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Monday, August 19, 2013
Wednesday, October 17, 2012
Let's earn some extra cash for Christmas :)
This post is a bit off from my usual academic related posts so I apologize in advance if you feel this is post is too out of place.
My friend seems to be earning so well with this new racket of hers that I decided to give it a try. I'm not sure how this will work out for me (crossing fingers it will) and for you. But for now, since this doesn't seem to take much effort from me except to sign up, post my unique referral link to my blogs, facebook, twitter and all other online social media, I will give this a try.
So please, click my link, sign up as my referral and let's earn extra cash in time for Christmas :)
My friend seems to be earning so well with this new racket of hers that I decided to give it a try. I'm not sure how this will work out for me (crossing fingers it will) and for you. But for now, since this doesn't seem to take much effort from me except to sign up, post my unique referral link to my blogs, facebook, twitter and all other online social media, I will give this a try.
So please, click my link, sign up as my referral and let's earn extra cash in time for Christmas :)
Wednesday, May 30, 2012
Managerial Accounting P20-5A Near the end of 2011, the management of Simid Sports Co
Managerial Accounting
P20-5A Preparation of a complete master budget
Near the end of 2011, the management of Simid Sports Co, a merchandising company, prepared the following estimated balance sheet for December 31, 2011
Simid Sports Company
Estimated Balance Sheet
December 31,2011
Assets
Cash 18,000
Accounts Receivable 262,500
Inventory 75,000
Total Current Assets 355,500
Equipment 270,000
Less accumulated depreciation 33,750 236,250
Total Assets $ 591,750
Liabilities and Equity
Accounts Payable 180,000
Bank loan payable 7,500
Taxes payable (due 3/15/2012) 45,000
Total liabilities 232,500
Common Stock 236,250
Retained Earnings 123,000
Total stockholders equity 359,250
Total liabilities and equity $ 591,750
To prepare a master budget for January, February and March 2012, management gathers the following information
a. Simid Sports single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 2,500 units on December 1,2011, is more than management's desired level for 2012, which is 20% of the next months expected sales (in units). Expected sales are: January, 3,500 units, February, 4,500 units, March, 5,500 units, and April, 5,000 units.
b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% is collected in the first month after the month of sale and 40% in the second month, after the month of sale. For the December 31, 2011, accounts receivable balance, $62,500 is collected in January and the remaining $200,000 is collected in February.
c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purhase. For the December 31, 201, accounts payable balance, $40,000 is paid in January and the remaining $140,000 is paid in February.
d. Sales commissions equal to 20% of sales ar paid each month. Sales salaries (excluding commissions) are $30,000 per year.
e. General and administrative salaries are $72,000 per year. Maintenance expense equals $1,000 per month and is paid in cash.
f. Equipment reported in the December 31, 2011, balance sheet was purchased January 2011. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter:
January, $18,000, February, $48,000, and March, $14,400. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month's deprecation is taken for the month is which the equipment is purchased.
g. The company plans to acquire land at the end of March at a cost of $75,000, which will be paid with cash on the last day of the month.
h. Simid Sports has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at the end of each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $12,500 each month.
i. The income tax rate for the company is 40%. Income taxes on the first quarter's income will not be paid until Apri l15.
Required:
Prepare a master budget for each of the first three months of 2012; include the following component budgets (show supporting calcuations as needed, and round amounts to the nearest dollar).
1. Monthly sales budgets (showing both budgeted unit sales and dollar sales)
2. Monthly merchandise purchases budget.
3. Monthly selling expense budget.
4. Monthly general and administrative expense budgets.
5. Monthly capital expenditures budgets.
6. Monthly cash budgets.
7. Budgeted income statement for the entire first quarter (not for each month)
8. Budget balance sheet as of March 31, 2012.
Monday, December 12, 2011
Acc280 Financial Accounting: Continuing Cookie Chronicles 2 (CCC2) - as proprietorship
Continuing Cookie Chronicles 2 (CCC2)
Instructions
After researching the different forms of business organization, Natalie Koebel decides to operate “Cookie Creations” as a proprietorship. She then starts the process of getting the business running. In November 2009, the following activities take place.
November Transactions
Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account.
8 She opens a bank account under the name “Cookie Creations” and transfers $500 from her personal account to the new account.
11 Natalie pays $165 to have advertising brochures and posters printed. She plans to distribute these as opportunities arise. (Hint: Use Advertising Supplies.)
13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash.
14 Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $750. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business.
