The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:

Purchased $400,000 of materials.
Used $362,100 of direct materials in production.
Incurred $104,200 of direct labor wages.
Applied factory overhead at a rate of 42% of direct labor cost.
Transferred $483,700 of work in process to finished goods.
Sold goods with a cost of $460,300.
Revenues earned by selling bikes, $761,600.
Incurred $154,800 of selling expenses.
Incurred $75,300 of administrative expenses.

Required:
Prepare the income statement for Rushmore Biking for the month ending February 28

Answer: See attachment

Explanation:

Note that in the attachment,

Gross profit was the difference between the revenue and the cost of goods sold. This is:

= 761600 - 460300

= 301300

The selling and administrative expenses was the addition of the selling expense and the administrative expenses.

Check the attachment for further details.

How much would the Gerrards have to put down if the lender required a minimum 20 percent down payment

On January 20, 2017, Tamira Nelson, the accountant for Picton Enterprises, is feeling pressure to complete the annual financial statements. The company president has said he needs up-to-date financial statements to share with the bank on January 21 at a dinner meeting that has been called to discuss Picton's obtaining loan financing for a special building project. Tamira knows that she will not be able to gather all the needed information in the next 24 hours to prepare the entire set of adjusting entries. Those entries must be posted before the financial statements accurately portray the company's performance and financial position for the fiscal period ended December 31, 2016. Tamira ultimately decides to estimate several expense accruals at the last minute. When deciding on estimates for the expenses, she uses low estimates because she does not want to make the financial statements look worse than they are. Tamira finishes the financial statements before the deadline and gives them to the president without mentioning that several account balances are estimates that she provided.
Required:
1. Identify several courses of action that Tamira could have taken instead of the one she took.
2. If you were in Tamira's situation, what would you have done?

At the beginning of the month, the Forming Department of Martin Manufacturing had 17,000 units in inventory, 30% complete as to materials, and 15% complete as to conversion. During the month the department started 67,000 units and transferred 72,500 units to the next manufacturing department. At the end of the month, the department had 11,500 units in inventory, 85% complete as to materials and 60% complete as to conversion. If Martin Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.

A) 82,275 materials; 79,400 conversion

B) 65,275 materials; 62,400 conversion

C) 64,450 materials; 69,550 conversion

D) 77,175 materials; 79,400 conversion

E) 77,175 materials; 76,850 conversion

Lina Martinez wants to buy a new high-end audio system for her car. The system is being sold by two dealers in town, both of whom sell the equipment for the same price of $2,000. Lina can buy the equipment from Dealer A, with no money down, by making payments of $118.28 a month for 18 months; she can buy the same equipment from Dealer B by making 36 monthly payments of $70.31 (again, with no money down). Lina is considering purchasing the system from Dealer B because of the lower payment.
Find the APR for Dealer A.
Use the financial calculator and Find the APR for Dealer B

Cullumber Company has the following balances in selected accounts on December 31, 2020.

Accounts Receivable $0
Accumulated Depreciation—Equipment 0
Equipment 8,000
Interest Payable 0
Notes Payable 10,000
Prepaid Insurance 3,960
Salaries and Wages Payable 0
Supplies 2,200
Unearned Service Revenue 28,000

All the accounts have normal balances. The information below has been gathered at December 31, 2020.

1. Cullumber Company borrowed $11,400 by signing a 9%, one-year note on September 1, 2020.
2. A count of supplies on December 31, 2020, indicates that supplies of $820 are on hand.
3. Depreciation on the equipment for 2020 is $1,200.
4. Cullumber Company paid $3,960 for 12 months of insurance coverage on June 1, 2020.
5. On December 1, 2020, Cullumber collected $28,000 for consulting services to be performed from December 1, 2020, through March 31, 2021. The company had performed 1/4 of the services by December 31.
6. Cullumber performed consulting services for a client in December 2020. The client will be billed $4,200.
7. Cullumber Company pays its employees total salaries of $5,400 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2020.

Required:
Prepare adjusting entries for the seven items described above.

On July 1, 2020, Buffalo Inc. made two sales.

1. It sold land having a fair value of $904,290 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,422,914. The land is carried on Buffalo's books at a cost of $591,300.
2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $408,830 (interest payable annually).

Buffalo Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.

Required:
Record the two journal entries that should be recorded by Vaughn Inc. for the sales transactions above that took place on July 1, 2020.

The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2021 ($ in 000s): sales revenue, $22,600; cost of goods sold, $14,650; selling expense, $2,330; general and administrative expense, $1,230; dividend revenue from investments, $230; interest expense, $330. Income taxes have not yet been accrued. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in 000s). All transactions are material in amount.

