39. 81. A business pays weekly salaries of $25,000 on Friday for a five-day week ending on that...
81. A business pays weekly salaries of $25,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is
A. debit Salaries Payable, $10,000; credit Cash, $10,000
B. debit Salary Expense, $10,000; credit Dividends, $10,000
C. debit Salary Expense, $10,000; credit Salaries Payable, $10,000
D. debit Dividends, $10,000; credit Cash, $10,000
82. The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed
A. historical cost
B. contra asset
C. book value
D. market value
83. The adjusting entry to record the depreciation of equipment for the fiscal period is
A. debit Depreciation Expense; credit Equipment
B. debit Depreciation Expense; credit Accumulated Depreciation
C. debit Accumulated Depreciation; credit Depreciation Expense
D. debit Equipment; credit Depreciation Expense
84. As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called
A. equipment allocation
B. depreciation
C. accumulation
D. matching
85. The entry to adjust the accounts for wages accrued at the end of the accounting period is
A. debit Wages Payable; credit Wages Income
B. debit Wages Income; credit Wages Payable
C. debit Wages Payable; credit Wages Expense
D. debit Wages Expense; credit Wages Payable
86. The supplies account has a balance of $2,100 at the beginning of the year and was debited during the year for $2,300, representing the total of supplies purchased during the year. If $400 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is
A. $400
B. $200
C. $4,800
D. $4,000
87. A company purchases a one-year insurance policy on June 1 for $2,760. The adjusting entry on December 31 is
A. debit Insurance Expense, $1,380 and credit Prepaid Insurance, $1,380.
B. debit Insurance Expense, $1,150 and credit Prepaid Insurance, $1,150.
C. debit Insurance Expense, $1,610, and credit Prepaid Insurance, $1,610.
D. debit Prepaid Insurance, $1,380, and credit Cash, $1,380.
88. Austin, Inc. made a Prepaid Rent payment of $3,500 on January 1st. The company’s monthly rent is $700. The amount of Prepaid Rent that would appear on the January 31 balance sheet after adjustment is:
A. $2,800
B. $700
C. $3,500
D. $1,750
89. Depreciation Expense and Accumulated Depreciation are classified, respectively, as
A. expense, contra asset
B. asset, contra liability
C. revenue, asset
D. contra asset, expense
90. The type of account and normal balance of Accumulated Depreciation is
A. asset, credit
B. asset, debit
C. contra asset, credit
D. contra asset, debit
40. For the year ended December 31, 2014, the job cost sheets of Cinta Company contained the..
For the year ended December 31, 2014, the job cost sheets of Cinta Company contained the following data.
Job |
| Direct | Direct | Manufacturing | Total | |||||
7640 | Balance 1/1 | $33,500 | $32,160 | $38,592 | $104,252 | |||||
Current year’s costs | 40,200 | 48,240 | 57,888 | 146,328 | ||||||
7641 | Balance 1/1 | 14,740 | 24,120 | 28,944 | 67,804 | |||||
Current year’s costs | 57,620 | 64,320 | 77,184 | 199,124 | ||||||
7642 | Current year’s costs | 77,720 | 73,700 | 88,440 | 239,860 |
Other data:
1. | Raw materials inventory totaled $20,100 on January 1. During the year, $187,600 of raw materials were purchased on account. | |
2. | Finished goods on January 1 consisted of Job No. 7638 for $116,580 and Job No. 7639 for $123,280. | |
3. | Job No. 7640 and Job No. 7641 were completed during the year. | |
4. | Job Nos. 7638, 7639, and 7641 were sold on account for $710,200. | |
5. | Manufacturing overhead incurred on account totaled $160,800. | |
6. | Other manufacturing overhead consisted of indirect materials $18,760, indirect labor $24,120, and depreciation on factory machinery $10,720. |
41. 81. A group of related accounts that comprise a complete unit is called a A. journal...
