Hal Smith opened Smith's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:1. Smith invested $35,000 cash in the business.2. Smith contributed $120,000 of equipment to the business.3. The company paid $4,000 cash to rent office space for the month.4. The company received $26,000 cash for repair services provided during March.5. The company paid $8,200 for salaries for the month.6. The company provided $5,000 of services to customers on account.7. The company paid cash of $700 for monthly utilities.8. The company received $5,100 cash in advance of providing repair services to a customer.9. Smith withdrew $7,000 for his personal use from the company.Based on this information, net income for March would be:
9-3 The differences in accounting for an activity in an internal service fund rather than in the general fund may be striking. A school district establishes a vehicle-repair shop that provides service to other departments, all of which are accounted for in its general fund. During its first year of operations the shop engages in the following transactions: • It purchases equipment at a cost of $24 million and issues long-term notes for the purchase price. The useful life of the equipment is eight years, with no residual value. • It purchases supplies at a cost of $4 million. Of these it uses $3 million. In its governmental funds, the district accounts for supplies on a purchases basis. • It incurs $13 million in other operating costs. • It bills other departments for $19 million. For purposes of external reporting, school district officials are considering two options: • Account for the vehicle-repair shop in an internal service fund • Account for the vehicle-repair shop in the general fund 1. For each of the following items indicate the amounts that would be reported in the year-end financial statements of : (1) the internal service fund, assuming that the school district selected the first option, and (2) the general fund, assuming that it selected the second option. a. Billings to other departments (revenues) b. Cost of supplies (expense or expenditure) c. Expenses or expenditures relating to acquisition or use of equipment d. Other operating costs e. Equipment (asset) f. Accumulated depreciation g. Inventory (asset) h. Notes payable i. Reserve for inventory 2. What would be the total expenses reported in the internal service fund, assuming that the school district selected the first option? 3. What would be the total amount of expenditures reported in the general fund, assuming that the school district: (1) selected the first option; (2) selected the second option? 4. What would be the reported revenue and expenses relating to the vehicle-repair shop in the district’s government-wide statements? Would it matter whether the district accounted for the shop in an internal service fund or in the general fund?
What is meant by "major fund reporting"? How does this differfrom reporting by fund type? For what fund types is major fundreporting required? For what fund typesis fund type reportingrequired?
Excerpts from a cost-volume-profit analysis indicate fixed costs of $49,000, a contribution margin per unit of $35, a selling price of $90, and a sales level of 4,000units. What must be the targeted level of profit?a. $140,000b. $91,000c. $81,000d. $106,000
Standard Company manufactures a product that passes through two processes: assembly and packaging. The information for the Assembly Department for Septemberfollows:Work-in-process, Sept. 1:Units (40 percent complete) 15,000Direct materials 4,000Direct labor 3,000Overhead 2,376During Sept., 100,000 units were completed and transferred to Packaging. The following costs were incurred by the Assembly Department during September:Direct materials 50,000Direct labor 30,000Overhead 12,000There were 8,000 units that were 60 percent complete for both the materials and conversion cost remaining in the Assembly Department at Sept. 30. Use the weightedaverage method and round unit costs to 4 decimal places.Required:a. Determine the equivalent units in process.b. Determine the Total Costs To Account .c. Determine the costs per equivalent unit assuming all costs are added uniformly during the assembly process.d. Determine the Accounting for Total Costs.
Beginning balancesShort-term investments $182,000Long-term investments $35,000Accounts Receivable $123,000Unearned revenue $60,000Notes payable $300,000Notes receivable $250,000Side notes:The note receivable is due in installments of $50,000, payable on each September 30. Interest is payable annually.Short-term investments consist of marketable equity securities that the company plans to sell in 2012 and $50,000 in treasury bills purchased on December 15 of thecurrent year that mature on February 15, 2012. Long-term investments consist of marketable equity securities that the company does not plan to sell in the nextyear.Unearned revenue represents customer payments for extended service contracts. Eighty percent of these contracts expire in 2012, the remainder in 2013.Notes payable consists of two notes, one for $100,000 due on January 15, 2013, and another for $200,000 due on June 30, 2014.The above accounts are the beginning balances. The Side notes are tranactions that happend that month. I need to find what would be the final balance for the balancesheet after the tranactions for the four accounts below.I'm trying to find the following:Marketable securitiesNote ReceivableUnearned revenue (current liability)Unearned revenue (Long-term liability)Need account ending balance amounts.
