Gustav, an entry-level employee, feels his manager holds him to a much higher standard than others in the department. He sees Gl

Answer: $1,651

Explanation:

The sole cost associated with Internal failure is the expense for fixing the dog beds prior to sale, totaling $1,651.

The remaining costs fall into the following categories:

1. Repairs for dog beds under warranty - External failure cost Seamstress training. -
2. Prevention cost Wages of part-time inspector of products - Appraisal cost
3. The cost of replacements provided to customers for defective dog beds - External failure cost
4. Product liability insurance - External failure cost
5. Inspection of sewing machines during routine maintenance - Appraisal cost Inspection of fabric and thread for defects -
6. Appraisal cost

Answer:

Simmons Consulting Co

General Journal

Oct 1

Rent Expense $4,800 (debit)

Cash $4,800 (credit)

Paid Rent Expense

Oct 3

Advertising expense $2,500 (debit)

Cash $2,500 (credit)

Paid Advertising Expense

Oct 5

Supplies  $1,390 (debit)

Cash $1,390 (credit)

Paid for Supplies

Oct 6

Office equipment $10,670 (debit)

Office Equipment Accounts Payable $10,670 (credit)

Purchased Office Equipment on credit

Oct 10

Accounts Receivable $19,730 (debit)

Cash $19,730 (credit)

Received payment from accounts

Oct 15

Cash $59,480 (debit)

Accounts Payable $59,480 (credit)

Made payment to Accounts Payable

Oct 27

Miscellaneous Expenses $530 (debit)

Cash $530 (credit)

Paid for Miscellaneous Expenses

Oct 30

Utilities expense $220 (debit)

Cash $220 (credit)

Paid for telephone bill

Oct 31

Cash $538,620 (debit)

Fees Earned $538,620 (credit)

Cash received for Fees Earned

Oct 31

Utilities expense $1,540 (debit)

Cash $1,540 (credit)

Paid for electricity bill

Oct 31

Drawings $56,700 (debit)

Cash $56,700(credit)

Cash drawings by owner

Explanation:

I have prepared the journals and their explanations, see above.

Response:

(A)0.6600 (B) 1.325 (C) 0.997 or 1 minute

Clarification:

Resolution

It's provided that:

The fixed production time = 30 seconds

The customer arrival time determined by the Poisson distribution is = 45 seconds

Now,

(A) We calculate the typical line length of vehicles

The formula is as follows:

Lq = λ²/ 2μ ( μ -λ)

In this equation,

λ = signifies the average arrival rate

μ = denotes the average service rate

We first determine the average arrival rate as shown below:

The average arrival rate λ = arrival rate/ 60 seconds

= 60/45

= 1.33 customers per minute

Next, we find the average service rate which is detailed below

The average service rate μ = 60 seconds/ average rate

= 60/30 = 2 customers per minute

Now we will calculate the average line length in vehicles as shown here:

Lq = λ²/ 2μ ( μ -λ)

Lq = 1.33²/2*2 (2-1.33)

Lq = 1.7689/4 (0.67)

Lq = 1.7689/2.68

Lq = 0.6600

Thus, the average line length for vehicles is 0.6600 cars

(B) We calculate the average number of vehicles in the entire system

Ls = Lq + λ /μ

Ls = 0.600 + 1.33/2

Ls = 0.6600 + 0.665

Ls = 1.325

(C) Lastly, we need to ascertain the expected average duration in the system outlined here:

Ws = Ls/λ

Ws= 1.325/1.33 = 0.997 or 1.00

The predicted average duration in the system is 0.997 or 1.00 minutes.

Answer:

Schrand Aerobics, Inc.

a. Journal Entries:

Debit Accounts Payable $600

Credit Cash $600

To document the cash payment.

Debit Rent $3,600

Credit Cash $3,600

To document the cash payment.

Debit Accounts Receivable $11,500

Credit Service Revenue $11,500

To record the client billing.

Debit Advertising $500

Credit Accounts Payable $500

To document promotional expenses.

Debit Cash $10,000

Credit Accounts Receivable $10,000

To register the cash received.

Debit Wages $2,400

Credit Cash $2,400

To register the cash paid.

Debit Utilities $680

Credit Accounts Payable $680

To document utility costs.

Debit Interest $20

Credit Cash $20

To register interest payment on notes payable.

Debit Retained Earnings $900

Credit Cash $900

To document dividend payment.

Debit Equipment $4,000

Credit Cash $4,000

To document cash used for purchasing sound equipment.

b. T-Accounts:

Cash

Description                 Debit       Credit         Balance

Balance                                                        $5,000

Accounts payable                        $600        4,400

Rent                                              3,600           800

Accounts receivable 10,000                        10,800

Wages                                          2,400        8,400

Interest                                              20        8,380

Dividend                                         900         7,480

Equipment                                  4,000         3,480

Accounts Receivable

Description           Debit       Credit         Balance

Balance                                                  $5,200

Service Revenue 11,500                         16,700

Cash                                      10,000       6,700

                       Equipment

Description           Debit       Credit         Balance

Cash                  $4,000                           $4,000

                            Notes Payable

Description           Debit       Credit       Balance

Balance                                                  $2,500      

                     Accounts Payable

Description           Debit       Credit       Balance

Balance                                                  $1,000

Cash                   $600                               400

Advertising                           $500            900

Utilities                                    680          1,580

                     Common Stock

Description        Debit       Credit       Balance

Balance                                                $5,500

                     Retained Earnings

Description       Debit       Credit        Balance

Balance                                                $1,200

Dividends        $900                                300

                      Services Revenue

Description           Debit       Credit       Balance

Accounts receivable           $11,500      $11,500

                      Rent Expense

Description           Debit       Credit       Balance

Cash                   $3,600                        $3,600

                      Advertising Expense

Description           Debit       Credit        Balance

Accounts payable $500                           $500

                      Wages Expense

Description          Debit       Credit         Balance

Cash                 $2,400                           $2,400

                      Utilities Expense

Description           Debit       Credit         Balance

Utilities payable   $680                           $680

                      Interest Expense

Description           Debit       Credit         Balance

Cash                      $20                              $20

Explanation:

Journal entries provide the initial record of transactions using debits and credits to the relevant accounts.

T-accounts serve as general ledger accounts that summarize transactions and compute the balance for each account.