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Terms in this set (9)Sets with similar termsOther sets by this creatorVerified questionsACCOUNTING Assume the following scenarios. $$ \begin{matrix} \text{Scenario 1:} & \text{During 2018 , The Hubbard Group provides services of $\$ 900,000$ for repair of}\\ \text{ } & \text{a state highway. The company receives an initial payment of $\$ 300,000$ with the}\\ \text{ } & \text{balance to be received the following year.}\\ \text{Scenario 2:} & \text{Rolling Stone magazine typically charges $\$ 80$ for a one-year subscription. On}\\ \text{ } & \text{January $1,2018$ , Herman, age $72,$ purchases a one-year subscription to the}\\ \text{ } & \text{magazine and receives a 15$\\\%$ senior citizen discount.}\\ \text{Scenario3:} & \text{During 2018 , Waste Management provides services on account for $\$ 30,000$ . The}\\ \text{ } & \text{customer pays for those services in 2019 .}\\ \text{Scenario 4:} & \text{During 2018 , Sysco Corporation sells grocery items to one of its customers for}\\ \text{ } & \text{$\$ 260,000$ on account. Cash collections on those sales are $\$ 180,000$ in 2018 and}\\ \text{ } & \text{$\$ 60,000$ in 2019 . The remaining $\$ 20,000$ is written off as uncollectible in 2019 .}\\ \end{matrix} $$ For each scenario, calculate the amount of revenue to be recognized in 2018. Verified answer
ACCOUNTING Verified answer
ACCOUNTING Winkle, Kotter, and Zale is a small law firm that contains 10 partners and 10 support persons. The firm employs a job-order costing system to accumulate costs chargeable to each client, and it is organized into two departments-the Research and Documents Department and the Litigation Department. The firm uses predetermined overhead rates to charge the costs of these departments to its clients. At the begriming of the current year, the firm's management made the following estimates for the year: $$ \begin{matrix} \text{ } & \text{ } & \text{Department}\\ \text{ } & \text{Research and Documents} & \text{Litigation}\\ \text{Research-hours} & \text{20.000} & \text{\_\_}\\ \text{Direct attorney-hours} & \text{9.000} & \text{16.000}\\ \text{Materials and supplies} & \text{\$ 18.000} & \text{\$ 5.000}\\ \text{Direct attorney cost} & \text{\$ 430.000} & \text{\$ 800.000}\\ \text{Departmental overhead cost} & \text{\$ 700.000} & \text{\$ 320.000}\\ \end{matrix} $$ The predetermined overhead rate in the Research and Documents Department is based on research-hours, and the rate in the Litigation Department is based on direct attorney cost. The costs charged to each client are made up of three elements: materials and supplies used, direct attorney costs incurred, and an applied amount of overhead from each department ill which work is performed on the case. Case 618-3 was initiated on February 10 and completed on June 30. During this period, the following costs and time were recorded on the case: $$ \begin{matrix} \text{ } & \text{ } & \text{Department}\\ \text{ } & \text{Research and Documents} & \text{Litigation}\\ \text{Research-hours} & \text{18} & \text{-}\\ \text{Direct attorney-hours} & \text{9} & \text{42}\\ \text{Materials and supplies} & \text{\$ 50} & \text{\$ 30}\\ \text{Direct attorney cost} & \text{\$ 410} & \text{\$ 2.100}\\ \end{matrix} $$ 1. Compute the predetermined overhead rates used during the year in the Research and Documents Department and the Litigation Department. 2. Using the rates you computed ill requirement 1, compute the total overhead cost applied to Case 618-3. 3. What would be the total cost charged to Case 618-3? Show computations by department and in total for the case. 4. At the end of the year, the fir's records revealed the following actual cost and operating data for all cases handled during the year: $$ \begin{matrix} \text{ } & \text{ } & \text{Department}\\ \text{ } & \text{Research and Documents} & \text{Litigation}\\ \text{Research-hours} & \text{23.000} & \text{-}\\ \text{Direct attorney-hours} & \text{8.000} & \text{15.000}\\ \text{Materials and supplies} & \text{\$ 19.000} & \text{$6.000}\\ \text{Direct attorney cost} & \text{\$ 400.000} & \text{\$ 775.000}\\ \text{Departmental overhead cost} & \text{\$ 770.000} & \text{\$ 300.000}\\ \end{matrix} $$ Determine the amount of underapplied or overapplied overhead cost in each department for the year. Verified answer
ACCOUNTING For each line, fill in the missing amount to complete the accounting equation. $$ \begin{matrix}\text{Assets =} & \text{Liabilities +} & \text{Owner's Equity}\\\text{95,000} & \text{51,000} & \text{?}\\\text{?} & \text{44,000} & \text{20,000}\\\text{4,000} & \text{?} & \text{2,500}\\\text{138,000} & \text{70,000} & \text{?}\\\text{19,000} & \text{?} & \text{11,000}\\\text{?} & \text{4,000} & \text{12,000}\\\text{35,000} & \text{13,000} & \text{?}\\\text{?} & \text{120,000} & \text{49,000}\\\text{8,000} & \text{?} & \text{3,200}\\\text{86,000} & \text{48,000} & \text{?}\\\text{12,000} & \text{?} & \text{7,000}\\\text{?} & \text{8,000} & \text{22,000}\\\text{47,000} & \text{24,000} & \text{?}\\\text{?} & \text{29,000} & \text{13,000}\\\text{57,000} & \text{?} & \text{36,000}\\\text{125,000} & \text{69,000} & \text{?}\\\text{11,000} & \text{?} & \text{6,000}\\\text{?} & \text{2,000} & \text{3,300}\\\end{matrix} $$ Verified answer Other Quizlet setsRelated questionsWhich internal control principle is important in a control system for handling cash receipts?*The system for handling cash receipts uses an important internal control principle that separates the record keeping from the physical custody of assets. Deposits in transit are deposits the business knows are in route to the financial institution, but are not yet processed by the bank.
What are the internal control principles that should be applied to cash quizlet?Example of internal control principles that apply to cash disbursements:. Establishment of responsibility: only designated personnel (treasurer) is authorized to sign checks.. Segregation of duties: Different individuals approve and make payments; check signers do not record disbursements.. What is an effective internal control over cash receipts?To control cash transactions, organizations should adopt some of the following practices: Require background checks for employees, establish segregation of duties, safeguard all cash and assets in secure locations, and use a lockbox to accept cash payments from customers.
What is the most important internal control over cash?5 Important Internal Controls for Cash Disbursements. Segregate duties. The foundation of a good internal control system is segregation of duties. ... . Review authorized signors. ... . Consider requiring dual signatures. ... . Remember the wire transfers. ... . Reconcile bank accounts in a timely manner.. |
Which internal control principle is important in a control system for handling cash receipts quizlet?
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