GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 3.8E
1.
To determine
Prepare the
2.
To determine
Prepare the T-account to calculate the ending
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the mainland by a high bridge. One resort is located on the beach and is called the Crystal Coast Resort. The other resort is located on the inland waterway which passes between the town and the mainland; it is called the Harborview Resort. Some key information about the two resorts for the current year is shown below.
Harborview
Crystal Coast
Total
Revenue (000s)
$3,500
$6,500
$10,000
Square feet
75,000
225,000
300,000
Rooms
60
140
200
Assets (000s)
$136,000
$544,000
$680,000
The nontraceable operating costs of the resort amount to $4,000,000. By careful study, the management accountant at Sand and Sea has determined that, while the costs are not directly traceable, the total of $4 million could be fairly allocated to the four cost drivers as follows.
Cost Driver
Amount Allocated…
Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the mainland by a high bridge. One resort is located on the beach and is called the Crystal Coast Resort. The other resort is located on the inland waterway which passes between the town and the mainland; it is called the Harborview Resort. Some key information about the two resorts for the current year is shown below.
Harborview
Crystal Coast
Total
Revenue (000s)
$
3,500
$
6,500
$
10,000
Square feet
75,000
225,000
300,000
Rooms
60
140
200
Assets (000s)
$
100,000
$
400,000
$
500,000
The nontraceable operating costs of the resort amount to $4,000,000. By careful study, the management accountant at Sand and Sea has determined that, while the costs are not directly traceable, the total of $4 million could be fairly allocated to the four cost drivers as follows.…
Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the mainland by a high bridge. One resort is located on the beach and is called the Crystal Coast Resort. The other resort is located on the inland waterway which passes between the town and the mainland; it is called the Harborview Resort. Some key information about the two resorts for the current year is shown below.
Harborview
Crystal Coast
Total
Revenue (000s)
$
3,500
$
6,500
$
10,000
Square feet
75,000
225,000
300,000
Rooms
60
140
200
Assets (000s)
$
160,000
$
640,000
$
800,000
The nontraceable operating costs of the resort amount to $4,000,000. By careful study, the management accountant at Sand and Sea has determined that, while the costs are not directly traceable, the total of $4 million could be fairly allocated to the four cost drivers as follows.…
Chapter 3 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Write the income statement equation and define...Ch. 3 - Explain the difference between a. Revenues and...Ch. 3 - Define accrual accounting and contrast it with...Ch. 3 - Prob. 6QCh. 3 - Explain the expense recognition principle.Ch. 3 - Explain why stockholders equity is increased by...Ch. 3 - Explain why revenues are recorded as credits and...Ch. 3 - Complete the following matrix by entering either...
Ch. 3 - Complete the following matrix by entering either...Ch. 3 - Prob. 12QCh. 3 - State the equation for the net profit margin ratio...Ch. 3 - Which of the following is not a specific account...Ch. 3 - Which of the following is not one of the criteria...Ch. 3 - The expense recognition principle controls a....Ch. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - Prob. 9MCQCh. 3 - Prob. 10MCQCh. 3 - Prob. 3.1MECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues The following transactions...Ch. 3 - Identifying Expenses The following transactions...Ch. 3 - Prob. 3.5MECh. 3 - Prob. 3.6MECh. 3 - Determining the Financial Statement Effects of...Ch. 3 - Prob. 3.8MECh. 3 - Prob. 3.9MECh. 3 - Identifying the Operating Activities in a...Ch. 3 - Prob. 3.11MECh. 3 - Prob. 3.1ECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues Revenues are normally...Ch. 3 - Identifying Expenses Revenues are normally...Ch. 3 - Prob. 3.5ECh. 3 - Determining Financial Statement Effects of Various...Ch. 3 - Recording Journal Entries Sysco, formed in 1969,...Ch. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Preparing an Income Statement Refer to E3-10....Ch. 3 - Prob. 3.12ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.1PCh. 3 - Recording Journal Entries (AP3-2) Ryan Terlecki...Ch. 3 - Prob. 3.3PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5PCh. 3 - Prob. 3.6PCh. 3 - Prob. 3.7PCh. 3 - Recording Nonquantitative Journal Entries (P3-1)...Ch. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - Prob. 3.6APCh. 3 - Accounting for Operating Activities in a New...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Comparing Companies within an Industry Refer to...Ch. 3 - Analyzing a Company over Time Refer to the annual...Ch. 3 - Prob. 3.6CPCh. 3 - Evaluating an Ethical Dilemma Mike Lynch is the...
