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Get Distinction in Accounting Dissertation
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22. A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. F...A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $260,000, and the following quantities of product and sales revenues were produced. Product Pounds Price per Pound Feed 150,000 $2.20 Flour 44,000 2.60 Starch 14,000 7.00 How much of the $260,000 cost should be allocated to feed? (Round your intermediate percentage to the nearest whole percent.)
$330,000.
$0.
$158,600.
$260,000.
$200,000.
23. Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building about 10 years ...
Show transcribed image text Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building about 10 years ago. For several years, the company has rented out a small annex attached to the rear of the building. The company has received a rental income of $30,000 per year on this space. The renter's lease will expire soon, and rather than renewing the lease, the company has decided to use the space itself to manufacture a new product. Direct materials cost for the new product will total S80 per unit. To have a place to store finished units of product, the company will rent a small warehouse nearby. The rental cost will be $500 per month. In addition, the company must rent equipment for use in producing the new product; the rental cost will be $4,000 per month. Workers will be hired to manufacture the new product, with direct labor cost amounting to $60 per unit. The space in the annex will continue to be depreciated on a straight-line basis, as in prior years. This depreciation is $8,000 per year. Advertising costs for the new product will total $50,000 per year. A supervisor will be hired to oversee production; her salary will be $1, 500 per month. Electricity for operating machines will be $1.20 per unit. Costs of shipping the new product to customers will be $9 per unit. To provide funds to purchase materials, meet payrolls, and so forth, the company will have to liquidate some temporary investments. These investments are presently yielding a return of about $3,000 per year. Required: For each of the costs associated with the new product decision, indicate whether it would be variable or fixed, tf it is a product cost, indicate whether it would be direct materials, direct labor or a manufacturing overhead cost. If it is not a product cost, indicate whether it is a period, opportunity or a sunk cost. Select "None" if none of the categories apply for a particular item. NOTE: Opportunity cost is a special category, and to avoid confusion, do not attempt to classify the cost in any other way except as an opportunity cost.
24. Nov.1 Mimi transferred 56,000 out of a personal savings bank account to a checking accounts her...
Nov.1 Mimi transferred 56,000 out of a personal savings bank account to a checking accounts her in the name of the business.
1. Rented office space and paid cash for the month’s rent of 800
3. Purchased electrical equipment for 14,000 by paying 3,200 and agreeing to pay the remaining balance in six months
5. Purchased office supplies by paying 900 cash.
6. Completed electrical work and received 1,000 cash for doing the work.
11. Purchased 3,800 of office equipment on credit
15. Completed electrical work on credit in the amount of 4,000
20. Paid for the office equipment purchased on Nov.9
24. Billed a customer for electrical work completed 600
28. Received 4,000 for the work completed on Nov.15
30. Paid salary of employees 1,200
30. Paid the monthly utilities bill 440
30. Withdrew 700 from the business for personal use
Required:
1. Prepare journal entries.
2. Post journal entries to appropriate ledger accounts (use T-Account).
3. Prepare trial balance.
4. Prepare an income statement, a statement of owner’s equity, and a balance sheet
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St. Lideta Health Science and Business College DEPARTMENT – Accounting and Business management ASSIGMENT ON: Principles of Accounting I Instructor: - TADESSE HABTE Weight 20% Submitted on 15/02/2014EC EXERCISE 1 (Individual Assignment) 10% Mimi started a new business called Harot Company and completed the following transactions during November: 2013 Nov.1 Mimi transferred 56,000 out of a personal savings bank account to a checking accounts she in the name of the business. 1. Rented office space and paid cash for the month’s rent of 800 3. Purchased electrical equipment for 14,000 by paying 3,200 and agreeing to pay the remaining balance in six months 5. Purchased office supplies by paying 900 cash. 6. Completed electrical work and received 1,000 cash for doing the work. 11. Purchased 3,800 of office equipment on credit 15. Completed electrical work on credit in the amount of 4,000 20. Paid for the office equipment purchased on Nov.9 24. Billed a customer for electrical work completed 600 28. Received 4,000 for the work completed on Nov.15 30. Paid salary of employees 1,200 30. Paid the monthly utilities bill 440 30. Withdrew 700 from the business for personal use Required: Prepare journal entries. Post journal entries to appropriate ledger accounts (use T-Account). Prepare trial balance. Prepare an income statement, a statement of owner’s equity, and a balance sheet EXERCISE 2 (Group Assignment) 10% To illustrate the complete accounting cycle, we will consider the following list of selected...
25. 155.The balances for the accounts listed below appear in the Adjusted Trial Balance columns of the..
155.The balances for the accounts listed below appear in the Adjusted Trial Balance columns of the end-of-periodspreadsheet (work sheet). Indicate whether each balance should be extended to (a) an Income Statement columnor (b) a Balance Sheet column.
1.Retained Earnings
2.Common Stock
3.Depreciation Expense
4.Accumulated Depreciation
5.Fees Earned
6.Unearned Fees
7.Supplies
8.Supplies Expense
156.The end-of-period spreadsheet (work sheet) for the current year for Jamal Company shows Balance Sheetcolumns with a debit total of $630,430 and a credit total of $614,210. This is before the amount for net income ornet loss has been included. In preparing the income statement from the end-of-period spreadsheet, what is theamount of net income or net loss?
