During September 20Y2, Lisa managed the tennis courts and entered into the following transactions:

9/1 Opened a business account by contributing $950.
9/1 Paid $300 for tennis supplies (practice tennis balls, etc.).
9/1 Paid $275 for the rental of video equipment to be used in offering lessons during September.
9/1 Arranged for the rental of two ball machines during September for $250. Paid $100 in advance, with the remaining $150 to be paid October 1.
9/30 Received $1,750 for lessons given during September.
9/30 Received $600 in fees from the use of the ball machines during September.
9/30 Paid $800 for salaries of part-time employees who answered the telephone and took reservations while Lisa was giving lessons.
9/30 Paid $290 for miscellaneous expenses.
9/30 Received $1,300 (325 per week) from the club for managing the tennis courts during September.
9/30 Determined that the cost of supplies on hand at the end of the month totaled $180; therefore, the cost of supplies used was $120.
9/30 Withdrew $400 (similar to Dividend) for personal use on September 30.

Journalize entries for above transactions.

Answer:

9/1 Opened a business account by contributing $950.

Dr Cash 950

    Cr Lisa, capital, 950

9/1 Paid $300 for tennis supplies (practice tennis balls, etc.).

Dr Supplies 300

    Cr Cash 300

9/1 Paid $275 for the rental of video equipment to be used in offering lessons during September.

Dr Rent expense 275

    Cr Cash 275

9/1 Arranged for the rental of two ball machines during September for $250. Paid $100 in advance, with the remaining $150 to be paid October 1.

Dr Rental expense 250

    Cr Cash 100

    Cr Accounts receivable 150

9/30 Received $1,750 for lessons given during September.

Dr Cash 1,750

    Cr Fees earned 1,750

9/30 Received $600 in fees from the use of the ball machines during September.

Dr Cash 600

    Cr  Fees earned 600

9/30 Paid $800 for salaries of part-time employees who answered the telephone and took reservations while Lisa was giving lessons.

Dr Wages expense 800

    Cr Cash 800

9/30 Paid $290 for miscellaneous expenses.

Dr Miscellaneous expenses 290

    Cr Cash 290

9/30 Received $1,300 (325 per week) from the club for managing the tennis courts during September.

Dr Cash 1,300

    Cr  Fees earned 1,300

9/30 Determined that the cost of supplies on hand at the end of the month totaled $180; therefore, the cost of supplies used was $120.

Dr Supplies expense 120

    Cr Supplies 120

9/30 Withdrew $400 (similar to Dividend) for personal use on September 30.

Dr Lisa, drawings 400

    Cr cash 400

The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $18,500,000 $20,000,000 Beginning inventories 940,000 860,000 Cost of goods sold 9,270,000 10,800,000 Ending inventories 1,120,000 940,000 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inv

As a practicing engineer, you have been assigned by your company to work in a country where bribery is an almost universal practice, and virtually essential to get government permission for construction permits and other items your company needs to do business. Your direct supervisor explains this to you and asks you to deliver a bribe to a local official. Ethically speaking:______.

At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $29,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $207,000 (its fair value) and was expected to have a useful life of 12 years with no salvage value at the end of its life. (Because the lease term is only 9 years, the asset does have an expected residual value at the end of the lease term of $94,113.) Crescent seeks a 12% return on its lease investments. By this arrangement, the lease is deemed to be a finance lease. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to the nearest whole dollar amount.)
Required:
1. What will be the effect of the lease on Café Med's earnings for the first year (ignore taxes)? (Enter decreases with negative sign.)
2. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Café Med (ignore taxes)?

The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below.

Accounts Debit Credit
Cash $9,100
Accounts Receivable 14,100
Prepaid Rent 6,120
Supplies 3,100
Deferred Revenue $2,100
Common Stock 11,000
Retained Earnings 5,100
Service Revenue 44,720
Salaries Expense 30,500
$62,920 $62,920

At year-end, the following additional information is available:

a. The balance of Prepaid Rent, $6,120, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022.
b. The balance of Deferred Revenue, $2,100, represents payment in advance from a customer. By the end of the year, $525 of the services have been provided.
c. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2022.
d. The balance of Supplies, $3,100, represents the amount of office supplies on hand at the beginning of the year of $1,250 plus an additional $1,850 purchased throughout 2021. By the end of 2021, only $710 of supplies remains.

Required:
a. Update account balances for the year-end information by recording any necessary adjusting entries. No prior adjustments have been made in 2018.
b. Prepare an adjusted trial balance as of December 31, 2018.

