CIA Review, Inc. provides review courses twice each year for students studying to take the CIA exam. The cos included in the registration fee. Text material requires constant updating and is useful for only one course. To and ensure availability of books on the first day of class, CIA Review has books printed and delivered to its of advance of the first class. To ensure that enough books are available, CIA Review normally orders 10 percent enrollment. Usually there is an oversupply and books are thrown away. However, demand occasionally excee than 10 percent and there are too few books available for student use. CIA Review has been forced to turn aw a lack of textbooks. CIA Review expects to enroll approximately 200 students per course. The tuition fee is $2 cost of teachers is $50,000 per course, textbooks cost $150 each, and other operating expenses are estimate course. Assume all financial statements data are prepared in accordance with GAAP. Required a. Prepare an income statement, assuming that 200 students enroll in a course. Determine the cost of wast books. b-1. Prepare an income statement, assuming that 240 students attempt to enroll in the course, but 20 student because of too few textbooks. b-2. Prepare an income statement, assuming that 240 students attempt to enroll in the course, with all being b-3. Determine the amount of lost profit resulting from the inability to serve the twenty additional students.

On January 1 of the current year, Herkimer & Co. purchases, a group of 7 laptops for its new hires. The laptops are purchased for $2,300 each with a residual value of $500 each. Herkimer expects the laptops to be used for 3 years. At the end of the current year, Herkimer & Co. sells two laptops for $1,700 each. Required:   Prepare the journal entries to record the purchase of the laptops, the depreciation on the laptops, and the sale of the laptops in Year 1.

Each year in May, P.A.M. Cosmetics (Professional Artistry Makeup) launches a selection of limited edition lipsticks. To ensure these lipsticks are in stock in time for the launch, orders must be placed with manufacturers in November. Because these lipsticks are limited edition and require 6 months of lead-time, P.A.M. Cosmetics will not reorder more units if they completely sell out. It costs P.A.M. Cosmetics $5.30 to produce each lipstick, and the selling price is $16. In the event that there are leftover units after the launch period (1 month), there will be a price markdown of 40 percent. In the past, demand for these yearly limited edition lipsticks has been 58,000 units. However, P.A.M. Cosmetics has initiated several social media campaigns to create more hype for new products. 1. Construct a spreadsheet model to analyze this situation. Use an order quantity of 70,000 and a demand of 62,000 for your base case values. Be sure to explain what assumptions you made while constructing…

Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. At the end of 2020, accounts receivable were $574,000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2021 was as follows:          Beginning balance $ 574,000   Credit sales   2,620,000   Collections   (2,483,000 ) Write-offs   (68,000 ) Ending balance $ 643,000     The company’s controller prepared the following aging summary of year-end accounts receivable:      Summary Age Group   Amount Percent Uncollectible 0–60 days $ 430,000 4 % 61–90 days   98,000 15   91–120 days   60,000 25…

Please answer all questions in their entirety. Please remember to use exact terminology and make the answers clear.   The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school.   These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $19.00 each with a minimum order of 180 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 180.   Since Hooper’s plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $38.00 each. Hooper would pay the students a commission of $5.00 for…

The Customer Service Department of Door Industries Inc. asked the Publications Department to prepare a brochure for its training program. The Publications Department delivered the brochures and charged the Customer Service Department a rate that was 25% higher than could be obtained from an outside printing company. The policy of the company required the Customer Service Department to use the internal publications group for brochures. The Publications Department claimed that it had a drop in demand for its services during the fiscal year, so it had to charge higher prices in order to recover its payroll and fixed costs. Recommend how the cost of the brochure should be transferred to the Customer Service Department.

The Woodson Theater sells season theater tickets for $300 each. Each ticket entitles the customer to attend 5 plays. The first play will be in December. On December 1, 20X1, 400 season tickets were sold for $300 each in cash.During December, the first play out of the five was shown. The remaining plays will be shown next year.Required: Assuming all journal entries and adjusting entries have been made in 20X1, answer the following two questions. Note: Do not use decimals or cents in your response. Question #1: What should be the amount of "Ticket Revenue" the theater reports on its income statement for 20X1? Answer: Question #2: What should be the "Deferred Ticket Revenue" balance reported on the balance sheet at 12/31/X1? Answer:

Brushstroke Art Studio, Inc., provides quality instruction to aspiring artists. The business adjusts its accounts monthly, but performs closing entries annually on December 31. This is the studio’s unadjusted trial balance dated December 31, current year. Other Data1. Supplies on hand at December 31, current year, total $1,000. 2. The studio pays rent quarterly (every three months). The last payment was made November 1, current year. The next payment will be made early in February, next year. 3. Studio equipment is being depreciated over 120 months (10 years). 4. On October 1, current year, the studio borrowed $24,000 by signing a 12-month, 12 percent note payable. The entire amount, plus interest, is due on September 30, next year. 5. At December 31, current year, $3,000 of previously unearned client fees had been earned. 6. Accrued, but unrecorded and uncollected client fees earned total $690 at December 31, current year. 7. Accrued, but unrecorded and unpaid salary expense totals…

Feel free to help yourself to the delectable desserts in the break room until such time as they are all consumed. Complete the sentence with the most concise option. All division meetings are canceled this week. Read the following paragraph, and choose the best revision for one of its sentences. Dr. Blake is retiring at the end of the month, There will be an unoccupied office upon his departure, and it is big in size. Because every other office is occupied, we should convert Dr. Blake's office into a lounge. It is absolutely essential that this issue is discussed at the next staff meeting. We need to discuss all of this at the next meeting. O we need to discuss this essential issue at the meeting.

Academia Press produces textbooks for high school accounting courses. The company recently hired a new editor, Billie Green, to handle production and sales of books for an introductory accounting course. Billie's compensation depends on the gross margin associated with sales of this book. Billie needs to decide how many copies of the book to produce. The following information is available for the fall semester 2020: (Click the icon to view the information.) Billie has decided to produce either 22,000, 27,500, or 29,700 books. Read the requirements. Requirement 1. Calculate expected gross margin if Billie produces 22,000, 27,500, or 29,700 books. (Make sure you include the production-volume variance as part of cost of goods sold.) Calculate the gross margin for each level of production. Begin with 22,000 books, then 27,500 books, and lastly 29,700 books. (Enter a "0" for any zero balance accounts. If an account does not have a variance, do not select a label.) 22,000 books Revenues Cost…