Elevate Your Academic Performance: Expert Guidance for Accounting Students
31) ________ unleash powerful economies of scale and result in declines in manufactured computer products.
A) Internet and Web technologies
B) Technology standards
C) Linux and open-source software
D) Client/server technologies
32) The multitasking, multi-user, operating system developed by Bell Laboratories that operates on a wide variety of computing platforms is
A) Unix.
B) Linux.
C) OS X.
D) COBOL.
33) The network standard for connecting desktop computers into local area networks that enabled the widespread adoption of client/server computing and local area networks and further stimulated the adoption of personal computers is
A) TCP/IP.
B) COBOL.
C) Ethernet.
D) ASCII.
34) Which of the following is a leading networking hardware provider?
A) Dell
B) Cisco
C) Seagate
D) IBM
35) Software that manages the resources of the computer is called
A) operating system software.
B) application software.
C) data management software.
D) network software.
36) A SAN is a ________ network.
A) server area
B) storage area
C) scalable architecture
D) service-oriented architecture
37) As referred to in the text, legacy systems are
A) traditional mainframe-based business information systems.
B) electronic spreadsheets used on a PC.
C) any pre-1990 Wintel systems.
D) systems found on older ASPs.
38) Legacy systems are still used because they
A) can only be run on the older mainframe computers.
B) are too expensive to redesign.
C) integrate well using new Web services technologies.
D) contain valuable data that would be lost during redesign.
39) Which of the following is not an example of the emerging mobile computing platforms?
A) tablets
B) the Kindle
C) cell phones
D) CRM
40) All of the following are current hardware platform trends except
A) green computing.
B) virtualization.
C) cloud computing.
D) Unix.
33. River Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 per
River Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent. The current yield on these bonds is 7.55 percent. How many years do these bonds have left until they mature?
34. Professor John Morton has just been appointed chairperson of
Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department’s cost records, Professor Morton has found the following total cost associated with Finance 101 over the last several terms:
Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes.
Required:
1. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101.
2. Express the cost data derived in (1) above in the linear equation form Y = a + bX.
3. Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer eight sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. Can you see any problem with using the cost formula from (2) above to derive this total cost figure? Explain.
4. Prepare a scattergraph and fit a straight line to the plotted points using the cost formula expressed in (2)above.
35. On January 1, 2014, Crown Company sold property to Leary Company. There was no established exchan...
On January 1, 2014, Crown Company sold property to Leary Company. There was no established exchange price for the property, and Leary gave Crown a $400,000 zero-interest-bearing note payable, promising 5 equal annual installments of $80,000, with the first payment due December 31, 2014. The prevailing rate of interest for a note of this type is 9%. What is the carrying value of the notes payable at 12/31/14, after the first payment is made (assuming that the effective-interest method is used)? Choose the amount closest to your own calculation. a. $320,000 b. $311,172 c. $259,177 d. $348,005
The answer is not A. This is all the information provided in the question
Show transcribed image text Onslow Co. purchases a used machine for exist178,000 cash on January 2 and readies it for use the next day at a exist2, 840 cost. On January 3. it is installed on a required operating platform costing exist1, 160. and it is further readied for operations. The company predicts the machine will be used for six years and have a exist14,000 salvage value. Depreciation is to be charged on a straight-line basis. On December 31. at the end of its fifth year in operations, it is disposed of. Prepare journal entries to record the machine's purchase and the costs to ready and install it Cash is paid for all costs incurred Record the purchase of a used machine for exist178,000 cash.
37. Closing down divisions. Belmont Corporation has four operating d
Closing down divisions. Belmont Corporation has four operating divisions. The budgeted revenues and expenses for each division for 2011 follows:
Further analysis of costs reveals the following percentages of variable costs in each division:
Closing down any division would result in savings of 40% of the fixed costs of that division.
Top management is very concerned about the unprofitable divisions (A and B) and is considering closing them for the year.
