Professional Assistance for Accounting Assignments and Quizzes
On April 1, Wonder Travel Agency Inc. was established. These transactions were completed during the month.
1. Stockholders invested $30,000 cash in the company in exchange for common stock.
2. Paid $900 cash for April office rent.
3. Purchased office equipment for $3,400 cash.
4. Purchased $200 of advertising in the Chicago Tribune, on account.
5. Paid $500 cash for office supplies.
6. Performed services worth $12,000. Cash of $3,000 is received from customers, and the balance of $9,000 is billed to customers on account.
7. Paid $400 cash dividend.
8. Paid Chicago Tribune amount due in transaction (4).
9. Paid employees’ salaries $1,800.
10. Received $9,000 in cash from customers billed previously in transaction (6).
Instructions
(a) Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends). Include margin explanations for any changes in Retained Earnings.
(b) From an analysis of the Retained Earnings columns, compute the net income or net loss for April.
13. Eddie's Bar and Restaurant Supplies expects its revenues and payments for the first part of the year...
Eddie's Bar and Restaurant Supplies expects its revenues and payments for the first part of the year to be:
January | $14,000 | $18,000 | |
February | 20,000 | 21,300 | |
March | 26,000 | 19,100 | |
April | 22,000 | 22,400 | |
May | 18,000 | 14,700 |
Seventy percent of the firm's sales are on credit. Past experience shows that 40 percent of accounts receivable are collected in the month after sale, and the remainder is collected in the second month after sale. Prepare a schedule of cash receipts for March, April, and May. Eddie's pays its payments in the following month. Eddie's had a cash balance of $2,000 on March 1, which is also its minimum required cash balance. There is an outstanding loan of $2,000 on March 1. Prepare a cash budget for March, April, and May.
14. 2. The following purchases were made by a business house having three Departments: Department A –...
2.The following purchases were made by a business house having three Departments:
Department A – 1,000 units
Department B – 2,000 units at a total cost of Rs. 1,00,000
Department C – 2,400 units
Stock on 1st January were:
Department A – 120 units
Department B – 80 units
Department C – 152 units
The Sales were:
Department A – 1,020 units @ Rs. 20 each
Department B – 1,920 units @ Rs. 22.50 each
Department C – 2,496 units @ Rs. 25 each
The rate of gross profit is the same in each case. Prepare Departmental Trading Account.
15. On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to...
On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Chin Company receiving cash of $9,594,415. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. Round your answer to the nearest dollar. 3. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. Round your answer to the nearest dollar. b. Determine the amount of the bond interest expense for the first year. c. Explain why the company was able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000.
1.Which of the following is not a factory overhead allocation method?
a.Single Plantwide Rate Method
b.Multiple Production Department Rate Method
c.Traditional Costing Method
d.Activity-Based Costing Method
2.Which of the following does not support managerial decisions involving accurate product costing?
a.product constraints
b.emphasis of a product line
c.product mix
d.product price
3.Lasso Corp. budgeted $250,000 of overhead cost for 2008. Actual overhead costs for the year were $240,000. Lasso's plant-wide allocation base, machine hours, was budgeted at 50,000 hours. Actual machine hours were 40,000. Budgeted units to be produced are 100,000 units. Lasso's plant-wide factory overhead rate for 2008 is:
a.$1.25 per unit
b.$6.00 per machine hour
c.$6.25 per machine hour
d.$5.00 per machine hour
4.Hoskins Co. uses a plant-wide factory overhead rate based on direct labor hours. Overhead costs would be overcharged to which of the following departments?
