The following information was drawn from the accounting records of Wyckoff Company as of December 31, Year 2, before the temporary accounts had been closed. The Cash balance was $3,600, and Notes Payable amounted to $4,000. The company had revenues of $7,500 and expenses of $3,400. The company’s Land account had a $8,000 balance. Dividends amounted to $1,000. The balance of the Common Stock account was $2,000.
Required:
A. Identify which accounts would be classified as permanent and which accounts would be classified as temporary.
B. Assuming that Wyckoff's beginning balance (as of January 1, Year 2) in the Retained Earnings account was $2,500, determine its balance after the temporary accounts were closed at the end of Year 2.
C. What amount of net income would Wyckoff Company report on its Year 2 income statement?
D. Explain why the amount of net income differs from the amount of the ending Retained Earmings balance.
E. What are the balances in the revenue, expense, and dividend accounts on January 1, Year 3?

Answer:

Wyckoff Company

A. Identification of permanent and temporary accounts:

Permanent:

Cash $3,600

Notes Payable $4,000

Land $8,000

Common Stock $2,000

Temporary:

Revenue $7,500

Expenses $3,400

Dividends $1,000

B. Retained Earnings balance, December 31, Year 2: $5,600

C.  Amount of net income = $4,100

D. The net income of $4,100 does not include the beginning balance of retained earnings of $2,500 and the dividends.

E. The balances in the revenue, expense, and dividend accounts on January 1, Year 3 are $0, $0, and $0.  They are not permanent accounts and as temporary accounts were closed to the Income Summary of Year 2.

Explanation:

a) Data and Calculations:

Wyckoff company

Account balances as of December 31, Year 2:

Cash $3,600

Notes Payable $4,000

Revenue $7,500

Expenses $3,400

Land $8,000

Dividends $1,000

Common Stock $2,000

b) Wyckoff Income Statement

Revenue       $7,500

Expenses     $3,400

Net income  $4,100

Retained Earnings Statement

Net Income            $4,100

Balance, January 1  2,500

Dividends                (1,000)

Balance, Dec. 31   $5,600

Pasadena Candle Inc. budgeted production of 715,000 candles for the January. Wax is required to produce a candle. Assume 10 ounces of wax is required for each candle. The estimated January 1 wax inventory is 18,600 pounds. The desired January 31 wax inventory is 12,800 pounds. If candle wax costs $2.10 per pound, determine the direct materials purchases budget for January. (One pound = 16 ounces.) Round all computed answers to the nearest whole number. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Predictive analytics in business is an important application of multiple regression analysis. Generally speaking, what is meant by predictive analytics

Basic job Costing

1. Our company makes customized jewelry Customer 101 orders a ring (job 101).
2. It requires 2 grams of 14k gold, 1 diamond and 3 rubies.
c. Customer 102 orders a pendant (job 102). It requires 4 grams of 14 k gold, and 1 ruby.
d. Purchasing buys 1,000 grams of 14k gold for $24,000. 10 diamonds for $28,000, and 10 rubies for $14,000.
e. For the month, the company had factory labor costs of $280,000 and 10,000 hours.

Required:
Prepare the journal entry for the purchases/receivings.
Prepare the journal entry for the direct materials requisitions (by job).
Prepare the journal entry for factory payroll.

Presented below are selected accounts for Sheffield Company as reported in the worksheet at the end of May 2020.
Complete the worksheet by extending amounts reported in the adjusted trial balance to the appropriate columns in the worksheet.
Accounts Adjusted Trial Balance Income Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr.
Cash 8,800
Inventory 77,750
Sales Revenue 446,000
Sales Returns and
Allowances 9,210
Sales Discounts 4,730
Cost of Goods Sold 243,700

The minimum downside projection from a head and shoulders top pattern is derived a. by projecting downward from the neckline, the vertical distance from the top of the head to the neckline b. by measuring the width of the left shoulder and subtracting that distance from the neckline c. by measuring the distance from the penetration of the neckline by the left shoulder to the penetration of the neckline by the right shoulder and extending down from the point of penetration of the right shoulder d. by estimating the length of the primary price cycle

