ACCT 212: Managerial Accounting: Strategic Performance
1. Problem #1 Recording and Posting Sales Transactions Using Special Journals Olson Sala Company com...
Problem #1 Recording and Posting Sales Transactions Using Special Journals Olson Sala Company completed the following sales transactions during the June 2018. All credit sales have terms of 3/10, n/30 and all invoices are dated a Probl Recon month te The f the r term transaction date. June 1 1 Olson Sala invested P52,000 of his funds in the business. oct Sold merchandise on account to R. Bituin, P32,000. Invoice no. 377 3 Sold merchandise on account to A. Perdales, P54,000. Invoice no. cs4 Sold P46,000 of merchandise for cash. 7 Received payment from R. Bituin less discounts. 9 13 15 Received payment from A. Perdales less discounts. Sold merchandise to B. Ceballus on account, P62,000, Invoice no. 379 Borrowed P30,000 from the Monte de Santa Cruz Bank by issuing a 1 note payable due in 3 months. 0% 15 B. Ceballus returned P11,000 of merchandise from the June 13 sale. 16 Sold merchandise to A. Ramel on account, P17,000. Invoice no. 380. 21 Collected amount due from B. Ceballus less returns and discounts 29 Received P6,000 from A. Ramel. 30 Sold goods on account to P. Maritimo, P34,000. Invoice no. 381. Required 1. Record the transactions in the appropriate journals. 2. Total the sales and cash receipts journals. 3. Using the following account numbers and journal page numbers, post to the general and accounts receivable ledgers: Account No ournal Page No. Cash Accounts Réceivable Notes Payable Sala, Capital Sales Sales Returns and Allowances Sales Discounts 110 Sales 120 Cash Receipts 210 General 310 Ge 420 430 16 35 13 4. Prepare a schedule of accounts receivable
2. solve and show your solution Problem 1-10 (AICPA Adapted) Able Company had the following amounts of
debt outstanding on December 31, 2020 14% term note, due 2021 11% term note, due 2023 8% note, due in 11 equal annual principal payments plus interest beginning December 31,2021 7% guaranteed debentures, due 2022 30,000 1,070,000 1,100,000 1,000,000 Total 3,200,000 The annual sinking fund requirement on the guaranteed debentures is P40,000 per year What total amount should be reported as current liabilities on December 31, 2020? 40,000 a. 70,000 100,000 d. b. c. 130,000 Problem 1-11 (AICPA Adapted) Achilles Company reported the following liability balances on December 31, 202o: 12% note payable issued on March 1, 2019, maturing on March 1, 2021 10% note payable issued on October 1, 2019, maturing October 1, 2021 5,000,000 3,000,000 The 2020 financial statements were issued on March 31, 2021. On January 31, 2021, the entire P5,000,000 balance of the 12% note payable was refinanced through issuance of a long-term obligation payable lump sum Under the loan agreement.for the 10% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2020 What amount of the notes payable should be classified as current on December 31. 2020? 8,000,000 a. b. 5,000,000 3,000,000 C.
3. Supply the missing data in the following cases. Each case
Supply the missing data in the following cases. Each case is independent of the others.
4. Find Cash balance at year end
Davis Corporation had the following transactions in their first year of opeations:
