Questions
Prepare journal entries, income statement, statement of retained earnings and analysis for the following: One Trick...

Prepare journal entries, income statement, statement of retained earnings and analysis for the following:

One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the following post-closing balances at December 31:
  Cash $ 18,620
  Accounts Receivable 9,650
  Allowance for Doubtful Accounts 900*
  Inventory 2,800
  Unearned Revenue (30 units) 4,350
  Accounts Payable 1,300
  Notes Payable (long-term) 15,000
  Common Stock 5,000
  Retained Earnings 4,520

* credit balance.

The following information is relevant to the first month of operations in the following year:

OTP will sell inventory at $145 per unit. OTP’s January 1 inventory balance consists of 35 units at a total cost of $2,800. OTP’s policy is to use the FIFO method, recorded using a perpetual inventory system.

In December, OTP received a $4,350 payment for 30 units to be delivered in January; this obligation was recorded in Unearned Revenue. Rent of $1,300 was unpaid and recorded in Accounts Payable at December 31.

OTP’s note payable matures in three years, and accrues interest at a 10% annual rate.

  

January Transactions
1.

Included in OTP’s January 1 Accounts Receivable balance is a $1,500 balance due from Jeff Letrotski. Jeff is having cash flow problems and cannot pay the $1,500 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,500 balance to a 6-month note, at 12% annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and payable to OTP on July 1 of this year.
2.

OTP paid a $500 insurance premium on 01/02, covering the month of January; the payment is recorded directly as an expense.
3.

OTP purchased an additional 150 units of inventory from a supplier on account on 01/05 at a total cost of $9,000, with terms 2/15, n/30.
4.

OTP paid a courier $300 cash on 01/05 for same-day delivery of the 150 units of inventory.
5.

The 30 units that OTP’s customer paid for in advance in December are delivered to the customer on 01/06.
6.

On 01/07, OTP paid the amount necessary to settle the balance owed to the supplier for the 1/05 purchase of inventory (in 3).
7.

Sales of 40 units of inventory occuring during the period of 01/07 – 01/10 are recorded on 01/10. The sales terms are 2/10, n/30.
8.

Collected payments on 01/14 from sales to customers recorded on 01/10. The discount was properly taken by customers on $5,800 of these credit sales; consequently, OTP received less than $5,800.
9. OTP paid the first 2 weeks wages to the employees on 01/16. The total paid is $2,200.
10.

Wrote off a $1,000 customer’s account balance on 01/18. OTP uses the allowance method, not the direct write-off method.
11.

Paid $2,600 on 01/19 for December and January rent. See the earlier bullets regarding the December portion. The January portion will expire soon, so it is charged directly to expense.
12.

OTP recovered $400 cash on 01/26 from the customer whose account had previously been written off on 01/18.
13. An unrecorded $400 utility bill for January arrived on 01/27. It is due on 02/15 and will be paid then.
14. Sales of 65 units of inventory during the period of 01/10 – 01/28, with terms 2/10, n/30, are recorded on 01/28.
15.

Of the sales recorded on 1/28, 15 units are returned to OTP on 01/30. The inventory is not damaged and can be resold.
16. On 01/31, OTP records the $2,200 employee salary that is owed but will be paid February 1.
17.

OTP uses the aging method to estimate and adjust for uncollectible accounts on 01/31. All of OTP’s accounts receivable fall into a single aging category, for which 8% is estimated to be uncollectible. (Update the balances of both relevant accounts prior to determining the appropriate adjustment, and round your calculation to the nearest dollar.)
18. Accrue interest for January on the note payable on 01/31.
19.

Accrue interest for January on Jeff Letrotski’s note on 01/31 (see 1).

For Analysis

For the month ended January 31, indicate the (a) gross profit percentage (rounded to one decimal place), (b) number of units in ending inventory, and (c) cost per unit of ending inventory (include dollars and cents).
Gross profit percentage %
Number of units in ending inventory Units
Cost per unit of ending inventory per Unit
If OTP had used the percentage of sales method (using 2% of Net Sales) rather than the aging method, what amounts would OTC’s January financial statements have reported for (a) Bad Debt Expense, and (b) Accounts Receivable, net?
Bad Debt Expense
Accounts Receivable, net
If OTP had used LIFO rather than FIFO, what amount would OTC have reported for Cost of Goods Sold on 01/10?
Cost of Goods Sold

In: Accounting

C8-3 Recording Daily and Adjusting Entries Using FIFO in a Perpetual Inventory System (Chapters 3, 4,...