a.A labor-intensive department
b.A capital-intensive department
c.A materials-intensive department
d.None of the above
5.Stewart Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plant-wide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. From the following information, determine the plant-wide factory overhead rate:
Overhead | Direct Labor Hours | Product | ||
A | B | |||
Painting Dept. | $248,000 | 10,000 | 16 | 4 |
Finishing Dept. | 72,000 | 10,000 | 4 | 16 |
Totals | $320,000 | 20,000 | 20 | 20 |
======== | ====== | == | == | |
a.$24.80 per dlh
b.$32.00 per dlh
c.$16.00 per dlh
d.$ 7.20 per dlh
6.Stewart Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plant-wide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. From the following information, using a single plant-wide rate, determine the overhead rate per unit for Product A:
Overhead | Direct Labor Hours (dlh) | Product | ||
A | B | |||
Painting Dept. | $248,000 | 10,000 dlh | 16 dlh | 4 dlh |
Finishing Dept. | 72,000 | 10,000 | 4 | 16 |
Totals | $320,000 | 20,000 dlh | 20 dlh | 20 dlh |
======== | ========== | ====== | ====== | |
a.$320.00 per unit
b.$496.00 per unit
c.$144.00 per unit
d.$640.00 per unit
7.Stewart Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plant-wide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. From the following information, using a single plant-wide rate, determine the overhead rate per unit for Product B:
Overhead | Direct Labor Hours (dlh) | Product | ||
A | B | |||
Painting Dept. | $248,000 | 10,000 dlh | 16 dlh | 4 dlh |
Finishing Dept. | 72,000 | 10,000 | 4 | 16 |
Totals | $320,000 | 20,000 dlh | 20 dlh | 20 dlh |
======== | ========== | ====== | ====== | |
a.$496.00
b.$144.00
c.$640.00
d.$320.00
8.The Delph Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and assembly. Data for the products and departments are listed below.
Product | Number of units | Labor hrs per unit | Machine hours per unit |
Blinks | 1,000 | 4 | 5 |
Dinks | 2,000 | 2 | 8 |
All of the Machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000.
The Delph Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Blinks?
a.$78
b.$18
c.$72
d.$14.40
9.The Delph Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and assembly. Data for the products and departments are listed below.
Product | Number of units | Labor hrs per unit | Machine hours per unit |
Blinks | 1,000 | 4 | 5 |
Dinks | 2,000 | 2 | 8 |
All of the Machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000.
The Delph Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Dinks?
a.$36
b.$39
c.$19.50
d.$52
10.The Delph Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and assembly. Data for the products and departments are listed below.
Product | Number of units | Labor hrs per unit | Machine hours per unit |
Blinks | 1,000 | 4 | 5 |
Dinks | 2,000 | 2 | 8 |
All of the Machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000.
The Delph Company uses a single overhead rate to apply all overhead costs based on labor hours. What would the single plant-wide rate be?
a.$9
b.$52
c.$19.50
d.$18.00
A factory owned by XYZ Inc. was destroyed by fire. XYZ Inc. lodged an insurance claim for the value of the factory building, plant, and an amount equal to one year’s net profit. During the year there were a number of meetings with the representatives of the insurance company. Finally, before year-end, it was decided that XYZ Inc. would receive compensation for 90% of its claim. XYZ Inc. received a letter that the settlement check for that amount had been mailed, but it was not received before year-end. How should XYZ Inc. treat this in its financial statements?
(a) Disclose the contingent asset in the footnotes.
(b) Wait until next year when the settlement check is actually received and not recognize or disclose this receivable at all since at year-end it is a contingent asset.
(c) Because the settlement of the claim was conveyed by a letter from the insurance company that also stated that the settlement check was in the mail for 90% of the claim, record 90% of the claim as a receivable as it is virtually certain that the contingent asset will be received.
(d) Because the settlement of the claim was conveyed by a letter from the insurance company that also stated that the settlement check was in the mail for 90% of the claim, record 100% of the claim as a receivable at year-end as it is virtually certain that the contingent asset will be received, and adjust the 10% next year when the settlement check is actually received.
18. Hyzer Disc Golf Course was opened on March 1 by
Hyzer Disc Golf Course was opened on March 1 by Barry Schultz. The following selected events and transactions occurred during March:
Mar. 1 Invested $20,000 cash in the business.
3 Purchased Heeren’s Golf Land for $15,000 cash. The price consists of land $12,000,
shed $2,000, and equipment $1,000. (Make one compound entry.)
5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $700.
6 Paid cash $600 for a one-year insurance policy.
10 Purchased golf discs and other equipment for $1,050 from Innova Company payable in 30 days.
18 Received $340 in cash for golf fees earned.
19 Sold 100 coupon books for $10 each. Each book contains 4 coupons that enable the holder to play one round of disc golf.
25 Withdrew $800 cash for personal use.
30 Paid salaries of $250.
30 Paid Innova Company in full.
31 Received $200 cash for fees earned.
Barry Schultz uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Unearned Revenue, B. Schultz, Capital; B. Schultz, Drawing; Golf Revenue, Advertising Expense, and Salaries Expense. Instructions
Journalize the March transactions.
