Accounting question and answers for July 02, 2023
- Q McGee Company issued $400,000 of 8%, 10-year bonds on January 1,2017. Interest is payable semiannually on July 1 and January 1.Mcgee Company uses the effective interest method of amortizationfor bond...
- Q Required:Banks, credit card companies, and other lenders, state interestrates that are compounded with a frequency not equal to annual,e.g. compounded monthly, etc... There are 'historical' reasons forquoting rates in such...
- Q The MBA DecisionBen Bates graduated from college six years ago with a financeundergraduate degree. Although he is satisfied with his currentjob, his goal is to become an investment banker. He...
- Q The Stevenson family tells you the following regarding theirfinancial situation for 2017: Their salary is$99,000. They paid real estate taxes of $6,000 andinterest on their mortgage of $8,000. They earnedinterest from $1,000 from...
- Q Demarco and Janine Jackson have been married for 20 years andhave four children who qualify as their dependents (Damarcus,Janine, Michael, and Candice). The couple received salary income of$187,000, qualified business...
- Q 1. On January 1, Year 1, Blaze Mining Enterprises purchases anexisting coal mine. Blaze expects to operate the min for fouryears, after which it is legally required to dismantle the...
- Q Problem 1: A company is going public at $16 and will use theticker XYZ. The underwriters will charge a 7 percent spread. Thecompany is issuing 20 million shares, and insiders...
- Q You are auditing a bank, and someone provides you with ananonymous tip that an employee is embezzling money from the bank.You decide to investigate the allegation. Your interviews withother bank...
- Q Each year, Florida's Best Salad Dressing, Inc. (FBSD) purchases50,000 gallons of extra virgin olive oil. Ordering costs are $80.00per order, and the carrying cost, as a percentage of inventoryvalue is...
- Q Splish Splash Arts offers music and dance lessons. Splish Splashprepares annual financial statements and has a December 31, 2017,year-end.a) On september 1, collects 15,000 cash for dance lessonsrunning from September...
- Q Drake Corporation is reviewing an investment proposal. Theinitial cost and estimates of the book value of the investment atthe end of each year, the net cash flows for each year,...
- Q Just Dew It Corporation reportsthe following balance sheet information for 2008 and 2009.JUST DEW IT CORPORATION2008 and 2009 Balance SheetsAssetsLiabilities and Owners' Equity2008200920082009 Current assets Currentliabilities Cash$ 10,450 $10,000 Accountspayable$ 70,750 $ 63,000 Accountsreceivable27,800 28,750 Notespayable49,500 48,000 Inventory63,200 63,100 Total$ 120,250 $...
- Q Jordan and Taylor are beginning to understand break-evenanalysis.Selling price to Yumminess at $10 per tin. The cost is $8 pertin, which includes $6 of direct material and $1.50 of directlabor....
- Q The following account balances were taken from the adjustedtrial balance for Laser Messenger Service, a delivery service firm,for the fiscal year ended April 30, 2016:Depreciation Expense$8,600Fees Earned664,000Insurance Expense1,700Miscellaneous Expense3,750Rent Expense59,000Salaries...
- Q Huang Company operates with a single product. The followingsimple income statement relates to last year when sales unitstotaled26,500 VariableCosting GAAP Absorption Costing Total $ Per unit$ Total $Sales 530,000 20.00 Sales xVariableCOGS 185,500 7.00 COGS xVariable S&Aexpense 92,750 3.50 Grossmargin xContributionmargin 251,7509.50 S&Aexpenses xFixed Man Ovrhd expenses 121,500 Net operating income xFixed...
- Q Pureform, Inc., uses the weighted-average method in its processcosting system. It manufactures a product that passes through twodepartments. Data for a recent month for the first departmentfollow:UnitsMaterialsLaborOverheadWork in processinventory, beginning5,000$4,320$1,040$1,790Units...
- Q The income statement, balance sheets, and additional informationfor Great Adventures, Inc., are provided below.GREAT ADVENTURES, INC.Income StatementFor the year ended December 31, 2022Net revenues:$174,820Expenses:Cost of goods sold$39,000Operating expenses57,500Depreciation expense18,000Interest expense8,032Income...
- Q Cranberry Corporation has $3,444,000 of current year taxableincome. Use Corporate tax rate schedule.If the current year is a calendar year ending on December 31,2017, calculate Cranberry's regular income tax liability.If...
- Q Explain the purpose of Activity-BasedCosting(ABC).
- Q Why does the law provide for an implied warranty ofmerchantability? What might happen if such an implied warranty didnot exist?
- Q CostRetailBeginning inventory 347,900 784,000Purchases 730,100 980,000Freight in 39,200 - Mark ups - 98,000Mark downs - 116,375Sales - 686,000Find Ending Inventory usingavg. cost, conventional, LIFO methods
- Q The measurement of assets and liabilities on the balance sheetwas previously a secondary goal to income determination. As aresult, various measurement techniques arose to disclose assets andliabilities. Required: Discuss the...
- Q ItemSkippedeBookPrintReferencesCheck my workCheck My Work button is now enabled3Item 1Item 1 Part 1 of 3 10 points Item SkippedRequired information[The following information applies to the questionsdisplayed below.]Tony and Suzie see...
- Q Summarize pretax salary reductions.Discuss how these items affect your withheld income tax and taxexpense paid by employers.If you have not considered the pretax salary reductions, wouldyou consider it for the...
- Q How do the tradeoffs, things that Trader Joe’s does not do,threaten or advance its competitive advantage? Consider the valuechain and its integrated parts as you answer the question.
- Q Define an Accrued expense in your own words and giveTWO examples OR journal entries of an Accrued expense.
