Assume the following selected balances appear in their normal debit or credit column in the adjusted trial balance for the Leonard Company:
|
Selected Accounts at 12/31/13 |
|
|
Cash |
$19,500 |
|
Accounts Receivable |
27,200 |
|
Accounts Payable |
18,000 |
|
Capital Stock |
50,000 |
|
Retained Earnings |
20,400 |
|
Dividends |
43,200 |
|
Service Revenue |
388,000 |
|
Miscellaneous Expenses |
168,000 |
Required:
a. Use T-Accounts to demonstrate the necessary closing entries for
the company at 12/31/13. (T-accounts should show the balance before
closing and the balance after closing.)
b. Determine the Retained Earnings account balance
after the year-end closing.
In: Accounting
Suppose a business firm faces the following demand equation: Q = 40 – 0.5P. Marginal cost is MC = $20. Now suppose the firm decides to offer quantity discount by selling the product in bundles of 10 units.
a. What is the maximum price that the firm can charge for the first 10 units, for the second 10 units, and for the third 10 units? Now compute the revenue and cost of selling the three bundles (a total 30 units) .
b. Which pricing strategy (quantity discount or two-part) is more beneficial to the business? Why?
b. Which pricing strategy (quantity discount or two-part) is more beneficial to the business? Why?
In: Economics
a. Suppose that Generic General Hospital (GGH) has no market power in price negotiations with private insurers (i.e. suppose GGH is a price-taker, facing perfectly elastic demand for its services). Briefly explain why a reduction in public payer rates could not generate “cost-shifting” in this situation.
B. Suppose that Magnificent General Hospital (MGH) has market power in price negotiations with private insurers, and exploits its market power to the best of its ability (i.e. it is able to set a revenue or profit-maximizing price). Briefly explain why a reduction in public payer rates could not generate “cost-shifting” in this situation.
In: Economics
You are the president of High Power Corporation. At the end of
the first year of operations (December 31, 2017), the following
financial data for the company are available:
| Cash | $ | 18,250 | |
| Accounts Receivable | 14,000 | ||
| Supplies | 8,400 | ||
| Equipment | 132,000 | ||
| Accounts Payable | 76,500 | ||
| Notes Payable | 1,860 | ||
| Sales Revenue | 132,000 | ||
| Operating Expenses | 79,200 | ||
| Other Expenses | 12,900 | ||
| Contributed Capital | 55,500 | ||
| Dividends | 1,110 | ||
Required:
1. Prepare an income statement for the year ended December
31, 2017.
2. Prepare a statement of retained earnings for the year
ended December 31, 2017.
3. Prepare a balance sheet at December 31,
2017.
In: Accounting
KF Services provides Cars' check up its customers. The selling price of each check up is $75 and the variable costs associated are $42,5. The monthly relevant fixed costs are $10,000. Required: a. How many check up are needed to break even? What is the break even point in dollars? b. What is the margin of safety in dollars, assuming sales total $30,000? c. How many check up are needed to achieve a net income of $40,000?, if the tax rate is 20% d. What is the break even level in units, assuming the fixed costs are $5000 plus 10% of revenue received?
In: Accounting
"The A.M.I. Company is considering installing a new process machine for the firm's manufacturing facility. The machine costs $573,000 installed, will generate additional revenue of $86,000 per year, and will save $60,000 per year in labor and material costs. The machine will be financed by a $202,000 bank loan repayable in three equal annual installments with a 11% interest rate. The machine will be depreciated using seven-year MACRS. The useful life of the machine is 10 years when the machine will be sold for $29,000. The marginal tax rate is 40%. Compute the IRR of the investment. Enter your answer as a percentage between 0 and 100."
SHOW ALL WORK OR EXPLAIN EXCEL FORMULAS
In: Finance
|
Johnson Oil & Gas sold 12,500 BBLs of oil for the year 2018 at a price per BBL of $48. Revenues and costs |
|||
|
for Johnson Oil & Gas are presented below: |
|||
|
Revenue |
$ 825,000 |
||
|
G&G Costs |
$ 650,000 |
||
|
Acquisition Costs |
$ 1,500,000 |
||
|
Exploratory dry holes |
$ 3,000,000 |
||
|
Successful exploratory wells |
$ 5,000,000 |
||
|
Development wells, dry |
$ 900,000 |
||
|
Development wells, successful |
$ 735,000 |
||
|
Production facilities |
$ 610,000 |
||
|
Production costs |
$ 200,000 |
||
|
Successful Efforts |
|||
|
Amortization for 2018 |
$ 200,000 |
||
|
Accumulated DD&A |
$ 500,000 |
||
|
Required: |
|||
|
Prepare income statements and unclassified balance sheet for both an SE and FC company, explain the |
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|
difference in net income. |
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In: Accounting
Based on the situations below, explain the type of
offence, the provision of the
offence under Income Tax Act 1967, and penalty (fine/imprisonment)
faced by the
taxpayers:(Malaysia tax)
Fatt, a graduate of Lim Kok Wing University, founded a
startup business in
Selangor after he graduated. He has been earning a steady income
from his
business venture in 2019. However, he did not declare any of his
income to the
Inland Revenue Board of Malaysia by filing Income Tax Return Form,
as he was
afraid of not getting any government assistance thereafter as his
income exceeds
the limit stipulated.
In: Accounting
Pharoah Company reports the following financial information
before adjustments.
|
Dr. |
Cr. |
|||||
|---|---|---|---|---|---|---|
|
Accounts Receivable |
$130,100 | |||||
|
Allowance for Doubtful Accounts |
$3,310 | |||||
|
Sales Revenue (all on credit) |
808,500 | |||||
|
Sales Returns and Allowances |
52,830 | |||||
Prepare the journal entry to record bad debt expense assuming
Pharoah Company estimates bad debts at (a) 4% of accounts
receivable and (b) 4% of accounts receivable but Allowance for
Doubtful Accounts had a $1,490 debit balance. (If no
entry is required, select "No Entry" for the account titles and
enter 0 for the amounts. Credit account titles are automatically
indented when the amount is entered. Do not indent
manually.)
In: Accounting
Bryant leased equipment that had a retail cash selling price of $620,000 and a useful life of five years with no residual value. The lessor paid $540,000 to acquire the equipment and used an implicit rate of 8% when calculating annual lease payments of $143,780 beginning January 1, the beginning of the lease. Lease payments will be made January 1 each year of the lease. Incremental costs of consummating the lease transaction incurred by the lessor were $16,000. What is the effect of the lease on the lessor's earnings during the first year (ignore taxes)? (Input decreases to income as negative amounts. Round Interest revenue to the nearest whole dollar.)
In: Accounting