Sales(90% collected in year) $1,500,00
Bad debt write-offs $60,000
Disbursements for costs and expenses $1,200,000
Disbursements for income taxes 90,000
Purchases of fixed assets 400,000
Depreciation of fixed assets 80,000
5. Chester Corp. ended the year carrying $20,657,000 worth of inventory. Had they sold their entire...
Chester Corp. ended the year carrying $20,657,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Chester Corp.? Select: 1 $43,704,100 $32,615,000 $20,657,000 $11,369,000 COMP-XM® INQUIRER Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Annual Report Andrews http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Page 5 Thrift Segment Analysis Page 6 Core Segment Analysis Page 7 Nano Segment Analysis Page 8 Elite Segment Analysis
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COMP-XM® INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Page 1 Front Page Page 5 Thrift Segment Analysis Page 9 Market Share Page 2 Stocks & Bonds Page 6 Core Segment Analysis Page 10 Perceptual Map Page 3 Financial Summary Page 7 Nano Segment Analysis Page 11 HR/TQM Report Page 4 Production Analysis Page 8 Elite Segment Analysis Annual Report Andrews Annual Report Baldwin Annual Report Chester Annual Report Digby PRINT 1 of 29 5/7/14, 10:18 PMCOMP-XM® INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top " Round: 2 Efren Escoto Dec. 31, 2015 Student: Efren Escoto Andrews Baldwin Chester Efren Escoto Digby Selected Financial Statistics Andrews Baldwin Chester Digby ROS 6.0% 0.6% 9.1% -0.8% Asset Turnover 1.10 0.69 1.25 0.73 ROA 6.6% 0.4% 11.4% -0.6% Leverage (Assets/Equity) 1.7 2.5 1.9 2.9 ROE 11.2% 1.0% 22.3% -1.7% Emergency Loan $0 $0 $0 $0 Sales $160,547,759 $140,706,366 $177,076,547 $150,730,295 EBIT $20,702,998 $15,517,792 $31,740,664 $13,980,967 Profits $9,586,140 $796,755 $16,169,854 ($1,220,875) Cumulative Profit $14,326,212 $4,529,356 $29,192,092 $3,361,271 SG&A / Sales 10.2% 12.1% 6.9% 9.1% Contrib. Margin % 35.6% 34.4% 33.6% 32.8% Page 1 COMP-XM® INQUIRER 2 of 29 5/7/14, 10:18 PMCOMP-XM® INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Round: 2 Efren Escoto Stocks & Bonds December 31 , 2015 Stock Market Summary Company Close Change Shares MarketCap ($M) Book Value EPS Dividend Yield P/E Andrews $60.44 ($9.85) 2,050,942 $124 $41.80 $4.67 $0.00 0.0% 12.9 Baldwin $34.33 ($9.79) 2,675,670 $92 $30.13 $0.30 $0.00 0.0% 114.9 Chester $80.51 $13.92 1,915,875 $154 $37.89 $8.44 $0.00 0.0% 9.5 Digby $26.71 ($11.09) 2,882,967 $77 $24.49 ($0.42) $0.00 0.0% -63.2 Bond Market Summary Company Series# Face Yield Close$ S&P Andrews 11.2S2020 $8,837,000 11.4% 97.83 BBB...
6. Dr. Schekter, DVM, opened a veterinary clinic on May 1, 2011. The business transactions for May...
Dr. Schekter, DVM, opened a veterinary clinic on May 1, 2011. The business transactions for May are shown below:
May 1 Dr. Schekter invested $400,000 cash in the business in exchange for 5,000 shares of capital stock.
May 4 Land and a building were purchased for $250,000. Of this amount, $70,000 applied to the land, and $180,000 to the building. A cash payment of $100,000 was made at the time of the purchase, and a note payable was issued for the remaining balance.
May 9 Medical instruments were purchased for $130,000 cash.
May 16 Office fixtures and equipment were purchased for $50,000. Dr. Schekter paid
$20,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days.
May 21 Office supplies expected to last several months were purchased for $5,000 cash.
May 24 Dr. Schekter billed clients $2,200 for services rendered. Of this amount, $1,900 was received in cash, and $300 was billed on account (due in 30 days).
May 27 A $400 invoice was received for several radio advertisements aired in May. The entire amount is due on June 5.
May 28 Received a $100 payment on the $300 account receivable recorded May 24.
