Boilermaker House Painting Company incurs the following transactions for September.

1. September 3 Paint houses in the current month for $10,500 on account.
2. September 8 Purchase painting equipment for $11,500 cash.
3. September 12 Purchase office supplies on account for $1,600.
4. September 15 Pay employee salaries of $2,300 for the current month.
5. September 19 Purchase advertising to appear in the current month for $1,000 cash.
6. September 22 Pay office rent of $3,500 for the current month.
7. September 26 Receive $5,500 from customers in (1) above.
8. September 30 Receive cash of $4,100 in advance from a customer who plans to have his house painted in the following month.

Required:

a. Prepare journal entries for the above transactions.
b. Post each transaction to T-accounts and calculate the ending balances.

At the beginning of September, the company had the following account balances:

Cash $17,100
Accounts Receivable 800
Supplies 320
Equipment 5,600
Accounts Payable 700

All other accounts had a beginning balance of zero.

c. Prepare a trial balance.
Common Stock 16,000
Retained Earnings 7,120.

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?