Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance at the end of its first year of operations:

Crazy Mountain Outfitters Co. Unadjusted Trial Balance April 30, 20Y5

Debit Balances Credit Balances
Cash 11,400
Accounts Receivable 72,600
Supplies 7,200
Equipment 112,000
Accounts Payable 12,200
Unearned Fees 19,200
Common Stock 20,000
Retained Earnings 117,800
Dividends 10,000
Fees Earned 305,800
Wages Expense 157,800
Rent Expense 55,000
Utilities Expense 42,000
Miscellaneous Expense 7,000
475,000 475,000

For preparing the adjusting entries, the following data were assembled:
a. Supplies on hand on April 30 were $1,380.
b. Fees earned but unbilled on April 30 were $3,900.
c. Depreciation of equipment was estimated to be $3,000 for the year.
d. Unpaid wages accrued on April 30 were $2,475.
e. The balance in unearned fees represented the April 1 receipt in advance for services to be provided. Only $14,140 of the services was provided between April 1 and April 30.

Required:

1. Journalize the adjusting entries necessary on April 30. 2016.
2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries.
3. Determine the revenues, expense, and net income of Crazy Mountain Outfitters G after the adjusting entries.
4. Determine the effect of the adjusting entries on Retained Earnings.

Answer:

Required 1.

a.

Supplies Inventory $1,380 (debit)

Income Statement $1,380 (credit)

b.

Cash $3,900 (debit)

Un-earned Fees $3,900 (credit)

c.

Depreciation $3,000 (debit)

Accumulated Depreciation $3,000 (credit)

d.

Wages Expenses $2,475 (debit)

Wages Accrued $2,475 (credit)

e.

Unearned Fees $14,140 (debit)

Fees Earned $14,140 (credit)

Required 2.

Fees Earned                                305,800

Less Expenses :

Wages Expense                          (157,800)

Rent Expense                               (55,000 )

Utilities Expense                          (42,000 )

Miscellaneous Expense                (7,000)

Net Income / (loss)                        44,000

Required 3.

Fees Earned (305,800 + 14,140)       319,940

Less Expenses :

Wages Expense (157,800  + 2,475) (160,275)

Rent Expense                                    (55,000 )

Utilities Expense                               (42,000 )

Miscellaneous Expense                      (7,000)

Depreciation                                        (3,000)

Net Income / (loss)                              52,665

Required 4.

Effect = Increase by $8,665

Explanation:

Required 3.

Make the following Adjustments :

Required 4

Adjust the Retained Earnings with items affecting the Income Statement.

Retained Earnings                            $117,800

Less Depreciation Expense             ($3,000)

Less Wages Accrued                       ($2,475)

Add Fees Earned                              $14,140

Adjusted Retained Earnings           $126,465

Conclusion  :

Effect = Increase

Amount = $126,465 - $117,800 = $8,665

Suppose you have a linear integer optimization problem. You solve the problem as a linear optimization problem by ignoring the integer constraints and obtain an integer optimal solution (i.e., your model did not require the variables to be integer, but it turned out when you solved the problem Solver found an optimal answer where the variables are integer).

Which of the statements below are correct (choose only one):

A. You can categorically state that you have the optimal solution to the integer optimization problem.
B. You can categorically state that you do not have the optimal solution to the integer optimization problem.
C. None of the above.

Here are comparative statement data for Ivanhoe Company and Pharoah Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.
2017 2016 2017 2016
(Ivanhoe (Ivanhoe (Pharoah (Pharoah
Company) Company) Company) Company)
Net sales $1,865,000 $595,000
Cost of goods sold 1,064,000 279,000
Operating expenses 252,000 84,000
Interest expense 8,000 1,800
Income tax expense 70,900 35,000
Current assets 583,495 $559,214 149,171 $142,246
Plant assets (net) 942,972 895,000 250,113 225,203
Current liabilities 118,722 135,709 63,273 54,203
Long-term liabilities 204,042 161,100 53,020 44,750
Common stock, $10 par 895,000 895,000 214,800 214,800
Retained earnings 308,703 262,405 68,192 53,696
Required:
Prepare a vertical analysis of the 2017 income statement data for Ivanhoe Company and Pharoah Company.

Swiss Group reports net income of $26,000 for 2017. At the beginning of 2017, Swiss Group had $184,000 in assets. By the end of 2017, assets had grown to $234,000. What is Swiss Group's 2017 return on assets?

