Hi there I have this all completed except for letter H. I can’t seem to figure it out any help is apprecated. Thanks
The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. At the beginning of the year, it was estimated that the total direct labor cost for the year would be Rmb150,300 and the total manufacturing overhead cost would be Rmb232,965. At the beginning of the year, the inventory balances were as follows:

Raw Materials Rmb10,200
Work in Process Rmb11,400
Finished Goods Rmb8,600

——————————————————————————–

During the year, the following transactions were completed:

a. Raw materials purchased for cash, Rmb260,700.
b. Raw materials requisitioned for use in production, Rmb230,700 (materials costing Rmb221,300 were charged directly to jobs; the remaining materials were indirect).

c. Costs for employee services were incurred as follows:

Direct labor Rmb80,700
Indirect labor Rmb60,500
Sales commissions Rmb19,000
Administrative salaries Rmb50,300

——————————————————————————–

d. Rent for the year was Rmb18,700 (Rmb13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities).

e. Utility costs incurred in the factory, Rmb9,200.
f. Advertising costs incurred, Rmb14,000.
g. Depreciation recorded on equipment, Rmb24,900. (Rmb19,300 of this amount was on equipment used in factory operations; the remaining Rmb5,600 was on equipment used in selling and administrative activities.)

h. Manufacturing overhead cost was applied to jobs, Rmb ? .
i. Goods that had cost Rmb310,200 to manufacture according to their job cost sheets were completed.
j. Sales for the year totaled Rmb498,100. The total cost to manufacture these goods according to their job cost sheets was Rmb308,000.

Requirement 1:
Prepare journal entries to record the transactions for the year.

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1. Since merchandise inventory is normally sold within a year, how is it reported on the balance sheet? (Points: 2)
a. As a revenue
b. As the cost of merchandise sold
c. It does not appear on the Balance Sheet
d. As a current asset

2. ABC Company had ,000 in net sales, ,000 in cost of merchandise sold, ,000 in operating expenses, and ,000 in other income. What is ABC Company’s gross profit? (Points: 2)
a.,000
b.,000
c.,000
d. (,000)

3. Office salaries, depreciation of office equipment, and office supplies are examples of what type of expense? (Points: 2)
a.Selling expense
b. Miscellaneous expense
c. Administrative expense
d. Other expense

4. Gross profit is equal to (Points: 2)
a.sales plus (sales discounts and sales returns and allowances) plus cost of merchandise sold.
b.sales plus sales returns and allowances less sales discounts less cost of merchandise sold.
c.sales plus sales discounts less sales returns and allowances less cost of merchandise sold.
d.sales less (sales discounts and sales returns and allowances) less cost of merchandise sold.

5. Under a perpetual inventory system, (Points: 2)
a.accounting records continuously disclose the amount of inventory.
b. increases in inventory resulting from purchases are debited to Purchases.
c. there is no need for a year-end physical count.
d. the purchase returns and allowances account is credited when goods are returned to vendors.

6. Sometimes a(n) __________ is offered to buyers as a means of encouraging them to pay before the end of the credit period. (Points: 2)
a. accounts receivable
b. credit card
c. sales discount
d. cash sale

7. In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on the accounts is (Points: 2)
a.increase Cost of Merchandise Sold; increase Sales.
b.increase Cost of Merchandise Sold; decrease Merchandise Inventory.
c.increase Merchandise Inventory; decrease Cost of Merchandise Sold.
d. increase Accounts Receivable; decrease Merchandise Inventory.

8. If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are (Points: 2)
a. n/30.
b. FOB shipping point.
c. FOB destination.
d. consigned.

9. If a ,000 sale is made on January 1, with terms of 2/10, n/30, how much would the discount be if payment is made on January 9? (Points: 2)
a. ,000
b. 0
c. ,000
d. {content}

10. Apple Co. sells merchandise on credit to Zea Co. in the amount of ,000. The invoice is dated on September 15 with terms of 1/15, net 45. What is the amount of the discount, and up to what date must the invoice be paid in order for the buyer to take advantage of the discount? (Points: 2)
a. 0, September 30
b. 0, September 25
c. , September 30
d. , September 25

Thank you

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A plant asset with a cost of ,000 and accumulated depreciation of ,000 is sold for ,000.

(a) What is the book value of the asset at the time of sale?

Book Value $________

(b) What is the amount of gain or loss on the disposal?

Gain or loss on the disposal $___________

(c) How would the sale affect net income (increase, decrease, no effect) and by how much?