16 Natalie realizes that her initial cash investment is not enough. Her grandmother lends her $2,000 cash, for which Natalie signs a note payable in the name of the business. Natalie deposits the money in the business bank account. (Hint: The note does not have to be repaid for 24 months.As a result,the note payable should be reported in the accounts as the last liability and also on the balance sheet as the last liability.)
17 She buys more baking equipment for $900 cash.
20 She teaches her first class and collects $125 cash.
25 Natalie books a second class for December 4 for $150. She receives $30 cash in advance
as a down payment.
30 Natalie pays $1,320 for a one-year insurance policy that will expire on December 1, 2010.
Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account.
8 She opens a bank account under the name “Cookie Creations” and transfers $500 from her personal account to the new account.
11 Natalie pays $165 to have advertising brochures and posters printed. She plans to distribute these as opportunities arise. (Hint: Use Advertising Supplies.)
13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash.
14 Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $750. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business.
16 Natalie realizes that her initial cash investment is not enough. Her grandmother lends her $2,000 cash, for which Natalie signs a note payable in the name of the business. Natalie deposits the money in the business bank account. (Hint: The note does not have to be repaid for 24 months.As a result,the note payable should be reported in the accounts as the last liability and also on the balance sheet as the last liability.)
17 She buys more baking equipment for $900 cash.
20 She teaches her first class and collects $125 cash.
25 Natalie books a second class for December 4 for $150. She receives $30 cash in advance
as a down payment.
30 Natalie pays $1,320 for a one-year insurance policy that will expire on December 1, 2010.
Instructions
(a) Use the journal template provided and prepare journal entries to record the November transactions. Remember to use correct journal entry formatting.
(b) Post the journal entries to general ledger accounts. Remember to use correct posting references. Also, note that we do not use descriptions in the ledger account "description" column for regular journal entry postings.
(c) Prepare a trial balance at November 30. Be sure to total the columns of your trial balance. Do NOT include accounts that do not have a ledger balance.
Acc280 Financial Accounting: Continuing Cookie Chronicles 2 (CCC2) - as proprietorship
Continuing Cookie Chronicles 2 (CCC2)
After researching the different forms of business organization, Natalie Koebel decides to operate “Cookie Creations” as a proprietorship. She then starts the process of getting the business running. In November 2009, the following activities take place.
November Transactions
Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account.
8 She opens a bank account under the name “Cookie Creations” and transfers $500 from her personal account to the new account.
11 Natalie pays $165 to have advertising brochures and posters printed. She plans to distribute these as opportunities arise. (Hint: Use Advertising Supplies.)
13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash.
14 Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $750. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business.
16 Natalie realizes that her initial cash investment is not enough. Her grandmother lends her $2,000 cash, for which Natalie signs a note payable in the name of the business. Natalie deposits the money in the business bank account. (Hint: The note does not have to be repaid for 24 months.As a result,the note payable should be reported in the accounts as the last liability and also on the balance sheet as the last liability.)
17 She buys more baking equipment for $900 cash.
20 She teaches her first class and collects $125 cash.
25 Natalie books a second class for December 4 for $150. She receives $30 cash in advance
as a down payment.
30 Natalie pays $1,320 for a one-year insurance policy that will expire on December 1, 2010.
Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account.
8 She opens a bank account under the name “Cookie Creations” and transfers $500 from her personal account to the new account.
11 Natalie pays $165 to have advertising brochures and posters printed. She plans to distribute these as opportunities arise. (Hint: Use Advertising Supplies.)
13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash.
14 Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $750. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business.
16 Natalie realizes that her initial cash investment is not enough. Her grandmother lends her $2,000 cash, for which Natalie signs a note payable in the name of the business. Natalie deposits the money in the business bank account. (Hint: The note does not have to be repaid for 24 months.As a result,the note payable should be reported in the accounts as the last liability and also on the balance sheet as the last liability.)
17 She buys more baking equipment for $900 cash.
20 She teaches her first class and collects $125 cash.
25 Natalie books a second class for December 4 for $150. She receives $30 cash in advance
as a down payment.
30 Natalie pays $1,320 for a one-year insurance policy that will expire on December 1, 2010.
Instructions
(a) Use the journal template provided and prepare journal entries to record the November transactions. Remember to use correct journal entry formatting.
(b) Post the journal entries to general ledger accounts. Remember to use correct posting references. Also, note that we do not use descriptions in the ledger account "description" column for regular journal entry postings.
(c) Prepare a trial balance at November 30. Be sure to total the columns of your trial balance. Do NOT include accounts that do not have a ledger balance.
Acc280 Financial Accounting: Continuing Cookie Chronicles 2 (CCC2) - as proprietorship
Continuing Cookie Chronicles 2 (CCC2)
After researching the different forms of business organization, Natalie Koebel decides to operate “Cookie Creations” as a proprietorship. She then starts the process of getting the business running. In November 2009, the following activities take place.
