Vulcan Flyovers offers scenic overflights of Mount Saint HeleHs, lne concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Planning Budget 50 Actual Flexible Budget 48 Results 48 Flights (q) Revenue ($320.e0q) Expenses: Wages and salaries ($4,0e0 + $82.00g) Fuel ($23.e0q) Airport fees ($650 + $38.0eq) Aircraft depreciation ($7.e0q) Office expenses ($190 + $2.00g) Total expense $ 13,650 $ 15,360 $ 16,000 8,430 1,260 2,350 336 460 7,936 1,104 2,474 336 8,100 1,150 2,550 350 286 290 12,136 $ 3,224 12,836 12,440 Net operating income $ 814 $ 3,560 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an

Vulcan Flyovers offers scenic overflights of Mount Saint HeleHs, lne concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Planning Budget 50 Actual Flexible Budget 48 Results 48 Flights (q) Revenue ($320.e0q) Expenses: Wages and salaries ($4,0e0 + $82.00g) Fuel ($23.e0q) Airport fees ($650 + $38.0eq) Aircraft depreciation ($7.e0q) Office expenses ($190 + $2.00g) Total expense $ 13,650 $ 15,360 $ 16,000 8,430 1,260 2,350 336 460 7,936 1,104 2,474 336 8,100 1,150 2,550 350 286 290 12,136 $ 3,224 12,836 12,440 Net operating income $ 814 $ 3,560 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an

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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You are working in the accounting department of a mid-sized company (Bespin Tibanna Gas Systems, LLC). As a young staff, one of your first tasks is to manage the fixed assets for the company. Below is a short list of some of the assets.Asset - Placed in Service - Basis (when placed into service)Used Copier November - 12 - $3,500New Computer - June - 6 3,500New Delivery Truck (more than 4K lbs) - October 28 - $35,000Furniture - July 15 - $58,000Delivery Auto - January 31 - $40,800 Which depreciation convention will be used for the depreciation of the office Furniture?
You are working in the accounting department of a mid-sized company (Bespin Tibanna Gas Systems, LLC). As a young staff, one of your first tasks is to manage the fixed assets for the company. Below is a short list of some of the assets.Asset - Placed in Service - Basis (when placed into service)Used Copier November - 12 - $3,500New Computer - June - 6 3,500New Delivery Truck (more than 4K lbs) - October 28 - $35,000Furniture - July 15 - $58,000Delivery Auto - January 31 - $40,800 Assuming the computer is a five-year asset, what would be the deprecation amount for the 4thyear (assuming no Sec 179 or 168(k) deprecation was taken)
You are working in the accounting department of a mid-sized company (Bespin Tibanna Gas Systems, LLC). As a young staff, one of your first tasks is to manage the fixed assets for the company. Below is a short list of some of the assets.Asset - Placed in Service - Basis (when placed into service)Used Copier November - 12 - $3,500New Computer - June - 6 3,500New Delivery Truck (more than 4K lbs) - October 28 - $35,000Furniture - July 15 - $58,000Delivery Auto - January 31 - $40,800 Calculate the maximum amount of §179 allowed assuming they meet all of all requirements for §179 Depreciation.
