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Efficient Strategies for Accounting Quiz Preparation
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16. Indicate the missing posting reference and amount in the control account, and the missing ending...The general ledger of Hensley Company contained the following Accounts Payable control account (in T-account form). Also shown is the related subsidiary ledger.
GENERAL LEDGER Accounts Payable
Feb.15 General o*rnal 1,400 Feb. 1 Balance 26,025
28 5 General journal 265
11 General journal 550
28 Purchases 13,400
Feb.28 Balance 10,500
ACCOUNTS PAYABLE LEDGER
Benton
Feb. 28 4,600
Dooley
Feb. 28 2,300
Parks
Feb. 28
Instructions
(a)Indicate the missing posting reference and amount in the control account, and the missing ending balance in the subsidiary ledger.
(b)Indicate the amounts in the control account that were dual-posted (i.e., posted to the control account and the subsidiary accounts).
17. Merry Olde Games produces croquet sets. The company makes fixed monthly payments to the local
Merry Olde Games produces croquet sets. The company makes fixed monthly payments to the local utility based on the previous year’s electrical usage. Any difference between actual and expected usage s paid in January of the year following usage. In February 2010, Merry Olde Games made 2,000 croquet sets and incurred the following costs:
Cardboard boxes (1 per set) $ 1,000
Mallets (2 per set) 12,000
Croquet balls (6 per set) 9,000
Wire hoops (12 per set, including extras) 3,600
Total hourly wages for production workers 8,400
Supervisor’s salary 2,600
Building and equipment rental 2,800
Utilities 1,300
Total $40,700
a. What was the per-unit cost of each component of a croquet set?
b. What was the total cost of each croquet set?
c. Production for March 2010 is expected to be 2,500 croquet sets. Last November, when 2,500 sets were made, utility cost was $1,400. There have been no rate changes at the local utility companies since that time. What is the estimated cost per set for March?
18. Blue Corporation, a manufacturing company, decided to develop a new line of merchandise
Blue Corporation, a manufacturing company, decided to develop anew line of merchandise. The project began in 2008. Blue had thefollowing expenses in connection with the project:
2012 2013
Salaries $500,000 $600,000
Materials 90,000 70,000
Insurance 8,000 11,000
Utilities 6,000 8,000
Cost of inspection of material
For qualitycontrol 7,000 6,000
Promotionexpenses 11,000 18,000
Advertising -0- 20,000
Equipmentdepreciation 15,000 14,000
Cost of marketsurvey 8,000 -0-
The new product will be introduced for sale beginning in July2010. Determine the amount of the deduction for research andexperimental expenditures for 2012, 2013 and 2014 if:
a. Blue Corporation elects to expense theresearch and experimental expenditures.
b. Blue Corporation elects to amortize theresearch and experimental expenditures over 60 months.
19. Garber Company uses a traditional activity-based costing system to assign $600,000 of committed resource costs f
Garber Company uses a traditional activity-based costing system to assign $600,000 of committed resource costs for customer service, based on the following information gathered from interviews with customer service personnel:
Activity Time Percentage Estimated Cost Driven Quantity
Handle customer orders 75% 8,000 customer orders
Process customer complaints 10% 400 customer complaints
Perform customer credit checks 15% 450 credit checks
100%
Required:
(a) Compute the activity cost driver rates using this system.
(b) Suppose instead that Garber uses time-driven activity-based costing to assign $600,000 of committed resource costs to the three activities. Compute the time driven activity cost driver rates assuming 10,000 hours of useful work and the unit time estimates below.
Activity Unit Time (Hours)
Handle customer orders 0.75
Process customer complaints 3.50
Perform customer credit checks 3.00
(c) Suppose that the quantities of activities this period are 8,000 customer orders, 400 customer complaints, and 450 credit checks. Using the information and activity cost driver rates developed in part (b), determine the cost assigned to each of the activities and the estimated hours of unused capacity, as well as the associated cost. What actions might managers take upon evaluating such information?
(d) Suppose that in the next time period, the quantities of activities change to 8,500 customer orders, 350 customer complaints, and 500 credit checks. Using the information and activity cost driver
Rates developed in part (b), determine the cost assigned to each of the activities and the estimated hours of unused capacity, as well as the associated cost.
