How do I prepare a post-closing trial balance only? Part F ONLY.

ACC 111
Accounting Cycle Review

Jannero Pargo opened Pargo's Cleaning Service on July 1, 2017. During July the following transactions were completed.
July 1 Pargo invested $20,000 cash in the business.
1 Purchased used truck for $9,000, paying $4,000 cash and the balance on account.
3 Purchased cleaning supplies for $2,100 on account.
5 Paid $1,800 cash on one-year insurance policy effective July 1.
12 Billed customers $4,500 for cleaning services.
18 Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies.
20 Paid $2,500 cash for employee salaries.
21 Collected $3,400 cash from customers billed on July 12.
25 Billed customers $6,000 for cleaning services.
31 Paid gasoline for month on truck $350.
31 Withdraw $5,600 cash for personal use.

The chart of accounts for Pargo's Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 301 Owner's Capital, No. 306 Owner's Drawings, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gasoline Expense, No. 634 Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense.
Instructions
(a) Journalize and post the July transactions. Use page J1 for the journal and the three-column form of account.
(b) Prepare a trial balance at July 31.
Check figure: Trial balance $34,700
(c) Journalize and post the following adjusting entries.

1. Services provided but unbilled and uncollected at July 31 were $2,700.
2. Depreciation on equipment for the month was $500.
3. One-twelfth of the insurance expired.
4. An inventory count shows $600 of cleaning supplies on hand at July 31.
5. Accrued but unpaid employee salaries were $1,000.

Check figure - Adjusted trial balance $38,900
(d) Prepare the income statement and owner's equity statement for July and a classified balance sheet at July 31.
Check figures: Net income $7,200;
Total assets $26,800

(e) Journalize and post closing entries and complete the closing process. Use page J3 for the journal.
(f) Prepare a post-closing trial balance at July 31.
Check figure: Post-closing trial balance $27,300

Complete the following cost and revenue schedule.

Use the completed cost and revenue schedule to answer the following questions.

a. Use the optimization rule to maximize profit. What rate of output maximizes profit?

b. What is the actual amount of profit at the profit-maximizing level of output you found in (1a)?

7. Dave’s Pizza periodically has a special week-long sale. As part of the advertising campaign Dave’s

runs one or more television commercials during the weekend preceding the sale. Data from a sample of

4 previous sales are shown.

Number of Ads

Weekly Revenue

12

27600

5

13385

9

15486

15

2820

Estimate the slope and intercept for the number of ads and weekly revenue for Dave’s Pizza. (5 points)

Estimate weekly revenue if 17 ads are placed. Explain your answer. (3 points)

how would you answer these questions

The following scenarios are based on actual returns and situations that have occurred in this years VITA program. The responses provided here would be similar to those you would provide to actual taxpayers in the event a similar situation would occur.

Scenario

Inez Sanchez, age 49, ITIN # 933-12-1987 is married but has been separated from her husband since March 3, 2017. She is a housekeeper for Acme Hotels Inc. She has four daughters, all born and raised in the U.S. who lived with her the entire year who she fully supports. No one had any health insurance for the entire year

Name Date of Birth Social Security Number Earnings

Polet Sanchez 09/09/2006 454-11-2222 $0

Jessica Sanchez 07/07/2004 453-11-2222 $0

Stephanie Sanchez 05/05/2002 452-11-2222 $0

Juanita Sanchez 03/03/1995 451-11-2222 $8000

For legal reasons, she tells you that she wants to file a paper return. She also wants her refund mailed to her.

Inez’s Refund for 2019 was $4,600.

After completing Inez’s return, she mentions to you that many of her friend’s and co-workers who make about the same amount of money and have the same number of children got almost double of what she is getting?

Obviously, one of the major reasons is that she has an ITIN number and not a social security number which does not make her eligible for EIC. Another reason is because she has a child who is over 24 and makes more than $4250. Lastly she has a child who turned 17 in 2019 and is no longer eligible for the child tax credit

As usual the taxpayer is upset and believes that the return was not completed correctly. As the tax preparer or quality reviewer, your job is to explain to the taxpayer why your work is correct and why this changed occur

In the preparation process, all UIW-VITA procedures were followed and the results of your return are 100% accurate.

