Reference no: EM132802015
Questions -
Q1. A company sells two thousand $20 gift card to customer and manager needs your help to record the journal entry. He doesn't know what the name should be used. (Select from Earned Revenue Gift Cards, Revenue Gift Cards, Deferred Revenue Gift Cards or Deferred Payable Gift Cards.)
At the end of the year, the company found out 800 gift cards wre used fully in this store to purchase his product.
Q2. The Company is using lockbox system. The manager found out the cost for this lockbox as followed. The bank charges $0.25 per item for lockbox service. The manager wants to invest cash with the bank at an annual interest rate of 9%. He has estimated that using lockbox would speed up collection by 5 days.
What is the effective interest rate? keep 8 decimals.
What is the breakeven amount at which there is indifferent as customer sent cheque directly to the manager or use lockbox? Round to 2 decimal.
Q3. A banl has lend a $100,000 loan to a company for nine month with annual interest rate is 8%. The compensating balance requirement is 15%. The loan principal and interest must paid in 9 months.
What will be the interest cost of this loan?
What will be the total loan payment at the end of loan term? Round to 2 decimal
Assuming the chequing account balance would be zero without the loan, what is the effective interest rate of this loan? Round to 2 decimal.
What is the effective interest rate if the chequing account of $4000 through out the loan period without the loan? Round to 2 decimal.
Q4. The hotel has hotel and restaurant operations. The hotel operation contributed 60% of the total revenue with its variable cost of 30%. The restaurant operation provides 40% of the total revenue with its variable cost of 60%. The rent cost for hotel and restaurant together is $400,000.(Round to 2 decimal)
What is the CMR of the hotel operations?
What is the CMR for restaurant operation?
What is the weighted average CMR for the hotel?
What is the breakeven point?
Q5. Tom projected 5,000 meals to be sold for September at the average price of $10. The actual sale were 5100 meals for revenue of $48,450.
What is the budget variance?
What is the volume variance?
What is the price variance?