The following trial balance was prepared from the ledger accounts of Ricardo Company: RICARDO COMPANY Trial Balance April 30, Year 2 Account Titles Debit Credit Cash $ 71,900 Accounts receivable 36,000 Supplies 2,400 Prepaid insurance 4,200 Land $ 11,000 Accounts payable 10,200 Common stock 100,000 Retained earnings 29,640 Dividends 8,600 Service revenue 70,000 Rent expense 10,200 Salaries expense 32,700 Operating expense 33,600 Totals $ 199,600 $ 220,840 When the trial balance failed to balance, the accountant reviewed the records and discovered the following errors: The company received $590 as payment for services rendered. The credit to Service Revenue was recorded correctly, but the debit to Cash was recorded as $770. A $1,200 receipt of cash that was received from a customer on accounts receivable was not recorded. A $580 purchase of supplies on account was properly recorded as a debit to the Supplies account. However, the credit to Accounts Payable was not recorded. Land valued at $11,000 was contributed to the business in exchange for common stock. The entry to record the transaction was recorded as a $11,000 credit to both the Land account and the Common Stock account. A $800 rent payment was properly recorded as a credit to Cash. However, the Salaries Expense account was incorrectly debited for $800.

Question Completion:

Prepare the corrected Trial Balance of Ricardo Company.

Answer:

RICARDO COMPANY

The corrected Trial Balance April 30, Year 2

Account Titles               Debit Credit

Cash                             $ 72,920

Accounts receivable       34,800

Supplies                            2,400

Prepaid insurance            4,200

Land                                 11,000

Accounts payable                          $10,780

Common stock                              100,000

Retained earnings                          29,640

Dividends                        8,600

Service revenue                             70,000

Rent expense                11,000

Salaries expense          31,900

Operating expense     33,600

Totals                      $ 210,420 $ 210,420

Explanation:

a) Data and Calculations:

RICARDO COMPANY

Trial Balance April 30, Year 2

Account Titles                  Debit     Credit

Cash                             $ 71,900

Accounts receivable      36,000

Supplies                            2,400

Prepaid insurance            4,200

Land                                                 $11,000

Accounts payable                            10,200

Common stock                              100,000

Retained earnings                          29,640

Dividends                        8,600

Service revenue                             70,000

Rent expense               10,200

Salaries expense         32,700

Operating expense     33,600

Totals                      $ 199,600 $ 220,840

Cash Account:

Account Titles                  Debit     Credit

Balance                        $ 71,900

Overstated service revenue                 180

Accounts receivable        1,200

Balance                                          $72,920

Totals                           $73,100      $73,100

Balance                       $72,920

Accounts Receivable

Account Titles                  Debit     Credit

Balance                          $36,000

Cash                                                 $1,200

Balance                                         $34,800

Totals                            $36,000 $36,000

Balance                         $34,800

Accounts Payable

Account Titles                  Debit     Credit

Balance                                        $10,200

Supplies                                             580

Balance                        $10,780

Totals                           $10,780  $10,780

Balance                                       $10,780

Land

Account Titles                  Debit     Credit

Balance                                           $11,000

Correction of error      $22,000

Balance                                           $11,000

Totals                           $22,000  $22,000

Balance                         $11,000

Salaries Expense

Account Titles                  Debit     Credit

Balance                      $32,700

Rent Expense                                   $800

Balance                                        $31,900

Totals                        $32,700    $32,700

Balance                     $31,900

Rent Expense

Account Titles                  Debit     Credit

Balance                          $10,200

Salaries Expense                 800

Balance                                          $11,000

Totals                             $11,000   $11,000

Balance                          $11,000

The legal theory of contributory negligence:
a. is in effect in the majority of states throughout the nation.
b. means that, even assuming the defendant is negligent, if the plaintiff is even slightly negligent, the plaintiff recovers nothing.
c. allows the negligent plaintiff to recover if he was responsible for less than 50 percent of his injury.
d. has been criticized as rewarding a plaintiff for being careless.