1. Investments were sold during the year at a loss of $300. Foxworthy also had unrealized losses of $200 for the year on investments.
2. One of the company’s factories was closed during the year. Restructuring costs incurred were $2,000.
3. During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $800 in 2016 prior to the sale, and its assets were sold at a
loss of $1,800.
4. Foreign currency translation gains for the year totaled $600.

Required:
Prepare Foxworthy's single, continuous statement of comprehensive income for 2021, including basic earnings per share disclosures. Two million shares of common stock were outstanding throughout the year.

Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown:

Total Company North South
Sales $825,000 $550,000 $275,000
Variable expenses 495,000 385,000 110,000
Contribution margin 330,000 165,000 165,000
Traceable fixed expenses 156,000 78,000 78,000
Segment margin 174,000 $87,000 $87,000
Common fixed expenses 69,000
Net operating income $105,000

Required:
a. Compute the companywide break-even point in dollar sales.
b. Compute the break-even point in dollar sales for the North region.
c. Compute the break-even point in dollar sales for the South region.

Label the following hypothetical demand scenarios. Use the midpoint method.
Contain Yourself!, a plastic container company, raises the price of its signature "lunchbox" container from $3.00 to $4.00. As a result, the quantity sold drops from 20,000 to 15,000. ..........
Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5. ..................
CapCityMetro decides to increase bus fare rates from $2.00 to $2.21. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day. ...............
Inelastic unit-elastic Elastic perfectly elastic

A _____ has nonprofit status and is owned by its members

A. Securities firm

B. Investment company

C. Savings bank

D. Credit union

On January 1, 2021, Marigold Corp. had 461,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account.

February 1 Issued 124,000 shares
March 1 Issued a 10% stock dividend
May 1 Acquired 104,000 shares of treasury stock
June 1 Issued a 3-for-1 stock split
October 1 Reissued 61,000 shares of treasury stock

Required:
Determine the weighted-average number of shares outstanding as of December 31, 2021.

Norton Associates is an advertising agency in Austin, Texas. The company's controller estimated that it would incur $264,000 in overhead costs for the current year. Because the overhead costs of each project change in direct proportion to the amount of direct professional hours incurred, the controller decided that overhead should be applied on the basis of professional hours. The controller estimated 22,000 professional hours for the year. During October, Norton incurred the following costs to make a 20-second TV commercial for Central Texas Bank:Direct materials $ 32,000Direct professional hours ($65/hour) 1,200The industry customarily bills customers at 150% of total cost.1. Compute the predetermined overhead rate.2. What is the total amount of the bill that Norton will send Central Texas Bank?

Tom purchased a bond today with a 20-year maturity and a yield to maturity (YTM) of 6%. The coupon rate is 8% and coupons are paid annually. The par value is $1,000. Tom is going to hold this bond for 3 years and sell the bond at the end of year 3. The bond's yield to maturity will change to 8% at the time when Tom sells the bond. Assume coupons can be reinvested in short term securities over the next three years at an annual rate of 10%. Which of the following regarding Tom’s annual holding period return (HPR) of this bond investment is correct?

I. Tom’s annual HPR will be higher than 6% due to a capital gain from selling the bond at year 3
II. Tom’s annual HPR will be lower than 6% due to a capital loss from selling the bond at year 3
III. Tom’s annual HPR will be higher than 6% due to the higher reinvestment rate of 10%
IV. Tom’s annual HPR will be lower than 6% because gains from the 10% reinvestment rate will be largely offset by the capital loss from selling the bond at year 3

a. I only
b. II only
c. III only
d. I and III only
e. II and IV only

Debby’s Dance Studios is considering the purchase of new sound equipment that will enhance the popularity of its aerobics dancing. The equipment will cost $24,500. Debby is not sure how many members the new equipment will attract, but she estimates that her increased annual cash flows for each of the next five years will have the following probability distribution. Debby’s cost of capital is 13 percent. Use Appendix D for an approximate answer but calculate your final answers using the formula and financial calculator methods.
Cash Flow Probability
$ 3,840 0.4
5,280 0.2
8,110 0.3
10,370 0.1
a. What is the expected value of the cash flow? The value you compute will apply to each of the five years.
Expected Cash Flow $
b. What is the expected net present value? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places. )
Net Present Value $
c. Should Debby buy the new equipment?

