Topics: Accounting Information Systems and the Accountant
1. Lita Lopez started Biz Consulting, a new business, and completed the following transactions during..
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invests $60,000 cash and office equipment valued at $34,000 in the company in exchange for its common stock. b. The company purchased a $308,000 building to use as an office. Biz Consulting paid $45,000 in cash and signed a note payable promising to pay the $263,000 balance over the next 10 years.
Document Preview:
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a.Lita Lopez invests $60,000 cash and office equipment valued at $34,000 in the company in exchange for its common stock.b.The company purchased a $308,000 building to use as an office. Biz Consulting paid $45,000 in cash and signed a note payable promising to pay the $263,000 balance over the next 10 years.c.The company purchased office equipment for $5,700 cash.d.The company purchased $3,600 of office supplies and $1,600 of office equipment on credit.e.The company paid a local newspaper $870 cash for printing an announcement of the office’s opening.f.The company completed a financial plan for a client and billed that client $4,400 for the service.g.The company designed a financial plan for another client and immediately collected a $8,600 cash fee.h.The company paid $1,700 cash in dividends to the owner (sole shareholder).i.The company received $3,400 cash as partial payment from the client described in transaction f.j.The company made a partial payment of $800 cash on the equipment purchased in transaction d.k.The company paid $2,400 cash for the office secretary’s wages for this period. Required:2.Enter the amount of each transaction on individual items of the accounting equation. (Reductions in account balances should be indicated with a minus sign.)Cash +Receivable +Supplies +Equipment +Building =Payable +Payable +Common Stock -Dividends +Revenues -Expenses Cash + Recievable + Supplies + Equipment + Building = Payable + Payable + Common stock - Dividends + Revenues -Expenses
2. 54) Which of the following is an advantage of a private cloud in an organization? A) It reduces the.
54) Which of the following is an advantage of a private cloud in an organization?
A) It reduces the complexity involved in using other publicly available cloud services.
B) It eliminates the need to use an additional secure network to access this cloud from outside the organization.
C) It allows the organization to repurpose its idle servers for use to other organizations.
D) It allows the organization to manage its servers with elastic load balancing.
55) Which of the following statements is true of a virtual private cloud (VPC)?
A) A VPC does not make use of a virtual private network.
B) A VPC generally stores an organization's most sensitive data.
C) A VPC can be accessed only from within an organization.
D) A VPC can be built on a public cloud infrastructure.
56) Which of the following is a difference between a virtual private network (VPN) and a virtual private cloud (VPC)?
A) A VPC uses encrypted connections between the users and its server, while a VPN does not use such secure connections.
B) A VPC can be accessed over the Internet, while a VPN cannot be accessed over the Internet.
C) A VPC does not facilitate data storage, while a VPN allows the storage of a user's most important data.
D) A VPC provides the advantages of cloud storage, but a VPN by itself cannot provide these advantages.
57) Which of the following is an advantage of using a private cloud over a virtual private cloud (VPC)?
A) Unlike a VPC, the infrastructure required for a private cloud can be built and operated easily.
B) Unlike a VPC, a private cloud can be created and used without the Internet.
C) Unlike a VPC, a private cloud can be built on top of a public cloud infrastructure.
D) Unlike a VPC, a private cloud does not require permission from regulating bodies to host sensitive data.
58) A tunnel is a virtual, private pathway over a public or shared network from the virtual private network (VPN) client to the VPN server.
59) A virtual private network uses the Internet to create the appearance of private, secure connections.
60) A virtual private network (VPN) uses encryption and decryption to protect VPN communications from snooping.
61) A virtual private cloud allows organizations to gain the advantages of cloud storage for the portion of data that need not be physically controlled.
3. The transactions completed by PS Music during June 2016 were described at the end of Chapter 1....
The transactions completed by PS Music during June 2016 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business’s operations:
July 1. Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing $5,000 in PS Music’s checking account.
1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July,
$1,750.
1. Paid a premium of $2,700 for a comprehensive insurance policy covering liabil- ity, theft, and fire. The policy covers a one-year period.
2. Received $1,000 on account.
3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600. Any additional hours beyond 80 will be billed to KXMD at $40 per hour. In accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months.