(e) Explain why the activity cost driver rates computed in (a) are different from the rates computed in (b)
20. accting help
9. At the beginning of the period, the Cutting Department budgeted direct labor of $30,000 and supervisor salaries of $20,000 for 4,000 hours of production. The department actually completed 5,000 hours of production. Determine the budget for the department assuming that it uses flexible budgeting?
21. Curtis Hamilton started a new business and completed these transactions during December.
Curtis Hamilton started a new business and completed these transactions during December.
1 Curtis Hamilton transferred $56,000 cash from a personal savings account to a checking account in the name of Hamilton Electric.
2 The company rented office space and paid $800 cash for the December rent.
3 The company purchased $14,000 of electrical equipment by paying $3,200 cash and agreeing to pay the $10,800 balance in 30 days.
5 The company purchased office supplies by paying $900 cash.
6 The company completed electrical work and immediately collected $1,000 cash for these services.
8 The company purchased $3,800 of office equipment on credit.
15 The company completed electrical work on credit in the amount of $4,000.
18 The company purchased $500 of office supplies on credit.
20 The company paid $3,800 cash for the office equipment purchased on December 8.
24 The company billed a client $600 for electrical work completed; the balance is due in 30 days.
28 The company received $4,000 cash for the work completed on December 15.
29 The company paid the assistant’s salary of $1,200 cash for this month.
30 The company paid $440 cash for this month’s utility bill.
31 C. Hamilton withdrew $700 cash from the company for personal use.
Required
1. Arrange the following asset, liability, and equity titles in a table: Cash; Accounts Receivable; Office Supplies; Office Equipment; Electrical Equipment; Accounts Payable; C. Hamilton, Capital; C. Hamilton, Withdrawals; Revenues; and Expenses.
2. Use additions and subtractions to show the effects of each transaction on the accounts in the accounting equation. Show new balances after each transaction.
3. Use the increases and decreases in the columns of the table prepare an income statement, a statement of owner’s equity, and a statement of cash flows—each of these for the current month. Also prepare a balance sheet as of the end of the month.
4. Assume that the owner investment transaction on December 1 was $40,000 cash instead of $56,000 and that Hamilton Electric obtained another $16,000 in cash by borrowing it from a bank. Explain the effect of this change on total assets, total liabilities, and total equity.
22. The following reconciling items are applicable to the bank reconciliation for Ellington Company: ...
Solve for problem BE7-12 please The following reconciling items are applicable to the bank reconciliation for Ellington Company: outstanding checks, bank debit memorandum for service charge, bank credit memorandum for collecting a note for the depositor, and deposits in transit. Indicate how each item should be shown on a bank reconciliation. Using the data in BE7-11, indicate the items that will result in an adjustment to the depositor's records and why the other items do not require adjustment.
23. Complete the full accounting cycle (LO3–3, 3–4, 3–5, 3–6, 3–7) P3–9B The general ledger of...
Complete the full accounting cycle (LO3–3, 3–4, 3–5, 3–6, 3–7)
P3–9B The general ledger of Jackrabbit Rentals at January 1, 2018, includes the following account
balances:
The following is a summary of the transactions for the year:
a. January 12Provide services to customers on account, $62,400.
b. February25Provide services to customers for cash, $75,300.
c. March 19Collect on accounts receivable, $45,700.
d. April 30Issue shares of common stock in exchange for $30,000 cash.
e. June 16Purchase supplies on account, $12,100.
f. July 7 Pay on accounts payable, $11,300.
g. 30Pay salaries for employee work in the current year, September $64,200.
h. 22Pay advertising for the current year, $22,500. November
i. 30Pay $2,900 cash dividends to stockholders. December
Required:
1. Set up the necessary T-accounts and enter the beginning balances from the trial balance. In addition to
the accounts shown, the company also has accounts for Supplies, Salaries Payable, Interest Payable,
Dividends, Service Revenue, Salaries Expense, Advertising Expense, Interest Expense, and Supplies
Expense.
