Prepare the adjusting entry in journal form: Attached --- E3: Green Mountain Company of Montpelier, Vermont, publishes a monthly magazine featuring local restaurant reviews and upcoming social, cultural, and sporting events. Subscribers pay for subscriptions either one year or two years in advance. Cash received from subscri
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Circle the best answer: 7. Equipment was purchased for $100,000 and has a book value of $44,000 and a depreciable cost of $76,000. The estimated salvage value is a. $44,000. b. $56,000. c. $32,000. d. $24,000. 8. Anway Company has total cash register receipts of $7,980. This total includes a 5% sales tax. The
Prepare the necessary journal entries to record the following transactions in 2003 for Shula Company. March 1 Exchanged old store equipment and $80,000 cash for new store equipment. The old store equipment originally cost $96,000 and had a book value of $64,000 on the date of exchange. The old store equipment had a fair marke
What questions might you want answered to assist you believing that estimation of warranty liability is a science and not a number that management can estimate? What do you think a company should do if the new product is having greater than anticipated warranty expenses?
P12-3 (Accounting for Franchise, Patents, and Trade Name) Information concerning Haerhpin Corporation's intangible assets is as follows. 1. On January 1, 2004, Haerhpin signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $75,000. Of this amount, $15,000 was paid when the
Expansion, Breakeven Analysis, and Leverage Problem Analyze the following: a. The break-even point for operating expenses before and after expansion (in sales dollars). b. The degree of operating leverage before and after expansion. Assume sales of $4 million before expansion and $5 million after expansion. Use the formula in footnote 2. c. The degree of financial leverage before expansion at sales of $4 million and for all three methods of financing after expansion. Assume sales of $5 million for the second part of this question. d. Compute EPS under all three methods of financing the expansion at $5 million in sales (first year) and $9 million in sales (last year). e. What can we learn from the answer to part d about the advisability of the three methods of financing the expansion?
Highland Cable Company is considering an expansion of its facilities. Its current income statement is as follows: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000,000 Less: Variable expense (50% of sales) . . . . . . . 2,000,000 Fixed expense . . . . . . . . . . . . . . . . . . . . . . .... 1,500
A6). Set up T account and record each transaction. Determine the balance of the account. May 2 - Norman started a computer programming business; Norman's programming Service, by investing $5,000 May 5 - Purchased a computer for $2,500 in cash May 7 - purchased supplies on credit for $300 May 19 - received cash for programm
Case Study#2 The XYZ Company Katharine Rally is the vice president of operations for the XYZ Company. She oversees operations at a plant that manufactures components for hydraulic systems. Katharine is concerned about the plant's present production capability. She has reduced the decision situation to three alternatives
The fundamental accounting equation can be applied to your personal finances. For each of the following transactions, show how the accounting equation would be kept in balance. Example:
The fundamental accounting equation can be applied to your personal finances. For each of the following transactions, show how the accounting equation would be kept in balance. Example: Paid for semester's tuition (decrease assets: cash account; decrease owners' equity: expense account increases). 1. Took out a school lo
(See attached file for full problem description) Using excel, please solve the following: Frieda Millstone and her family live in Roanoke, VA and they are planning an auto vacation across Virginia, their ultimate destination being Washington DC. The family has developed the following network of possible routes and cities
A production analyst evaluates different levels of automation for quality control inspection of whole-kernel cut corn. Option 1 is to assign a number of employees along the conveyor belt to inspect the corn kernels manually as they go by and pick out small and off-colored kernels. Option 2 involves using fewer employees who only
The following are summary cash flow statements for three roughly equal size companies. A B C Cash flow from operating activities $100 $(100) $(100) Cash flow from investing activitie
Many corporate acquisitions result in losses to the acquiring firms' stockholders. Accordingly, why do firms purchase other corporations? Are they simply paying too much for the acquired corporation? A co-worker asks your opinion. Specifically state the reasons for your argument.
Deer Valley Lodge, a ski resort in the Wasatch Mountains of Utah, has plans to eventually add five new chairlifts. Suppose that one lift costs $2 million, and preparing the slope and installing the lift costs another $1.3 million. The lift will allow 300 additional skiers on the slopes, but there are only 40 days a year when the
A. Define "Earnings Surprise" b. One measure for expected earnings this quarter (t) could be earnings for the same quarter last year (t-4). List some of the disadvantages to using this measure. c. Suggest a better measure for expected earnings.
Does the factor of a residual value make sense to you? Should all assets have a residual factor or just some?
Problem 3-4A On April 1, 2005, Jennifer Stafford created a new travel agency, See-It-Now Travel. The following transactions occurred during the company's first month: (See attached file for full problem description)
Using excel, please solve the following The Skimmer Boat Company manufacturer's three kinds of molded fiberglass recreational boats-a bass fishing boat, a ski boat, and a speedboat. The profit for a bass boat is $20,500, the profit for a ski boat is $12,000, and the profit for a speedboat is $22,300. The company believes it
What potential problem might arise when comparing different firms' assets turnover ratios?
Foster Company manufactures a line of cookware that is sold in kitchen supply stores. The company's controller, Mary Smith, has just received the sales forecast for the coming year for Foster's three products: frying pans, Cutting Knives, and Expresso Machines. Foster has experienced considerable variations in sales volumes and
On the list below, describe a transaction that would have the required effect on the elements of the accounting equation. 1. increase one asset and decrease another asset. 2. Decrease an asset and decrease a liability. 3. Increase an asset and increase a liability.
What is the role of 'boot' in the exchange of assets?
I need help in doing this production Cost Report in this type of format. The following is the production and manufacturing data for April 2005. There is no beginning work in process. The Production: 12,000 units finished and transferred out; 3000 units started that are 100% complete as to materials and 40% complete as
I need help in preparing a production cost report. The following is the production and manufacturing data for April 2005. The Production: 12,000 units finished and transferred out; 3000 units started that are 100% complete as to materials and 40% complete as to conversion costs. Manufacturing Costs: Materials $36,
Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases..................... E250,000 Freight In.................. E8,000 Sales discounts............. 4,000 Purchase returns........ 7,000 Inventory Sales...............
Use the following to answer questions 1-4: Solo Company is a small merchandising firm. During the next month, the company expects to sell 500 units. The company has the following revenue and cost structure: Selling price per unit $60 Cost per unit $15 Sales com
For each of the following items, give an example of a business transaction that has the described effect on the accounting equation: · Increase an asset and increase a liability. · Increase one asset and decrease another asset. · Decrease an asset and decrease owner's equity. · Decrease an asset and decrease a liabili
Birney Company has prepared the following budget data: Sales 150,000 units Selling Price $25 per unit Variable expenses $15 per unit Fixed manufacturing expenses $800,000 F
A member of your team emailed you and stated that she believes Claire's Antiques should work to convert the fixed costs to variable costs. However, she wants to know if this is a good idea. Why or why not? If not, then when would it be a good idea? Reply to your friend with the answers to her questions. In your reply, identify t
The individual portion of this assignment is for each person to produce his/her own solution to the following. That's where I need your help! Claire's Antiques has fixed cost of $75,000 per month. Each antique has the following identifiable sales price, variable material costs, and fixed monthly costs, respectively. Sale