81. A group of related accounts that comprise a complete unit is called a
A. journal
B. liability
C. ledger
D. transaction
82. Accounts are classified in the ledger
A. chronologically
B. alphabetically
C. in accordance with their appearance in the financial statements
D. so that accounts used most often are listed first
83. Revenue should be recognized when
A. cash is received
B. the service is performed
C. the customer places an order
D. the customer charges an order
84. Which of the following accounts is an stockholders' equity account?
A. Cash
B. Accounts Payable
C. Prepaid Insurance
D. Retained Earnings
85. The gross increases in stockholders' equity attributable to business activities are called
A. assets
B. liabilities
C. revenues
D. net income
86. A chart of accounts is
A. the same as a balance sheet
B. usually a listing of accounts in alphabetical order
C. usually a listing of accounts in financial statement order
D. used in place of a ledger
87. The debit side of an account
A. depends on whether the account is an asset, liability or stockholders' equity
B. can be either side of the account depending on how the accountant set up the system
C. is the right side of the account
D. is the left side of the account
88. An account is said to have a debit balance if
A. the amount of the debits exceeds the amount of the credits
B. there are more entries on the debit side than on the credit side
C. its normal balance is debit without regard to the amounts or number of entries on the debit side
D. the first entry of the accounting period was posted on the debit side
89. Which statement(s) concerning cash is (are) true?
A. cash will always have more debits than credits
B. cash will never have a credit balance
C. cash is increased by debiting
D. all of the above
90. A debit may signify a(n)
A. decrease in asset accounts
B. decrease in liability accounts
C. increase in the capital stock account
D. decrease in the dividend account
42. answer and show your solution Problem 17-10 (AICPA Adapted) At the beginning of current year, Mighty
answer and show your solution of the outstanding ordinary shares of an investee for P7,000,000. This investment gave Mighty Company the ability to exercise significant influence over the investee. The carrying amount of the acquired net assets was P6,000, 000. The excess of cost over carrying amount was attributed to an identifiable intangible asset which was undervalued on investee's statement of financial position and which had a remaining useful life of ten years. The investee reported net income of P1,800,000 for the current year and paid cash dividend of P600,000 on the ordinary shares. What is the carrying amount of the investment in associate at year-end? 6,780,000 b. 7,140,000 7,000,000 d. 6,900,000 ?. c. Problem 17-11 (AICPA Adapted) On July 1, 2019, Focus Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share. On December 15, 2019, Eagle Company paid P1,000,000 in dividends. Eagle Company's net income for 2019 was P5,000,000 earned evenly throughout the year What amount of income from the investment should be reported for the current year? 500,000 b. 300,000 c. 750,000 ?. 150,000 a. 449
43. A worker takes 6 hours to complete a job under a scheme of payment by results.
A worker takes 6 hours to complete a job under a scheme of payment by results. The standard time allowed for the job is 9 hours. His wage rate is Rs.15 per hour. Material cost of the job is Rs.120 and the overheads are recovered at 15% of the total direct wages. Calculate the factory cost of job under A] Rowan and B] Halsey system of incentive system.
44. MULTIPLE-CHOICE QUESTIONS 1. Which of the following can be used by organizations for obtaining...
MULTIPLE-CHOICE QUESTIONS 1. Which of the following can be used by organizations for obtaining financing? a. Notes. b. Mortgages. c. Bonds. d. All of the above. 2. Which of the following accounts would not typically be included in the audit of debt obligations? a. Interest income. b. Interest expense. c. Bonds payable. d. Notes payable. 3. Inherent risks related to debt obligations primarily include which of the following? a. Debt is not properly authorized. b. Interest expense is not properly accrued. c. Debt covenants are not properly disclosed. d. Debt is not appropriately classified as short or long term. e. All of the above are inherent risks related to debt obligations. 4. Which of the following is not an inherent risk typically associated with the existence of dividends? a. Dividends are recorded before being declared. b. Dividends are not properly amortized. c. Dividends have not been approved before being declared. d. Dividends are recorded in the wrong period. 5. Which of the following most accurately describes the nature of fraud related to debt obligations described in the case of Federico Quinto, Jr., CPA presented in the Professional Judgment in Context feature? a. Interest expense was recorded in the wrong period. b. Entire loan payments were charged to principal. c. Debt covenants and potential violations were not appropriately presented and disclosed. d. Long-term debt was misclassified as short-term debt. 6. Which of the
45. The Audiology Department at Randall Clinic offers many services to the clinic's patients.The three most common, along with cost and utilization data, are as follows:
-The Audiology Department at Randall Clinic offers many services to the clinic's patients.The three most common, along with cost and utilization data, are as follows:
Sevice- Variable Cost per serivce - Annual Direct costs- Annual Number of visits
Basic examination $5 $50,000 3,000
Advanced examination 7 30,000 1,500
Therapy session 10 40,000 500
a. What is the fee schedule for these services, assuming that the goal is to cover only
variable and direct fixed costs?
b. Assume that the Audiology Department is allocated $100,000 in total overhead by
the clinic, and the department director has allocated $50,000 of this amount to the
three services listed above.What is the fee schedule assuming that these overhead
costs must be covered? (To answer this question, assume that the allocation of
overhead costs to each service is made on the basis of number of visits.)
46. P 3-11 (Cash and Accrual Basis) On January 1, 2012, Norma Smith and Grant Wood formed a computer...
P 3-11 (Cash and Accrual Basis)On January 1, 2012, Norma Smith and Grant Wood formed a computer sales and service enterprise in Soapsville, Arkansas, by investing $90,000 cash. The new company, Arkansas Sales and Service, has the following transactions during January.
