Achieve Excellence in Accounting Research Papers
1. External and Internal Events Explain how an external event diffe
External and Internal Events Explain how an external event differs from an internal event.
2. The standard cost card for the single product manufactured by
The standard cost card for the single product manufactured by Cutter, Inc., is given below:
Manufacturing overhead is applied to production on the basis of standard direct labor-hours. During the year, the company worked 37,000 hours and manufactured 9,500 units of product. Selected data relating to the company’s fixed manufacturing overhead cost for the year are shown below:
Required:
1. What were the standard hours allowed for the year’s production?
2. What was the amount of fixed overhead cost contained in the flexible budget for the year?
3. What was the fixed overhead budget variance for the year?
4. What denominator activity level did the company use in setting the predetermined overhead rate for theyear?
3. Roland Company uses special strapping equipment in its packaging business.
Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2011 for $10,100,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2012, new technology was introduced that would accelerate the obsolescence of Roland's equipment. Roland's controller estimates that expected future net cash flows on the equipment will be $6,300,000 and that the fair value of the equipment is $5,600,000. Roland intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Roland uses straight-line depreciation. (a) Prepare the journal entry (if any) to record the impairment at December 31, 2012. (b) Prepare the journal entry for the equipment at December 31, 2013. The fair value of the equipment at December 31, 2013, is estimated to be $5,900,000.(c) repeat the requirements for (a) and (b), assuming that Roland intends to dispose of the equipment and that it has not been disposed of as of December 31, 2013.
4. If a warehouse received 250 orders in April and 300 in May, the percentage of increase in orders...
If a warehouse received 250 orders in April and 300 in May, the percentage of increase in orders from April to May was 20%.
5. 116.Which of the following would not be classified as a contra account? a.Sales Revenue b.Sales...
116.Which of the following would not be classified as a contra account?
a.Sales Revenue
b.Sales Returns and Allowances
c.Accumulated Depreciation
d.Sales Discounts
117.Which of the following accounts has a normal credit balance?
a.Sales Returns and Allowances
b.Sales Discounts
c.Sales
d.Freight-Out
118.When a seller grants credit for returned goods, the account that is credited is
a.Sales Revenue.
b.Sales Returns and Allowances.
c.Inventory.
d.Accounts Receivable.
119.The respective normal account balances of Sales Revenue, Sales Returns and Allowances, and Sales Discounts are
a.credit, credit, credit.
b.debit, credit, debit.
c.credit, debit, debit.
d.credit, debit, credit.
120.A merchandising company using a perpetual system will make
a.the same number of adjusting entries as a service company does.
b.one more adjusting entry than a service company does.
c.one less adjusting entry than a service company does.
d.different types of adjusting entries compared to a service company.
121.In preparing closing entries for a merchandising company, the Income Summary account will be credited for the balance of
a.sales revenue.
b.inventory.
c.sales discounts.
d.freight-out.
122.A merchandising company using a perpetual system may record an adjusting entry by
a.debiting Income Summary.
b.crediting Income Summary.
c.debiting Cost of Goods Sold.
d.debiting Sales Revenue.
123.When the physical count of RNA Company inventory had a cost of $3,400 at year end and the unadjusted balance in Inventory was $3,600, RNA will have to make the following entry:
a.Cost of Goods Sold....................................200
Inventory...........................................200
b.Inventory...........................................200
Cost of Goods Sold..........................................200
c.Income Summary.....................................200
Inventory...........................................200
d.Cost of Goods Sold....................................3,600
Inventory...........................................3,600
124.Mineral Makers (MM) Company keeps its inventory records using a perpetual system. At December 31, 2014 the unadjusted balance in the Inventory account is $64,000. Through a physical count on December 31, 2014, MM determines that its actual inventory at year-end is $62,500. Which of the following is true regarding the statement of financial position and the income statement of MM at December 31, 2014?
a.Inventory is increased and cost of goods sold is decreased by $1,500.
b.Inventory is decreased and cost of goods sold is increased by $1,500.
c.Inventory is increased and cost of goods sold is increased by $1,500.
d.Inventory is decreased and cost of goods sold is decreased by $1,500.
125.The sales revenue section of an income statement for a retailer would not include
a.Sales discounts.
b.Sales revenue.
c.Net sales.
d.Gross profit.
6. 1. An ___________ supports long-term strategic decision making. 2. A business related exchange is...
