Accounting question and answers for September 07, 2023
- Q Emmar Co. purchased a machine on January 1, 2013 at a cost of240000. The machine had been estimated eight year life with noresidual value. Emmar uses straight line depreciation. At...
- Q Crystal Displays Inc. recently began production of a newproduct, flat panel displays, which required the investment of$1,500,000 in assets. The costs of producing and selling 5,000units of flat panel displays...
- Q At the beginning of 2020, Brown Corporation had the followingstockholders’ equity balances in its general ledger:Common Stock, $10 Par Value$2,500,000Paid-In Capital in Excess of Par: Common1,500,000Paid-In Capital, Treasury Stock10,000Paid-In Capital,...
- Q Morning Dove Company manufactures one model of birdbath, whichis very popular. Morning Dove sells all units it produces eachmonth. The relevant range is 0–1,800 units, and monthly productioncosts for the...
- Q David is a high school senior. He must decide whether to work orgo to college. If he has a high school degree, he will make $20,000per year. If he has...
- Q explain what "equivalent units" are and how this conceptis useful when assigning cost to products manufactured in a processenvironment? Provide an example to illustrate yourcomments.
- Q Marcelino Co.'s March 31 inventory of raw materials is $81,000.Raw materials purchases in April are $590,000, and factory payrollcost in April is $386,000. Overhead costs incurred in April are:indirect materials,...
- Q SAS Computers owns a patent on a computer processor. Theprocessor was developed and capitalized at a cost of €2,100,000 inthe beginning of 2015. It was expected to be economically usefulfor...
- Q Forest Components makes aircraft parts. The followingtransactions occurred in July: Purchased $16,950 of materials onaccount. Issued $16,860 in direct materials to the productiondepartment. Issued $1,350 of supplies from the materials...
- Q Selected information from the Blake Corporation accountingrecords for June follows:Materials InventoryBB (6/1)95,000467,000422,000Work-In-Process InventoryLabor400,000EB(6/30)600,000Finished Goods InventoryBB (6/1)297,000842,000839,000Cost of Goods Sold30,000Manufacturing Overhead Control370,000370,000Applied Manufacturing Overhead400,000370,00030,000Additional information for June follows:Labor wage rate was...
- Q PREPARING JOURNAL ENTRIESLegend Company uses the straight-line method foramortization of all bond premium & discounts. During fiscalyear 2018 Legend had the following bond payabletransactions:January 2, issued ten, $1,000 bonds at...
- Q Blue Bayou Middle School wants to raise money for a new soundsystem for its auditorium. The primary fund-raising event is adance at which the famous disc jockey Kray Zee will...
- Q PREPARING JOURNAL ENTRIESPart AOn January 2, 2017, Kesha Company purchased 10,000shares of the stock of Petty Corp., and did not obtain significantinfluence. The investment is intended as a long-terminvestment. The stock...
- Q Nasir, a house painter, and Miguel, a general contractor, metfor lunch one day. During lunch, Nasir and Miguel decided to gointo business together, wherein Miguel would send paintingreferrals to Nasir,...
- Q 3. W.T. Grant was the largest retailer in theUnited States when it caught nearly everyone by surprise by filingfor bankruptcy in 1975. W. T. Grant had been in existence since...
- Q The 2017 annual report of AlbanyCorporation reports the following (in millions):AmortizedCostFairValueDecember 31, 2016Short-term investments —available-for-sale debt securities$840.7$835.0Short-term investments — trading debtsecurities108.494.2Total short-term investments$949.1$929.2December 31, 2017Short-term investments —available-for-sale debt securities$ 462.9$...
- Q Bravo Community Hospital is a nonprofit hospital operated by thecounty. The hospital’s administrator is considering a proposal toopen a new outpatient clinic in the nearby city of New Castle. Theadministrator...
- Q Riverbed Company was formed on December 1, 2016. The followinginformation is available from Riverbed’s inventory records forProduct BAP.UnitsUnit CostJanuary 1, 2017 (beginning inventory)732$ 8.00Purchases: January 5, 20171,4649.00 January 25, 20171,58610.00 February 16, 201797611.00 March...
- Q Exercise 5-13 (Video)Billings Company has the following information available forSeptember 2020.Unit selling price of video game consoles$400Unit variable costs$280Total fixed costs$54,000Units sold600Compute the unit contribution margin.Unit contribution marginPrepare a CVP...
- Q Liberty Inc. acquired 100% of the voting common stock of ValanceInc. on January 1, 2018 by issuing 4,000 shares of Liberty Inc. $40par value common stock that had a fair...
- Q What is an Estimated ReturnsInventoryAn example of a Closing journal entry for sales revenue andsales discounts forfeited.An example of Journal entry to record cost of merchandise soldunder perpetual inventory system.what...
- Q Four years ago, Travis, a single taxpayer, acquired stock in acorporation that qualified as a small business corporation under §1244, at a cost of $60,000. Travis wants to give his...
- Q Six Measures of Solvency or Profitability.The following data were taken from the financial statements ofGates Inc. for the current fiscal year.Property, plant, and equipment (net)$1,238,900Liabilities:Current liabilities$190,000Note payable, 6%, due in...
- Q (TCO B) The following information pertains to Fox Inc.’sportfolio of marketable securities for the Year ended Dec 31, Year1 and Dec 31, Year 2.CostFair Value at 12/31 Year 1Year 2...
- Q Which form of stock isa better investment for shareholders -- common or preferred? Stateyour reasons as if you were trying to inform someone which type ofstock to invest in.
- Q Perrin Co has 2 divisions, A and B. Division A haslimited skilled labour and is operating at full capacity makingproduct Y. It has been asked to supply a different product,...
- Q A department uses the FIFO method of process costing. All directmaterials are added at the beginning of the process. Thisdepartment has the following data for this month.166 units in beginning...
- Q A department uses the FIFO method of process costing. All directmaterials are added at the beginning of the process. Thisdepartment has the following data for this month.200 units in beginning...
- Q Top executive officers of Vernon Company, a merchandising firm,are preparing the next year’s budget. The controller has providedeveryone with the current year’s projected income statement.Current YearSales revenue$2,400,000Cost of goods sold1,680,000Gross...
- Q Minden Company is a wholesale distributor of premium Europeanchocolates. The company’s balance sheet as of April 30 is givenbelow:Minden CompanyBalance SheetApril 30AssetsCash$18,700Accounts receivable70,250Inventory41,250Buildings and equipment, net of depreciation230,000Total assets$360,200Liabilities and...
- Q Tombro Industries is in the process of automating one of itsplants and developing a flexible manufacturing system. The companyis finding it necessary to make many changes in operatingprocedures. Progress has...
- Q Hi-Tek Manufacturing, Inc., makes two types of industrialcomponent parts—the B300 and the T500. An absorption costing incomestatement for the most recent period is shown:Hi-Tek Manufacturing Inc.Income StatementSales$1,704,000Cost of goods sold1,218,840Gross...
- Q Part A Accounting Standard Setting, Regulation and DisclosureACCOUNTING STANDARD SETTING (i) Do your own research and criticallyexplain how the Australian Accounting Standards Board take part inthe global accounting standard setting...
- Q Sunrise Coffee Company roasts and packs coffee beans. Theprocess begins in the Roasting Department. From the RoastingDepartment, the coffee beans are transferred to the PackingDepartment. The following is a partial...
- Q The following data relate to the operations of Shilow Company, awholesale distributor of consumer goods:Current assets as of March 31:Cash$8,000Accounts receivable$22,000Inventory$42,600Building and equipment, net$130,800Accounts payable$25,425Common stock$150,000Retained earnings$27,975The gross margin is...
- Q Scribners Corporation produces fine papers in three productiondepartments—Pulping, Drying, and Finishing. In the PulpingDepartment, raw materials such as wood fiber and rag cotton aremechanically and chemically treated to separate their...
- Q Squash Delight Inc. has the following balance sheet:Assets Cash$90,000 Accounts receivable307,000 Fixed assets782,000 Total assets$1,179,000Liabilities Accounts payable$284,000 Notes payable51,000 Common stock (100,000 shares @ $4 par)400,000 Capital in excess of par100,000 Retained earnings344,000 Total liabilities & owners'equity$1,179,000The firm’s stock sells...
- Q Treyton sold an apartment building for $600,000. His basis inthe building was $360,000 subject to $30,000 of depreciationrecapture. Treyton received $150,000 in the year of sale, the buyerassumed Treyton’s mortgage...
- Q A vice president of marketing for your company has beencharged with embezzling nearly $100,000 from the company. The vicepresident allegedly submitted fraudulent vendor invoices in orderto receive payments. As the...
- Q Ida Sidha Karya Company is a family-owned company located in thevillage of Glanyar on the island of Bali in Indonesia. The companyproduces a handcrafted Balinese musical instrument called a gamelanthat...
- Q Lou Barlow, adivisional manager for Sage Company, has an opportunity tomanufacture and sell one of two new products for a five-yearperiod. His annual pay raises are determined by his division’sreturn...
- Q Terracotta, Inc. reported the following accounts and amounts (inmillions) in its financial statements for the year ended November30, 2013. Accounts Payable$750 Accounts Receivable670 Accumulated Amortization480 Accumulated Depreciation820 Allowance for Doubtful Accounts40 Cash and Cash Equivalents860 Equipment5,255 Income Taxes...
- Q Compare and contrast the balance sheet method and incomestatement method of accounting for uncollectible debt. In yourresponse, include at least one advantage and disadvantage for eachmethod, and discuss how each...
- Q CaseScenarios: 1‘The Evolving DimensionsofThe AccountingProfession andThe 21st CenturyExpectations’(Jeremiah& Daferighe,2019)The dimension ofthe accountancy profession is undergoing an increasingly expandingand unpunctuated global evolution. These 21st-century twists,however, tend to pose an identity threat...
- Q [The following information applies to the questionsdisplayed below.]Web Wizard, Inc. has provided information technology servicesfor several years. The company uses the percentage of credit salesmethod to estimate bad debts for...
- Q Scobie Company began 2016 with a retained earnings balance of$142,400. During an examination of its accounting records onDecember 31, 2016, Scobie found it had made the following materialerrors, for both...
- Q If you were to open a business, how would it be organized?Identify the type of business you might start and why you wouldchoose that form of organization.
- Q Nash Company cans a variety of vegetable-type soups. Recently,the company decided to value its inventories using dollar-valueLIFO pools. The clerk who accounts for inventories does notunderstand how to value the...
- Q (TCO D) On January 1, 2010, Solis Co. issued its 10% bonds inthe face amount of $3,000,000, which mature on January 1, 2020. Thebonds were issued for $3,405,000 to yield...
- Q Beech Corporation is a merchandising company that is preparing amaster budget for the third quarter of the calendar year. Thecompany’s balance sheet as of June 30th is shown below:beech corporation...
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