The materials used by the Vancouver Division of Roberts Company are currently purchased from outside suppliers at $45 per unit. These same materials are produced byRoberts' Tucson Division. The Tucson Division can produce the materials needed by the Vancouver Division at a variable cost of $30 per unit. The division is currentlyproducing 100,000 units and has capacity of 130,000 units. The two divisions have recently negotiated a transfer price of $38 per unit for 25,000 units.By how much will each division's (Tuscan and Vancouver) income increase as a result of this transfer?
On October 31, the stockholders' equity section of Huth Companyconsists of common stock $300,000 and retained earnings $900,000.Huth is considering the followingtwo courses ofaction: (1) declaring a 5% stockdividend on the 30,000, $10 parvalue shares outstanding, or (2) effecting a 2-for-1 stock splitthat will reduce par value to $5 per share. The current marketpriceis $14 per share.InstructionsComplete the tabular summary of the effects of the alternativeactions on the components of stockholders' equity, outstandingshares, and book value per share. (Ifanswer is zero, please enter0, do not leave any fields blank. Round book value per share to 2decimal places.)BeforeActionAfterstock DividendAfterstock DividendStockholders equityPaid In cashCommon StockIn excess of parvalueTotal paid-in capitalRetained earningsTotal stockholders equityOutstanding sharesBook value per share
A business operated at 100% of capacity during its first month and incurred the following costs:Production costs(10,000 units) 140,000Direct materials 40,000Direct labor 20,000variable factory overhead 4,000 204,000fixed operating expencesOperating expences:variable operating expences 34,000Fixed operating ex[ences 2,000 36,000if 2,000 units remain unsold at the the end of the month and sales total $300,000 for the month, what is the amount of the manufacturing margin that would bereported on variable costing income statementa.) 114,000 b.) 140,000 c.) 106,000 d.) 104,000
Multiple Choice:Amy, a single individual and sole shareholder of Brown Corporation, sold all of the Brown stock for $30,000. The stock basis was $150,000. Amy had owned the stock for3 years. Brown Corporation meets the section 1244 requirements. Amy hasA. a $50,000 ordinary loss and $70,000 LTCL.B. a $50,000 STCL and a $70,000 LTCL.C. a $100,000 ordinary loss and a $20,000 LTCL.D. a $100,000 LTCL and a $20,000 ordinary loss.
6/11 AJR takes clients for a float for $325 on the McKenzie, trip was booked by Travel Agent that gets a 10% commission onthe 5th of the following month.Should I do likeCash $292.5 (debit)Commission Expense $32.5(debit)Revenue $325( Credit)?Is this Correct?Im really confused about commission expense.
Please help me answer the Required section listed at the end of the report.The president of Eastvaco is considering recommending to the Board of Directors expanding into the Asian market. He suggests that the Company open a manufacturingfacility similar to the Charlotte facility. The plant would purchase its raw material from local sources and produce envelopes, paper cups and packaging. He contendssince the Charlotte plant is having difficulty obtaining recycled material and he does not want to tarnish the plant’s “green” image the Asian plant could producenon-green products. The product would be marketing heavily in China and Indonesia (where the plant would be established). Excess production would be sent back to theStates to meet market demand. The President tells you that additional funding, if needed, should be obtained from Asian sources.Required:You are asked by the President to prepare a short report regarding the following issues:a. What information regarding the Asian rim region should the President include in his report to the Board? Your answer should be specific and not in generalterms.b. Eastvaco’s strengths and weaknesses that would help and/or hinder the Asian expansion.c. Your conclusions and recommendations regarding the proposed expansion.Organize your answer by requirement. Your answer should not exceed three pages and be well written. There is no minimum page requirement. This exercise requiresresearch, imagination and writing skills.
