Elevate Your Grades: Top-notch Accounting Assignment

Published: 1 year ago

Elevate Your Grades: Top-notch Accounting Assignment

30. What are the four levels of activity in the pyramid representing the business organization?

1. What are the four levels of activity in the pyramid representing the business organization?

Distinguish between horizontal and vertical flows of information.

2. Distinguish between natural and artificial systems.

3. What are the elements of a system?

4. What is system decomposition and subsystem interdependency? How are they related?

31. 1. Which of the following will increase the net present value of a project

1. Which of the following will increase the net present value of a project

A) An increase in the initial investment.

B) A decrease in annual cash inflows.

C) An increase in the discount rate.

D) A decrease in the discount rate.

2. Which of the following is true

A) The form, content, and frequency of variance reports vary considerably among companies.

B) The form, content, and frequency of variance reports do not vary among companies.

C) The form and content of variance reports vary considerably among companies, but the frequency is always weekly.

D) The form and content of variance reports are consistent among companies, but the frequency varies.

3. All of the following are involved in the capital budgeting evaluation process except a company s

A) board of directors.

B) capital budgeting committee.

C) Officers.

D) Stockholders.

4. The primary capital budgeting method that uses discounted cash flow techniques is the

A) net present value method.

B) cash payback technique.

C) annual rate of return method.

D) profitability index method.

32. Martin Towing Company is at the end of its accounting year ending December 31 The following date ...

Show transcribed image text Martin Towing Company is at the end of its accounting year ending December 31 The following date that must be considered were developed from the company's records and related documents: On January 1 of the current year, the company purchased a new hauling van at a cash cost of $25, 200 Depreciation estimated at $2, 600 for the year has not been recorded for the current year, During the current year, office supplies amounting to $950 were purchased for cash and debited In full to Supplies, At the end of last year, the count of supplies remaining on hand was $350. The Inventory of supplies counted on hand at the end of the current year was $290. On December 31 of the current year, Lanie's Garage completed repairs on one of the company's trucks at a cost of $1, 010; the amount is not yet recorded by Martin and by agreement will be paid during January of next year. On December 31 of the current year, property taxes on land owned during the current year were estimated at $1, 400. The taxes have not been recorded and will be paid in the next year when billed. On December 31 of the current year, the company completed towing service for an out of state company for $7, 300 payable by the customer within 30 days. No cash has been collected, and no Journal entry has been made for this transaction. On July 1 of the current year, a three year Insurance premium on equipment In the amount of $1, 140 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1 of the current year. On October 1 of the current year, the company borrowed $10, 800 from the local bank on a one year, 13 percent note payable. The principal plus interest is payable at the end of 12 months. The Income before any of the adjustments or income taxes was $40,000. The company's federal Income tax rate is 30 percent.

33. Tresh, Inc. had the following bank reconciliation at March 31, 2012: Balance per bank statement, ...

Tresh, Inc. had the following bank reconciliation at March 31, 2012:

Balance per bank statement, 3/31/12 $37,200

Add: Deposit in transit 10,300

                                     47,500

Less: Outstanding checks 12,600

Balance per books, 3/31/12 $34,900

Data per bank for the month of April 2012 follow:

Deposits $43,700

Disbursements 49,700

All reconciling items at March 31, 2012 cleared the bank in April. Outstanding checks at April 30, 2012 totaled $6,000. There were no deposits in transit at April 30, 2012. What is the cash balance per books at April 30, 2012?

a. $25,200

b. $28,900

c. $31,200

d. $35,500

Please show work

34. cost - variance activity

Which department is customarily held responsible for an unfavorable materials quantity variance?



a. quality control

b. purchasing

c. engineering

d. production

35. Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method) Peanut Company

Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method)

Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000.

Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of January 1, 20X8, are as follows:

Required

a. Prepare the journal entry on Peanut’s books for the acquisition of Snoopy on January 1, 20X8.

b. Prepare a consolidation worksheet on the acquisition date, January 1, 20X8, in good form.

c. Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8, in good form.

36. On October 1, 2016, Stokes Company paid Eastport Rentals $4,800 for a 12-month lease on warehouse...

On October 1, 2016, Stokes Company paid Eastport Rentals $4,800 for a 12-month lease on warehouse space. Required a. Record the deferral and the related December 31, 2016, adjustment for Stokes Company in the accounting equation. b. Record the deferral and the related December 31, 2016, adjustment for Eastport Rentals in the accounting equation.

