Sara Collier, the bookkeeper for Danner, Cheney, and Howe, a political consulting firm

ACC 560 Week 2 Assignment

E1-13 Sara Collier, the bookkeeper for Danner, Cheney, and Howe, a political consulting firm, has recently completed a managerial course at her local college. One of the topics covered in the course was the cost of goods manufactured schedule. Sara wondered if such a schedule could be prepared for her firm. She realized that, as a service-oriented company, it would have no Work-in-Process inventory to consider.

Listed below are the costs her firm incurred for the month ended August 31, 2008.
Supplies used on consulting contracts $ 1,200
Supplies used in the administrative offices 1,500
Depreciation on equipment used for contract work 900
Depreciation used on administrative office equipment 1,050
Salaries of professionals working on contracts 12,600
Salaries of administrative office personnel 7,700
Janitorial services for professional offices 400
Janitorial services for administrative offices 500
Insurance on contract operations 800
Insurance on administrative operations 900
Utilities for contract operations 1,400
Utilities for administrative offices 1,300

a. Prepare a schedule of cost of contract services provided (similar to a cost of goods manufactured schedule) for the month.

Answer to requirement (b) included.

Click here for the solution: Sara Collier, the bookkeeper for Danner, Cheney, and Howe, a political consulting firm

On October 1, Keisha King organized Real Answers, a new consulting firm

On October 1, Keisha King organized Real Answers, a new consulting firm. On October 31, the company’s records show the following items and amounts. Use this information to prepare an October income statement for the business.

Cash . . . . . . . . . . . . . . . . . . $11,500    Cash dividends . . . . . . . . . . . . . . $ 2,000

Accounts receivable . . . . . . . 12,000     Consulting fees earned . . . . . . . . 14,000

Office supplies . . . . . . . . . . . 24,437     Rent expense . . . . . . . . . . . . . . . 2,520

Land . . . . . . . . . . . . . . . . . . . 46,000   Salaries expense . . . . . . . . . . . . . 5,600

Office equipment . . . . . . . . . 18,000     Telephone expense . . . . . . . . . . . 760

Accounts payable . . . . . . . . . 25,037    Miscellaneous expenses . . . . . . . 580

Common stock . . . . . . . . . . . 84,360

Check: Net income, $4,540

Click here for the solution: On October 1, Keisha King organized Real Answers, a new consulting firm