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Fall Semester Assignment Help
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13. Supply the missing dollar amounts for each of the following independent cases.Supply the missing dollar amounts for each of the following independent cases. Supply the missing dollar amounts for each of the following independent cases.
14. Multiple Choice Questions 10.Sage 50's letter templates use(s): A.Excel B.Word C.Access...
Multiple Choice Questions
10.Sage 50's letter templates use(s):
A.Excel
B.Word
C.Access
D.PowerPoint
E.Camtasia
11.When using Sage 50's letter templates, you can select:
A.From the Tasks menu, select Write Letters; Employee, Customer, or Vendor Letters
B.From the Maintain menu, select Write Letters to all
C.From the Edit menu, select memorize transactions
D.From the Select and Report or Form window, select Company
E.From the Tasks menu, select System, Change Accounting Period, Default Information
12.If you do not have Bellwether's back up data from Exercise 6-2, to send a letter to the customer list you can use:
A.Crafts by Student Name data
B.Sherry Pierce, Accounting data
C.Any back up from David Walsh Designer
D.Bellwether Garden Supply starting data
E.Mountain Sports backup data
13.Another way to open letter templates is the extract the following folder:
A.Open templates from the tasks menu
B.PAWMail.zip
C.Select Maintain; customer defaults
D.Copy an existing document from Word and transfer it to Excel
E.Restore wizard
14.Sage 50's customer templates have been saved as:
A.Excel 2003 .xls files
B.Word 97-2003 .doc files
C.Word 2007 .docx files
D.Access 2007 .mdf files
E.Windows Vista
15.It is recommended that you use the following back up data to complete Chapter 18:
A.Springfield Computer Club January.ptb
B.Chapter 12 Begin.ptb
C.Exercise 1-1.ptb
D.Exercise 6-2.ptb
E.Exercise l5-1.ptb
16.These windows include selections for write letters:
A.Maintain and Reports & Forms
B.File and Edit
C.Tasks and Select a Report or Form
D.Services and Analysis
E.Edit and Lists
17.A document pattern or part of a document that is stored so that is can be used again is called a:
A.File
B.Record
C.Transaction
D.Mailing using Word's mail-merge feature
E.Template
18.Microsoft Word automatically adds the following extension to saved files:
A..wpdor . jpg
B..ptbor .png
C..xls or xlsx
D..doc or .docx
E..sbb or .sbbx
19.After you copy Sage 50 data to Microsoft Word, you need to:
A.Format the data
B.Click on the Excel icon
C.Use the Word macro
D.Click on Open the file
E.Save as an Excel file
15. 96.FIFO reports higher gross profit and net income than the LIFO method when a.prices are increasing
96.FIFO reports higher gross profit and net income than the LIFO method when
a.prices are increasing
b.prices are decreasing
c.prices remain stable
d.prices are reduced by 50%
97.During a period of falling prices, which of the following inventory methods generally results in the lowest balancesheet amount for inventory?
a.average cost method
b.LIFO method
c.FIFO method
d.cannot tell without more information
98.Damaged merchandise that can be sold only at prices below cost should be valued at
a.net realizable value
b.LIFO
c.FIFO
d.average cost
99.If a manufacturer ships merchandise to a retailer on consignment, the unsold merchandise should be included in theinventory of the
a.consignee
b.retailer
c.manufacturer
d.shipper
100.Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statementscorrectly states the effect of the error on net income, assets, and owner's equity?
a.net income is overstated, assets are overstated, and owner's equity is understated
b.net income is overstated, assets are overstated, and owner's equity is overstated
c.net income is understated, assets are understated, and owner's equity is understated
d.net income is understated, assets are understated, and owner's equity is overstated
101.Merchandise inventory at the end of the year was understated. Which of the following statements correctly statesthe effect of the error?
a.net income is understated
b.net income is overstated
c.cost of merchandise sold is understated
d.merchandise inventory reported on the balance sheet is overstated
102.Merchandise inventory at the end of the year is overstated. Which of the following statements correctly states theeffect of the error?
a.owner's equity is overstated
b.cost of merchandise sold is overstated
c.gross profit is understated
d.net income is understated
103.If the cost of an item of inventory is $60 and the current replacement cost is $75, the amount included in inventoryaccording to the lower of cost or market is
a. $15
b. $60
c. $75
d. $135
104.Kristin’s Boutiques has identified the following items for possible inclusion in its December 31 inventory. Which ofthe following would notbe included in the year-end inventory?
a.Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at
Kristin’s Boutique as of December 31.
b.Kristin has in its warehouse merchandise on consignment from Abby Co.
c.Kristin has sent merchandise to various retailers on a consignment basis.
d.Kristin has merchandise on hand which has been returned by customers because of wrong size.