At the beginning of a semester, a group of five students (Marcus, Gerard, Penelope, Zendaya, and Duane) are asked to order a snack that the teacher will deliver to the students free of charge before the first class of the tenth week of the semester. The three choices are an apple, a banana, or a Snickers candy bar. The teacher collects the orders and finds that two students have ordered an apple, two students have ordered a banana, and one student has ordered a Snickers candy bar. The four students who ordered either an apple or a banana cite health consciousness as the reason for their choice. Immediately before the orders are scheduled to be delivered, the teacher informs the students that they can switch their choice and order something else from the original menu if they wish, or they can receive what they originally ordered. Which of the following scenarios is the best example of inconsistent intertemporal decision-making?A. Gerard ordered a banana and switched to an apple when prompted.
B. Duane ordered a Snickers candy bar and did not change his choice when prompted.
C. Penelope ordered an apple and switched to a banana when prompted.
D. Zendaya ordered a banana and switched to a Snickers candy bar when prompted.
E. Marcus originally ordered an apple and did not change his choice when prompted.

Gena Manufacturing Company has a fixed cost of $259,000 for the production of tubes. Estimated sales are 153,400 units. A before tax profit of $126,034 is desired by the controller. If the tubes sell for $22 each, what unit contribution margin is required to attain the profit target?

Q1 The following is a description of the conversion cycle of Central Production Limited: The conversion cycle of the company is triggered by a report from the warehouse. When the quantity of an inventory item falls below a pre-set minimum level, the warehouse manager sends an online inventory status report to production department advising them to schedule a production batch run for the item. Upon receipt of the report, the production clerk assesses the digital bill of materials and the route sheet files for the item to be produced and adds the production details to the online production schedule. The system automatically adds a record to the open work order file and sends an online work order to the work centre supervisor’s computer and to the accounting clerk’s computer. The work centre supervisor receives the work order from his computer and print hard-copy move tickets and materials requisitions for each production process. Production employees take the materials requisitions to store clerk and receives the materials and subassemblies needed to perform the production tasks. If additional materials beyond the standard amount is needed, the work centre supervisor prepares additional materials requisitions. Production employees complete job time tickets after completing a production process to record the time spent on the job. The job time tickets are then sent together with the move tickets to the accounting department. After releasing the materials into production, the store clerk updates the material inventory records and send the materials requisitions to accounting department. The clerk prepares a journal voucher and posts to the general ledger material control account at the end of each day. The accounting clerk assesses the work orders and set up a work-in-process account for a production batch. Throughout the production period, the clerk also receives move tickets, job tickets, and materials requisitions, which he uses to post to the work-in-process account. At the end of each day, the accounting clerk prepares a digital journal voucher and post it to the general ledger work-inprocess and finished goods control accounts. Q) Identify the risks exist in the conversion cycle of Central Production Limited. (10 marks 300 words) Q3 Elegant Limited sells restored classic cars. Most of its customers are private buyers who buy cars for themselves. However, some of them are investors who buy multiple cars and hold them for resale. All sales of Elegant Limited are for cash. Depict the association and cardinality for the sales of cars at Elegant Limited based on REA model. (10 marks, maximum 300 words) Q4 You are currently working in a mid-tier accounting firm. In an engagement meeting with a client, the management of your client is concerned that the audit tests that you perform will disrupt operations. Your client has recently implemented a data warehouse and the management suggests that you draw the data for analytical reviews and substantive testing from the data warehouse instead of the operational database. The management points out that operational data are copied weekly into the data warehouse and all data you need are contained there. Outline your response to the management’s proposal and mention any concerns you might have. (10 marks, maximum 300 words) Q5 The Chief Information Officer (CIO) and the Managing Director (MD) of Illustrious Limited recently had the following conversation regarding the development of a new information system for the company: CIO: The way to go about the analysis is to first examine the old system, such as reviewing key documents and observing the workers performing their tasks. Then we can determine which aspects are working well and which should be preserved. MD: We have been through these types of projects before, and what always ends up happening is that we do not get the new system we are promised. Instead we get a modified version of the old system. CIO: I can assure you that will not happen this time. My team just want a thorough understanding of what is working well and what is not. MD: I would feel much more comfortable if we first started with a list of our requirements. We should spend more time in determining what exactly we want the system to do upfront. Then your team can come in and determine what portions to salvage if you wish. Just don’t constrain us to the old system! Required: a) The CIO and MD have different views on how the system analysis should be performed. Comment on whose position you sympathise with the most. (6 marks, maximum 200 words) b) What method would you recommend to Illustrious Limited for system analysis? Explain. (4 marks, maximum 150 words)

A local radio commercial costs $600 and reaches an estimated 10,250 listeners. A local cable commercial costs $1000 and reaches an estimated 18,500 viewers. Which medium provides the lowest CPM?


a. The radio commercial
b. The cable commercial
c. The radio and cable commercials have the same CPM
d. The CPM cannot be calculated given the limited information provided
e. None of the above

