Ace Your Accounting Assignments: Expert Guidance for Success
1. 1. When products are completed, which of the following accounts is increased? a. Raw Materials...
1. When products are completed, which of the following accounts is
increased?
a. Raw Materials Inventory.
b. Work in Process Inventory.
c. Finished Goods Inventory.
d. Cost of Goods Sold.
2. When products are completed, which of the following accounts is
decreased?
a. Raw Materials Inventory.
b. Work in Process Inventory.
c. Finished Goods Inventory.
d. Cost of Goods Sold.
3. Finished Goods represents products that are
a. In the process of being completed.
b. Ready to be sold.
c. Sold.
d. None of the above.
4. Finished Goods Inventory increases by the
a. Cost of goods manufactured.
b. Overhead applied.
c. Cost of selling the product.
d. Cost of goods sold.
5. Finished Goods Inventory decreases by the
a. Cost of goods manufactured.
b. Overhead applied.
c. Cost of selling the product.
d. Cost of goods sold.
6. Which of the following accounts is similar to the Inventory account
of a merchandising company?
a. Raw Materials Inventory
b. Work in Process Inventory
c. Finished Goods Inventory
d. Manufacturing Overhead
7. Which of the following is the correct journal entry to record the
purchase of indirect materials on account?
a.
Raw Materials Inventory
Accounts
Payable
b.
Manufacturing Overhead
Accounts
Payable
c.
Work in Process Inventory
Accounts
Payable
d.
Merchandise Inventory
Accounts Payable
8. Which of the following is the correct journal entry to record direct
materials put into production?
a.
Raw Materials Inventory
Work in
Process Inventory
b.
Work in Process Inventory
Finished
Goods Inventory
c.
Work in Process Inventory
Raw
Materials Inventory
d.
Finished Goods Inventory
Work in Process
Inventory
9. Which of the following is the correct journal entry to record
manufacturing overhead incurred?
a.
Manufacturing Overhead Control
Work in Process Inventory
b.
Work in Process Inventory
Manufacturing Overhead Control
c.
Manufacturing Overhead Control
Cash or other Payables
d.
Finished Goods Inventory
Manufacturing Overhead Control
10. Which of the following is the correct journal entry to record the
application of manufacturing overhead?
a.
Manufacturing Overhead Control
Work in
Process Inventory
b.
Work in Process Inventory
Manufacturing Overhead Control
c.
Manufacturing Overhead Control
Cash or
other Payables
d.
Finished Goods Inventory
Manufacturing Overhead
Control
2. Suppose you are the only owner of a chain of coffee shops near universities. Your current cafes a...
Show transcribed image text Suppose you are the only owner of a chain of coffee shops near universities. Your current cafes are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Your existing business generates $111,000 in EBIT. The corporate tax rate applicable to your business is 35%. The depreciation expense reported in the financial statements is $21, 143. You don't need to spend any money for new equipment in your existing cafes; however, you do need $16, 650 of additional cash. You also need to purchase $8, 880 in additional supplies-such as cloth table clothes and napkins, and more formal tableware-on credit. It is also estimated that your accruals, including taxes and wages payable, will increase by $5, 550. Based on your evaluation you have ______ in free cash flow.
3. Hair World Inc. is a wholesaler of hair supplies.
Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected from 2010: a. Sold merchandise for cash (cost of merchandise $27,897). $53,200 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $460). 700 c. Sold merchandise (costing $4,250) to a customer, on account with terms 2/10, n/30. 10,500 d. Collected half of the balance owed by the customer in (c) within the discount period. 5,145 e. Granted an allowance to the customer in (c). 160 Requirement 1: Compute Sales Revenue, Net Sales, and Gross Profit for Hair World. (Omit the "$" sign in your response.)
4. Shun Corporation manufactures and sells a hand held calculator.
Shun Corporation manufactures and sells a hand held calculator. The following information relates to Shun's operations for last year:
Unit product cost under variable costing.....$5.20 per unit
Fixed manufacturing overhead cost for the year.....$260,000
Fixed selling and administrative cost for the year.....$180,000
Units (calculators) produced and sold.....400,000
What is Shun's unit product cost under absorption costing for last year?
Answer
A $4.10
B $4.55
C $5.85
D $6.30
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Units in beginning Inventory 0
Units produced 1,900
Units sold 1,700
Units in ending inventory 200
Variable costs per unit:
Direct materials $33
Direct labor $32
Variable manufacturing overhead $2
Variable selling and administrative $6
Fixed costs:
Fixed manufacturing overhead $72,200
Fixed selling and administrative $6,800
5. In which of the columns of a worksheet would a net loss be? found? A. in the balance sheet cred...
In which of the columns of a worksheet would a net loss be? found?
A.
in the balance sheet credit column and the income statement debit column
B.
in the balance sheet debit column and the income statement credit column
C.
in the unadjusted trial balance debit? column, the adjusted trial balance debit? column, and the balance sheet debit column
D.
in the unadjusted trial balance credit? column, the adjusted trial balance credit? column, and the balance sheet credit column
6. The following is the Receipts and Payments Account of the Calcutta Club for the year ending...
The following is the Receipts and Payments Account of the Calcutta Club for the year ending 31.12.2014:
Receipts | ~ | Payments | ~ |
Opening Balance : |
| Salaries | 6,000 |
Cash | 1,025 | Sports expenses | 6,900 |
Stamps | 50 | Electricity | 1,000 |
Bank F.D. | 10,000 | Telephone | 1,200 |
S/B Account | 4,200 | Postage expenses General body expenses Printing & Stationery Building purchase account Repairs Closing Balance : Cash Stamps Bank F.D. S/B A/c Current A/c | 200 |
Current Account | 2,100 | 700 | |
Subscriptions | 850 | ||
2013 | 1,010 | 12,000 | |
2014 | 18,900 | 400 | |
2015 | 900 | ||
Donations | 7,000 | 1,740 | |
Bank interest received | 1,340 | 25 | |
Receipts from sports | 2,600 | 11,000 | |
Telephone recoveries | 900 | 4,310 3,700 | |
50,025 | 50,025 |
A building costing one lakh of rupees was purchased during the last year and ~ 88,000 was paid for it. Subscriptions outstanding for 2014------------------------------------------------------- ~ 1,100; Interest accrued on bank deposits but not received ~ 200; and Salaries
outstanding ~ 200. From the above, prepare Income and Expenditure Account for the year 2014 and also the Balance Sheet as on 31.12.2014 of the Calcutta Club.
7. A carpenter makes tables and chairs. Each table can be sold for a profit of £30 and each chair for a
A carpenter makes tables and chairs. Each table can be sold for a profit of £30 and each chair for a profit of £10. The carpenter can afford to spend up to 40 hoursper week working and takes six hours to make a table and three hours to make a chair. Customer demand requires that he makes at least three times as many chairs astables. Tables take up four times as much storage space as chairs and there is room for at most four tables each week.
Formulate this problem as a linear programming problem and solve for the optimum amount of chairs and tables that should be made per week. Use Excel solver
8. Given the network plan that follows, compute the early, late, and slack times.
Given the network plan that follows, compute the early, late, and slack times.
What is the project duration? Using any approach you wish (e.g., trial and
error), develop a loading chart for resources Carpenters (C) and Electricians (E).
Assume only one Carpenter is available and two Electricians are available.
Given your resource schedule, compute the early, late, and slack times for your project. Which activities are now critical? What is the project duration now?
9. Selected comparative financial statements of Haroun Company follow Comparative Income Statements ...
Show transcribed image text Selected comparative financial statements of Haroun Company follow Comparative Income Statements For Years Ended December 31, 2017-2011 S thous Sales Cost of goods sold Gross profit Operating 2017 2016 2015 2014 2013 2012 2011 $1, 694 $1,496 $1,370 $1,264 $1,186 $1,110 $928 1,246 1,032 902 802 752 710 586 400 342 144 118 448 468 462 434 3.0 256234 170 44 11 Net income s 118 208 234 292 $ 288 s 256 $224 HAROUN COMPANY Comparative Balance Sheets December 31, 2017-2011 2017 2016 2015 2014 2013 2012 2011 $ thousands) Assets Cash Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant assets, net s 58 s 78 514 82 S 84 s 88 s 86 302 89 216 318 1,838 1,364 1,204 1,032 936 810615 2,020 2,014 1,752 944 978 860 725 Prev 1 of 5 Next>
10. The Hartley Clinic purchased a new surgical laser for $90,000. The estimated salvage value is $5,...
Show transcribed image text The Hartley Clinic purchased a new surgical laser for $90,000. The estimated salvage value is $5,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1, 600 hours in year 1;2, 200 hours in year 2;2, 400 hours in year 3;1, 800 hours in year 4;2,000 hours in year 5. Compute the annual depreciation for each of the five years under straight-line and units-of-activity methods. If you were the administrator of the clinic, which method would you deem as most appropriate? Which method would result in the lowest reported income in the first year? Which method would result in the lowest total reported income over the five-year period?
11. 14. A plant asset cost $288,000 and is estimated to have a $36,000 salvage value at the end of its 8
14. A plant asset cost $288,000 and is estimated to have a $36,000 salvage value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be
a. $24,120.
b. $40,500.
c. $35,436.
d. $27,570.
15. A factory machine was purchased for $375,000 on January 1, 2014. It was estimated that it would have a $75,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 2014. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2014 would be
a. $37,500.
b. $60,000.
c. $75,000.
d. $30,000.
16. A truck that cost $72,000 and on which $60,000 of accumulated depreciation has been recorded was disposed of for $18,000 cash. The entry to record this event would include a
a. gain of $6,000.
b. loss of $6,000.
c. credit to the Equipment account for $12,000.
d. credit to Accumulated Depreciation for $60,000.
17. The following totals for the month of April were taken from the payroll register of Asplend Company.
Salaries and wages $72,000
FICA taxes withheld 5,508
Income taxes withheld 15,000
Medical insurance deductions 2,700
Federal unemployment taxes 192
State unemployment taxes 1,296
The entry to record the payment of net payroll would include a
a. debit to Salaries and Wages Payable for $47,304.
b. debit to Salaries and Wages Payable for $48,792.
c. debit to Salaries and Wages Payable for $43,284.
d. credit to Cash for $54,300.
12. List the errors you find in the following balance sheet. Prepare a corrected balance sheet.
Balance sheet
List the errors you find in the following balance sheet. Prepare a corrected balance sheet.
Labyrinth Services Co. Balance Sheet For the Year Ended August 31, 2014 | |||||
Assets | Liabilities | ||||
Current assets: | Current liabilities: | ||||
Cash | $18,500 | Accounts receivable . . | $ 41,400 | ||
Accounts payable . . | 31,300 | Accum. depr.—building | 155,000 | ||
Supplies | 6,500 | Accum. depr.—equipment | 25,000 | ||
Prepaid insurance . . | 16,600 | Net income . | 118,200 | ||
Land | 225,000 | Total liabilities | $339,600 | ||
Total current | $297,900 | ||||
Property, plant, and equipment | Stockholders' Equity | ||||
Building . | $400,000 | Wages payable . . | $6,500 | ||
Equipment ? | 97,000 | Capital stock . ???????? | 75,000 | ||
Total property, Plant and equipment | 635,400 | Retained earnings | 512,200 | ||
Total stockholders' equity | 593,700 | ||||
Total assets . | $933,300 | Total liabilities and stockholders' equity . | $933,300 | ||
13. Which of the following best represents the stream of income that is available to common...
Which of the following best represents the stream of income that is available to common stockholders? (Unit 2)
a. Net profit after tax and after preferred dividend payments
b. Earnings before interest and taxes
c. Gross profit
d. Operating profit
14. Prime Company holds 80 percent of Lane Company’s stock, acquired on January 1, 20X2, for $160,0...
Prime Company holds 80 percent of Lane Company’s stock, acquired on January 1, 20X2, for $160,000. On the acquisition date, the fair value of the noncontrolling interest was $40,000. Lane reported retained earnings of $50,000 and had $100,000 of common stock outstanding. Prime uses the fully adjusted equity method in accounting for its investment in Lane.
Trial balance data for the two companies on December 31, 20X6, are as follows:
Prime Company | Lane Company | ||||||||||||
Item | Debit | Credit | Debit | Credit | |||||||||
Cash and Accounts Receivable | $ | 113,000 | $ | 35,000 | |||||||||
Inventory | 260,000 | 90,000 | |||||||||||
Land | 80,000 | 80,000 | |||||||||||
Buildings and Equipment | 500,000 | 150,000 | |||||||||||
Investment in Lane Company Stock | 191,600 | ||||||||||||
Cost of Goods Sold | 140,000 | 60,000 | |||||||||||
Depreciation and Amortization | 25,000 | 15,000 | |||||||||||
Other Expenses | 15,000 | 5,000 | |||||||||||
Dividends Declared | 30,000 | 5,000 | |||||||||||
Accumulated Depreciation | $ | 205,000 | $ | 45,000 | |||||||||
Accounts Payable | 60,000 | 20,000 | |||||||||||
Bonds Payable | 200,000 | 50,000 | |||||||||||
Common Stock | 300,000 | 100,000 | |||||||||||
Retained Earnings | 322,000 | 95,000 | |||||||||||
Sales | 240,000 | 130,000 | |||||||||||
Gain on Sale of Equipment | 20,000 | ||||||||||||
Income from Subsidiary | 7,600 | ||||||||||||
Total | $ | 1,354,600 | $ | 1,354,600 | $ | 440,000 | $ | 440,000 | |||||
Additional Information |
1. | At the date of combination, the book values and fair values of all separately identifiable assets and liabilities of Lane were the same. At December 31, 20X6, the management of Prime reviewed the amount attributed to goodwill as a result of its purchase of Lane stock and concluded an impairment loss of $18,000 should be recognized in 20X6 and shared proportionately between the controlling and noncontrolling shareholders. |
2. | On January 1, 20X5, Lane sold land that had cost $8,000 to Prime for $18,000. |
3. | On January 1, 20X6, Prime sold to Lane equipment that it had purchased for $75,000 on January 1, 20X1. The equipment has a total economic life of 15 years and was sold to Lane for $70,000. Both companies use straight-line depreciation. |
4. | There was $7,000 of intercompany receivables and payables on December 31, 20X6. |
Required: |
a. | Give all consolidation entries needed to prepare a consolidation worksheet for 20X6. As below (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the basic consolidation entry. Record the amortized excess value reclassification entry. Record the excess value (differential) reclassification entry. Record the entry to eliminate the intercompany receivable/payable. Record the entry to eliminate the gain on the purchase of land. Record the entry to eliminate the gain on the equipment and to correct the asset's basis. Record the entry to adjust Accumulated Depreciation.
|
15. Allegience Insurance Company s management is considering an advertising program that would require..
Allegience Insurance Company s management is considering an advertising program that would require an initial expenditure of $165,500 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $75,000, with associated expenses of $25,000. The additional sales revenue and expenses from the advertising program are projected to increase by 10 percent each year. Allegience s tax rate is 40 percent. (The $165,500 advertising cost is an expense.) Required: 1. Compute the payback period for the advertising program. 2. Calculate the advertising program s net present value, assuming an after-tax hurdle rate of 10 percent?