Purple Panda Pharmaceuticals Inc.’s free cash flows (FCFs) are expected to grow at a constant long-term growth rate ( gL ) of 13% per year into the future. Next year, the company expects to generate a free cash flow of $10,000,000. The market value of Purple Panda’s outstanding debt and preferred stock is $75,000,000 and $41,666,667, respectively. Purple Panda has 4,500,000 shares of common stock outstanding, and its weighted average cost of capital (WACC) is 19%.Given the preceding information, complete the adjacent table (rounding each value to the nearest whole dollar), and assuming that the firm has not had any nonoperating assets in its balance sheet. Term Value Value of Operations Value of Firm's Common Equity Value of Common Stock (per share) Oops, a more careful review of Purple Panda's balance sheet actually reports a $2,370,000 portfolio of marketable securities. How does this new information affect the intrinsic value of Purple Panda's common equity (expressed on a per-share basis) assuming no other changes to the Purple Panda financial situation? Review the statements below and select those that accurately describe Purple Panda's financial situation.
A. The intrinsic value of the company's common stock isn't affected by the new information.
B. The intrinsic value of Purple Panda's common stock decreases with the inclusion of the company's marketable securities portfolio into the analysis.
C. The revised intrinsic value of Purple Panda's common stock is $1.27 per share.
D. The intrinsic value of Purple Panda's common stock increases with the inclusion of the company's marketable securities portfolio into the analysis.

Christopher likes cupcakes (C) and muffins (M). His preferences can be represented by the utility function U(C, M) = C0.5M0.5. He received a gift basket with 16 cupcakes and 4 muffins, but when he was about to eat them, he found out his younger brother Dan had eaten 14 cupcakes and 2 muffins. Christopher made Dan buy what he'd eaten back. However, the bakery was out of muffins and Dan only bought cupcakes. How many cupcakes did Dan buy if, in addition to what he had not eaten from the basket, the new cupcakes provide Christopher with the same level of utility as the original gift basket?

Illustrate your understanding of how to use the adjusted trial balance to prepare a statement of retained earnings by completing the following sentence.

In order to prepare the statement of retained earnings, the balance of the _____________ account balance as well as any debit balance in the ______________ account is transferred from the adjusted trial balance and is used along with the reported net income (loss) from the Income statement.

Recording sales, purchases, shipping, and returns—buyer and seller LO P1, P2
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.
May
11 Sydney accepts delivery of $29,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $19,765. Sydney pays $590 cash to Express Shipping for delivery charges on the merchandise.
12 Sydney returns $1,200 of the $29,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $804.
20 Sydney pays Troy for the amount owed. Troy receives the cash immediately.
(Both Sydney and Troy use a perpetual inventory system and the gross method.)
1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.
2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.

Indicate whether the following statements about the conceptual framework are true or false. (a) Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. select an option (b) General-purpose financial reports are most useful to company insiders in making strategic business decisions. select an option (c) Accounting standards based on personal conceptual frameworks generally will result in consistent and comparable accounting reports. select an option (d) Capital providers are the only users who benefit from general-purpose financial reporting. select an option (e) Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company. select an option (f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result.

Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 43,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $540,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Harris’s actual manufacturing overhead cost for the year was $787,704 and its actual total direct labor was 43,500 hours.

Required:
Compute the company’s plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.)

The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019.

Current assets $540,000
Debt investments (trading) 624,000
Common stock (par value $10) 500,000
Paid-in capital in excess of par 150,000
Retained earnings 840,000

Required:
Prepare the required journal entries for the following unrelated items.

a. A 5% stock dividend is declared and distributed at a time when the market price per share is $39.
b. The par value of the common stock is reduced to $2 with a 5-for-1 stock split.
c. A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.

At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $70 million attributable to a temporary book-tax difference of $280 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $208 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $504 million and the tax rate is 25%.
Payne has a valuation allowance of $28 million for the deferred tax asset at the beginning of 2021.Required:A. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full.B. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.