A company currently pays a dividend of $3.4 per share (D0 = $3.4). It is estimated that the company's dividend will grow at a rate of 17% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.3, the risk-free rate is 6.5%, and the market risk premium is 1.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

Chen Company's account balances at December 31, 2017 for Accounts Receivable and the Allowance for Doubtful Accounts are $800,000 debit and $1,500 credit. Sales during 2017 were $2,750,000. It is estimated that 1% of sales will be uncollectible. The adjusting entry would include a credit to the allowance account for:___________.
A) $29,000.
B) $27,500.
C) $26,000.
D) $8,000.

your investment has a 20% chance of earning 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance of losing 7%. what is your expected return on investment

The evaluation of a firm's strengths, weaknesses, opportunities, and threats is called a SWOT analysis. A SWOT analysis can be a valuable tool in the development of a marketing plan, but too often the SWOT analysis is not well thought out and proves to be an ineffective waste of time. Perhaps the most common mistake when conducting a SWOT analysis is the failure to separate internal issues from external issues. The strengths and weaknesses aspects of the SWOT analysis focus on internal capabilities. The opportunities and threats aspects focus on the external environment. Select the most appropriate category for the descriptors below.1. Post office closings2. JPM has the superior information technology infrastructure3. Increasing demand for international packages4. JPM has an excellent workforce and human resource department5. Potential global economic recession6. JPM has increasing labor costs7. JPM has less fuel-efficient planes8. Increasing fuel costs due to turmoil in the Middle East

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $ 60 comma 000 for proposal A and $ 75 comma 000 for proposal B. The variable cost is $ 12.00 for A and $ 10.00 for B. The revenue generated by each unit is $ 22.00.

Required:
a. What is the break-even point in units for proposal A?
b. What is the break-even point in units for proposal B?

How is each of the following likely to be affected by a recession:

a. the natural unemployment rate.
b. the cyclical unemployment rate.
c. the inflation rate.
d. the poll ratings of the president

Select the best closing paragraph of a bad-news letter. a. Once again, we want to express how sorry we are that we are not able to offer you the position. b. We wish you the best in your job search. c. If you have further questions about this decision, please feel free to call me immediately. d. We regret that we are unable to consider your application

Hi-Tech, Inc., reports net income of $65.0 million. Included in that number are depreciation expense of $5.5 million and a loss on the sale of equipment of $1.5 million. Records reveal increases in accounts receivable, accounts payable, and inventory of $2.5 million, $3.5 million, and $4.5 million, respectively. What are Hi-Tech's net cash flows from operating activities?

Peterson Corporation wanted to run an ad campaign that featured popular songs sung by the original singer. The aim was to make an emotional connection with people who remembered the songs. When Bette was approached to sing for the commercial, she refused saying she did not "do" commercials. Peterson Corporation still wanted to use the song, so they hired a backup singer for Bette and she was told to "sound as much as possible like the Bette record." The backup singer did the commercial, and people, even close acquaintances of Bette, thought it was her. Bette sued Peterson Corporation for wrongfully appropriating her likeness.

Required:
Is this a valid example of misappropriation. Why or why not.

Strait Co. manufactures office furniture. During the most productive month of the year, 3,300 desks were manufactured at a total cost of $82,000. In the month of lowest production, the company made 1,130 desks at a cost of $59,000. Using the high-low method of cost estimation, total fixed costs are

Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley issued $1,400,000 of 5-year, 6% bonds at a market (effective) interest rate of 3%, receiving cash of $1,593,666. Interest is payable semiannually on April 1 and October 1.

Required:
a. Journalize the entries to record the following.

1. Issuance of bonds on April 1, Year 1.
2. First interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.)

b. Explain why the company was able to issue the bonds for $22,282,220 rather than for the face amount of $21,300,000.

Calisto Launch Services is an independent space corporation and has been contracted to develop and launch one of two different satellites. Initial equipment will cost $750,000 for the first satellite and $850,000 for the second. Development will take 5 years at an expected cost of $150,000 per year for the first satellite; $120,000 per year for the second. The same launch vehicle can be used for either satellite and will cost $275,000 at the time of the launch 5 years from now. At the conclusion of the launch, the contracting company will pay Calisto $2,500,000 for either satellite. Calisto is also considering whether they should consider launching both satellites. Because Calisto would have to upgrade its facilities to handle two concurrent projects, the initial costs would rise by $150,000 in addition to the first costs of each satellite. Calisto would need to hire additional engineers and workers, raising the yearly costs to a total of $400,000. An additional compartment would be added to the launch vehicle at an additional cost of $75,000. As an incentive to do both, the contracting company will pay for both launches plus a bonus of $1,000,000. Using a present worth analysis with a MARR of 10 percent/year, what should Calisto Launch Services do?

