Cornwall Mobile Detailing (CMD) is a service that washes and details a customer's vehicle at their home or office. It operates on a membership basis. Members pay $2,200 dues per month, which entitle them to a completewash and detail service monthly. Members may also order additional car washes during the month at a fee of $175. Additional washes are common in both summer and winter months. The number of members also varies withthe season. The number of members and the average number of additional washes by members for the months of interest follow: Members Additional Washes (Average per Member) January 560 2.8 February 620 3.1 March1,180 2.7 April 1,320 2.6 May 1,350 2.9 June 1,500 3.4 Cornwall allows members to pay for dues on credit. Cornwall's experience is that 40 percent of its members pay cash for the dues, 50 percent of the members pay thedues for a month in the next month, 5 percent in the second month after. The remainder is uncollectible. Additional washes are payable in cash. Required: What are Cornwall Mobile Detailing's expected cash receipts for March.April, May, and June?

The schedule of expected cash collection helps in estimating the amount of cash expected to be…

Answered: Cornwall Mobile Detailing (CMD) is a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Geoff and Sandy Harland own and operate Wayward Kennel and Pet Supply. Their motto is, “If your pet is not becoming to you, he should be coming to us.” The Harlands maintain a sales tax payable account throughout the month to account for the 6% sales tax. They use a general journal, general ledger, and accounts receivable ledger. The following sales and cash collections took place during the month of September: September Transactions: Sept. 2 Sold a fish aquarium on account to Ken Shank, $125 plus tax of $7.50, terms n/30. Sale No. 101. 3 Sold dog food on account to Nancy Truelove, $68.25 plus tax of $4.10, terms n/30. Sale No. 102. 5 Sold a bird cage on account to Jean Warkentin, $43.95 plus tax of $2.64, terms n/30. Sale No. 103. 8 Cash sales for the week were $2,332.45 plus tax of $139.95. 10 Received cash for boarding and grooming services, $625 plus tax of $37.50. 11 Jean Warkentin stopped by the store to point out a minor defect in the bird cage…
Toren Inc. employs one person to run its solar management company. The employee’s gross income for the month of May is $8,000. Payroll for the month of May is as follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, federal income tax of $440, state income tax of $80, health-care insurance premium of $210, and union dues of $50. The employee is responsible for covering 30% of his or her health insurance premium. A. Record the journal entry to recognize employee payroll for the month of May, dated May 31, 2017. Round your answers to the nearest whole dollar. If an amount box does not require an entry, leave it blank. May 31 B. Record remittance of the employee's salary with cash on June 1. Round your answers to the nearest whole dollar. If an amount box does not require an entry, leave it blank. June 1
The City of Evansville operated a summer camp program for at-risk youth. Businesses and nonprofit organizations sponsor one or more youth by paying the registration fee for program participants. The following Schedule of Cash Receipts and Disbursements summarizes the activity in the program's bank account for the year. 1. At the beginning of 2020, the program had unrestricted cash of $30,000. Cash receipts: Registration fees Borrowing from bank Total deposits Cash disbursements: Wages Payroll taxes Insurance (paid monthly) Purchase of bus Interest on bank note Total checks Excess of receipts over disbursements Cash Basis 12 months $134,000 60,000 194,000 74,000 9,900 6,900 69,000 1,800 161,600 $ 32,400 2. The loan from the bank is dated April 1 and is for a five-year period. Interest (6 percent annual rate) is paid on October 1 and April 1 of each year, beginning October 1, 2020. 3. The bus was purchased on April 1 with the proceeds provided by the bank loan and has an estimated useful…
Campus Cellular provides cell phones and 1 year of cell service to students for an upfront, nonrefundable fee of $300 and a usage fee of $5 per month. Students may renew the service without paying another upfront fee for each year they are on campus (on average, students renew their service one time). What amount of revenue should Campus Cellular recognize in the first year of the contract?
> Mary Tan is the controller for Duck Associates, a property management company in Portland, Oregon. Each year, Tan and payroll clerk Toby Stock meet with the external auditors about payroll accounting. This year, the auditors suggest that Tan consider outsourcing Duck Associates's payroll accounting to a company specializing in payroll processing services. This would allow Tan and her staff to focus on their primary responsibility: accounting for the properties under management. At present, payroll requires 1.5 employee positions-payroll clerk Toby Stock and a bookkeeper who spends half her time entering payroll data in the system. meniups/l Tan considers this suggestion, and she lists the following items relating to out- sourcing payroll accounting: a. The current payroll software that was purchased for $4,000 three years ago would not be needed if payroll processing were outsourced. b. uck Associates's bookkeeper would spend half her time preparing the weekly payroll input form that…
Delta Air Lines is a major passenger airline headquartered in the United States. Most Delta passengers purchase their tickets several weeks prior to taking their trip and use a credit card such as VISA or American Express to pay for their tickets. The credit card company pays the airline at the time the flight is booked, several weeks prior to the flight. Write a brief memo to your instructor explaining when Delta should recognize revenue from ticket sales.
The following describes the payroll procedures for Cooper Toy Train Company. Every Thursday, Raj, the timekeeping clerk, keys the timecard data from the employees into the system, prints a summary report, sends the summary report to Penny in the payroll department where it is filed by date, and then files the timecards alphabetically and date. The last Thursday of each month, Penny, the payroll clerk, processes the payroll which includes calculating gross pay, calculating withholdings, calculating net pay, printing the checks, printing the payroll summary report and the payroll file is updated. Penny then sends the checks and the payroll summary report to Leonard in the cash disbursements department. Leonard, the cash disbursements clerk, reconciles the payroll summary with the paychecks and then records the transaction in the cash disbursements file. He then files the payroll summary by date and sends the paychecks to the treasurer, Sheldon, for signing. The signed checks are then…
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Over the winter months, Pharoah Co. pre-sells fertilizing and weed control lawn services to be performed from May through September, inclusive. If payment is made in full by April 1, a 5% discount is allowed. In March, 275 customers took advantage of the discount and purchased the summer lawn service package for $760 each. In June, 225 customers purchased the package for $800, and in July, 84 purchased it for the same price. For customers who pay after May 1, service starts in the month the customer makes the payment. How much revenue should be recognized by the Pharoah Co. in each of the months of March, April, May, June, July, August, and September? (Round answers to 0 decimal places, e.g. 5,275. Do not leave any answer field blank. Enter O for amounts.) March $ April $ May $ June $ July August September $
An auto insurance company is implementing a new bonus system. In each month, if a policyholder does not have an accident, he or she will receive a 6.00 cash- back bonus from the insurer. Among the 1,000 policyholders of the auto insurance company, 3500 are classified as low-risk drivers and 650 are classified as high-risk drivers. In each month, the probability of zero accidents for high-risk drivers is .75 and the probability of zero accidents for low-risk drivers is .90. Calculate the expected bonus payment from the insurer to the 1,000 policyholders in one year.
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