On January 2, 2020, Riverbed Company sells production equipment to Fargo Inc. for $46,000. Riverbed includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Riverbed incurs costs related to warranties of $900. At December 31, 2020, Riverbed estimates that $690 of warranty costs will be incurred in the second year of the warranty.


Required:
a. Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020.
b. Repeat the requirements for (a), assuming that in addition to the assurance warranty.

Answer:

A. Jan 2,2020

Dr Cash $46,000

Cr Sales Revenue $46,000

During 2020

Dr Warranty expenses $900

Cr Cash $900

Dec 31,2020

Dr Warranty expense $690

Cr Accrued warranty liability $690

B. Jan 2,2020

Dr Cash $46,760

Cr Sales revenue $46,000

Cr Unearned warranty expense $760

During 2020

Dr Warranty expenses $900

Cr Cash $900

Dec 31,2020

Dr Warranty expense $690

Cr Accrued warranty liability $690

Explanation:

Preparation of the journal entry to record this transaction on January 2, 2020, and on December 31, 2020

Jan 2,2020

Dr Cash $46,000

Cr Sales Revenue $46,000

(Being to record sale of equipment)

During 2020

Dr Warranty expenses $900

Cr Cash $900

(Being to record warranty expense)

Dec 31,2020

Dr Warranty expense $690

Cr Accrued warranty liability $690

(Being to record warranty liability)

B. Preparation of the Journal entry to Repeat the requirements for (a)

Jan 2,2020

Dr Cash $46,760

($46,000+$760)

Cr Sales revenue $46,000

Cr Unearned warranty expense $760

(Being to record sale of equipment and extended warranty)

During 2020

Dr Warranty expenses $900

Cr Cash $900

(Being to record warranty expense)

Dec 31,2020

Dr Warranty expense $690

Cr Accrued warranty liability $690

(Being to record warranty liability)

The following data from the just completed year are taken from the accounting records of Mason Company:

Sales $660,000
Direct labor cost $81,000
Raw material purchases $140,000
Selling expenses $103,000
Administrative expenses $43,000
Manufacturing overhead applied to work in process $201,000
Actual manufacturing overhead costs $225,000

Inventories Beginning of Year End of Year
Raw materials $8,500 $10,500
Work in process $6,000 $21,000
Finished goods $79,000 $25,600

Required:
a. Prepare a schedule of cost of goods manufactured.
b. Prepare a schedule of cost of goods sold.

1. What information is provided by the budget? Specifically, what questions can the bank manager ask of the Operations Department
manager?
2. What information does the static budget fail to provide? Specifically, could the budget information be presented differently to
provide even more insight for the bank manager?

(Ratio Computations and Effect ofTransactions)

Presented below is information related to Carver Inc.

CARVER INC.

Balance Sheet
December 31, 2007

Cash $45,000 Notes payable (short-term) $50,000
Receivables $110,000 Accounts payable 32,000
Less: Allowance
15,000

95,000 Accrued liabilities 5,000
Inventories 170,000 Capital stock (par $5) 260,000
Prepaid insurance 8,000 Retained earnings 141,000
Land 20,000
Equipment (net)
150,000

$488,000

$488,000

CARVER INC.

Income Statement
For the year ended December31, 2007

Sales $1,400,000
Cost of goods sold
Inventory, Jan. 1, 2007 $200,000
Purchases
790,000

Cost of goods available forsale 990,000
Inventory, Dec. 31,2007
170,000

Cost of goods sold
820,000

Gross profit on sales 580,000
Operating expenses
170,000

Net income
$410,000

Instructions

(a) Compute the following ratios orrelationships of Carver Inc. Assume that the ending accountbalances are representative unless the information providedindicates differently. (Round answers to 2 decimalplaces.)

Current ratio. times
Inventory turnover. times
Receivables turnover. times
Earnings per share. $
Profit margin on sales. %
Rate of return on assets on December 31, 2007. %
(b) Indicate for each of the followingtransactions whether the transaction would improve, weaken, or haveno effect on the current ratio of Carver Inc. at December 31,2007.

