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1. Systematic Enterprises invested its excess cash in the followingSystematic Enterprises invested its excess cash in the following instruments during December 2010:
Certificate of deposit, due January 31, 2013 …………………..$ 75,000
Certificate of deposit, due March 30, 2011 ……………………. 150,000
Commercial paper, original maturity date February 28, 2011 …. 125,000
Deposit into a money market fund ……………………………… 25,000
Investment in stock ……………………………………………… 65,000
90-day Treasury bills ……………………………………………. 100,000
Treasury note, due December 1, 2040 ………………………….. 500,000
Required
Determine the amount of cash equivalents that should be combined with cash on the company’s balance sheet at December 31, 2010, and for purposes of preparing a statement of cash flows for the year ended December 31, 2010.
2. Determine the gross pay for each employee listed below. a. Clay Jones is paid time-and-a-half for...
Determine the gross pay for each employee listed below.
a. Clay Jones is paid time-and-a-half for all hours over 40. He worked 45 hours during the week. His regular pay rate is $25 per hour.
b. Mary James worked 48 hours during the week. She is entitled to time-and-a-half for all hours in excess of 40 per week. Her regular pay rate is $20 per hour.
c. Lori Terry is paid a commission of 10 percent of her sales, which amounted to $23,650.
d. Nicole Smith’s yearly salary is $95,500. During the week, Best worked 46 hours, and she is entitled to time-and-a-half for all hours over 40.
3. Asix-column table for JKL Company follows. The first two columns contain the unadjusted trial bal...
Asix-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31, 2015. The last two columns contain the adjustedtrial balance as of the same date. 34000 34,000 14,000 20000 Salaries payable 52,000 Consulting fees earned Depreciation expense-omce equip. 14.500 s 256340 $256,340 s 279,240 s279,240 1111 points You did not receive ful credit fa Nealyzete dnerences between the unad usted and adjusted trial balances to determine the amounts in that likely made. Show the resuts of your analysis by enhering eseadus ment the oells provided Unadjusted Trial Balance Adjustments Adjusted Trial Balance 14,000 MacBook Air
4. Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is th...
Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2014. Credit Debit 1,500 Accounts receivable 2,000 Interest receivable 100 prepaid insurance 1,600 Notes receivable (ong-term) 2,800 Equipment 15,000 $3.000 ated depreciation Accounts payable 2,400 3,920 Accrued expenses payable Income taxes payable 2,700 Unearned rent fees Bob Evans, Capital Bob Evans, Drawing Rent fees earned 37,000 Furniture rental revenue 1,200 Interest revenue Wages expense 19,000 1,800 Depreciation expense Utilities expense Insurance expense Maintenance expense Income tax expense 2.700 $58,520 $58,520 The entry required to close the expense accounts at the end of the period includes a: a, a credit to Income Summary for S33,520. b, a debit to Income Summary for S35,520, c, a debit to Income Summary for S33,520. d. a credit to Income Summary for S35,520.
5. VK Limited issued 10,000 Equity Shares @10 each, payable as follows:On...
VK Limited issued 10,000 Equity Shares @10 each, payable as follows:On Application.................................. Rs.4On Allotment.................................... Rs.3Balance............................................. on first and final CallApplications were received for 15,000 equity shares. Pro-rata allotment was made to12,000 only and their excess money was utilized onallotment only. Mohan oneshareholder to whom 200 shares were allotted failed to pay allotment and call. Givenecessary journal entries.