Quarter ($000) Net Income Operating Activities, Cash Flows Provided By or Used In Depreciation Adjustments to net income Changes in accounts receivable Changes in liabilities Changes in inventories Changes in other operating activities Total Cash Flow from Operating Activities Investing Activities, Cash Flows Provided By or Used In Capital expenditures Investments Other cash flows from investing activities Total Cash Flows from Investing Activities Financing Activities, Cash Flows Provided By or Used In Dividends paid Sale or purchase of stock Net borrowings Other cash flows from financing activities Total Cash Flows from Financing Activities Effect of exchange rate changes Change in Cash and Cash Equivalents 4 1 276625 229066 194168 218413 73213 74652 48804 (48,073) 69887 75664 14316 (13,131) 「(53,210) 100771 (84,594) 201724 (38,788) 82887[(111,619) (114,134) 40064 57571 (195,240) 84983 12706 (2,119) 176461(26,473) 227333 (13,837) 717808 254475 (82,478) (5,440) (108,828) (196,746) 「(41,702) 「(100,009) (69,286) 5550 (93,203)(48,401) 847 (57,966) 20714 (35,305) 「251,178) (119,369) 515684114657(283,689) 462945(13,401) 「(526,169) (96,973) (131,360) (131,285) (121,425) 78806 1175((76,853)(79,248) 64806 (182) 2052 (46,258) 39724 (96,143) 6781 68140 (119,984) (503) 32897 373551 (63,046)[(26,642)See the cash flow statement LOADING... ​(all values in thousands of​ dollars) (see MyLab Finance for the data in Excel​ format): a. What were the​ company's cumulative earnings over these four​ quarters? What were its cumulative cash flows from operating​ activities? b. What fraction of the cash from operating activities was used for investment over the four​ quarters? c. What fraction of the cash from operating activities was used for financing activities over the four​ quarters?

The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY).
Requirement:
1. Suppose that today you buy a bond with an annual coupon rate of 8% for $1,170. The bond has 16 years to maturity. What rate of return do you expect to earn on your investment? Assume a par value of $1,000.
2. Two years from now, the YTM on your bond has declined by 1%, and you decide to sell.
A) What price will your bond sell for?
B) What is the HPY on your investment?

Assume that you are 30 years old today, and that you are planning on retirement at age 65. You expect your salary to be $42,000 one year from now and you also expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 9%.

Required:
a. The present value (PV) (at age 30) of your retirement savings is ________.
b. A rich donor gives a hospital $1,040,000 one year from today. Each year after that, the hospital will receive a payment 6% larger than the previous payment, with the last payment occurring in ten years' time. What is the present value (PV) of this donation, given that the interest rate is
11%?
c. If the current rate of interest is 8%, then the present value (PV) of an investment that pays $1200 per year and lasts 24 years is closest to ________.

Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2018 with an inventory of $255,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows.Year, Ended December 31 Ending Inventory at Year-End Costs Cost. Index (Relative to Base Year)2018 $319,360 1.032019 406,560 1.122020 384,770 1.092021 372,750 1.05RequiredCalculate inventory amounts at the end of each year.

Anita and Barry were negotiating, and Anita's attorney prepared a long and carefully drawn contract, which was given to Barry for examination. Five days later and prior to its execution, Barry's eyes became so infected that it was impossible for him to read. Ten days thereafter and during the continuance of the illness, Anita called upon Barry and urged him to sign the contract, telling him that time was running out. Barry signed the contract despite the fact he was unable to read it. In a subsequent action by Anita, Barry claimed that the contract was not binding upon him because it was impossible for him to read and he did not know what it contained prior to his signing it. Should Barry be held to the contract?

Job Cost Journal Entries and T Accounts
Following are certain operating data for Redwood Manufacturing Company for January 2016:
Materials Inventory Work in Process Inventory Finished Goods Inventory
Beginning inventory $40,000 $50,000 $80,000
Ending inventory 70,000 60,000 56,000
Total sales were $2,000,000, on which the company earned a 40% gross profit. Redwood uses a predetermined manufacturing overhead rate of 110% of direct labor costs. Manufacturing overhead applied was $396,000. Exclusive of indirect material used, total manufacturing overhead incurred was $300,000; it was under-applied by $24,000.
Required
Compute the following items. (Set up T accounts for Materials Inventory, Work in Process Inventory, Finished Goods Inventory, and Manufacturing Overhead; fill in the known amounts; and then use the normal relationships among the various accounts to compute the unknown amounts.)

