Ethics in Accounting:Winter 2024 Edition for Student Success
15. Your uncle will sell you his bicycle shop for $240,000, with "seller financing," at a 6.0% nominal a
Your uncle will sell you his bicycle shop for $240,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be? $3,722.60 $4,712.16 $4,476.55 $3,675.48 $4,146.70
16. Masterson Company's budgeted production calls for 56,000 liters in April and 52,000 liters in May...
Show transcribed image text Masterson Company's budgeted production calls for 56,000 liters in April and 52,000 liters in May of a key raw material that costs $1.85 per liter. Each month's ending raw materials inventory should equal 30% of the following month's budgeted materials. The January 1 memory for this material is 16, 800 liters. What is the budgeted cost of materials purchases for April? $106, 560 $101, 380 $103, 600 middot $72, 520 $132, 460
17. Noah and Joan Arc's Tax Return 1 answer below » Noah and Joan Arc live with their family at 4342...
Noah and Joan Arc's Tax Return 1 answer below »
Noah and Joan Arc live with their family at 4342 Josie Jo, Santee, CA 92071.
Noah's SSN is###-##-####Joan's is 45687542
Both are in their mid-30s and enjoy good health and eyesight.
Noah owns and operates a pet store and Joan is a fire-firefighter for the city.
1. The Arcs have 2 children, a son named Billie Bob (SSN 598-01-245), who is 7 years old. A daughter name Mary Sue (SSN###-##-####, who is 4 years old.
The Arcs paid $2,800 to the roundup Day Care Center to take care of Mary Sue while they worked. Because Joan is a firefighter, she was home in the afternoon to care for Billie Bob after
View complete question »Noah and Joan Arc live with their family at 4342 Josie Jo, Santee, CA 92071.
Noah's SSN is###-##-####Joan's is 45687542
Both are in their mid-30s and enjoy good health and eyesight.
Noah owns and operates a pet store and Joan is a fire-firefighter for the city.
1. The Arcs have 2 children, a son named Billie Bob (SSN 598-01-245), who is 7 years old. A daughter name Mary Sue (SSN###-##-####, who is 4 years old.
The Arcs paid $2,800 to the roundup Day Care Center to take care of Mary Sue while they worked. Because Joan is a firefighter, she was home in the afternoon to care for Billie Bob after school.
2. For the current year, Joan's W-2 from the city fire department showed the following wages:
Wages
$ 27,000
Federal Income tax withheld
$ 5,050
State Income tax withheld
$ 1,200
FICA tax withheld
$ 2,066
Noah made some estimated federal income tax payments of $12,000 and estimated state income tax payments of $1,000 during the year.
3. Noah's pet store is located at Santee, Ca, 92071. The name of the store is "The Arc," and its taxpayer ID number is The beginning inventories and ending inventories are both $10,000. The revenue and expenses for the year are as follows:
Sales Revenue
$ 144,000
Expenses:
Cost of Sales
$ 62,000
Insurance
$ 750
Accounting Fees
$ 1,800
Wages
$ 25,000
Payroll Taxes
$ 2,250
Utilities
$ 2,700
Rental expense
$ 7,200
Total Expenses
$ (101,700)
Net Income
$ 42,300
4. Noah and Joan paid the following amounts during the year (all by check):
Political contributions
$250
Church donations (for which a written acknowledgement was received)
$2,300
Real estate taxes on their home
$1,200
Mortgage interest for purchase of home
$ 12,000
Tax return preparation fees
$ 350
Credit card interest
$220
Automobile insurance premium
$600
Uniforms for Joan
$125
5. Noah likes to invest in the stock market. During the year he sold the following securities, none of which were qualified small business companies:
Stock
Blue Co.
02/11/03 (Acquired)
08/15/10 (Sold)
4,500 (Sale Price)
2,300 (Cost Price)
Yellow Co.
01/31/10 (Acquired)
06/05/10 (Sold)
6,000 (Sale price)
5,000 (Cost price)
Red Co.
10/02/04 (Acquired)
10/07/10 (Sold)
12,000 (Sale price)
1,600 (Cost price)
The expenses of sale are included in the cost basis. Noah has a long-term capital loss carryover from last year of $2,300.
