CNOW

Segment Revenue Horizontal Analysis

Starship Corporation reported the following geographical segment revenues for a recent and a prior fiscal year:

	Recent Year	Prior Year
United States	$9,116		$7,111
Other countries	1,718		1,493
Total revenues	$10,834		$8,604

a.  Prepare a horizontal analysis of the segment data using the prior year as the base year. Round all percents to one decimal place. Starship Corporation Horizontal Analysis Recent Year Prior Year Increase (Decrease) Amount Increase (Decrease) Percent United States $ 9,116 $ 7,111 $ % Other countries 1,718 1,493 % Total revenues $ 10,834 $ 8,604 $ %

b.  Prepare a vertical analysis of the segment data. Round all percents to one decimal place. Starship Corporation Vertical Analysis Recent Year Amount Recent Year Percent Prior Year Amount Prior Year Percent United States $ 9,116 % $ 7,111 % Other countries 1,718 % 1,493 % Total revenues $ 10,834 % $ 8,604 %

Segment Revenue Vertical Analysis

Newton Corporation is one of the world's largest entertainment companies that includes Gravity films, Apple Broadcasting, Gravity News, the GR, and various satellite, cable, and publishing properties. The company provided revenue disclosures by its major product segments in the notes to its financial statements as follows:

a.  Using the revenue disclosures by major product segment listed below, provide a vertical analysis of the product segment revenues. Round all percents to one decimal place.

Major Product Segments	For a Recent Year (in millions)	Percent (%)
Filmed Entertainment	$17,954		%
Television	11,291		%
Cable Network Programming	8,083		%
Direct Broadcast Satellite Television	5,985		%
Magazines and Inserts	1,296		%
Newspapers	10,304		%
Book Publishing	3,579		%
Other	3,208		%
Total revenues	$ 61,700		%

Revenue Journal; Accounts Receivable Subsidiary and General Ledgers

Newton Learning Centers was established on May 20, 2014, to provide educational services. The services provided during the remainder of the month are as follows:

May 21.	Issued Invoice No. 1 to J. Dunlop for $135 on account.
May 22.	Issued Invoice No. 2 to K. Todd for $570 on account.
May 24.	Issued Invoice No. 3 to T. Patrick for $125 on account.
May 25.	Provided educational services, $225, to K. Todd in exchange for educational supplies.
May 27.	Issued Invoice No. 4 to F. Mintz for $335 on account.
May 28.	Issued Invoice No. 5 to D. Chase for $300 on account.
May 30.	Issued Invoice No. 6 to K. Todd for $235 on account.
May 31.	Issued Invoice No. 7 to T. Patrick for $155 on account.

Required:

1a.  Journalize the transactions (in chronological order) for May, using a single-column revenue journal. If an amount box does not require an entry, leave it blank.

1b.  Journalize (including the date) and post the appropriate transaction for May, in the two-column general journal. If an amount box does not require an entry, leave it blank. Posting references will be recorded in part 2

1c.  Post to the following customer accounts in the accounts receivable ledger, and insert the balance immediately after recording each entry: D. Chase; J. Dunlop; F. Mintz; T. Patrick; K. Todd.

For those boxes in which no entry is required, leave the box blank.

2.  Post the revenue journal and the general journal to the following accounts in the general ledger, inserting the account balances only after the last postings:

For those boxes in which no entry is required, leave the box blank.

3a.  What is the sum of the balances of the customer accounts in the subsidiary ledger at May 31? $

3b.  What is the balance of the accounts receivable controlling account at May 31? $

Revenue Journal and Cash Receipts Journals; Accounts Receivable subsidiary and General Ledgers

Transactions related to revenue and cash receipts completed by Aspen Architects Co. during the period June 2–30, 2014, are as follows:

June 2.		Issued Invoice No. 793 to Nickle Co., $4,900.
June 5.		Received cash from Mendez Co. for the balance owed on its account.
June 6.		Issued Invoice No. 794 to Preston Co., $1,760.
June 13.		Issued Invoice No. 795 to Shilo Co., $2,630.
		Post revenue and collections to the accounts receivable subsidiary ledger.
June 15.		Received cash from Preston Co. for the balance owed on June 1.
June 16.		Issued Invoice No. 796 to Preston Co., $5,490. Post revenue and collections to the accounts receivable subsidiary ledger.
June 19.		Received cash from Nickle Co. for the balance due on invoice of June 2.
June 20.		Received cash from Preston Co. for invoice of June 6.
June 22.		Issued Invoice No. 797 to Mendez Co., $7,230.
June 25.		Received $2,000 note receivable in partial settlement of the balance due on the Shilo Co. account.
June 30.		Recorded cash fees earned, $12,340. Post revenue and collections to the accounts receivable subsidiary ledger.

Required:

1.  Insert the following balances in the general ledger as of June 1:

11	Cash	$11,480
12	Accounts Receivable	13,990
14	Notes Receivable	6,080
41	Fees Earned	-

After completing the recording of the transactions in the journals in part 3, total each of the columns of the special journals, and post the individual entries and totals to the general ledger. Insert account balances after the last posting. When posting to the general ledger, post in chronological order. However, if there is more than one entry on the same date, be sure to post transactions from the revenue journal before posting transactions from the cash receipts journal.

If an amount box does not require an entry, leave it blank.

2. Insert the following balances in the accounts receivable subsidiary ledger as of June 1:

Mendez Co.	$8,040
Nickle Co.	-
Preston Co.	5,950
Shilo Co.	-

After completing the recording of the transactions in the journals in part 3, post to the accounts receivable subsidiary ledger in chronological order, and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer's account before recording a cash receipt. If an amount box does not require an entry, leave it blank.

3.  Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees.

4.  Using the two special journals and the two-column general journal (p. 1), journalize the transactions in chronological order for June. Post to the accounts receivable subsidiary ledger (in part 2), and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer's account before recording a cash receipt.

5.  Total each of the columns of the special journals, and post the individual entries and totals to the general ledger (in part 1). Insert account balances after the last posting.

If an amount box does not require an entry, leave it blank.

Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger

English Garden Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by English Garden Landscaping during January 2014 are as follows:

Jan. 2.		Purchased office supplies on account from Meade Co., $3,660.
5.		Purchased office equipment on account from Peach Computers Co., $5,260.
9.		Purchased office supplies on account from Executive Office Supply Co., $380.
13.		Purchased field supplies on account from Yamura Co., $4,160.
14.		Purchased field supplies on account from Naples Co., $550.
17.		Purchased field supplies on account from Yamura Co., $9,910.
24.		Purchased field supplies on account from Naples Co., $2,790.
29.		Purchased office supplies on account from Executive Office Supply Co., $250.
31.		Purchased field supplies on account from Naples Co., $3,660.

Note: Posting references have been provided.

Required:

1.  Insert the following balances in the general ledger as of January 1:

14	Field Supplies	$7,460
15	Office Supplies	1,710
18	Office Equipment	25,140
21	Accounts Payable	6,400

After completing the recording of transactions in part 3, post the purchases journal to the accounts in the general ledger. If an amount box does not require an entry, leave it blank.

2.  Insert the following balances in the accounts payable subsidiary ledger as of January 1:

Executive Office Supply Co.	$2,110
Meade Co.	4,290
Naples Co.	-
Peach Computers Co.	-
Yamura Co.	-

After completing the recording of transactions in part 3, post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry. If an amount box does not require an entry, leave it blank.

3.  Journalize the transactions for January (in chronological order), using the purchases journal below (p. 30) similar to the one illustrated in this chapter. Post to the creditor accounts in the accounts payable subsidiary ledger (in part 2) immediately after each entry.

4.  Post the purchases journal to the accounts in the general ledger (in part 1). If an amount box does not require an entry, leave it blank.

If no other account is needed in the "Other Accounts Dr." column select "No entry required".