Consider a second-price, sealed-bid auction with a seller who has one unit of the object which he values at s and two buyers 1, 2 who have values of v1 and v2 for the object. The values s, v1, v2 are all independent, private values. Suppose that both buyers know that the seller will submit his own sealed bid of s (and will keep the item if bid s wins), but they do not know the value of s. The buyers know that the seller must submit his bid before seeing the buyer’s bids and they know that the seller will actually run a second price auction with the three bids he has: his own bid and the two buyer’s bids. Each buyer knows his own value but not the other buyer’s value.

Now suppose that the seller opens the bids from the buyers and then submits his own bid after seeing the bids from the two buyers. The seller runs a second price auction with these bids in the sense that the object is awarded to the highests bidder (one of the two buyers or the seller) and that bidder pays the second highest bid. Now is it optimal for the buyers to bid truthfully; that is, should they each bid their true value? Give a brief explanation for your answer.

Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. If the Chicago-Atlanta round-trip air fare were $350, should you use the coupon to go to Miami?

"The​ ________ includes all international economic transactions with income or payment flows occurring within the year."

In its first year of business, Borden Corporation had sales of $2,020,000 and cost of goods sold of $1,210,000. Borden expects returns in the following year to equal 6% of sales. The adjusting entry or entries to record the expected sales returns is (are):

The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college students.
Data for Hopkins CPAs
Borrowed $90,000 from the bank to start the business.
Provided $60,000 of services to clients and collected $50,000 cash.
Paid salary expense of $32,000.
Data for Sports Clothing
Borrowed $90,000 from the bank to start the business.
Purchased $60,000 inventory for cash.
Inventory costing $26,000 was sold for $50,000 cash.
Paid $8,000 cash for operating expenses.
Required
Prepare an income statement, balance sheet, and statement of cash flows for each of the companies (Statement of Cash Flows only, items to be deducted must be indicated with a negative amount.)

Blight Financial has an investment in bonds issued by Searing Industries that are classified as trading securities. At December 31, Year 2, the Investment in Searing bonds account had a debit balance of $500,000, and the bonds were purchased at par so the $500,000 equals amortized cost. The Fair Value Adjustment account had a debit balance of $20,000. On December 31, Year 3, the amortized cost of those bonds has not changed, but the fair value of those bonds was $515,000. Which of the following will be included in the related journal entry dated December 31, Year 3?

a. Debit to Fair value adjustment for $5,000.
b. Credit to Fair value adjustment for $5,000.
c. Debit to Fair value adjustment for $25,000.
d. Credit to Fair value adjustment for $25,000.

Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. They are also able to claim $2,900 in recovery rebate credit ($2,400 for Marc and Michelle and $500 for Matthew). Assume they did not receive the recovery rebate in advance. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules).
A. What is Marc and Michelle’s gross income?
B. What is Marc and Michelle’s adjusted gross income?
C. What is the total amount of Marc and Michelle’s deductions from AGI?
D. What is Marc and Michelle’s taxable income?
E. What is Marc and Michelle’s taxes payable or refund due for the year?

If 60% of the population is female and 30% of females buy physical therapy services, and 70% of men buy physical therapy services, is there more demand for physical therapy from women or men?

Definition of economic costs
Darnell lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $842,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Darnell does not operate this piano business, he can work as an accountant and receive an annual salary of $48,000 with no additional monetary costs. No other costs are incurred in running this piano business.
Identify each of Darnell's costs in the following table as either an implicit cost or an explicit cost of selling pianos.
Implicit Cost
Explicit Cost
The wholesale cost for the pianos that Darnell pays the manufacturer
The salary Darnell could earn if he worked as an accountant
The wages and utility bills that Darnell pays
The rental income Darnell could receive if he chose to rent out his showroom
Complete the following table by determining Darnell's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit
Economic Profit
If Darnell's goal is to maximize his economic profit, he( should, should not) stay in the piano business because the economic profit he would earn as an accountant would be $______.

The following information pertains to Windsor Solar Panels, Inc.
July 1 Sold $128,000 of solar panels to Wildhorse Company with terms 3/15, n/30. Windsor uses the gross method to record cash discounts. Windsor estimates allowances of $1,500 will be honored on this sale.
12 Sold $82,000 of solar panels to Novak Corp. with terms of 4/10, n/60. Windsor expects no allowances related to this sale.
18 Novak Corp. paid Windsor for its July 12 purchase.
20 Wildhorse calls to indicate that the panels purchased on July 1 work well, but the color is not quite right. Windsor grants a credit of $2,100 as compensation.
29 Wildhorse Company paid Windsor for its July 1 purchase.
31 Windsor expects allowances of $5,340 to be grated in the future related to solar panel sales in July.
Prepare the necessary journal entries for Larkspur. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Date Account Titles and Explanation Credit Debit
July 18

Wilson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). Wilson Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2014 is based on budgeted output of 672,000 units, requiring 3,360,000 DLH. The company is able to schedule production uniformly throughout the year.

