Achieve Distinction: Support for Accounting Assignments

Published: 11 months ago

Achieve Distinction: Support for Accounting Assignments

1. Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years,...

Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the

years, Peyton has gained a local reputation for knowledge of music from classical to rap

and the ability to put together sets of recordings that appeal to all ages.

During the last several months, Peyton served as a guest disc jockey on a local radio

station. In addition, Peyton has entertained at several friends’ parties as the host deejay.

On June 1, 2014, Peyton established a proprietorship known as PS Music. Using an

extensive collection of music MP3 files, Peyton will serve as a disc jockey on a fee basis

for weddings, college parties, and other events. During June, Peyton entered into the

following transactions:

June 1. Deposited $4,000 in a checking account in the name of PS Music.

2. Received $3,500 from a local radio station for serving as the guest disc jockey for

June.

2. Agreed to share office space with a local real estate agency, Pinnacle Realty. PS

Music will pay one-fourth of the rent. In addition, PS Music agreed to pay a portion

of the salary of the receptionist and to pay one-fourth of the utilities. Paid

$800 for the rent of the office.

4. Purchased supplies from City Office Supply Co. for $350. Agreed to pay $100

within 10 days and the remainder by July 5, 2014.

6. Paid $500 to a local radio station to advertise the services of PS Music twice daily

for two weeks.

8. Paid $675 to a local electronics store for renting digital recording equipment.

12. Paid $350 (music expense) to Cool Music for the use of its current music demos

to make various music sets.

13. Paid City Office Supply Co. $100 on account.

16. Received $300 from a dentist for providing two music sets for the dentist to play

for her patients.

22. Served as disc jockey for a wedding party. The father of the bride agreed to pay

$1,000 in July.

25. Received $500 for serving as the disc jockey for a cancer charity ball hosted by

the local hospital.

29. Paid $240 (music expense) to Galaxy Music for the use of its library of music

demos.

30. Received $900 for serving as PS disc jockey for a local club’s monthly dance.

30. Paid Pinnacle Realty $400 for PS Music’s share of the receptionist’s salary for

June.

30. Paid Pinnacle Realty $300 for PS Music’s share of the utilities for June.

30. Determined that the cost of supplies on hand is $170. Therefore, the cost of supplies

used during the month was $180.

30. Paid for miscellaneous expenses, $415.

30. Paid $1,000 royalties (music expense) to National Music Clearing for use of various

artists’ music during the month.

30. Withdrew $500 of cash from PS Music for personal use.

Instructions

1. Indicate the effect of each transaction and the balances after each transaction, using

the following tabular headings:

Assets 5 Liabilities 1 Owner’s Equity

Accts.

Cash + Rec. + Supplies =

Accounts

Payable +

Peyton

Smith,

Capital –

Peyton

Smith,

Drawing +

Fees

Earned –

Music

Exp. –

Office

Rent

Exp. –

Equipment

Rent

Exp. –

Advertising

Exp. –

Wages

Exp. –

Utilities

Exp. –

Supplies

Exp. –

Misc.

Exp.

2. Prepare an income statement for PS Music for the month ended June 30, 2014.

3. Prepare a statement of owner’s equity for PS Music for the month ended June 30,

2014.

4. Prepare a balance sheet for PS Music as of June 30, 201

2. organized Manis Architects on January 1, 2016. During the month, Manis Architects completed the...

organized Manis Architects on January 1, 2016. During the month,  Manis  Architects  completed  the  following   transactions:

a.     Issued common stock to Kimberly Manis in exchange for $18,000.

b.     Paid January rent for office and workroom, $1,950.

c.     Purchased used automobile for $28,500, paying $5,700 cash and giving a note payable for the remainder.

d.     Purchased office and computer equipment on account, $4,500.

e.     Paid cash for supplies, $1,875.

f.      Paid cash for annual insurance policies, $3,600.

g.     Received cash from client for plans delivered, $13,650.

h.     Paid cash for miscellaneous expenses, $2,600.

i.       Paid cash to creditors on account, $3,000.

j.      Paid installment due on note payable, $950.

k.     Received invoice for blueprint service, due in February, $3,750.

l.       Recorded fees earned on plans delivered, payment to be received in February, $21,900.

m.   Paid salary of assistants, $4,100.

n.     Paid gas, oil, and repairs on automobile for January, $1,300.

instructions

1.    Record these transactions directly in the following T accounts, without journalizing: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Automobiles, Equipment, Notes Pay- able, Accounts Payable, Common Stock, Professional Fees, Salary Expense, Blueprint Expense, Rent Expense, Automobile Expense, Miscellaneous Expense. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction.

