Winter Semester Assistance for Achieving Distinction
89. Which
one of the statements below is not a purpose for the
journal?
A. to show increases and decreases in accounts
B. to show a chronological order by date
C. to show a complete transaction in one place
D. to help locate errors
90. A
credit may signify a
A. decrease in assets
B. decrease in liabilities
C. decrease in capital
D. decrease in revenue
91. A
debit signifies a decrease in
A. assets
B. expenses
C. drawing
D. revenues
92. Which
of the following applications of the rules of debit and credit is true?
A. decrease Prepaid Insurance with a credit and the normal balance is a
credit
B. increase Accounts Payable with a credit and the normal balance is a
debit
C. increase Supplies Expense with a debit and the normal balance is a
debit
D. decrease Cash with a debit and the normal balance is a credit
18. COMPREHENSIVE PROBLEM 1, PERIOD 2: THE ACCOUNTING CYCLE Bob Night’s fishing camp, “The General’s...
COMPREHENSIVE PROBLEM 1, PERIOD 2: THE ACCOUNTING CYCLE Bob Night’s fishing camp, “The General’s Favorite Fishing Hole,” is in the second month of operation. The camp is open from April through September, which allows for many college basketball coaches to attend during their off-season. The camp’s attendees arrive on Sunday afternoon and return home the following Saturday afternoon. Each attendee pays a registration fee that includes room and board, the use of fishing boats, and professional instruction in fishing techniques. Based on suggestions from clients, Night plans to expand the facilities and provide additional services. The post-closing trial balance as of April 30, and chart of accounts are provided below. The General’s Favorite Fishing Hole Post-Closing Trial Balance April 30, 20— Account Acct. No. Debit Balance Credit Balance Cash 101 130,650 Office Supplies 142 100 Food Supplies 144 8,000 Prepaid Insurance 145 7,500 Fishing Boats 181 60,000 Accumulated Depreciation--Fishing Boats 181.1 1,000 Accounts Payable 202 66,500 Wages Payable 219 500 Bob Night, Capital 311 138,250 206,250 206,250
19. Given opening debtors is 11500 sales 48000 and receipts from debtors 45000,what is the closing...
Given opening debtors is 11500 sales 48000 and receipts from debtors 45000,what is the closing debtors
20. Which of the following most accurately describes an annuity? an Investment which produces increa...
Which of the following most accurately describes an annuity? an Investment which produces increasing cash flows over time a series of unequal cash payments made at equal time intervals a stream of equal cash payments made at equal time intervals a term that does not apply to mortgage payable or bond payable
21. Al Medina, D.D.S., opened an incorporated dental practice on January 1, 2017. During the first...
Al Medina, D.D.S., opened an incorporated dental practice on January 1, 2017. During the first month of operations, the following transactions occurred.
1. Performed services for patients who had dental plan insurance. At January 31, $760 of such services was completed but not yet billed to the insurance companies.
2. Utility expenses incurred but not paid prior to January 31 totaled $450.
3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable (interest is paid each December 31). The equipment depreciates $400 per month. Interest is $500 per month.
4. Purchased a 1-year malpractice insurance policy on January 1 for $24,000.
5. Purchased $1,750 of dental supplies (recorded as increase to Supplies). On January 31, determined that $550 of supplies were on hand.
Instructions
Prepare the adjusting entries on January 31. Account titles are Accumulated Depreciation— Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Accounts Payable.
22. Which of the following best describes the accounting for? assurance-type warranty? costs? A.
Which of the following best describes the accounting for? assurance-type warranty? costs?