105.During the taking of its physical inventory on December 31, 2014, Barry’s Bike Shop incorrectly counted itsinventory as $350,000 instead of the correct amount of $280,000. The effect on the balance sheet and incomestatement would be
a.assets overstated by $70,000; retained earnings understated by $70,000; and net income statementunderstated by $70,000
b.assets overstated by $70,000; retained earnings understated by $70,000; and no effect on the incomestatement
c.assets, retained earnings, and net income all overstated by $70,000
d.assets and retained earnings overstated by $70,000; and net income understated by $70,000
16. Identify steps RLF Company might consider to improve the accounts receivable situation.
RLF Company sells office equipment and supplies to many organizations in the city and surrounding area on contract terms of 2/10, n/30. In the past, over 75% of the credit customers have taken advantage of the discount by paying within 10 days of the invoice date.
The number of customers taking the full 30 days to pay has increased within the last year. Current indications are that less than 60% of the customers are now taking the discount. Bad debts as a percentage of gross credit sales have risen from the 2.5% provided in past years to about 4.5% in the current year.
The company"s Finance Committee has requested more information on the collections of accounts receivable. The controller responded to this request with the report reproduced below.
RLF COMPANY Accounts Receivable Collections May 31, 2014
The fact that some credit accounts will prove uncollectible is normal. Annual bad debt write-offs have been 2.5% of gross credit sales over the past 5 years. During the last fiscal year, this percentage increased to slightly less than 4.5%. The current Accounts Receivable balance is $1,400,000. The condition of this balance in terms of age and probability of collection is as follows.
Proportion of Total Age Categories Probability of Collection
60% not yet due 98%
22% less than 30 days past due 96%
9% 30 to 60 days past due 94%
5% 61 to 120 days past due 91%
2"/2% 121 to 180 days past due 75%
I wyo over 180 days past due 30%
Allowance for Doubtful Accounts had a credit balance of $29,500 on June 1, 2013. RLF has provided for a monthly bad debt expense accrual during the current fiscal year based on the assumption that 4.5% of gross credit sales will be uncollectible. Total gross credit sales for the 2013–2014 fiscal year amounted to $2,900,000. Write-offs of bad accounts during the year totaled $102,000.
Instructions
(a)Prepare an accounts receivable aging schedule for RLF Company using the age categories identified in the controller"s report to the Finance Committee showing the following.
(1)The amount of accounts receivable outstanding for each age category and in total.
(2)The estimated amount that is uncollectible for each category and in total.
(b)Compute the amount of the year-end adjustment necessary to bring Allowance for Doubtful Accounts to the balance indicated by the age analysis. Then prepare the necessary journal entry to adjust the accounting records.
(c)In a recessionary environment with tight credit and high interest rates:
(1)Identify steps RLF Company might consider to improve the accounts receivable situation.
(2)Then evaluate each step identified in terms of the risks and costs involved.
17. Describe and draw a supply chain for a bicycle repair shop.
Describe and draw a supply chain for a bicycle repair shop.
18. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.
Slowhand Services was formed on May 1, 2010. The following transactions took place during the first month.
Transactions on May 1:
1. Eric Clapton invested $50,000 cash in the company, as its sole owner.
2. Hired two employees to work in the warehouse.They will each be paid a salary of $2,800 per month.
3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.
4. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
5. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.