The Dexon Company makes and sells a single product called a Mip and employs a standard costing system. The following standards have been established for one unit ofMip:Standard Quantityor Hours Standard Costper MipDirect materials 6 board feet $9.00Direct labor 0.8 hours $9.60There were no inventories of any kind on August 1. During August, the following events occurred:Purchased 15,000 board feet at the total cost of $24,000.Used 12,000 board feet to produce 2,100 Mips.Used 1,700 hours of direct labor time at a total cost of $20,060.To record the purchase of direct materials, the general ledger would include what entry to the Materials Price Variance Account?a $1,500 creditb $1,500 debitc $6,000 creditd $6,000 debit
BE-13 Assume that Best Buy made a Dec.31 adjusting entry to debit salaries and wages expense and credit salaries and wages payable for $4000 for one ot itsdepartments. On Jan. 2 best buy paid weekly payroll of $7000.Prepare a jan. 1 reversing entry.
Vaughn company sells fishing poles for 35$ each and uses the perpetual inventory system. The following information is available for the month of May: May 1 beginninginventory 20 units @ 5$: May 10 purchase 20 units @ 8$: May 15 sales 25 units: May 18 Purchase 10 [email protected] 9$: May 21 23 units A) using LIFO prepare the journal entries1A) What is the ending inventory on May 30th in units and Dollars? B) Using FIFO: What is the inventory on May 30th in units and dollars? 1B) what is the Gross profit?
a business combination in which a new corporation is created and two or more existing corporations are combined into the newly created corporation is called a:a.merger b. purchase tranaction c. pooling of interests or d. consolation.
Macro Company has the following adjusted accounts and balances at year-end (June 30,2010):Prepare adjusted trial balance for Macro Company at June 30, 2010.Accounts Payable$300.00Cash$1,020.00Prepaid Expense$40.00Accounts Receivable$550.00Contribuited Capital$300.00Salaries Expense$660.00Accrued Liabilities$150.00Depreciation Expense$110.00Sales Revenue$3,600.00Accumulated Depeciation$250.00Income Tax Expense$110.00Supplies$710.00Administrative Expense$820.00Income Tax Payable$30.00Rent Expense$400.00Buildings and Equipment$1,400.00Interest Expense$180.00Retained Earnings$120.00Interest Revenue$50.00Unearned Revenue$100.00Land$200.00Long-term Debt$1,300.00
On October 29, 2010, Lue Co. began operations by purchasing razors for resale. Lue uses the perpetual inventory method. The razors have a 90-day warranty that requiresthe company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. Thecompany's cost per new razor is $18 and its retail selling price is $80 in both 2010 and 2011. The manufacturer has advised the company to expect warranty costs toequal 7% of dollar sales. The following transactions and events occurred.2010Nov 11 Sold 75 razors for $6,000 cash30 Recognized warrenty expenses related to Novemeber sales with an adjusting entry.Dec 9 Replaced 15 razors that were returned under the warranty.16 Sold 210 razors for $16,800 cash29 Replaced 30 razors that were returned under the warranty.31 Recognized warrenty expenses related to December sales with an adjusting entry.2011Jan 5 Sold 130 razors for $10,400 cash17 Replaced 50 razors that were returned under the warranty.31 Recognized warranty expenses related to December sales with an adjusting entry.Required1.Prepare journal entries to record these transactions and adjustments for 2010 and 2011.2.How much warranty expense is reported for November 2010 and for December 2010?3.How much warranty expense is reported for January 2011?4.What is the balance of the Estimated Warranty Liability account as of December 31, 2010?5.What is the balance of the Estimated Warranty Liability account as of January 31, 2011?
Doug owned a business. Current year information is as follow:Salary Received: 67,500Advertising and Promotion: 1250Travel Expense: 7500Capital Cost Allowance on Van: 1875Interest on Van Loan: 625*The Van is used exclusively for businessDoug meets the conditions for deducting employment income expenses.Determine Doug's minimum net employwent income for the current year. Explain for conclusion.
What are the essential tenets of the scientific method, and why is the scientific method important to business research?