A company closes its accounts on December 31 each year. The company works a five-day work week and pays its employees every two weeks. On December 31, 2013, Norton accrued $4,700 of salaries payable. On January 7, 2014, the company paid salaries of $12,000 cash to employees. Prepare journal entries...
Scott Inc. closes its books on December 31 of every year. The following information on its assets was contained in the records of the business as follows: Class 1 During 2019, a new office building was acquired at a total cost of $623,000. Of this total, it is estimated that the value of the land...
Hatcher Company closes its accounts on December 31 each year. On December 31, 2018. Hatcher accrued $600 of interest income that was earned on an investment but not yet received or recorded (the investment will pay interest of $900 cash on January 31, 2019). On January 31, 2019, the company...
Sales mix, two products. The Stackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: Required1. Compute the breakeven point in units, assuming that the planned sales mix is attained.2. Compute the...
Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his divisions return on investment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $ 3,000,000...
The Enforcement Division of the Securities and Exchange Commission (SEC) is an important aspect of the corporate governance structure in the United States that is intended to protect investors. Locate the home page of the SEC by doing a general search on the title “Securities and Exchange...
The three accounts shown below appear in the general ledger of Cesar Corp. during 2010. InstructionsFrom the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on sale of equipment was$5,000.
Jason Bradley decided to buy a home for $271,000. His bank requires a 25% down payment. His attorney, has notified Jason that besides the 25% down payment there will be the following additional costs: Recording of the deed $266.00 A credit and appraisal report 1521.00 Preparation of appropriate...
In 1796, Gottfried Christoph Härtel, a German music publisher, calculated the cost of printing music using an engraved plate technology and used these estimated cost functions to make production decisions. Härtel figured that the fixed cost of printing a musical page—the cost of engraving the...
Max in problem 1 has $35 a day to spend, and he can spend as much time as he likes on his leisure pursuits. Windsurfing equipment rents for $10 an hour, and snorkeling equipment rents for $5 an hour. a. Make a table that shows the various combinations of hours spent windsurfing and snorkeling that...
Chapter 4 4.1. Manhattan Park adjusts its books cach month and closes its books on December 31 each year. The trial balance at January 31, 2010, before adjustments, follows: Debit Credit Cash. 6,600 5,400 Supplies. Unexpired Insurance Equipment. Accumulated Depreciation: Equipment. Unearned Admission Revenue 12,600 72,000 S 18,000 12,000 Capital Stock Retained Earnings, January 1, 2010. 20,000 38,200 Admissions Revenue. 27,600 Salaries Expense. Utilities Expense. Rent Expense. 8,100 5,700 5.400 S115.800 S115.800 Refer to the above data. According to attendance records, $8,200 of the Unearned Admission Revenue has been earned in January. Compute the amount of admissions revenue to be shown in the January income statement: a $35,800. b $19,400. e $8,200. d $3,800. Refer to the above data. At January 31, the amount of supplies on hand is $2,300. What amount is shown on the January income statement for supplies expense? $2,300. b $5,400. e $3,100. $7,700. 3 Refer to the above data. The equipment has an original estimated useful life of six years. Compute the book value of the equipment at January 31 after the proper January adjustment is recorded: . $1,000. b $71,000. e $53,000. $60,000. 4 Refer to the above data. Employees are owed $1,200 for services since the last payday in January to be paid the first week of February. No adjustment was made for this item. As a result of this error: - Assets at January 31 are overstated. b January net income is overstated. Liabilities at January 31 are overstated. d Owners' equity at January 31 is understated. 5. Refer to the above data. On August 1, 2009, the park purchased a 12-month insurance policy. The necessary adjusting entry at January 31 includes which of the following entries? (Hint: The company has adjusted its books on a monthly basis.) A debit to Insurance Expense for $1,050. b A credit to Unexpired Insurance for $11,550. A credit to Unexpired Insurance for $1,800. d A debit to Unexpired Insurance for $10,800. a om00 ot January
