EXERCISE 9–1 Prepare a Flexible Budget LO9–1

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:

Puget Sound Divers Planning Budget for the Month Ended May 31

Budgeted diving-hours (q) : 100

Revenue ($365.00q) : $36,500

Expenses:

Wages and salaries ($8,000 + $125.00q) : 20,500

Supplies ($3.00q) : 300

Equipment rental ($1,800 + $32.00q) : 5,000

Insurance ($3,400) : 3,400

Miscellaneous ($630 + $1.80q) : 810

Total expense : 30,010

Net operating income : $ 6,490

During May, the company’s actual activity was 105 diving-hours.

Required: show all the work process

Using Exhibit 9–5 as your guide, prepare a flexible budget for May.

Common problems that can arise among groups. explain in four or five sentences what can cause the specific or general problem. in addition, explain what impact that conflict can have on group cohesion as well as productivity.

Which of the following statements is correct? a) due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporationsb) most businesses (by number and total dollar sales) are organized as proprietorships or corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, primarily because corporations have important tax advantages over proprietorships and partnerships.c) due to legal considerations related to ownership transfers and limited liability, which affect the ability to attract capital, most business (measured by dollar sales) is conducted by corporations in spite of large corporations' less favorable tax treatmentd) large corporations are taxed more favorably than proprietorshipse) corporate stockholders are exposed to unlimited liability

As related to a company completing the purchase to pay process, is there an accounting journal entry "behind the scenes" when xyz company pays for the goods within 10 days of the invoice (gross method is used for discounts and terms are 2/10 net 30) that updates the general ledger?