Personal Budget

At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign.

Stanley Burrell founder of a company named Hammer Time Inc. Hammer Time Inc produces specialty functional novelty hammers in the image of Stanley Burrell himself, aka MC Hammer. The three best-selling/most popular products sold by Hammer Time Inc. are Hammer Head Hammers, Hammer Pants Hammers, and Please Hammer Don't Hurt ‘Em Mini Hammers.

Hammer Time Inc. uses the actual total factory overhead costs from the prior year (corresponding month) to estimate the total factory overhead costs. They do this by taking last year’s actual costs (same month) and increasing them by 8%.

Actual Total Factory Overhead costs October '18 = $3,000,000

For the month of October '19 for the production in the 2 Legit Warehouse

Estimated Machine Hours = 128,000

Hammer Head Hammers = 50,300 machine hours

Hammer Pants Hammers = 41,200 machine hours

Mini Hammers = 27,300 machine hours

Actual Total Factory Overhead costs October '19 = $3,130,560

A. What is the predetermined overhead rate?

B. If the predetermined factory overhead rate was applied to the three products in March what would be the under/over applied factory overhead once the actual factory overhead cost was known?

C. Using the data from how much factory overhead would be applied to Hammer Pants Hammers?

Please complete a classified balance sheet with the information provided. (Not all information provided may be relevant in completing the question).

Please complete a multi step income statement with the information provided. (Not all information provided may be relevant in completing the question).

Please complete a statement of retained earnings with the information provided. (Not all information provided may be relevant in completing the question).

Question 1                                                                                                                      

Namibia Enterprises produces a single product called product N. The company requires 30 units in October, 30 units in November and 20 units in December. The demand is supposed to be met every month. However, should there be a demand backlog, the cost of such a backlog per unit is N$5 per each month. This means that if 1 unit demanded in October is only satisfied in

December, the backlog cost will be N$5 x 2 months = N$10. All the demand should be met by the end of December. The following table contains the monthly production capacity and production cost per unit:

Each unit in inventory incurs a holding cost of N$20 at the end of each month.

XYZ Products, Selected Accounts from the Adjusted Trial Balance dated October 31, 2020 (for its year ended October 31, 2020).

Sales                              $426,000

Sales returns                     13,000

Inventory                          28,902

Purchase discounts            2,370

Purchase returns                5,000

Transportation-in               2,346

Jack Sildex, capital           2,800 CR

Sales discounts                  7,000

Depreciation expense      10,000

Purchase allowances         4,000

Sales allowances               6,000

Purchases                      246,000

Property tax expense      14,625

Store supplies expense     3,814

Wages expense                56,561

REQUIRED (NOTE THAT ALL ACCOUNTS HAVE THEIR NORMAL DEBIT OR CREDIT BALANCES):

The inventory on hand at October 31, 2020 was $5,878.

Part A.   Using the PERIODIC SYSTEM, prepare ONLY the part of a classified, multiple-step Income Statement that includes the SALES, COST OF GOOD SOLD, and GROSS PROFIT sections

Part B.   Calculate the gross margin % (also known as the gross profit %) .

Part C.   Prepare the first closing entry under the PERIODIC SYSTEM that closes the temporary accounts with credit balances and sets up ending inventory - NEED  A DATE, but NO EXPLANATION REQUIRED

Part D. Prepare the second closing entry under the PERIODIC SYSTEM that closes the temporary accounts with debit balances and removes beginning inventory - NEED  A DATE, but NO EXPLANATION REQUIRED

Part E. What is the net income for the year? - USE THE CLOSING ENTRIES TO CALCULATE THIS AMOUNT.

prepare the following journal entries:

1) The company sold (5) payroll service packages, covering 6 months of fully automated payroll service for $6,000 each. The regular price was $6,500 each, but the customers received a discount for paying for the service up front. Each company will receive 2 payroll runs per month. One on the 15th and one on the 30th of each month.

2) The company provided $5,600 of tax consulting services to clients on account.

3) The company ran its first payroll service for two of the companies. The other three companies were not yet ready to begin running payroll.

4) The company paid $2,100 cash for two weeks salary earned by two employees.

5) The company purchased $950 for October advertising on account.

6) The company provided $8,200 of tax services to clients and received payment.

7) The company paid a $687 electic bill for October utilities.

8) The company collected $2,000 from clients that were provided service on account on the 13th.

9) The company paid 1/2 of the bill for paper and supplies that was purchased on the 8th.

10) The company paid $2,100 cash for two weeks salary earned by two employees.

11) The company ran payroll service for all five companies that purchased service in October. 30 The company paid dividends of $700.

12) An employee and received a $300 advance for November travel for the company.

On October 1, 2020, Isshita Karim established an interior decorating business, Isshita Designs. During the month, John completed the following transactions related to the business:

Oct.       1

.           Isshita transferred cash from a personal bank account to an account to be used for the business, $15,000.

              4.      Paid rent for the month of October, $1,100.

            10.      Purchased a used truck for $7,500, paying 1,500 cash and signing a note payable for the remainder.

            12.      Received $300 in advance for jobs to be performed in November.

13.      Purchased equipment on account, $3,100.

            14.      Purchased supplies for cash, $719.

            15.      Paid annual premiums for property and casualty insurance, $600.

            15.      Received cash for job completed, $1,950.

            21.      Paid creditor a portion of the amount owed for equipment purchased on October 13, $1,500.

            24.      Recorded jobs completed on account and sent invoices to customers, $2,500.

            26.      Received an invoice for truck expenses, to be paid in November, $175.

            27.      Paid utilities bills, $140.

            27.      Paid miscellaneous expenses, $90.

            29.      Received cash from customers on account, 1,700.

            30.      Paid wages to employees, $900.

            31.      Withdrew cash for personal use, $200.

Isshita Designs

Journal Entries