Business
Reliable Corporation provides computer consulting services to the local community and keeps its accounting records using cash-basis accounting. For the current year, cash was received from customers, $48,000, and cash salaries to employees were paid, $26,000. At the beginning of the year, customers owe Reliable $1,200. By the end of the year, customers owe $7,600. At the beginning of the year, Reliable owes employee salaries of $6,600. At the end of the year, Reliable owes employee salaries of $3,800. Determine cash-basis net income and accrual-basis net income for the current year.
Institute Technologies is choosing new cost drivers for its accounting system. One driver is labor hours, the other is a combination of machine hours for unit variable costs and number of setups for a pool of batch-level costs. Data for the past year follow. Budget Labor hours 200,000 Machine hours 360,000 Number of setups 3,000 Unit variable cost pool $1,600,000 Batch-level cost pool $ 900,000 Actual 200,000 450,000 3,300 $2,000,000 $ 990,000 Assume that the two separate pools are used for Institute. The flexible budget dollar amounts for the actual level of machine hours and actual number of setups are: __________. Unit Variable Cost Pool Batch-Level Cost Pool a) $1,600,000 $900,000b) $1,600,000 $990,000c) $2,000,000 $900,000d) $2,000,000 $990,000e) $2,500,000 $ 0
The ledger of Blue Spruce Company contains the following balances: Retained Earnings $30,500, Dividends $2,500, Service Revenue $50,500, Salaries and Wages Expense $26,500, and Supplies Expense $7,000. The closing entries are as follows: (1) Close revenue accounts. (2) Close expense accounts. (3) Close net income/(loss). (4) Close dividends. Enter the balances in T-accounts, and post the closing entries. Salaries and Wages Expense select an option Bal. enter a debit amount 26500 select an option enter a credit balance Supplies Expense select an option enter a debit amount select an option Bal. enter a credit balance 7000 Service Revenue select an option (1) enter a debit balance 50500 select an option Bal. enter a credit amount 50500 Dividends select an option (4) enter a debit amount 2500 select an option Bal. enter a credit balance 2500 Income Summary select an option enter a debit amount 26500 select an option enter a credit amount 50500 select an option enter a debit balance 7000 select an option enter a credit balance 2500 Retained Earnings select an option enter a debit amount select an option enter a credit amount select an option enter a debit amount select an option enter a credit amount select an option enter a debit balance select an option enter a credit balance
Hoffman Corporation issued $65 million of 5%, 20-year bonds at 104. Each of the 65,000 bonds was issued with 15 detachable stock warrants, each of which entitled the bondholder to purchase, for $26, one share of $1 par common stock. At the time of sale, the market value of the common stock was $31 per share and the market value of each warrant was $4. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Brandon, the Marketing Manager at a public relations firm, suspects that one of his team members, Ross, has been engaging in substance abuse. Brandon has observed that Ross has lately been aggressive at the workplace, is mostly absent, shows low participation, has low productivity, and exhibits other antagonistic behaviors. Brandon wants to help Ross and does not want him to lose his job, as he had been efficient in the past. In this case, if Ross is a confirmed substance abuser, which of the following programs should Brandon consider using to help Ross's situation?a. An employee engagement programb. An employee assistance programc. The Medicaid programd. The Healthy People 2020 program
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $43,000 $52,000 Work in process 10,200 21,300 Finished goods 63,000 35,600 Activities and information for May Raw materials purchases (paid with cash) 210,000 Factory payroll (paid with cash) 345,000 Factory overhead Indirect materials 15,000 Indirect labor 80,000 Other overhead costs 120,000 Sales (received in cash) 1,400,000 Pre-determined overhead rate based on direct labor cost 70% Compute the following amounts for the month of May using T-accounts. 1. Cost of direct materials used. 2. Cost of direct labor used. 3. Cost of goods manufactured. 4. Cost of goods sold.4. Gross profit. 5. Overapplied or underapplied overhead. Do not consider any underapplied or overapplied overhead.These are the accounts that are used t(that need to be filled in).1. Raw Materials (RM)2. Goods In Process (GIP)3. Factory Payroll4. Finished Goods (FG)5. Factory Overhead6. Income Statement (Partial)
An employee receives an hourly rate of $18, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 7% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 4% on the first $7,000; federal unemployment compensation tax, 1% on the first $7,000. Prepare the journal entries to record the salaries expense and the employer payroll tax expense