Write off an uncollectible account receivable, $2,200.
Purchase additional capital stock for cash.
Pay $40,000 on notes payable (short-term).
Collect $23,000 on accounts receivable.
Buy equipment on account.
Give an existing creditor a short-term note in settlement ofaccount.

Your client, Keith Teal Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of 27 years. Teal has an investment cost of $430,300 in the machine, which has a useful life of 27 years and no salvage value at the end of that time. Your client is interested in earning an 11% return on its investment and has agreed to accept 27 equal rental payments at the end of each of the next 27 years.
A. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.)
B. Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.)

Part II: Article II, Section I of the U.S. Constitution provides that the president must "take care that the laws be faithfully executed." Presidents have used this authority to issue executive orders, which are orders to federal agencies that are a part of the executive branch and which contain detailed instructions on how laws enacted by Congress should be carried out.

Presidents are not specifically given the power to issue executive orders by the U.S. Constitution. Is it appropriate for the president to exercise powers that the Constitution does not specifically grant to him or her? Why, or why not?

Question Mode Multiple Select Question Select all that apply At the end of the previous year, a customer owed Chocolates R US $500. On January 31 of the current year, the customer paid $900 total, which included the $500 owed plus $400 owed for the current month of January. What would be the journal entry on January 31 that reflects this

Problem 3 (Current Liability Entries and Adjustments) Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system: 1. On February 2, the corporation purchased goods from Martin Company for $70,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. 2. On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a 1-year, 12% note for the balance of the purchase price. 3. On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zerointerest-bearing note due 1 year from May 1. 4. On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31. Instructions (a) Make all the journal entries necessary to record the transactions above using appropriate dates. (b) Edwardson Corporation's year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts.

Sunland Company began operations in July 2019. At the end of the month, the company prepares monthly financial statements. It has the following information for the month. 1. At July 31, the company owed employees $1,800 in salaries that the company will pay in August. 2. On July 1, the company borrowed $32,000 from a local bank on a 10-year note. The annual interest rate is 12%. 3. Service revenue unrecorded in July totaled $2,600. Prepare the adjusting entries needed at July 31, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

2. What are the ways of forecasting cost of sales?
a. cost of materials
b. cost of labor
c. cost of overhead
d. all of the choices​

If a product's demand rises as income rises, ceteris paribus, the product is

a) an inferior good

b) not enough information

c) a notmal good

d) outside of the market equilibrium ​

How do you make people interested in your business?

At the time a $400 petty cash fund is being replenished, the company's accountant finds vouchers totaling $300 and petty cash of $100. The vouchers include: postage, $80; business lunches, $120; delivery fees, $60; and office supplies, $40. Which of the following is not recorded when recognizing expenditures from the petty cash fund?
A. Debit petty cash, $300
B. Credit petty cash, $300
C. Debit office supplies, $40
D. Debit postage expense, $80

Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31.
Debit Credit
Cash 1,500
Accounts Receivable 2,000
Interest Receivable 100
Prepaid Insurance 1,600
Notes Receivable (long-term) 2,800
Equipment 15,000
Accumulated Depreciation 3,000
Accounts Payable 2,400
Accrued Expenses Payable 3,920
Income Taxes Payable 2,700
Unearned Rent fees 500
Common Stock 5,000
Retained Earnings 2,700
Dividends 2,000
Rent Fees Earned 37,000
Furniture Rental Revenue 1,200
Interest Revenue 100
Wages Expense 19,000
Depreciation Expense 1,800
Utilities Expense 320
Insurance Expense 700
Maintenance Expense 9,000
Income Tax Expense 2,700
58,520 58,520
Prepare the entry required to close the expense accounts at the end of the period.

Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets (which is equal to its total invested capital) of $435,000. The debt-to-total-capital ratio was 17%, the interest rate on the debt was 7.5%, and the firm's tax rate was 35%. The new CFO wants to see how the ROE would have been affected if the firm had used a 50% debt-to-total-capital ratio. Assume that sales, operating costs, total assets, total invested capital, and the tax rate would not be affected, but the interest rate would rise to 8.0%. By how much would the ROE change in response to the change in the capital structure

For the current year, Power Cords Corp. expected to sell 42,100 industrial power cords. Fixed costs were expected to total $1,650,500; unit sales price was expected to be $3,800; and unit variable costs were budgeted at $2,300.

Power Cord Corp.'s margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations.)
A. $155,798,733.
B. $189,973,732.
C. $161,718,730.
D. $173,523,730.
E. $145,348,733.

how important are the development of the many management theories
​

The following information is available pertaining to Bonita Division, that uses a plant-wide overhead rate based on machine hours: Mixing Dept. Finishing Dept. Total Overhead $30,000 $60,000 $90,000 Direct labor-hours 7,500 2,500 10,000 Machine-hours 2,500 7,500 10,000 Production information pertaining to Job 101: Mixing Dept. Finishing Dept. Total Prime costs $5,000 $0 $5,000 Direct Labor-hours 250 0 250 Machine-hours 10 10 20 Units produced 500 0 500 What are the total overhead costs assigned to Job 101

On December 31, Fighting Okra Cooking Services reports the following revenues and expenses.

Service revenue $77,000
Postage expense 1,600
Legal fees expense 2,500
Rent expense 10,800
Salaries expense 26,000
Supplies expense 15,500

In addition, the balance of common stock at the beginning of the year was $300,000, and the balance of retained earnings was $36,000. During the year, the company issued additional shares of common stock for $27,000 and paid dividends of $14,000.

Required:
a. Prepare an income statement.
b. Prepare a statement of stockholders' equity.

Blaine Air Transport Service, Inc., providing air delivery service for businesses, has been in operation for three years. The following transactions occurred in February: February 1 Paid $250 for rent of hangar space in February. February 2 Purchased fuel costing $580 on account for the next flight to Dallas. February 4 Received customer payment of $860 to ship several items to Philadelphia next month. February 7 Flew cargo from Denver to Dallas; the customer paid $840 for the air transport. February 10 Paid $170 for an advertisement in the local paper to run on February 19. February 14 Paid pilot $2,500 in wages for flying in January (recorded as expense in January). February 18 Flew cargo for two customers from Dallas to Albuquerque for $4,100; one customer paid $1,600 cash and the other asked to be billed. February 25 Purchased on account $2,460 in spare parts for the planes. February 27 Declared a $130 cash dividend to be paid in March.

Required:
Prepare journal entries for each transaction. Be sure to categorize each account as an asset (A), liability (L), stockholders

A radiology clinic is considering buying a new $700,000 x-ray machine, which will have no salvage value after installation because the cost of removal will be approximately equal to its sales value. Maintenance is
estimated at $24,000 per year as long as the machine is owned. After 10 years the x-ray source will be depleted and the machine must be scrapped. Which of the following represents the most economic life of this x-ray machine?
a.One year, because it will have no salvage after installation
b. Five years, because the maintenance costs are constant
c. Ten years, because maintenance costs don't increase
d. Cannot be determined from the information given.

Cash flows: Hillman Corporation reported current assets of $3,495,055 on December 31, 2017 and current assets of $3,103,839 on December 31, 2016. Current liabilities for the firm were $2,867,225 and $2,760,124 at the end of 2017 and 2016, respectively. Compute the cash flow invested in net working capital at Hillman Corporation during 2017.

A bachelors degree in which of the following areas is a good choice for an arts an communication manager?
A. business
B. art history
C. theater

You are looking at a one-year loan of $26,000. The interest rate is quoted as 11 percent plus two points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 11 percent interest.
What rate would you actually be paying here? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Interest rate %

Nona Curry started her own consulting firm, Larkspur, Inc., on May 1, 2022. The following transactions occurred during the month of May.
May 1 Stockholders invested $18,150 cash in the business in exchange for
common stock.
2 Paid $726 for office rent for the month. 3 Purchased $605 of supplies
on account.
5 Paid $182 to advertise in the County News.
9 Received $1,694 cash for services performed.
12 Paid $242 cash dividend.
15 Performed $5,082 of services on account.
17 Paid $3,025 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $1,452 for services performed on account
on May 15.
26 Borrowed $6,050 from the bank on a note payable.
29 Purchased office equipment for $2,420 paying $242 in cash and the
balance on account.
30 Paid $218 for utilities.
A) Prepare an income statement for the month of May 2017.
B) Prepare a classified balance sheet at May 31, 2017.

