ECON330 Money and Banking-Winter Guide for Students 2024

Published: 1 year ago

ECON330 Money and Banking-Winter Guide for Students 2024

37. Aaron Company, which has only one product, has provided the following data concerning its most...

Aaron Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price ...........................................$90 Units in beginning inventory ...................0 Units produced ...................................3,400 Units sold ............................................3,000 Units in ending inventory ......................400 Variable costs per unit: Direct materials .....................................$21 Direct labor .............................................38 Variable manufacturing overhead .............6 Variable selling and administrative ...........4 Fixed costs: Fixed manufacturing overhead ..........$54,400 Fixed selling and administrative ............3,000 a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing? c. The total contribution margin for the month under the variable costing approach is: d. The total gross margin for the month under the absorption costing approach is: e. What is the total period cost for the month under the variable costing approach? f. What is the total period cost for the month under the absorption costing approach? g. What is the net operating income for the month under variable costing? h. What is the net operating income for the month under absorptioncosting?

38. PROBLEM 6-22

The Suzuki Company in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2013 is 900,000 units. Suzuki’s target ending inventory is 80,000 units, and its beginning inventory is 100,000 units. The company’s budgeted selling price to its distributors and dealers is 400,000 yen (-) per motorcycle.

Suzuki buys all its wheels from an outside supplier. No defective wheels are accepted. (Suzuki’s needs for extra wheels for replacement parts are ordered by a separate division of the company.) The company’s target ending inventory is 60,000 wheels, and its beginning inventory is 50,000 wheels. The budgeted purchase price is 16,000 yen(-) per wheel.

Required:

1. Compute the budgeted revenue in yen.

2. Compute the number of motorcycles to be produced.

3. Compute the budgeted purchases of wheels in units and in yen.

39. Delong Corporation was organized on January 1, 2017. It is authorized to issue 10,000 shares of 8...

Delong Corporation was organized on January 1, 2017. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were complete during the first year. Jan. 10 issued 80,000 shares of common stock for cash at $4 per share. Mar 1 Issued 5,000 shares of preferred stock for cash at $105 share. Apr 1 Issued 24,000 shares of common stock for land. The asking price of the land was $90,000. The fair value of the land was $ 85,000. May 1 Issued 80,000 shares of common stock for cash at $4.50 per share. Aug 1 Issued 10,000 shares of common stock attorneys in payment of their bill of $30,000 for services performed in helping the company organize. Sep 1 Issued 10,000 shares of common stock for cash at $5 per share. Nov 1 Issued 1.000 shares of preferred stock for cash at $109 per share. Journalize the transactions. Post to the stockholders' equity accounts(Use J5 as the posting reference) Prepare the paid-in capital section of stockholders' equity at December 31, 2017.

40. Described below are certain transactions of Edwardson Corporatio

Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system.

1. On February 2, the corporation purchased goods from Martin Company for $70,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26.

2. On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a one-year, 12% note for the balance of the purchase price.

3. On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zero-interest- bearing note due one year from May 1.

4. On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31.

Instructions

(a) Make all the journal entries necessary to record the transactions above using appropriate dates.

(b) Edwardson Corporation’s year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts.

41. indentify five ways in which an independent audit may be beneficial

indentify five ways in which an independent audit may be beneficial

42. Factor Company is planning to add a new product to its line. To manufacture this product, the com...

Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000 cost with an expected four-year life and a $23,000 salvage value. All sales are for cash, and all costs are out-of-pocket, except for depreciation on the new machine. Additional appropriate factor(s) from the tables provided.) $1,960,000 Expected annual sales of new product Expected annual costs of new product 480,000 Direct materials 672,000 Direct labor overhead (excluding straight-line depreciation on new machine 336.000 178,000 Selling and administrative expenses taxes 40% ncome Required 1. Compute straight-line depreciation for each year of this new machine's life. Straight-line depreciation 116,000

43. 2. (5 points) An investor purchasing a British consol is entitled to receive annual payments from...

