Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 12, Problem 12.28EX
a.
To determine
It is that form of organization which is owned and managed by two or more persons who invest and share the
The revenue per employee for the year 2017 and 2016.
b.
To determine
To interpret: The trend between the two years.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
ABC Ltd received $15,000 on the 1st of July 2015 from one of its customers for services expected to be completed by December 31 on the equal monthly paces. If 45% of the requested services performed by the end of September, how would ABC record this revenue?
Select one:
Dr Service Revenue - $7,500 Cr Unearned Service Revenue - $7,500
Dr Service Revenue - $6,750 Cr Unearned Service Revenue - $6,750
Dr Unearned Service Revenue - $6,750 Cr Service Revenue - $6,750
Dr Unearned Service Revenue - $7,500 Cr Service Revenue - $7,500
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engage-
ment, up to six months after services commence. Alsup recognizes service revenue for financial reporting pur-
poses when the services are performed. For tax purposes, revenue is reported when fees are collected. Service
revenue, collections, and pretax accounting income for 2015-2018 are as follows:
Pretax Accounting
Collections
Service Revenue
Income
$650,000
750,000
$620,000
$186,000
2015
2016
770,000
250,000
2017
715,000
700,000
220,000
2018
700,000
720,000
200,000
There are no differences between accounting income and taxable income other than the temporary difference
described above. The enacted tax rate for each year is 40%.
Required:
1. Prepare the appropriate journal entry to record Alsup's 2016 income taxes.
2. Prepare the appropriate journal entry to record Alsup's 2017 income taxes.
3. Prepare the appropriate journal entry to record Alsup's 2018 income taxes.
(Hint:…
Superior Cleaning Services, LLC, provides cleaning services for office buildings. The firm
has 10 members in the LLC, which did not change between 20Y8 and 20Y9. During 20Y9,
the business terminated two commercial contracts. The following revenue and employee
information is provided:
20Y9
20Υ8
Revenues (in thousands)
$16,200 $18,400
Number of employees (excluding members)
150
200
For 20Y9 and 20Y8, determine the revenue per employee (excluding members).
a.
b. Interpret the trend between the two years.
Chapter 12 Solutions
Accounting (Text Only)
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 12.1APECh. 12 - Prob. 12.1BPECh. 12 - Prob. 12.2APECh. 12 - Prob. 12.2BPECh. 12 - Prob. 12.3APECh. 12 - Prob. 12.3BPECh. 12 - Prob. 12.4APECh. 12 - Prob. 12.4BPECh. 12 - Prob. 12.5APECh. 12 - Prob. 12.5BPECh. 12 - Prob. 12.6APECh. 12 - Prob. 12.6BPECh. 12 - Prob. 12.7APECh. 12 - Prob. 12.7BPECh. 12 - Prob. 12.1EXCh. 12 - Prob. 12.2EXCh. 12 - Prob. 12.3EXCh. 12 - Prob. 12.4EXCh. 12 - Prob. 12.5EXCh. 12 - Prob. 12.6EXCh. 12 - Prob. 12.7EXCh. 12 - Prob. 12.8EXCh. 12 - Prob. 12.9EXCh. 12 - Prob. 12.10EXCh. 12 - Prob. 12.11EXCh. 12 - Prob. 12.12EXCh. 12 - Prob. 12.13EXCh. 12 - Prob. 12.14EXCh. 12 - Prob. 12.15EXCh. 12 - Prob. 12.16EXCh. 12 - Prob. 12.17EXCh. 12 - Statement of members equity, admitting new member...Ch. 12 - Distribution of cash upon liquidation Hewitt and...Ch. 12 - Distribution of cash upon liquidation David Oliver...Ch. 12 - Prob. 12.21EXCh. 12 - Prob. 12.22EXCh. 12 - Liquidating partnershipscapital deficiency...Ch. 12 - Prob. 12.24EXCh. 12 - Prob. 12.25EXCh. 12 - Prob. 12.26EXCh. 12 - Prob. 12.27EXCh. 12 - Prob. 12.28EXCh. 12 - Prob. 12.1APRCh. 12 - Prob. 12.2APRCh. 12 - Prob. 12.3APRCh. 12 - Prob. 12.4APRCh. 12 - Prob. 12.5APRCh. 12 - Prob. 12.6APRCh. 12 - Prob. 12.1BPRCh. 12 - Prob. 12.2BPRCh. 12 - Prob. 12.3BPRCh. 12 - Prob. 12.4BPRCh. 12 - Prob. 12.5BPRCh. 12 - Statement of partnership liquidation On August 3,...Ch. 12 - Prob. 12.1CPCh. 12 - Prob. 12.2CPCh. 12 - Revenue per employee The following table shows key...Ch. 12 - Prob. 12.4CP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Mason, Durant, and Westbrook (MDW) is a tax services firm. The firm is located in Oklahoma City and employs 15 professionals and eight staff. The firm does tax work for small businesses and well-to-do individuals. The following data are provided for the last fiscal year. (The Mason, Durant, and Westbrook fiscal year runs from July 1 through June 30.) Required: 1. Prepare a statement of cost of services sold. 2. Refer to the statement prepared in Requirement 1. What is the dominant cost? Will this always be true of service organizations? If not, provide an example of an exception. 3. Assuming that the average fee for processing a return is 850, prepare an income statement for Mason, Durant, and Westbrook. 4. Discuss three differences between services and tangible products. Calculate the average cost of preparing a tax return for last year. How do the differences between services and tangible products affect the ability of MDW to use the last years average cost of preparing a tax return in budgeting the cost of tax return services to be offered next year?arrow_forwardEverything You Need Warehouse Company recognizes membership fee revenues over the term of the membership, which is 12 months. If their Unearned Membership Fee Revenue account had a balance of $2,400 million on January 31, 2016, and $2,200 million on January 31, 2017 and the company received membership fees in cash of $4,400 million during the year, what amount was recognized as Membership Fee Revenue for the fiscal year? Select one: A. $4,600 million B. $4,280 million C. $4,216 million D. $8,560 millionarrow_forwardRecord the appropriate journal entry to reflect the following:At the end of the year, Veggies-R-Us, Inc. owed theiremployees $1,300 (total accrued salaries payable) to their otheremployees of the company for work performed during the yearjust ended.Currently Salaries/Wages payable has a balance of -0- in theaccount based upon the following partial Trail Balance of thecompany: Veggies-R-Us.Trial Balance (Partial)December 31, 20XXAccounts payable 6,240 CreditSalary payable -0- Creditarrow_forward