6. During the year, Noah and Joan received the following qualifying dividends:
Exxon
$ 320
Coca-cola
$ 268
Texas Utilities
$ 220
7. Noah and Joan own rental property located atXXXXX, San Diego, CA 92115.
The revenue and expenses for the year are as follows:
Rent Income
$ 14,000
Insurance
$ 550
Interest Expense
$ 7,000
Property taxes
$ 1,000
Miscellaneous Expenses
$ 600
Depreciation (The house was acquired in 1990)
$ 3,000
Required:
Although Noah and Joan do not believe their tax return will be unduly complicated, they do realize their limitations and come to you for assistance. You are to prepare their federal income tax return in good form, signing the return as the preparer. Do not complete a California state income tax return. Assume and other information (addresses, etc.) that you may need. The following forms and schedules are required, 2014 edition:
Form 1040, Schedule A, Schedule B, Schedule C, Schedule D, Schedule E, Schedule SE, Form 2441, Form 8949, Qualified Dividends and Capital Gain Tax Worksheet.
18. 1.1 Four different beverages are sold at a fast-food restaurant: soft drinks, tea, coffee, and...
1.1 Four different beverages are sold at a fast-food restaurant: soft drinks, tea, coffee, and bottled water. a. Explain why the type of beverage sold is an example of a categorical variable. b. Explain why the type of beverage sold is an example of a nominal scaled variable. 1.2 Coffee is sold in three sizes at a fast-food restaurant: small, medium, and large. Explain why the beverage size of coffee is an example of an ordinal scaled variable
19. A branch office or business segment that shows negative operatin
A branch office or business segment that shows negative operating income should be shutdown. Do you agree? Why?
20. Determine the balance of the Service Contracts in Process account. (Use a T-account.)
Shown below are the job cost related accounts for the law firm of Jack, Bob, and Will and their manufacturing equivalents:
Law Finn Accounts | Manufacturing Finn Accounts |
Supplies | Raw Materials |
Salaries and Wages Payable | Factory Wages Payable |
Operating Overhead | Manufacturing Overhead |
Service Contracts in Process | Work in Process |
Cost of Completed Service Contracts | Cost of Goods Sold |
Cost data for the month of March follow.
- Purchased supplies on account $1,500.
- Issued supplies $1,200 (60% direct and 40% indirect).
- Assigned labor costs based on time cards for the month which indicated labor costs of $60,000 (80% direct and 20% indirect).
- Operating overhead costs incurred for cash totaled $40,000.
- Operating overhead is applied at a rate of 90% of direct attorney cost.
- Work completed totaled $75,000.
Instructions
(a)Journalize the transactions for March. (Omit explanations.)
(b)Determine the balance of the Service Contracts in Process account. (Use a T-account.)
21. Calculate all Material Variances
Mixers Ltd. is engaged in producing a standard mix using 60 kg of chemical X and 40 kg of chemical
Y. The standard loss of production is 30%. The standard price of X is Rs.5 per kg and of Y is Rs.10 per kg. The actual mixture and yield were as follows:
X – 80 kg @ Rs.4.50 per kg
Y – 70 kg @ Rs.8.00 per kg
Actual yield 115 kg.
Calculate all Material Variances
22. Exercise 3-18 (Part Level Submission) Blue Spruce Corp. provides security services. Selected tran...
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23. You have just turned 22 years old, received your bachelor’s degree, and accepted your first job....
You have just turned 22 years old, received your bachelor’s degree, and accepted your first job. Now you must decide how much money to put into your retirement plan. The plan works as follows: Every dollar in the plan earns 7.3% per year. You cannot make withdrawals until you retire on your 65th birthday. After that, you can make withdrawals as you see fit. You decide that you will plan to live to 100 and work until you turn 65. You estimate that to live comfortably in retirement, you will need $90,000 per year, starting at the end of the first year of retirement and ending on your 100th birthday. You will contribute the same amount to the plan at the end of every year that you work How much do you need to contribute each year to fund your retirement?
24. 1. ABC company wishes to arrange for overdraft facilities with its bankers during the period from...
1. ABC company wishes to arrange for overdraft facilities with its bankers during the period from April1 to June 30, 2018 when it will be manufacturing mostly for stock. Prepare Cash Budget for the above period from the following data, indicating the extent of Bank facilities, the company will require at the end of each month. a. Sales Purchases Wages $ $ $ February 2,00,000 2,50,000 10,000 March 2,20,000 2,80,000 11,000 April 2,50,000 3,00,000 12,000 May 3,00,000 3,40,000 13,000 June 2,80,000 3,20,000 12,000
25. A working capital technique that increases the payable float and therefore delays the outflow of...
A working capital technique that increases the payable float and therefore delays the outflow of cash is
- Concentration banking.