2.    Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

3.    Prepare an unadjusted trial balance for Manis Architects as of January 31, 2016.

4.    Determine the net income or net loss for January.

3. The Aguila Company is to submit bid on the production of 10,000 ceramic salad bowls. It is...

The Aguila Company is to submit bid on the production of 10,000 ceramic salad bowls. It is estimated that the cost of materials for Molding Dept and Finishing Dept will be $7,500 and $10,100 respectively. Factory overhead is applied at $5 per direct labor hour in the Molding Dept and at 120% of the direct labor cost in the Finishing Dept. It is estimated that 800 direct labor hours will be required in the Molding Dept and that direct labor cost in the Finishing Dept will be $4,300. The company wishes a bid price consisting of a mark up 40% of the total production costs. Labor cost is uniform at $5 per hour.

Required:1. Estimated cost to produce2. Estimated prime cost3. Estimated conversion cost4. Bid price

4. Acc423-The trial balance of the Sterling Company shown below does not balance.

he trial balance of the Sterling Company shown below does not balance.

STERLING COMPANY

Trial Balance

May 31, 2008

Your review of the ledger reveals that each account has a normal balance. You also discover the following errors.

(a) The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Property Tax Expense were each understated $100.

(b) Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $6,960, respectively.

(c) A debit posting to Salaries Expense of $200 was omitted.

(d) A $1,000 cash dividend was debited to Common Stock for $1,000 and credited to Cash for $1,000.

(e) A $520 purchase of supplies on account was debited to Equipment for $520 and credited to Cash for $520.

(f) A cash payment of $450 for advertising was debited to Advertising Expense for $45 and credited to Cash for $45.

(g) A collection from a customer for $210 was debited to Cash for $210 and credited to Accounts Payable for $210.

Instructions:

Prepare a correct trial balance. Note that the chart of accounts includes the following: Dividends, and Supplies. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.

5. Single plantwide factory overhead rate Spotted Cow Dairy Company manufactures three...

Single plantwide factory overhead   rate

 

Spotted Cow Dairy Company manufactures three products—whole milk, skim milk, and cream—in two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $299,700.

The three products consume both machine hours and direct labor hours in the two production departments as follows:

Total                                                                                                 1,620                                                 2,700

Instructions

1 . Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours.

2 . Determine the product factory overhead costs, using (a) the direct labor hour plantwide factory overhead rate and (b) the machine hour plantwide factory overhead rate.

6. Bud's Place recorded the following data: &nb...

Bud's Place recorded the following data:

The weighted average unit cost of the inventory at January 31 is:

7. 21) Which of the following statements best describes the business value of improved decision making?

21) Which of the following statements best describes the business value of improved decision making?

A) Improved decision making creates better products.

B) Improved decision making results in a large monetary value for the firm as numerous small daily decisions affecting efficiency, production, costs, and more add up to large annual values.

C) Improved decision making enables senior executives to more accurately foresee future financial trends.

D) Improved decision making strengthens customer and supplier intimacy, which reduces costs.

22) When there is no well-understood or agreed-on procedure for making a decision, it is said to be

A) undocumented.

B) unstructured.

C) documented.

D) semistructured.

23) The type of decision that can made by following a definite procedure is called a(n) ________ decision.

A) structured

B) unstructured

C) semistructured

D) procedural

24) Which type of decision is deciding whether to introduce a new product line?

A) structured

B) unstructured

C) recurring

D) nonrecurring

25) Which type of decision is calculating gross pay for hourly workers?

A) structured

B) unstructured

C) semistructured

D) none of the above

26) The decision to approve a capital budget is an example of a(n) ________ decision.

A) semistructured

B) unstructured

C) structured

D) undocumented

27) The decisions involved in creating and producing a corporate intranet can be classified as ________ decisions.

A) procedural

B) unstructured

C) structured

D) semistructured

28) Checking store inventory is an example of a(n) ________ decision.

A) semistructured

B) unstructured

C) structured

D) none of the above

29) Simon's description of decision making consists of which four stages?

A) planning, financing, implementation, and maintenance

B) planning, design, implementation, and maintenance

C) intelligence, design, choice, and implementation

D) intelligence, design, financing, and implementation

30) Which phase of decision making finds or recognizes a problem, need, or opportunity?

A) design

B) intelligence

C) choice

D) implementation

8. An entity imported machinery to install in its new factory premises before year-end.

An entity imported machinery to install in its new factory premises before year-end. However, due to circumstances beyond its control, the machinery was delayed by a few months but reached the factory premises before year-end. While this was happening, the entity learned from the bank that it was being charged interest on the loan it had taken to fund the cost of the plant. What is the proper treatment of freight and interest expense under IAS 16?

(a) Both expenses should be capitalized.

(b) Interest may be capitalized but freight should be expensed.

(c) Freight charges should be capitalized but interest cannot be capitalized under these circumstances.

(d) Both expenses should be expensed.

9. You, CPA, work as a consultant on various engagements. Your client, Over The Edge Ltd. (OTE), has...

You, CPA, work as a consultant on various engagements. Your client, Over The Edge Ltd. (OTE), has grown from a small custom snowboard manufacturer servicing the local market to a multinational success. Recently,

10. Problem 6-8A (Part Level Submission) Sweet Acacia Industries is a retailer operating in Calgary, ...

with the last portion!!