Knowledge Booster
Similar questions
- Mahre, Incorporated, a New York corporation, runs ski tours in several states. Mahre also has a New York retail store and an Internet store, which ships to out-of-state customers. The ski tours operate in Maine, New Hampshire, and Vermont, where Mahre has employees and owns and uses tangible personal property. Mahre has real property only in New York. Mahre has the following sales: Alaska Colorado State Maine New Hampshire New York Vermont Totals Mahre Sales Goods Total $ 23,194 10,612 191,997 352,048 65,431 277,441 319,423 $ 203,853 $ 758,852 $ 962,705 $ 23,194 10,612 35,913 26,721 65,431 41,982 Services 0 156,084 325, 327 0 Assume the following sales tax rates: Alaska (0 percent), Colorado (7.75 percent), Maine (8.5 percent), New Hampshire (6.75 percent), New York (8 percent), and Vermont (5 percent). If the ski tours are not subject to sales tax, how much sales and use tax must Mahre collect and remit in Maine?arrow_forwardWoodland Hotels Incorporated operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort: Pine Valley. Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office costs to each of the four resorts according to the annual revenue the resort generates. For the current year, the central office costs (000s omitted) were as follows: Front office personnel (desk, clerks, etc.) Administrative and executive salaries Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance $ 9,800 4,500 3,500 600 2,500 80 900 Carpet-cleaning contract Contract to repaint rooms 50 450 $ 21,580 Pine Valley Oak Glen $ 6,350 58,065 Mimosa $ 18,515 43,720 66 Total $ 34,130 269,535 Birch Glen Revenue (00es) Square feet $ 9,490 8е,198 $ 7,775 87,560 174 Rooms 86 122 448 Assets (000s) $ 96,660 $ 143,160 $ 75,730 $ 60,175 $ 375,725 Requlred: 1. Based on annual revenue, what amount…arrow_forwardWoodland Hotels Incorporated operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort: Pine Valley, Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office costs to each of the four resorts according to the annual revenue the resort generates. For the current year, the central office costs (000s omitted) were as follows: Front office personnel (desk, clerks, etc.) Administrative and executive salaries Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance Carpet-cleaning contract Contract to repaint rooms $ 9,200 4,600 3,600 600 2,600 80 920 50 460 $ 22,110 Pine Valley Oak Glen Revenue (0005) Square feet $ 6,550 58,585 Rooms 86 $ 9,790 80,910 122 Mimosa $ 10,845 44,125 Birch Glen $ 8,020 66 88,390 174 Assets (000s) $ 97,525 $ 144,440 $ 76,425 $ 60,745 Required: Total $ 35,205 272,010 448 $ 379,135 1. Based on annual revenue, what amount…arrow_forward
- Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the malnland by a high bridge. One resort is located on the beach and Is called the Crystal Coast Resort. The other resort is located on the Inland waterway which passes between the town and the malnland; It is called the Harborvlew Resort. Some key Information about the two resorts for the current year Is shown below. Harborview Crystal Coast $ 6,175 250,000 Total Revenue (000s) $ 3,825 $ 10,000 Square feet 80, 000 330,000 Rooms 66 150 216 Assets (000s) $ 110,000 $ 440,000 $ 550,000 The nontraceable operating costs of the resort amount to $4000,000. By careful study, the management accountant at Sand and Sea has determined that, while the costs are not directly traceable, the total of $4 million could be falrly allocated to the four cost drivers as follows. Amount Cost Driver Allocated Revenue $ 185,000 Square feet 115,000 Rooms 580,000 Assets (000s)…arrow_forwardplease Do not give image formatarrow_forwardVail is one of the largest ski resorts in the United States. Suppose that on October 1, 2024, Vail sells gift cards (lift passes) for $116,000. The gift cards are redeemable for one day of skiing during the upcoming winter season. The gift cards expire on April 1, 2025. Customers redeem gift cards of $21,600 in December, $31,600 in January, $26,600 in February, and $16,600 in March. Required: 1. to 4. Record the necessary entries in the Journalarrow_forward