157.The end-of-period spreadsheet (work sheet) for the current year for Jamal Company shows Balance Sheetcolumns with a debit total of $614,210 and a credit total of $630,430. This is before the amount for net income ornet loss has been included. In preparing the income statement from the work sheet, what is the amount of netincome or net loss?
158.On January 1, Hannah’s Pool Service Company had a retained earnings balance of $252,000. During the yearHannah’s stockholders bought an additional $32,000 in common stock and received dividends of $52,200. For theyear ended December 31 Hannah’s Pool Service Company reported a net income of $73,200. Prepare a statementof retained earnings for the year ended December 31.
159.The following accounts appear in an adjusted trial balance of Blaine Auto Service Company. Indicate whethereach account would be reported in the (a) current assets, (b) property, plant, and equipment, (c) current liabilities,(d) long-term liabilities, or (e) stockholders’ equity section of the December 31 balance sheet of Blaine AutoService Company.
1.Retained Earnings
2.Accumulated Depreciation
3.Unearned Revenues
4.Mortgage Payable
5.Equipment
6.Notes Payable (due in two years)
7.Cash
8.Accounts Receivable
26. Income Statement and Balance Sheet On March 1, 2016, Amy Dart began Dart Delivery Service, which...
Income Statement and Balance Sheet
On March 1, 2016, Amy Dart began Dart Delivery Service, which provides delivery of bulk mailings to the post office, neighborhood delivery of weekly newspapers, data delivery to computer service centers, and various other delivery services using leased vans. On February 28, Dart invested $20,000 of her own funds in the firm and borrowed $8,000 from her father on a six-month, non-interest-bearing note payable. The following information is available at March 31:
Accounts Receivable $10,700 Delivery Fees Earned $23,300
Rent Expense 2,500 Cash 12,700
Advertising Expense 1,100 Supplies Inventory 15,800
Supplies Expense 2,500 Notes Payable 8,000
Accounts Payable 1,400 Insurance Expense 900
Salaries Expense 6,200 Common Stock 20,000
Miscellaneous Expense 300 Retained Earnings ?
27. Wiset Company completes these transactions during April of the current year (the terms of all its...
Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10 Search documents and file names for text Purchased $15, 100 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, Apr 2 n/ 60 3 (a) Sold merchandise on credit to Page Alistair for $4,700 $3,500) Invoice No 760 cost is 3 (b) Purchased $1,560 of office supplies on credit from Custer, Inc. Invoice dated April 2 terms n/10 EOM ed Check No. 587 to World View for advertising expense $9 11 Sold merchandise on credit to Paula Kohr Invoice No 761, for $8, 100 (cost is $7,500) Received an $85 credit memorandum from Custer, Inc., for the return of some of the offic supplies received on April 3 Purchased $12, 770 of store equipment on credit from Hal's Supply invoice dated April 9 terms n/10 EOM Sold merchandise on credit to Nic Nelson, Invoice No 762, for $11,000 (cost is $6,300 11 12 Issued Check No. 588 to Noth company in payment of its April 2 invoice less the discount 13 (a) Received payment from Page Alistair for the April 3 sale less the discount 13 (b) Sold $12,000 of merchandise on credit to Page Alistair $3,500) Invoice No cost is 763 Received payment from Paula Kohr for the April 5 sale less the discount 16 (a) Issued Check No 589 payable to Payroll in payment of sales salaries expense for the first half of the month, $10,900 Cashed the check and paid employees 16 (b) Cash sales for the first half of the month are $54, 690 cost is $42, 300) (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.) Purchased $12,600 of merchandise on credit from Grant Company, invoice dated April 17 17 terms 2/10, n/30 Borrowed $61,000 cash from First State Bank by signing a long-term note payable 18 20 (a) Received payment from Nic Nelson for the April 1 sale less the discount 20 (b) Purchased $1,160 of store supplies on credit from Hal's Supply invoice dated April 19 terms n/10 EOM 23 (a) Received a $1,200 credit memorandum from Grant Company for the return of defective merchandis received on April 17 23 (b) Received payment from Page Alistair for the April 13 sale less the discount 25 Purchased $1 1,665 of merchandise on credit from Noth Company invoice dated April 24 terms 2/10 n/ 60 26 Issued Check No. 590 to Grant Company in payment of its April 1 invoice less the return and the discoun 27 (a) sold $3,200 of merchandise on credit t o Paula Kohr $2,480) Invoice No 764 cost is 27 (b) Sold $6,100 of merchandise on credit to Nic Nelson, Invoice No 765 cost is $4,850) 30 (a) Issued Check No. 591, payable to Payroll in payment of the sales salaries expense for the last half of the month, $10,900 30 (b) Cash sales for the last half of the month are $74, 100 cost is $64, 100)
28. Bankers usually insist that prospective borrowers submit audited
Bankers usually insist that prospective borrowers submit audited financial statements along with a loan application. Why should financial statements be audited by a CPA?