Required
1. Calculate the increase or decrease in operating income if Belmont closes division A.
2. Calculate the increase or decrease in operating income if Belmont closes division B.
3. What other factors should the top management of Belmont consider before making adecision?
38. The Dougherty Furniture Company manufactures tables. In March the two production departments had...
The Dougherty Furniture Company manufactures tables. In March the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labour-hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500 respectively. For Job A the actual costs incurred in the two departments were as follows: Department 100 Department 200 Direct materials purchased on account $110,000 $177,500 Direct materials used 32,500 13,500 Direct manufacturing labour 52,500 53,500 Indirect manufacturing labour 11,000 9,000 Indirect materials used 7,500 4,750 Lease on equipment 16,250 3,750 Utilities 1,000 1,250 Job A incurred 800 machine-hours in Department 100 and 300 manufacturing labour-hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production. Required: a. Determine the budgeted manufacturing overhead rate for each department. b. Prepare the necessary journal entries to summarise the March transactions for Department 100. c. What is the total cost of Job A?
Which of the following techniques is not meant for labour cost control? a. Budgetary control b. Standard costing c.ABC analysis d. Ratio analysis
40. 54. Which of the following would not be considered an internal user of accounting data for the GHI..
54. Which of the following would not be considered an internal user of accounting data for the GHI Company?
a. President of the company.
b. Production manager.
c. Merchandise inventory clerk.
d. President of the employees' labor union.
55. Which of the following would not be considered an external user of accounting data for the GHI Company?
a. Internal Revenue Service Agent.
b. Management.
c. Creditors.
d. Customers.
56. Which of the following would not be considered internal users of accounting data for a company?
a. The president of a company.
b. The controller of a company.
c. Creditors of a company.
d. Salesmen of the company.
57. Which of the following is an external user of accounting information?
a. Labor unions.
b. Finance directors.
c. Company officers.
d. Managers.
58. Which one of the following is not an external user of accounting information?
a. Regulatory agencies.
b. Customers.
c. Investors.
d. All of these are external users.
59. Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process?
a. Identification.
b. Communication.
c. Recording.
d. Analysis.
60. The origins of accounting are generally attributed to the work of
a. Christopher Columbus.
b. Abner Doubleday.
c. Luca Pacioli.
d. Leonardo da Vinci.
61. Financial accounting provides economic and financial information for all of the following except
a. creditors.
b. investors.
c. managers.
d. other external users.
62. The final step in solving an ethical dilemma is to
a. identify and analyze the principal elements in the situation.
b. recognize an ethical situation.
c. identify the alternatives and weigh the impact of each alternative on stakeholders.
d. recognize the ethical issues involved.
63. The first step in solving an ethical dilemma is to
a. identify and analyze the principal elements in the situation.
b. identify the alternatives.
c. recognize an ethical situation and the ethical issues involved.
d. weigh the impact of each alternative on various stakeholders.
41. Which of the following is correct? The break-even point occurs on the CVP graph where
Which of the following is correct? The break-even point occurs on the CVP graph where:
A) total profit equals total expenses.
B) total profit equals total fixed expenses.
C) total contribution margin equals total fixed expenses.
D) total variable expenses equal total contribution margin.
42. Using the accounting equation for transaction analysis Christopher Turner started a new business,...
Using the accounting equation for transaction analysis
Christopher Turner started a new business, Turner Gymnastics, and completed the
following transactions during December:
Dec. 1 Christopher contributed $21,000 cash in exchange for capital.
2 Received $3,500 cash from customers for services performed.
5 Paid $200 cash for office supplies.
9 Performed services for a customer and billed the customer for
services rendered, $2,000.
