Questions
Green and Silver Company Trial Balance For the Year Ended May 31, 2019 Debits Credits Cash...

Green and Silver Company
Trial Balance
For the Year Ended May 31, 2019
Debits Credits
Cash $            6,700 $                   -  
Accounts Receivable                1,000
Prepaid Insurance                1,080
Equipment              15,000
Accumulated Depreciation - Equipment                    350
Notes Payable                 5,000
Accounts Payable                 1,070
Salaries and Wages Payable                    300
Interest Payable                       50
Deferred Revenue                    800
Common Stock                 1,400
Additional Paid in Capital              12,600
Retained Earnings                        -  
Dividends                    600
Sales              20,700
Cost of Sales              10,350
Salaries and Wages Expense                3,850
Depreciation Expense                    350
Insurance Expense                1,800
Utilities Expense                1,490
Interest Expense                      50
$          42,270 $          42,270

Instructions:

Prepare an income statement, retained earnings statement, balance sheet, and statement of cash flows for the year ended May 31, 2019 in good form. See examples on 3-14, 3-15, and 11-20 of the textbook. Be sure to include subtotals like current assets, current liabilities, and gross profit. I already answered the income statement, retained earnings statement and balnce sheet. I just need help on the statement of cash flows please?

In: Accounting

Serial Problem Business Solutions LO P1, P2, P3, P4, P5 After the success of the company’s...

Serial Problem Business Solutions LO P1, P2, P3, P4, P5

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2016, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2016) follows.

No. Account Title Debit Credit
101 Cash $ 38,764
106 Accounts receivable 12,918
126 Computer supplies 2,645
128 Prepaid insurance 2,160
131 Prepaid rent 3,280
163 Office equipment 8,300
164 Accumulated depreciation—Office equipment $ 0
167 Computer equipment 22,400
168 Accumulated depreciation—Computer equipment 0
201 Accounts payable 0
210 Wages payable 0
236 Unearned computer services revenue 0
307 Common stock 66,000
318 Retained earnings 0
319 Dividends 5,700
403 Computer services revenue 35,779
612 Depreciation expense—Office equipment 0
613 Depreciation expense—Computer equipment 0
623 Wages expense 2,325
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 1,708
676 Mileage expense 654
677 Miscellaneous expenses 220
684 Repairs expense—Computer 705
Totals $ 101,779 $ 101,779

Business Solutions had the following transactions and events in December 2016.

Dec. 2 Paid $950 cash to Hillside Mall for Business Solutions’s share of mall advertising costs.
3 Paid $440 cash for minor repairs to the company’s computer.
4 Received $4,550 cash from Alex’s Engineering Co. for the receivable from November.
10 Paid cash to Lyn Addie for six days of work at the rate of $105 per day.
14 Notified by Alex’s Engineering Co. that Business Solutions’s bid of $7,100 on a proposed project has been accepted. Alex’s paid a $2,500 cash advance to Business Solutions.
15 Purchased $1,400 of computer supplies on credit from Harris Office Products.
16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
20 Completed a project for Liu Corporation and received $6,525 cash.
22–26 Took the week off for the holidays.
28 Received $3,400 cash from Gomez Co. on its receivable.
29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile).
31 The company paid $1,300 cash in dividends.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:

The December 31 inventory count of computer supplies shows $590 still available.

Three months have expired since the 12-month insurance premium was paid in advance.

As of December 31, Lyn Addie has not been paid for four days of work at $105 per day.

The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.

The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.

Three of the four months' prepaid rent has expired.


Required:

1. Prepare journal entries to record each of the December transactions and events for Business Solutions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

.....

Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.

Note: Enter debits before credits.
Date General Journal Debit Credit
Dec 16 No journal entry required

Journal entry worksheet

The December 31 inventory count of computer supplies shows $590 still available.

Note: Enter debits before credits.
Transaction General Journal Debit Credit
a. Computer supplies expense
Computer supplies

2.2 Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.


