Hardyke Group operates a local after-school recreation and activities program. The Education Department is a stategovernmental agency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1per day, to be paid by the student. The government will reimburse Hardyke for the "cost" of providing daily services used by astudent.The regular price to participate in the program is $6.00 per day. After analyzing its costs, Hardyke calculates that, with itsoperating deficit, the full cost of each student for a day is $8.50. All programs that Hardyke offers are unaffected by the numberof students paying the nominal fee.Required:b. Which price would Hardyke Group prefer?Note: Enter your answer to 2 decimal places.c. Which price would the Education Department prefer?Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.d. If Hardyke provides an average of 4,000 student-days for in-need children in a given month, what is the monthly value of thedifference between the prices in full capacity?b. Pricec. Priced. Differenceper dayper dayper month

Transfer pricing is a mechanism employed in those entities that have multiple divisions. It assists…

Answered: Hardyke Group operates a local…

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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At the beginning of the fall semester beauty state university a public university, billed tuition and fees at a gross amount of $4,800,000. of this amount, the university awarded a scholarship of $250,000 and $50,000 was believed to be uncollectible. The University also offered a generous tuition discount for the dependents of its employees. An additional $300,000 of the gross amount was awarded as employer provided tuition discounts. 1. Record the journal entry for the billing described above. 2. Assume that the transactions described above were in the summer instead of the fall. The billing was on June 25, fiscal year end is June 30, and the semester does not begin until July 15. How would the journal entries differ? 3. How would the journal entries in #1 differ for a private, nonprofit university?
The college is considering funding options for new engineering building on campus. The money has been raised for the construction costs and now the focus is raising funds for the annual upkeep and maintenance (U&M) expenses. For this building, contractors will be hired with a series of 3-year agreements over the 30 years. Under each contract the university will pay $125,000 at the beginning of each 3-year agreement to cover all U&M building expenses over that 3-year period. The first 3-year agreement begins when the building opens. A wealthy alumnus (you one day) has agreed to donate enough at the building opening to cover the U&M expenses over the 30- year term. If money invested by the school's engineering foundation earns 6% interest compounded quarterly, how much must be donated. (Hint: Build a spreadsheet like the one below) Year 0 3 6 9 12 15 18 21 24 27 Cost Rate Cash Flow FERH $125,000 $ 125,000.00 Present Worth 6% $125,000 3 year U&M Contract Cost Annual Interest Rate…
2-17. Finn Fixes is a new charity that repairs donated cars for use by unemployed job seekers. Finn collects the cars from area junkyards. The first year Finn is in operation, jobs programs bought cars from the organization for $60,000. They paid Finn $45,000 during the year and owe $15,000. Finn uses donated, unskilled labor and free garage space at a local high school. Its only cost is for parts. Total parts cost $58,000 for the year. During that first year Finn paid its parts suppliers $52,000. It owes its suppliers the balance. What is the profit or loss to Finn Fixes on a cash basis? What is the profit or loss to Finn Fixes on an accrual basis? If Finn Fixes were to stop operating at the end of the first year but received payment from the jobs programs and paid its suppliers, what would its cash budget for the next year be? How much cash would Finn Fixes have on hand at the end of the second year? How does that amount compare to its budgeted accrual basis profit or loss for the…
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You are the managing partner of your own accounting firm. You have a new client the Village ofFlowerville. You note the Village is using only one fund the General Fund to account for all theCity’s services and activities. The Village has the following activitiesa. The Village administers a government employee pension fundb. The Village operates a Swimming pool that citizens are allowed to use for a fee.c. The Village holds $1,000,0000 of unclaimed property.d. The Village collects sales tax on behalf of itself and a smaller village, Field Valley.e. The Village is building a new Recreation Center.f. The Village invests idle funds on behalf of itself and Field Valley.g. The Village manages a $5,000,000, endowment fund for the permanent maintenance ofthe Village Green.h. The Village is paying interest and principal on a 10-year bond.i. The Village runs a Data Processing Center that services all the departments of theVillage.j. The Village has instituted a new gasoline surtax. The surtax is…
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The Mosquito Abatement Commission is a newly organized federal agency with three primary programs: coordinating state government abatement functions, conducting research on mosquito abatement, and promoting abatement through public education. The following information is available at the end of the first quarter (December 31, 2020): Apportionments from OMB Allotments-first quarter Salaries paid Accrued salaries payable Supplies ordered and received Supplies used Depreciation Equipment purchases Program revenue: Charges for service Costs by Strategic Goal Coordinate State Government Abatement Programs Total Gross Cost Conduct Research on Mosquito Abatement Total Gross Cost MOSQUITO ABATEMENT COMMISSION Statement of Net Cost For the Quarter Ended December 31, 2020 Promote Abatement Through Public Education Total Gross Cost Government Coordination Research Less: Program Revenues Net Cost Total Entity Total Gross Program Cost Less: Program Revenues Net Cost (Income) from Operations…
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IS IT PART OF THE COUNTY? Harland County is in a financially distressed area within the state of Missouri. In hopes of enticing business to the county, the state legislature appropriates $3 million to start an industrial development commission. The federal government provides an additional $1 million. The state appoints 15 individuals to a board to oversee the operations of this commission. Harland County officials name five additional members. The commission begins operations by raising funds from local citizens and businesses. Over the past 12 months, it received $700,000 in donations and pledges. The county provides clerical assistance and allows the commission to use one wing of a county office building for its headquarters. The Harland County government must approve the commission's annual operating budget. The county will also cover any deficits that might occur.During the current period, the commission spent $2.4 million and achieves notable success. Several large companies…
The City of Meringen operates a central garage through an internal service fund to provide garage space and repairs for all city-owned and operated vehicles. The central garage fund was established by a contribution of $200,000 from the general fund, when the building was acquired several years ago. The postclosing trail balance at June 30, 2014, was as follows: Debit Credit Cash $ 150,000 Due from general fund $ 20,000 Inventory of materials and supplies $ 80,000 Land $ 60,000 Building $ 200,000 Accumulated depreciation-building $ 10,000 Machinery and equipment $ 56,000 Accumulated depreciation-machinery $ 12,000 and equipment $ 38,000 Vouchers payable $ 200,000 Contribution from general fund $ 306,000 Net position $…

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