Consider an economy that is composed of identical individuals who live for two periods. These individuals have preferences over consumption in periods 1 and 2 given by U = ln(C1) + ln(C2). They receive an income of 100 in period 1 and an income of 50 in period 2. They can save as much of their income as they like in bank accounts, earning an interest rate of 10% per period. They do not care about their children, so they spend all their money before the end of period 2.
Each individual’s lifetime budget constraint is given by C1 + C2/(1 + r) = Y1 + Y2/(1 + r). Individuals choose consumption in each period by maximizing lifetime utility subject to this lifetime budget constraint.
What is the individual’s optimal consumption in each period? How much saving does he or she do in the first period?
Now the government decides to set up a social security system. This system will take $10 from each individual in the first period, put it in the bank, and transfer it to him or her with interest in the second period. Write out the new lifetime budget constraint. How does the system affect the amount of private savings? How does the system affect national savings (total savings in society)? What is the name for this type of social security system?

Acton Quest Games Inc. adjust accounts annually. The following information is available for the year ended December 31, 2017.

Purchased a 1-year insurance policy on June 1 for $1,320 cash.
Paid $6,100 on August 31 for 5 months' rent in advance.
On September 4, received $3,240 cash in advance from e corporation to sponsor a game each month for a total of 9 months for the most improved students at local school.
Signed a contract for cleaning services starting December 1 for $1,150 per month. Paid for the first 2 months on November 30. (Hint: use the account Prepaid Cleaning to record
On December S, received $2,600 in advance from a gaming dub. Determined that on December 32, $350 of these games had not yet been played.

Required:
For each of the above transactions, record the adjustment that is required on December 31.

A production line has three machines A, B, and C, with reliabilities of .92, .97, and .87, respectively. The machines are arranged so that if one breaks down, the others must shut down. Engineers are weighing two alternative designs for increasing the line’s reliability. Plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. In either case, three machines (A, B, and C) would be used with reliabilities equal to the original three.
A. Compute overall system reliability under Plan 1.
B. Compute overall system reliability under Plan 2.
C. Which plan will provide the higher reliability?1. Plan 2.2. Plan 1.

Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2100 units, while 1600 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $149,315. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:
Expected activity
Estimated
Activity cost Overhead
pool cost Toasters Blenders Total
Setup costs $8,585 215 batches 450 batches 665 batches
Engineering costs $73,980 870 engineering 820 engineering 1,690 engineering
hours hours
Maintenance costs $66,750 2,7250 direct 1,195 direct 3,945 direct
labor hours labor hours labor hours
Total $149,315
The overhead cost per Blenders using the traditional costing system would be closest to:____.
A. $28.27.
B. $37.85.
C. $93.32.
D. $19.40.

Nelson Ovalles worked as a cable installer for Cox Rhode Island Telecom, LLC, under an agreement with a third party, M&M Communications, Inc. The agreement stated that no employer-employee relationship existed between Cox and M&M’s technicians, including Ovalles. Ovalles was required to designate his affiliation with Cox on his work van, clothing, and identification badge, but Cox had minimal contact with him and limited power to control the manner in which he performed his duties. Cox supplied cable wire and similar items, but the equipment was delivered to M&M, not to Ovalles. On a workday, while Ovalles was fulfilling a work order, his van rear ended a car driven by Barbara Cayer.

a. Is Cox liable to Cayer?
b. Are independent contractors the same as employees?
c. What is the difference?

Suppose you’re evaluating three alternative MMMF investments. The first fund buys a diversified portfolio of municipal securities from across the country and yields 3.95 percent. The second fund buys only taxable, short-term commercial paper and yields 5.7 percent. The third fund specializes in the municipal debt from the state of New Jersey and yields 3.6 percent. If you are a New Jersey resident, your federal tax bracket is 35 percent, and your state tax bracket is 8 percent.1. Calculate the aftertax yield for each of the alternatives. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Aftertax Yield Municipal fund 3.95 % Taxable fund 3.31 % New Jersey municipal fund %2. Which of these three MMMFs offers you the highest aftertax yield?a. New Jersey Fundb. Municipal Fundc. Taxable Fund