C8-3 Recording Daily and Adjusting Entries Using FIFO in a Perpetual Inventory System (Chapters 3, 4, 6, 7, and 8) (LO 3-3, 4-2, 4-3, 4-4, 6-3, 6-4, 6-5, 7-3, 8-2, 8-3) (General Ledger)

One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the following post-closing balances at December 31:
  Cash $ 18,620
  Accounts Receivable 9,650
  Allowance for Doubtful Accounts 900*
  Inventory 2,800
  Unearned Revenue (30 units) 4,350
  Accounts Payable 1,300
  Notes Payable (long-term) 15,000
  Common Stock 5,000
  Retained Earnings 4,520

  * credit balance.

The following information is relevant to the first month of operations in the following year:

   

OTP will sell inventory at $145 per unit. OTP’s January 1 inventory balance consists of 35 units at a total cost of $2,800. OTP’s policy is to use the FIFO method, recorded using a perpetual inventory system.

In December, OTP received a $4,350 payment for 30 units to be delivered in January; this obligation was recorded in Unearned Revenue. Rent of $1,300 was unpaid and recorded in Accounts Payable at December 31.

OTP’s note payable matures in three years, and accrues interest at a 10% annual rate.

  

January Transactions
1.

Included in OTP’s January 1 Accounts Receivable balance is a $1,500 balance due from Jeff Letrotski. Jeff is having cash flow problems and cannot pay the $1,500 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,500 balance to a 6-month note, at 12% annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and payable to OTP on July 1 of this year.
2.

OTP paid a $500 insurance premium on 01/02, covering the month of January; the payment is recorded directly as an expense.
3.

OTP purchased an additional 150 units of inventory from a supplier on account on 01/05 at a total cost of $9,000, with terms 2/15, n/30.
4.

OTP paid a courier $300 cash on 01/05 for same-day delivery of the 150 units of inventory.
5.

The 30 units that OTP’s customer paid for in advance in December are delivered to the customer on 01/06.
6.

On 01/07, OTP paid the amount necessary to settle the balance owed to the supplier for the 1/05 purchase of inventory (in 3).
7.

Sales of 40 units of inventory occuring during the period of 01/07 – 01/10 are recorded on 01/10. The sales terms are 2/10, n/30.
8.

Collected payments on 01/14 from sales to customers recorded on 01/10. The discount was properly taken by customers on $5,800 of these credit sales; consequently, OTP received less than $5,800.
9. OTP paid the first 2 weeks wages to the employees on 01/16. The total paid is $2,200.
10.

Wrote off a $1,000 customer’s account balance on 01/18. OTP uses the allowance method, not the direct write-off method.
11.

Paid $2,600 on 01/19 for December and January rent. See the earlier bullets regarding the December portion. The January portion will expire soon, so it is charged directly to expense.
12.

OTP recovered $400 cash on 01/26 from the customer whose account had previously been written off on 01/18.
13. An unrecorded $400 utility bill for January arrived on 01/27. It is due on 02/15 and will be paid then.
14. Sales of 65 units of inventory during the period of 01/10 – 01/28, with terms 2/10, n/30, are recorded on 01/28.
15.

Of the sales recorded on 1/28, 15 units are returned to OTP on 01/30. The inventory is not damaged and can be resold.
16. On 01/31, OTP records the $2,200 employee salary that is owed but will be paid February 1.
17.

OTP uses the aging method to estimate and adjust for uncollectible accounts on 01/31. All of OTP’s accounts receivable fall into a single aging category, for which 8% is estimated to be uncollectible. (Update the balances of both relevant accounts prior to determining the appropriate adjustment, and round your calculation to the nearest dollar.)
18. Accrue interest for January on the note payable on 01/31.
19.

Accrue interest for January on Jeff Letrotski’s note on 01/31 (see 1)

Requirement

General Journal tab - Prepare all January journal entries and adjusting entries for items 1–19. Review the 'General Ledger' and the adjusted 'Trial Balance' Tabs to see the effect of the transactions on the account balances.
Trial Balance tab - Review the adjusted 'Trial Balance' as of January 31.
Income Statement tab - Prepare an income statement for the period ended January 31 in the 'Income Statement' Tab.
Statement of Retained earnings - Prepare a statement of retained earning in the 'Statement of Retained earnings' Tab.
Balance Sheet tab - Prepare a classified balance sheet as of January 31 in the 'Balance Sheet' Tab.
Analysis tab -  Using the information from the requirements above, complete the 'Analysis' tab.