General Ledger Accounts

Cash Accounts Receivable
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 Dec. 01
Computer Supplies Prepaid Insurance
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 Dec. 01
Prepaid Rent Office Equipment
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 Dec. 01
Accumulated Depreciation—Office Equipment Computer Equipment
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 0 Dec. 01
Accumulated Depreciation—Computer Equipment Accounts Payable
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 0 Dec. 01 0
Wages Payable Unearned Computer Services Revenue
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 0 Dec. 01 0
Common Stock Retained Earnings
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 Dec. 01 0
Dividends Computer Services Revenue
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 Dec. 01
Depreciation Expense—Computer Equipment Depreciation Expense—Office Equipment
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 0 Dec. 01 0
Insurance Expense Rent Expense
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 0 Dec. 01 0
Computer Supplies Expense Advertising Expense
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 0 Dec. 01
Mileage Expense Miscellaneous Expenses
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 Dec. 01
Repairs Expense — Computer Wages Expense
Date Debit Credit Balance Date Debit Credit Balance
Dec. 01 Dec. 01
Income Summary
Date Debit Credit Balance
Dec. 01 0

Prepare an adjusted trial balance as of December 31, 2016.


3. Prepare an adjusted trial balance as of December 31, 2016.

4. Prepare an income statement for the three months ended December 31, 2016.


5. Prepare a statement of retained earnings equity for the three months ended December 31, 2016.


6. Prepare a balance sheet as of December 31, 2016.

7. Record and post the necessary closing entries for Business Solutions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Journal entry worksheet

Record the entry to close the revenue account.

Note: Enter debits before credits.
Date General Journal Debit Credit
Dec 31

Journal entry worksheet

Record the entry to close the expense accounts.

Note: Enter debits before credits.

8. Prepare a post-closing trial balance as of December 31, 2016.

In: Accounting

1. The following costs result from the production and sale of 4,450 drum sets manufactured by...

1. The following costs result from the production and sale of 4,450 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $295 each. The company has a 30% income tax rate.

Variable production costs
Plastic for casing $ 115,700
Wages of assembly workers 404,950
Drum stands 155,750
Variable selling costs
Sales commissions 106,800
Fixed manufacturing costs
Taxes on factory 14,500
Factory maintenance 29,000
Factory machinery depreciation 89,000
Fixed selling and administrative costs
Lease of equipment for sales staff 29,000
Accounting staff salaries 79,000
Administrative management salaries 159,000

a. Prepare a contribution margin income statement for the company.

b. Compute its contribution margin per unit and its contribution margin ratio.

2. Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year’s plans call for a $350 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $315,000, up to a maximum capacity of 550,000 yards of rope. Forecasted variable costs are $245 per 100 yards of XT rope.

a. Estimate Product XT’s break-even point in terms of sales units and sales dollars. (1 unit = 100 yards) (Do not round intermediate calculations.) 2.

b. Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product XT at the break-even point.

In: Accounting

Post your response and recommendations in a well thought out manner. Provide reasons to explain your...

Post your response and recommendations in a well thought out manner. Provide reasons to explain your position on the issue.

Your response should demonstrate thoughtful consideration of the ideas and concepts that are presented in the discussion and provide new thoughts and insights directly related to the topic. Your response should reflect scholarly writing and follow current APA standards.

Discussion Questions and Critical Thinking/Ethical Case

1.

What are the functions of accounting?

2.

Define, compare, and contrast sole proprietorships, partnerships, and corporations.

3.

How are businesses classified?

4.

How has technology affected the role of the bookkeeper?

5.

List the three elements of the basic accounting equation.

6.

Define capital.

7.

The total of the left-hand side of the accounting equation must equal the total of the right-hand side. True or false? Please explain.

8.

A balance sheet tells a company where it is going and how well it performs. True or false? Please explain.

9.

Revenue is an asset. True or false? Please explain.

10.

Owner’s equity is subdivided into what categories?

11.

A withdrawal is a business expense. True or false? Please explain.

12.

As expenses increase they cause owner’s equity to increase. Defend or reject.

13.

What does an income statement show?

14.

