# Generally Accepted Accounting Principles and Balance Sheet

Good Essays
19531 Words
Grammar
Plagiarism
Writing
Score
Generally Accepted Accounting Principles and Balance Sheet
EXERCISES AND PROBLEMS ch 1
Carry Yoki’s Lounge consists of the following. Carry, the owner believed that people would come to hear a band play on Friday, Saturday, and Sunday evening. During the remainder of the week, she believed her customers would watch sporting events on several television sets located throughout the lounge. Carry employed two bartenders, three servers, two assistant servers, two cooks, one dishwasher and a clean-up person. She had a bar, 15 barstools, 4 tables, 40 chairs, 4 television sets, and one satellite dish. She had an oven, stove, grill, refrigerator, sinks, dishes, and glassware. Carry started this business with \$50,000 of her own money, and she borrowed \$150,000 from the bank. From this description, list each of the scarce resources that are used in Carry Yoki’s Lounge.
Entrepreneurial resource: Carry Yoki.
Labor resources: 2 bartenders, 3 servers, 2 assistant servers, 2 cooks, 1 dishwasher, and a clean-up person.
Economic capital resources: 1 bar, 15 bar stools, 4 tables, 40 chairs, 4 television sets, one satellite dish, oven, stove, grill, refrigerator, sinks, dishes, and glassware.
Financial capital resources: \$50,000 of her own money and \$150,000 from the bank.
Joe Fixit has an appliance repair business. He has more business than he can handle and wants to hire another repair person. Joe estimates that three appliances can be repaired each hour by a qualified person. Joe bills out labor at \$45 per hour, but he stipulates that the minimum charge for appliance repair estimates is \$30 plus parts. What is the marginal revenue product of a qualified repair person? 3 appliance repairs per hour times \$30 = \$90 marginal revenue product.
What is the maximum hourly wage that he would pay an employee?
Therefore, since we bring in an additional \$90 per hour by hiring one more repair person, the maximum wage we would pay is \$90.
Sam Smith is currently employed as a mechanical engineer and is paid \$65,000 per

## You May Also Find These Documents Helpful

• Good Essays

15 seasonal workers. Seasonal workers could work only between the dates of August 15 and…

• 3588 Words
• 15 Pages
Good Essays
• Good Essays

A profit-maximizing firm's daily total revenue is \$155 with 3 workers, \$200 with 4 workers, and \$250 with 5 workers. The marginal cost of each worker is \$60 per day. The firm should:…

• 1998 Words
• 8 Pages
Good Essays
• Good Essays

1.) VARIABLE EXPENSES - Power - Operations (hourly personnel) FIXED EXPENSES - Rent - Custodial services - Computer leases - Maintenance - Depreciation - Operations (salaried staff) - Systems development and maintenance - Administration - Sales - Sales promotion - Corporate services 2.) VARIABLE EXPENSES: COST/HOUR JAN. FEB. MAR.…

• 454 Words
• 4 Pages
Good Essays
• Good Essays

The marginal revenue is the change in total revenue resulting from selling one more unit of output. If marginal revenue is greater than marginal cost then total revenue would be increased. If marginal cost is greater than marginal revenue, it would then decrease. Furthermore, if both marginal revenue and marginal cost are equal, it would remain constant. In this given scenario, we can calculate the…

• 694 Words
• 3 Pages
Good Essays
• Good Essays

Consider the situation shown in the table and Figure 10.2 (above). The Marginal Revenue Product (MRP) of the 4th worker is \$__________ . 2…

• 351 Words
• 2 Pages
Good Essays
• Better Essays

The number of employees that we began with was 13 employees, which included a dining room manager, servers, hostess, cashier, chefs, and a bus boy. Several employees are needed to make sure that each customer is attended to properly so as not to wait for drinks, refills, and their food (M.S. Segars, personal communication, July 6, 2015).…

• 1090 Words
• 4 Pages
Better Essays
• Satisfactory Essays

What is the Marginal Product (additional meals served) per dollar spent (wages) for cooks? What is the Marginal Product per dollar spent for waiters? Which is more productive per dollar spent?…

• 1669 Words
• 7 Pages
Satisfactory Essays
• Satisfactory Essays

1. Question : Student Answer: (TCO C) The cost of an intangible asset includes all of the following except purchase price. legal fees. other incidental expenses.…

• 2553 Words
• 11 Pages
Satisfactory Essays
• Satisfactory Essays

The following information is available for Remmers corporation for 2010. a. Depreciation reported on the tax return exceeded depreciation reported on the income statement by 120,000. This difference will reverse in equal amounts of 30,000 over the years 2011-2014. B. Interest received on municipal bonds was 10,000. C. Rent collected in advance on Jan 1 2010 totaled 60,000 for a 3 year period. Of this amount 40,000 was reported as unearned at Dec 31 for book purposes. D. The tax rates are 40% for 2010 and 35% for 2011 and subsequent years. E. Income taxes of 320,000 are due per the tax return for 2010. F. No deferred taxes existed at the beginning of 2010. 1. Compute taxable income for 2010 2. Compute pretax financial income for 2010 3. Prepare the journal entries to record income tax expense deferred income taxes and income taxes payable for 2010 and 2011. Assume taxable income was 980,000 in 2011. \$. Prepare the income tax expense section of the income statement for 2010 beginning with "income before income taxes."…

• 338 Words
• 2 Pages
Satisfactory Essays
• Satisfactory Essays

1. DTE is wrong 2. Capex 3. Defrev 4. Contributed capital 5.…

• 536 Words
• 7 Pages
Satisfactory Essays
• Satisfactory Essays

Best Buy lower than average NOPM reveals that the company earns less profit after operating expenses and taxes for each dollar of sales than its competitors.…

• 576 Words
• 3 Pages
Satisfactory Essays
• Good Essays

Health care organizations financial statements are the key tools to show the economic stability of an organization and guide leadership in making informed decisions. The Generally Accepted Accounting Principles (GAAP) is basic assumptions, and principles of accounting to determine the financial position of an organization. These principles offer consistency across health care organizations, and businesses maintaining track of the organizations fiscal returns, detailed balance, and outstanding debt. Generally Accepted Accounting Principles help guide health care organizations through the economic framework of accounting (Finkler & Ward, 2006). Over the next several pages I plan to discuss the accounting principles that apply to most financial statements in health care.…

• 732 Words
• 3 Pages
Good Essays
• Good Essays

Briefly describe your computation of planning materiality including the factors you considered in your estimate.…

• 1014 Words
• 5 Pages
Good Essays
• Better Essays

Federal Trade Commission. (2009, February). CVS Caremark Settles FTC Charges:Failed to Protect Medical and Financial Privacy of Customers and Employees. Retrieved from http://www.ftc.gov…

• 1118 Words
• 5 Pages
Better Essays
• Powerful Essays

1. According to the cost allocation methods used in the company's accounting system that are described in the Production Cost Report, if a company employs 100 PATs at a total labor cost of \$15,000,000 (including wages, fringes, incentives, overtime, training, and severance expenses), assembles and ships 800,000 entry-level cameras and 200,000 multi-featured cameras over the course of a year, has revenues of \$100 million from sales of entry level cameras, and revenues of \$150 million from the sale of multi-featured cameras, then the total annual labor costs allocated to the assembly and shipment of multi-featured cameras and the labor costs per multi-featured camera assembled and shipped, respectively, will be…

• 2004 Words
• 18 Pages
Powerful Essays