May 31 Paid employees $2,800 for salaries earned in May. A partial list of account titles used by Dr. Schekter includes:
Cash Notes Payable
Accounts Receivable Accounts Payable
Office Supplies Capital Stock
Medical Instruments Veterinary Service Revenue Office Fixtures and Equipment Advertising Expense
Land Salary Expense
Building
Instructions
a. Analyze the effects that each of these transactions will have on the following six components of the company’s financial statements for the month of May. Organize your answer in tabular form, using the column headings shown below. Use I for increase, D for decrease, and NE for no effect. The May 1 transaction is provided for you:
| Income Statement |
| Balance Sheet |
Transaction May 1 | Revenue - Expenses = Net Income NE NE NE |
| Assets = Liabilities + Owners’ Equity I NE I |
b. Prepare journal entries (including explanations) for each transaction.
c. Post each transaction to the appropriate ledger accounts (use the T account format illustrated in Exhibit 3–8 on page 108).
d. Prepare a trial balance dated May 31, 2011.
e. Using figures from the trial balance prepared in part d, compute total assets, total liabilities, and owners’ equity. Did May appear to be a profitable month?
7. 10.00 points 1. Prepare depreciation schedules using Straight-line, Units-ofProduction. and Doubl...
10.00 points 1. Prepare depreciation schedules using Straight-line, Units-ofProduction. and Double Declining Balance Depreciation. Ed Finance Depreciation Excel x Font Alignment Number Conditional Format as Formatting Clipboard s MAI v X Sullivan Ranch Corporation has purchased a new tractor The following I Sullivan Ranch C has purchased a new tractor The following information is given: S 150,000 Estimated Residual 10,000 Estimated Life in years: 6 Estimated Life in hours: 1200 Actual Hours: R Year I Year 2 Year 3 Year 4 Prepare the following Straight Line depreciation schedule by using the eveel SLN FUNCTION (fv) to calculate the 13 Depreciation Expense for Years I-4 in the Depreciation Espense column. Enter formulas absolute cell references for the remaining cells. LLIVAN RANCH CORPORATION Depreciation Schedule Suaight Line Method End of year amounts Sherri Excel Simulation Difficulty: 2 Medium Learning objective 08 P1 Compute and record
8. Tech Company is a mediumLsized consumer electronics retailer. The company reported $155,000,000 in..
Tech Company is a mediumLsized consumer electronics retailer. The company reported $155,000,000 in revenues for 2007 and $110,050,000 in Costs of Goods Sold (COGS). In the same year, Tech Co. held an average of $20,000,000 in inventory.
1. How many times did Tech Co. turn its inventory in 2007?
2. Inventory cost at Tech Co. is 35 percent per year. What is the per unit inventory cost for an MP3 player sold at $50? Assume that the margin corresponds to the retailer’s average margin.
9. Which of the following gives the correct sequence of accounting process? A) Ledger, trial balance, j
Which of the following gives the correct sequence of accounting process? A) Ledger, trial balance, journal, financial statements. B) Financial statements, trial balance, ledger, journal. C) Journal, ledger, trial balance, financial statements. D) Financial statements, journal, ledger, trail balance.
2. If your trial balance has a higher debit balance than credit balance, it signifies A) assets are more than liabilities. B) a profit. C) a loss. D) an error has been made.
3. The accounting principle of offsetting revenue with the expenses incurred in producing that revenue is A) realization principle. B) time period assumption. C) matching principle. D) concept of depreciation.
4. Net income is A) the excess of debits over credits. B) the increase in owners’ equity resulting from the profitable operations of the business. C) the excess of credits of debits. D) the increase of assets of a company during a year.
5. The payback method measures A) how quickly investment dollars may be recovered. B) the cash flow from an investment. C) the economic life of an investment. D) the project profitability of an investment.
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6. Which of the following terms could be used to correctly describe the wages paid to the clerk who enters customer order information into the company’s computer system? Period Cost Product Cost (i) Yes Yes (ii) Yes No (iii) No Yes (iv) No No
A) Choice (i) B) Choice (ii) C) Choice (iii) D) Choice (iv)
7. Within the relevant range, the variable cost per unit A) remains constant as activity changes. B) increases as activity increases. C) decreases as activity increases. D) can increase or decrease as the activity changes, depending on the type of variable cost.