Use the following items to determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. Rent for the month $ 1,360 Monthly take-home salary $ 3,260 Cash in checking account $ 1,270 Savings account balance $ 1,990 Spending for food $ 560 Balance of educational loan $ 2,390 Current value of automobile $ 8,530 Telephone bill paid for month $ 94 Credit card balance $ 334 Loan payment $ 147 Auto insurance $ 326 Household possessions $ 3,970 Stereo equipment $ 2,590 Payment for electricity $ 166 Lunches/parking at work $ 181 Donations $ 122 Home computer $ 2,140 Value of stock investment $ 1,810 Clothing purchase $ 137 Restaurant spending $ 167 Total assets $ Total liabilities $ Net worth $ Total cash inflows $ Total cash outflows $

The Esposito Import Company had 1 million shares of common stock outstanding during 2021. Its income statement reported the following items: income from continuing operations, $7 million; loss from discontinued operations, $1.4 million. All of these amounts are net of tax.
Required:
Prepare the 2021 EPS presentation for the Esposito Import Company.

During 2019, Ocean Consulting had the following transactions with it clients (customers): On February 1, 2019, the company received cash of $5,500 from clients in payment of their account balances as of December 31, 2018. On November 1, 2019, the company received $2,500 cash as payments in advance for services to be performed in 2020. The company received a total of $15,500 in cash for services that were performed during 2019. The company sent bills totaling $4,500 to clients for services performed during 2019; this amount was unpaid as December 31, 2019.
As a result of these transactions during 2019, the firm's stockholders' equity will:__________

Techuxia Corporation worked on four jobs during October: Job A256, Job A257, Job A258, and Job A260. At the end of October, the job cost sheets for these jobs contained the following data:
Job A256 Job A257 Job A258 Job A260
Beginning balance $920 $640 $0 $0
Charged to the jobs during October:
Direct materials $2,750 $4,020 $1,550 $3,750
Direct labor $1,150 $930 $650 $460
Manufacturing overhead
applied $4,420 $1,760 $2,345 $400
Units completed 210 0 101 0
Units in process at the
end of October 0 310 0 253
Units sold during October 155 0 52 0
Jobs A256 and A258 were completed during October. The other two jobs had not yet been completed at the end of October. There was no finished goods inventory on October 1. In October, overhead was overapplied by $1,380. The company adjusts its cost of goods sold every month for the amount of the underapplied or overapplied overhead.
Required:
1. Using the direct method, what is the cost of goods sold for October?
2. What is the total value of the finished goods inventory at the end of October?
3. What is the total value of the work in process inventory at the end of October?

Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $128,800 of manufacturing overhead for an estimated allocation base of $92,000 direct material dollars to be used in production. The company has provided the following data for the just completed year:
Purchase of raw materials $ 136,000
Direct labor cost $ 88,000
Manufacturing overhead costs:
Indirect labor $ 136,100
Property taxes $ 8,200
Depreciation of equipment $ 19,000
Maintenance $ 12,000
Insurance $ 7,400
Rent, building $ 32,000
Beginning Ending
Raw Materials $ 27,000 $ 13,000
Work in Process $ 49,000 $ 37,000
Finished Goods $ 69,000 $ 55,000
Required:
1. Compute the predetermined overhead rate for the year.
2. Compute the amount of underapplied or overapplied overhead for the year.
3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials.
4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer.
5. Assume that the $37,000 ending balance in Work in Process includes $8,000 of direct materials. Given this assumption, supply the information missing below:
Required 1 Required 2 Required 3 Required 4 Required 5
Compute the predetermined overhead rate for the year. 19% redetermined overhead rate

During 2009, Raines Umbrella Corp. had sales of $746,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $578,000, $103,000, and $130,000, respectively. In addition, the company had an interest expense of $97,000 and a tax rate of 40 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $18,000 in cash dividends, spending on net fixed assets and net working capital was zero, and no new stock was issued during the year.What is the firm’s:______.
1- Cash Flow from Assets?
2- Cash Flow to Shareholders?
3- Cash Flow to Creditors?
4- Net new Long-term Debt?

