Classify each item as an asset, liability, common stock, revenue, or expense.

(c) Amounts owed to suppliers.

Dreiling Company borrowed $300,000 on January 1, 2017, by issuing a$300,000, 8% mortgage note payable. The terms call for annual installment payments of $40,000 on December 31. Instructions (b) Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2017.

What is the excise tax on Cadillac insurance plan?

a. What is another term for bad debts expense? b. What can businesses do to prevent bad debts?

David Dobrovolny bought a new Ford F-350 pickup truck. A year later, the truck spontaneously caught re in Dobrovolny’s driveway. e truck was destroyed, but no other property was damaged, and no one was injured. Dobrovolny led a suit in a Nebraska state court against Ford Motor Co. on a theory of strict product liability to recover the cost of the truck. Nebraska limits the application of strict product liability to situations involving personal injuries. Is Dobrovolny’s claim likely to succeed? Why or why not? Is there another basis for liability on which he might recover? Explain. [Dobrovolny v. Ford Motor Co., 281 Neb. 86, 793 N.W.2d 445 (2011)] (See Strict Product Liability.)

ls the expense of a lease over its entire life the same whether it is a finance or an operating lease? Explain.

What kind of account (asset, liability, etc.) is Allowance for Doubtful Accounts, and is its normal balance a debit or a credit?

The peak value of a sine wave is $1\text{ V}$. How much is its average value? rms value? Effective value? Peak-to-peak value?

On December 31, 20X2, the accounting records of XYZ Corporation show the following unit sales for 20X2.

$$\begin{array}{llll}\text { 1st quarter } & 41,200 \text { units } & \text { 3rd quarter } & 45,800 \text { units } \\ \text { 2nd quarter } & 43,000 \text { units } & \text { 4th quarter } & 70,000 \text { units }\end{array}$$

The following are additional actual amounts for the 4th quarter of 20X2.

$$\begin{array}{lr}\text { Sales }(70,000 \text { units } @ \$ 5.20) & \$ 364,000 \\ \text { Purchases ( } 58,800 \text { units @ } \$ 2.80) & \$ 164,640 \\ \text { Ending inventory } & 24,700 \text { units }\end{array}$$

Management has established a unit sales goal of 240,000 units for 20X3 and 50,000 units for the first quarter of 20X4. The sales manager, after reviewing price trends and checking with the company's merchandise suppliers, projects that the unit cost of merchandise will stay at the 20X2 price, $2.80 per unit, through 20X3. Because of stable costs, the company will be able to keep its unit sales price at$5.20 through 20X3.

After considering the time required to reorder merchandise, the sales manager requests that 50.0% of each quarter's unit sales be available in the prior quarter's ending inventory.

Expenses are projected as shown below. Except where noted, percentages are based on quarterly projected net sales. For these items, calculate each quarter's amount by multiplying the percentage times that quarter's net sales. Calculate the annual total by adding the four quarterly amounts. When a dollar amount is given, the total amount should be divided equally among the four quarters.

Interest expense for each quarter is projected to be $900.00.

Federal income taxes are calculated using the tax rate table shown in this chapter. Equal quarterly income tax payments are based on the projected annual federal income tax expense.

Additional information is as follows:

a. The balance of cash on hand on January 1, 20X3, is$45,080.00.

b. In each quarter, cash sales are 20.0% and collections of accounts receivable are 25.0% of the projected net sales for the current quarter. Collections from the preceding quarter's net sales are 54.5% of that quarter. Uncollectible accounts expense is 0.5% of net sales.

$$\begin{aligned} &\textbf { Selling Expenses }\\ &\begin{array}{lr} \text { Advertising Expense } & 1.2 \% \\ \text { Delivery Expense } & 0.7 \% \\ \text { Depreciation Expense-Delivery } & \\ \quad \text { Equipment } & \$ 8,400 \\ \text { Depreciation Expense-Store } & \\ \quad \text { Equipment } & \$ 3,600 \\ \text { Miscellaneous Expense-Sales } & 0.2 \% \\ \text { Salary Expense-Sales } & 5.4 \% \\ \text { Supplies Expense-Sales } & 0.8 \% \end{array} \end{aligned}$$

$$\begin{aligned} &\textbf { Administrative Expenses }\\ &\begin{array}{lr} \text { Depreciation Expense-Office Equipment } & \$ 2,880 \\ \text { Insurance Expense } & \$ 7,280 \\ \text { Miscellaneous Expense–Administrative } & \$ 4,800 \\ \text { Payroll Taxes Expense } & 12.0 \% \text { of salaries } \\ \text { Rent Expense } & \$ 13,280 \\ \text { Salary Expense-Administrative } & \$ 52,000 \\ \text { Supplies Expense-Administrative } & \$ 3,600 \\ \text { Uncollectible Accounts Expense } & 0.5 \% \\ \text { Utilities Expense } & 1.5 \% \end{array} \end{aligned}$$

c. In each quarter, cash payments for cash purchases are 10.0% and for accounts payable 50.0% of the purchases for the current quarter. Cash payments for purchases of the preceding quarter are 40.0% of that quarter.

d. In the first quarter, $24,000 will be borrowed on a promissory note and equipment costing$35,000 will be purchased for cash. In each quarter, dividends of $30,000 will be paid in cash. In the fourth quarter, the promissory note plus interest will be paid in cash,$25,920.

Instructions:

Prepare the following budget schedules for the year ended December 31, 20X3. Round percentage amounts to the nearest 0.1%, unit amounts to the nearest 100 units, and dollar amounts to the nearest $10.

Prepare a cash budget.

At the moment two waves overlap with complete destructive interference (Figure 11.5b), the wave amplitude is zero. Where did the energy of the two waves go?

Which of the following individuals have unlimited liability based on their ownership interest?

I. general partner
II. sole proprietor
III. stockholder
IV. limited partner

A. II only
B. I and II only
C. II and IV only
D. I, II, and III only
E. I, II, and IV only

What happens to an electromagnetic wave as it passes from space to matter?

A. It changes frequency.

B. It changes wavelength.

C. It slows down.

D. It speeds up.

The expense function for a certain item is E = 2.95q + 712,000. Express the average cost of producing q items algebraically.

The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 2018, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $145,000 at May 1, 2017, the beginning of the year, and dividends of$40,000 were paid during the year.

$$\begin{array}{l l r} \text{Accounts payable}&{}&{\$~~~25,000}\\ \text{Accounts receivable}&{}&210,000\\ \text{Cash}&{}&146,000\\ \text{Common stock}&{}&35,000\\ \text{Fees earned}&{}&875,000\\ \text{Miscellaneous expense}&{}&15,000\\ \text{Rent expense}&{}&75,000\\ \text{Supplies}&{}&9,000\\ \text{Supplies Expense}&{}&12,000\\ \text{Tax Expense}&{}&10,000\\ \text{Utilities expense}&{}&38,000\\ \text{Wages expense}&{}&525,000\\ \end{array}$$

Instructions

1. Prepare an income statement for the year ended April 30, 2018.
2. Prepare a retained earnings statement for the year ended April 30, 2018.
3. Prepare a balance sheet as of April 30, 2018.
4. What item appears on both the income statement and retained earnings statement?