Data related to the inventories of Kimzey Medical Supply are presented below: Surgical Equipment $ 260 170 Surgical Supplies $ 120 Selling price Cost Replacement cost Costs to sell Normal gross profit ratio 90 Rehab Equipment $ 340 250 235 25 30 % Rehab Supplies $ 165 162 158 240 80 30 30% 10 30 % 20 % In applying the lower of cost or market rule, the inventory of surgical equipment would be valued at:_________
A) $170.
B) $152.
C) $230.
D) $240.

You just made the last monthly payment on a 30 year mortgage -- the house is yours! In your joyous moment, you calculate how much you made in payments over those 30 years, and it is $647,514! If your interest rate was an APR of 6%, and you made equal monthly payments, how much did you originally borrow for this house

Required: Using the adjusted trial balance on the next page for Buttross Manufacturing, Inc., prepare statements for the fiscal year ended September 30, 2020, in good form:
Part 1: Prepare a Statement of Cost of Goods Manufactured
Part 2: Prepare a Multiple-Step Income Statement
Aside: The general ledger would usually include a factory overhead control account and the detail of factory overhead would be in a subsidiary ledger. However, the detail of factory overhead has been put into the adjusted trial balance mixed with the other accounts to make sure you can distinguish accounts going into cost of goods manufactured from those going into the income statement.

Mountain High Ice Cream Company transferred $63,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,300). Mountain High anticipates a $3,300 recourse obligation. The bank charges a 3% fee (3% of $63,000), and requires that amount to be paid at the start of the factoring arrangement. Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Stritch Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 20% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 24,000 units, 14,000 units, and 34,000 units, respectively. How many units must be purchased in September

A company incurred the following transactions:
a. Wages of $2,750 accrued at the end of the prior fiscal period were paid this fiscal period.
b. Real estate taxes of $7,350 applicable to the current period have not been accrued.
c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $870,000 of 7.5% bonds.
d. The premium related to the bonds in part c has not been amortized for the current month. The current-month amortization is $145.
e. Based on past experience with its warranty program, the estimated warranty expense for the current period should be 0.2% of sales of $1,261,500.
f. Analysis of the company's income taxes indicates that taxes currently payable are $191,400 and that the deferred tax liability should be increased by $70,470.
Show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income statement by selecting the amount and indicating whether it is an addition (+) or a subtraction (−).
Transaction/Adjustment (a-f). Current Assets, Current Liabilties, Long-term debt, Net Income

Identify the financial statement​ (or statements) that each account would appear on. Use I for Income​ Statement, RE for Statement of Retained​ Earnings, B for Balance​ Sheet, and C for Statement of Cash Flows.

1. Accounts Payable
2. Cash
3. Common Stock
4. Accounts Receivable
5. Rent Expense
6. Service Revenue
7. Office Supplies
8. Dividends
9. Land
10. Salaries Expense

Suppose that the Federal Reserve decides to increase the money supply with a $300 purchases of Treasury bills. Complete the tables that represent the financial position of the Federal Reserve and commercial banks after this open-market operation. Be sure to use a negative sign for reduced values.For the Federal Reserve, what are assets? What are liabilities?

Presented below are two independent situations: A) Sandhill Inc. acquired 10% of the 420,000 shares of common stock of Schuberger Corporation at a total cost of $15 per share on June 17, 2020. On September 3, Schuberger declared and paid a $120,000 dividend. On December 31, Schuberger reported net income of $520,000 for the year. B) Blue Corporation obtained significant influence over Hunsaker Company by buying 30% of Hunsaker’s 120,000 outstanding shares of common stock at a cost of $18 per share on January 1, 2020. On May 15, Hunsaker declared and paid a cash dividend of $120,000. On December 31, Hunsaker reported net income of $220,000 for the year. Prepare all necessary journal entries for 2017 for (a) Edelman and (b) Wen.

Bev is opening her own court-reporting business. She financed the business by withdrawing money from her personal savings account. When she closed the account, the bank representative mentioned that she would have earned $300 in interest next year. If Bev hadn't opened her own business, she would have earned a salary of $25,000. In her first year, Bev's revenues were $30,000, and she spent $1,000 on materials and supplies. Which of the following statements is correct?a) Bev's total explicit costs are $25,300.
b) Bev's total implicit costs are $300.
c) Bev's accounting profits exceed her economic profits by $300.
d) Bev's economic profit is $4,700.

During step 3 of activity-based costing, activity overhead cost pool rates are used to assign overhead costs to final cost objects. Proper determination of activity rates depends on all of the following: proper calculation of total overhead costs proper assignment of costs to cost objects proper determination of factors which drive costs proper measurement of activities Rate your confidence to submit your answer.