Choose the correct impacts to the accounting equation below: During the first two weeks of operations 47 lawns were mowed. The total revenue for this work was $3,525; $2,325 was collected in cash and the balance will be received in 30 days. [Select] [Select] [Select]

Choose the correct impacts to the accounting equation below: During the first two weeks of operations 47 lawns were mowed. The total revenue for this work was $3,525; $2,325 was collected in cash and the balance will be received in 30 days. [Select] [Select] [Select]

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Your Question: Assume the Scenic Rivers Commission (a federal agency) began the fiscal year with the following account balances: SCENIC RIVERS COMMISSION Trial Balance October 1, 2023 Debits Credits Fund Balance with Treasury $164,000 Supplies 107,000 Equipment 1,363,000 Accumulated Depreciation $483,000 Accounts Payable 129,000 Wages Payable 84,000 Cumulative Results of Operations 938,000 $1,634,000 $1,634,000 Congress passed a spending bill providing $15,600,000 to fund the agency’s operations for the year. During the first quarter, the commission processed (accounts payable) the following items for payment. Supplies 258,000 Equipment 510,000 Contracted services 1,710,000 Total $2,478,000 The commission processed wages and benefits through wages payable in the amount of $707,000. Unexpended appropriations were reclassified to expended appropriations for the items above. Accounts payable of $2,530,000 and wages payable of…
Capital Expenditures and Revenue Expenditures Quality Move Company made the following expenditures on one of its delivery trucks: Mar. 20. Replaced the transmission at a cost of $6,345. June 11. Paid $915 for installation of a hydraulic lift. Nov. 30. Paid $49 to change the oil and air filter. Prepare the journal entries for each expenditure. If an amount box does not require an entry, leave it blank. Mar. 20 June 11 Nov. 30 heck My Work Previous Next All work saved. Save and Exit Submit Assignment for Grac
! /transcript Skip to question Required information Alamo Power historically allocates IDC for its safety program to generation facilities in Cities A and B based on the number of employees. Last year, $300,000 was distributed and the employee count was 790 in city A and 450 in city B. Implementation of the ABC method took place this year to allocate IDC on the basis of number of accidents. City A reported 320 events and city B had 142 accidents reported. Determine the allocation based on the number of accidents. The allocation based on the number of accidents is as follows: City A = $191129.03 City B = $ 108870.91
Start up expenses: To start the gym, the initial total investment required is $162,544.55EC. This figure includes all operational costs for the first month, including equipment costs, legal fees for drafting partnership contracts, business registration fees, renovation costs for painting the space and installing fixtures, mirrors, front desk etc. This figure also includes all operational costs for the next six months which is comprised mostly of rent and salaries. Between January and June 2022, the gym is expected to generate a loss since it is a new entity and therefore the partners have found it necessary to have enough capital on to cover the expenses for these months. To attain a loan from the National Bank of Dominica Ltd, at least 10% equity and 20% collateral is required. Therefore, all five partners have come to the agreement to each invest $18,000 EC. Cumulatively, equity in the business would be $90,000. This equity will fully cover the cost of equipment ($58,544.28c) which…
7/26/2021 Content The hospital where you are employed is continuing with their analysis with the goal of opening a walk- in clinic. After conducting additional research, the financial projections for the first year of operations are as follows: • Revenues (from 10,000 visits): $400,000 Wages and benefits: $220,000 • Rent: $5,000 Depreciation: $30,000 Utilities: $2,500 • Medical supplies: $50,000 Administrative supplies: $10,000 Assume that all costs are fixed except supply costs, which are variable. Assume that the clinic will be required to pay taxes at a 30% tax rate. Respond to the following questions. Be sure to show your work for all calculations. 1. Prepare the clinic's projected Profit and Loss (P&L) Statement. (8 points) 2. What number of visits is required to break even? (3 points) 3. What number of visits is required to provide you with an after-tax profit of $100,000? (4 points)
Last year, Stone Builders, Inc. started work on a P10,600,000 construction contract which was completed this year. It has consistently used the percentage of completion method of recognizing income. Accounting data provided last year were as follows: Debit: Progress Billings P4,300,000; Credits: Cost incurred 3,450,000 Collections 3,900,000 Estimated cost to complete 3,630,000 What amount of this contract was recognized last year?
Last year, Stone Builders, Inc. started work on a P10,600,000 construction contract which was completed this year. It has consistently used the percentage of completion method of recognizing income. Accounting data provided last year were as follows: Debit: Progress Billings P4,300,000; Credits: Cost incurred 3,450,000 Collections 3,900,000 Estimated cost to complete 3,630,000 What amount of this contract was recognized last year? Brave Corporation authorized Heart on January 1, 2010 to operate as a franchisee for an initial franchise fee of P2,500,000. Of this amount, P1,500,000 was received upon signing of the contract and the balance is due in two equal annual payments beginning January 1, 2011. The contract provides that the nonrefundable downpayment represents fair measure of the services already performed, however, substantial performance is still required of Brave. Collectibility of the note is reasonably certain. If the present value of the two annual payments is P895,000,…
Solve the following problem in good accounting form. During 2009, Mason Construction, Inc. started work on a P 5,200,000 fixedprice construction contract to be completed in two years. The accounting records disclosed the following data for the year ended December 31, 2009: Cost incurred P 2,650,000Estimated cost to complete 2,720,000Progress billings 2,500,000Collections 2,000,000. What amount of net income or loss should have been recognized in 2009?
