Research Paper Strategies for Accounting Students
21. 7. Mr. Kapoor had the following bills receivable and bills payable against Mr. Ramanathan. Calculate
7.Mr. Kapoor had the following bills receivable and bills payable against Mr. Ramanathan.
Calculate the average due date when the payment can be made or received without
any loss of interest to either party.
Gazetted holidays intervening in the period:
15th Aug 2005; 2nd October 2005
18th September 2005 (Emergency holiday)
22. Julie Whiteweiler made $930 this week. Only social security (fully taxable) and federal income taxes...
Julie Whiteweiler made $930 this week. Only social security (fully taxable) and federal income taxes attach to her pay. Whiteweiler contributes $100 each week to her company’s 401(k) plan and has $25 put into her health savings account (nonqualified) each week. Her employer matches this $25 each week. Determine Whiteweiler’s take-home pay if she is single and claims 2 allowances (use the wage-bracket method).
23. Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests...
Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $15,000 cash, and Nichols contributes $10,000 cash and equipment having a book value of $3,500. Prepare the entry to record Nichols's investment in the partnership, assuming the equipment has a fair value of $4,000.
24. Single Plantwide Factory Overhead Rate Orange County Chrome Company manufactures three chrome-plated
Single Plantwide Factory Overhead Rate
Orange County Chrome Company manufactures three chrome-plated productsAc€??automobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Orange County Chrome is $220,800.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
Required:
1. Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours.
Direct labor overhead rate | $ per direct labor hour |
Machine hour overhead rate | $ per machine hour |
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.
Automobile Bumpers | Valve Covers | Wheels | |
Direct labor hours | $ | $ | $ |
Machine hours | $ | $ | $ |
25. The management of Felipe Inc. is reevaluating the appropriateness of using its present inventory ...
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
26. Refer to Nobes’s judgmental classification of accounting systems in Exhibit 2.5 and consider...
Refer to Nobes’s judgmental classification of accounting systems in Exhibit 2.5 and consider the following countries: Austria, Brazil, Finland, Ivory Coast, Russia, South Africa. Required: Identify the family of accounting in which you would expect to find each of these countries. Explain your classification of these countries.
27. Marlene Bellamy purchased 300 shares of Write line Communications stock at $55 per share using...
Marlene Bellamy purchased 300 shares of Write line Communications stock at $55 per share using the prevailing minimum initial margin requirement of 50%. She held the stock for exactly four months and sold it without brokerage costs at the end of that period. During the 4-month holding period, the stock paid $1.50 per share in cash dividends. Marlene was charged 9% annual interest on the margin loan. The minimum maintenance margin was 25%.
a. Calculate the initial value of the transaction, the debit balance, and the equity position on Marlene’s transaction.
b. For each of the following share prices, calculate the actual margin percentage, and indicate whether Marlene’s margin account would have excess equity, would be restricted, or would be subject to a margin call. 1. $45 2. $70 3. $35
c. Calculate the dollar amount of (1) dividends received and (2) interest paid on the margin loan during the 4-month holding period.
d. Use each of the following sale prices at the end of the 4-month holding period to calculate Marlene’s annualized rate of return on the Write line Communications stock transaction. 1. $50 2. $60 3. $70
28. ‘BMY Ltd.’ invited applications for issuing 1,00,000 equity shares of Rs 10 each at a premiumof...
‘BMY Ltd.’ invited applications for issuing 1,00,000 equity shares of Rs 10 each at a premiumof Rs 10 per share. The amount was payable as follows:On application – Rs 10 per share (including Rs 5 premium)On allotment – The balanceThe issue was fully subscribed. A shareholder holding 300 shares paid the full share moneywith application. Another shareholder holding 200 shares failed to pay the allotment money.His shares were forfeited. Later on these shares were re-issued for Rs 4,000 as fully paid up.Pass necessary journal entries for the above transactions in the books of BMY Ltd.
29. Honda Motor Company is considering offering a $2000 rebate on
Honda Motor Company is considering offering a $2000 rebate on its minivan, lowering the vehicle’s price from $30,000 to $28,000. The marketing group estimates that this rebate will increase sales over the next year from 40,000 to 55,000 vehicles. Suppose Honda’s profit margin with the rebate is $6000 per vehicle. If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea?
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $180,000 and has a 5-year MACRS recovery period, has gathered the following data relative to the current year’s operations.
Accruals | $ 15,000 |
Current assets | 120,000 |
Interest expense | 15,000 |
Sales revenue | 400,000 |
Inventory | 70,000 |
Total costs before depreciation, interest, and taxes | 290,000 |
Tax rate on ordinary income | 40% |
a. Use the relevant data to determine the accounting cash flow from operations (see Equation 3.1) for the current year.
Equation 3.1
Cash flow from operations=
Net profits after taxes + Depreciation and other noncash charges
b. Explain the impact that depreciation, as well as any other noncash charges, has on a firm’s cash flows.
31. Fisico company produces exercise bikes. One of its plants produce two version a standard model an...
Fisico company produces exercise bikes. One of its plants produce two version a standard model and a deluxe model. The deluxe model has a wider and stander base and a variety of electronic gadget to help the exercise monitor heartbeat, calories burned, distance traveled, etc. at beginning of the year the following data were prepared for this plants calculate the cost per unit for each product using direct labor hours to assign all overhead costs Determine the overhead cost per unit. what are the total costs per unit? If required round your final answer to the nearest cent Compare these costs with these calculated using the unit based method which cost is the most accurate?
