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Fall Accounting Modules: Expert Help for Research Papers
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1. What are the shortcomings of waiting until the actual factoryWhat are the shortcomings of waiting until the actual factory overhead expenses are known before recording such costs on the job cost sheets?
2. Simpson Auto Body Repair purchased $20,000 of Machinery.
Simpson Auto Body Repair purchased $20,000 of Machinery. The company paid $8,000 in cash at the time of the purchase and signed a promissory note for the remainder to be paid in four monthly installments. How will this transaction affect the accounting equation?
A. Increase Assets (Machinery $20,000) and decrease Liabilities (Accounts Payable $20,000)
B. Increase Total Assets by a net amount of $12,000 (increase Machinery $20,000 and decrease Cash $8,000) and increase Liabilities (Notes Payable $12,000)
C. Increase Total Assets by a net amount of $20,000 (increase Machinery $12,000 and increase Cash $8,000) and decrease Liabilities (Accounts Payable $20,000)
D. Increase Assets (Machinery $12,000) and increase Liabilities (Accounts Payable $12,000)
3. Collateral agreements for a note or bond can. Increase the risk of loss in comparison with unsec...
Collateral agreements for a note or bond can. Increase the risk of loss in comparison with unsecured debt. Reduce the issuer's assets. Reduce the risk of loss in comparison with unsecured debt. Have no effect on risk. Increase total cost for the borrower.
4. Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $199,000 and appro...
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $199,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $686,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,080,000 in total. Seida's January 1, 2018 book value equaled $1,930,000, although land was undervalued by $136,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an 8-year remaining life. During 2018, Seida reported income of $286,000 and declared and paid dividends of $100,000. Prepare the 2018 journal entries for Milani related to its investment in Seida.
5. On March 31, 2016, Susquehanna Insurance purchased an office building for $13,200,000. Based on t...
On March 31, 2016, Susquehanna Insurance purchased an office building for $13,200,000. Based on their relative fair values, one-third of the purchase price was allocated to the land and two-thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $1,400,000 and $900,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows:
Service
Life Residual
Value
Building 25 5% of cost
Furniture and fixtures 10 5% of cost
Office equipment 5 $50,000
Required:
Calculate depreciation for 2016 and 2017. (Do not round intermediate calculations.)
Depreciation 2016 2017
Building
Furniture and Fixtures
Office Equipment
6. 1. (a) Calculate total monthly remuneration of workers A, B, C and D on the basis...
1. (a) Calculate total monthly remuneration of workers A, B, C and D on the basis of the following information for the month of January 2007: 06 (i) Standard Production for each worker = 1,000 units (ii) Rate of wages = 10 paisa per unit (iii) Bonus = Tk.5 for each 1% increase over 90% of the standard. (iv) Dearness Allowance per month = 100% of piece wage. The units completed by the four workers were as under: A = 950 units, B = 900 units, C = 960 units, D = 850 units. (b) The following are the particulars given to you: 04 Standard time 10 hours Time rate Tk. 150 per hour Prepare a comparative table under Halsey plan & Rowan plan if time taken is 9 hours, 8 hours, 6 hours, 4 hours & 3 hours. The table should clearly show the amount of bonus payable, the amount of total wages & labour cost per hour under two methods. State the distinction between Halsey plan & Rowan plan in the light
7. Trout Ltd. produces a single product that has a contribution margin of 60% per unit and sold 500,000
Trout Ltd. produces a single product that has a contribution margin of 60% per unit and sold 500,000 units last year. Trout has a degree of operating leverage of 1.60 and a degree of financial leverage of 1.20 for the current year. If the sales volume were to increase by 10% this coming year, what would be the expected percentage increase in earnings per share (rounded to the nearest percent)?
8. Peterman Co. was organized on July 1, 2012. Quarterly financial statements are prepared. The...
Peterman Co. was organized on July 1, 2012. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown below.
PETERMAN CO.
Trial Balance
September 30, 2012
Unadjusted Adjusted
Dr. Cr. Dr. Cr.