November Transactions
Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account.
8 She opens a bank account under the name “Cookie Creations” and transfers $500 from her personal account to the new account.
11 Natalie pays $165 to have advertising brochures and posters printed. She plans to distribute these as opportunities arise. (Hint: Use Advertising Supplies.)
13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash.
14 Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $750. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business.
16 Natalie realizes that her initial cash investment is not enough. Her grandmother lends her $2,000 cash, for which Natalie signs a note payable in the name of the business. Natalie deposits the money in the business bank account. (Hint: The note does not have to be repaid for 24 months.As a result,the note payable should be reported in the accounts as the last liability and also on the balance sheet as the last liability.)
17 She buys more baking equipment for $900 cash.
20 She teaches her first class and collects $125 cash.
25 Natalie books a second class for December 4 for $150. She receives $30 cash in advance
as a down payment.
30 Natalie pays $1,320 for a one-year insurance policy that will expire on December 1, 2010.
Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account.
8 She opens a bank account under the name “Cookie Creations” and transfers $500 from her personal account to the new account.
11 Natalie pays $165 to have advertising brochures and posters printed. She plans to distribute these as opportunities arise. (Hint: Use Advertising Supplies.)
13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash.
14 Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $750. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business.
16 Natalie realizes that her initial cash investment is not enough. Her grandmother lends her $2,000 cash, for which Natalie signs a note payable in the name of the business. Natalie deposits the money in the business bank account. (Hint: The note does not have to be repaid for 24 months.As a result,the note payable should be reported in the accounts as the last liability and also on the balance sheet as the last liability.)
17 She buys more baking equipment for $900 cash.
20 She teaches her first class and collects $125 cash.
25 Natalie books a second class for December 4 for $150. She receives $30 cash in advance
as a down payment.
30 Natalie pays $1,320 for a one-year insurance policy that will expire on December 1, 2010.
Instructions
(a) Use the journal template provided and prepare journal entries to record the November transactions. Remember to use correct journal entry formatting.
(b) Post the journal entries to general ledger accounts. Remember to use correct posting references. Also, note that we do not use descriptions in the ledger account "description" column for regular journal entry postings.
(c) Prepare a trial balance at November 30. Be sure to total the columns of your trial balance. Do NOT include accounts that do not have a ledger balance.
Acc280 Financial Accounting: Continuing Cookie Chronicle 3 (CCC3) - as proprietorship
Chapter 3 - Continuing Cookie Chronicles 3 (CCC3)
Note: For transaction 3, round depreciation to the nearest dollar.
It is the end of November and Natalie has been in touch with her grandmother. Her grandmother asked Natalie how well things went in her first month of business. Natalie, too, would like to know if she has been profitable or not during November. Natalie realizes that in order to determine Cookie Creations’ income, she must first make adjustments.
Natalie puts together the following additional information.
1. A count reveals that $60 of brochures and posters remain at the end of November.
2. A count reveals that $35 of baking supplies were used during November.
3. Natalie estimates that all of her baking equipment will have a useful life of 5 years or 60 months. (Assume Natalie decides to record a full month’s worth of depreciation, regardless of when the equipment was obtained by the business.)
4. Natalie’s grandmother has decided to charge interest of 6% on the note payable extended on November 16. The loan plus interest is to be repaid in 24 months. (Assume that half a month of interest accrued during November.)
5. On November 30, a friend of Natalie’s asks her to teach a class at the neighborhood school. Natalie agrees and teaches a group of 35 first-grade students how to make Santa Claus cookies. The next day, Natalie prepares an invoice for $300 and leaves it with the school principal. The principal says that he will pass the invoice along to the head office, and it will be paid sometime in December.
6. Natalie receives a cellphone bill for $45. She uses her cellphone only for business. The bill is for services provided during November and is due December 15.
Instructions
Using the information that you have gathered through Chapter 2, and based on the new information above, do the following.
(a) Prepare and post the adjusting journal entries using the general journal template provided. Again, remember to use correct formatting in both the journal and the ledger.
(a) Prepare and post the adjusting journal entries using the general journal template provided. Again, remember to use correct formatting in both the journal and the ledger.
(b) Prepare an adjusted trial balance using the correct worksheet in your template workbook. Be sure to total the columns of your ATB and include only those accounts that have a balance.
(c) Using the adjusted trial balance, calculate Cookie Creations’ net income or net loss for the month of November. You are not required to prepare an income statement.
Tutorial: Continuing Cookie Chronicle 3 (CCC3)
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