Identifying the Five Steps in the Revenue Recognition Process

Match each step 1 through 5 with the sales process described in a through e.

Step 1: identify contract(s) with customer.

Step 2: identify performance obligation(s) in the contract.

Step 3: determine transaction price.

Step 4: allocate transaction price to performance obligation(s).

Step 5: Recognize revenue when (or as) each performance obligation is satisfied through a transfer of control

a. The total price for the computer and two years of services is $800.

b. Customer takes possession of the computer and benefits from the data service over two years.

c. Customer will receive the computer immediately and will benefit from two years of data services for the tablet.

d. The standalone selling price of the computer is $500 and of the two-year service contract is $300.

e. Customer agrees to purchase one computer plus two years of data services for an agreed upon price.

Jeremiah expressed his disdain for the economic reports he heard on the news. "All economists care about is increasing GDP," he said. "I wish economists cared about living conditions and well-being instead of just some economic indicator." How could you acknowledge the shortcomings of GDP to Jeremiah, while also showing him how GDP functions as both an economic indicator and a measure of well-being? While it is true that GDP calculations omit such things as and , it is still a useful way to measure .

Today manufacturers are relying more heavily on developing an MRP system for purchasing. the bidding process to obtain the lowest price. developing close relationships with just a few suppliers to secure affordable prices. many suppliers to keep their leverage.

Reporting Uncollectible Accounts and Accounts Receivable
LaFond Company analyzes its accounts receivable at December 31, 2016, and arrives at the aged categories below along with the percentages that are estimated as uncollectible.
Age Group Accounts Receivable Estimated Loss %
Current (not past due) $250,000 0.5%
1-30 days past due 90,000 1.0
31-60 days past due 20,000 2.0
61-120 days past due 11,000 5.0
121-180 days past due 6,000 10.0
Over 180 days past due 4,000 25.0
Total accounts receivable 381,000
At the beginning of the fourth quarter of 2016, there was a credit balance of $4,350 in the Allowance for Uncollectible Accounts. During the fourth quarter, LaFond Company wrote off $3,830 in receivables as uncollectible.
A. What amount of bad debts expense will LaFond report for 2016?
B. What is the balance of accounts receivable that it reports on its December 31, 2016, balance sheet? $376,300
C. Set up T-accounts for both Bad Debt Expense and for Allowance for Uncollectible Accounts. Enter any beginning balances and effects from the information above (including your results from parts a and b).
Bad Debts Expense Allowance for Doubtful Accounts
A) 4,700 0 Bag 0 4,350
Bal.
Balance 4,700 0 Write-off 3,850

An accountant is starting a new job and wants to make sure he does not put himself or his company at legal risk. He talks to his companyâs law department about which areas of law he should brush up on. The company lawyer tells him relevant areas of the law he should be aware of include:

a. White collar crime, liability of accountants, contracts
b. Product liability, comparative law, agency law
c. Antitrust law, liability of accountants, insurance law
d. Liability of accountants, international law, employment discrimination
e. Antitrust law, international law, consumer law

Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 20192018 Sales$3,220.0$2,800.0 Operating costs excluding depreciation and amortization2,576.02,380.0 EBITDA$644.0$420.0 Depreciation and amortization90.078.0 Earnings before interest and taxes (EBIT)$554.0$342.0 Interest70.861.6 Earnings before taxes (EBT)$483.2$280.4 Taxes (25%)193.3112.2 Net income$289.9$168.2 Common dividends$260.9$134.6 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 20192018 Assets Cash and equivalents$36.0$31.0 Accounts receivable370.0308.0 Inventories678.0616.0 Total current assets$1,084.0$955.0 Net plant and equipment902.0784.0 Total assets$1,986.0$1,739.0 Liabilities and Equity Accounts payable$315.0$252.0 Accruals269.0224.0 Notes payable64.456.0 Total current liabilities$648.4$532.0 Long-term bonds644.0560.0 Total liabilities$1,292.4$1,092.0 Common stock614.2596.6 Retained earnings79.450.4 Common equity$693.6$647.0 Total liabilities and equity$1,986.0$1,739.0 Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign. What was net operating working capital for 2018 and 2019