Preparing Closing Procedures The adjusted trial balance of Parker Corporation, prepared December 31, 2018, contains the following selected accounts. Adjusted Account Balances Debit Credit Service fees revenue $92,500 Interest income 2,200 Salaries expense $41,800 Advertising expense 4,300 Depreciation expense 8,700 Income tax expense 9,900 Retained earnings 42,700 a. Prepare entries to close these accounts in journal entry form. General Journal Description Debit Credit 12/31 Answer Service fees revenue Answer 92,500 Answer 0 Answer Answer 2,200 Answer 0 Answer Retained earnings Answer 0 Answer 92,500 To close the revenue accounts. 12/31 Answer Salaries expense Answer 0 Answer 0 Answer Prepaid advertising Answer 0 Answer 0 Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 To close the expense accounts. b. Post the closing entries to the appropriate T-accounts and calculate the ending balances for each account. Retained Earnings Bal. 42,700 Answer 0 Answer 0 Bal. Answer 0 Answer 0 Service Fees Revenue Bal. 92,500 Answer 0 Answer 0 Bal. Answer 0 Answer 0 Interest Income Bal. 2,200 Answer 0 Answer 0 Bal. Answer 0 Answer 0 Salaries Expense Bal. 41,800 Answer 0 Answer 0 Bal. Answer 0 Answer 0 Advertising Expense Bal. 4,300 Answer 0 Answer 0 Bal. Answer 0 Answer 0 Depreciation Expense Bal. 8,700 Answer 0 Answer 0 Bal. Answer 0 Answer 0

Answer:

Parker Corporation

a) Closing Journal Entries:

General Journal

Description                   Debit         Credit

12/31

Service fees revenue $92,500

Interest income               2,200

Retained earnings         42,700

Income Summary                          $137,400

To close credit items to the Income Summary.

Income Summary      $64,700

Salaries expense                           $41,800

Advertising expense                         4,300

Depreciation expense                       8,700

Income tax expense                         9,900

To close debit items to the Income Summary.

b. T-accounts:

                                      Debit       Credit

Service fees revenue

Adjusted balance                     $92,500

Income Summary      $92,500

Balance                      $0

Interest income

Adjusted balance                       $2,200

Income Summary      $2,200

Balance                      $0

Salaries expense

Adjusted balance    $41,800

Income Summary                     $41,800

Balance                                     $0

Advertising expense

Adjusted balance     $4,300

Income Summary                     $4,300

Balance                                     $0

Depreciation expense

Adjusted balance     8,700

Income Summary                   $8,700

Balance                                   $0

Income tax expense

Adjusted balance    9,900

Income Summary                     $9,900

Balance                                     $0

Retained earnings

Adjusted Balance                     42,700

Income Summary $42,700

Balance                 $0

Explanation:

a) Data:

Parker Corporation

Adjusted Account Balances

                                      Debit       Credit

Service fees revenue              $92,500

Interest income                            2,200

Salaries expense      $41,800

Advertising expense   4,300

Depreciation expense 8,700

Income tax expense    9,900

Retained earnings                     42,700

What Are the Differences Between Depository and Non-Depository Institutions? The financial services industry in the United States has undergone major changes over the years. For many years, it consisted of two major types of business organizations: depository institutions and non-depository institutions. However, today this distinction has become much less clear-cut. Now, both groups of institutions may offer many of the same financial products and financial services
How do depository institutions differ from non-depository institutions?
Depository institutions are required to ______ and _______ although the general terms used to describe these financial products may vary across the various types of institutions. Non-depository institutions, in contrast, accept cash contributions from their customers, but the cash inflows are not called ________ instead, they're called shares or premiums.
Depository institutions include:_______.
1. Commercial banks, savings banks, savings and loan associations (thrifts), and credit unions
2. Mutual funds, insurance companies, brokerage firms, and financial services companies

Flounder Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $21,420 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $446 per week, payable monthly.
2 Paid office rent for the month $1,071.
3 Purchased architectural supplies on account from Burmingham Company $1,547.
10 Completed blueprints on a carport and billed client $2,261 for services.
11 Received $833 cash advance from M. Jason to design a new home.
20 Received $3,332 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,784.
30 Paid $357 to Burmingham Company for accounts payable due.
Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Kit Company borrows $5 million at 12% on January 1, 2016, specifically for the purpose of financing the construction of a building that is expected to take 18 months to complete. Kit invests the total amount at 11% until it makes payments for the construction project. During the first year of construction, Kit incurs the following expenditures related to this construction project:
January 1 $1,000,000
April 1 1,600,000
October 1 1,200,000
December 31 500,000
Required:
1. Compute the amount of interest expense Kit would capitalize related to the construction of the building.$
2. Compute the amount of interest revenue Kit would recognize.$
3. Assume that Kit uses IFRS. What amount of interest would be capitalized related to the construction of the building?$

In addition to well-designed executive compensation packages, two other motivational forces can align the interests of managers with those of their shareholders. Which of the following actions could be used to reduce the potential for these agency conflicts and ensure that the firm’s managers will pursue the long-term wealth interests of their shareholders? Let the manager know that he or she will be fired if the company’s stock does not reach a certain target by the end of the year. Let the manager know that a takeover is possible if he or she doesn’t perform well.