2. Record each of the summary transactions listed above.
3. Post the transactions to the accounts.
4. Prepare an unadjusted trial balance.
5. Record adjusting entries. Accrued interest on the notes payable at year-end amounted to $2,500.
Accrued salaries at year-end amounted to $1,500. Supplies remaining on hand at the end of the year
equal $2,300.
6. Post adjusting entries.
7. Prepare an adjusted trial balance.
8. Prepare an income statement for 2018 and a classified balance sheet as of December 31, 2018.
9. Record closing entries.
10. Post closing entries.
11. Prepare a post-closing trial balance.
24. To include the personal assets and transactions of a business's owner in the records and reports ...
To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the: Objectivity principle. Monetary unit assumption. Business entity assumption. Going-concern assumption. Revenue recognition principle.
25. 31) Which of the following is the operating system designed by Apple? A) Android B) Unix C) Linux D)
31) Which of the following is the operating system designed by Apple?
A) Android
B) Unix
C) Linux
D) Mac OS
32) ________ is a version of Unix that was developed by an open source community.
A) Symbian OS
B) Android
C) Linux
D) Mac OS
33) Linux is an example of a(n) ________.
A) open source operating system
B) mobile operating system
C) user community
D) application software that creates documents
34) Which of the following is a mobile operating system licensed by Google?
A) Blackberry OS
B) Symbian
C) Android
D) Windows mobile
35) When you buy an operating system for your personal computer, you are actually buying a software ________.
A) copyright
B) upgrade
C) patent
D) license
36) Virtualization is the process by which ________.
A) a single server is used to host the operations of a work station
B) many computers are used to control a server
C) one computer hosts the appearance of many computers
D) a single operating system is licensed for multiple computers
37) With ________, a personal computer, such as a desktop or portable computer, hosts several different operating systems.
A) PC virtualization
B) parallel computing
C) cloud computing
D) grid computing
38) Ronald runs both Windows 7 and Linux on his desktop computer. This process is called ________.
A) PC virtualization
B) server virtualization
C) cloud computing
D) desktop virtualization
39) With server virtualization, a server computer hosts ________.
A) multiple operating systems
B) one or more server computers
C) virtual host operating systems
D) databases that contain information about servers
40) Programs that perform business functions such as general ledger and accounting are known as ________.
A) application software
B) system software
C) firmware
D) operating systems
26. A firm has total assets of $2,000,000. It has $900,000 in long-term debt. The stockholders equity is
A firm has total assets of $2,000,000. It has $900,000 in long-term debt. The stockholders equity is $900,000. What is the total debt to asset ratio?
A firm has total assets of 2 000 000 It has 900 000 in
27. Prepare journal entries to record the following transactions and events that occurred in the vill...
prepare journal entries to record the following transactions and events that occurred in the village of Kowitt Gorge during the calendar year 2019:
1. The village commissioners adopted the followinf budgets:
Estimated revenues:
Property taxes 1850000
All other revenues 300000
Total revenues 2150000
Appropriations:
All deparments other than police 1000000
Police-Salaries 600000
Police- fringe benefits 450000
Police -supplies 80000
Total appropriations 2130000
2. The village received, in cash, property taxes of 1840000 and all other revenues of $295000.
3. The village made cash payments, charging the following appropriations:
All departments other than police 1000000
Police- salaries 595000
Police- fring benefits 390000
4. The administrator of fringe benefits received an invoice for police employee health insurance in the amount of $ 95000, together with letter from the insurance provider, explaining thet the large increase was caused by a change in federal laws. The invoice could not be paid because the police- fringe benefits appropriation had a balance of only $ 60000( appropriation of $ 450000 minus expenditures in item 3 of $ 390000). As a result, the village commisioners amended the budget as follows:
Increase: Appropriation for police- fringe benefits $35000
Decrease: Appropriations for police- salaries 5000
Decrease: appropriation for police- supplies 25000
Use of fund balance 5000
5. The village paid the invoice for $ 95000, referred to in item 4 above, chrging the appropriation for police - fringe benefits.
6. The police department placed PO 2019a for firearms in the amounts of 30000 and PO 2019b for uniforms in the amount of $ 20000 , all charged to the approciation for police - supplies.
