Accounting question and answers for August 25, 2023
- Q During the month, the following transactions occurred forTrevor’s Supply Company. The company uses theperpetual inventory method.Dec. 1Accepted a 4-month, 6% note from a customer in settlement of$12,400 account.3Wrote off as uncollectible...
- Q Ester Arthur has been caught filing tax returns with fake socialsecurity numbers and depositing the refunds in her own account.What disciplinary actions may the IRS impose?
- Q You prepared the tax return of Pete Kazda. After you deliveredthe tax return, Mr. Kazda refused to pay his bill for professionalservices rendered. He also requests that you return all...
- Q CaseACaseBCaseCBeginning inventory, raw material96,0007,000Ending inventory, raw material198,00033,000Purchases of raw material290,000273,000Direct material used230,000321,000Direct labor390,00071,500Manufacturing overhead590,00098,000Total manufacturing costs1,130,0001,125,000217,000Beginning inventory, work in process88,00078,000Ending inventory, work in process123,0004,300Cost of goods manufactured1,086,000220,000Beginning inventory, finished goods190,000138,000Cost...
- Q Sally Smith is a new client for 2015. As you requested, sheprovided you with copies of her prior year tax return, prepared byanother tax professional, and all of her current...
- Q Problem 6-22 CVP Applications; Contribution Margin Ratio;Break-Even Analysis; Cost Structure [LO6-1, LO6-3, LO6-4, LO6-5,LO6-6]Due to erratic sales of its sole product—a high-capacity batteryfor laptop computers—PEM, Inc., has been experiencing financialdifficulty...
- Q Andretti Company has a single product called a Dak. The companynormally produces and sells 86,000 Daks each year at a sellingprice of $60 per unit. The company’s unit costs at...
- Q Problem 6-23 CVP Applications; Contribution Margin Ratio: Degreeof Operating Leverage [LO6-1, LO6-3, LO6-4, LO6-5, LO6-8]Feather Friends, Inc., distributes a high-quality woodenbirdhouse that sells for $80 per unit. Variable expenses are...
- Q Exercise 6-9 Compute and Use the Degree of Operating Leverage[LO6-8]Engberg Company installs lawn sod in home yards. The company’smost recent monthly contribution format income statementfollows:AmountPercent of SalesSales$127,000100%Variable expenses50,80040%Contribution margin76,20060%Fixed expenses23,000Net...
- Q The Town of Weston has a Water Utility Fund with the followingtrial balance as of July 1, 2016, the first day of the fiscalyear:DebitsCreditsCash$ 333,000Customer accounts receivable201,800Allowance for uncollectible accounts$...
- Q Brothers Mike and Tim Hargen began operations of their tool anddie shop (H & H Tool, Inc.) on January 1, 2016. The annualreporting period ends December 31. The trial balance...
- Q Peter acquires 100% of Saul for 5,254,360 in atax-free business combination. The applicableincome tax rate is 30%. Goodwill is not deductible for taxpurposes. Based on the following information about the...
- Q (4) Performance-Based Share Option CompensationPlanOn January 1, 2016, Pierce Company establishes aperformance-based share option plan for its 80 top executives. Theterms of the plan are that each executive is granted...
- Q Jarvene Corporation uses the FIFO method in its process costingsystem. The following data are for the most recent month ofoperations in one of the company’s processing departments:Units in beginning inventory410Units...
- Q Port Ormond Carpet Company manufactures carpets. Fiber is placedin process in the Spinning Department, where it is spun into yarn.The output of the Spinning Department is transferred to the TuftingDepartment,...
- Q 3) What’s the difference between “financial statementmateriality” and “performance materiality” and how are they used inan audit. Provide an example.
- Q Top executive officers of Tildon 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$1,600,000Cost of goods sold1,120,000Gross...
- Q 1.In 2020, Elaine paid $2,440 of tuition and $1,160 for books for herdependent son to attend State University this past fall as afreshman. Elaine files a joint return with her...
- Q Your assistant prepared the following bank reconciliationstatement. It appears that the statement is unacceptable and thetask of preparing a proper reconciliation falls upon you.Brandon CompanyBank ReconciliationMay 31, 2017 Balance per books...
- Q Ayayai Company provides the following information about itsdefined benefit pension plan for the year 2017.Service cost$91,200Contribution to the plan104,700Prior service cost amortization9,800Actual and expected return on plan assets62,800Benefits paid40,500Plan assets...
- Q Austin Co. manufactures a product called Aster in athree-process series. All materials are introduced at the beginningof the first process. Austin uses the first-in, first-out method ofinventory costing. Unit and...
- Q Statement of Cost of Goods Manufactured for a ManufacturingCompanyCost data for Sandusky Manufacturing Company for the month endedJanuary 31 are as follows:InventoriesJanuary 1January 31Materials$208,750$187,880Work in process139,860125,880Finished goods108,550127,760Direct labor$375,750Materials purchased during...
- Q International business and environmentThe MIR requires teams to gather current, or the mostrecently available, data on the market’s people, economy,government, and technological status from online sources.
- Q Inyour opinion, which function of the HRM is the most important?Explain in detail and support with outside sources.
- Q On September 1, Duffs Beer Distributor had an inventory of 60cases of beer at a cost of $21 each. The company uses a perpetualinventory system. During September, the following transactionsoccurred....
- Q Question 10The comparative balance sheets for Rothlisberger Company as ofDecember 31 are presented below.ROTHLISBERGER COMPANYComparative Balance SheetsDecember 31Assets20202019Cash$58,100$49,600Accounts receivable43,50065,100Inventory152,000144,500Prepaid expenses14,50022,500Land101,600134,000Buildings196,700196,700Accumulated depreciation—buildings(56,800)(32,600)Equipment231,700157,600Accumulated depreciation—equipment(44,300)(35,200) Total$697,000$702,200Liabilities and Stockholders’ EquityAccounts payable$46,300$39,300Bonds payable260,000292,600Common stock, $1 par192,600160,000Retained...
- Q “This is really an odd situation,” said Jim Carter, generalmanager of Highland Publishing Company. “We get most of the jobs webid on that require a lot of press time in...
- Q Leslie Sporting Goods is a locally owned store that specializesin printing team jerseys. The majority of its business comes fromorders for various local teams and organizations. While Leslie’sprints everything from...
- Q Data for Barry Computer Co. and its industry averages follow.The firm's debt is priced at par, so the market value of its debtequals its book value. Since dollars are in...
- Q (6) Treasury Stock AnalysisRay Holt Corporation has retained you as a consultant onaccounting policies and procedures. During 2016, the companyengaged in a number of treasury stock transactions, having foreseenan opportunity...
- Q On January 1, 2017,Abbey acquires 90 percent of Benjamin's outstanding shares.Financial information for these two companies for the years of 2017and 2018 follows:Abbey Company: 2017 2018Sales$ (776,000)$ (1,114,000)Operating expenses488,000674,000Intra-entity gross profits...
- Q Depreciation for Partial PeriodsBar Delivery Company purchased a new delivery truck for $36,000on April 1, 2019. The truck is expected to have a service life of10 years or 180,000 miles...
- Q Twenty metrics of liquidity, Solvency, and ProfitabilityThe comparative financial statements of Automotive SolutionsInc. are as follows. The market price of Automotive Solutions Inc.common stock was $64 on December 31, 20Y8.AUTOMOTIVE...
- Q Market Price of a BondThe company intends to issue 20-year bonds with a face value of$1,000. The bonds carry a coupon rate of 9%, and interest is paidsemiannually. On the...
- Q The following selected accounts appear in the ledger of ParksConstruction Inc. at the beginning of the current fiscal year:Preferred 1% Stock, $50 par (100,000 shares authorized, 79,400shares issued) $3,970,000 Paid-In...
- Q Blue Suits Consulting began business on January 1, 2017.Using an Excel spreadsheet, prepare journal entries for thefollowing transactions that occurred during 2017.January 1, 2017 The Owner invested $28,000 in cash...
- Q In 2020, Martin and Rebecca formed WhiteCorporation. Martin transfers real estate with anadjusted basis of $260,000 and a fair market value of $350,000 tothe newly formed White Corporation in exchange for...
- Q In a page, explain the similarities and differences betweenfinancial and managerial accounting.
- Q EmailTo: Miss Elaine JacobsFrom: Jonathan BrooksRe: Banquet for Old EmployeesDate: March 12, 2016How are you doing? I am fine.I have been asked by the Human Resources Department to organizea banquet...
- Q Statement of Cash Flows—Indirect MethodThe comparative balance sheet of Olson-Jones Industries Inc. forDecember 31, 20Y2 and 20Y1, is as follows:Dec. 31, 20Y2Dec. 31, 20Y1AssetsCash$180$59Accounts receivable (net)10373Inventories6540Land148165Equipment8364Accumulated depreciation-equipment(22)(11)Total Assets$557$390Liabilities and Stockholders'EquityAccounts...
- Q Gary Farmer had the following sales of business property duringthe 2018 tax year:Sold land acquired on December 3, 2007, at a cost of $24,000,for $37,000 on January 5, 2018. The...
- Q Briefly explain the impact (increase or decrease) thesetransactions would have on specific accounts in the incomestatement and balance sheet.DateTransactionJanuary 1Borrowed $6,000 on a note payable. Interest rate of 7% is...
- Q Reciprocal Method of Support Department Cost Allocation ValronCompany has two support departments, Human Resources and GeneralFactory, and two producing departments, Fabricating and Assembly.Support Departments Producing Departments Human Resources GeneralFactory Fabricating...
- Q What are the equitable remedies if a contract is breached? Let'sassume two parties agree that Party A will finish construction on ahome by September 1st. If he has only completed...
- Q Erkens Company uses a job costing system with normal costing andapplies factory overhead on the basis of machine hours. At thebeginning of the year, management estimated that the company wouldincur...
- Q What role has the Securities and Exchange Commission played insetting accounting standards? Contrast its role with that played bythe Financial Accounting Standards Board.
- Q Respond to the following in a minimum of 175 words:Discuss the role that pension funds play in company pensionplans. What benefits accrue to companies who elect to use pensionfunds? How...
- Q Viejol Corporation has collected the following information afterits first year of sales. Sales were $1,600,000 on 100,000 units,selling expenses $250,000 (40% variable and 60% fixed), directmaterials $510,000, direct labor $290,600,...
- Q Sequential (Step) Method of Support Department Cost AllocationValron Company has two support departments, Human Resources andGeneral Factory, and two producing departments, Fabricating andAssembly. Support Departments Producing Departments Human ResourcesGeneral Factory...
- Q Chipper, a calendar-year corporation, purchased new machineryfor $1,135,000 in February 2018. In October, it purchased$2,105,000 of used machinery. What was Chipper’s maximum costrecovery deduction for 2018?Question 1 options:1) $1,243,6212) $3,240,0003)...
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