Net income would (have no effect/ increase by/decrease by) $_________

(d) How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much?

Total assets would (have no effect/ increase by/decrease by) $_________

(e) How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section?

Cash would (have no effect/ increase by/decrease by) $_________ (FA/IA/OA/NA)

Pick one per set of parenthesis. and fill in the blanks.
I am having some trouble with this question. Please, your help would be appreciated.
Thanks,

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Scully Corporation’s comparative balance sheets are presented below.
SCULLY CORPORATION
Balance Sheets
December 31
2008 2007
Cash $ 4,300 $ 3,700
Accounts receivable 21,200 23,400
Inventory 10,000 7,000
Land 20,000 26,000
Building 70,000 70,000
Accumulated depreciation (15,000) (10,000)
Total 0,500 0,100
Accounts payable $ 12,370 $ 31,100
Common stock 75,000 69,000
Retained earnings 23,130 20,000
Total 0,500 0,100

Scully’s 2008 income statement included net sales of 0,000, cost of goods sold of ,000, and
net income of ,000.
Instructions
Compute the following ratios for 2008.
(a) Current ratio.
(b) Acid-test ratio.
(c) Receivables turnover.
(d) Inventory turnover.
(e) Profit margin.
(f) Asset turnover.
(g) Return on assets.
(h) Return on common stockholders’ equity.
(i) Debt to total assets ratio.

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I have this due soon and I am stuck 100%…..If anyone can help I would appreciate it greatly

The following information is available for a company. Set up the income statement and balance sheet for 2007, then forecast the income statement and balance sheet for 2008, assuming sales grow by 15%

During 2008 the company is going to buy a 0,000 machine, depreciated SL over 6 years. It will do its financing for next year using bonds that have a coupon rate of 8%. It pays 0,000 a year on its long term debt.

2007 2008
Additional Financing Necessary
Dividends (30% payout)
Taxable Income
Depreciation ,000
Cash5,000
Accruals ,000
Raw material 0,000
Curr. Assets
LTD at 10% 0,000
Labor 2,500
Accum. Depr. 5,000
Short Term portion of LTD 0,000
A/P ,000
TL & NW
Operating Costs 5,000
A/R 5,000
Curr. Liab.
GFA ,550,000
Sales ,250,000
Total Assets
Comm. Stock 0,000
Interest ,000
Contri. To RE
COGS
NFA
EBIT
Other Fixed Costs ,000
Taxes (40%)
Gross Profits
RE 5,000
Inv. 5,000
N/P at 8% ,000
After Tax Income

I tried to accomplish it all and I even though i figured out all of the missing figures but the balance sheet didnt even out or anything. The numbers are for 2007 and we need to forecast for 2008

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If I look at the balance sheet I see accumulated depreciation, so can I take the change in that as depreciation?

The Income statement I have goes
sales
COGS
SG&A
restructuring charges
interest expense

So to calculate EBITDA, should I assume depreciation has been taken out of SG&A so I should add the change in accumulated depreciation to this amount?

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I need to prepare a budgeted balance sheet and I’m stuck on a few points, and I can’t resolve what im stuck on.

Actual Balances as at 30 November 2010:
Debtors 00 Inventory 00 Equipment 400 Loan 00 Bank Overdraft 00
accumulated depreciation (equipment) 60 Creditors 00 Capital ?

from budgeted income statement for month ended 31 dec 2010:
sales 65400
COS (35500)
gross profit 29900
depreciation (1200)
operating expenses (23840)
profit 4860

from cash budget month end 31 dem 2010
total expected receipts 140
total expected payments 319

other info
all sales made on credit, 60% sales collected in month of sale and the remainder in the next month. There are no bad debts

Purchases for Dec and Jan are expected to be 35970 and 38400. purchases are paid 70% in month of purchase and 30% in next month.

new equipment worth 2000 will be purchased on 31 dec on credit

operating expenses are generally paid as incurred, however 1000 of the wages included as operating expenses will still be unpaid at the end of Dec.

1200 of loan paid monthly

the owner will withdraw 500 cash for personal use during dec.

Could anyone please help.. This information to prepare a budgeted balance sheet. Thank you muchly.
I’m stuck with what numbers and under what catergories to place in the budgeted balance sheet.

