iejol Corporation has collected the following information after
its first year of sales. Sales were $1,200,000...
iejol Corporation has collected the following information after
its first year of sales. Sales were $1,200,000 on 100,000 units,
selling expenses $210,000 (40% variable and 60% fixed), direct
materials $492,000, direct labor $21,000, administrative expenses
$276,000 (20% variable and 80% fixed), and manufacturing overhead
$354,000 (70% variable and 30% fixed). Top management has asked you
to do a CVP analysis so that it can make plans for the coming year.
It has projected that unit sales will increase by 10%...
14 Compare the reasons for the changes in
return on equity for Eastnorth Manufacturing and its...
14 Compare the reasons for the changes in
return on equity for Eastnorth Manufacturing and its industry.
Balance Sheets for INDUSTRY:
December 31
2017
2016
2015
ASSETS
Cash and marketable securities
$30,000
$25,000
$20,000
Accounts receivable
110,000
90,000
60,000
Inventories
100,000
80,000
80,000
Total current assets
240,000
195,000
160,000
Gross plant and equipment
250,000
220,000
200,000
Less: accumulated depreciation
−100,000
−65,000
−50,000
Net plant and equipment
150,000
155,000
150,000
Land
50,000
50,000
50,000
Total fixed assets
200,000
205,000
200,000
Total...
Listed below are several transactions that took place during the
first two years of operations for...
Listed below are several transactions that took place during the
first two years of operations for the law firm of Pete, Pete, and
Roy.
Year 1
Year 2
Amounts billed to clients for
services rendered
$
170,000
$
220,000
Cash collected from clients
160,000
190,000
Cash disbursements
Salaries paid to employees for
services rendered during the year
90,000
100,000
Utilities
30,000
40,000
Purchase of insurance
policy
60,000
0
In addition, you learn that the company incurred utility costs of
$35,000...
The LaGrange Corporation had the following budgeted sales for
the first half of the current year:...
The LaGrange Corporation had the following budgeted sales for
the first half of the current year:
Cash Sales
Credit Sales
January
$
60,000
$
160,000
February
$
65,000
$
180,000
March
$
33,000
$
140,000
April
$
28,000
$
113,000
May
$
38,000
$
210,000
June
$
90,000
$
70,000
The company is in the process of preparing a cash budget and
must determine the expected cash collections by month. To this end,
the following information has been assembled:
Collections...
During its first year of operations, Middleton Products Inc. had
sales of $850,000, all on account....
During its first year of operations, Middleton Products Inc. had
sales of $850,000, all on account. Industry experience suggests
that Middleton Products uncollectibles will amount to 5% of ending
accounts receivable. At the end of the first year, December 31,
2019, Middleton Products’ accounts receivable total $80,000. The
company will use the allowance method to account for
uncollectibles.
During 2020, Middleton Products completed the following
transactions:
i) Credit Sales, $1,200,000
ii) Collections on account, $960,000
iii) Write-offs of uncollectibles, $2,800...
During its first year of operations, Bebo's Corporation had the
following transactions pertaining to its common...
During its first year of operations, Bebo's Corporation had the
following transactions pertaining to its common stocks:
Jan 10: Issued 90,000 shares for cash at $10 per share
July 1: issued 50,000 shares for cash at $20 per share
Instructions
(a) Journalize the transactions, assuming that the common stock
has a par value of $10 per per share.
(b) Journalize the transactions, assuming that the common stock
is no-par with a stated value of $5 per share.
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts receivable 50,000 30,000
Inventory 50,000 70,000
Property, plant and equipment (net) 160,000 200,000
Total assets $300,000 $400,000
Liabilities and stockholders equity
Accounts payable $20,000 $30,000
Short term notes payable 40,000 90,000
Bonds payable 80,000 160,000
Common stock 60,000 45,000
Retained earnings 100,000 75,000
Total liabilities and stockholders equity $300,000 $400,000
Income statement (for the year ended December 31, 2007)
Net sales $360,000
Cost...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts receivable 50,000 30,000
Inventory 50,000 70,000
Property, plant and equipment (net) 160,000 200,000
Total assets $300,000 $400,000
Liabilities and stockholders equity
Accounts payable $20,000 $30,000
Short term notes payable 40,000 90,000
Bonds payable 80,000 160,000
Common stock 60,000 45,000
Retained earnings 100,000 75,000
Total liabilities and stockholders equity $300,000 $400,000
Income statement (for the year ended December 31, 2007)
Net sales $360,000
Cost...
The Comparative Balance Sheet for SOX Company showed the
following information. Additional information concerning
transactions and...
The Comparative Balance Sheet for SOX Company showed the
following information. Additional information concerning
transactions and events during 2018 are presented below.
SOX Company
Balance Sheet
October 31
Change
2018
2017
Cash and cash equivalents
$35,900
$10,200
Accounts receivable
48,300
20,300
Inventory
33,000
40,500
Prepaid expenses
2,000
1,500
Long-term investments
0
15,000
Property, plant & equipment
236,500
150,000
Accumulated depreciation
(37,700)
(25,000)
Net Property, plant & equipment
198,800
125,000
Total Assets
$318,000
$212,500
Accounts payable
$10,000
$26,500
Accrued liabilities...
The city of Charleston had the following sales of water for the
selected months of 2017:...
The city of Charleston had the following sales of water for the
selected months of 2017:
Month
Sales
February
$60,000
March
45,000
April
60,000
May
42,500
June
100,000
July
120,000
All sales are on credit. Historically, 60 percent is collected
in the month of sale, 30 percent during the first month following
the sale, and 10percent in the second month following the sale.
Water purchases by month are as follows:
Month
February
$60,000
March
40,000
April
45,000
May
59,750
June...