Keisha Tombert, the bookkeeper for Vaughn Consulting, a political consulting firm, has recently completed a managerial accounting course at her local college. One of the topics covered in the course was the cost of goods manufactured schedule. Keisha wondered if such a schedule could be prepared for her firm. She realized that, as a service-oriented company, it would have no work in process inventory to consider. Listed below are the costs her firm incurred for the month ended August 31, 2020. Supplies used on consulting contracts $1,940 Supplies used in the administrative offices 1,700 Depreciation on equipment used for contract work 910 Depreciation used on administrative office equipment 1,450 Salaries of professionals working on contracts 16,400 Salaries of administrative office personnel 8,690 Janitorial services for professional offices 800 Janitorial services for administrative offices 580 Insurance on contract operations 880 Insurance on administrative operations 930 Utilities for contract operations 2,360 Utilities for administrative offices 1,930 (a) Prepare a schedule of cost of contract services performed (similar to a cost of goods manufactured schedule) for the month.

The difference between a budget and a standard is that standards are excluded from the cost accounting system, whereas budgets are generally incorporated into the cost accounting system. a budget expresses management's plans, while a standard reflects what actually happened. a budget expresses what costs were, while a standard expresses what costs should be. a budget expresses a total amount, while a standard expresses a unit amount.

The World Bank forecasts growth of world trade to be 10.20%, up from 18.50% in 2017. This change has caused Galapagos Islands Resort to analyze its current financial situation, beginning with reconciling its accounts. Galapagos Islands Resort received its bank statement showing a balance of $10,419.90. Its checkbook balance is $16,227.00. Deposits in transit are $4,139.00 and $7,320.00. There is a service charge of $30.00 and interest earned of $5.90. Notes collected total $2,216.00. Outstanding checks are No. 1021 for $2,037.00 and No. 1022 for $1,423.00. All numbers are in U.S. dollars. Help Galapagos Island Resort reconcile its balances.

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or $150,000, with equal probabilities of 0.5. The alternative riskless investment in T-bills pays 5%. (a) If you require a risk premium of 10%, how much will you be willing to pay for the portfolio? (b) Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be? (c) Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now? (d) Comparing your answers to (a) and (c), what do you conclude about the relationship between the required risk premium on a portfolio and the price at which the portfolio will sell?

1. The doctrine of judicial review allows:

a. the judicial branch to decide whether laws or actions of the other two branches are constitutional

b. the president to revoke United States Supreme Court decisions

c. the judicial branch to write laws when Congress is unwilling to do so

Demand curves slope___ because as prices increase and other things remain
the same, the quantity demanded___.

downward; decreases
downward; increases
upward; decreases
upward; increases

"An individual is unique and does not speak for or represent anything other than themselves." This statement is an argument against ______.
a.
Gender
b.
Diversity
c.
Stereotypes
d.
Ethnicity

TB MC Qu. 14-128 (Algo) On June 30, 2021, K Co. had outstanding... On June 30, 2021, K Co. had outstanding 9%, $15,000,000 face value bonds maturing on June 30, 2026. Interest is payable semiannually every June 30 and December 31. On June 30, 2021, after amortization was recorded for the period, the unamortized bond premium was $65,000. On that date, K acquired all its outstanding bonds on the open market at 99 and retired them. At June 30, 2021, what amount should K Co. recognize as gain on redemption of bonds before income taxes

On December 31, 2021, Harris Co. leased a machine from Catt, Inc. for a five-year period. Equal annual payments under the lease are $2,100,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. The five lease payments are discounted at 10% over the lease term. The lease is appropriately accounted for as a finance lease by Harris. In its December 31, 2022 balance sheet, Harris should report a lease liability of:___________
a. $6,340,000
b. $6,240,000.
c. $5,706,000.
d. $5,222,400

Which of the following is NOT a typical characteristic of a Minstrel

A. wandering, versatile entertainers


B. sometimes members f aristocracy and royalty


C. musicians of the fringe society


D. descriptive accounts; music not notated

2. The text makes it look as if maximizing output is the goal of society.
a. Is maximizing output the goal of society?
b. If the country is a Christian country, should it be?
c. If not, what should it be? (Religious)

Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $20 per unit. The company’s monthly fixed expense is $20,800. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)

Stagflation occurs when high inflation combines with...

a. high unemployment and a low level of production.
b. low unemployment and a high level of production.
c. a drop in buying power and a rise in workers’ wages.
d. a rise in buying power and a drop in workers’ wages.

The comparative statements of Simpson Company are shown below.
SIMPSON COMPANY
Income Statements
For the Years Ended December 31
2020 2019
Net sales $780,000 $624,000
Cost of goods sold 440,000 405,600
Gross profit 340,000 218,400
Selling and administrative
expenses 176,880 149,760
Income from operations 163,120 68,640
Other expenses and losses
Interest expense 9,920 7,200
Income before income taxes 153,200 61,440
Income tax expense 34,000 14,000
Net income $119,200 $47,440
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $138,200 $132,000
Income taxes payable 25,300 24,000
Total current liabilities 163,500 156,000
Bonds payable 132,000 120,000
Total liabilities 295,500 276,000
Stockholders’ equity
Common stock ($10 par) 150,000 130,000
Retained earnings 330,300 246,000
Total stockholders’ equity 480,300 376,000
Total liabilities and stockholders’
equity $775,800 $652,000
All sales were on account. Net cash provided by operating activities was $108,000. Capital expenditures were $47,000, and cash dividends were $30,900.
Instructions:
Compute the following ratios for 2019:
A) Earnings per share.
B) Return on common stockholders’ equity.
C) Return on assets. .
D) Current ratio.
E) Accounts receivable turnover.
F) Average collection period.
G) Inventory turnover.
H) Days in inventory
I) Times interest earned
J) Asset turnover
K) Debt to asset ratio
L) Current cash debt coverage
M) Cash debt coverage
N) Free cash flow

Industries manufactures​ custom-designed playground equipment for schools and city parks. Outdoor expected to incur $707,200 of manufacturing overhead​ cost, 41,600 of direct labor​ hours, and $1,414,400 of direct labor cost during the year​ (the cost of direct labor is ​$34 per​ hour). The company allocates manufacturing overhead on the basis of direct labor hours. During December​, Outdoor completed Job 307. The job used 155 direct labor hours and required $15,100 of direct materials. The City of Adams has contracted to purchase the playground equipment at a price of 26% over manufacturing cost.
Requirement
1. Calculate the manufacturing cost of Job 302.
First identify the formula, then calculate the predetermined overhead rate.
Estimated yearly overhead costs Estimated yearly direct labor hours Predetermined overhead rate 627,000 41,800 15 per hour
2. Calculate the manufacturing cost of Job 302.
Direct materials
Direct labor
Manufacturing overhead 14,500
Total job cost

The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors.
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2016
Assets
Cash $ 40,000
Accounts receivable 80,000
Inventories 55,000
Machinery (net) 120,000
Franchise (net) 30,000
Total assets $ 325,000
Liabilities and Shareholders’ Equity
Accounts payable $ 50,000
Allowance for uncollectible accounts 5,000
Note payable 55,000
Bonds payable 110,000
Shareholders’ equity 105,000
Total liabilities and shareholders’ equity $ 325,000
Additional information:______.
1. Cash includes a $27,000 restricted amount to be used for repayment of the bonds payable in 2025.
2. The cost of the machinery is $204,000.
3. Accounts receivable includes a $27,000 notes receivable from a customer due in 2024.
4. The notes payable balance includes accrued interest of $12,000. Principal and interest are both due on February 1, 2022.
5. The company began operations in 2016. Net income less dividends since inception of the company totals $42,000.
6. 57,000 shares of no par common stock were issued in 2016. 100,000 shares are authorized.
Required:
Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Chris has been newly appointed as the head of the HR team at Cuffington Corp. In an attempt to establish a more efficient and reliable workflow, Chris has taken up the responsibility of creating job descriptions and job specifications for the newly hired and current engineers within the organization. While doing so, Chris gathers information about the knowledge, skills, abilities, and other characteristics (KSAOs) required for an engineer to successfully perform the job. How will determining the KSAOs most benefit the organization

Selected transaction data of a business for September are summarized below. Determine the following amounts for September: (a) total revenue, (b) total expenses, (c) net income.
Service sales charged to customers on account during September exist33,000
Cash received from cash customers for services performed in September 28,000
Cash received from customers on account during September:
Services performed and charged to customers prior to September 13,000
Services performed and charged to customers during September 18,000
Expenses incurred prior to September and paid during September 6, 500
Expenses incurred and paid in September 36, 250
Expenses incurred in September but not paid in September 5,000
Expenses for supplies used and insurance (not included above) applicable to 2,000 September

Which of the following is true of marketing information systems?Group of answer choicesThey require search engine software and a word processing system to function.They are designed exclusively to handle information from internal sources.They consist of a coordinated collection of data, tools, techniques, and models to gather and interpret information for decision making.They cannot function without an efficient transaction processing system and a learning management system.

(Expenditure Approach to GDP) Given the following annual information about a hypothetical country, answer questions a through d. Billions of Dollars Personal consumption expenditures $200 Personal taxes 50 Exports 30 Depreciation 10 Government purchases 50 Gross private domestic investment 40 Imports 40 Government transfer payments 20 What is the value of GDP? What is the value of net domestic product? What is the value of net investment? What is the value of net exports?

(6.55) During the current year, Robert pays the following amounts associated with his own residence: Property taxes $3,000 Mortgage interest 8,000 Repairs 1,200 Utilities 2,700 Replacement of roof 4,000 In addition, Robert paid $1,500 of property taxes on the home that is owned and used by Anne, his daughter. a.Which of these expenses can Robert deduct? b.Can Anne deduct the $1,500 of property taxes? c.Are the deductions for AGI or from AGI (itemized)? d.How could the tax consequences be improved? Summarize your recommendation.

Entering foreign markets requires an analysis that examines each of the five major global entry strategies and their associated risks and rewards. It is important as a marketer that you understand the level of risk involved in each and also be able to identify which strategy firms are currently using.Firms looking to expand globally must address how they plan to enter international markets. Once a company has developed a marketing plan that involves global expansion, they have five major strategic options for how to enter the global marketplace: exporting, licensing, franchising, joint venture, and direct investment. Exporting is selling domestically produced products to foreign markets. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. Franchising is a contractual arrangement in which the franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and, typically, a share of the profits. In a joint venture, a domestic firm partners with a foreign company to create a new entity. Direct ownership requires a domestic firm to actively manage a foreign company or overseas facilities.Place the entry strategies (along with examples of each) in the correct order from least risky to most risky.Licensing - A legal process in which one firm pays to use or distribute another firm’s resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge.KFC shares recipes and distribution information for 5 new KFC restaurants owned by local Saudi Arabian investors. Memphis Grizzlies gives logo and artwork to a Japanese company to sell Grizzlies' shirts locally.Exporting - Selling domestically produced products to foreign markets.Laske farms sells oranges and peaches grown in Florida to stores in Mexico. GM builds cars in U.S. and sells them to European buyers.Direct ownership - A method of entering an international market in which a domestic firm actively manages a foreign company or overseas facilities. Wendy's opens 29 new company-owned stores in Canada to test a new Frosty flavor. Wal-Mart builds 7 company-owned stores in China.Franchising - A contractual arrangement in which the franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and, typically, a share of the profits. Subway provides a business owner in Vietnam the knowledge and information to run a Subway for a fee.Taylor Gas Stations allows an owner-operator in Chile the right to use its name and provides support as to how to best run the business.Joint venture - An arrangement in which a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company’s market.Starbucks partners with a Russian coffee company to open a new chain of coffee shops in Moscow.NBC and Univision start a Latin American television network.

Identifying Events as Accounting Transactions Do the following events result in a recordable transaction for The Toro Company?
1. Toro purchased robotic manufacturing equipment that it paid for by signing a note payable.
2. Toro’s president purchased stock in another company for his own portfolio.
3. The company lent $550 to an employee.
4. Toro ordered supplies from Office Depot to be delivered next week.
5. Six investors in Toro sold their stock to another investor.
6. The company borrowed $2,500,000 from a local bank.

A series of formal, written statements in which the plaintiff and defendant both state claims for the defense regarding the matter being disputed is which
of the following?
O Appeal
O Pleading
O Breach
O Trial

Luebke Incorporated has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $58,000 and at the end of the month was $30,600. The cost of goods manufactured for the month was $215,000. The actual manufacturing overhead cost incurred was $56,800 and the manufacturing overhead cost applied to Work in Process was $60,400. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is:

Lamonda Corp. uses a job order cost system. On April 1, the accounts had the following balances: Raw Materials Inventory $ 25,000 Work in Process Inventory 55,000 Finished Goods Inventory 60,000 The following transactions occurred during April: (a) Purchased materials on account at a cost of $136,000. (b) Requisitioned materials at a cost of $122,000, of which $28,000 was for general factory use. (c) Recorded factory labor of $155,000, of which $24,000 was indirect. (d) Incurred other costs: (Hint: Use Miscellaneous Accounts for the total of all costs incurred). Selling expense $ 44,000 Factory utilities 26,000 Administrative expenses 15,000 Factory rent 30,000 Factory depreciation 24,000 (e) Applied overhead at a rate equal to 135 percent of direct labor cost. (f) Completed jobs costing $375,000. (g) Sold jobs costing $402,000. (h) Recorded sales revenue of $500,000.