E9-3 Garza and Neely, CPAS, are preparing their service revenue (sales) budget for thecoming year (2014). The practice is divided into three departments: auditing, tax, andconsulting. Billable hours for each department, by quarter, are provided below.Quarter 1Quarter 2Quarter 4DepartmentAuditingTaxConsultingQuarter 32,3003,0001,5001,6002,2001,5002,0002,0001,5002,4002,5001,500Average hourly billing rates are auditing $80, tax $90, and consulting $100.InstructionsPrepare the service revenue (sales) budget for 2014 by listing the departments and show-ing for each quarter and the year in total, billable hours, billable rate, and total revenue.

Budget refers to the estimation made by the company, individual, or government for the revenue and…

E9-3 Garza and Neely, CPAS, are preparing their service revenue (sales) budget for the coming year (2014). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Department Auditing Тах 2,300 3,000 1,500 1,600 2,200 1,500 2,000 2,000 1,500 2,400 2,500 1,500 Consulting Average hourly billing rates are auditing $80, tax $90, and consulting $100. Instructions Prepare the service revenue (sales) budget for 2014 by listing the departments and show- ing for each quarter and the year in total, billable hours, billable rate, and total revenue.

E9-3 Garza and Neely, CPAS, are preparing their service revenue (sales) budget for the coming year (2014). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Department Auditing Тах 2,300 3,000 1,500 1,600 2,200 1,500 2,000 2,000 1,500 2,400 2,500 1,500 Consulting Average hourly billing rates are auditing $80, tax $90, and consulting $100. Instructions Prepare the service revenue (sales) budget for 2014 by listing the departments and show- ing for each quarter and the year in total, billable hours, billable rate, and total revenue.

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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[The following information applies to the questions displayed below.] Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash $ 76,000 Accounts receivable 137,000 Inventory 86,100 Plant and equipment, net of depreciation 230,000 Total assets $ 529,100 Liabilities and Stockholders’ Equity Accounts payable $91,000 Common stock 312,000 Retained earnings 126,100 Total liabilities and stockholders’ equity $ 529,100 Beech’s managers have made the following additional assumptions and estimates: Estimated sales for July, August, September, and October will be $410,000, $430,000, $420,000, and $440,000, respectively. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month…
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 64,000 Accounts receivable 219,200 Inventory 61,350 Buildings and equipment (net) 374,000 Accounts payable $ 92,325 Common stock 500,000 Retained earnings 126,225 $ 718,550 $ 718,550 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 274,000 January $ 409,000 February $ 606,000 March $ 321,000 April $ 217,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The company’s gross margin is…
Tyler Sheen is the owner of Stopby Inn. He provided the selected opening balances as at June 1, 2020 and the budgeted information for June and July 2020. Selected Opening Balances as of June 1, 2020 Cash $108,700 Accounts Receivable 45,000 Inventory 235,000 Long-term Assets 648,000 Accounts Payable 48,400 Shareholder's Equity 928,000 Budgeted Amounts For the month of June: Total Revenue $349,000 Total General and Administration Costs 185,000 Total Capital Expenditures 193,000 For the month of July: Total Revenue 359,200 Total General and Administration Costs 203,000 Total Capital Expenditures 222,000 Do not enter dollar signs or commas in the input boxes. Round your answer to the nearest dollar The company’s monthly depreciation represents 20% of general and administration costs. 70% percent of the general and administration costs (excluding depreciation) are paid in the month in which they are incurred, and the rest is recorded in accounts payable to be paid in the next month. Of the…
The treasurer of Gateway Co. has accumulated the following budget information for the first two months of the coming year: March $450,000 290,000 41,400 250,000 45,000 51,000 121,500 April $520,000 350,000 46,400 Sales Inventory costs Operating expenses Capital expenditures March 1 Cash balance Accounts Receivables-March 1 Accounts Payable-March 1 ($102,000 for inventory purchases and $19,500 for operating expenses) The company expects to sell about 35% of sales for cash. Of sales on account, 80% are expected to be collected in full in the month of the sale and the remainder in the month following the sale. One fourth of the inventory costs are expected to be paid in the month in which they are incurred and the other three fourths in the month following. Depreciation, insurance, and property taxes represent $6,400 of the total budgeted monthly operating expenses. Insurance is paid in February and a $40,000 installment on property taxes is expected to be paid in April. Of the remainder…
The management accountant at Hewitt Manufacturing Company, Conrad Fuller, is in the process ofpreparing the cash budget for the business for the quarter ending December 31, 2010. Extracts from thesales and purchases budgets are as follows:Month CashSalesSalesonAccountPurchasesonAccountAugustSeptemberOctoberNovemberDecember$45,000$60,000$38,000$47,000$51,000$480,000$600,000$720,000$640,000$800,000$400,000$380,000$480,000$500,000$600,000i) An analysis of the records shows that trade receivables (accounts receivable) are settled accordingto the following credit pattern, in accordance with the credit terms 10/30, n90:50% in the month of sale30% in the first month following the sale20% in the second month following the saleii) Accounts payable are settled as follows:70% in the month in which the inventory is purchased30% in the following monthThe credit terms of the suppliers is 5/30, n60.iii) A motor vehicle costing $350,000 will be purchased and paid for in November 2010.iv) During…
Bravo Company is a bookstore that prepares its master budget on a quarterly basis. The following data has been assembled to assist in preparation of the master budget for the first quarter: As of December 31, 2023 (the end of the prior quarter), the company’s general ledger showed the following account balances: Debit Credit Cash 44,000 Accounts Receivable 184,000 Inventory 60,000 Building & Equipment 404,000 Accumulated Depreciation 144,000 Accounts Payable 93,000 Capital shares 200,000 Retained Earnings 255,000 Totals $ 692,000 $ 692,000 Actual sales for December and budgeted…
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Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 43,000 Accounts receivable 202,400 Inventory 58,200 Buildings and equipment (net) 353,000 Accounts payable $ 86,025 Common stock 500,000 Retained earnings 70,575 $ 656,600 $ 656,600 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 253,000 January $ 388,000 February $ 585,000 March $ 299,000 April $ 196,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The company’s gross margin is…
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