St. Johns Medical Center (SJMC) has five medical technicians who are responsible for conducting cardiac catheterization testing in SJMCs Cath Lab. Each technician is paid a salary of 36,000 and is capable of conducting 1,000 procedures per year. The cardiac catheterization equipment is one year old and was purchased for 250,000. It is expected to last five years. The equipments capacity is 25,000 procedures over its life. Depreciation is computed on a straight-line basis, with no salvage value expected. The reading of the catheterization results is conducted by an outside physician whose fee is 120 per test. The technicians report with the outside physicians note of results is sent to the referring physician. In addition to the salaries and equipment, SJMC spends 50,000 for supplies and other costs needed to operate the equipment (assuming 5,000 procedures are conducted). When SJMC purchased the equipment, it fully expected to perform 5,000 procedures per year. In fact, during its first year of operation, 5,000 procedures were run. However, a larger hospital has established a clinic in the city and will siphon off some of SJMCs business. During the coming years, SJMC expects to run only 4,200 cath procedures yearly. SJMC has been charging 850 for the procedureenough to cover the direct costs of the procedure plus an assignment of general overhead (e.g., depreciation on the hospital building, lighting and heating, and janitorial services). At the beginning of the second year, an HMO from a neighboring community approached SJMC and offered to send its clients to SJMC for cardiac catheterization provided that the charge per procedure would be 550. The HMO estimates that it can provide about 500 patients per year. The HMO has indicated that the arrangement is temporaryfor one year only. The HMO expects to have its own testing capabilities within one year. Required: 1. Classify the resources associated with the cardiac catheterization activity into one of the following: (1) committed resources, or (2) flexible resources. 2. Calculate the activity rate for the cardiac catheterization activity. Break the activity rate into fixed and variable components. Now, classify each activity resource as relevant or irrelevant with respect to the following alternatives: (1) accept the HMO offer, or (2) reject the HMO offer. Explain your reasoning. 3. Assume that SJMC will accept the HMO offer if it reduces the hospitals operating costs. Should the HMO offer be accepted? 4. Jerold Bosserman, SJMCs hospital controller, argued against accepting the HMOs offer. Instead, he argued that the hospital should be increasing the charge per procedure rather than accepting business that doesnt even cover full costs. He also was concerned about local physician reaction if word got out that the HMO was receiving procedures for 550. Discuss the merits of Jerolds position. Include in your discussion an assessment of the price increase that would be needed if the objective is to maintain total revenues from cardiac catheterizations experienced in the first year of operation. 5. Chandra Denton, SJMCs administrator, has been informed that one of the Cath Lab technicians is leaving for an opportunity at a larger hospital. She met with the other technicians, and they agreed to increase their hours to pick up the slack so that SJMC wont need to hire another technician. By working a couple hours extra every week, each remaining technician can perform 1,050 procedures per year. They agreed to do this for an increase in salary of 2,000 per year. How does this outcome affect the analysis of the HMO offer? 6. Assuming that SJMC wants to bring in the same revenues earned in the cardiac catheterization activitys first year less the reduction in resource spending attributable to using only four technicians, how much must SJMC charge for a procedure?
Required information [The following information applies to the questions displayed below] University Car Wash built a deluxe car wash across the street from campus. The new machines cost $231,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 3 4 5 6 Total Year 1 2. Prepare a depreciation schedule for six years using the double-declining balance reinod (Do not round your intermediate calculations.) Hours Used 2,900 1,800 1,900 2,100 $ 1,900 1,909 UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining Balance Depreciation Expense End of year amounts Accumulated Depreciation Book Value
For the month of July, Blackfly Ltd. experienced/recorded the following transactions • received a $6000 cash payment for work performed & billed the previous • month. replanted an area of northern Alberta forest for which it sent out an invoice totaling $35000 At the beginning of the month, the company had $2000 of trees in inventory ready for planting. During the month the company purchased $7000 tress for planting • at the end of the month it was left with trees still suitable for planting that originally cost $2500. monthly expenses were: $1500 for office rent; $3500 in misc. expenses; • Amortization on the truck and office equipment was calculated to be $1500 • The income tax rate is 10%. Total expenses for the month of July were $24500 $13000
Required information [The following information applies to the questions displayed below.] University Car Wash built a deluxe car wash across the street from campus. The new machines cost $264,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year L234inc 5 6 "Hours Used 2,900 1,300 1,400 2,600 2,400 1,900 Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate culations 1 13 A Next