Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. Apr. 2 Purchased $3,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $360 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $500. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $6,500 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. 21 After negotiations, received from Frist a $500 allowance toward the $6,500 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.

Answer:

A Retail Store

Journal Entries:

Apr. 2: Debit Inventory $3,600

Credit Accounts Payable (Lyon Company) $3,600

To record the purchase of inventory on account; FOB Shipping point, credit terms of 2/15, n/60.

Apr. 3: Debit Freight-in $360

Credit Cash $360

To record the payment of freight with cash.

Apr. 4: Debit Accounts Payable (Lyon Company) $500

Credit Inventory $500

To record the return of inventory on account.

Apr. 17: Debit Accounts Payable (Lyon Company) $3,100

Credit Cash $3,038

Credit Cash Discounts $62

To record the payment of cash on account, with discount.

Apr. 18: Debit Inventory $6,500

Credit Accounts Payable (Frist Corp.) $6,500

To record the purchase of inventory on account; FOB destination, credit terms of 1/10, n/30.

Apr. 21: Debit Accounts Payable (Frist Corp.) $500

Credit Inventory $500

To record the allowance received.

Apr. 28: Debit Accounts Payable (Frist Corp.) $6,000

Credit Cash $5,940

Credit Cash Discounts $60

To record the payment of cash on account, with discount.

Explanation:

a) Data and Analysis:

Apr. 2: Inventory $3,600 Accounts Payable (Lyon Company) $3,600. FOB Shipping point, credit terms of 2/15, n/60.

Apr. 3: Freight-in $360 Cash $360

Apr. 4: Accounts Payable (Lyon Company) $500 Inventory $500

Apr. 17: Accounts Payable (Lyon Company) $3,100 Cash $3,038 Cash Discounts $62

Apr. 18: Inventory $6,500 Accounts Payable (Frist Corp.) $6,500. FOB destination, credit terms of 1/10, n/30.

Apr. 21: Accounts Payable (Frist Corp.) $500 Inventory $500

Apr. 28: Accounts Payable (Frist Corp.) $6,000 Cash $5,940 Cash Discounts $60

You purchase a life insurance policy which involves making 5 annual premium payments (the first payment starting today). The original premium is $1800 and the premium increases 4% each year. The time line for the payments is drawn for you.
Today 1 2 3 4
$1,800 $1,872 $1,947 $2,025 $2,106
Now assume the insurance company offers you a level payment plan that has the same present value as the payment stream above but where all the premiums are the same. If the insurance company earns 10% compounded annually on its assets, what would the level payments be?
Today 1 2 3 4
$X $X $X $X $X

Select the correct answer.
In general, how long does it take to accomplish a long-term goal?
OA.
a few days to a week
OB.
a few weeks to a month
OC.
a few months to a year
OD.
more than a year

Income Statement Wayne Corporation had the following revenue and expense account balances (in millions) for a recent year ending May 31: Depreciation Expense $1,530 Fuel Expense 5,340 Maintenance and Repairs Expense 2,601 Other Expense 8,262 Provision for Income Taxes 1,331 Purchased Transportation 1,989 Rentals and Landing Fees 2,892 Revenues 40,851 Salaries and Employee Benefits 14,581 Prepare an income statement.

At the beginning of the year, manufacturing overhead for the year was estimated to be $1,033,125. At the end of the year, actual direct labor-hours for the year were 36,390 hours, the actual manufacturing overhead for the year was $972,000, and manufacturing overhead for the year was overapplied by $65,115. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: (Do not round intermediate calculations.)

The following trial balance of Sarasota Traveler Corporation does not balance.
Sarasota Traveler Corporation
Trial Balance
April 30, 2020
Debit Credit
Cash $6,212
Accounts Receivable 5,390
Supplies 3,117
Equipment 6,250
Accounts Payable $7,194
Common Stock 8,150
Retained Earnings 2,150
Service Revenue 5,350
Office Expense 4,470 0
$25,439 $22,844
An examination of the ledger shows these errors.
1. Cash received from a customer on account was recorded (both debit and credit) as $1,730 instead of $2,000.
2. The purchase on account of a computer costing $3,339 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,400, for which Accounts Receivable was debited $2,400 and Service Revenue was credited $375.
4. A payment of $245 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,350 instead of $5,430.
InstructionsFrom this information prepare a corrected trial balance.