2. (5 points) An investor purchasing a British consol is entitled to receive annual payments from the British government forever. What is the price of a consol that pays $150 annually if the next payment occurs one year from today? The market interest rate is 4.6 percent. Hint: An owner of the consols is entitled to receive yearly payments from the British Government forever. Answer:

44. Based on the Fotonovela video, fill in the blanks with the missing verbs. ¿No vamos a ? ¿Qué es un..

Based on the Fotonovela video, fill in the blanks with the missing verbs.

1. ¿No vamos a       ? ¿Qué es un cenote?


2. Ella nada y        al tenis y al golf.


3. Bueno, chicos, ya es hora, ¡      !


4. Si       , compramos el almuerzo.

45. Chapter 9 MULTIPLE CHOICE 1.Which characteristics below is not a characteristic of auditing?...

Chapter 9

MULTIPLE CHOICE

1.Which characteristics below is not a characteristic of auditing?

a)evidence collection

b)establishing audit criteria

c)objectivity

d)systems development

2.Auditing involves the

a)collection, review, and documentation of audit evidence.

b)planning and verification of economic events.

c)collection of audit evidence and approval of economic events.

d)testing, documentation, and certification of audit evidence.

3.The purpose of an internal audit is

a)to evaluate the adequacy and effectiveness of company's internal controls.

b)to determine the extent to which assigned responsibilities are actually carried out.

c)to collect evidence on whether the company is continuing as a going concern.

d)A and B only

4.The type of audit in which the primary responsibility of the auditors is the management of the organization is

a)an external audit.

b)a governmental audit.

c)an internal audit.

d)a public audits.

5.What is not a typical responsibility of an internal auditor?

a)helping management to improve organizational effectiveness

b)assisting in the design and implementation of an AIS

c)preparation of the company's financial statements

d)implementing and monitoring of internal controls

6.The Institute of Internal Auditors (IIA) has established five audit scope standards that outline the internal auditor's responsibilities.  Which standard below deals with the principles of reliability and integrity?

a)determining whether the systems are designed to comply with operating and reporting policies

b)review of how assets are safeguarded and verification of their existence as appropriate

c)review of company operations and programs to determine whether they are being carried out as planned

d)review of operating and financial information and how it is identified, measured, classified, and reported 

7.The three different types of internal audits commonly performed today are

a)internal, external, defense contracting.

b)financial, operational, information systems.

c)financial, operational, management.

d)internal, external, public.

8.There are different types of internal audit work.  Which type of work listed below is not typical of internal auditors?

a)operational and management audits

b)information system audits

c)financial statement audit

d)financial audit of accounting records

9.The __________ audit examines the reliability and integrity of accounting records.

a)financial

b)informational

c)information systems

d)operational

10.The __________ audit reviews the general and application controls of an AIS to assess its compliance with internal control policies and procedures and its effectiveness in safeguarding assets.

a)financial

b)information systems

c)management

d)internal control

46. Check my work The first quarter tax return needs to be filed for Prevosti Farms and Sugarhouse by...

Please help. I am confused on the duplicate payroll for tax purposes. Check my work The first quarter tax return needs to be filed for Prevosti Farms and Sugarhouse by April 15, 2016. For the purpose of the taxes, assume the February payroll amounts were duplicated for the March 10 and March 24 payroll periods Name: Toni Prevosti Address: 820, Westminster Road, Bridgewater, VT, 05520 Phone: 802-555-3456 Number of employees: 8 Quarterly wages: $32,010.17 Federal income tax withheld: $988.00 401(k) contributions: $1,25765 Insurance withheld: $4,080.00 Monthly Deposits Month 1 Month 2 Month 3 Amount $ 2,133.22 $3,128.12 Required: Complete Form 941 for Prevosti Farms and Sugarhouse. Prevosti Farms and Sugarhouse was assigned EIN 22-6654454 (NOTE): Instructions on format can be found on certain cells within the forms Pre1 of 1 Next

47. In a recent year"s financial statements, Home Depot reported the following results. Compute and...

1. In a recent year’s financial statements, Home Depot reported the following results. Compute and interpret Home Depot’s return on assets (assume competitors average a 5% return on assets).

