Required information [The following information applies to the questions displayed below.] Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations. Events Affecting Year 1: 1. Provided $130,000 of cleaning services on account. 2. Collected $97,500 cash from accounts receivable. 3. Paid salaries of $44,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,400. The expense was determined using the percent of revenue method.
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- A review of the accounting records of Solomon Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$32,100. 2. Salary of the vice president of manufacturing-$16,200. 3. Salary of the chief financial officer-$17,900. 4. Salary of the vice president of marketing-$16,000. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$202,000. 6. Wages of production workers-$935,000. 7. Salaries of administrative secretaries-$104,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$172,000. 9. Commissions paid to sales staff-$243,000. Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Solomon made 4,900 units of product and sold 4,165 of them during the month of March, determine the amount of payroll…During its first year of operations, G Company provides services on account of $250,000. By the end of the year, cash collections on these accounts total $130,000. The company estimates that 10% of accounts receivable will be uncollectible at the end of the year. On March 13, G Company writes off a customer's account of $3,800. On June 3, the customer unexpectedly pays the $3,800 balance. Required: a) Determine the uncollectible accounts expense for the year b) The balance in Allowance for Doubtful Accounts c) The net realizable value of the accounts receivable d) Explain the relationship of Accounts Receivable and Allowance for Doubtful accounts and what type of questions can be answered by analyzing these two (2) items when checking the company's balance sheetA review of the accounting records of Baird Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$75,000. 2. Salary of the vice president of manufacturing-$50,000. 3. Salary of the chief financial officer-$42,000. 4. Salary of the vice president of marketing-$40,000. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$147,000. 6. Wages of production workers-$703,500. 7. Salaries of administrative secretaries-$60,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$133,500. 9. Commissions paid to sales staff-$146,000. Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Baird made 5,000 units of product and sold 4,000 of them during the month of March, determine the amount of payroll cost…
- A review of the accounting records of Benson Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$31,400. 2. Salary of the vice president of manufacturing—$15,100. 3. Salary of the chief financial officer-$17,900. 4. Salary of the vice president of marketing-$14,800. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$186,000. 6. Wages of production workers-$933,000. 7. Salaries of administrative personnel-$106,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$171,000. 9. Commissions paid to sales staff-$261,000. Required a. What amount of payroll cost would be classified as SG&A (selling, general, and administrative) expense? b. Assuming that Benson made 3,100 units of product and sold 2,170 of them during the month of March,…A review of the accounting records of Stuart Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$31,200. 2. Salary of the vice president of manufacturing-$16,600. 3. Salary of the chlef financial officer-$17,900. 4. Salary of the vice president of marketing-$15,900. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$194,000. 6. Wages of production workers-$937,000. 7. Salaries of administrative personnel-$105,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$173,000. 9. Commissions paid to sales staff-$252,000. Required a. What amount of payroll cost would be classified as SG&A (selling, general, and administrative) expense? b. Assuming that Stuart made 3,600 units of product and sold 3,240 of them during the month of March,…Ferraro Consulting provides risk management services to individuals and to corporate clients. The company closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report: FERRARO CONSULTING INCOME STATEMENT FOR THE YEAR ENED DCEMBER 31, 2011 Revenue: Consulting revenue—individual clients $ 40,000 Consulting revenue—corporate clients 160,000 $200,000 Expenses: Advertising expense $16,000 Depreciation expense: computers 24,000 Rent expense 9,600 Office supplies expense . .• 4,400 Travel expense 57,800 Utilities expense 3,300 Telephone and Internet expense 1,900 Salaries expense 155,500 Interest expense 2,500 275,000 Net loss $ (75,000) The firm's statement of retained earnings indicates that a $25,000 cash dividend was declared and paid in 2011. a. Prepare the…
- The accounting records and bank statement of Orison Supply Store provide the following information at the end of April. The closing 'Cash' account balance was $28,560, and the bank statement shows a closing balance of $32,000. On reviewing the bank statement it is found an account customer has deposited $2,000 into the bank account for a March sale and the monthly insurance premium of $4,500 was automatically charged to the account. Interest of $5,10 was paid by the bank and a bank fee of $50 was charged to the account. A payment of $1,500 to a supplier has been recorded twice in the accounts. After the ,calculation of the "ending reconciled cash balance", what is the balance of the 'cash' account?A review of the accounting records of Campbell Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$32,300. 2. Salary of the vice president of manufacturing-$15,700. 3. Salary of the chief financial officer-$19,200. 4. Salary of the vice president of marketing-$15,700. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$199,000. 6. Wages of production workers-$940,000. 7. Salaries of administrative secretaries-$102,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$169,000. 9. Commissions paid to sales staff-$260,000. Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Campbell made 4,500 units of product and sold 3,825 of them during the month of March, determine the amount of payroll…Stingers Inc. provides audited financial statements to its creditors and management receives a bonus partially based on revenues for the year An order for $61,500 was received from one of its regular customer on December 29, for products on hand. This order was shipped f.o.b. shipping point on January 9, 2021. The company made the following entry for 2020: Accounts Receivable 61,500 Sales Revenue 61,500 INSTRUCTIONS - DETERMINE HOW REVENUE SHOULD BE RECORDED UNDER EACH ALTERNATIVE a. Assume the company follows ASPE, provide a GAAP supported-case specific analysis. b. Assume the company follows IFRS, provide a GAAP supported-case specific analysis.
- Pen Supply Corp. began operations on March 1, 20Y5. On this date, the company paid for the following expenses: legal fees related to organization, $5,000; rent for the upcoming month, $1,500; license fees, $2,000; promotional costs, $1,200; and insurance for the fiscal year, $9,000. Prepare the journal entry to record the organizational expenses paid.During its first year of operations, Cooper Company bills credit customers $19,800 for services rendered. During the year, Cooper receives $16,500 from all customers, $3,700 of which is received from cash customers. Required: What amount of revenue should be shown on the income statement for the year?Answers are given. Only need solution for the answers. 16. Listed below are selected transactions of Lychee’s Department Store for the current year endingDecember 31.1. On December 5, the store received P4,500 from the Fruit Players as a deposit to be returnedafter certain furniture to be used in stage production was returned on January 15 the followingyear.2. During December, cash sales totaled P798,000, which includes the 12% VAT that must beremitted to the BIR by the 5th day of the following month.3. The store determined it will cost P100,000 to restore the area surrounding one of its buildingwhen the store is closed in 4 years. The present value of restoration is P64,000.4. As a result of uninsured accidents during the year, personal injury suits for P350,000 andP60,000 have been filed against the company. It is the judgment of Lychee’s legal counsel thatan unfavorable outcome is unlikely in the P60,000 case but that an unfavorable verdictapproximating P250,000 (reliably estimated)…