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Cash$ 4,300$ 3,700
Accounts receivable21,20023,400
Inventory10,0007,000
Land20,00026,000
Building70,00070,000
Accumulated depreciation(15,000)(10,000)
Total0,500.000,100.00

Accounts payable$ 12,370,100
Common stock75,00069,000
Retained earnings23,13020,000
Scully’s 2011 income statement included net sales of 0,000, cost of goods sold ,000, and net income of ,000.
Show computation (equation) for the following:
(a) Current ratio
(b) Acid-test ratio
(c) Receivables turnover
(d) Inventory turnover
(e) Profit margin
(f) Asset turnover
(g) Return on assets
(h) Return on common stockholders’ equity
(i) Debt to total assets ratio

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I’m taking a self study from web. Query:

1) Is it true that all transactions that increase net assets affect income. ?

2) Is it true that a profitable firm can never run out of cash ?

3) Is it true that Accounts Receivable represents amounts owed by customers for goods and services they have already received. The customer, therefore, has the benefit of the goods and services before it pays cash ?

4) Prepaid assets are valued on the balance sheet at:
a) cost paid to acquire the asset
b) acquisition cost less accumulated depreciation
c) cost less expired portion
d) replacement cost
e) present value of future cash flows

5) After the firm estimates the amount of uncollectible accounts associated with the credit sales of each period, it makes an adjusting entry to debit _____ and credit _____.
a.Bad Debt Expense; Accounts Receivable, Net
b.Bad Debt Expense; Accounts Receivable, Gross
c.Allowance for Uncollectibles; Bad Debt Expense
d.Bad Debt Expense; Allowance for Uncollectibles
e.Allowance for Uncollectibles; Accounts Receivable, Gross

6) A manufacturing firm has manufacturing costs which become product costs. These manufacturing costs do not include:
a.direct material costs (or raw material costs)
b.direct labor costs
c.manufacturing overhead costs (sometimes called indirect manufacturing costs)
d.expenditures for administrative staff
e.expenditures for supervisors’ salaries, factory utilities, property taxes, insurance, and depreciation on manufacturing plant and equipment

Please explain.

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This is the balance sheets
as of Dec 31,06 Jan 1,06
Assets
Cash 70 23
Accounts Receivable 64 60
Allowance For Bad Debts (9) (5)
Inventory 129 137
Prepaid Expenses 15 12
Plant Assets 400 420
Accumulated Depreciation (90) (105)
Goodwill 54 63
Total Assets 633 605
Liabilities and Stockholders’ Equity
Accounts Payable 40 33
Interest Payable 5 9
Income Tax Payable 7 10
Bonds Payable 75 150
Common Stock 315 285
Retained Earnings 191 118
Total Liab’s and Stockholders’ Equity
633 605

Income Statement
Net Sales 876,000
Operating Expenses:
Cost of Sales 555,000
Selling and administrative expenses 119,000
Bad Debt Expense 6,000
Depreciation 27,000
Total 707,000
Operating Income 169,000
Other Revenue and Expenses:
Interest Expense 13,000
Loss on Bond Retirement 6,000
Gain on Sale of Equipment – 4,000
Impairment of Goodwill 9,000
Total 24,000
Income before income taxes 145,000
Income Taxes Expense 45,000
Net Income 100,000
Additional Information: During the year, a Company had two sales of equipment: It sold for
,000 old equipment that had cost ,000 and had ,000 accumulated depreciation; it also
sold another piece of equipment. New equipment worth ,000 was acquired in exchange for
,000 of bonds payable. Bonds payable of 0,000 were retired for cash at a loss. All stock
issuances were for cash.

here is my work:

Cash Flows from Operating Activities
Cash inflows:
Cash received from customers2
Cash outflows:
Cash paid for merchandise (540)
Cash paid for administrative and selling expenses (119)
Cash paid for interest (17)
Cash paid for taxes (48)
Prepaids (3)
Net cash provided by operating activities5
Cash flows from investing activities
Cash received from sale of capital assets (plant and equipment, etc.)
Net cash provided by investing activities 28
Cash flows from financing activities
Cash received from issuing stock
Cash paid to retire long-term debt (156)
Net cash used in financing activities (126)
Net increase in cash during the period
Cash balance, January 1 23
Cash balance, December 31

I also have all the T accounts and can post them if that’d be helpful.

THANK YOU!!!!!!!!

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I’m working on a project and have to forecast a company’s balance sheet 6 years into the future. I used the percentage-of-sales method and wound up with negative net fied assets for the final two years. This was due to an accumulated depreciation higher than fixed assets for the year. When combining them with total current assets, both years come out positive in total assets.

Is this something that can stay as is, or do net fixed assets always have to be positive?

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