Instructions

For the purposes of this scenario, you must explain to Inez why her refund is the way it is. As the tax preparer or quality reviewer, your job is to explain to the taxpayer why your work is correct and why this return resulted in the refund that it did. Remember, you are dealing with a taxpayer who is unhappy with your work. For this assignment, you are not required to re-explain to me the results of the return again. Rather, I am looking for a procedure you would use to assure the taxpayer the result of your work are accurate. Remember, all of the policies and procedures that were used in the preparation process. Be creative.

P. S- This is a class related to tax in USA.

QUESTION 1

Read the two cases of Barbican Bank and Intermarket of Zimbabwe and answer the questions below:

Barbican Bank (BB)

Barbican Bank was formed in the late 1990s at the height of a rush into the financial services sector by domestic investors. It was born out of an asset management company. The founder
was a flamboyant businessman who was a public figure in the financial services sector. At formation the bank declared its focus would be the elite market. Its products were therefore
targeted specifically at the top market. The bank also declared an intention to operate a very small branch network, no more than five branches. Barbican started experiencing liquidity
problems in early 2003 and was placed under the curator in March 2003. Before being placed under the curator Barbican had been reporting fabulous profits most of them having come
from non interest transactions. According to the Central Bank, Barbican ‘‘was experiencing serious liquidity problems as a result of imprudent banking behaviours. There was no clear separation between various related entities within the group which led to cross funding of operations and excessive risk taking among other shortcomings.’’ The Central Bank also noted
that the bank was involved in ‘‘questionable cross-border foreign exchange activities.’’ The bank had shifted funds to South Africa from local operations with the object of establishing a
new company in South Africa. During its operation the bank introduced the derivatives (junk bonds) market, which had been non-existent in the country’s financial sector. When liquidity
problems besieged Barbican the Central Bank placed the banking division under the curator and the asset management company under liquidation. At the time of taking these measures
the Central Bank had injected money into the bank as liquidity support but the bank appeared to be on a serious slide. The bank has since failed to repay on time the loan from the Central
bank’s Troubled Bank Fund. On seeing his financial companies in difficulties, the Chief Executive (the founder) skipped the country. Despite problems in the home operations, the
founding chief executive was trying to set up another financial services company in South Africa. During his tenure the Chief Executive is said to have been so dominant the board
appeared clueless and powerless to restrain him. The bank has now been placed into liquidation by the Central Bank. It will be amalgamated into a merger of liquidated banks to form a new bank.

Intermarket (IM)

The founder established Intermarket Holdings during the late 1990s through acquisitions. At the time of inset of financial distress, the founder owned 72 percent of Intermarket Holdings
through an investment company called Transnational Holdings. Transnational Holdings comprised companies in banking and insurance among others. Its influence in the financial
services sector was in every sphere. Intermarket Banking Corporation one of the subsidiaries of the holding company started showing signs of liquidity problems in early 2004. This was
during the period of a cash crisis in the country. Much as all banking institutions were affected by the cash crisis, Intermarket appeared completely outstretched by the crisis. In March 2004
the bank was placed under the management of a curator by the Central Bank when it appeared it could not pay its creditors and depositors on demand. On investigation, the Central Bank
discovered that the Executive Chairman had loaned himself Z$90 billion of depositors’ money and the insider loans were not being serviced. The Executive Chairman was said to have been so dominant he had the veto power on everything that took place in the corporation. Investigations by the appointed curator have led to a rise in the figure for insider loans to
Z$174 billion. The Executive chairman fled the country when authorities appeared to point at him as the main contributor to financial distress in the institution. Intermarket has been trying
to enter into partnership with other banking institutions, in order to shore up its capital, without much success. Instead Finhold, another Zimbabwean financial institution whose banking
subsidiary is owed Z$100 billion is positioning itself to take over major shareholding in Intermarket Bank through a combination of cash and debt swap. Finhold’s strategy is an
attempt to protect possible collapse of Intermarket since it is a major creditor. Intermarket has to raise its capital base to Z$10 billion before 30 September 2004 as per regulatory authority
requirements. Fraud by some IM employees taking advantage of weak management systems has exacerbated financial distress in Intermarket. The curator has however opened the banking division for limited services to depositors.

