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Question
Presented below are the year-end balances at December 31 of Laura's Laundry Service. (All accounts have normal balances.)
| Accounts receivable | $ 12,000 |
| Accounts payable | 25,000 |
| Accumulated depreciation Catering equipment | 30,000 |
| Advertising expense | 4,000 |
| Cash | 42,000 |
| Depreciation expense Catering equipment | 12,000 |
| Insurance expense | 3,000 |
| Catering equipment | 125,000 |
| Catering service revenue | 200,000 |
| Notes payable | 65,000 |
| Common stock | 3,000 |
| Retained earnings | 14,000 |
| Dividends | 18,000 |
| Prepaid insurance | 1,500 |
| Salaries payable | 4,000 |
| Salary expense | 97,000 |
| Supplies | 1,500 |
| Supplies expense | 9,000 |
| Repair expense | 7,000 |
| Unearned catering service revenues | 500 |
| Utilities expense | 9,500 |
a. Prepare the necessary closing entries at December 31.
b. Prepare a post-closing trial balance at December 31.
Answer
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Related questions
Q:
Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
3.0373 Assuming all revenue is to be received at the end of each year, what are the net cash flows for this investment if net present value equals ($11,790)?
A. $78,210
B. $10,920
C. $25,750
D. $237,547
E. $33,513
Q:
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A. $(251.52) but Scott would not pay any amount to acquire the machine because the NPV is negative.
B. $(251.52) and Scott would be willing to pay $29,748.48 for the machine.
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E. $900 but Scott would not be willing to acquire the machine.
Q:
A disadvantage of using the payback period to compare investment alternatives is that:
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Q:
A given project requires a $25,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1
Year 2
Year 3
Total $4,000
$15,000
$6,000
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i = 10% n = 2
i = 10% n = 3 .9091
.8264
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E. $0.00
Q:
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E. Net present value, payback period, accounting rate of return, and internal rate of return.
Q:
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A company is evaluating the purchase of a machine for $750,000 with a nine-year useful life and no salvage value. The company uses straight-line depreciation and it assumes that the annual net cash flow from using the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is the company's average investment?
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A company is evaluating the purchase of a machine for $900,000 with a six-year useful life and no salvage value. The company uses straight-line depreciation and it assumes that the annual net cash flow from using the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is the company's average investment?
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Time Value of Money Cash Flows
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The _______________________________ is computed by dividing a project's after-tax net income by the average amount invested in it.
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Q:
The process of restating future cash flows in terms of their present value is called _____________________.
Q:
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A. An annual period of 250 working days.
B. A monthly period separated into daily budgets.
C. A quarterly period separated into weekly budgets.
D. An annual period separated into weekly budgets.
E. An annual period separated into quarterly and monthly budgets.
Q:
The most useful budget figures are developed:
A. From the top down.
B. From the bottom up following a participatory process.
C. Solely by the budget committee.
D. By the CEO.
E. After the accounting period has begun.
Q:
Preparing a master budget is usually the responsibility of:
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B. The marketing department.
C. A budget committee.
D. The chief financial officer.
E. Lower level management.
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Part of the cash budget is based on information drawn from the capital expenditures budget.
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Activity-based budgeting is a budget system based on expected activities and their activity levels, which helps management plan for the resources required.
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The budgets within the master budget must be prepared in a definite sequence as dictated by GAAP.
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The ______________________________ shows the budgeted costs for direct materials, direct labor, and overhead based on the budgeted production volume from the production budget.
Q:
Clic, Inc. provides the following data for the next four months: March
April
May
June
July Unit Sales 500
580
530
600 Ending Raw Materials Inventory
663 lbs. Ending Finished Goods Inventory
174 units Desired ending inventory:
Raw materials = 30% of next month's production needs
Finished goods = 20% of next month's sales
Pounds of raw material required for each finished Unit = 5 lbs.
Direct labor hours per unit = 0.5 hrs
Direct labor rate = $12/hour
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Q:
Sweeny Co. is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted: April May Sales
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107,000 112,400 Operating expenses: Payroll
13,600 14,280 Advertising
5,400 5,700 Rent
1,500 1,500 Depreciation
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40,000 Bank loan payable
16,000 Additional data:
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(2) Purchases are all on credit, with 40% paid in the month of purchase and the balance paid in the following month.
(3) Operating expenses are paid in the month they are incurred.
(4) A minimum cash balance of $40,000 is required at the end of each month.
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Q:
Which of the following statements is true regarding absorption costing?
A. It is a not the traditional costing approach.
B. It is not permitted to be used for financial reporting.
C. It is not permitted to be used for tax reporting.
D. It assigns all manufacturing costs to products.
E. It requires only variable costs to be treated as product costs.
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Which of the following is not a product cost?
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Q:
When units produced exceed the units sold, income under absorption costing is higher than income under variable costing.