- Question involving Revenue Recognition: How much revenue should be recognized by the following Company, in each of the month's of March, April, May, June, July, August, and September? A company pre-sells services to be performed from May through September, inclusive. If payment is made in full by April 1, a 4% discount is allowed. In March, 245 customers took advantage of the discount and purchased the services for $650 each. In June, 220 customers purchased the services for $785, and in July, 95 purchased it for the same price. For the customers who pay after May 1, services start in the month the customer makes the payment. Please explain for each month. Months $ March April May June July August Septemberarrow_forwardSam formed a corporation called Sam Inc on December 1, 2010. The new corporation was able to begin operations immediately by purchasing all the assets and taking over the location of Buy-It, an equipment rental company which was going out of business. The corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December, the corporation entered the following transactions: Dec. 1 Issued 20,000 shares of capital stock at an issue price of $15 per share. Dec. 2 Paid $158,000 cash and issued a 12 months note payable for the balance to buy equipment of $288,000 in which the note will be paid in full together with interest at the end of 1 year. Dec. 3 Paid quarterly rental of $4,800 per month in one lump sum to Lovely as three months' advance rent on the rental yard and office formerly occupied by Lovely. Dec. 7 Purchased office stationery from ICan Book Store for $1,200 on credit. Dec. 10 Polar Company paid $9600 in advance for equipment…arrow_forwardAssume the following data for Blossom Care Dry Cleaning for the year ended December 31. • Gross earnings $305,000.00 • All employees’ salaries are greater than $7,000 in the first quarter of employment • Number of employees at the beginning of the year: 10 • One new employee hired during fourth quarter (assume employee earns $7,800 before December 31) • FUTA deposits for the year: $420.00 (a) Determine the amounts entered on Form 940 for the following line items. Line 3: Total payments to all employees $ Line 4: Payments exempt from FUTA tax $ Line 5: Total of payments made to each employee in excess of $7,000 $ Line 7: Total taxable FUTA wages $ Line 8: FUTA tax before adjustments $ Line 13: FUTA tax deposited for the year, including any overpayment applied from a prior year $ Line 14: Balance due $ Line 15: Overpayment $ Line 16a: 1st quarter $ Line 16b: 2nd quarter $ Line 16c: 3rd…arrow_forward
- Haresharrow_forwardChantelle Chance is a hair dresser who started in business on October 1, 2018 and has not registered to collect the GST. Quarterly revenues from her business for her first year of operations were as follows: October To December 2018 - $4000January to March 2019 - $6500April to June 2019 - $9000July to September 2019- $9500Total for year ending September 2019 -$29000 For the quarter ending December 31, 2019 business revenues were $11500. Required: Advise Chantelle if registration for the GST is required and include the reasons for your answer. IF required state when GST Collection should start and By what date registration must be completed.arrow_forwardSaharrow_forward
- Chantelle Chance is a hair dresser who stated in business on October 1, 2018 and has not registered to collect the GST. Quarterly revenues from her business for her first year of operations were as follows: October To December 2018 - $4000 January to March 2019 - $6500 April to June 2019 - $9000 July to September 2019- $9500 Total for year ending September 2019 -$29000 For the quarter ending December 31, 2019 business revenues were $11500. Required: Advise Chantelle if registration for the GST is required and include the reasons for your answer. IF required state when GST Collection should start and By what date registration must be completed.arrow_forwardReformulating Financial Statements For Warranty Expense Income statement data for Whirlpool Industries from the company's 2016 financial statements follow. Use these data to reformulate the income statement for 2014, 2015, and 2016 under the assumption that warranty expense is a constant percentage of revenue across all three years. Specifically, compute the adjustments to: warranty expense, income tax expense, and net income. The company's tax rate is 30%. 12 Months Ended ($ millions) Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014 Net sales $26,396 $26,569 $25,550 Warranty expense 571 815 577 Compute the average warranty expense to net sales rate over the past three years. Round answer to two decimal places (ex: 0.02345 = 2.35%) 2.5 % Using your rounded answer, compute the adjusted warranty expense for each year. • Round answers to one decimal place. • Use a negative sign to indicate if the adjustment decreases an account balance. Income Statements Adjustments Adjusted warranty expense…arrow_forwardFDN Company earns revenue from rendering advertising services to various clients. FN Company received P28,000 for advertising services to be provided to clients and this was credited to a liability account. At year end, 20% of advertising services has been provided. How much is the advertising revenue for the year ended December 31, 2021?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage