Ace Your Accounting Assignments: Expert Guidance for Success

Ace Your Accounting Assignments: Expert Guidance for Success
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Published: 11 months ago

Ace Your Accounting Assignments: Expert Guidance for Success

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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.











b.



Prepare a three-part worksheet for 20X6.











c.



Prepare a consolidated balance sheet, income statement, and retained earnings statement for 20X






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?


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