Questions:

a) The liquidity problems experience by Barbican Bank and Intermarket bank were as a result of poor risk management. Discuss?

b) Identify the speculative risk that was taken by Barbican Bank?

c) Lack of board independence inadvertently creates an epicentre for corporate governance failures. Discuss using the two cases and outline the ideal role of a board in corporate governance and risk management

Judy Allison sells cellular telephones for Alabama Office Supply in Birmingham. Today she is calling on Bill Taylor, purchasing agent for a large manufacturing firm. Two weeks earlier, she had made her first sales call and had left a demonstrator for the company executives to try out. The previous evening, Bill had called Judy and asked her to come in so he could give her an order. After their initial hellos, the con- versation continued: Buyer: Judy, thanks for coming by today. Our executives really like your equip- ment. Here is an order for four phones. When can you deliver them? Salesperson: Is tomorrow too soon? Buyer: That is perfect. Leave them with Joyce, my secretary. Joyce [ Bill says over the intercom ], Judy will deliver the phones tomorrow. Joyce, I want you to go ahead and take them to Sally, Anne, and Sherri. Women sure understand the use of modern equipment. Salesperson: Bill, thanks for your help. Buyer: Forget it Judy, I wish I could have helped more. Your cellular phones can reduce the “telephone tag” we play with each other and customers. Customers are leaving us because they can’t reach our salespeople when they are out on the road contacting customers. Salesperson: You’re right; many of my customers are going to them for that very reason. Buyer: I know, but some executives still feel they don’t want them. They don’t want their phone to ring when they’re in with a customer. Plus, the cancer scare has them worried. I wish the men in our company felt the same way the women do about using these things.

Question

From the conversation, what potential sales opportunities exist?

Armand Company projects the following sales for the first three months of the year: $10,600 in January; $12,300 in February; and $12,900 in March The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar. 1. Prepare a schedule of cash receipts for Armand for January, February, and March. What is the balance in Accounts Receivable on March 31? 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31? Solution: Requirement 1 Schedule of Cash Receipts from Customers January February March Total Total Sales $10,600 $12,300 $12,900 $35,800 Cash Receipts from Customers Accounts Receivable Balance, January 1 $0 1st Qtr. - Cash sales (60%) 6,360 1st Qtr. - Collected for sales on credit (20%) 2,120 2nd Qtr. - Collection of remaining amount of Jan. sales (20%) $2,120 2nd Qtr. - Cash sales (60%) 7,380 2nd Qtr. - Collected for sales on credit (20%) 2,460 3rd Qtr. - Collection of remaining amount of Feb. sales (20%) $2,460 3rd Qtr. - Cash sales (60%) 7,740 3rd Qtr. - Collected for sales on credit (20%) 2,580 Total cash receipts from customers $8,480 $11,960 $12,780 $33,220 Calculate and show below the Accounts Receivable Balance as of March 31 Requirement 2 Revised Schedule of Cash Receipts from Customers January February March Total Accounts Receivable balance, March 31: Amount February - Credit sales (finish this . . . .

Exercise 6-19 (Algo) Long-term contract; revenue recognition over time and at a point in time [LO6-9] Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,100,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below: 2021 2022 Costs incurred during the year $ 308,000 $ 1,615,000 Estimated costs to complete as of 12/31 1,232,000 0 Billings during the year 390,000 1,640,000 Cash collections during the year 270,000 1,760,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming Nortel recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 assuming Nortel recognizes revenue over time according to percentage of completion. 4. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 assuming this project does not qualify for revenue recognition over time.

You are evaluating a s project that develops AI cars. You dont have firm-level data,. For this project, you will need take a top-down valuation approach.
• The revenue of the transportation market is $50 billion dollars in the year of 2019. Its growth rate in 2020 is -5, in 2021 it is 3%, and goes 0%, 0%, 1%, 1%, 2%,2%,2%,2%,2% which ends in 2030.
• The current revenue share of the AI industry in the transportation market is 0%. The revenue share will rise in the year of 2025. It will then stabilize to 40% in the year of 2030.
• 10% is the discount rate in the industry

a. You use linear interpolation to estimate the AI car industry’s revenue share between 2025 to 2030. In 2024 the market share is 0; in 2030, the market share is 40%. From 2025 to 2030 (including 2025 and 2030), the increase in the revenue share relative to the previous year is a constant. What is the AI car industry’s market share as of 2029?
b. What is the AI car industry’s total revenue in 2030?
c. What is the present value of the AI car industry’s total revenue from 2020 to 2030? Discount all cash flows back to the year of 2019 (in billions $)?