1. Find the derivative y' = dy/dx:
(a) y = 5x2 + 2x-1/2 + 3
(b) y = (3x2 - 1)(5x2 + 2x)
What is the y prime?

the process in which derivatives are used to reduce risk exposure is called hedging or speculation

Presented below are various account balances of K.D. Lang Inc.

a. Unamortized premium on bonds payable, of which $3,000 will be amortized during the next year.
b. Bank loans payable of a winery, due March 10, 2024. (The product requires aging for 5 years before sale.)
c. Serial bonds payable, $1,000,000, of which $200,000 are due each July 31.
d. Amounts withheld from employees' wages for income taxes.
e. Notes payable due January 15, 2023.
f. Credit balances in customers' accounts arising from returns and allowances after collection in full of account.
g. Bonds payable of $2,000,000 maturing June 30, 2021.
h. Overdraft of $1,000 in a bank account. (No other balances are carried at this bank.)
i. Deposits made by customers who have ordered goods.

Required:
Indicate whether each of the items above should be classified on December 31, 2024, as a current liability, a long-term liability, or under some other classification.

Assuming that the balance sheet of BG Land Development is as follows:
Assets Liabilities and Capital
Cash $20,000 Accounts payable $80,000
Non-cash assets 200,000 Mitchell, Loan 10,000
Matthews, capital 50,000
Mitchell, capital 66,000
Michaels, capital 14,000
Total assets $220,000 Total Liab. and capital $220,000
Required:
If partners are to receive the final payment in a lump-sum, when BG Land Development is liquidated, Matthews receives $___, Mitchell receives $____, Michaels receives $____.

Sunland Design was founded by Thomas Grant in January 2011. Presented below is the adjusted trial balance as of December 31, 2020.
SUNLAND DESIGN
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $11,760
Accounts Receivable 22,260
Supplies 5,760
Prepaid Insurance 3,260
Equipment 60,760
Accumulated Depreciation-Equipment $35,760
Accounts Payable 5,760
Interest Payable 228
Notes Payable 7,600
Unearned Service Revenue 6,360
Salaries and Wages Payable 1,496
Common Stock 10,760
Retained Earnings 4,260
Service Revenue 62,260
Salaries and Wages Expense 12,060
Insurance Expense 1,046
Interest Expense 578
Depreciation Expense 9,600
Supplies Expenses 3,400
Rent Expense 4,000
$134,484 $134,00
Instructions
Prepare an income statement and a retained earnings statement for the year ending December 31, 2020, and an unclassified balance sheet at December 31.

Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March:

Mar.
1 Materials purchased on account, $770,000.
2 Materials requisitioned, $680,000, of which $75,800 was for general factory use.
31 Factory labor used, $756,000, of which $182,000 was indirect.
31 Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600.
31 Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660.
31 Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900.
31 Factory overhead costs applied to jobs, $568,500.
31 Jobs completed, $1,500,000.
31 Cost of goods sold, $1,375,000.

Required:
Journalize the entries to record the summarized operations.

On January 1, Year 1, Chertco acquired a patent for $500,000 and, using the straight-line method, began amortizing it properly over its estimated useful life of 10 years. The asset has no residual value. At December 31, Year 4, a significant change in the business climate caused Chertco to assess the recoverability of the carrying amount of the patent. Chertco estimated that the undiscounted future net cash inflows from the patent would be $325,000 and that its fair value was $275,000. Accordingly, for the year ended December 31, Year 4, Chertco should recognize an impairment loss of :________.
a. $175,000
b. $50,000
c. $25,000
d. $0

Megan Finder, a recent college graduate, is applying for her first credit card. The creditor has asked for a personal net worth statement. Megan owns a scooter worth $2,000.00 and has $800.00 in her checking account. She owes Jaycee Auto $920.00 and River College $125.00. Complete a net worth statement for Megan Finder. Select Current Date in the appropriate field. Assets should be listed in order of liquidity, so Cash should be listed first. Liabilities should be reported in alphabetic order.

Ayayai Company started the year with $56400 in its Common Stock account and a balance in Retained Earnings of $41400. During the year, the company earned net income of $45100 and declared and paid $18800 of dividends. In addition, the company sold additional common stock amounting to $26300. As a result, the amount of its retained earnings at the end of the year would be

In January, Dieker Company requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31 enter an account title for the journal entry on January 31

Which of the following best describes the front-end function of a cloud computing network?