Problem 6-8A (Part Level Submission) Sweet Acacia Industries is a retailer operating in Calgary, Alberta. Sweet Acacia Industries uses the perpetual inventory method. Assume that there are no credit transactions; a amounts are settled in cash. You are provided with the following information for Sweet Acacia Industries for the month of January 2017. Date Description Quantity Unit Cost or Selling Price $20 173 Dec. 31 Ending inventory 103 Jan. 2 Purchase 22 Jan. 6 Sale 43 Jan. 9 Purchase 69 Jan. 10 Sale 48 48 102 Jan. 23 Purchase 25 Jan. 30 Sale 51

11. Costs per Equivalent Unit The following information concerns production in the Baking Department for

Costs per Equivalent Unit The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process—Baking Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Aug. 1 Bal., 5,000 units, 2/5 completed 8,000 31 Direct materials, 204,000 units 306,000 314,000 31 Direct labor 35,500 349,500 31 Factory overhead 29,076 378,576 31 Goods finished, 196,000 units 356,580 21,996 31 Bal. ? units, 3/5 completed 21,996 a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent. 1. Direct materials cost per equivalent unit. $ 2. Conversion cost per equivalent unit. $ 3. Cost of the beginning work in process completed during August. $ 4. Cost of units started and completed during August. $ 5. Cost of the ending work in process. $ b. Assuming that the direct materials cost is the same for July and August, did the conversion cost per equivalent unit increase, decrease, or remain the same in August?

12. On January 1 of 2015, Parson Freight Company issues 7%, 10-year bonds with a par value of...

On January 1 of 2015, Parson Freight Company issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semi-annually. The market rate of interest is 8% and the bond selling price was $1,864,097. The bond issuance should be recorded as:

13. Which sequence correctly summarizes the accounting process?

Which sequence correctly summarizes the accounting process?

a. Journalize transactions, post to the accounts, prepare a trial balance

b. Journalize transactions, prepare a trial balance, post to the accounts

c. Post to the accounts, journalize transactions, prepare a trial balance

d. Prepare a trial balance, journalize transactions, post to the accounts

14. Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000

Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are:

   12.   What was Carter Co.'s sales mix last year?

   13.   What was Carter Co.'s weighted average unit selling price?

   14.   What was Carter Co.'s weighted average variable cost?

   15.   What was Carter Co.'s weighted average unit contribution margin?

15. 121.Which of the following events is not a business transaction? a.Investment of cash by the owner..

121.Which of the following events is not a business transaction?

a.Investment of cash by the owner.

b.Hired employees.

c.Incurred utility expenses for the month.

d.Earned revenue for services provided.

122.Net income results when

a.Assets > Liabilities.

b.Revenues = Expenses.

c.Revenues > Expenses.

d.Revenues

123.Owner's capital at the end of the period is equal to

a.owner's capital at the beginning of the period plus net income minus liabilities.

b.owner's capital at the beginning of the period plus net income minus drawings.

c.net income.

d.assets plus liabilities.

124.A balance sheet shows

a.revenues, liabilities, and owner's equity.

b.expenses, drawings, and owner's equity.

c.revenues, expenses, and drawings.

d.assets, liabilities, and owner's equity.

125.An income statement

a.summarizes the changes in owner's equity for a specific period of time.

b.reports the changes in assets, liabilities, and owner's equity over a period of time.

c.reports the assets, liabilities, and owner's equity at a specific date.

d.presents the revenues and expenses for a specific period of time.

126.If owner's equity increases from the beginning of the year to the end of the year, then

a.net income is less than owner drawings.

b.a net loss is less than owner drawings.

c.additional owner investments are less than net losses.

d.net income plus investments is greater than owner drawings.

127.Eli’s Electronic Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $400,000 in electronic repair revenues, $300,000 in expenses, and Eli withdrew $50,000. Eli's Owner’s Capital balance at the end of the year was

a.$200,000.

b.$100,000.

c.$150,000.

d.$350,000.

128.Eli’s Electronic Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $400,000 in electronic repair revenues, $300,000 in expenses, and Eli withdrew $50,000. The net income reported by Eli's Electronic Repair Shop for the year was

a.$100,000.

b.$150,000.

c.$250,000.

d.$300,000.

129.Eli’s Electronic Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $400,000 in electronic repair revenues, $300,000 in expenses, and Eli withdrew $50,000. Eli's Owner’s Capital balance changed by what amount from the beginning of the year to the end of the year?

a.$100,000.

b.$  50,000.

c.$200,000.

d.$250,000.

130.The balance sheet is frequently referred to as

a.an operating statement.

b.the statement of financial position.

c.the statement of cash flows.

d.the statement of owner's equity.