10 Received $300 bill for utilities due in two weeks.
15 Paid for advertising in the local paper, $325.
20 Paid utility bill received on Dec. 10.
25 Collected cash from customer billed on Dec. 9.
28 Paid rent for the month, $2,000.
28 Paid $1,250 to assistant for wages.
30 Received $1,800 cash from customers for services performed.
31 Christopher withdrew $5,000 cash from the business.
Analyze the effects of the transactions on the accounting equation of Turner
Gymnastics using the formular Assets=Liabilities+Equity
Total Assets $19,425
Ravena Labs., Inc. makes a single product which has the following standards:
Direct Materials 2.5 ounces at $20 per ounce
Direct Labor 1.4 hours at $12.50 per hour
Var. Manuf. Overhead 1.4 hours at ? per hour
Variable Manuf. Overhead is applied on the basis of direct labor hours. The following data are available for October:
3750 units of compound were produced during the month.
There were no beginning direct materials inventory
The ending direct materials inventory was 2000 ounces
Direct materials purchased: 12000 ounces for $225,000
Direct labor hours worked: 5600 hours at a cost of $67,200
Variable Manufacturing Overhead costs incurred amounted to $18,200
Variable manufacturing overhead applied to products: $18,375
The variable overhead spending variance for October is:
44. Stephens Inc. is a wholesaler of photography equipment. The activity for the VTC cameras during July is
Stephens Inc. is a wholesaler of photography equipment. The activity for the VTC cameras during July is
shown below:
Balance/
Date Transaction Units Cost
July 1 Inventory 2,000 $36.00
7 Purchase 3,000 37.00
12 Sales 3,600
21 Purchase 5,000 37.88
22 Sales 3,800
29 Purchase 1,600 38.11
If Stephens Inc uses movi...
45. His window shows your responses and what was marked correct and incorrect from your previous atte...
his window shows your responses and what was marked correct and incorrect from your previous attempt. 10 Award: 8.54 out of 9.09 points You did not receive full credit for 1. Prepare the journal entry to record Benson's withdrawal from the partnership under each of the following independent assumptions. (Do not round intermediate calculations.) Benson (a) sells her interest to North for $160,000 after Meir and Lau approve the entry of North as a partner (b) gives her interest to a son-in-law, Schmidt, and thereafter Meir and Lau accept Schmidt as a partner (c) is paid $138,000 in partnership cash for her equity (d) is paid S214,000 cash for her equity; and (e) is paid $30,000 in partnership cash plus equipment recorded on the partnership books at $70,000 less its accumulated depreciation of$23.200 Answer is complete but not entirely correct Transaction General Journal Debit Credit (a) Benson, Capital 160,000X North, Capital 160,000 (b) Benson, Capital 138,000 Schmidt, Capital 138,000 (c) Benson, Capital 138,000 Cash 138,000 (d) Benson, Capital 138.000 Meir, Capital 28,500 Lau, Capital 47,500 Cash 214,000 (e) Benson, Capital 138,000 Accumulated depreciation Equipment 23,200 Meir, Capital 22,950 Lau, Capital 38,250 Equipment 70,000 Cash 30,000
46. 1. What are the two types of events that affect an entity? Describe each. 2. What is the...
1. What are the two types of events that affect an entity? Describe each.
2. What is the significance of source documents to the recording process? Give two examples of source documents.
3. What are four different forms of cash?
4. How does an account receivable differ from a note receivable?
47. 1) When originally purchased, a vehicle costing $23,580 had an estimated useful life of 8 and an ...
1) When originally purchased, a vehicle costing $23,580 had an estimated useful life of 8 and an estimated salvage value of $1,900. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
$5,588.00.
$2,710.00.
$5,420.00.
$2,878.00.
$10,840.00.
2) Smiles Entertainment had the following accounts and balances at December 31:
Account | Debit | Credit | |||
Cash | $ | 12,100 | |||
Accounts Receivable | 2,420 | ||||
Prepaid Insurance | 3,240 | ||||
Supplies | 1,420 | ||||
Accounts Payable | $ | 6,050 | |||
Common Stock | 6,160 | ||||
Service Revenue | 9,100 | ||||
Salaries Expense | 710 | ||||
Utilities Expense | 1,420 | ||||
Totals | $ | 21,310 | $ | 21,310 | |
Using the information in the table, calculate the company's reported net income for the period.