37. Six measures of solvency or profitability The balance sheet for Garcon Inc. at the end of the...

Six measures of solvency or profitability

The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:

Income before income tax was $3,000,000, and income taxes were $1,200,000 for the cur- rent year. Cash dividends paid on common stock during the current year totaled $1,200,000. The common stock was selling for $32 per share at the end of the year. Determine each of the following: (a) number of times bond interest charges are earned, (b) number of times preferred dividends are earned, (c) earnings per share on common stock, (d) price-earnings ratio, (e) dividends per share of common stock, and (f) dividend yield. Round to one decimal place, except earnings per share, which should be rounded to two decimal   places.

38. Which of the following is unlikely to be classified as a fixed cost with respect to the number of...

Which of the following is unlikely to be classified as a fixed cost with respect to the number of units produced and sold?

A) Property taxes on a headquarters building.

B) Legal department salaries.

C) Cost of leasing the company"s mainframe computer.

D) Production supplies.

39. EXERCISE 11A-1 Collyer Products Inc. has a Valve Division that manufactures and sells a standard ...

Collyer Products Inc. has a Valve Division that manufactures and sells a standard valve as follows: The company has a Pump Division that could use this valve in the manufacture of one of its pumps. The Pump Division is currently purchasing 10,000 valves per year from an overseas supplier at a cost of $14 per valve.

Required:

Assume that the Valve Division has ample idle capacity to handle all of the Pump Division's needs. What is the acceptable range, if any, for the transfer price between the two divisions?

Assume that the Valve Division is selling all that it can produce to outside customers on the intermediate market. What is the acceptable range, if any, for the transfer price between the two divisions?

Assume again that the Valve Division is selling all that it can produce to outside customers on the intermediate market. Also assume that $2 in variable expenses can be avoided on transfers within the company, due to reduced selling costs. What is the acceptable range, if any, for the transfer price between the two divisions?

Assume the Pump Division needs 20,000 special high-pressure valves per year. The Valve Division's variable costs to manufacture and ship the special valve would be $10 per unit. To produce these special valves, the Valve Division would have to reduce its production and sales of regular valves from 100,000 units per year to 70,000 units per year. As far as the Valve Division is concerned, what is the lowest acceptable transfer price?

PROBLEM 11A-10

Wallen Products Inc. has just purchased a small company that specializes in the manufacture of electronic tuners that are used as a component part of LCD TVs. Wallen Products is a decentralized company, and it will treat the newly acquired company as an autonomous division with full profit responsibility. The new division, called the Tuner Division, has the following revenue and costs associated with each tuner that it manufactures and sells:

Wallen Products also has an Assembly Division that assembles TVs. This division is currently purchasing 30,000 tuners per year from an overseas supplier at a cost of $20 per tuner, less a 10% purchase discount. The president of Wallen Products is anxious to have the Assembly Division begin purchasing its tuners from the newly acquired Tuner Division in order to “keep the profits within the corporate family.”

Required:

For (1) and (2) below, assume that the Tuner Division can sell all of its output to outside TV manufacturers at the normal $20 price.

Are the managers of the Tuner and Assembly Divisions likely to voluntarily agree to a transfer price for 30,000 tuners each year? Why or why not?

If the Tuner Division meets the price that the Assembly Division is currently paying to its overseas supplier and sells 30,000 tuners to the Assembly Division each year, what will be the effect on the profits of the Tuner Division, the Assembly Division, and the company as a whole?

For (3) through (6) below, assume that the Tuner Division is currently selling only 60,000 tuners each year to outside TV manufacturers at the stated $20 price.

Are the managers of the Tuner and Assembly Divisions likely to voluntarily agree to a transfer price for 30,000 tuners each year? Why or why not?

Suppose that the Assembly Division's overseas supplier drops its price (net of the purchase discount) to only $16 per tuner. Should the Tuner Division meet this price? Explain. If the Tuner Division does not meet this price, what will be the effect on the profits of the company as a whole?

Refer to (4) above. If the Tuner Division refuses to meet the $16 price, should the Assembly Division be required to purchase from the Tuner Division at a higher price for the good of the company as a whole? Explain.

Capacity in units Selling price to outside customers onthe intermediate market. Variable costs per unit Fixed costs per unit (basedoncapacty)........................................... 100,000 $15

40. Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per u...

Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available:

?

?

What is the differential cost from the acceptance of the offer?

41. I need Cost of Goods Sold please Pro-Weave manufactures stadium blankets by passing the products ...