- Decorous Stone and Tile (“Deco”) is a Canadian public company and wholesale distributor of various commercial and residential tiling solutions. Deco sources its products from various manufacturers throughout Canada and Asia. Its primary customers are construction companies and big box retailers throughout North America. Deco also has showrooms in several large Canadian cities where it sells directly to local contractors. Deco’s income statement for the year ending December 31, 2021, is as follows: Expenses: Additional information: 1. Employee benefits expense includes $37,500 for golf memberships for Deco’s account managers and company executives. 2. Interest and bank charges expense includes $4,750 paid to the CRA for late HST remittances. 3. General and administrative expenses includes warranty accrual of $1,000,000 (actual claims in 2021 were $650,000). 4. Advertising and promotion expense includes $200,000 of advertising in a foreigen newspaper that was distributed to Canadian…arrow_forwardVail is one of the largest ski resorts in the United States. Suppose that on October 1, 2021, Vail sells gift cards (lift passes) for $100,000. The gift cards are redeemable for one day of skiing during the upcoming winter season. The gift cards expire on April 1, 2022. Customers redeem gift cards of $20,000 in December, $30,000 in January, $25,000 in February, and $15,000 in March.Required:1. Record the sale of gift cards on October 1, 2021.2. Record the redemption of gift cards as of December 31, 2021.3. Record the redemption of gift cards in 2022 by preparing a summary entry as of March 31, 2022.4. Record the expiration (breakage) of gift cards on April 1, 2022.arrow_forwardplease answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)arrow_forward
- I need some help answering these two accounting ethics case problems. Please answer each question with one solid paragraph.arrow_forwardASA Tours operates a network of offices around the globe specializing in local tours given by local residents and academics. Depending on the year. It operates at between 60 and 70 percent of capacity, which consists of locals who meet the criteria required by ASA. ASA operates three types of tours. Web-based tours consist of live-stream broadcasts with a limit of 15 participants. Group tours consist of small groups of no more than eight people. Finally, there are individual tours, which are personalized tours for no more than six people. Segmented Income statements for a typical month appear as follows: Routes Sales Variable costs Fixed costs allocated to tours Operating profit (loss) Web-Based $ 102,800 21,100 32,896 $ 48,884 $ (30,292) ASA is considering dropping the group tours. If these tours are dropped, the revenue associated with the tours would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 35 percent. Required:…arrow_forwardDuPont Analysis: Papa John's International Inc. Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John's trademark in the United States and internationally. It operates through four segments: Domestic Company-Owned Restaurants, North America Commissaries, North America Franchising, and International Operations. The company also operates dine-in and delivery restaurants. As of December 29, 2019, it operated 5,395 Papa John's restaurants, which included 598 company-owned and 4,797 franchised restaurants. The company was founded in 1984 and is headquartered in Louisville, Kentucky. ROE ROA Managing Exenses Net Profit margin Papa John's International Inc. USD Millions 2015 Return on Capital shareholders have invested in the company Sales COGS SG&A Interest Expense ROE Total Assets Cash = Net Profit Total Asset X Margin Turnover Additional Paid-In Capital Retained Earnings Treasury Stock Summarize your DuPont Analysis findings…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning