1. PROBLEM SOLVING. Solve for what is asked far. Use the space provided for your answer and campletesolution.1. Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computermonitors. After one year, he submitted the following data to his accountant.• He stopped renting out his cottage for P35,000 a year and used it as his factory.• The market value of the cottage increased from P700,000 to P710,000.• He spent P50,000 on materials, phone, utilities, etc.• He leased machines for P100,000 a year.• He paid P150,000 in wages.• He used P100,000 from his savings account, which pays five 5% interest a year.• He borrowed P400,000 at 10% a year from the bank.• He sold P1,600,000 worth of monitors.• Normal profit is P250,000 a year.Compute for the following:• Lee's explicit costs• Lee's implicit costs• Lee's economic profit

Explicit costs are the costs which are paid in cash for running the business operations. Implicit…

Answered: 1. PROBLEM SOLVING. Solve for what is…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter5: Closing Entries And The Post-closing Trial Balance

Section: Chapter Questions

Problem 1A: Rather than going directly to college, some students take time off to travel abroad, learn new...

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Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors. After one year, he submitted the following data to his accountant. • He stopped renting out his cottage for P35,000 a year and used it as his factory. • The market value of the cottage increased from P700,000 to P710,000. • He spent P50,000 on materials, phone, utilities, etc. • He leased machines for P100,000 a year. • He paid P150,000 in wages. • He used P100,000 from his savings account, which pays five 5% interest a year. • He borrowed P400,000 at 10% a year from the bank. • He sold P1,600,000 worth of monitors. • Normal profit is P250,000 a year.
Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors. After one year, he submitted the following data to his accountant. • He stopped renting out his cottage for P35,000 a year and used it as his factory. • The market value of the cottage increased from P700,000 to P710,000. • He spent P50,000 on materials, phone, utilities, etc. • He leased machines for P100,000 a year. • He paid P150,000 in wages. • He used P100,000 from his savings account, which pays five 5% interest a year. • He borrowed P400,000 at 10% a year from the bank. • He sold P1,600,000 worth of monitors. • Normal profit is P250,000 a year. Compute for the following: * Lee’s explicit costs * Lee’s implicit cost * Lee’s economic profit
Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors. After one year, he submitted the following data to his accountant. • He stopped renting out his cottage for P35,000 a year and used it as his factory. • The market value of the cottage increased from P700,000 to P710,000. • He spent P50,000 on materials, phone, utilities, etc. • He leased machines for P100,000 a year. • He paid P150,000 in wages. • He used P100,000 from his savings account, which pays five 5% interest a year. • He borrowed P400,000 at 10% a year from the bank. • He sold P1,600,000 worth of monitors. • Normal profit is P250,000 a year. Compute for the following: * Lee’s explicit costs
Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufacturessophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which isprivately owned, has approached a bank for a loan to help it finance its growth. The bank requires financialstatements before approving such a loan. You have been asked to help prepare the financial statements andwere given the following list of costs:1. Depreciation on salespersons’ cars.2. Rent on equipment used in the factory.3. Lubricants used for machine maintenance.4. Salaries of personnel who work in the finished goods warehouse.5. Soap and paper towels used by factory workers at the end of a shift.6. Factory supervisors’ salaries.7. Heat, water, and power consumed in the factory.8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.)9. Advertising costs.10. Workers’ compensation insurance for factory employees.11. Depreciation on chairs…
Suppose that you have been given a summer job as an intern at Issac Aircams, a company that man- ufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. You have been asked to help prepare the financial statements and were given the following list of costs: Depreciation on salespersons’ cars. Rent on equipment used in the factory. Lubricants used for machine maintenance. Salaries of personnel who work in the finished goods warehouse. Soap and paper towels used by factory workers at the end of a shift. Factory supervisors’ salaries. Heat, water, and power consumed in the factory. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) Advertising costs. Workers’ compensation insurance for factory employees. Depreciation on…
May I ask for help with this question? I got an answer of 800,000 (Rounded Up) Please check. P Co. incurred the following costs in developing software :
Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help in organizing its inventory. Due to the steep learning curve required to use the new software, Garrison must decide between hiring two part-time college students or one full-time employee. Each college student would work 20 hours per week, and would earn $1 S per hour. The full-time employee would work 40 hours per week and would earn $15 per hour plus the equivalent of $2 per hour in benefits. Employees are given two polo shirts to wear as their uniform. The polo-shirts cost Garrison $10 each. What are the relevant costs, relevant revenues, sunk costs, and opportunity costs for Garrison?
Rather than going directly to college, some students take time off to travel abroad, learn new skills, or volunteer. This period is known as a gap year Real Gap Experience provides hundreds of gap year traveling opportunities in over 45 countries around the world. The company offers everything from volunteering to building houses in Guatemala to teaching in China (for pay) to taking a year-long, around-the-world trip. What does this have to do with accounting, and why is it important? Every company needs to keep a record of its financial activities so that financial statements can be presented and used for decision making. Real Gap Experiences accounting records are most likely computerized, but the company still needs to go through the closing process. Why is the closing process important to a company such as Real Gap Experience? What types of accounts would be used during the closing process for this company?
Throughout the semester we have talked about the challenges facing office building owners in a post pandemic work environment where office workers are allowed to work remotely. You own a 500,00 square foot office building in a viable urban market, but you anticipate a stabilized vacancy rate of 40% for the next 10 years. If your investors require a 12% cash on cash return, how much could you spend per square foot to convert the vacant office space to micro-apartments if your project stabilized cash available to investors will be $12 million? Question 18 options: $200 per square foot. $800 per square foot. $250 per square foot. $500 per square foot.
Tom has recently opened The Sandal Shop in Warsaw (a store that specializes in fashionable sandals). In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: Sales price per pair of sandals $ 50,00 Variable expenses per pair of sandals $ 25,00 Contribution margin per pair of sandals $ 25,00 Fixed expenses per year: Building rental $ 14 000,00 Equipment depreciation $ 6 500,00 Selling $ 15 000,00 Administrative $ 19 500,00 Total fixed expenses $ 55 000,00 Required:1. What is the break-even point in unit sales and dollar sales? (Please interpret gained result) 2. Anna has decided that she must earn a profit of $20,000 the first year to justify her time and effort. How many pairs of sandals must be sold to attain this target profit? 3. Anna now has two salespersons working in the store—one full time…
Which of the following sets of Excel entries will correctly solve this problem: Jim paid $138,000 for an old house to renovate. He spent an average of $3,216 per quarter over the next two years as he readied the renovated house for sale. He wants to set the price of the house high enough so that he will earn an annual rate of return of 12% for his investment. Given that information, what price should Jim set on the house?
Suppose that Demont has been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Costs Product Cost/Period Cost 1. Depreciated on salesperson's cars 2. Rent on equipment used in the factory 3. Lubricants used for machine maintenance 4. Salaries of personnel who work in the finished goods warehouse 5. Soap and paper towels used by factory workers at the end of a shift

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