8. Contribution margin is the excess of revenues over A) cost of goods sold. B) manufacturing cost. C) all direct costs. D) all variable costs.
9. Capital Expenditure is recorded as A) An expense. B) An asset. C) A liability. D) Income.
10. A good system of internal control will include all of the following EXCEPT A) divide responsibility for related transactions. B) separate record keeping from custody of assets. C) maintain adequate records. D) hire more staff to supervise the work.
10. Credit notes issued for goods returned to a supplier will be entered firstly in the(A) General journ
Credit notes issued for goods returned to a supplier will be entered firstly in the(A) General journal(B) Returns inwards journal(C)Returns outwards journal(D)Petty cash journal
11. A rich relative has bequeathed you a growing perpetuity. The
A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $1000. Each year after that, you will receive a payment on the anniversary of the last payment that is 8% larger than the last payment. This pattern of payments will go on forever. If the interest rate is 12% per year,
a. what is today’s value of the bequest?
b. what is the value of the bequest immediately after the first payment is made?
12. accounting 2301
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a. | Venedict invested $60,000 cash along with office equipment valued at $25,000 in a new sole proprietorship named HV Consulting. |
b. | The company purchased land valued at $40,000 and a building valued at $160,000. The purchase is paid with $30,000 cash and a long-term note payable for $170,000. |
c. | The company purchased $2,000 of office supplies on credit. |
d. | Venedict invested her personal automobile in the company. The automobile has a value of $16,500 and is to be used exclusively in the business. |
e. | The company purchased $5,600 of additional office equipment on credit. |
f. | The company paid $1,800 cash salary to an assistant. |
g. | The company provided services to a client and collected $8,000 cash. |
h. | The company paid $635 cash for this month's utilities. |
i. | The company paid $2,000 cash to settle the account payable created in transaction c. |
j. | The company purchased $20,300 of new office equipment by paying $20,300 cash. |
k. | The company completed $6,250 of services for a client, who must pay within 30 days. |
l. | The company paid $1,800 cash salary to an assistant. |
m. | The company received $4,000 cash in partial payment on the receivable created in transaction k. |
n. | Venedict withdrew $2,800 cash from the company for personal use. |
Required: | |
1. | Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); H. Venedict, Capital (301); H. Venedict, Withdrawals (302); Fees Earned (402); Salaries Expense (601); and Utilities Expense (602). |
13. 1 A minimum number of management layers results in a ___________ organization structure. 2 Giving...
1 A minimum number of management layers results in a ___________ organization structure.
2 Giving employees and their managers more responsibility and authority is known as ___________.
3 Outsourcing computing resources to a third party is known as ___________.
4 The radical redesign of business processes is known as ___________.
14. Job costing, accounting for manufacturing overhead
Job costing, accounting for manufacturing overhead, budgeted rates. The Solomon Company uses a job-costing system at its Dover, Delaware, plant. The plant has a Machining Department and a Finishing Department. Solomon uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the Machining Department, with machine hours as the allocation base, and the Finishing Department, with direct manufacturing labor costs as the allocation base). The 2009 budget for the plant is as follows:
1. Prepare an overview diagram of Solomon’s job-costing system.
2. What is the budgeted overhead rate in the Machining Department In the Finishing Department?
3. During the month of January, the job-cost record for Job 431 shows the following:
Compute the total manufacturing overhead allocated to Job 43.
4. Assuming that Job 431 consisted of 200 units of product, what is the cost per unit?
5. Amounts at the end of 2009 are as follows:
Compute the under- or over allocated manufacturing overhead for each department and for the Dover plant as a whole.
6. Why might Solomon use two different manufacturing overhead cost pools in its job-costingsystem?
15. Which of the following is not a derivative instrument?
Which of the following is not a derivative instrument?
- Futures contracts.
- Credit indexed contracts.
- Interest rate swaps.
- Variable annuity contracts.