An investment will pay you $80,000 in 10 years. If the appropriate discount rate is 9 percent compounded daily, what is the present value? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Causwell Company began 2021 with 18,000 units of inventory on hand. The cost of each unit was $5.00. During 2021 an additional 38,000 units were purchased at a single unit cost, and 28,000 units remained on hand at the end of 2021 (28,000 units therefore were sold during 2021). Causwell uses a periodic inventory system. Cost of goods sold for 2021, applying the average cost method, is $166,600. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.

Required:
a. Determine the cost of goods sold for 2018 using the FIFO method. [Hint: Determine the cost per unit of 2018 purchases.]
b. Determine the cost of goods sold for 2018 using the LIFO method. (Do not round intermediate calculations.)

A organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure is referred to as a

Prepare summary journal entries to record the following transactions for a company in its first month of operations.

a. Raw materials purchased on account, $90,000.
b. Direct materials used in production, $39,500.
c. Indirect materials used in production, $18,000. Paid cash for factory payroll, $60,000.
d. Of this total, $40,000 is for direct labor and $20,000 is for indirect labor.
e, Paid cash for other actual overhead costs, $7,625.
f. Applied overhead at the rate of 125% of direct labor cost.
g. Transferred cost of jobs completed to finished goods, $65,000.
h. Sold jobs on account for $92,800. The jobs had a cost of $65,000.

Jacob is a nutritionalist who is in the process of setting a large group practice. He expects that the group will have gross receipts of $20,000,000 in the first year and grow by 4% each year. In addition to providing nutritional counseling services the group will sell vitamins, DVDs, and small exercise equipment such as hand weights and mats for stretching The revenues for these products is expected to be about 5% of the total revenue earned each year. Jacob's group would like to use the cash method of accounting if allowed.

Required:
Prepare a memo discussing whether Jacob's group will be able to use the cash method of accounting.

A study conducted by Yahoo! revealed that chocolate is the most popular flavor of ice cream in America. Now, Suppose a severe drought in the Midwest causes dairy farmers to reduce the number of milk-producing cattle in their herds by a third. These dairy farmers supply cream that is used to manufacture chocolate ice cream. Indicate the possible effects on demand, supply, or both, as well as the equilibrium price and quantity of chocolate ice cream.
a. The demand curve for chocolate ice cream
a. does not shift
b. shifts to the left
c. shifts to the right
b. The supply curve for chocolate ice cream
a. shifts to the left
b. does not shift
c. shifts to the right
c. The equilibrium price of chocolate ice cream
a. could increase or dereease.
b. decreases.
c. increases
d. The equilibrum quantity of chocolate ice cream
a. decreases
b. increases.
c. could increase or decrease.

After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $11,500 price, but financing through the dealer is no bargain. He has $1,500 cash for a down payment, so he needs an $10,000 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $10,000 for a period of four years at an add-on interest rate of 11 percent.
What is the total intetrest on Richard's loan?
What is the total cost of the car?
What is the monthly payment ?
What is the annual percentage rate?

Canterbury Co. issues a discounted, non-interest-bearing note in exchange for borrowed funds. Choose whether the cash received will be higher or lower than the face value of the note, and whether the effective annual interest rate will be higher or lower than the discount rate: Cash Received vs. Face Value of Note Effective Rate vs. Discount Rate

a. Higher Lower
b. Lower Higher
c. Lower Lower
d. Higher Higher

For a troubled debt restructuring involving only a modification of terms, which of the following items specified by the new terms would be compared to the carrying amount of the debt to determine if the debtor should report a gain on restructuring?

a. The total future cash payments.
b. The amount of future cash payments designated as principal repayments.
c. The present value of the debt at the original interest rate.
d. The present value of the debt at the modified interest rate.

Brilliant Accents Company manufactures and sells three styles of kitchen faucets: Brass, Chrome, and White. Production takes 25, 25, and 10 machine hours to manufacture 1000-unit batches of brass, chrome and white faucets, respectively. The following additional data apply:
BRASS CHROME WHITE
Projected sales in units 30,000 50,000 40,000
Per unit data: Selling price $40 $20 $30
Direct materials $8 $4 $8
Direct labor $15 $3 $9
Overhead cost based on
direct labor hours
(traditional system) $12 $3 $9
Hours per 1000-unit batch:
Direct labor hours 40 10 30
Machine hours 25 25 10
Setup hours 1.0 0.5 1.0
Inspection hours 30 20 20
Total overhead costs and activity levels for the year are estimated as follows:
Activity Overhead costs Activity levels
Direct Labor hours 2,900 hours
Machine hours 2,400 hours
Setups $465,500 95 setup hours
Inspections $405,000 2,700 inspection hours $870,500
1. Using the ABC system, for each style of faucet, compute the estimated overhead cost per unit.
2. Compute the estimated operating profit per unit.