$1,520.
$5,550.
$12,920.
$4,630.
$6,970.
3) Torino Company has 2,600 shares of $20 par value, 5.5% cumulative and nonparticipating preferred stock and 26,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $2,500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:
$360.
$3,220.
$2,500.
$5,720.
$2,860.
4) In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:
Net income for the year was | $ | 59,000 |
Accounts payable decreased by | $ | 25,000 |
Accounts receivable increased by | $ | 32,000 |
Inventories increased by | $ | 12,000 |
Cash dividends paid were | $ | 15,400 |
Depreciation expense was | $ | 27,000 |
Net cash provided by operating activities was:
$37,000.
$51,000.
$75,600.
$141,000.
$17,000.
5) A company issues 10% bonds with a par value of $129,000 at par on April 1, which is 4 months after the most recent interest date. The cash received for accrued interest on April 1 by the bond issuer is:
$7,525.
$1,075.
$8,600.
$2,150.
$4,300.
The following expenditures (in thousands) relating to plant assets were made by Lee Jung Ltd. during the first 2 months of 2017. 1. Paid W5,000 of accrued taxes at time plant site was acquired. 2. Paid W 400 insurance to cover possible accident loss on new factory machinery while the machinery was in transit. 3. Paid W 850 sales taxes on new delivery truck. 4. Paid W 17,500 for parking lots and driveways on new plant site. 5. Paid W 310 to have company name and advertising slogan painted on new delivery truck. 6. Paid W 8,000 for installation of new factory machinery. 7. Paid W 900 for one-year accident insurance policy on new delivery truck. 8. Paid W 90 motor vehicle license fee on the new truck. Instructions (a) Explain the application of the historical cost principle in determining the acquisition cost of plant assets. (b) List the numbers of the foregoing transactions, and opposite each indicate the account title to which each expenditure should be debited.
49. JLR Enterprises provides consulting services throughout California and uses a job-order costing...
JLR Enterprises provides consulting services throughout California and uses a job-order costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR, but not identifiable with specific clients, are charged to jobs by using a predetermined overhead application rate. Clients are billed for directly chargeable costs, overhead, and a markup. JLRs director of cost management, Brent Dean, anticipates the following costs for the upcoming year: Cost Professional staff salaries Administrative support staff Travel Photocopying Other operating costs
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JLR Enterprises provides consulting services throughout California and uses a job-order costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR, but not identifiable with specific clients, are charged to jobs by using a predetermined overhead application rate. Clients are billed for directly chargeable costs, overhead, and a markup. JLR’s director of cost management, Brent Dean, anticipates the following costs for the upcoming year: Cost Percentage of Cost
Directly Traceable
to Client Professional staff salaries$2,500,000 80% Administrative support staff300,000 60% Travel250,000 90% Photocopying50,000 90% Other operating costs100,000 50% Total$3,200,000 The firm’s partners desire to make a $640,000 profit for the firm and plan to add a percentage markup on total cost to achieve that figure. On March 10, JLR completed work on a project for Martin Manufacturing. The following costs were incurred: professional staff salaries, $41,000; administrative support staff, $2,600; travel, $4,500; photocopying, $500; and other operating costs, $1,400. .
Calculate the predetermined overhead rate. The rate is based on total costs traceable to client jobs.(Omit the "%" sign in your response.)
Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of January 2016, the number of gadgets purchased and sold was as follows:
Assume the January 10 units were sold on account for $3 each, and the January 20 units were sold on account for $5 each.
*for specific identification, sold 50 units of opening inventory and 150 units of purchase #2
for specific identification, sold 100 units of purchase #1 and 300 units from purchase #3
Required:
1. Complete the inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions:
a. FIFO
b. Specific identification
c. Weighted average.
2. Prepare the journal entries required to record purchases and sales using the FIFO inventory cost flow assumption.
3. Calculate the sum of cost of goods sold and ending inventory balances under each of the three assumptions. Explain the results.