Sheridan's Hair Salon is considering opening a new location in French Lick, California. The cost of...
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Sheridan's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $275,000. A new salon will normally generate annual revenues of $60,640, with annual expenses (including depreciation) of $39,400. At the end of 15 years, the salon will have a salvage value of $79,000. Calculate the annual rate of return on the project. Annual rate of return % Sandhill Corporation had the following transactions during its first month of operations: 1. 2. 3. 4. 5. 6. 7. 8. Journalize the above transactions for Sandhill Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) 1. No. Account Titles and Explanation 2. 3. 4. 5. 6. Purchased raw materials on account, $83,300. Raw materials of $29,400 were requisitioned to the factory.An analysis of the materials requisition slips indicated that $5,880 was classified as indirect materials. 7. Factory labor costs incurred were $171,500 of which $142,100 pertained to factory wages payable and $29,400 pertained to employer payroll taxes payable. Time tickets indicated that $142,100 was direct labor and $29,400 was indirect labor. Overhead costs incurred on account were $194,040. Manufacturing overhead was applied at the rate of 150% of direct labor cost. Goods costing $112,700 are still incomplete at the end of the month; the other goods were completed and transferred to finished Goods Inventory. Finished Goods Inventory with a cost of $98,000 was sold on account for $127,400. 8. Raw Materials Inventory Accounts Payable Work in Process Inventory Manufacturing Overhead Raw Materials Inventory Factory Labor Factory Wages Payable Employer Payroll Taxes Payable Work in Process Inventory Manufacturing Overhead Factory Labor Manufacturing Overhead Accounts Payable Work in Process Inventory Manufacturing Overhead Finished Goods Inventory Work in Process Inventory Accounts Receivable (To record sales.) Cost of Goods Sold Finished Goods Inventory (To record cost of goods sold.) Debit 83300 23520 5880 171500 142100 29400 194040 213150 266080 127400 98000 Credit 83300 29400 142100 27600 171500 194040 213150 266080 98000 Sheridan's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $275,000. A new salon will normally generate annual revenues of $60,640, with annual expenses (including depreciation) of $39,400. At the end of 15 years, the salon will have a salvage value of $79,000. Calculate the annual rate of return on the project. Annual rate of return % Sandhill Corporation had the following transactions during its first month of operations: 1. 2. 3. 4. 5. 6. 7. 8. Journalize the above transactions for Sandhill Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) 1. No. Account Titles and Explanation 2. 3. 4. 5. 6. Purchased raw materials on account, $83,300. Raw materials of $29,400 were requisitioned to the factory.An analysis of the materials requisition slips indicated that $5,880 was classified as indirect materials. 7. Factory labor costs incurred were $171,500 of which $142,100 pertained to factory wages payable and $29,400 pertained to employer payroll taxes payable. Time tickets indicated that $142,100 was direct labor and $29,400 was indirect labor. Overhead costs incurred on account were $194,040. Manufacturing overhead was applied at the rate of 150% of direct labor cost. Goods costing $112,700 are still incomplete at the end of the month; the other goods were completed and transferred to finished Goods Inventory. Finished Goods Inventory with a cost of $98,000 was sold on account for $127,400. 8. Raw Materials Inventory Accounts Payable Work in Process Inventory Manufacturing Overhead Raw Materials Inventory Factory Labor Factory Wages Payable Employer Payroll Taxes Payable Work in Process Inventory Manufacturing Overhead Factory Labor Manufacturing Overhead Accounts Payable Work in Process Inventory Manufacturing Overhead Finished Goods Inventory Work in Process Inventory Accounts Receivable (To record sales.) Cost of Goods Sold Finished Goods Inventory (To record cost of goods sold.) Debit 83300 23520 5880 171500 142100 29400 194040 213150 266080 127400 98000 Credit 83300 29400 142100 27600 171500 194040 213150 266080 98000
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Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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