A total of 72,000 output units requiring 321,000 DLH was produced during May 2014. Manufacturing overhead (MOH) costs incurred for May amounted to $ 355,800. The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows:
Calculate the following amounts for Wilson Products for May 2014:

Total Amount Per Output Unit Per DLH Input Unit Monthly MOH Budget May 2017 Actual MOH Costs for May 2017
Variable MOH
Indirect manufacturing labor $1,008,000 $1.50 $0.30 $84,000 $84,000
Supplies 672,000 1.00 0.2 56,000 117,000
Fixed MOH
Supervision 571,200 0.85 0.17 47,600 41,000
Utilities 369,600 0.55 0.11 30,800 55,000
Depreciation 705,600 1.05 0.21 58,800 88,800
Total $33,26,400 $4.95 $0.99 $277,200 $355,800

Required:
a. Total manufacturing overhead costs allocated.
b. Variable manufacturing overhead spending variance.
c. Fixed manufacturing overhead spending variance.
d. Variable manufacturing overhead efficiency variance.
e. Production-volume variance Be sure to identify each variance as favorable (F) or unfavorable(U).

The following is a partial trial balance for General Lighting Corporation as of December 31, 2021:
Account Title Debits Credits
Sales revenue 3,100,000
Interest revenue 95,000
Loss on sale of investments 30,000
Cost of goods sold 1,340,000
Loss on inventory write-down (obsolescence) 350,000
Selling expense 450,000
General and administrative expense 225,000
Interest expense 94,000
There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%.
Required:
1. Prepare a single-step income statement for 2021, including EPS disclosures.
2. Prepare a multiple-step income statement for 2021, including EPS disclosures.

Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $140,000. The seller agreed to allow a 4 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $1,200. Southwest Milling had to hire a specialist to calibrate the loader. The specialist’s fee was $1,800. The loader operator is paid an annual salary of $60,000. The cost of the company’s theft insurance policy increased by $800 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $6,000.

Required:
a. Determine the amount to be capitalized in an asset account for the purchase of the loader.
b. Record the purchase in general journal format.

A company is about to begin production of a new product. The manager of the department that will produce one of the components for the new product wants to know how often the machine used to produce the item will be available for other work. The machine will produce the item at a rate of 200 units a day. Eighty units will be used daily in assembling the final product. Assembly will take place five days a week, 50 weeks a year. The manager estimates that it will take a full day to get the machine ready for a production run, at a cost of $250. Inventory holding costs will be $10 a year.

Required:
a. What run quantity should be used to minimize total annual costs?
b. What is the length of a production run in days?
c. During production, at what rate will inventory build-up?
d. lf the manager wants to run another job between runs of this item, and needs a minimum of 10 days per cycle for the other work, will there be enough time?
e. Given your answer to part d, the manager wants to explore options that will allow this other job to be performed using this equipment. Name three options the manager can consider.
f. Suppose the manager decides to increase the run size of the new product. How many additional units would be needed to just accommodate the other job? How much will that increase the total annual cost?

Thirteen students entered the business program at Sante Fe College 2 years ago. The following table indicates what each student scored on the high school SAT math exam and their​ grade-point averages​ (GPAs) after students were in the Sante Fe program for 2 years.
Student A B C D E F G
SAT Score 421 375 585 693 608 392 418
GPA 2.93 2.87 3.03 3.42 3.66 2.91 2.12
Student H I J K L M
SAT Score 484 725 506 613 706 366
GPA 2.50 3.24 1.97 2.73 3.88 1.58 ​
The​ least-squares regression equation that shows the best relationship between GPA and the SAT score is:________ ​(round your responses to four decimal ​places)​

A retrofitted​ space-heating system is being considered for a small office building. The system can be purchased and installed for ​$125,000​, and it will save an estimated 250,000 ​kilowatt-hours (kWh) of electric power each year over a five​-year period. A​ kilowatt-hour of electricity costs ​$0.09​, and the company uses a MARR of 15​% per year in its economic evaluations of refurbished systems. The market value of the system will be ​$7,000 at the end of five ​years, and additional annual operating and maintenance expenses are negligible.

Required:
Use the​ benefit-cost method to make a recommendation.