32. Mahon Corporation has two production departments, Casting and Customizing. The company uses a job...
Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Casting | Customizing | |||
Machine-hours | 15,600 | 13,600 | ||
Direct labor-hours | 5,600 | 6,800 | ||
Total fixed manufacturing overhead cost | $ | 95,160 | $ | 58,480 |
Variable manufacturing overhead per machine-hour | $ | 2.30 | ||
Variable manufacturing overhead per direct labor-hour | $ | 4.50 | ||
During the current month the company started and finished Job T138. The following data were recorded for this job:
Job T138: | Casting | Customizing | |
Machine-hours | 100 | 30 | |
Direct labor-hours | 12 | 80 | |
The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)
$264.00
$1,048.00
$528.00
$89,080.00
33. 1. Joint venture Account is of the nature of (a) Personal account. (b) Nominal account. (c) Real...
1. Joint venture Account is of the nature of
(a) Personal account.
(b) Nominal account.
(c) Real account.
(d) None of these.
2. Capital accounts of the co-venturers are of the nature of
(a) Personal account.
(b) Real account.
(c) Nominal account.
(d) None of these.
3. When goods are purchased for joint venture, the account to be debited is
(a) Purchases account
(b) Joint Venture account
(c) Joint Bank account
(d) Co-venturer’s account
34. Which one of the following is not an accurate description of the Allowance for Doubtful Accounts? 21
Which one of the following is not an accurate description of the Allowance for Doubtful Accounts? 21 Multiple Choice The amount of the Allowance for Doubtful Accounts decreases the net realizable value of a company’s receivables. The account is increased by an estimate of uncollectible accounts expense. The account is a contra account. The account is a temporary account.
35. 1. What is the difference between a predator and a “situational (accidental) fraudster?” 2. Why does
1. What is the difference between a predator and a “situational (accidental) fraudster?”
2. Why does collusion pose unique prevention and detection challenges?
3. How is the concept of an “organization” involved in mixing illegal activities with legitimate ones?
4. Why is financial statement fraud often considered a complex fraud?
36. The trial balance of Pacilio Security Services Inc. as of January 1.2016. had the following norma...
Show transcribed image text The trial balance of Pacilio Security Services Inc. as of January 1.2016. had the following normal Cash $74, 210 Accounts Receivable 13, 500 Supplies Prepaid Rent Merchandise Inventory (24 a $265, 1 @$260) 6, 620 Land 4.000 Accounts Payable 1, 950 Unearned Revenue 1,000 Salaries Payable 50,000 Common Stock 47, 880 Retained Earnings 1. Paid the salaries payable from 2015. 2. On March 1, 2016, Pacilio established a $100 petty cash fund to handle small expenditures. 3. Paid $4.800 on March 1, 2016, for one year's lease on the company van in advance 4, Paid $7.200 on May 2, 2016, for one year's office rent in advance. 5. Purchased $400 of supplies on account. 6. Purchased 100 alarm systems for $28.000 cash during the year. 7. Sold 102 alarm systems for $57.120. All sales were on account. (Compute cost of goods sold using the FIFO cost flow method.) 8. Paid $2.100 on accounts payable during the year. 9. Replenished the petty cash fund on August 1.Atthistime, the petty cash fund had only of currency left it contained the following receipts: office supplies expense S23, cutting grass S55. and miscellaneous expense $14. 10. Billed $52,000 of monitoring services for the year 11. Paid installers and other employees a total of $25,000 cash for salaries. 12. Collected $89.300 of accounts receivable during the year. 13 Paid S3.600 of advertising expense during the year. 14. Paid $2.500 of expense for the year. 15, Paid a dividend of$10,000 to the shareholders. Adjustments 16. There was $160 of supplies on hand at the end of the year. working the following textbook problem and would like some I Account
37. A bowling ball is dropped from a boat so that it strikes the surface of a lake with a speed of 25...
A bowling ball is dropped from a boat so that it strikes the surface of a lake with a speed of 25 ft/s. Assuming the ball experiences a downward acceleration of a = 10 - 0.9
2 when in the water, determine the velocity of the ball when it strikes the bottom of the lake.
38. Can managerial accounting play an important role in a non profit organization??
Can managerial accounting play an important role in a non profit organization??
39. Heathrow issues $2,000,000 of 6%, 15-year bonds dated January 1, 2011, that pay interest...
Heathrow issues $2,000,000 of 6%, 15-year bonds dated January 1, 2004, that pay interest semiannually
on June 30 and December 31. The bonds are issued at a price of $1,728,224.
1. Prepare the January 1, 2004, journal entry to record the bonds’ issuance.
2. For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization,
and (c) the bond interest expense.
3. Determine the total bond interest expense to be recognized over the bonds’ life.
4. Prepare the first two years of an amortization table like Exhibit 14.7 using the straight-line method.
5. Prepare the journal entries to record the first two interest payments.
6. Assume that the bonds are issued at a price of $2,447,990. Repeat parts 1 through 5