The statement of owner’s equity only calculates ending withdrawals. True or false? Please explain.

15.

Paul Kloss, an accountant for Lowe & Co., traveled to New York on company business. His total expenses came to $350. Paul felt that because the trip extended over the weekend he would “pad” his expense account with an additional $100 of expenses. After all, weekends represent his own time, not the company’s. What would you do? Write your specific recommendations to Paul.

In: Accounting

Randall Company is a merchandising company that sells a single product. The company's inventories, production, and...

Randall Company is a merchandising company that sells a single product. The company's inventories, production, and sales in units for the next three months have been forecasted as follows:

October

November

December

Beginning Inventory

10,000

10,000

10,000

Merchandise purchases

60,000

70,000

35,000

Sales

60,000

70,000

40,000

Ending Inventory

10,000

10,000

5,000



a. Units are sold for $12 each. One fourth of all sales are paid for in the month of sale and the balance is paid for in the following month. Accounts receivable at September 30 totaled $450,000.
Required: Prepare a sales budget and cash collection schedule

b. Merchandise is purchased for $7 per unit. Half of the purchases are paid for in the month of the purchase and the remainder is paid for in the month following purchase. Selling and administrative expenses are expected to total $120,000 each month. One half of these expenses will be paid in the month in which they are incurred, and the balance will be paid in the following month. There is no depreciation. Accounts payable at September 30 totaled $290,000.
Required: Prepare a schedule showing expected cash disbursements for merchandise purchases and selling and administrative expenses for each of the months October, November, and December.

c. Cash at September 30 totaled $80,000. A payment of $300,000 for purchase of equipment is scheduled for November, and a dividend of $200,000 is to be paid in December.
Required: Prepare a cash budget for each of the months October, November, and December. There is no minimum required ending cash balance.

In: Accounting

The budget director for Martin Washing Services prepared the following list of expected selling and administrative...

The budget director for Martin Washing Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances.

  1. Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.

  2. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.

  3. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.

October

November

December

Budgeted S&A Expenses

Equipment lease expense

$6,300

$6,300

$6,300

Salary expense

5,900

6,400

6,800

Cleaning supplies

2,870

2,790

3,040

Insurance expense

1,500

1,500

1,500

Depreciation on computer

1,700

1,700

1,700

Rent

2,300

2,300

2,300

Miscellaneous expenses

760

760

760

Total operating expenses

$21,330

$21,750

$22,400

Schedule of Cash Payments for S&A Expenses

Equipment lease expense

Prior month’s salary expense, 100%

Cleaning supplies

Insurance premium

Depreciation on computer

Rent

Miscellaneous expenses

Total disbursements for operating expenses

$21,230

$18,050

$18,800

In: Accounting

Lamia's House of Software (LHS) wants to prepare a cash budget for months of September through...

Lamia's House of Software (LHS) wants to prepare a cash budget for months of
September through Dêcember. Using the following information,
Sales were $50,000 in June and $60,000 in July. Sales have been
forecasted to be $65,000, $72,000, $63,000, $59,000, and $56,000 for months
of August, September, October, November, and December, respectively. In the
past, 10 percent of sales were on cash basis, and the collection were 50
percent in the first month, 30 percent in the second month, and 10 percent in
the third month following the sales.
n
Every four months (three times a year) $500 of dividends from investments
are expected. The first dividend payment was received in January.
Purchases are 60 percent of sales, 15 percent of which are paid in cash, 65
percent are paid one month later, and the rest is paid two months after
purchase.
$8,000 dividends are paid twice a year (in March and September).
The monthly rent is $2,000.
Taxes are $6,500 payable in December.
A new machine will be purchased in October for $2,300
$1,500 interest will be paid in November
$1,000 loan payments are paid every month.
Wages and salaries are $1,000 plus 5 percent of sales in each month.
August's ending cash balance is $3,000.
LHS would like to maintain a minimum cash balance of $10,000.
October Cash.
$1,570 ExcessCash
November Cash
$36,900 Excess cash
September cash
$1,570 Required Financing

In: Advanced Math

Lamia's House of Software (LHS) wants to prepare a cash budget for months of September through...