ProTech began business at the start of the current year. The company planned to produce 40,000 units, and actual production conformed to expectations. Sales totaled 37,000 units at $42 each. Costs incurred were:

Variable manufacturing overhead per unit
$
19
Fixed manufacturing overhead
240,000
Variable selling and administrative cost per unit
7
Fixed selling and administrative cost per unit
140,000
If there were no variances, the company's absorption-costing income would be ___________

Cost flow relationships The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment:
Sales $ 12,755,000
Gross profit 5,359,700
Indirect labor 422,600
Indirect materials 185,500
Other factory overhead 834,900
Materials purchased 4,251,600
Total manufacturing costs for the period 8,122,000
Materials inventory, end of period 298,900
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the following amounts. Round your answers to the nearest dollar.
Cost of goods sold $_______
Direct materials cost $________
Direct labor cost $_______.

n the following list are a number of well-known companies and the products that they sell. Which of the four types of markets (pure monopoly, oligopoly, monopolistic competition, perfect competition) best characterizes the markets in which they compete? Explain why. a) McDonald's- hamburgers b) ExxonMobil- gas c) Dell- personal computers d) Heinz- ketchup e) Proctor & Gamble- disposable diapers f) Starbucks- gourmet coffee g) Domino’s- pizza h) Intel- computer chip for the PC (p. 381 #9)

For items 1 through 4, select from the first column option list provided the answer for each item that reflects how fund information is reported in the government-wide and fund financial statements. Each choice may be used once, more than once, or not at all.
In items 5 through 8, select from the second column option list provided the answer that indicates whether fund information about long-term liabilities and capital assets is reported in the government-wide and fund financial statements. Each financial statement component is reported in each fund.
Item
Information in governmental funds
Information in proprietary funds
Information in fiduciary funds
Government-wide financial statements:
1. Basis of accounting Accrual Accrual Modified cash
2. Measurement focus Current financial resources
Fund financial statements:
3. Basis of accounting Accrual
4. Measurement focus Current financial resources
Government-wide financial statements:
5. Long-term liabilities Yes
6. Capital assets Yes
Fund financial statements:
7. Long-term liabilities Yes
8. Capital assets

(a) Explain the quantity theory and
(b) how does the theory explains the cause of inflation​

Jefferson Company, a commercial painting contractor, uses a normal-costing system to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct labor) and one indirect-cost pool called overhead costs. To each job, Jefferson allocates overhead at a budgeted rate of 80% of direct labor costs.

Jefferson provides the additional information for February:

1. As of February 1, Job A21, the only job in process, had incurred direct material costs of $30,000 and direct labor costs of $50,000.

2. Jobs A22, A23, and A24 were started in February.

3. Direct materials used during February were $150,000.

4. Direct labor costs for February were $120,000.

5. Actual overhead costs for February were $102,000.

6. On February 28, Job A24 was the only job still in process, and it had incurred direct materials costs of $20,000 and direct labor costs of $40,000.

As each job is completed, its cost is transferred to the Cost of Jobs Billed account. Each month, Jefferson closes any under-or over-allocated overhead to Cost of Jobs Billed.

1. Give one example of a direct cost and one example of an overhead cost for a job undertaken by Jefferson Company.

2. Calculate the overhead allocated to Job A21 as of February 1.

3. Calculate the overhead allocated to Job A24 as of February 28.

4. Calculate the under- or overallocated overhead for February.

5. Calculate ending balance of jobs still in process as of February 28.

6. Compute the Cost of Jobs Billed for February.

Mark is a wealthy private financier who funds projects without utilizing a venture capital limited partnership structure. He typically provides funds for start-up projects that are $1 million or less. There have been instances in the past where Mark lost a huge share of money in some projects, but he also received high returns on some other projects. He is aware of the risks, but that does not stop him from funding start-ups. Which of the following would best describe Mark?

a. He is a broker.
b. He is a laggard.
c. He is an angel investor.
d. He is a market leader

Transactions for Crane Company for the month of June are presented below.

June 1 Issues common stock to investors in exchange for $4,960 cash.
2 Buys equipment on account for $1,720. 3 Pays $930 to landlord for June rent.
12 Sends Wil Wheaton a bill for $820 after completing welding work.

Required:
Journalize the transactions.

Suppose that in the market for loanable funds, the governement is currently running a deficit, and net exports are negative. Then, there is a sharp recession, causing consumer spending on both domestic and imported goods to fall (just as is currently happening), so that the size of the trade deficit shrinks. What effect will this have on the market for loanable funds

It is generally recognized that the spending habits of individuals changes over their lives. In general, young adults tend to spend__________ than they earn, while older adults tend to spend_________. To accommodate their spending habits, young adults tend to rely on funds raised from__________. Retired adults, in contrast, tend to rely on_________ to cover the frequent shortage between their current expenditures and their current incomes.