Cash $ 8,700 $ 8,700
Accounts Receivable 10,400 11,500
Supplies 1,500 650
Prepaid Rent 2,200 1,200
Equipment 18,000 18,000
Accumulated Depreciation—Equipment $ –0– $ 700
Notes Payable 10,000 10,000
Accounts Payable 2,500 2,500
Salaries and Wages Payable –0– 725
Interest Payable –0– 100
Unearned Rent Revenue 1,900 1,050
Owner’s Capital 22,000 22,000
Owner’s Drawings 1,600 1,600
Service Revenue 16,000 17,100
Rent Revenue 1,410 2,260
Salaries and Wages Expense 8,000 8,725
Rent Expense 1,900 2,900
Depreciation Expense 700
Supplies Expense 850
Utilities Expense 1,510 1,510
Interest Expense 100
$53,810 $53,810 $56,435 $56,435
Instructions
(a) Journalize the adjusting entries that were made.
(b) Prepare an income statement and an owner’s equity statement for the 3 months ending September 30 and a balance sheet at September 30.
(c) If the note bears interest at 12%, how many months has it been outstanding?
9. Doyle’s Candy Company is a wholesale distributor of candy
Doyle’s Candy Company is a wholesale distributor of candy. The company services groceries, convenience stores and drugstores in a large metropolitan area. Small but steady growth in sales has been achieved over the past few years while candy prices have been increasing. The company is formulat...
Answer:
A. What is Doyles Candy Company’s break-even point in boxes of candy for the current year? Fixed Costs Selling $384,000 Administrative $672,000 Total $1,056,000 BEP (boxes) = Fixed Costs / Unit Contribution = $1,056,000 / ($9.60 - $5.76) = $1,056,000 / $3.84 = 275,000 boxes B. What selling price per box must Doyle’s Candy Company change to cover the 15 percent increase in variable production costs of candy And still maintain the current contribution margin %? Existing Contribution Margin Percentage (CMP) = $3.84 / $9.60 = 40% Revised Variable Cost (RVC) after 15% increase in candy production cost = ($4.80x1.15) $0.96 = $6.48 Revised Sales(RS) - Revised Variable Cost(RVC) = 40% of Revised Sales RS - RVC = 0.4RS 0.6RS = $6.48 Or RS = $6.48 / 0.6 = $10.80 per box C. What volume of sales in dollars must Doyle’s Candy Company achieve in the coming year to maintain the same net income after taxes as projected for the current year if the selling price of candy...
10. P6-6A Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of...
P6-6A Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The income statement for the year ending December 31, 2014, is as follows.
Bonita Beauty Corporation Income Statement
For the Year Ended December 31, 2014
Sales Cost of goods sold
Variable
$31,500,000 $75,000,000
Fixed 8,610,000 40,110,000
Gross margin 34,890,000
Selling and marketing expenses
Commissions 13,500,000
Fixed costs 10,260,000 23,760,000
Operating income $11,130,000
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 8% and incur additional fixed costs of $7.5 million.
Instructions
(a) Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation’s break-even point in sales dollars for the year 2014.
(b) Calculate the company’s break-even point in sales dollars for the year 2014 if it hires its own sales force to replace the network of agents.
(c) Calculate the degree of operating leverage at sales of $75 million if (1) Bonita Beauty uses sales agents, and (2) Bonita Beauty employs its own sales staff. Describe the ad- vantages and disadvantages of each alternative.
(d) Calculate the estimated sales volume in sales dollars that would generate an identi- cal net income for the year ending December 31, 2014, regardless of whether Bonita Beauty Corporation employs its own sales staff and pays them an 8% commission or continues to use the independent network of agents.
(CMA-Canada adapted)
11. The lease agreement specifies annual payments of $25,000 beginning January 1, 2018, the beginning...
The lease agreement specifies annual payments of $25,000 beginning January 1, 2018, the beginning of the lease, and at each December 31 thereafter through 2025. The equipment was acquired recently by Crescent at a cost of $180,000 (its fair value) and was expected to have a useful life of 12 years with no salvage value at the end of its life. (Because the lease term is only 9 years, the asset does have an expected residual value at the end of the lease term of $50,995.). Both At January 1, 201 8, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. (a) the present value of the lease payments and (b) the present value of the residual value (i.e, the residual asset) are included in the lease receivable because the two amounts combine to allow the lessor to recover its net investment. ts rescent seeks a 10% retur of $1, PV of $1, FVA of $1, PVA of S1, FVAD of S1 and Required: negative numbers.) n on its lease investments. By this arrangement, the lease is deemed to be a finance lease. (FV eBook PVAD of $1 (Use appropriate factor(s) from the tables provided.) Print e the 1. What will be the References effect of the lease on Crescent's earnings for the first year? ignore taxes) (Enter decreases with 2. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Crescent? lignore taxes) 1 Effect on earnings 2. Lease receivable balance (end of year)
12. Explain why today’s managerial accountant must have a cross-functional perspective.
Explain why today’s managerial accountant must have a cross-functional perspective.