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Test Papers Designed By : Dr. Vinod Kumar (e-mail : authorcbse@gmail.com) Dr. Vinod Kumar is a great name in the field of Accountancy. th th He is author of very popular book “Ultimate Book of Accountancy” class 12 and 11 . Contact Detail : Vishvas Publications 09216629576 and 09256657505 Website : http://bestaccountancybook.in/ and http://vishvasbooks.com/ CBSE TEST PAPER-03 Class - XII Accountancy (Company Accounts – Share Capital) Topic : Calculation of Allotment Money in Different Situations 1. VK Limited issued 10,000 Equity Shares @10 each, payable as follows: [4] On Application.................................. Rs.4 On Allotment.................................... Rs.3 Balance............................................. on first and final Call Applications were received for 15,000 equity shares. Pro-rata allotment was made to 12,000 only and their excess money was utilized on allotment only. Mohan one shareholder to whom 200 shares were allotted failed to pay allotment and call. Give necessary journal entries. 2. VK Limited issued 15,000 Equity Shares @10 each at a discount of 10%, payable as [4] follows: On Application................................... Rs.3 On Allotment..................................... Rs.4 Balance................................................. on first and final Call Applications were received for 23,000 equity shares. Pro-rata allotment was made to 20,000 only and their excess money was utilized on allotment only. Sohan one shareholder to whom 300 shares were allotted failed to pay allotment and call. Give necessary journal entries. 3. VK Limited issued 20,000 Equity Shares @10 each at a premium of 30%, payable as [4] follows: On Application....................... Rs.5 ( including premium Rs.2) On Allotment......................... Rs.4 ( including premium Re.1) Balance.................................. on first and final Call Applications were received for 30,000 equity...
6. The following information is available to reconcile Branch Company’s book balance of cash with its..
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2013. a. On July 31, the company’s Cash account has a $25,866 debit balance, but its July bank statement shows a $28,550 cash balance. b. Check No. 3031 for $1,660 and Check No. 3040 for $822 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $606 and Check No. 3069 for $2,428, both written in July, are not among the canceled checks on the July 31 statement. c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,210 but was erroneously entered in the accounting records as $1,200. d. A credit memorandum enclosed with the July bank statement indicates the bank collected $6,500 cash on a non-interest-bearing note for Branch, deducted a $33 collection fee, and credited the remainder to its account. Branch had not recorded this event before receiving the statement. e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. Enclosed with the July statement is a $10 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. g. Branch’s July 31 daily cash receipts of $7,652 were placed in the bank’s night depository on that date, but do not appear on the July 31 bank statement.
7. One item is omitted in each of the following summaries
One item is omitted in each of the following summaries of balance sheet and income statement data for four different corporations, East, North, South, and West.
Determine the missing amounts, identifying them by letter.
8. Judds Company purchased a new plant asset on April 1,
Judds Company purchased a new plant asset on April 1, 2008, at a cost of $711,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Judds’ accounting period is the calendar year.
Instructions
(a) Compute the depreciation for this asset for 2008 and 2009 using the sum-of-the-years’-digits method.
(b) Compute the depreciation for this asset for 2008 and 2009 using the double-declining balance method.
9. What are the advantages and disadvantages of distributed data processing?
1. What is distributed data processing?
2. What are the advantages and disadvantages of distributed data processing?
3. What types of tasks become redundant in a distributed data processing system?
4. What is a flat-file system?
10. Recording materials transactions Prepare a journal entry to record each of the following materials...
Recording materials transactions
Prepare a journal entry to record each of the following materials transactions:
a. Total materials purchased on account during the month amounted to $200,000.
b. Direct materials requisitioned for the month totaled $175,000.
c. Indirect materials requisitioned during the month totaled $12,000.
d. Direct materials returned to the storeroom from the factory amounted to $2,500.
e. Total materials returned to vendor during the month amounted to $1,800.
f. Payment during the month for materials purchases totaled $165,000.
11. Andretti Company has a single product called a Dak. The company normally produces and sells 82,00...
Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $42 per unit. The company’s unit costs at this level of activity are given below:
Direct materials $ 7.50
Direct labor 11.00
Variable manufacturing overhead 3.40
Fixed manufacturing overhead 9.00 ($738,000 total)
Variable selling expenses 3.70
Fixed selling expenses 4.50 ($369,000 total)
Total cost per unit $ 39.10
A number of questions relating to the production and sale of Daks follow. Each question is independent.