7. After receiving PO 2019a, the supplier notified the police department that a change in the desing of the weapons would increase the cost to $ 32000. The department sent the suppier an amended PO, increasing it by $ 2000.
8. The police department received the uniform ordered on PO 2019b, together with an invoice for $ 20000. The department approved the invoice payment.
28. Smooth Chin Device Company The Smooth Chin Device Company is a manufacturer of high-¬-end electric..
Smooth Chin Device Company
The Smooth Chin Device Company is a manufacturer of high-¬-end electric razors. These razors are produced using a machine-¬-paced process. For each razor, a tray with components enters the process at the beginning of a conveyor belt. The tray then passes through the six steps (consisting of various tasks) explained in the table below. Workers perform the assembly operations on the moving tray. The last step consists of an inspection of the then fully assembled razor. The activity times of the process are as follows:
Station Tasks
A
Preparation 1. Lay out chassis [12 sec]
2. Lay out screws [15 sec]
3. Lay out all other components [17 sec]
Total time for A: 44 sec
B
Assembly 4. Perform task AS1 [10 sec]
5. Perform task AS2 [10 sec]
6. Perform task AS3 [20 sec]
Total time for B: 40 sec
C
Assembly 7. Perform task AS4 [14 sec]
8. Perform task AS5 [16 sec]
9. Perform task AS6 [20 sec]
10. Perform task AS7 [5 sec]
Total time for C: 55 sec
D
Assembly 11. Perform task AS8 [30 sec]
12. Perform task AS9 [30 sec]
Total time for D: 60 sec
E
Assembly 13. Perform task AS10 [11 sec]
14. Perform task AS11 [19 sec]
15. Perform task AS12 [20 sec]
Total time for E: 50 sec
F
Inspection 16. Inspect electrics [20 sec]
17. Inspect aesthetics [20 sec]
Total time for F: 40 sec
There are six workers, one at each of the six stations (A-¬-F). They begin their workday at 8:00 am and work steadily until 4:00 pm. (They are replaced with other workers for breaks and lunches, 2 but the production is not slowed or stopped during these times.) Their hourly wage rate is $25 per hour. For the first five questions, you can assume unlimited demand.
SC1. Which station is the bottleneck of the process?
SC2. What is the process capacity (you can ignore any start-¬-up or empty system effects), in razors/hour?
SC3. What are the direct labor costs (you can ignore any start-¬-up or empty system effects) associated with producing one razor, in dollars?
SC4. What is the average labor utilization of the six workers?
29. E2-9 (Accounting Principles—Comprehensive) Presented below are a number of business transactions...
E2-9 (Accounting Principles—Comprehensive) Presented below are a number of business transactions that occurred during the current year for Gonzales, Inc. Instructions In each of the situations, discuss the appropriateness of the journal entries in terms of generally accepted accounting principles.
(a) The president of Gonzales, Inc. used his expense account to purchase a new Suburban solely for personal use. The following journal entry was made. Miscellaneous Expense 29,000 Cash 29,000
(b) Merchandise inventory that cost $620,000 is reported on the balance sheet at $690,000, the expected selling price less estimated selling costs. The following entry was made to record this increase in value. Inventory 70,000 Sales Revenue 70,000
(c) The company is being sued for $500,000 by a customer who claims damages for personal injury apparently caused by a defective product. Company attorneys feel extremely confident that the company will have no liability for damages resulting from the situation. Nevertheless, the company decides to make the following entry. Loss from Lawsuit 500,000 Liability for Lawsuit 500,000
(d) Because the general level of prices increased during the current year, Gonzales, Inc. determined that there was a $16,000 understatement of depreciation expense on its equipment and decided to record it in its accounts. The following entry was made. Depreciation Expense 16,000 Accumulated Depreciation —Equipment 16,000
(e) Gonzales, Inc. has been concerned about whether intangible assets could generate cash in case of liquidation. As a consequence, goodwill arising from a purchase transaction during the current year and recorded at $800,000 was written off as follows. Retained Earnings 800,000 Goodwill 800,000
(f) Because of a “fire sale,” equipment obviously worth $200,000 was acquired at a cost of $155,000. The following entry was made. Equipment 200,000 Cash 155,000 Sales Revenue 45,000