Discuss what happens when a bonus system is discontinued
1. Discuss broadbanding. Is this a viable program for PAC, or should it be terminated?
2. Discuss the bonus system at PAC. How could it be improved, or should it be terminated?
3. What makes a reward system motivating?
4. Discuss what happens when a bonus system is discontinued. What does the research say?
5. How should PAC address the issue of the FMLA employee who was mistakenly terminated?
20. 24. Elizabeth made the following interest-free loans during the year. Assume that tax avoidance...
24. 
Elizabeth made the following interest-free loans during the year. Assume that tax avoidance is not a principal purpose of any of the loans. Assume that the relevant Federal rate is 5% and that the loans were outstanding for the last six
months of the year.
Borrower Amount
Borrower’s Net
Investment Income Purpose of Loan
Richard $ 5,000 $800 Gift
Woody 8,000 600 Purchase stock
Irene 105,000 –0– Purchase residence
What are the effects of the imputed interest rules on these transactions? Compute Elizabeth’s gross income from each loan:
a. Richard
b. Woody
c. Irene
1. What are some key success factors in diamond retailing? How do Blue Nile, Zales, and Tiffany compare on those dimensions? 2. What do you think of the fact that Blue Nile carries about 30,000 stones priced at $2,500 or higher whereas almost 60 percent of the products sold from the Tiffany website are priced around $200? Which of the two product categories is better suited to the online channel? 3. What do you think of Tiffany’s decision to not sell diamonds online? 4. Given that Tiffany stores have thrived with their focus on selling high-end jewelry, what do you think caused the failure of Zales upscale strategy in 2006? What products should Zales focus on? 5. Which of the three companies do you think was best structured to deal with weak economic times? 6. What advice would you give to each of the three companies regarding their strategy and structure?
22. John started his own delivery service. The following transactions took place inJune 2020:S.no...
John started his own delivery service. The following transactions took place inJune 2020:S.no Date Particulars1 01-06-2020John as a stockholder has invested $25,000 cash inbusiness2 02-06-2020John purchased a used van for $ 13000 for deliveries. Hepaid $ 2,000 cash and signed a note payable for theremaining balance.03-06-2023 0 He paid $ 900 for office rent for the month.4 05-06-2020 Services worth $ 3,000 were performed on account.5 12-06-2020 Purchased supplies for $ 400 on account6 15-06-2020Received a cash payment of $ 750 for services providedon June 5.7 17-06-2020 Purchased gasoline for $ 350 on account8 20-06-2020Received a cash payment of $ 350 on account forservices provided on June 5.9 23-06-2020Received a cash payment of $ 1900 on account forservices provided on June 5.10 26-06-2020 Paid $450 for utilities11 29-06-2020 Paid for the gasoline purchased on account on June 1712 30-06-2020 Paid $ 600 for employee salariesPrepare the following:(a) An income statement for the month of June 2020.(b) A balance sheet as at 30 June 2020.
Haag Inc. is a merchandising company. Last month the company"s cost of goods sold was $86,000. The company"s beginning merchandise inventory was $20,000 and its ending merchandise inventory was $21,000. What was the total amount of the company"s merchandise purchases for the month?
A) $86,000
B) $127,000
C) $87,000
D) $85,000
24. E2-7 (Assumptions, Principles, and Constraints) Presented below are a number of operational...
E2-7 (Assumptions, Principles, and Constraints) Presented below are a number of operational guidelines and practices that have developed over time.
Instructions
Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use qualitative characteristics.)
(a) Fair value changes are not recognized in the accounting records.
(b) Financial information is presented so that investors will not be misled.
(c) Intangible assets are capitalized and amortized over periods benefited.
(d) Repair tools are expensed when purchased.
(e) Agricultural companies use fair value for purposes of valuing crops.
(f) Each enterprise is kept as a unit distinct from its owner or owners.
(g) All significant post balance sheet events are reported.
(h) Revenue is recorded at point of sale.
(i) All important aspects of bond indentures are presented in financial statements.
(j) Rationale for accrual accounting.
(k) The use of consolidated statements is justified.
(l) Reporting must be done at defined time intervals.
(m) An allowance for doubtful accounts is established.
(n) Goodwill is recorded only at time of purchase.
(o) A company charges its sales commission costs to expense.