Business
a. Insurance expense 2,807 Prepaid insurance 2,807b. Teaching supplies expense 2,433 Teaching supplies 2,433c. Depreciation expenseEquipment 11,227 Accumulated depreciationEquipment 11,277d. Depreciation expenseProfessional library 5,614 Accumulated depreciationProfessional library 5,614e. Unearned training fees 2,700 Training fees earned 2,700f. Accounts receivable 2,819 Tuition fees earned 2,819g. Salaries expense 100 Salaries payable 100h. Rent expense 2,097 Prepaid rent 2,097Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow.Additional Information:a. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,433 are available at year-end 2017. c. Annual depreciation on the equipment is $11,227. Annual depreciation on the professional library is $5,614. d. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,619 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. The balance in the Prepaid Rent account represents rent for December.
Eggz, Inc., is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. The equipment will cost $430,000 and will be eligible for 100 percent bonus depreciation. The equipment can be sold for $48,000 at the end of the project in 5 years. Sales would be $279,000 per year, with annual fixed costs of $48,000 and variable costs equal to 35 percent of sales. The project would require an investment of $27,000 in NWC that would be returned at the end of the project. The tax rate is 21 percent and the required return is 8 percent. Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV
Builders Corporation (Builders) is a general contractor. Builders wished to bid on a construction project and solicited bids from a variety of subcontractors. Four electrical subcontractors, Alpha, Beta, Gamma, and Delta, submitted bids to Builders. The bids were as follows: Alpha- $75,000; Beta- $85,000; Gamma- $90,000; Delta- $95,000. As Builders was preparing its bid on the construction project based upon the low bid submitted by Alpha, Builders president called Alpha and told him, "We wont be able to do it with your present bid, but if you can shave off $5,000, Im sure that the numbers will be there for us to get that project." Alpha responded, "No way! In fact, that bid we submitted was based on a $15,000 error; we cant do it for a cent less than $90,000." Nevertheless, Builders submitted its bid for the construction project using Alphas original $75,000 bid. Builders was not awarded the construction job and subsequently sued Alpha. Alpha is liable for:________.
Sales and purchase-related transactions using perpetual inventory system The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system. July 3. Purchased merchandise on account from Hamling Co., list price $85,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $960 added to the invoice. 5. Purchased merchandise on account from Kester Co., $47,550, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Parsley Co., $16,680, terms n/15. The cost of the goods sold was $9,440. 7. Returned merchandise with an invoice amount of $13,500 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $212,670. The cost of the goods sold was $144,350. 22. Sold merchandise on account to Tabor Co., $60,200, terms 2/10, n/30. The cost of the goods sold was $33,820. 23. Sold merchandise for cash, $38,610. The cost of the goods sold was $22,180. 28. Paid Parsley Co. a cash refund of $6,070 for returned merchandise from sale of July 6. The cost of the returned merchandise was $3,630. 31. Paid MasterCard service fee of $3,510.Instructions Journalize the transactions.
Four Types of Organizational Culture Organizational culture is a system of shared beliefs and values that develops within an organization and guides its members' behavior. Culture can vary considerably across organizations, with each placing different emphases on risk-taking, treatment of employees, teamwork, rules and regulations, conflict and criticism, and rewards. This activity is important because different types of cultures are better suited to achieving different strategic goals, and managers can use this knowledge to their benefit. The goal of this activity is to challenge your knowledge of the four types of organizational culture. Read the description of an organization's culture and write each name to the type of organizational culture it best depicts.Daveed Miranda Olivia Caprice Joseph Aaron Wallace Leslie Clan Adhocracy Hierarchy Market1. Daveed- Works for a real estate company with a culture that values employees'ability to focus on the customer, react quickly, an deliver quality work on time.2. Miranda- works for a new entrepreneurial company that is characterized as being creative, making innovative products, and being adaptable in the marketplace.3. Olivia works for an investment firm with a culture that focuses on productivity and profits over employee development and satisfaction.4. Caprice- works for a regional airline whose corporate culture encourages employees to collaborate and become involved to increase their job satisfaction.5. Joseph- works for a telecommunications company whose culture devotes considerable resources to hiring and developing employees.6. Aaron- works for a computer company whose corporate culture is characterized by a formalized, structured work environment aimed at achieving effectiveness.7. Wallace- works for an advertising agency whose corporate culture encourages employees to take risks and experiment with new ways of getting things done.8. Leslie- works for a pharmaceutical company with a corporate culture that institutes a variety of control mechanisms to measure efficiency, timeliness, and reliability in the creation and delivery of products.
During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $55,000. DZC returned $8,500 of this merchandise to the manufacturer for credit on its account. DZC then sold $43,000 of the remaining goods at a selling price of $69,600. DZC records sales returns as they occur and then records estimated additional returns at year-end. During the year, customers returned goods that had been sold at a price of $7,300. These goods were in perfect condition, so they were put back into DZCs inventory at their cost of $4,500. At year-end, DZC estimated $9,510 of current year merchandise sales would be returned to DZC in the following year; DZC estimates $5,800 as its cost of this merchandise.Required:Prepare journal entries to record DZC's transactions and estimates, assuming DZC uses a perpetual inventory system.
Lane Stevens is to retire from the partnership of Stevens and Associates as of March 31, the end of the current fiscal year. After closing the accounts, the capital balances of the partners are as follows: Lane Stevens, $150,000; Cherrie Ford, $70,000; and LaMarcus Rollins, $60,000. They have shared net income and net losses in the ratio of 3:2:2. The partners agree that the merchandise inventory should be increased by $22,300 and the allowance for doubtful accounts should be increased by $1,300. Stevens agrees to accept a note for $100,000 in partial settlement of his ownership equity. The remainder of his claim is to be paid in cash. Ford and Rollins are to share equally in the net income or net loss of the new partnership.a. Journalize the entry to record the adjustment of the assets to bring them into agreement with current market prices. b. Journalize the entry to record the withdrawal of Stevens from the partnership.