29. Presented below is selected information related to Flanagan Company at December 31, 2010. Flanagan...
Presented below is selected information related to Flanagan Company at December 31, 2010. Flanagan reports financial information monthly.
Office Equipment $10,000 Utilities Expense $4,000
Cash 8,000 Accounts Receivable 9,000
Service Revenue 36,000 Wages Expense 7,000
Rent Expense 11,000 Notes Payable 16,500
Accounts Payable 2,000 Drawings 5,000
(a) Determine the total assets of Flanagan Company at December 31, 2010.
(b) Determine the net income that Flanagan Company reported for December
(c) Determine the owner’s equity of Flanagan Company at December 31, 2010.
30. egacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2019, that pay interest semiannuall
Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $683,649 when the market rate is 8%. Required: 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds’ life. 3. Prepare an effective interest amortization table for the bonds’ first two years. 4. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the January 1 journal entry to record the bonds’ issuance. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 January 01 Cash 683,649 Discount on bonds payable 36,351 Bonds payable 720,000 Required 1 Required 2 Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $683,649 when the market rate is 8% Required: 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds’ first two years. 4. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Complete the below table to calculate the total bond interest expense to be recognized over the bonds’ life Total bond interest expense over life of bonds: Amount repaid: 8 payments of $ S 23,400 187,200 Par value at maturity 720,000 Total repaid 907,200 Less amount borrowed (683,649) S Total bond interest expense 223,551 Required 1 Required 3 Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $683.,649 when the market rate is 8% Required: 1. Prepare the January 1journal entry to record the bonds’ issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds’ life. 3. Prepare an effective interest amortization table for the bonds’ first two years. 4. Prepare the journal entries to record the first two interest payments Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 3 Required 4 Prepare an effective interest amortization table for the bonds’ first two years. Semiannual Interest Period-End Bond Interest Expense Unamortized Discount Discount Amortization Cash Interest Paid Carrying Value 01/01/2019 S 36,351 $ 683,649 06/30/2019 12/31/2019 06/30/2020 12/31/2020 Required 2 Required 4 Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $683,649 when the market rate is 8%. Required: 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds’ life. 3. Prepare an effective interest amortization table for the bonds’ first two years. 4. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entries to record the first two interest payments. View transaction list View journal entry worksheet No Date General Journal Debit Credit Bond interest expense 1 June 30 27,944 4,544 Discount on bonds payable Cash 23,400 Required 3 Required 4
31. 13.25 WACC for a firm: The Imaginary Products Co. currently has $300 million of market value debt...
13.25 WACC for a firm: The Imaginary Products Co. currently has $300 million of market value debt outstanding. The 9 percent coupon bonds (semiannual pay) have a maturity of 15 years and are currently priced at $1,440.03 per bond. The firm also has an issue of 2 million preferred shares outstanding with a market price of $12.00. The preferred shares offer an annual dividend of $1.20. Imaginary also has 14 million shares of common stock outstanding with a price of $20.00 per share. The firm is expected to pay a $2.20 common dividend one year from today, and that dividend is expected to increase by 5 percent per year forever. If Imaginary is subject to a 40 percent marginal tax rate, then what is the firm’s weighted average cost of capital? Capital component Number outstanding Current price Bonds 300,000 $1,440.03 Preffered stock 2,000,000 $12.00 Common stock 14,000,000 $20.00 Coupon rate on debt 9% Coupon frequency (per year) 2 Bond maturity (years) 15 Preferred dividend (annual) $1.20 Expected dividend on common (D1) $2.20 Constant annual dividend growth rate (forever) 5% Marginal tax rate 40% Capital component Market Value Weight After-tax cost Weighted Cost (%) Bonds Preferred stock Common stock Total capital (market value) WACC
32. A listing of a business entity’s assets, liabilities, and owner’s equity as of a specific date is:A.
A listing of a business entity’s assets, liabilities, and owner’s equity as of a specific date is:A. . a statement of cash flowsB. . a statement of owner’s equityC. . a balance sheetD. . an income statement
33. multiple choice
1. Lonely Guy Repair Service recently performed repair services for a customer that totaled $400. Somehow the bill was lost and the company accountant was trying to recreate the bill from memory. This is what was remembered: Total bill $400
Labor profit margin $10
Materials profit margin 20%
Total labor charges $260
Cost of materials used $100
Total hourly cost $22.50
2. What was the material loading charge?
A) 20%
B) 25%
C) 35%
D) 40%
3. Well Water Inc. wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2.00 per 12 oz. bottle. The following data has been collected: Annual sales 50,000 bottles
Projected selling and administrative costs $8,000
Desired profit $80,000
4. The target cost per bottle is
A) $0.24.
B) $0.40.
C) $0.16.
D) $0.60.
5. Custom Shoes Co. has gathered the following information concerning one model of shoe: Variable manufacturing costs $30,000
Variable selling and administrative costs $15,000
Fixed manufacturing costs $120,000
Fixed selling and administrative costs $90,000
Investment $1,275,000
ROI 30%
Planned production and sales 5,000 pairs
6. What is the desired ROI per pair of shoes?
A) $51.00
B) $126.00
C) $76.50
D) $127.50