a. Assume that Andretti Company has sufficient capacity to produce 114,800 Daks each year without any increase in feed manufacturing overhead costs. T increase its sales by 40% company could above the present 82.000 unita each year it were wilno to increase the fixed aeling expenses by Calculato the incremental not operating income. IRound all dollar amounts to 2decimal places) Answer s complete but not entirely correct 32,800 Increased salos in units 3320X Contribution margin per uni tribution margin 1,088,960.00 50.000.00) ess added feed selling expense Incomortal notoperating income S 933.060.00 1-b. Would theincreased fixed selling expenses be justified? ONo 2. Assume again that Andretti Company has suficient capacity 10 produce 4800 Daks each year. A in a foreign market wants to nd costs for permits and ldba $22,900. The only selling costs that be associated with the order would be S2.30 per unit shipping cost. Compute the per unit break-even proe on this order. (Round your answers to 2 decimal places Answer is complete but not entirely correct 27,901 Vanable manufacturing oost por Unit Import duties per unit Permits at 2.30V Shipping cost per unit Break-aven price per unit 3 Tho oompany has 600 Daks on hand that have some irregularitios and aro thereforo considorod to bo to tha irregularities, it wil be impassible to thess units at the normal price through regular distribution channels. What unit cost figure is relevant for seting a minimum selling price? d yo to 2 decimal places.) Answer is complete and correct per unit to a strike its suppliers plant Andretti Company is unable to purcha terial for the of Daks. The strike is expected to last for two months, Andretti Company has onough material on hand to operate 25% of normal levels or the two-month period. As an abermativo, Andrelli id closo is plant down onlinely for tho two
12. 64.Which of the following statements about contingent liabilities is incorrect? A. A disclosure note
64.Which of the following statements about contingent liabilities is incorrect?
A. A disclosure note is required when the loss is reasonably possible and the amount cannot be reasonably estimated.
B. A disclosure note is required when the loss is probable and the amount can be reasonably estimated.
C. A disclosure note is required when the loss is reasonably possible and the amount can be reasonably estimated.
D. A disclosure note is required when the loss is remote and the amount can be reasonably estimated.
65.Rice Corporation's attorney has provided the following summaries of three lawsuits against Rice:
• Lawsuit A: The loss is probable, but the loss cannot be reasonably estimated.
• Lawsuit B: The loss is reasonably possible, but the loss cannot be reasonably estimated.
• Lawsuit C: The loss is reasonably possible and can be reasonably estimated.
Which of the following statements is correct?
A. A disclosure note is required for each of the three lawsuits.
B. A disclosure note is required only for lawsuits A & C.
C. A disclosure note is required only for lawsuit A.
D. A disclosure note is required only for lawsuits B & C.
66.Rice Corporation's attorney has provided the following summaries of three lawsuits against Rice:
• Lawsuit A: The loss is probable, but the loss cannot be reasonably estimated.
• Lawsuit B: The loss is reasonably possible, but the loss cannot be reasonably estimated.
• Lawsuit C: The loss is reasonably possible and can be reasonably estimated.
Which of the following statements is incorrect?
A. A disclosure note is required for lawsuit A.
B. A disclosure note is required for lawsuit B.
C. A disclosure note is required for lawsuit C.
D. Lawsuit A is reported on the balance sheet as a liability.
67.Darwin Corporation's attorney has provided the following summaries of three lawsuits against Darwin:
• Lawsuit A: The loss is probable and the loss can be reasonably estimated.
• Lawsuit B: The loss is reasonably possible and the loss cannot be reasonably estimated.
• Lawsuit C: The loss is reasonably possible and the loss can be reasonably estimated.
Which of the following statements is incorrect?
A. A disclosure note is required for lawsuit A.
B. A disclosure note is required for lawsuit C.
C. A disclosure note is not required for lawsuit B.
D. Lawsuit A is reported on the balance sheet as a liability.
68.With regard to reporting of contingent liabilities, U.S. GAAP and International Financial Reporting Standards (IFRS) differ in defining the term "probable". Which of the following is correct with regard to defining "probable"?
A. Under U.S. GAAP, "probable" means an event is more likely than not to occur.
B. Under IFRS, "probable" means an event is likely to occur.
C. Under IFRS, "probable" means an event is more likely than not to occur.
D. Under U.S. GAAP, "probable" means an event is more than likely to occur.
69.Which of the following results in a decrease in working capital?