1. An ___________ supports long-term strategic decision making.
2. A business related exchange is known as a ___________.
3. M-commerce involves paying for goods and services using a ___________.
4. The activity of creating an information system is called ___________.
5. When a person has the ability to use a computer they are known as being ___________.
7. The following merchandise transactions occurred in December. Both companies use a perpetual...
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 Pictou Ltd. sold goods to Thames Corp. for $68,000, terms 2/10, n/30, FOB shipping point. The inventory had cost Pictou $36,000. 7 Shipping costs of $900 were paid by the appropriate company. 8 Thames returned unwanted merchandise to Pictou. The returned merchandise has a sales price of $2,100, and a cost of $1,150. It was restored to inventory. 11 Pictou received the balance due from Thames. Instructions (a) Record the above transactions in the books of Pictou. (b) Record the above transactions in the books of Thames. (c) Calculate the gross profit earned by Pictou on the above transactions.
8. Chapter 2 Applying Excel (A) i) Saved Help 2 Required information This Excel worksheet relates to th
Chapter 2 Applying Excel (A) i) Saved Help 2 Required information This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 2-5 Part 2 of 2 2. Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $390,000, keeping all of the other data the same as in the original example. Consider a new job, Job 408, with the following characteristics: 10 points A B eBook Chapter 2: Applying Excel Print References 3 Department Cost summary for Job 408 Assembly 4 Milling Machine-hours 5 80 2 Direct labor-hours 20 8 Direct materials cost S 200 760 Direct labor cost 136 360 8 EXHIBIT 2-5 Dickson Company: An Example Using Multiple Predetermined Overhead Rates Step 1: Calculate the estimated total manufacturing overhead cost for each department. Miling Department Overhead Cost (Y: Assembly Department Overhead Cost (Y): =$390,000+$120 0 MHx 60,000 MHs) =$510,000 DLH x 80,000 DLHS) 5500,000 = $500.000 + $300,000 390,000 2.00 $800,000 Step 2: Calculate the predetermined overhead rate in each department. Milling Department Overhead Rate: Assembly Department Overhedad Rate: $510,000 = 60 000 machine-hours $800.0 =80000 dlrect labor-hours $10.00 per direct labor-hour = $8.50 per machine-hour Step 3: Calculate the amount overhead applied from both departments to Job 407. MiNing Department: Overhead Applied to Job 407 Assembly Department: Overhead Applied to Job 407 =$8.50 per MHx 90 MHs = $ 765 $10.00 per DLH x 20 DLHS = $200 Step 4: Calculate the total job cost for Job 407. Assembly $370 $280 $200 Milling $800 Total Direct materials $1,170 350 Direct labor 70 $765 Manufacturing overhead applied 965 $2,485 Total cost of Job 407 Step 5: Calculate the selling price for Job 407. Total cost of Job 407 $2,485.00 Markup ($2,485 x 75% ) 1,863.75 $4,348.75 Selling price of Job 407 Part 2 of 2 In your worksheet, enter this new data in the cells for Job 407. 1C What is the new selling price for Job 408? (Round your final answer to 2 decimal places.) points Selling price for Job 408 eBook Print 3. Without changing the data for the job from requirement 2 above, what is the selling price for Job 408 if the total number of machine- hours in the Assembly Department increases from 3,000 machine-hours to 4,000 machine-hours? (Round your final answer to 2 decimal places.) References Selling price for Job 408 the Assembly Department to 3,000 machine-hours. And keep the job data the same 4. Restore the total number of machine-hours as it was in Requirement 2. What is the selling price for Job 408 if the total number of direct labor-hours in the Assembly Department decreases from 80,000 direct labor-hours to 50,000 direct labor-hours? (Round your final answer to 2 decimal places.) Selling price for Job 408
9. Holz Disc Golf Course was opened on March 1 by Ian Holz. The following selected events and transa...
Holz Disc Golf Course was opened on March 1 by Ian Holz. The following selected events and transactions occurred during March. Mar. 1 Invested $23,000 cash in the business. 3 Purchased Rainbow Golf Land for $13,000 cash. The price consists of land $10, 100, shed $1, 900, and equipment $1,000. (Make one compound entry.) 5 Paid advertising expense of $800. 6 Paid cash $610 for a one-year insurance policy. 10 Purchased golf discs and other equipment for $1,000 from Stevenson Company payable in 30 days. 18 Received $1, 300 in cash for golf fees. (Holz records golf fees as service revenue). 19 Sold 100 coupon books for $20 each. Each book contains 4 coupons that enable the holder to play one round of disc golf. 25 Withdrew $700 cash for personal use. 30 Paid salaries of $300. 30 Paid Stevenson Company in full. 31 Received $2, 100 cash for golf fees. Journalize the March transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
10. “A good system of costing must place the same emphasis on cost control as on cost ascertainment.”...