- Q Problem 5-35 (LO 5-1, 5-2, 5-3, 5-4, 5-5, 5-6, 5-7)The individual financial statements for Gibson Company andKeller Company for the year ending December 31, 2018, follow.Gibson acquired a 60 percent...
- Q The term "personality preference" typically refers to the basiccomponents of personality and not to the overall structure ofpersonality.TrueFalseGoal commitment is influenced by expected rewards, receiverewards, teamwork, and peer presures. But,...
- Q Drake Corporation is reviewing an investment proposal. The initialcost and estimates of the book value of the investment at the endof each year, the net cash flows for each year,...
- Q Tony’s favorite memories of his childhood were the times hespent with his dad at camp. Tony was daydreaming of those days abit as he and Suzie jogged along a nature...
- Q S&S Air Goes Public Mark Sexton and Todd Story have beendiscussing the future of S&S Air. The company has beenexperiencing fast growth, and the two see only clear skies in...
- Q Superior MicroProducts uses the weighted-average method in its process costingsystem. Data for the Assembly Department for May appear below:MaterialsLaborOverhead Workin process, May 1$33,200 $54,999 $267,774 Costadded during May$201,580 $36,666 $178,516 Equivalent units of production2,800 2,700 2,600 Required:1.Compute the cost perequivalent...
- Q Clopack Companymanufactures one product that goes through one processingdepartment called Mixing. All raw materials are introduced at thestart of work in the Mixing Department. The company uses theweighted-average method of...
- Q The Petroco Service Station has one pump for regular unleadedgas, which (with an attendant) can service 10 customers per hour.Cars arrive at the regular unleaded pump at a rate of...
- Q Option #1: Bad DebtsPaisley Corporation operates in an industry that has a high rateof bad debts. The year-end balance reported in the balance sheetfor the Allowance for Doubtful Accounts will...
- Q 5. AccountTitleDebitCreditCash$9,300Accounts receivable27,500Office supplies6,518Trucks191,000Accumulateddepreciation—Trucks$39,346Land50,000Accounts payable13,300Interest payable5,000Long-term notes payable42,000Common stock15,000Retained earnings146,818Dividends10,000Trucking fees earned130,000Depreciation expense—Trucks25,378Salaries expense55,577Office supplies expense6,000Repairs expense—Trucks10,191Totals$391,464$391,464 Use the above adjusted trial balance to prepare Wilson TruckingCompany’s classified balance sheet as...
- Q Exercise 2-15 Plantwide and Departmental Predetermined OverheadRates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4][The followinginformation applies to the questions displayedbelow.]Delph Company uses ajob-order costing system and has two manufacturingdepartments—Molding and Fabrication....
- Q On July 31, 2020, Crane Company paid $2,950,000 to acquire allof the common stock of Conchita Incorporated, which became adivision (a reporting unit) of Crane. Conchita reported thefollowing balance sheet...
- Q It is stated in chapter 5 of Cornerstones of Cost Managementthat the theoretical and practical activity levels reflect, ingeneral, the company's production capabilities, while the expectedand normal activity levels reflect,...
- Q Exercise 2-15 Plantwide and Departmental Predetermined OverheadRates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4][The followinginformation applies to the questions displayedbelow.]Delph Company uses ajob-order costing system and has two manufacturingdepartments—Molding and Fabrication....
- Q Exercise 2-15 Plantwide and Departmental Predetermined OverheadRates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4][The followinginformation applies to the questions displayedbelow.]Delph Company uses ajob-order costing system and has two manufacturingdepartments—Molding and Fabrication....
- Q The Murdock Corporation reported the following balance sheetdata for 2018 and 2017: 20182017Cash$82,925$25,955Available-for-sale debtsecurities (not cash equivalents)18,00090,000Accounts receivable85,00072,750Inventory170,000149,500Prepaid insurance1,9502,500Land, buildings, andequipment1,260,0001,130,000Accumulated depreciation(615,000)(577,000)Total assets$1,002,875$893,705Accounts payable$80,840$153,670Salaries payable22,00027,000Notes payable (current)29,50080,000Bonds payable205,0000Common stock300,000300,000Retained earnings365,535333,035Total liabilities...
- Q Provide life examples of temporarily restricted net assets.
- Q In 2000, the high flying company Enron completely collapsedtaking venerable accounting and audit firm Arthur Anderson alongwith it. There were some warning signs, but right up to the end, anexamination...
- Q Clapton Guitar Company entered into the following transactionsduring 2016. [The transactions were properly recorded inpermanent (balance sheet) accounts unless otherwiseindicated.]DateTransactionJan.25Purchased $480 of officesupplies.Feb.1Rented a warehouse from HendrixCompany, paying 1 year’s...
- Q Problem 3-11 T-Account Analysis of Cost Flows [LO3-2, LO3-3,LO3-4]Selected T-accounts of Moore Company are given below for thejust completed year:Raw MaterialsBal. 1/123,000Credits?Debits136,000Bal. 12/3133,000ManufacturingOverheadDebits204,720Credits?Work in ProcessBal. 1/128,000Credits494,000Direct materials98,000Direct labor174,000Overhead222,720Bal. 12/31?Factory WagesPayableDebits201,000Bal....
- Q Chester has a new design for their product City next round thatcan reduce their material cost of producing units from $8.14 to$7.32. Chester passes on half of all cost savings...
- Q On February 1, 2010, Marsh Contractors agreed to construct abuilding at a contract price of $5,800,000. Marsh estimated totalconstruction costs would be $4,000,000 and the project would befinished in 2012....
- Q You need to describe these financial statements. The statementsare the profit and loss statement, statement if retained earnings,banalce sheet and the cash flow statement. For each of thesereports describe what...
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