A. Supplies purchases with cash.
B. Purchase of a truck in exchange for factory machinery.
C. Acquisition of land in exchange for stock.
D. Purchase of equipment with cash.
70.Smith Corporation entered into the following transactions:
• Purchased inventory on account.
• Collected an account receivable.
• Purchased equipment using cash.
Which of the following statements about Smith's transactions is correct?
A. The inventory purchase on account increased working capital.
B. Collecting an account receivable increases working capital.
C. The equipment purchase decreases working capital.
D. The inventory purchase on account decreases working capital.
71.Smith Corporation entered into the following transactions:
• Purchased inventory on account.
• Collected an account receivable.
• Purchased equipment using cash.
Which of the transactions for Smith Corporation resulted in an increase in working capital?
A. The inventory purchase on account.
B. Collecting an account receivable.
C. The purchase of equipment using cash.
D. None of the transactions resulted in an increase in working capital.
72.SRJ Corporation entered into the following transactions:
• The accrual of interest expense on a six-month note payable.
• Collected cash for services to be provided within the next six months.
• The reclassification of short-term debt to long-term debt.
Which of the transactions for SRJ Corporation resulted in a decrease in working capital?
A. The accrual of interest expense.
B. Collecting cash for services to be provided in the future.
C. The reclassification of short-term debt to long-term debt.
D. Both the accrual of interest expense and the reclassification of short-term debt to long-term debt.
73.SRJ Corporation entered into the following transactions:
• The accrual of interest expense on a six-month note payable.
• Collected cash for services to be provided within the next six months.
• The reclassification of short-term debt to long-term debt.
Which of the transactions for SRJ Corporation resulted in an increase in working capital?
A. The accrual of interest expense.
B. Collecting cash for services to be provided in the future.
C. The reclassification of short-term debt to long-term debt.
D. Both the reclassification of short-term debt to long-term debt and the collection of cash for future services.
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13. A partial adjusted trial balance for Ramon Company is given in E4-15. Instructions Prepare the...
A partial adjusted trial balance for Ramon Company is given in E4-15.
Instructions
Prepare the closing entries at January 31, 2017.
E4-15
This is a partial adjusted trial balance of Ramon Company
Instructions Answer these questions, assuming the year begins January 1.
(a) If the amount in Supplies Expense is the January 31 adjusting entry and $300 of supplies was purchased in January, what was the balance in Supplies on January 1?
(b) If the amount in Insurance Expense is the January 31 adjusting entry and the original insurance premium was for 1 year, what was the total premium and when was the policy purchased?
(c) If $2,500 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2016?
(d) If $1,800 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2016?
14. 4-6A Damerly Company (a California employer) wants to give holiday bonus check of $250 to each...
4-6A Damerly Company (a California employer) wants to give holiday bonus check of $250 to each employee. Since it wants the check amount to be $250, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of the bonus to be made to John Rolen if his cumulative earning for the year are $46,910. Besides being subject to social security taxes and federal income tax (supplemental rate), a 6% California income tax must be withheld on supplemental payments.
15. What is the authoritative guidance for asset impairments? Briefly discuss the scope of the standard
Matt Holmes recently joined Klax Company as a staff accountant in the controller’s office. Klax Companyprovides warehousing services for companies in several midwestern cities.The location in Dubuque, lowa, has not been performing well due to increased competition and theloss of several customers that have recently gone out of business. Matt’s department manager suspectsthat the plant and equipment may be impaired and wonders whether those assets should be written down.Given the company’s prior success, this issue has never arisen in the past, and Matt has been asked toconduct some research on this issue.InstructionsAccess the FASB Codification at http://www.asc.fasb.org/home to conduct research using the CodificationResearch System to prepare responses to the following items. Provide Codification references for yourresponses.(a) What is the authoritative guidance for asset impairments? Briefly discuss the scope of the standard(i.e., explain the types of transactions to which the standard applies).(b) Give several examples of events that would cause an asset to be tested for impairment. Does it appearthat Klax should perform an impairment test? Explain.(c) What is the best evidence of fair value? Describe alternate methods of estimating fair value.