3. Paid $250 on account.
4. Paid an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.)
5. Purchased office equipment on account from Office Mart, $7,500.
8. Paid for a newspaper advertisement, $200.
11. Received $1,000 for serving as a disc jockey for a party.
13. Paid $700 to a local audio electronics store for rental of digital recording equip- ment.
14. Paid wages of $1,200 to receptionist and part-time assistant.
Enter the following transactions on Page 2 of the two-column journal:
July 16. Received $2,000 for serving as a disc jockey for a wedding reception.
18. Purchased supplies on account, $850.
21. Paid $620 to Upload Music for use of its current music demos in making vari- ous music sets.
22. Paid $800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July.
23. Served as disc jockey for a party for $2,500. Received $750, with the remainder due August 4, 2016.
27. Paid electric bill, $915.
28. Paid wages of $1,200 to receptionist and part-time assistant.
29. Paid miscellaneous expenses, $540.
30. Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 2016.
31. Received $3,000 for serving as a disc jockey for a party.
31. Paid $1,400 royalties (music expense) to National Music Clearing for use of various artists’ music during July.
31. Paid dividends, $1,250.
PS Music’s chart of accounts and the balance of accounts as of July 1, 2016 (all normal balances), are as follows:
11 Cash | $3,920 | 41 Fees Earned | $6,200 |
12 Accounts Receivable | 1,000 | 50 Wages Expense | 400 |
14 Supplies | 170 | 51 Office Rent Expense | 800 |
15 Prepaid Insurance | — | 52 Equipment Rent Expense | 675 |
17 Office Equipment | — | 53 Utilities Expense | 300 |
21 Accounts Payable | 250 | 54 Music Expense | 1,590 |
23 Unearned Revenue | — | 55 Advertising Expense | 500 |
31 Common Stock | 4,000 | 56 Supplies Expense | 180 |
33 Dividends
instructions | 500 | 59 Miscellaneous Expense | 415 |
1. Enter the July 1, 2016, account balances in the appropriate balance column of a four- column account. Write Balance in the Item column, and place a check mark (ü) in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.)
2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations.
3. Post the journal to the ledger, extending the account balance to the appropriate bal- ance column after each posting.
4. Prepare an unadjusted trial balance as of July 31, 2016.
4. Minnesota Office Products (MOP) produces three different paper p
Minnesota Office Products (MOP) produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2011 are $150 million ($15 million of which are fixed). This total amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for July 2011 are as follows:
Required
1. Compute the manufacturing cost per unit for each product produced in July 2011.
2. Suppose that in August 2011, production was 150 million units of Supreme, 190 million units of Deluxe, and 220 million units of Regular. Why might the July 2011 information on manufacturing cost per unit be misleading when predicting total manufacturing costs in August2011?
5. At the end of May the following adjustment data were assembled. Analyze and use these data to com...
At the end of May the following adjustment data were assembled. Analyze and use these data to complete an adjusted Trial balance.
a) Insurance expired during May is $275
b) Supplies on hand on May are $715
Depreciation of Office equipment for May $330
d) Accrued receptionist salary on May 31 is $325
e) Rent expired during May is $1,600
f) unearned fees on May 31 are $3210
Unadjusted Trial Balance May 31, 2014 Account Title Debit Credit SD 44195 Cash 8080 Accounts Receivable 2085 Supplies Prepaid Rent 3200 1500 Prepaid Insurance v 14500 Office Equipment Accumulated Depreciation 330 895 Accounts Payable Salaries Payable 7000 Unearned Fees 42300 Kelly Pitney, Capital V 10500 Kelly Pitney, Drawing 36210 Fees Earned 1380 Salary Expense Rent Expense Supplies Expense Depreciation Expense Insurance Expense V 1295 Miscellaneous Expense 86735 (V 86735
6. Which of the following is an EOC function?A. Coordinating plans and determining resource needs B....
Which of the following is an EOC function?A. Coordinating plans and determining resource needs B. Collecting, analyzing, and sharing information
C. All of the above D. Providing coordination and policy direction
7. Silven Industries, which manufactures and sells a highly successful line of summer lotions and in...
Need help with entire question please. This is 1 whole problem. Please don't just answer 1/2.
Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chapped skin After considerable research, a winter products line has been developed. However, Silven's president has decided to introduce only one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated The product selected (called Chap-Off) is a lip balm that will be sold in a lipstick-type tube. The product will be sold to wholesalers in boxes of 24 tubes for $8 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $60,000 charge for fixed manufacturing overhead will be absorbed by the product under the companys absorption costing system. Using the estimated sales and production of 120,000 boxes of Chap-off, the Accounting Department has developed the following cost per box: Direct materials $3.90 Direct labor 2.10 Manufacturing overhead 1.50 Total cost $7.50 The costs above include costs for producing both the lip balm and the tube that contains it. As an alternative to making the tubes, Silven has approached a supplier to discuss the possibility of purchasing the tubes for Chap-Off. The purchase price of the empty tubes from the supplier would be $1.35 per box of 24 tubes. If Silven Industries accepts the purchase proposal, direct labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and direct materials costs would be reduced by 25% Required la. Calculate the total variable cost of producing one box of Chap-Off. Do not round intermediate calculations. Round your answer to 2 decimal places.) otal variable cost per box 1 b. Assume that the tubes for the Chap-Off are purchased from the outside supplier, calculate the total variable cost of producing one b of Chap-Off. (Do not round intermediate calculations. Round your answer to 2 decimal places.) otal variable cost per box
8. Which of the following statements about a journal is false?
Which of the following statements about a journal is false?
a. It is not a book of original entry.
b. It provides a chronological record of transactions.
c. It helps to locate errors because the debit and credit amounts for each entry can be readily compared.
d. It discloses in one place the complete effect of a transaction.
9. On January 1, 2006, Polk Corp. and Strass Corp. had condensed balance sheets as follows
Items 1 through 5 are based on the following:
On January 1, 2006, Polk Corp. and Strass Corp. had condensed balance sheets as follows:
Polk | Strass | ||
Current assets | $ 70,000 | $20,000 | |
Noncurrent assets | 90,000 | 40,000 | |
Total assets | $160,000 | $60,000 | |
Current liabilities | $ 30,000 | $10,000 | |
Long-term debt | 50,000 | -- | |
Stockholders’ equity | 80,000 | 50,000 | |
Total liabilities and stockholders’ equity | $160,000 | $60,000 | |
On January 2, 2006, Polk borrowed $60,000 and used the proceeds to purchase 90% of the outstanding common shares of Strass. This debt is payable in ten equal annual principal payments, plus interest, beginning December 30, 2006. The excess cost of the investment over Strass’ book value of acquired net assets should be allocated 60% to inventory and 40% to goodwill.
On Polk’s January 2, 2006 consolidated balance sheet,
Current assets should be
- $99,000
- $96,000
- $90,000
- $79,000
Noncurrent assets should be
- $130,000
- $134,000
- $136,000
- $140,000
Current liabilities should be
- $50,000
- $46,000
- $40,000
- $30,000
Noncurrent liabilities including minority interests should be
- $115,000
- $109,000
- $104,000
- $ 55,000
Stockholders’ equity should be
- $ 80,000
- $ 85,000
- $ 90,000
- $130,000
10. Problem 4-5A (Part Level Submission) Anya Clark opened Anya's Cleaning Service on July 1, 2017. D...
Problem 4-5A (Part Level Submission) Anya Clark opened Anya's Cleaning Service on July 1, 2017. During July, the following transactions were completed. July 1 Anya invested $20,100 cash in the business. 1 Purchased used truck for $9,100, paying $3,800 cash and the balance on account. 3 Purchased cleaning supplies for $1,900 on account. 5 Paid $1,920 cash on 1-year insurance policy effective July 1 12 Billed customers $4,600 for cleaning services. 18 Paid $1,600 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies. 20 Paid $2,600 cash for employee salaries. 21 Collected $3,300 cash from customers billed on July 12 25 Billed customers $6,100 for cleaning services. 31 Paid $350 for the monthly gasoline bill for the truck. 31 Withdrew $5,700 cash for personal use.