13. Able Towing Company purchased a tow truck for $60,000 on January 1, 2012.
Able Towing Company purchased a tow truck for $60,000 on January 1, 2012. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $12,000. On December 31, 2014, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2014) and the salvage value to $2,000. What was the depreciation expense for 2014?
(a) $6,000.
(b) $4,800.
(c) $15,000.
(d) $12,100.
14. 1.Making insurance payments in advance is an example of: An accrued revenue transaction. An accrued.
1.Making insurance payments in advance is an example of: An accrued revenue transaction. An accrued expense transaction. A deferred revenue transaction. A deferred expense transaction. Question 2. 2.In its 2004 annual report, Apple Computer reported the following in one of its disclosure notes: “Warranty Expense: The Company provides currently for theestimated cost for product warranties at the time the related revenue is
recognized.” This note exemplifies Apple’s use of:n Conservatism The matching principle Realization principle Full disclosure principle Question 3. 3.The purpose of closing entries is to transfer: Accounts receivable to retained earnings when an account is fully paid. Balances in temporary accounts to a permanent account. Inventory to cost of goods sold when merchandise is sold. Assets and liabilities when operations are discontinued. Question 4. 4.The best argument in support of historical cost information is: Relevance. Predictive quality for future cash flows. Materiality. Verifiability. Question 5. 5.Rent collected in
advance is: An asset account in the balance sheet. A liability account in the balance sheet. A shareholders’ equity account in the balance sheet. A temporary account, not in the balance sheet at all. Question 6. 6.Which of the following accounts are closed at the end of the accounting period? Allowance for uncollectibles Unearned revenuen Retained earnings Provision for income taxes Question 7. 7.The principal concern with accounting for related party transactions is: The size of the transactions. Differences between economic substance and legal form. The absence of legally binding contracts. The lack of accurate data to record transactions. Question 8. 8.The adjusting entry required to record accrued expenses includes: A credit to cash. A debit to an asset. A credit to an asset. A credit to liability. Question 9. 9.When converting an income statement from a cash basis to an accrual basis, cash received for services: Exceed service revenue. May exceed or be less than service revenue. Is less than service revenue. Equals service revenue. Question 10. 10.Accrued expenses: Are generally paid in services rather than cash. Result from payment before services are received. Result from services received before payment. Are deferred charges to expense.
15. Why must managers be aware of a firm’s external environment and what is gathering and analyzing comp
1. Why must managers be aware of a firm’s external environment and what is gathering and analyzing competitive intelligence and why is it important for firms to engage in it?
2. ?What effect do you think culture has on the development of a strategic plan?
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17. Stewart Industries has been producing two bearings, components B12 and B18, for use in production...
Stewart Industries has been producing two bearings, components B12 and B18, for use in production.
B12 B18
Machine hours required per unit 2.5 3.0
Standard cost per unit:
Direct material $ 2.25 $ 3.75
Direct labor 4.00 4.50
Manufacturing overhead:
Variable (See Note 1) 2.00 2.25
Fixed (See Note 2) 3.75 4.50
$12.00 $15.00
Stewart’s annual requirement for these components is 8,000 units of B12 and 11,000 units of B18. Recently, Stewart’s management decided to devote additional machine time to other product lines resulting in only 41,000 machine hours per year that can be dedicated to the production of the bearings. An outside company has offered to sell Stewart the annual supply of the bearings at prices of $11.25 for B12 and $13.50 for B18. Stewart wants to schedule the otherwise idle 41,000 machine hours to produce bearings so that the company can minimize its costs (maximize its net benefits).
Note 1: Variable manufacturing overhead is applied on the basis of direct labor hours.
Note 2: Fixed manufacturing overhead is applied on the basis of machine hours.
The net benefit (loss) per machine hour that would result if Stewart accepts the supplier’s offer of $13.50 per unit for Component B18 is
A. $.50
B. $(1.00)
C. $(1.75)
D. Some amount other than those given.