Listed below are selected Rules of Conduct and ethical problems. Match the rule with the problem to which it applies. (One Rule of Conduct may apply to more than one ethical problem.)
Rules
A. Independence
B. Integrity and objectivity
C. General standards
D. Compliance with standards
E. Accounting principles
F. Contingent fees
G. Acts discreditable
H. Advertising and other forms of solicitation
I. Commissions and referral fees
J. Form or practice and name
Rules
1. An audit client owes the CPA past-due audit fees.
2. A member violates rules issued by the Accounting and Review Services Committee.
3. A CPA accepts a percentage of the client's loan as an audit fee.
4. A CPA robs a service station.
5. The auditors fail to qualify their opinion on financial statements that do not properly apply FASB standards.

Swifty Company showed the following balances at the end of its first year: Cash $3930 Prepaid insurance 6910 Accounts receivable 4990 Accounts payable 3960 Notes payable 5930 Owner’s Capital 2090 Owner’s Drawings 960 Revenues 32100 Expenses 24800 What did Swifty Company show as total credits on its trial balance? a. $44080 b. $49070 c. $45040 d. $9390

You work in the customer care division at Flannery Electronics. Mr. Gallegos, a longtime customer, is experiencing a problem with his home theater system and has submitted a letter requesting that Flannery Electronics either fix or replace his system at no cost. Unfortunately, Mr. Gallegos’s customer service and factory warranties expired three months ago. You must write to Mr. Gallegos and inform him that Flannery will be unable to honor his request.
1. Should the tone for this message be formal or informal?
A. Formal
B. Informal
2. Which communication channel would be most appropriate?
A. Phone call
B. Letter
C. Instant message
D. Face-to-face meeting

Partial adjusted trial balance for Sheffield Corp. at December 31, 2017, includes the following accounts: Retained Earnings $17,000, Dividends $6,700, Service Revenue $36,300 Salaries and Wages Expense $14,000, Insurance Expense $1,880, Rent Expense $4,080, Supplies Expense $1,440, and Depreciation Expense $900. The balance in Retained Earnings is the balance as of January 1.Prepare a retained earnings statement for the year assuming net income is $10,400. List items that increase retained earnings first.

An organization expresses its reason for being, what it aspires to be, and the values it wants to emphasize in its mission, vision, and values statements, respectively. This activity is important because these three statements are the necessary foundation for a successful organizational planning process.

The goal of this exercise is to challenge your knowledge of important components of organizational mission, vision, and values statements.

Read the descriptions and select whether the description pertains to a mission, vision, or value statement.

1. Describes the image the organization wants to project
Values Statement Vision Statement Mission Statement
2. Inspires enthusiasm and encourages commitment
Vision Statement Values Statement Mission Statement
3. Illuminates the organization’s attitude toward its employees
Values Statement Vision Statement Mission Statement
4. Is intended to guide all of the actions in the organization
Vision Statement Mission Statement Values Statement
5. Is easily understood and well-articulated
Vision Statement Mission Statement Values Statement
6. Outlines the organization’s customer base
Values Statement Vision Statement Mission Statement
7. Expresses the company’s worldview
Vision Statement Mission Statement Values Statement
8. Is appropriate for the times and for the organization
Mission Statement Values Statement Vision Statement
9. Limits itself to a small number that employees can recall when making decisions
Mission Statement Vision Statement Values Statement
10. Articulates the geographical locations where the company competes
Vision Statement Mission Statement Values Statement
11. Unchanging; As applicable in 100 years as it is today
Vision Statement Mission Statement Values Statement
12. Reflects high ideals
Mission Statement Vision Statement Values Statement

At the end of April, the first month of the company's year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement for April and (b) the balance sheet as of April 30. Also indicate whether the items in error will be overstated or understated.

Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $6,700 for direct materials, $9,500 for direct labor, and $6,270 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4,100 for direct materials and $4,100 for direct labor.

Required:
Calculate the overhead cost be added to Job W at year-end

Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.7× Return on assets (ROA) 5.0% Return on equity (ROE) 13.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Debt-to-capital ratio: %