2. Indicate in which financial statement each item would most likely appear: income statement (I), balance sheet (B), statement of owner’s equity (OE), or statement of cash flows (CF).

a. Assets

b. Revenues

c. Liabilities

d. Equipment

e. Withdrawals

f. Expenses

g. Total liabilities and equity

h. Cash from operating activities

i. Net decrease (or increase) in cash

48. Which types of adjusting entries are natural opposites?

Which types of adjusting entries are natural opposites?

a. Net income and net loss c. Prepaids and accruals

b. Expenses and revenues d. Prepaids and depreciation

49. Effect of transactions on current position analysis Data pertaining to the current position of...

Effect of transactions on current position analysis

Data pertaining to the current position of Forte Company are as follows:

Instructions

1.     Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round to one decimal place.

2.     List the following captions on a sheet of paper:

Transaction                              Working Capital                     Current Ratio                           Quick Ratio

Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round to one decimal   place.

a.     Sold marketable securities at no gain or loss, $70,000.

b.    Paid accounts payable, $125,000.

c.     Purchased goods on account, $110,000.

d.    Paid notes payable, $100,000.

e.     Declared a cash dividend, $150,000.

f.      Declared a common stock dividend on common stock, $50,000.

g.     Borrowed cash from bank on a long-term note, $225,000.

h.    Received cash on account, $125,000.

i.       Issued additional shares of stock for cash, $600,000.

j.       Paid cash for prepaid expenses, $10,000.

50. Palisade Creek Co. is a merchandising business. The account balances for Palisade Creek Co. as of...

Palisade Creek Co. is a merchandising business. The account balances for Palisade Creek Co. as of May 1, 2014 (unless otherwise indicated), are as follows:

During May, the last month of the fiscal year, the following transactions were completed:

May 1. Paid rent for May, $5,000.

3. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.

4. Paid freight on purchase of May 3, $600.

6. Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.

7. Received $22,300 cash from Halstad Co. on account, no discount.

10. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.

13. Paid for merchandise purchased on May 3, less discount.

14. Received merchandise returned on sale of May 6, $13,500. The cost of the merchandise returned was $8,000.

15. Paid advertising expense for last half of May, $11,000.

16. Received cash from sale of May 6, less return of May 14 and discount.

19. Purchased merchandise for cash, $18,700.

19. Paid $33,450 to Buttons Co. on account, no discount.

Record the following transactions on Page 21 of the journal.

20. Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000.

21. For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.

21. Received $42,900 cash from Gee Co. on account, no discount.

21. Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.

24. Returned $5,000 of damaged merchandise purchased on May 21, receiving credit from the seller.

May 26. Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.

28. Paid sales salaries of $56,000 and office salaries of $29,000.

29. Purchased store supplies for cash, $2,400.

30. Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.

30. Received cash from sale of May 20, less discount, plus freight paid on May 21.

31. Paid for purchase of May 21, less return of May 24 and discount.

Instructions

1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (*) in the Posting Reference column. Journalize the transactions for July, starting on Page 20 of the journal.

2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers.

3. Prepare an unadjusted trial balance.

4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).

5. (Optional.) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet.

6. Journalize and post the adjusting entries.

7. Prepare an adjusted trial balance.

8. Prepare an income statement, a retained earnings statement, and a balance sheet.

9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account.

10. Prepare a post-closing trial balance.

51. For sampling, which ONE of the following should be up-to-date, complete and affordable? a) A census.

For sampling, which ONE of the following should be up-to-date, complete and affordable?

a)A census.b)A CAPI machine.c)A sampling frame.d)A respondent.