P9-7 Determining Financial Statement Effects of Deferred Revenues LO9-1A. Deferred revenues-customer depositsEastern Brewing Company (EBC) distributes its products in an aluminum keg. Customers are charged a deposit of $22 per keg, anddeposits received from customers are recorded in the keg deposits account.Required:1. This part of the question is not part of your Connect assignment.2. A production specialist who works for EBC estimates that 85 kegs for which deposits were received during the year will never bereturned. How would the deposits related to these 85 kegs be reflected in the company's financial statements? (If no entry is requiredfor a transaction/event, select "No journal entry required" In the first account fleld.)View transaction listJournal entry worksheet<1Record deposit revenue.Note: Enter debits before credits.TransactionARecord entryGeneral JournalClear entryDebitCreditView general journal B. Deferred revenues-rentOn September 1, year 1, Noreen Ltd. collected $88,200 in cash from its tenant as an advance rent payment on its store location. Thesix-month lease period ends on February 28, year 2, at which time the lease contract may be renewed. Noreen's fiscal year ends onDecember 31.Required:1. Prepare journal entries to record the collection of rent on September 1, year 1, and the related adjustment for the amount of rentearned during year 1. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.)View transaction listJournal entry worksheet1 2Record rent received in advance.Note: Enter debits before credits.DateSept 01, Year 1Record entryGeneral JournalClear entryDebitCreditView general journal

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P9-7 Determining Financial Statement Effects of Deferred Revenues LO9-1 A. Deferred revenues-customer deposits Eastern Brewing Company (EBC) distributes its products in an aluminum keg. Customers are charged a deposit of $22 per keg, and deposits received from customers are recorded in the keg deposits account. Required: 1. This part of the question is not part of your Connect assignment. 2. A production specialist who works for EBC estimates that 85 kegs for which deposits were received during the year will never be returned. How would the deposits related to these 85 kegs be reflected in the company's financial statements? (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list

P9-7 Determining Financial Statement Effects of Deferred Revenues LO9-1 A. Deferred revenues-customer deposits Eastern Brewing Company (EBC) distributes its products in an aluminum keg. Customers are charged a deposit of $22 per keg, and deposits received from customers are recorded in the keg deposits account. Required: 1. This part of the question is not part of your Connect assignment. 2. A production specialist who works for EBC estimates that 85 kegs for which deposits were received during the year will never be returned. How would the deposits related to these 85 kegs be reflected in the company's financial statements? (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list

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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TB Problem Qu. 6A-70 (Algo) Grawburg Incorporated maintains a call center to take... Grawburg Incorporated maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent months are listed below: April May June July August Calls. Taken 8,460 8,429 8,470 8,469 8,433 $ 91,567 September 8,444 $ 91,605 October 8,486 $ 91,831 November 8,474 $91,787 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Call Center Cost $ 91,717 $91,548 $ 91,777 $ 91,759 Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. (Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) Variable cost Fixed cost Answer is complete but not entirely correct. $ 10.05 per call 6,573 per month $
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E 7-8 Sales returns ⒸLO7-4 Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $300,000. During 2024, Halifax sold merchandise on account for $11,500,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $450,000 in sales for credit, with $250,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at…
Morrison Company Balance Sheet January 1 Assets Cash $ 40,950 Raw materials Work in process Finished goods Prepaid expenses Property, plant, and equipment (net) $ 17,800 6,600 31,800 56, 200 3,350 124,000 $ 224,500 Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings $ 7,100 217,400 Total liabilities and stockholders' equity $ 224,500 During January the company completed the following transactions: a. Purchased raw materials on account, $75,200. b. Raw materials used in production, $91,500 ($80,200 was direct materials and $11,300 was indirect materials). c. Paid $202.100 of salaries and wages in cash ($108,800 was direct labor, $41,700 was indirect labor, and $51,600 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs incurred (on account) to support production, $43,350. e. Depreciation recorded on property, plant, and equipment, $63,600 (70% related to manufacturing equipment and 30% related to…
2 S Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, LO7-5] [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $77 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 27 $ 10 $2 $3 Foundational 7-10 (Algo) $ 1,298,000 $ 662,000 The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 is a common fixed expense. The…
Exercise 6-11 (Algo) Segmented Income Statement [LO6-4] Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) In an effort to resolve the problem, the company wants to prepare an income statement segmented by division. Accordingly, the Accounting Department provided the following information: Sales Variable expenses as a percentage of sales Traceable fixed expenses $ 1,601,000 649,870 951,130 1,046,000 $ (94,870) East $ 391,000 47% $ 269,000 Req 1 Complete this question by entering your answers in the tabs below. Req 2A Division Central $630,000 39% $ 326,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department believes increasing the West Division's monthly advertising by $29,000 will increase that division's sales by 12%.…
Problem 2-19A (Algo) Context-sensitive nature of cost behavior classifications LO 2-1 Vernon Bank's start-up division establishes new branch banks. Each branch opens with three tellers. Total teller cost per branch is $96,000 per year. The three tellers combined can process up to 85,000 customer transactions per year. If a branch does not attain a volume of at least 55,000 transactions during its first year of operations, it is closed. If the demand for services exceeds 85,00O transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. Required a. What is the relevant range of activity for new branch banks? b. Determine the amount of teller cost in total and the average teller cost per transaction for a branch that processes 55,000, 65,000, 75,000, or 85,000 transactions. In this case (the activity base is the number of transactions for a specific branch), is the teller cost a fixed or a variable cost? c. Determine the…
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Exercise 5-16 (Algo) Record notes payable and interest expense (LO5-7) On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complaints. Legal services total $10,600. In payment for the services, Whole Grain Bakery signs a 10% note requiring the payment of the face amount and interest to Terrell & Associates on September 1. Required: For Whole Grain Bakery, record the issuance of the note payable on March 1 and the cash payment on September 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet
Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 143,000 $ 88,000 $ 26,000 $ 11,000 $ 8,000 $ 10,000 Percent uncollectible 1 % 4 % 6 % 9 % 12 % 1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.2. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $1,800 credit.