Appendix 21A shows how to use a scatter diagram to estimate fixed and variable costs. The cost of goods sold section under the periodic system follows. Credit to Raw Materials Inventory. According to a credit agreement with its bank, Kayak requires a minimum cash balance of $30, 000 at each month-end. 404, for any interest earned on the checking account for March. Hershey Foods and Tootsie Roll are competitors and apply similar manufacturing processes, but their equipment's life expectancies are different.
Enter these transactions in a sales journal, purchases journal, cash receipts journal, cash payments journal, or general journal (number all journal pages as page 2). C3 Explain how to account for contingent liabilities. Exercise 1-13 Identifying effects of transactions using the accounting equation P1 Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4. Owner's investments and withdrawals are not part of income. 2) Adjusted trial balance totals, $238, 207.
Both systems require separate disclosure of items when their size, nature, or frequency is important. Amounts for all asset, liability, and equity accounts can be found either in the budgets, in other calculations, or by adding amounts found there to the beginning balances. It has an estimated salvage value of $2, 000 and is expected to be used for four years and driven 60, 000 miles. This type of estimate often is used when inventory is destroyed, lost, or stolen. Jackets can be disassembled at a cost of $32, 000 and sold to a recycler for $12. Point: Amount invested includes all costs that must be incurred to get the asset in its location and ready for use. 3, this discount rate is 9%. Check (2) Rounded edge, $5. Information on these products follows. The June 30 balance sheet includes balances of $12, 900 in cash; $47, 000 in accounts receivable; $5, 100 in accounts payable; and a $2, 600 balance in loans payable. Return on investment can also be computed as profit margin times investment turnover. 1% Industry = 35%:: 65%.
Taylor arranges to purchase them on credit from CalTech Supply Company. Services to be provided next year. Solvency: Ability to meet long-term obligations and generate future revenues. The van is driven 12, 000 miles in 2017; 18, 000 miles in 2018; 21, 000 in 2019; and 10, 000 in 2020. When the merchandise is sold, its cost is transferred from the balance sheet to the income statement, where it is reported as cost of goods sold.
General Mills needs a steady supply of ingredients for processing. Larger teams will have some duplication of areas, but the straight-line choice should not be duplicated. It is especially useful for such an evaluation because it reflects budgeted revenues and costs based on the actual level of activity. Determine (a) the number of units of camera sales and (b) the dollar amount of camera sales for the month of June. On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84, 000 in assets in exchange for its common stock to launch the business. Is it possible to have under- or overapplied overhead costs in a process. Equity allocated to any preferred shares is removed before the book value of common shares is computed.
Mattingly's journal entry to record this transaction includes a. a. However, while system principles and components are fundamentally similar across the globe, culture and other realities often mean different emphases are placed on the mix of system controls. Average of 10% return? In addition, information on its direct labor and its variable and fixed overhead is shown below.
Assume a perpetual inventory system. 4% is the sum of the Social Security tax withheld, computed as 6. Nearly all hotels recycle at least one waste stream. Depreciation is computed by use of the straight-line method over the estimated useful lives of the assets, which for buildings is the lesser of 30 years or the remaining life of the underlying building; between one and five years for machinery and equipment, including product tooling and manufacturing process equipment; and the shorter of lease term or useful life for leasehold improvements. "Her words gave me the idea to create a company that would allow people to create their own customized stuffed animals. " Her company supports the Piney Woods School (one of the oldest African American boarding schools in the country), the BMI Foundation, "From Street to Skills, " and the newly renamed Cathy Hughes School of Communications at Howard University. Special journal C. Subsidiary ledger D. Accounts receivable ledger E. Accounts payable ledger F. Controlling account G. Sales journal H. Cash receipts journal I. However, you learn that three other agencies are likely to bid for the same job, and that their quotes will range from $16, 500 to $22, 000. After negotiations, McGraw agrees to accept $100 cash. Assume each of these inventory accounts began the year with a balance of zero. Indirect expenses: Incurred for joint benefit of more than one department; must be allocated. Up-to-Date This book reflects changes in accounting for revenue recognition, investments, leases, 8. July 1 Reyna Rivera invested $80, 000 cash in the company in exchange for its common stock.
Assume that Chris, Bryson, and Nick decide to expand their business with the help of general partners. Step 1: Interest Payable equals $0 (before adjustment) Step 2: Interest Payable should equal $1, 000 (not yet recorded) Step 3: Adjusting entry to get from step 1 to step 2. Assume the continuing trend of increasing costs. 620 Office salaries expense 621 Sales salaries expense 622 Salaries expense 623 _______ wages expense 624 Employee benefits expense 625 Payroll taxes expense. Prepare a five-column table that reports amounts (assuming use of straight- line depreciation) for each of the following for each of the six years: (a) pretax income before depreciation, (b) straight-line depreciation expense, (c) taxable income, (d) income taxes, and (e) net cash flow. 9 shows how these two components determine return on total assets.
Equipment purchases of $55, 000 are scheduled for June. In applying management by exception, the company investigates all variances of $400 or more. Prepare the December 30 entry for receipt of cash interest. Income merchandiser reporting, 167–168 net income, 180.
QS 5-22C Recording sales, returns, and discounts—net & perpetual methods P7 Refer to QS 5-8 and prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method and a perpetual inventory system. 5 Sales Mix Analysis. Interest revenue is on the income statement, and interest receivable is on the balance sheet as a current asset. Moreover, she is unable to meet the deficit from her personal assets, and her partners share the excess losses. Estimating Inventory Costs Inventory value can decrease or increase as it awaits sale. Then ranges of break-even points in units can be computed, using any of the three methods shown above.