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Chapter 6 Post-Class Homework
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Chapter 6 Post-Class Homework
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The following is Beta Hotel's income statement for the year ended February 28, 2020.
Beta Hotel
Income Statement
For the Year Ended February 28, 2020
Revenues
$760,000
Expenses:
Administrative Costs
$29,000
Marketing
$14,000
Variable Wages
$268,000
Management Salaries
$85,000
Rent
$167,000
Utilities
$27,000
Total Expenses
$590,000
Net Income
$170,000
Beta Hotel is a limited-service hotel with 18 rooms and no food and beverage operations. Management does not intend to spend a lot of
time and money on budgeting. The manager has determined the 2021 budgeted income statement should simply reflect the following
predicted changes from the 2020 income statement:
Revenues will increase by 3.5%
Marketing costs will decrease by 7%
Management salaries will increase by 3%
Variable wages will remain consistent as a percentage of revenue
Utilities will increase by 2%
Administrative costs and rent will remain the same
Do not enter dollar signs or commas in the input boxes.
Prepare the budgeted income statement for the year ending February 28, 2021 using the incremental budgeting approach.
Beta Hotel
Budgeted Income Statement
For the Year Ended February 28, 2021
Revenue
$
786600
Expenses
Administrative Costs
$
29000
Marketing
$
13020
Variable Wages
$
277380
Management Salaries $
87550
Rent
$
167000
Utilities
$
27540
Total Expenses
$
601490
Net Income
$
185110
Explanation
Beta Hotel
Budgeted Income Statement
For the Year Ended February 28, 2021
Revenue
$786,600
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Chapter 6 Post-Class Homework
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English (en)
Français - Canada (fr_ca)
Français (fr)
Expenses
Administrative Costs
$29,000
Marketing
$13,020
Variable Wages
$277,380
Management Salaries
$87,550
Rent
$167,000
Utilities
$27,540
Total Expenses
$601,490
Net Income
$185,110
Correct
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Suppose you found a CD that pays 4.9% interest compounded monthly for 6 years.
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Current Portion of Long-Term Debt
Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions):
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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.
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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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Question 8
Suppose you invest $120 a month for 5 years into an account earning 8% compounded monthly. After 5
years, you leave the money, without making additional deposits, in the account for another 23 years. How
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E10.1 (LO 1) (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are
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a. Money borrowed to pay building contractor (signed a note)
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Patterson Brothers recently reported an EBITDA of $12.5 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge
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A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the
ending work in process inventory that were 20% complete. The equivalent units of production for the period for conversion costs were:
O 95220 equivalent units.
O 135300 equivalent units.
O 70200 equivalent units.
O 85200 equivalent units.
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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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Bennett Enterprises issues a $396,000, 30-day, 9%, note to Spectrum Industries for merchandise inventory.
Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.
a. Journalize Bennett Enterprises' entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
1.
2.
>
b. Journalize Spectrum Industries' entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
1.
2.
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For example, the continuous probability distributions of rates of return on stocks for two different companies are
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Company B has a smaller standard deviation
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For each of the following separate situations, determine how much revenue is recognized in December (using accrual basis
accounting).
a. On December 7, Oklahoma City Thunder sold a $124 ticket to a basketball game to be played in March.
b. Tesla sold and delivered a $92,000 car on December 25. The customer will not pay until February.
c. Deloitte signs a contract on December 1 to provide 40 days of advisory services with receipt of $44,000 due at the end of the
contract. On December 31, 75% of the services have been completed.
Situations
Revenue recognized
a. Sale of a ticket to a basketball game
b. Sale of a car on credit
c. Contract to provide advisory services
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Business started off great the first year that the Golden Wolves Statues started production. Corey
realized, however, that the business was seasonal and had peak sales in the fall, during the third
quarter, when the students started college and continued through the beginning of the football
season. The following information concerns operations for Year 2, the coming year, and for the
first two quarters of Year 3.
A. Golden Wolves Statue Company is now making only the forward-facing statue with the
Alvernia University t-shirt and sells the product for $150/unit. Budgeted unit sales for the
next six quarters are as follows (all sales are on credit).
Year 2 Quarter
Year 3 Quarter
3
4
2.
Budgeted unit sales
680
000
009
B. Sales are collected in the following pattern: 75% in the quarter the sales are made, and the
remaining 25% in the following quarter. On January 1, Year 2, the company's balance sheet
shows $6,500 in accounts receivable, all of which will be collected in the…
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P MindTap HW 1 - Spring 2021 - Fi X
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Over the years, Masterson Corporation's stockholders have provided $35,000,000 of capital when they purchased new issues of stock and allowed management to retain some of the firm's
earnings. The firm now has 2,100,000 shares of common stock outstanding, and the shares sell at a price of $30 per share. How much value has Masterson's management added to stockholder
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wealth over the years, that is, what is Masterson's MVA? Round your answer to the nearest dollar, if necessary.
$
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Chapter: Recording Business TraNSACTIONS
Sep. 1
hed:course:7710589/products/79c3fa4c-a84f-42ba-b87a-e36a400bca00/pages/urn:pe
6
7
Proble X
P-F:2-30A. Journalizing transactions, posting journal entries to T-
accounts, and preparing a trial balance (Learning Objectives 3, 4)
15
G
New
Ann Simpson started her practice as a design consultant on September 1,
2024. During the first month of operations, the business completed the
following transactions:
3. Prepare the trial balance of Vince York, M.D., as of July 31, 2024.
30
Received $48,000 cash and issued common stock to Simpson.
Purchased office supplies, $1,200, and furniture, $1,300, on account.
Performed services for a law firm and received $1,900 cash.
X
Paid $18,000 cash to acquire land to be used in operations.
Performed services for a hotel and received its promise to pay the $1,200
within one week.
Paid for the furniture purchased on September 4 on account.
Paid assistant's semimonthly salary, $1,500.
Received cash on…
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E Chapter 5 Homework - FINANCIA X
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E Chapter 5 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
Inc.
Less: Accumulated Depreciation-Equipment
17,000
11,000
6,000
Inc.
Total
$158,000
$112,000
Liabilities and Stockholders' Equity,
Accounts payable
$ 20,000
$ 15,000
5,000
Inc.
Common stock
100,000
80,000
20,000
Inc.
Retained earnings
38,000
17,000
21,000
Inc.
Total
$158,000
$112,000
Net…
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omework G
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Information pertaining to Noskey Corporation's sales revenue follows:
November 2021
(Actual)
$ 180,000
December 2021
(Budgeted)
$ 160,000
500,000
January 2022
(Budgeted)
Cash sales
000'09
$ 540,000
Credit sales
$ 360,000
000'09
Total sales
000'099 2$
Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the
remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month's projected
total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on-account;
25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase.…
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You can afford a $250 per month car payment. You've found a 4 year loan at 6% interest. How big of a loan can
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