“A good system of costing must place the same emphasis on cost control as on cost ascertainment.” Comment.
11. Describe how you would determine the best decision using the EMV criterion with a decision tree.
Describe how you would determine the best decision using the EMV criterion with a decision tree.
12. 1. The left hemisphere of the cerebral cortex is more specialized in language functions
1. The left hemisphere of the cerebral cortex is more specialized in language functions and processing information sequentially. The right hemisphere tends to specialize in spatial perception and distinguishing patterns. These are examples of cortex
A. adaptation.
B. lateralization.
C. evolution.
D. neuroplasticity.
2. If you adopt the _______ perspective, you ll reject an emphasis on what goes on in people s minds in favor of focusing on measurable behaviors that can be objectively measured.
A. behavioral
B. neuroscience
C. psychodynamic
D. cognitive
3. In the ear, the basilar membrane and hair cells are found in the
A. oval window.
B. auditory nerve.
C. cochlea.
D. anvil and stirrup.
4. A clinical experiment is designed in such a way that neither the researchers dispensing a treatment nor the persons in the experimental or control groups know if they re getting a sugar pill or a new drug. This sort of experimental design is employing a/an _______ procedure.
A. placebo
B. experimenter expectations
C. reverse psychology
D. double-blind
13. You are an accounting intern working for SpringFit Corporation. You have recently been assigned t...
You are an accounting intern working for SpringFit Corporation. You have recently been assigned to help one of the accountants who is doing an internal audit of the business. You will be assisting with a review of the payables issued by SpringFit Corporation. Your first task is to review the previous year’s journal entries, shown below.
1. What is the yearly payment amount required for the Notes Payable (assume it is an installment note)?
2. WHat is the interest rate on the Notes Payable?
Journal Entries, Year 1
PAGE 15
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
1 | Jan. 1 | Cash | 1,008,960.00 | ||
2 | Premium on Bonds Payable | 58,960.00 | |||
3 | Bonds Payable | 950,000.00 | |||
4 | Jun. 30 | Interest Expense | 18,427.00 | ||
5 | Premium on Bonds Payable | 2,948.00 | |||
6 | Cash | 21,375.00 | |||
7 | Jul. 1 | Cash | 1,921,280.00 | ||
8 | Discount on Bonds Payable | 78,720.00 | |||
9 | Bonds Payable | 2,000,000.00 | |||
10 | Oct. 1 | Cash | 1,500,000.00 | ||
11 | Notes Payable | 1,500,000.00 | |||
12 | Dec. 31 | Interest Expense | 18,427.00 | ||
13 | Premium on Bonds Payable | 2,948.00 | |||
14 | Cash | 21,375.00 | |||
15 | 31 | Interest Expense | 22,500.00 | ||
16 | Interest Payable | 22,500.00 | |||
17 | 31 | Interest Expense | 41,560.00 | ||
18 | Discount on Bonds Payable | 6,560.00 | |||
19 | Cash | 35,000.00 | |||
20 | 31 | Income Summary | 100,914.00 | ||
21 | Interest Expense | 100,914.00 |
14. 115.A credit balance in which of the following accounts would indicate a likely error? a.Fees Earned
115.A credit balance in which of the following accounts would indicate a likely error?
a.Fees Earned
b.Salary Expense
c.Janet James, Capital
d.Accounts Payable
116.A debit balance in which of the following accounts would indicate a likely error?
a.Salaries Expense
b.Notes Payable
c.Edgar Martin, Drawing
d.Supplies
117.Which of the following entries records the payment of an account payable?
a.debit Cash; credit Accounts Payable
b.debit Accounts Receivable; credit Cash
c.debit Cash; credit Supplies Expense
d.debit Accounts Payable; credit Cash
118.Which of the following entries records the investment of cash by Taylor Thomas, owner of a proprietorship?
a.debit Taylor Thomas, Capital; credit Accounts Receivable
b.debit Cash; credit Taylor Thomas, Capital
c.debit Taylor Thomas, Drawing; credit Cash
d.debit Cash; credit Taylor Thomas, Drawing
119.Which of the following entries records the payment of a bill for your insurance premium?
a.debit Prepaid Insurance; credit Cash
b.debit Insurance Payable; credit Accounts Receivable
c.debit Accounts Payable; credit Cash
d.debit Cash; credit Prepaid Insurance
120.Which of the following entries records the withdrawal of cash by Sally Anderson, owner of a proprietorship, forpersonal use?
