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Chapter 5 Post-Class Homework
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CHAPTER 5 - Pricing Methods
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Question 3
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Take me to the text
You are given the following information for Oak Hotel.
Price per Room
$110
Rooms Rented
98
Variable Costs per Room
$45
Fixed Costs
$1,698
Do not enter dollar signs or commas in the input boxes.
Round all answers to the nearest whole number.
Calculate the income from operations.
Elm Hotel
Contribution Margin Statement
Sales
$
Variable Costs
$
Contribution Margin
$
Fixed Costs
$
Income from Operations
$
Explanation
Elm Hotel
Contribution Margin Statement
Sales
$10,780
Variable Costs
$4,410
Contribution Margin
$6,370
Fixed Costs
$1,698
Income from Operations
$4,672
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Chapter 5 Post-Class Homework
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The comparative balance sheets of Constantine Cavamanlis Inc. at the beginning and the end of the year 2020 are as follows.
CONSTANTINE CAVAMANLIS INC.
BALANCE SHEETS
Dec. 31, 2020
Jan. 1, 2020
Inc./Dec.
Assets
Cash
$ 45,000
$ 13,000
$32,000
Inc.
Accounts receivable
91,000
88,000
3,000
Inc.
Equipment
39,000
22,000
17,000
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Less: Accumulated Depreciation-Equipment
17,000
11,000
6,000
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$112,000
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$ 15,000
5,000
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100,000
80,000
20,000
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17,000
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Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total
materials costs are $91000. How much is the conversion cost per unit?
O $17.52.
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$12.82.
O $30.33
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Koch Corporation's adjusted trial balance contained the following asset accounts at December 31, 2020: Cash $7,000, Land
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Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)
КОСН СORPORATION
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$115,930
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Supply the missing dollar amounts for each of the following independent cases:
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750
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750
850
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1,360
1,150
1,200
800
1,550
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X
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Proceeds from Notes Payable
On January 26, Bella Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face amount of $48,000. Assume a 360-day year.
a. Determine the proceeds of the note, assuming the note carries an interest rate of 6%.
b. Determine the proceeds of the note, assuming the note is discounted at 6%.
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For each of the following separate situations, determine how much revenue is recognized in December (using accrual basis
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a. On December 7, Oklahoma City Thunder sold a $124 ticket to a basketball game to be played in March.
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b. Sale of a car on credit
c. Contract to provide advisory services
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Suppose you invest $120 a month for 5 years into an account earning 8% compounded monthly. After 5
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Ziehart Pharmaceuticals reported Net Sales of $180,000 and Cost of Goods Sold of $59,000. Candy Electronics Corp. reported Net
Sales of $38,000 and Cost of Goods Sold of $27,800.
1. Calculate the gross profit percentage for both companies. (Round your answers to 1 decimal place.)
Gross Profnt
Ziehart Pharmaceuticals
Candy Electronics Corp.
2. Which company has a greater proportion of its sales available to cover expenses other than cost of goods sold?
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Exercise 20-2 (Algo) Change in principle; change in inventory methods [LO20-2]
2.
Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIF0 method at the beginning of
2021. The inventory as reported at the end of 2020 using LIFO would have been $55,000 higher using FIFO. Retained earnings at the
end of 2020 was reported as $730,000 (reflecting the LIFO method). The tax rate is 40%.
Ints
Skipped
Required:
1. Calculate the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had
been used in prior years.
2. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle.
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