A. expensed when warranty claims are certain
B. expensed when paid
C. expensed based on estimate in year of sale
D. expensed when obligations are probable and estimable
23. Boothe Company uses job order cost accumulation and applies overhead based on direct labor hours....
Boothe Company uses job order cost accumulation and applies overhead based on direct labor hours. Any under applied or over applied overhead is adjusted directly to Cost of Goods Sold at the end of each month. On April 1, job cost sheets indicated the following: On April 30, Finished Goods contained only Jobs 204 and 207, which had the following total costs: Besides working on Jobs 204 and 207 in April, the company continued work on Jobs 202 and 203 and started work on Jobs 205 and 206. A summary of direct materials used and direct labor hours worked on Jobs 202, 203, 205, and 206 during April showed the following: Other information: (a) On April 30, the only jobs still in process were 203 and 206. (b) All workers are paid $20 per hour. Wage rates have been stable throughout the year. (c) The company maintains only one raw materials account (Materials Control) from which it issues both direct and indirect materials. The balance in this account was $2,700 on April 1. (d) All sales are billed on account at 150% of total cost. (e) Other items in April: Depreciation, Factory Equipment ..................................... $ 1,375 Raw Materials Purchased ................................................. 11,550 Indirect Labor .................................................................. 2,500 Factory Rent and Utilities ............................................... 2,700 Indirect Materials Used .................................................
24. 126.Ratios are most useful in identifying a.trends. b.differences. c.causes. d.relationships....
126.Ratios are most useful in identifying
a.trends.
b.differences.
c.causes.
d.relationships.
127.Short-term creditors are usually most interested in assessing
a.solvency.
b.liquidity.
c.marketability.
d.profitability.
128.A common measure of liquidity is
a.return on assets.
b.receivables turnover.
c.profit margin.
d.debt to equity.
129.A common measure of profitability is the
a.current ratio.
b.current cash debt coverage ratio.
c.return on common stockholders’ equity ratio.
d.debt to total assets.
130.A common measure of long-term solvency is
a.the cash debt coverage ratio.
b.the current ratio.
c.the asset turnover ratio.
d.inventory turnover.
131.Return on assets ratio is most closely related to
a.profit margin and debt to total assets ratio.
b.profit margin and asset turnover ratio.
c.times interest earned and debt to stockholders’ equity ratio.
d.profit margin and free cash flow.
132.Return on common stockholders’ equity ratio is most closely related to
a.gross profit rate and operating expenses to sales ratio.
b.profit margin and free cash flow.
c.times interest earned and debt to stockholders’ equity ratio.
d.return on asset ratio and leverage (debt to total assets ratio).
133.Long-term creditors are usually most interested in evaluating
a.liquidity.
b.marketability.
c.profitability.
d.solvency.
134.Which one of the following would be considered a long-term solvency ratio?
a.Receivables turnover.
b.Return on total assets.
c.Current cash debt coverage ratio.
d.Debt to total assets ratio.
135.Stockholders are most interested in evaluating
a.liquidity.
b.solvency.
c.profitability.
d.marketability.
25. 9.22 The manufacturer of cans of salmon that are supposed to have a net weight of 6 ounces tells you
9.22 The manufacturer of cans of salmon that are supposed to have a net weight of 6 ounces tells you that the net weight is actually a normal random variable with a mean of 6.05 ounces and a standard deviation of .18 ounces. Suppose that you draw a random sample of 36 cans. a. Find the probability that the mean weight of the sample is less than 5.97 ounces. b. Suppose your random sample of 36 cans of salmon produced a mean weight that is less than 5.97 ounces. Comment on the statement made by the manufacturer
26. 10.12 A bank with a branch located in a commercial district of a city has the business objective of.
10.12 A bank with a branch located in a commercial district of a city has the business objective of developing an improved process for serving customers during the noon-to- 1 P.M. lunch period. Management decides to first study the waiting time in the current process. The waiting time is defined as the time that elapses from when the customer enters the line until he or she reaches the teller window. Data are collected from a random sample of 15 customers, and the results (in minutes) are as follows (and stored in ): Suppose that another branch, located in a residential area, is also concerned with improving the process of serving customers in the noon-to-1 P.M. lunch period. Data are collected from a random sample of 15 customers, and the results are as follows (and stored in ): a. Assuming that the population variances from both banks are equal, is there evidence of a differen9.66 5.90 8.02 5.79 8.73 3.82 8.01 8.35ce in the mean waiting time between the two branches? (Use ) b. Determine the p-value in (a) and interpret its meaning. c. In addition to equal variances, what other assumption is necessary in (a)? d. Construct and interpret a 95% confidence interval estimate of the difference between the population means in the two branches.