- A draft.
- Electronic Data Interchange (EDI).
- A lockbox system.
26. On July 1, 2006, Town Company purchased for $540,000 a warehouse building and the land on which it...
On July 1, 2006, Town Company purchased for $540,000 a warehouse building and the land on which it is located. The following data were available concerning the property:
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Current appraised value | Seller’s original cost | |
Land | $200,000 | $140,000 |
Warehouse building | 300,000 | 280,000 |
$500,000 | $420,000 |
Town should record the land at
- $140,000
- $180,000
- $200,000
- $216,000
27. Exercise 1-6 Traditional and Contribution Format Income Statements [LO1-6] Cherokee Inc. is a mer...
Exercise 1-6 Traditional and Contribution Format Income Statements [LO1-6] Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 14,000 Selling price per unit $ 16 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 2 Total fixed selling expense $ 18,000 Total fixed administrative expense $ 16,000 Beginning merchandise inventory $ 11,000 Ending merchandise inventory $ 23,000 Merchandise purchases $ 85,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
Exercise 1-6 Traditional and Contribution Format Income Statements [LO1-6]
Cherokee Inc. is a merchandiser that provided the following information: |
Number of units sold | 14,000 | |
Selling price per unit | $ | 16 |
Variable selling expense per unit | $ | 2 |
Variable administrative expense per unit | $ | 2 |
Total fixed selling expense | $ | 18,000 |
Total fixed administrative expense | $ | 16,000 |
Beginning merchandise inventory | $ | 11,000 |
Ending merchandise inventory | $ | 23,000 |
Merchandise purchases | $ | 85,000 |
Required: | |||||||||||||||||||||||||||||||||||||
1. | Prepare a traditional income statement. | ||||||||||||||||||||||||||||||||||||
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2. | Prepare a contribution format income statement
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28. 91) Two information systems that support the entire organization are _________ and __________. a)...
91) Two information systems that support the entire organization are _________ and __________.
a) enterprise resource planning systems, dashboards
b) transaction processing systems, office automation systems
c) enterprise resource planning systems, transaction processing systems
d) expert systems, office automation systems
e) expert systems, transaction processing systems
92) _____ systems are designed to correct a lack of communications among _____.
a) Office automation systems, expert systems
b) Transaction processing systems, functional area information systems
c) Enterprise resource planning systems, functional area information systems
d) Dashboards, office automation systems
e) Functional area information systems, enterprise resource planning systems
93) When your purchases are swiped over the bar-code reader at the point-of-sale terminals at Wal-Mart, a _____ records the data.
a) transaction processing system
b) functional area information system
c) dashboard
d) enterprise resource planning system
e) office automation system
94) Supply chain systems are which type of information system?
a) departmental information systems
b) enterprisewide information systems
c) interorganizational information systems
d) end-user computing systems
e) individual information systems
95) Which information system is the most closely associated with the Internet?
a) transaction processing systems
b) functional area information systems
c) electronic commerce systems
d) office automation systems
e) individual information systems
96) _____ attempt to duplicate the work of human experts by applying reasoning capabilities.
a) Expert systems
b) Dashboards
c) Functional area information systems
d) Decision support systems
e) Business intelligence systems
97) An information system that analyzes credit card applications and suggests approval or denial is a(n) ________.
a) expert system
b) dashboard
c) functional area information system
d) decision support system
e) business intelligence system
98) Which of the following statements is false?
a) IT ultimately decreases the number of managers and experts.
b) IT makes managers more productive.
c) IT increases the number of employees who can report to a single manager.
d) IT reduces stress by giving managers more time to make decisions.
e) IT decreases the number of promotional opportunities.
99) Which of the following statements about the potential impact of IT on non-managerial workers is true?
a) IT will create more jobs than it eliminates.
b) Employees will feel a higher degree of loyalty towards their company.
c) IT could cause employees to experience a loss of identity.
d) The flexibility of IT can minimize stress on the job.
100) If you were a manager in the future, which of the following statements would be false?
a) The people I manage will likely be dispersed geographically.
b) The size of my team will likely be smaller than teams of today.
c) There will be less emphasis on office politics.
d) Many of my decisions will be “real time”.
e) I will need IT tools to handle the data I utilize to make decisions.