Transactions during the remainder of the month:
6. Purchased basic office supplies for $500 cash.
7. Purchased more office supplies for $1,500 on account.
8. Total revenues earned were $20,000—$8,000 cash and $12,000 on account.
9. Paid $400 to suppliers for accounts payable due.
10. Received $3,000 from customers in payment of accounts receivable.
11. Received utility bills in the amount of $200, to be paid next month.
12. Paid the monthly salaries of the two employees, totalling $5,600.
Instructions
(a) Prepare journal entries to record each of the events listed. (Omit explanations.)
(b) Post the journal entries to T accounts.
(c) Prepare a trial balance as of May 31, 2010.
19. need help with accounting
Arrow Products typically earns a contribution margin ratio of 25 percent and has current fixed costs of $80,000. Arrow's general manager is considering spending an additional $20,000 to do one of the following:
1. Start a new ad campaign that is expected to increase sales revenue by 5 percent.
2. License a new computerized ordering system that is expected to increase Arrow's contribution margin ratio to 30 percent.
Sales revenue for the coming year was initially forecast to equal $1,200,000 (that is, without implementing either of the above options).
a-1 Compute the projected operating income for each option? (Omit the "$" sign in your response.)
Operating income
Ad Campaign $
Ordering System $
________________________________________
a-2 For each option, how much will projected operating income increase or decrease relative to initial predictions?
Thus projected operating income will by $ if the ad campaign is chosen.
Thus projected operating income will by $ if the ordering system is chosen.
b. By what percentage would sales revenue need to increase to make the ad campaign as attractive as the ordering system? (Omit the "%" sign in your response.)
Percentage increase %
20. Smith Concrete Company owns enough ready-mix trucks to deliver u...
Smith Concrete Company owns enough ready-mix trucks to deliver up to 100,000 cubic yards of concrete per year (considering each truck’s capacity, weather, and distance to each job). Total truck depreciation is $200,000 per year. Raw materials (cement, gravel, and so on) cost about $25 per cubic yard of cement.
Required:
1. Prepare a graph for truck depreciation. Use the vertical axis for cost and the horizontal axis for cubic yards of cement.
2. Prepare a graph for raw materials. Use the vertical axis for cost and the horizontal axis for cubic yards of cement.
3. Assume that the normal operating range for the company is 90,000 to 96,000 cubic yards per year. Classify truck depreciation and raw materials as variable or fixed costs.
21. Indicate which department—accounts payable, cash disbursements, data processing, purchasing,...
Indicate which department—accounts payable, cash disbursements, data processing, purchasing, inventory, or receiving—has ownership over the following files and registers:
a. open purchase order file
b. purchase requisition file
c. open purchase requisition file
d. closed purchase requisition file
e. inventory
f. closed purchase order file
g. valid vendor file
h. voucher register
i. open vouchers payable file
j. receiving report file
k. closed voucher file
l. check register (cash disbursements journal)
22. When a company has a strong internal control structure, stockholders can expect theelimination of...
When a company has a strong internal control structure, stockholders can expect theelimination of fraud. Comment on the soundness of this statement.Response:
23. Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions...
Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders’ equity during its first year of operations. General Journal Debit Credit a. Cash 300,000 Common Stock, $25 Par Value 250,000 Paid-In Capital in Excess of Par Value, Common Stock 50,000 b. Organization Expenses 150,000 Common Stock, $25 Par Value 125,000 Paid-In Capital in Excess of Par Value, Common Stock 25,000 c. Cash 43,000 Accounts Receivable 15,000 Building 81,500 Notes Payable 59,500 Common Stock, $25 Par Value 50,000 Paid-In Capital in Excess of Par Value, Common Stock 30,000 d. Cash 120,000 Common Stock, $25 Par Value 75,000 Paid-In Capital in Excess of Par Value, Common Stock 45,000 Required: 1. How many shares of common stock are outstanding at year-end? 2. What is the amount of minimum legal capital (based on par value) at year-end? 3. What is the total paid-in capital at year-end? 4. What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $695,000?
24. Due to an adverse legal decision, Thor’s 2005 liability insurance increased by $1,200,000 over 2004....
During 2004, Thor Lab supplied hospitals with a comprehensive diagnostic kit for $120. At a volume of 80,000 kits, Thor had fixed costs of $1,000,000 and a profit before income taxes of $200,000. Due to an adverse legal decision, Thor’s 2005 liability insurance increased by $1,200,000 over 2004. Assuming the volume and other costs are unchanged, what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes?