1.Pays $6,000 in advance for 3 months’ rent of office, showroom, and repair space.
2.Purchases 40 personal computers at a cost of $1,500 each, 6 graphics computers at a cost of $2,500 each, and 25 printers at a cost of $300 each, paying cash upon delivery.
3.Sales, repair, and office employees earn $12,600 in salaries and wages during January, of which $3,000 was still payable at the end of January.
4.Sells 30 personal computers at $2,550 each, 4 graphics computers for $3,600 each, and 15 printers for $500 each; $75,000 is received in cash in January, and $23,400 is sold on a deferred payment basis.
5.Other operating expenses of $8,400 are incurred and paid for during January; $2,000 of incurred expenses are payable at January 31.
Instructions
(a)Using the transaction data above, prepare
(1) a cash-basis income statement and
(2) an accrual-basis income statement for the month of January.
(b)Using the transaction data above, prepare
(1) a cash-basis balance sheet and
(2) an accrual-basis balance sheet as of January 31, 2012.
(c)Identify the items in the cash-basis financial statements that make cash-basis accounting inconsistent with the theory underlying the elements of financial statements.
47. Explain how and why OR methods have been valuable in aiding executive decision. Discuss the...
Explain how and why OR methods have been valuable in aiding executive decision.
Discuss the advantages and limitations of using results from mathematical model to make decisions about operations.
Discuss the significance and scope of operations research in modern management.
48. Acc362-The Russo Theater will begin operations in March. The Russo will be unique in that it and...
P2-5A
The Russo Theater will begin operations in March. The Russo will be unique in that it and prepare a trial balance. will show only triple features of sequential theme movies. As of March 1, the ledger of Russo showed: No. 101 Cash $16,000; No. 140 Land $42,000; No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $18,000; No. 157 Equipment $16,000; No. 201 Accounts Payable $12,000; and No. 311 Common Stock $80,000. During the month of March the following events and transactions occurred.
Mar. 2 Rented the three Star Wars movies (Star Wars, The Empire Strikes Back, and The Return of the Jedi) to be shown for the first 3 weeks of March. The film rental was $9,000; $3,000 was paid in cash and $6,000 will be paid on March 10.
3 Ordered the first three Star Trek movies to be shown the last 10 days of March. It will cost $300 per night.
9 Received $6,500 cash from admissions.
10 Paid balance due on Star Wars movies rental and $3,000 on March 1 accounts payable.
11 Russo Theater contracted with M. Brewer Company to operate the concession stand. Brewer is to pay 10% of gross concession receipts (payable monthly) for the right to operate the concession stand.
12 Paid advertising expenses $800.
20 Received $7,200 cash from customers for admissions.
20 Received the Star Trek movies and paid the rental fee of $3,000.
31 Paid salaries of $4,800.
31 Received statement from M. Brewer showing gross receipts from concessions of $8,000 and the balance due to Russo Theater of $800 ($8,000 x 10%) for March.
Brewer paid one-half the balance due and will remit the remainder on April 5.
31 Received $12,000 cash from customers for admissions.
In addition to the accounts identified above, the chart of accounts includes: No. 112
Accounts Receivable, No. 405 Admission Revenue, No. 406 Concession Revenue,
No. 610 Advertising Expense, No. 632 Film Rental Expense, and No. 726 Salaries Expense.
Instructions
(a) Enter the beginning balances in the ledger. Insert a check mark (.) in the reference column of the ledger for the beginning balance.
(b) Journalize the March transactions.
(c) Post the March journal entries to the ledger. Assume that all entries are posted from page 1 of the journal.
49. What is the net total dollar advantage (disadvantage) of purchasing the part rather than making it?
Fothergill Company makes 40,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows:
Direct materials | $23.40 |
Direct labor | 22.30 |
Variable manufacturing overhead | 1.40 |
Fixed manufacturing overhead | 24.60 |
Unit product cost | $71.70 |
An outside supplier has offered to sell the company all of these parts it needs for $59.20 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $352,000 per year.
If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $21.90 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products.
Required:
a. How much of the unit product cost of $71.70 is relevant in the decision of whether to make or buy the part?
b. What is the net total dollar advantage (disadvantage) of purchasing the part rather than making it?
c. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 40,000 units required each year?
50. Which description best fits Andrews? For clarity: - A differentiator competes through good desig...
Which description best fits Andrews? For clarity:
- A differentiator competes through good designs, high awareness, and easy accessibility.
- A cost leader competes on price by reducing costs and passing the savings to customers.
- A broad player competes in all parts of the market.
- A niche player competes in selected parts of the market.
Which of these four statements best describes your company's current strategy?
A )Andrews is a niche cost leader
B) | Andrews is a broad cost leader |
C) | Andrews is a broad differentiator |
D) | Andrews is a niche differentiator |