Airline Accessories has the following current assets: cash, $92 million; receivables, $84 million; inventory, $172 million; and other current assets, $8 million. Airline Accessories has the following liabilities: accounts payable, $78 million; current portion of long-term debt, $25 million; and long-term debt, $13 million. Based on these amounts, calculate the current ratio and the acid-test ratio for Airline Accessories. (Enter your answers in millions, not in dollars. For example, $5,500,000 should be entered as 5.5.)

Which of the following is an accurate statement about the consequence of nonbinding price ceiling?

a. They prevent the seller from receiving the equilibrium price.
b. They require the seller to advertise the product at the equilibrium price.
c. They create a surplus in the legal market.
d. They do not change the quantity of goods bought or sold in the legal market.
e. They increase the quantity demanded of the good in question.

A sole proprietor in the 37% tax bracket pays her 16-year-old son a reasonable salary of $14,000 for services performed for the proprietorship. Compute the family's income tax savings if the son has no other income and takes a $12,400 standard deduction.

Edison and Hilary Garcia live in Swarthmore, PA. Their son, Kevin, owns his own plumbing business. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction C I G X M
Hilary gets a new video camera made in the United States.
Kevin buys a new set of tools to use in his plumbing business.
The state of Pennsylvania repaves highway PA 320, which goes
through the center of Swarthmore.
Edison buys a sweater made in Guatemala.
Edison's employer assigns him to provide consulting services to
an Australian firm that's opening a manufacturing facility in China.

14. The last department in a production process shows the following information at the end of the period: Units Beginning Work in Process 25,000 Started into Production 240,000 Ending Work in Process 50,000 How many units have been transferred out to finished goods during the period

Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $130,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a bank at 12.00 % compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $5,200 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $20,000 per year to maintain the system but will save $51,000 per year through increased efficiencies. Galvanized Products uses a MARR of 20.00 %/year to evaluate investments.
What is the present worth of this investment?

[The following information applies to questions 14-16.]
Furniture Face Lift refinishes old wood furniture. Their process for refinishing chairs has 8 workers and 4 stations. Each chair starts at the Stripping station, then goes to Priming, then to Painting and finally to Inspection. Where there are multiple workers within a station, each worker works independently on his/her own chair. Assume inventory buffers are allowed between each station.
Station Staffiing Processing time (hours per chair per worker)
Stripping 3 workers 2.5
Priming 2 workers 1.5
Painting 2 workers 1.75
Inspection 1 worker 17/10
**Multiple workers within the same station conduct in-parallel production activities. Note the processing time is for per unit per worker.
a. What is the maximum number of chairs per hour that can be produced? Assume they start the day with inventory at each station to work on (that is assuming the process is operated continually).
b. Suppose at the start of the day there is no inventory of chairs in the shop. That is, there are no chairs within any of the stations or between them in any buffer. A truck loaded with 15 chairs arrives. How many hours will it take them to complete these 15 chairs?
c. Suppose now that each worker is trained to do all tasks and each worker works on a chair from start to finish, i.e., each worker does Stripping, Priming, Painting and Inspection. What is the maximum capacity of the process in chairs per hour?
Note: for all HW assignments, please show your process of getting the results. Only providing the final answers is NOT acceptable and will get 0%. If necessary, please use a separate sheet of paper to show your work

Your grandparents put $11,200 into an account so that you would have spending money in college. You put the money into an account that will earn an APR of 4.39 percent compounded monthly. If you expect that you will be in college for 4 years, how much can you withdraw each month

Use the following information (in random order) from a merchandising company and from a service company. McNeil Merchandising Company Accumulated depreciation $ 700 Beginning inventory 11,500 Ending inventory 6,900 Expenses 2,100 Net purchases 14,300 Net sales 22,500 Krug Service Company Expenses $ 8,700 Revenues 27,000 Cash 700 Prepaid rent 680 Accounts payable 200 Equipment 2,500 a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiser. Hint: Not all information may be necessary. b. Compute net income for each company.

A bank currently has $150 million in "hot money" deposits against which it wants to hold an 80 percent reserve and $90 million in vulnerable deposits against which it wants to hold a 30 percent reserve. It also has $45 million in stable deposits against which it wants to hold a 5 percent reserve. Legal reserves for the bank are 5 percent of all deposits. What is the bank's liability liquidity reserve?

Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a $12,750 basis and a $19,850 fair market value. On January 2 of this year, Kimberly has a $18,300 basis in her partnership interest, and none of her pre-contribution gain has been recognized. On January 2 Kimberly receives an operating distribution of a tract of land (not the contributed land) with a $15,575 basis and an $22,675 fair market value.
a. What is the amount and character of Kimberly's recognized gain or loss on the distribution?
b. What is Kimberly’s remaining basis in KST after the distribution?
c. What is KST's basis in the land Kimberly contributed after Kimberly recevies the distribution?

(1) ____ are two of the largest financial institutions in the country.
​

You own a coal mining company and are considering opening a new mine. The mine will cost $120 million to open. If this money is spent immediately, the mine will generate $20 million for the next 10 years. After that, the coal will run out and the site must be cleaned and maintained at environmental standards. The cleaning and maintenance are expected to cost $2 million per year in perpetuity. What does the IRR rule say about whether you should accept this opportunity

Blossom Corporation has provided the following data concerning its most recent month of operations. Show your work for full credits. Selling price $ 121 Units in beginning inventory 0 Units produced 7,000 Units sold 6,500 Units in ending inventory 400 Variable costs per unit: Direct materials $ 38 Direct labor $ 53 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 11 Fixed costs: Fixed manufacturing overhead $ 70,000 Fixed selling and administrative expense $ 28,000 a. What is the unit product cost for the month under variable costing

On January 1, Year 1, Eller Company purchased an asset that had cost $24,000. The asset had an 8-year useful life and an estimated salvage value of $1,000. Eller depreciates its assets on the straight-line basis. On January 1, Year 5, the company spent $6,000 to improve the quality of the asset. Based on this information, the recognition of depreciation expense in Year 5 would:

Which of the following statements is correct?
A. Stockholders' equity can be described as creditorship claim on total assets.
B. The cost of an asset and its fair value are never the same.
C. The historical cost principle requires that when assets are acquired, they should be recorded at market price.
D. Stockholders' equity can be described as ownership claim on total assets.
E. The historical cost principle requires that when assets are acquired, they should be recorded at appraisal value.

Presented below is information for Kingbird Company.
1. Beginning-of-the-year Accounts Receivable balance was $16,600.
2. Net sales (all on account) for the year were $102,400. Kingbird does not offer cash discounts.
3. Collections on accounts receivable during the year were $90,000.
a. Prepare (summary) journal entries to record the items noted above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. SHOW LIST OF ACCOUNTS
b. Compute Kingbird's accounts receivable turnover and days to collect receivables for the year. The company does not believe it will have any bad debts. (Round answers to 2 decimal places, e.g. 4.57.) Accounts receivable turnover times Days to collect accounts receivable days Use the results to analyze Kingbird's liquidity. The turnover ratio last year was 8.1. This is a trend in liquidity.

As a consumer, why is it good for us when a store has a surplus of an item we want?

ABC Christmas shop signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on October 1 in the amount of $20,000 with annual interest of 6%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest

The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labor and materials costs (food, serving containers, napkins, etc.) of $1.70 per sandwich. Sandwiches sell for $2.50 each in all locations. Rent and equipment costs would be $5,300 per month for location A, $5,650 per month for location B, and $5,900 per month for location C.
A. Determine the volume necessary at each location to realize a monthly profit of $9,500.
B. If expected sales at A, B, and C are 20,500 per month, 22,500 per month, and 23,500 per month, respectively, calculate the profit of the each locations.

Consider two $10,000 face value corporate bonds. Bond A is currently selling for $9,980 and matures in 15 years. The Bond B sells for $9,350 and matures in 3 years. a) Calculate the current yield as a percentage to 2 decimal places for both bonds if both have a coupon rate equal to 5%. Bond A % Bond B % b) Calculate the yield to maturity as a percentage to 2 decimal places for both bonds if both have a coupon rate equal to 5%. Bond A % Bond B % Which current yield is a better approximation of the yield to maturity, A or B

Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 70,000 Variable expenses 38,500 Contribution margin 31,500 Fixed expenses 23,310 Net operating income $ 8,190 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income

Donna Pierce manages a business that distributes imported woolen fabrics. Donna's business offers a 2.5% cash discount on any amount paid within 10 days of the invoice date. On January 28, a client purchased fabrics priced at $14,500, and on February 1 the client sent in a $10,000 check. Compute the unpaid balance. (This problem involves the partial payment of an invoice within the discount period.)

In a market economy, supply and demand are important because they are direct policy tools used by government agencies to regulate the economy. illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium. can be used to predict the impact on the economy of various events and policies. All of the above are correct.

why do we have a graduated income tax?​