Prepare adjusting journal entries, as needed, for the following items.
A. The Supplies account shows a balance of $530, but a count of supplies reveals only $280 on hand at year-end.
B. The company initially records the payments of all insurance premiums as prepaid insurance. The unadjusted trial balance at year-end shows a balance of $570 in Prepaid Insurance. A review of insurance policies reveals that $140 of insurance is unexpired.
C. Employees work Monday through Friday, and salaries of $2,900 per week are paid each Friday. The company's year-end falls on Tuesday.
D. At year-end, the company received a utility bill for December's electricity usage of $250 that will be paid in early January.

This activity is important marketing managers need to understand how buy-classes affect organizational buying behavior. Organizations face three different types of buying situations called buy-class situations; new buy, straight rebuy, and modified rebuys. The type of buy-class affects the way buying centers make purchase decisions.
The goal of this exercise is to demonstrate your understanding of the three different types of buy-classes.
Hover over the product name to reveal the hint. Then match the product with the correct buy-class situation
Legal pads and pens
Service trucks
Shipping crane
Solar panels
Copier paper
Record-keeping software
Buy-Class Situation New Buy Straight Rebuy Modified Rebuy

Pizza Express Inc. began the Year 2 accounting period with $2,500 cash, $1,400 of common stock, and $1,100 of retained earnings. Pizza Express was affected by the following accounting events during Year 2:

1. Purchased $3,600 of supplies on account.
2. Earned and collected $12,300 of cash revenue.
3. Paid $2,700 cash on accounts payable.
4. Adjusted the records to reflect the use of supplies. A physical count indicated that $250 of supplies was still on hand on December 31, Year 2.

Required
a. Show the effects of the events on the financial statements.
b. Explain the difference between the amount of net income and amount of net cash flow from operating activities.

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows along with descriptions of items a through h that require adjusting entries on December 31.

Additional Information:

1. An analysis of WTI's insurance policies shows that $2,542 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,204 are available at year-end.
3. Annual depreciation on the equipment is $10,170.
4. Annual depreciation on the professional library is $5,085.
5. On September 1, WTI agreed to do five courses for a client for $2,400 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $12,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $6,498 of the tuition has been earned by WTI.
7. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
8. The balance in the Prepaid Rent account represents rent for December.


Debit Credit
Cash $26,944
Accounts receivable 0
Teaching supplies 10,362
Prepaid insurance 15,545
Prepaid rent 2,073
Professional library 31,088
Accumulated depreciation—Professional library $9,328
Equipment 72,533
Accumulated depreciation—Equipment 16,582
Accounts payable 37,202
Salaries payable 0
Unearned training fees 11,500
Common stock 11,000
Retained earnings, December 31, 2017 54,908
Dividends 41,452
Tuition fees earned 105,701
Training fees earned 39,379
Depreciation expense—Professional library 0
Depreciation expense—Equipment 0
Salaries expense 49,743
Insurance expense 0
Rent expense 22,803
Teaching supplies expense 0
Advertising expense 7,254
Utilities expense 5,803
Totals $285,600 $285,600

Required:
a. Prepare Wells Technical Institute's income statement for the year 2018.
b. Prepare Wells Technical Institute's statement of retained earnings for the year 2018.
c. Prepare Wells Technical Institute's balance sheet as of December 31, 2018.

Supply Company reported the following information in its comparative financial statements for the fiscal year ended January​ 31.
January 31 January 31
2018 2017
Net sales $91,000 $89,500
Net earnings $6,370 $6,220
Average total assets $65,000 $64,400
Requirement
1. Compute net profit margin ratio​ (%) for the years ended January​ 31, and 2017. Did it improve or worsen in ​2018?
2. Compute asset turnover for the years ended January 31, 2018 and 2017. Did improve or worsen in 2018? 2018 2017 91,000 $ 89,500 Net sales
3. Compute return on assets for the years ended January 31, 2018 and 2017. Did it improve or worsen in 2018? Which component-net profit margin ratio or asset turnover-was mostly responsible for the change in the company's return on assets?