The Lakeshore Hotel’s guest-days of occupancy and custodial supplies expense over the last seven months were: Month Guest-Daysof Occupancy CustodialSupplies Expense March 7,000 $ 10,200 April 6,500 $ 10,100 May 9,000 $ 10,600 June 10,500 $ 10,900 July 12,500 $ 11,300 August 11,500 $ 11,100 September 9,000 $ 10,600 Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days. Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. (Round the Variable cost per guest-day to 2 decimal points.) 2. Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 11,300 guest-days? (Do not round your intermediate…
Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Wages of $13,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $10,600. The Supplies account had a $490 debit balance at the beginning of the year. During the year, $4,870 of supplies are purchased. A physical count of supplies at December 31 shows $537 of supplies available. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $3,500 of unexpired insurance benefits remain at December 31. The company has earned (but not recorded) $600 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. The company has a bank loan and has incurred (but not recorded) interest expense of $4,500 for the year ended December 31. The company will…
Doug Allen has decided to go into the insect extermination business and to operate as Doug's Extermination Service. The following transactions were completed during the first month of operations, May, 20--. 1. Doug invested $35,000 cash in the business. 2. Purchased extermination equipment for $17,000 in cash. 3. Paid $700 rent for garage and office quarters. 4. Purchased chemicals (expense) for $1,100 from Low Glow Chem Co. on account. 5. Received $1,600 revenue for extermination service. 6. Paid telephone bill, $120 7. Paid assistant's salary, $700. 8. Earned $980 revenue for extermination service, on account. 9. Paid electric bill, $230. 10. Paid for truck repairs (expense), $145. 11. Paid $600 to Low Glow Chem Co., on account. 12. Paid $131 for gas and oil for truck (expense). 13. Received $1,400 revenue for extermination service. 14. Received $500 for services previously earned on account in transaction (8). 15. Paid assistant's salary, $900.…
Environmental Services, Inc., performs various tests on wells and septic systems. A few of thecompany’s business transactions occurring during August are described below: 1. On August 1, the company billed customers $2,500 on account for services rendered. Custom-ers are required to make full payment within 30 days. 2. On August 3, the company purchased testing supplies costing $3,800, paying $800 cash and charging the remainder on the company’s 30-day account at Penn Chemicals. The testing sup-plies are expected to last several months. 3. On August 5, the company returned to Penn Chemicals $100 of testing supplies that were notneeded. The return of these supplies reduced by $100 the amount owed to Penn Chemicals.4. On August 17, the company issued an additional 2,500 shares of capital stock at $8 per share.The cash raised will be used to purchase new testing equipment in September.5. On August 22, the company received $600 cash from customers it had billed on August 1.6. On August 29,…
Ferraro Consulting provides risk management services to individuals and to corporate clients. The company closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report: FERRARO CONSULTING INCOME STATEMENT FOR THE YEAR ENED DCEMBER 31, 2011 Revenue: Consulting revenue—individual clients $ 40,000 Consulting revenue—corporate clients 160,000 $200,000 Expenses: Advertising expense $16,000 Depreciation expense: computers 24,000 Rent expense 9,600 Office supplies expense . .• 4,400 Travel expense 57,800 Utilities expense 3,300 Telephone and Internet expense 1,900 Salaries expense 155,500 Interest expense 2,500 275,000 Net loss $ (75,000) The firm's statement of retained earnings indicates that a $25,000 cash dividend was declared and paid in 2011. a. Prepare the…
Faraday Electronic Service repairs stereos and DVD players. During the year, Faraday engaged in the following activities: On September 1, Faraday paid Wausau Insurance $4,860 for its liability insurance for the next 12 months. The full amount of the prepayment was debited to prepaid insurance. At December 31, Faraday estimates that $1,520 of utility costs are unrecorded and unpaid. Faraday rents its testing equipment from JVC. Equipment rent in the amount of $1,440 is unpaid and unrecorded at December 31. In late October, Faraday agreed to become the sponsor for the sports segment of the evening news program on a local television station. The station billed Faraday $4,350 for 3 months' sponsorship—November, December, and January—in advance. When these payments were made, Faraday debited prepaid advertising. At December 31, 2 months’ advertising has been used and 1 month remains unused. 1. Prepare adjusting entries at December 31 for these four activities. If an amount box…
Pen Supply Corp. began operations on March 1, 20Y5. On this date, the company paid for the following expenses: legal fees related to organization, $5,000; rent for the upcoming month, $1,500; license fees, $2,000; promotional costs, $1,200; and insurance for the fiscal year, $9,000. Prepare the journal entry to record the organizational expenses paid.
show Journal entries for the following: c. A bill for $150 was received and recorded in February for repairs and maintenance consumed in the current month. d. Consulting services recorded on sales receipt number 1004 for $2500 to Surf Rider Foundation were never performed even though cash had been received. Thus, the revenue had not been earned. e. consulting services of $8500 performed performed on the last day of the month for a new customer Blazing Boards but not invoiced to the customer or recorded into the accounting records until a few days into the next month. f. depreciation expense of $575 ($75 and $500 for Equipment and Furniture & Fixtures, respectively) needed to be recorded for the month.
i need help with this review Katsura Corporation incurred pre-operating costs: Investigatory expenses of $17,000 New employee training $25,000 Advertising $10,000 Land and building for use as a retail store when opened $150,000 Round your answer to 2 decimal places. Katsura wishes to maximize its deduction for start-up costs. Assuming they open for business on February 27th of the current year, what is the deduction for start-up costs?