June 30, 20X1?

2b.The three months ended September 30, 20X1?

2c.The three months ended December 31, 20X1?

1. If company Nailed It! changes its initial cost estimate from 1,000,000 to 1,250,000 on September 30, 20x1 how does that impact revenue. I have been trying to understand how to use the input method on recording the revenue to the Nailed it! case. Can anyone help me understand it better? I understand 2a, and 2b. I do not understand 2c. I do not understand how the costs are different and how it became a loss of -62,500 at the end of December 31,20x1

2. I would like to know also how to understand the journal entries that i would need to apply at the end of the yearr.

I have already submitted the case for review two times, and both times no one has been able to give me the solid answer to this.

1. Bank Reconciliation and Entries

   The Coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions.cash account for Collegiate Sports Co. on November 1 indicated a balance of $81,145. During November, the total cash deposited was $293,150, and checks written totaled $307,360. The A summary of all transactions mailed to the depositor or made available online by the bank each month.bank statement indicated a balance of $112,675 on November 30. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

   1. Checks outstanding totaled $41,840.
   2. A deposit of $12,200, representing receipts of November 30, had been made too late to appear on the bank statement.
   3. A check for $7,250 had been incorrectly charged by the bank as $2,750.
   4. A check for $760 returned with the statement had been recorded by Collegiate Sports Co. as $7,600. The check was for the payment of an obligation to Ramirez Co. on account.
   5. The bank had collected for Collegiate Sports Co. $7,385 on a note left for collection. The face of the note was $7,000.
   6. Bank service charges for November amounted to $125.
   7. A check for $2,500 from Hallen Academy was returned by the bank because of insufficient funds.

   Required:

   1. Prepare a bank reconciliation as of November 30.

   Collegiate Sports Co.
   Bank Reconciliation
   November 30
   Cash balance according to bank statement		$
   Add bank error in charging check as $2,750 instead of $7,250 Add bank service charges Add deposit of November 30, not recorded by bank Add outstanding checks Add note and interest collected by bank
   		$
   Deduct bank service charges Deduct check returned because of insufficient funds Deduct deposit of November 30, not recorded by bank Deduct outstanding checks Deduct note and interest collected by bank	$
   Deduct bank error in charging check as $2,750 instead of $7,250 Deduct bank service charges Deduct deposit of November 30, not recorded by bank Deduct error in recording check by Collegiate Sports Co. Deduct proceeds of note collected by bank, including $100 interest
   Adjusted balance		$
   Cash balance according to company's records		$
   Add bank error in charging check as $2,750 instead of $7,250 Add bank service charges Add check returned because of insufficient funds Add deposit of November 30, not recorded by bank Add note and interest collected by bank	$
   Add bank service charges Add cash balance according to company's records Add deposit of November 30, not recorded by bank Add error in recording check as $7,600 instead of $760 Add outstanding checks
   		$
   Deduct check returned because of insufficient funds Deduct deposit of November 30, not recorded by bank Deduct error in recording check by Collegiate Sports Co. Deduct outstanding checks Deduct note and interest collected by bank	$
   Deduct bank service charges Deduct deposit of November 30, not recorded by bank Deduct error in recording check by Collegiate Sports Co. Deduct outstanding checks Deduct note and interest collected by bank
   Adjusted balance		$

   Feedback

   2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if a box does not require an entry, leave it blank.

   a. Nov. 30	Accounts Payable-Ramirez Co. Accounts Receivable-Ramirez Co. Cash Interest Revenue Notes Receivable
   	Cash Cash Short and Over Interest Receivable Miscellaneous Administrative Expense Notes Receivable
   	Accounts Receivable-Hallen Academy Interest Revenue Petty Cash Sales Unearned Interest
   	Accounts Payable-Ramirez Co. Accounts Receivable-Ramirez Co. Cash Cash Short and Over Sales
   b. Nov. 30	Accounts Payable-Hallen Academy Accounts Receivable-Hallen Academy Cash Short and Over Interest Expense Interest Revenue
   	Cash Short and Over Miscellaneous Expense Miscellaneous Revenue Notes Receivable Petty Cash
   	Accounts Payable-Hallen Academy Accounts Receivable-Hallen Academy Cash Miscellaneous Revenue Petty Cash

   3. If a balance sheet is prepared for Collegiate Sports Co. on November 30, what amount should be reported as cash?
   $

Tim opened the Emporium on March 1, 2017. During March, the following transaction were completed:

March 1   Issued 10,000 shares of common stock for $25,000 cash
March 1    Purchased used servers for $10,000, paying $6,000 cash and the balance on account
March 3    Purchased office supplies for $1,500 on account
March 5    Paid $2,400 cash on 1-year insurance policy effective March 1
March 14   Billed customers $4,200 for data analysis services
March 18   Paid $1,500 cash on amount owed on servers and $500 on amount owed on office supplies
March 20   Paid $2,750 cash for employee salaries
March 21   Collected $1,400 cash from customers billed on March 14
March 28   Billed customers $6,200 for data analysis services
March 31   Paid $350 for server maintenance which did not extend the life or function of the servers
March 31   Declared and paid $900 cash dividend

Required:
     1) Journalize the March transactions
     2) Post to the ledger accounts
     3) Prepare a trial balance at March 31
     4) Journalize the following adjustments
               a. earned but unbilled and uncollected revenue at March 31 was $800
               b. depreciation on equipment for the month was $650
               c. one-twelfth of the insurance policy expired
               d. an inventory count shows $280 of office supplies on hand at March 31
               e. Incurred employee slararies but unpaid were $1,060
     I HAVE COMPLETED THIS MUCH-------------------(answers are below) -----Please help with the remaining questions 5,6,7,8 and 9----------

      5) Posting adjusting entries to the general ledger
      6) Prepare an adjusted trial balance
      7) Prepare the income statement and a retained earnings statement for March and a classified balance sheet at 3/31
      8) Journalize and post closing entries and complete the closing process
      9) Prepare a post closing trial balance at 3/31

Rogers Aeronautics, LTD, is a British aeronautics subcontract company that designs and manufactures electronic control systems for commercial airlines. The vast majority of all commercial aircraft are manufactured by Boeing in the U.S. and Airbus in Europe; however, there is a relatively small group of companies that manufacture narrow-body commercial jets. Assume for this exercise that Rogers does contract work for the two major manufacturers plus three companies in the second tier.
Because competition is intense in the industry, Rogers has always operated on a fairly thin 20% gross profit margin; hence, it is crucial that it manage non-manufacturing overhead costs effectively in order to achieve an acceptable net profit margin. With declining profit margins in recent years, Rogers Aeronautics' CEO, Len Rogers, has become concerned that the cost of obtaining contracts and maintaining relations with its five major customers may be getting out of hand. You have been hired to conduct a customer profitability analysis.
Rogers Aeronautics' non-manufacturing overhead consists of $2.5 million of general and administrative (G&A) expense, (including, among other expenses, the CEO's salary and bonus and the cost of operating the company's corporate jet) and selling and customer support expenses of $3 million (including 5% sales commissions and $1,050,000 of additional costs). The accounting staff determined that the $1,050,000 of additional selling and customer support expenses related to the following four activity cost pools:

Financial and activity data on the five customers follows (Sales and Gross Profit data in millions):

In addition to the above, the sales staff used the corporate jet at a cost of $800 per hour for trips to customers as follows:

The total cost of operating the airplane is included in general and administrative expense; none is included in selling and customer support costs.

a. Prepare a customer profitability analysis for Rogers Aeronautics that shows the gross profits less all expenses that can reasonably be assigned to the five customers.

Notes:

• Enter figures as complete numbers (with all zeros). For example, 17 million is 17,000,000.
• Do not use negative signs with any answers.
• Round return on sales to one decimal place. (Ex: 10.4%)

b. Now assuming that the remaining general and administrative costs are assigned to the five customers based on relative sales dollars, calculate net profit for each customer.
Enter figures as complete numbers (with all zeros). For example, 1 million is 1,000,000.
Do not use negative signs with any answers.
Do not round during calculation G&A expenses. Round final G&A expenses to the nearest whole number.
Round return on sales to one decimal place. (Ex: 10.4%)