27. Kubin Company's relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 unit
Kubin Company's relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales cammissions Variable administrative expense Average Cost per Unit $ 8.10 $ 5.10 $ 2.60 $ 6.10 ?4.60 $ 3.60 $ 2.10 $ 1.60 Required 1. For financial accounting purposes, what is the total amount of product costs incurred to make 23,000 units? 2. For financial accounting purposes, what isthe total amount of period costs incurred to sell 23,000 units? 3. For inancial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 21,000 units? (For all requirements, do not round intermediate calculations.) 1. Total amount of product costs 2. Total amount of period costs incurred 3. Total amount of product Costs 4. Total amount of period costs $503,700 $273,700 $547,500 $249,900
28. Vulcan Company's contribution format income statement for June is given below: Vulcan Company Inc...
Company's contribution format income statement for June is given below: Vulcan Company Income Statement For the Month Ended June 30 Sales 900,000 Variable expenses 408,000 492,000 Contribution margin 480,000 Fixed expenses 12,000 Net operating income Management is disappointed with the company's performance and is wondering what can be done to improve profits. By examining sales and cost records, you have determined the following a. The company is divided into two sales territories-Northern and Southern. The Northern Territory recorded $400,000 in sales and $208,000 in variable expenses during June, the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $180,000 and $145,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories. b. The company is the exclusive distributor for two products-Paks and Tibs. Sales of Paks and Tibs totaled $160,000 and $240,000, respectively, in the Northern territory during June. Variable expenses are 28% of the selling price for Paks and 68% for Tibs. Cost records show that $78,400 of the Northern Territory's fixed expenses are traceable to Paks and $55.200 to Tibs, with the remainder common to the two products
29. Gant Accounting performs two types of services. Audit and Tax. Gant's overhead costs consist of c...
Gant Accounting performs two types of services. Audit and Tax. Gant's overhead costs consist of computer support. $300,000; and legal support, $150,000. Information on the two services is: Audit Tax Direct labor cost $50,000 $100,000 CPU minutes 40,000 10,000 Legal hours used 200 800 Overhead applied to audit services using activity-based costing is $150,000. $180,000. $270,000. $300,000.
Chapter 2 Analyzing Transactions PR 2-4A Journal entries and trial balance Elite Realty acts as an agent in buying, obi. 1, 2, 3, 4 trial selling, renting, and managing real estate, The unadjusted balance on March 31, 2018, follows: Elite Realty Unadjusted Trial Balance March 31, 2018 Cash 26,300 Accounts Receivable. 61,500 Prepaid Insurance 3,000 office Suppl 1800 16 Accounts Payable 21 14.000 Unearned Rent Notes Payable. Common Stock. Retained Earnings Dividends Fees Earned 41 240,000 Salary and Commission Expense 148.200 Rent Expense 52 30,000 Advertising Expense 17.800 Automobile Expense 5.500 Miscellaneous Expen 59 300,000 The following business transactions were completed by Elite Realty during April 2018 Apr 1. Paid rent on office for month, $6,500. 2. Purchased office supplies on account $2,300 S. Paid insurance premiums, $6000. 10. Received cash from clients on account, S52,300. 15. purchased land for a future building ste for s20oooo, paying s30ooo in cash and giving anote payable for the remainder 17. paid creditars on account, $6,450. 23. Paid advertising expense, $4.300. Enter the following transactions on Page 19 of the two-column journal. 27. Discovered an emor in computing a commission, receivedcash from the salesperson forthe 28, overpayment, charges for an automobile) s1,soo, Paid automobile expense (including rental 29, Paid miscellaneous expenses, $1,400. 30. Recorded revenue earned and billed to clients during the month, sszooo. 30. Pald salaries and commissions for the month, s11 900. 30. paid dividends, $4,000 for useasa parking lot in May and 30. Rented and purchased on April 15 to local merchants association ofs10000 June during a street rebuilding program received advance payment Instructions nt the e balance column.