The market price of cheeseburgers in a college town decreased recently, and the students in an economics class are debating the cause of the price decrease. Some students suggest that the price decreased because the price of beef, an important ingredient for making cheeseburgers, has decreased. Other students attribute the decrease in the price of cheeseburgers to a recent increase in the price of french fries. Everyone agrees that the increase in the price of french fries was caused by a recent increase in the price of potatoes, which are not generally used in making cheeseburgers.

The second group of students attributes the decrease in the price of cheeseburgers to the decrease in the price of calzones at local pizza parlors.

Suppose that both of the events you have just analyzed are partly responsible for the decrease in the price of cheeseburgers. Based on your analsis of the explanations offered by the two groups of students, how would you figure out which of the possible causes was the dominant cause of the decrease in the price of cheeseburgers?

a. If the equilibrium quantity of cheeseburgers increases, then the demand shift in the market for cheeseburgers must have been larger than the supply shift.
b. Whichever change occurred first must have been the primary cause of the change in the price of cheeseburgers.
c. If the equilibrium quantity of cheeseburgers increases, then the supply shift in the market for cheeseburgers must have been larger than the demand shift.
d. If the price decrease was small, then the supply shift in the market for cheeseburgers must have been larger than the demand shift.

Pun Corporation concluded the fair value of Slender Company was $67,000 and paid that amount to acquire its net assets. Slender reported assets with a book value of $53,000 and fair value of $64,000 and liabilities with a book value and fair value of $21,000 on the date of combination. Pun also paid $14,000 to a search firm for finder’s fees related to the acquisition.

Required:
Prepare the journal entries to be made by Pun to record its investment in Slender and its payment of the finder's fees.

Culture and Ethical Business Practices
The business world is becoming increasingly global due to advances in technology and travel. This means that businesspeople must know how to navigate intercultural ethics, not just the ethics of their particular country. To better prepare for the ethical challenges of a global marketplace, you should broaden your cultural awareness and familiarize yourself with strategies that help you adhere to legal and ethical guidelines.
Read the following passages.
You are an HR representative for a global shipping company. Your supervisor asks you to contribute ideas via e-mail on possible discussion topics for the next HR meeting on intercultural ethics.
What discussion topics could you suggest?
A. Legal requirements, company policies, and conflicting cultural norms.
B. Ways to avoid being caught when participating in unscrupulous business practices abroad
C. Organizational mapping.
During a conference call with the corporate office, you are told by a senior executive that you will be going abroad in the next week to finalize a large account. He informs you that your expense account for this trip will be larger because, in order for the deal to go through, you must pay the top executives $5,000 each.
How do you respond to this information?
A. Accuse the senior executive of global corruption and read him the Sarbanes-Oxley Act of 2002.
B. Clarify the situation, and ask specific questions about the overseas company's cultural and ethical practices. Also, ask what your company policies are regarding intercultural ethics.
C. Suggest that you pay just one executive this time around and save the company money.
Rather than determining whether a culture has good or bad ethics, it is best to look for practical solutions to the cultural challenges of doing global business.
Which of the following suggestions acknowledge different values and respect the need for moral initiative?
A. Refuse alternatives.
B. Avoid reflex judgments.
C. Don't rationalize shady decisions.
D. Embrace transparency.

Garrison Corporation was closing its books on May 31, 2020. Garrison's accountant prepared a bank reconciliation as of May 31, 2020, and has found the following possible reconciling items between its book balance and its cash balance per the bank: Garrison's book balance 16,280 Outstanding checks 960 Customer's NSF check returned by the bank 190 Interest earned on checking account 160 In the search for reconciling items, the accountant also discovered that Garrison made an error in recording a customer’s check: the amount was recorded in cash receipts as $410; the bank recorded the amount correctly as $920. Required: What amount will Garrison report as its adjusted cash balance at May 31, 2020?

Company sells a product for per unit. Variable costs are per​ unit, and fixed costs are per month. The company expects to sell units in . Calculate the contribution margin per​ unit, in​ total, and as a ratio.

Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Suppose that Schell has conducted further research into its overhead and potential cost drivers. As a result, the company has compiled the following detailed information, breaking total overhead into three cost pools:Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Standard Floor Mat Line Quantity/Amount Consumed by Deluxe Floor Mat LineMaterial handling Number of moves $3,750 30 moves 70 movesQuality control Number of inspections $13,860 400 inspections 600 inspectionsMachine maintenance Number of machine hours $21,450 4,150 machine hours 3,000 machine hoursRequired:1. Calculate the activity rates for each cost pool assuming Schell uses an ABC system.Activity RateMaterial Handling _____ per Material MoveQuality Control _____ per InspectionMaintenance _____ per Machine Hour2. Calculate the amount of overhead that Schell will assign to the Standard floor mat line.3. Determine the amount of overhead Schell will assign to the Deluxe product line.

Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently.

a. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $22,000 on the purchase date and the balance in five annual installments of $5,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment.

b. Johnstone needs to accumulate sufficient funds to pay a S400,000 debt that comes due on December 31, 2023. The company will accumulate the funds by making five equal annual deposits to an account paying 6% interest compounded annually. Determine the required annual deposit if the first deposit is made on December 31, 2018.
c. On January 1, 2018, Johnstone leased an office building. Terms of the lease require Johnstone to make 20 annual lease payments of $120,000 beginning on January 1, 2018. A 10% interest rate is implicit in the lease agreement. At what amount should Johnstone record the lease liability on January 1, 2018, before any lease payments are made?

Classifications on Balance SheetThe balance sheet contains the following major sections:Current assetsLong-term investmentsProperty, plant, and equipmentIntangible assetsOther assetsCurrent liabilitiesLong-term liabilitiesContributed capitalRetained earningsAccumulated other comprehensive incomeRequired:The following is a list of accounts. Using the letters A through J, indicate in which section of the balance sheet each of the accounts would be classified. If an account does not belong under one of the sections listed, select "Not under any of the choices" from the classification drop down box. For all accounts, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet by selecting "yes" from the second drop down box, otherwise select "no".Account Classification Contra orDeducted (Yes/No)1. Cash 2. Bonds Payable (due in 8 years) 3. Machinery 4. Deficit 5. Unexpired Insurance 6. Franchise (net) 7. Fund to Retire Preferred Stock 8. Current Portion of Mortgage Payable 9. Accumulated Depreciation 10. Copyrights 11. Investment in Held-to-Maturity Bonds 12. Allowance for Doubtful Accounts 13. Notes Receivable (due in 3 years) 14. Property Taxes Payable 15. Deferred Taxes Payable 16. Additional Paid-in Capital on Preferred Stock 17. Premium on Bonds Payable (due in 8 years) 18. Work in Process 19. Common Stock, $1 par 20. Land 21. Treasury Stock (at cost) 22. Unrealized Increase in Value of Available-for-Sale Securities

If you work 6.5 hours, how many minutes did you work? *
290 minutes
390 minutes
490 minutes
190 minutes

Identify which of the arguments for restricting trade that each of the following rebuttals directs against. Rebuttals The Jobs Argument The National-Security Argument The Infant-Industry Argument The Unfair-Competition Argument The Protection-as-a-Bargaining-Chip Argument (A) The gains of the consumers from buying imports at the low price subsidized by foreign governments would exceed the losses of domestic producers. (B) Companies may exaggerate the degree to which their products are essential to national defense in order to obtain protection from foreign competition at the expense of consumers. (C) The country may be forced into deciding between implementing trade restrictions as threatened, which would make the society as a whole worse off, or backing down on its own threat, which would cause it to lose credibility in foreign affairs. (D) Opening up to free trade may impose hardship on some workers in the short run, but it also creates jobs in industries in which the country has a comparative advantage and enables the country as a whole to enjoy a higher standard of living.

Brooks Foundry in Charleston, South Carolina​, uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the​ year, the company expected to incur the​ following:
Manufacturing overhead costs $650,000
Direct labor cost $1,300,000
Machine hours 81,250
At the end of the year, the company had actually incurred:
Direct labor cost $1,190,000
Depreciation on manufacturing plant and equipment $485,000
Property taxes on plant $21,500
Sales salaries $26,000
Delivery drivers' wages $14,500
Plant janitors' wages $11,000
Machine hours 54,500 hours
Requirements:
1. Compute predetermined manufacturing overhead rate.
2. How much manufacturing overhead was allocated to jobs during the​ year?
3. How much manufacturing overhead was incurred during the​ year? Is manufacturing overhead underallocated or overallocated at the end of the​ year? By how​ much?
4. Were the jobs overcosted or​ undercosted? By how​ much?