1. $120.00
2. $135.00
3. $150.00
4. $240.00
25. Profitability ratios The Haines Corp. shows the following financial data for 2009 a
Profitability ratios The Haines Corp. shows the following financial data for 2009 and 2010. 2009 2010 Sales $ 2,500,000 $3,000,000 Cost of goods sold 1,500,000 1,875,000 Gross Profit 1,000,000 1,125,000 Selling & administrative expense 205,000 210,000 Operating Profit 795,000 915,000 Interest expense 40,000 45,000 Income before taxes 755,000 870,000 Taxes (35%) 264,250 304,500 Income after taxes $490,750 $565,500 For each year, compute the following and indicate whether it is increasing or decreasing profitability in 2010 as indicated by the ratio. a. Cost of goods sold to sales. b. Selling and administrative expense to sales. c. Interest expenses to sales.
26. At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estima
At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2013, it has outstanding accounts receivable of $74,000, and it estimates that 5% will be uncollectible.
Prepare the adjusting entry to record bad debts expense for year 2013 under the assumption that the Allowance for Doubtful Accounts has
(a) a $1,258 credit balance before the adjustment.
(b) a $370 debit balance before the adjustment.
Adjusting entries (all dated December 31, 2013).
27. High Light India Ltd invited applications for 30,000 shares of Rs 100 each at a premium of Rs 20 per
High Light India Ltd invited applications for 30,000 shares of Rs 100 each at a
premium of Rs 20 per share payable as follows:
On Application Rs 40 (including Rs 10 premium) On Allotment Rs 30 (including Rs 10 premium)
On First Call Rs 30
On Second and Final Call Rs 20
Applications were received for 40,000 shares and pro-rata allotment was made
on the application for 35,000 shares. Excess application money is to be utilised
towards allotment. Rohan to whom 600 shares were allotted failed to pay the
allotment money and his shares were forfeited after allotment. Aman who applied
for 1,050 shares failed to pay first call and his share were forfeited after first call.
Second and final call was made. All the money due on second call have been
received. Of the shares forfeited, 1,000 shares were reissued as fully paid-up for
Rs 80 per share, which included the whole of Aman’s shares. Record necessary
journal entries in the books of High Light India Ltd.
28. 25. Which statement is not true? a. Auditors must maintain independence. b. IT auditors attest to...
25. Which
statement is not true?
a.
Auditors must maintain
independence.
b.
IT auditors attest to the
integrity of the computer system.
c.
IT auditing is independent of
the general financial audit.
d.
IT auditing can be performed by
both external and internal auditors.
26. Typically,
internal auditors perform all of the following tasks except
a.
IT audits
b.
evaluation of operational
efficiency
c.
review of compliance with legal
obligations
d.
internal auditors perform all
of the above tasks
27. The
fundamental difference between internal and external auditing is that
a.
internal auditors represent the
interests of the organization and external auditors represent outsiders
b.
internal auditors perform IT
audits and external auditors perform financial statement audits
c.
internal auditors focus on
financial statement audits and external auditors focus on operational audits
and financial statement audits
d.
external auditors assist
internal auditors but internal auditors cannot assist external auditors
28. Internal
auditors assist external auditors with financial audits to
a.
reduce audit fees
b.
ensure independence
c.
represent the interests of
management
d.
the statement is not true;
internal auditors are not permitted to assist external auditors with
financial audits
29. Which
statement is not correct?
a.
Auditors gather evidence using
tests of controls and substantive tests.
b.
The most important element in
determining the level of materiality is the mathematical formula.
c.
Auditors express an opinion in
their audit report.
d.
Auditors compare evidence to
established criteria.
30. All
of the following are steps in an IT audit except
a.
substantive testing
b.
tests of controls
c.
post-audit testing
d.
audit planning
31. When
planning the audit, information is gathered by all of the following methods
except
a.
completing questionnaires
b.
interviewing management
c.
observing activities
d.
confirming accounts receivable
32. Substantive
tests include
a.
examining the safety deposit
box for stock certificates
b.
reviewing systems documentation
c.
completing questionnaires
d.
observation