a.debit Sally Anderson, Capital; credit Cash
b.debit Sally Anderson, Drawing; credit Cash
c.debit Salaries Expense; credit Cash
d.debit Salaries Expense; credit Salaries Payable
121.Office supplies were sold by Janer's Cleaning Service at cost to another repair shop, with cash received. Which ofthe following entries for Janer's Cleaning Service records this transaction?
a.Office Supplies, debit; Cash, credit
b.Office Supplies, debit; Accounts Payable, credit
c.Cash, debit; Office Supplies, credit
d.Accounts Payable, debit; Office Supplies, credit
122.Office supplies purchased by Janer's Cleaning Service on account were returned. Which of the following entriesfor Janer's Cleaning Service records this transaction?
a.Cash, debit; Office Supplies, credit
b.Office Supplies, debit; Accounts Receivable, credit
c.Accounts Payable, debit; Office Supplies, credit
d.Office Supplies, debit; Accounts Payable, credit
123.Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer'sCleaning Service records this transaction?
a.Cash, debit; Debbi Janer, Capital, credit
b.Accounts Payable, debit; Cash, credit
c.Accounts Receivable, debit; Cash, credit
d.Accounts Payable, debit; Account Receivable, credit
124.The process of initially recording a business transaction is called
a.closing
b.posting
c.journalizing
d.balancing
15. answer and show your solution Problem 17-8 (AICPA Adapted) On July 1, 2019 Blush Company purchased 2
answer and show your solution shares of an investee for P4,000,000 when the fair value of net assets was P20,000,000. Blush Company has the ability to exercise significan influence over the operating and financial policies of the investee. The following data concerning the investee are available: 6 months ended 12 months ended December 31,2019 December 31,2019 1,600,000 1,000,000 3,000,000 1,900,000 Net income Dividend declared and paid In the income statement for the year ended December 31, 2019, what amount of income should be reported from the investment? a. 200,000 b. 320,000 c. 380,000 d. 600,000 Problem 17-9 (AICPA Adapted) On April 1, 2019, August Company purchased 40% of the outstanding ordinary shares of an associate for P4,000,000. On this date, the investee's net assets totaled P8,000,000 and August Company cannot attribute the excess of cost of the investment over the equity in the investee's nat assets to any particular factor. The investee reported net income of P1,000,000 for the current year What is the maximum amount which could be included in August Company's income before tax to reflect its "equity in earnings of the investee" for the current year? 270,000 b. 360,000 300,000 d. 400,000 a. C. 448
16. Roscoe has attempted to journalize the closing entries for Chandler, Inc. on this panel. He's no
Roscoe has attempted to journalize the closing entries for Chandler, Inc. on this panel. He's not sure if he's journalized the entries correctly, and asks you to review them. You find that two of the entries are correct, but two are incorrect. Determine which entries are incorrect, and journalize all four of the closing entries for Chandler, Inc. as of Dec. 31 on the Journal panel. PAGE 25 JOURNAL ACCOUNTING EQUATION POST, REF DEBIT CREDIT LIABILITIES DATE DESCRIPTION ASSETS EQUITY Closing Entries Income Summary 294.800.00 Dec. 31 Fees Earned 185,600.00 1 3 Rent Revenue 92.000.00 Interest Revenue 17,200.00 Income Summary 31 188,800.00 6 Salaries Expense 71,000.00 Selling Expense 37,600.00 Income Taxes Expense 15,000.00 1 9 Depreciation Expense 47,200.00 10 Insurance Expense 17,000.00 11 Miscellaneous Expense 1,000.00 1 12 Retained Earnings 31 483,600.00 13 Income Summary 483.600.00 14 Retained Earnings 31 15 5,000.00 5,000.00 Dividends 16 ADJUSTED TRIAL BALANCE December 31, 2017 CREDIT ACCOUNT TITLE DEBIT 1 Cash 67,000.00 29,000.00 2 Accounts Receivable 3Prepaid Insurance 16,000.00 4 Office Equipment 60,000.00 5Accumulated Depreciation-Office Equipment 40,000.00 6 Accounts Payable 6,000.00 7 Salaries Payable 8,000.00 Income Taxes Payable 4,000.00 8 9 Common Stock 2,000.00 10 Retained Earnings 11,000.00 5,000.00 11 Dividends 12 Fees Earned 185,600.00 13 Rent Revenue 92,000.00 14 Interest Revenue 17,200.00 15 Salaries Expense 71,000.00 16 Selling Expense 37,600.00 Income Taxes Expense 15,000.00 17 18 Insurance Expense 17,000.00 19 Depreciation Expense 47,200.00 20 Miscellaneous Expense 1,000.00 365.800.00 365,800.00 21 Totals