In: Accounting

Compute the area under y = √x between x = a and x = b where...

Compute the area under y = √x between x = a and x = b where a and b are user specified values obtained via cin. Account for invalid user input cases of a < 0 and a > b. For each case of invalid input, immediately output to the user what the error was. Allow the user a total of three chances to enter valid input for each input request. If the user enters incorrect input three times in a row for an input request, display a different error and exit the program.

In: Computer Science

Imagine that a researcher is conducting a paired-samples t test. She finds that the sample mean...

Imagine that a researcher is conducting a paired-samples t test. She finds that the sample mean difference is 3.665, the standard deviation of the difference scores is 9.334, and the sample size is 75. The researcher is also using a typical null hypothesis that proposes no differences between the relevant population means. Under these circumstances, what is the value of Cohen's d? Please retain a minimum of three decimal places for all steps (if relevant) and provide a minimum of three decimal places when writing your answer.

In: Statistics and Probability

recall that the definition of arbitrage required the satisfaction of three conditions: one about weights, one...

recall that the definition of arbitrage required the satisfaction of three conditions: one about weights, one about risk, and one about returns. Consider the following scenario in a one factor APT:

E[r] B1
Asset x 3.3% 0.7
Asset y 2.1% 2.3
Asset z 10.1% 3.3

What is the expected return of an arbitrage portfolio composed of all three assets, x, y, and z. Weights will be between +1 and -1. Answer is 5.38. please show how to do.

In: Finance

Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and...

Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. This regulatory structure creates transparency between banking institutions and the individuals and corporations with whom they conduct business.

(a) It is often said that Hong Kong maintains a “three-tier banking system.” Critically review the key features of this system.

(b) Banks in Hong Kong are overly regulated by the Hong Kong Monetary Authority. Do you agree with this statement? Please cite three examples

In: Finance

12. Describe 2 (two) strategies you could implement to overcome the consent issues for Aboriginal and...

12. Describe 2 (two) strategies you could implement to overcome the consent issues for Aboriginal and Torres Strait Islander patients (in 40-60 words).



13. Provide 3 (three) examples of strategies you could implement in your nursing practice in order to support the development of effective partnerships between staff, Aboriginal and/or Torres Strait Islander people and their communities.



14. Identify 3 (three) resources you could utilise to promote partnerships in promoting Aboriginal cultural safety.

In: Nursing

The following data relates to the returns of three stocks.                         Mean return       &nb

The following data relates to the returns of three stocks.

                        Mean return                 Std deviation of returns

A:                    0.05                             0.093

B:                    0.35                             0.070

C:                    0.045                           0.085

The pairwise correlation coefficients between the returns of these three stocks are:

A and B = .137, A and C = .476, B and C = .422

Compute the returns and variances of equally weighted portfolios of the following stocks.

(a) A and B

(b) A, B and C

Show your workings. Comment on the results you got for (a) and (b) from the standpoint of risk diversification.

In: Accounting

Year Blandy Gourmange Average annual return 6.4%% 9.2% Standard deviation of annual return 25.2% 38.6% Correlation...

Year Blandy Gourmange
Average annual return 6.4%% 9.2%
Standard deviation of annual return 25.2% 38.6%
Correlation between Blandy and Gourmange 0.11

You currently have $300,000. You want to invest it in the following three assets: 10-year US Treasury bond with coupon raate 3.8%, Blandy and Gourmange stocks below:

Your goal is to have the expected return of 6.8% with a minimum portfolio risk. How much money should you allocate to these three assets?

In: Finance

As people grow older, bones and joints get weaker, with arthritis being one of the common...

As people grow older, bones and joints get weaker, with arthritis being one of the common diseases of the elderly. List three types of arthritis, describe them and provide at least THREE differences between them (Hint: cause, clinical features, diagnosis, and treatment). Choose one of them and discuss its prevention and management strategy. Reminder: Show critical thinking. Support your opinions with scientific evidence (in initial response and response to your classmates). Provide citations for the information you discuss.

In: Nursing