Lamia's House of Software (LHS) wants to prepare a cash budget for months of
September through Dêcember. Using the following information,
Sales were $50,000 in June and $60,000 in July. Sales have been
forecasted to be $65,000, $72,000, $63,000, $59,000, and $56,000 for months
of August, September, October, November, and December, respectively. In the
past, 10 percent of sales were on cash basis, and the collection were 50
percent in the first month, 30 percent in the second month, and 10 percent in
the third month following the sales.
n
Every four months (three times a year) $500 of dividends from investments
are expected. The first dividend payment was received in January.
Purchases are 60 percent of sales, 15 percent of which are paid in cash, 65
percent are paid one month later, and the rest is paid two months after
purchase.
$8,000 dividends are paid twice a year (in March and September).
The monthly rent is $2,000.
Taxes are $6,500 payable in December.
A new machine will be purchased in October for $2,300
$1,500 interest will be paid in November
$1,000 loan payments are paid every month.
Wages and salaries are $1,000 plus 5 percent of sales in each month.
August's ending cash balance is $3,000.
LHS would like to maintain a minimum cash balance of $10,000.
October Cash.
$1,570 ExcessCash
November Cash
$36,900 Excess cash
September cash
$1,570 Required Financing

In: Accounting

Lamia's House of Software (LHS) wants to prepare a cash budget for months of September through...

Lamia's House of Software (LHS) wants to prepare a cash budget for months of September through December. Using the following information,
∙ Sales were $50,000 in June and $60,000 in July. Sales have been forecasted to be $65,000, $72,000, $63,000, $59,000, and $56,000 for months of August, September, October, November, and December, respectively. In the past, 10 percent of sales were on cash basis, and the collection were 50 percent in the first month, 30 percent in the second month, and 10 percent in the third month following the sales.
∙ Every four months (three times a year) $500 of dividends from investments are expected. The first dividend payment was received in January.
∙ Purchases are 60 percent of sales, 15 percent of which are paid in cash, 65 percent are paid one month later, and the rest is paid two months after purchase.
∙ $8,000 dividends are paid twice a year (in March and September).
∙ The monthly rent is $2,000.
∙ Taxes are $6,500 payable in December.
∙ A new machine will be purchased in October for $2,300.
∙ $1,500 interest will be paid in November.
∙ $1,000 loan payments are paid every month.
∙ Wages and salaries are $1,000 plus 5 percent of sales in each month.
∙ August's ending cash balance is $3,000.
∙ LHS would like to maintain a minimum cash balance of $10,000.
December Cash
October Cash.
September cash
November Cash

In: Finance

Rocky Ltd is a small business based in Napier, it sells one product which it manufacturers...

Rocky Ltd is a small business based in Napier, it sells one product which it manufacturers itself. It is currently in the process of establishing the fourth-quarter budget for 2015. Mark Leewood, the production manager has only been working for the company for a month, and is a little bit worried about aligning the production processes. He has asked for your help and provided you with the following information:

  • The product sells for $325 per unit.
  • Estimated sales volume in units for the next six months is:

September

65,000

October

70,000

November

60,000

December

110,000

January

45,000

February

50,000
  • Rocky Ltd’s policy is to maintain ending finished goods inventory each month at a level equal to 40% of the next month’s budgeted sales.
  • To make one unit of finished product, 5 kilos of direct materials are required.
  • Rocky Ltd’s policy is to have enough materials on hand at the end of the month to equal 30% of next month’s usage.
  • The cost per kilogram of material is $22.50.
  • The product’s contribution margin is $250.
  1. Prepare a production budget for Mark Leewood, in units for the last quarter of 2015.
  2. Prepare a materials purchases budget for Mark, in kilograms for October and November 2015.
  3. What is the cost of purchases in October?
  4. Why is it important in a manufacturing environment to prepare a production and purchases budget? Answer with reference to the planning and control cycle.

In: Accounting