ACCT-2020 Lecture Notes - Lecture 2: Fixed Cost

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2 Aug 2018

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Audio recording started: 11:21 am monday, february 12, 2018. Make sure you know the difference between sales and produced. Absorption costing - a costing method that includes all manufacturing costs direct materials, direct labor, and both variable and fixed manufacturing overhead in unit product costs. (p. 171) Common fixed cost - a fixed cost that supports more than one business segment, but is not traceable in whole or in part to any one of the business segments. (p. 181) Segment - any part or activity of an organization about which managers seek cost, revenue, or profit data. (p. 171) Segment margin - a segment"s contribution margin less its traceable fixed costs. It represents the margin available after a segment has covered all of its own traceable costs. (p. 181) Traceable fixed cost - a fixed cost that is incurred because of the existence of a particular business segment and that would be eliminated if the segment were eliminated. (p. 181)

Related Questions

In 2018, Poeâs Products completed the treasury stocktransactions described below.

January 2: Reacquired 12 million shares at $18 per share.

February 15: Sold 4 million shares at $25 per share.

September 20: Sold 4 million treasury shares at $20 pershare.

Poeâs Products had issued 60 million shares of its $1 par commonstock for $20 several years ago.

Prepare any necessary journal entries to record theabove transactions. Show all computations.

I am not sure what account to use. Is it Paid-in capital -share repurchase account or Paid-in capital excess of paraccount???

coffeebee754

Karen Noonan opened Marin Inc. on February 1, 2017. DuringFebruary, the following transactions were completed:

Feb. 1		Issued 4,200 shares of Marin common stock for $12,480. Eachshare has a $1.50 par.
1		Borrowed $7,200 on a 2-year, 6% note payable.
1		Paid $8,660 to purchase used floor and window cleaningequipment from a company going out of business ($4,440 was for thefloor equipment and $4,220 for the window equipment).
1		Paid $210 for February Internet and phone services.
3		Purchased cleaning supplies for $940 on account.
4		Hired 4 employees. Each will be paid $460 per 5-day work week(Mondayâ Friday). Employees will begin working Monday, February9.
5		Obtained insurance coverage for $11,040 per year. Coverage runsfrom February 1, 2017, through January 31, 2018. Karen paid $2,760cash for the first quarter of coverage.
5		Discussions with the insurance agent indicated that providingoutside window cleaning services would cost too much to insure.Karen sold the window cleaning equipment for $3,790 cash.
16		Billed customers $3,900 for cleaning services performed throughFebruary 13, 2017.
17		Received $504 from a customer for 4 weeks of cleaning servicesto begin February 21, 2017.
18		Paid $290 on amount owed on cleaning supplies.
20		Paid $3 per share to buy 300 shares of Marin common stock froma shareholder who disagreed with management goals. The shares willbe held as treasury shares.
23		Billed customers $4,130 for cleaning services performed throughFebruary 20.
24		Paid cash for employeesâ wages for 2 weeks (February 9â13 and16â20).
25		Collected $2,400 cash from customers billed on February16.
27		Paid $210 for Internet and phone services for March.
28		Declared and paid a cash dividend of $0.20 per share.

Journalize the February transactions. (Creditaccount titles are automatically indented when amount is entered.Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter 0 for the amounts. Record journalentries in the order presented in the problem.)

copperclam595

The transactions completed by PS Music during June 2018 weredescribed at the end of Chapter 1. The following transactions werecompleted during July, the second month of the businessâsoperations: Jul. 1 Peyton Smith made an additional investment in PSMusic in exchange for common stock by depositing $5,000 in PSMusicâs checking account. 1 Instead of continuing to share officespace with a local real estate agency, Peyton decided to rentoffice space near a local music store. Paid rent for July, $1,750.1 Paid a premium of $2,700 for a comprehensive insurance policycovering liability, theft, and fire. The policy covers a one-yearperiod. 2 Received $1,000 on account. 3 On behalf of PS Music,Peyton signed a contract with a local radio station, KXMD, toprovide guest spots for the next three months. The contractrequires PS Music to provide a guest disc jockey for 80 hours permonth for a monthly fee of $3,600. Any additional hours beyond 80will be billed to KXMD at $40 per hour. In accordance with thecontract, Peyton received $7,200 from KXMD as an advance paymentfor the first two months. 3 Paid $250 on account. 4 Paid anattorney $900 for reviewing the July 3 contract with KXMD. (Recordas Miscellaneous Expense.) 5 Purchased office equipment on accountfrom Office Mart, $7,500. 8 Paid for a newspaper advertisement,$200. 11 Received $1,000 for serving as a disc jockey for a party.13 Paid $700 to a local audio electronics store for rental ofdigital recording equipment. 14 Paid wages of $1,200 toreceptionist and part-time assistant. Enter the followingtransactions on Page 2 of the two-column journal: Jul. 16 Received$2,000 for serving as a disc jockey for a wedding reception. 18Purchased supplies on account, $850. 21 Paid $620 to Upload Musicfor use of its current music demos in making various music sets. 22Paid $800 to a local radio station to advertise the services of PSMusic twice daily for the remainder of July. 23 Served as discjockey for a party for $2,500. Received $750, with the remainderdue August 4, 2018. 27 Paid electric bill, $915. 28 Paid wages of$1,200 to receptionist and part-time assistant. 29 Paidmiscellaneous expenses, $540. 30 Served as a disc jockey for acharity ball for $1,500. Received $500, with the remainder due onAugust 9, 2018. 31 Received $3,000 for serving as a disc jockey fora party. 31 Paid $1,400 royalties (music expense) to National MusicClearing for use of various artistsâ music during July. 31 Paiddividends, $1,250. PS Musicâs chart of accounts and the balance ofaccounts as of July 1, 2018 (all normal balances), are as follows:11 Cash $3,920 12 Accounts Receivable 1,000 14 Supplies 170 15Prepaid Insurance â 17 Office Equipment â 21 Accounts Payable 25023 Unearned Revenue â 31 Common Stock 4,000 33 Dividends 500 41Fees Earned 6,200 50 Wages Expense 400 51 Office Rent Expense 80052 Equipment Rent Expense 675 53 Utilities Expense 300 54 MusicExpense 1,590 55 Advertising Expense 500 56 Supplies Expense 180 59Miscellaneous Expense 415 Required: 1. Enter the July 1, 2018,account balances in the appropriate balance column of a four-columnaccount. No entry is needed for accounts with a zero balance. WriteBalance in the Item column, and select a check mark in the PostingReference column. (Note: Verify the equality of the debit andcredit balances in the ledger before proceeding with the nextinstruction.) 2. Analyze and journalize each transaction in atwo-column journal beginning on Page 1, omitting journal entryexplanations. Refer to the Chart of Accounts for exact wording ofaccount titles. 3. Post the journal to the ledger, extending theaccount balance to the appropriate balance column after eachposting. Indicate a zero balance by inserting a 0 (zero) in eitherof the Balance columns opposite the entry. 4. Prepare an unadjustedtrial balance as of July 31, 2018. none of the previous answershave the entire answers

coffeehare786

ACCT-2020 Lecture Notes - Lecture 2: Fixed Cost

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