Fall Focus: Strategies for Excelling in Accounting Modules

Published: 9 months ago

Fall Focus: Strategies for Excelling in Accounting Modules

23. 11 Which charts would be better choices to visualize a company's actual performance ratio in com

11 Which charts would be better choices to visualize a company's actual performance ratio in comparison to a target ratio? Select TwO best answers. Scatter chart with lines Area chart Pie-chart Two-series line chart Column and marker chart 12 What's the best way to center the heading text "Business Unit Revenue ($000)" across the cells in dark blue (B2-F2) for easier editing? F C F G A. P E G A E Business Unit Revenue ($000) Business Unit Revenue ($000) 2 Business 3 Business 2 Business 1 Business 2 Consolidated Business 1 Business 3 Consolidated 4 $491 $491 $463 $463 5 $435 $435 $415 $415 $393 S393 7 7 P 10 10 11 11 12 12 13 13 2014 2015 2016 2017 2018 2015 2014 2016 2017 2018 14 14 Select all cells in dark blue - Alignment Merge & Center Move the text from cell B2 to D2 and adjust the length of the columns Select all cells in dark blue Format Cells Alignment Horizontal: Center Across Selection Select all cells in dark blue - Format - Alignment - Align Center 13 When creating a waterfall chart for ABC Inc.'s 2018 net earnings, which of the data points do you need to set as totals? Select ALL correct answers. 2018 Net Earnings Waterfall ($000) SE00 $282 $500 $74 $452 $186) $(48 S15) $400 S30 $300 S(170 $200 $100 Gross Profit Salaries & Benefits Depre. & Amort. Net Earnings Reveneue COGS Interest Taxes Cash Flow and Cash Balance 2018 Productivity Rate Cost of goods sold Gross profit Salaries & benefits Taxes Interest Revenue Depreciation & amortization Net earnings 14 Which type of chart is best for showing the impact of sensitivity analysis on a business? Bullet chart Tornado chart Waterfall chart Two-series line chart Gauge chart 15 To create a bullet chart as shown below, you should first select the data and insert a: 74.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Stacked area chart Histogram chart Stacked line chart Stacked bar chart Stacked column chart

24. Peanut Company acquired 100 percent of Snoopy Company’s outstanding common stock for $300,000 on...

Peanut Company acquired 100 percent of Snoopy Company’s outstanding common stock for $300,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Problem 2-27 summarizes the first year of Peanut’s ownership of Snoopy. Problem 2-27  Peanut uses the cost method to account for investments. The following trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9:  Required a. Prepare any cost method journal entry(ies) related to the investment in Snoopy Company during 20X9. b. Prepare a consolidation worksheet for 20X9 in goodform.

25. Milner Manufacturing uses a job order cost accounting system. On

Milner Manufacturing uses a job order cost accounting system. On May 1, the company has a balance in Work in Process Inventory of $3,200 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,200. During May, a summary of source documents reveals the following.

25. 9.6A F.Brown drew up the following trial balance as at 30 September 2011. You are to draft the incom

September 2011. You are to draft the income statement for the year ending 30 September 2011 and a statement of financial position as at that date. Cr Dr 49,675 Capital Drawings Cash at bank Cash in hand Accounts receivable Accounts payable Inventory: 30 September 2010 Van 28,600 4,420 112 38,100 26,300 72,410 5,650 7,470 Office equipment Sales 391,400 Purchases 254,810 2,110 Returns inwards Carriage inwards Returns outwards 760 1,240 Carriage outwards Motor expenses Rent 2,850 1,490 8,200 680 Telephone charges Wages and salaries Insurance Office expenses Sundry expenses 39,600 745 392 216 468,615 468,615 Inventory at 30 September 2011 was £89,404

26. Renka’s Heaters selected data for October 2011 are presented her

Renka’s Heaters selected data for October 2011 are presented here (in millions):

Direct materials inventory 10/1/2011 $ 105

Direct materials purchased 365

Direct materials used 385

Total manufacturing overhead costs 450

Variable manufacturing overhead costs 265

Total manufacturing costs incurred during October 2011 1,610

Work-in-process inventory 10/1/2011 230

Cost of goods manufactured 1,660

Finished goods inventory 10/1/2011 130

Cost of goods sold 1,770

Required

Calculate the following costs:

1. Direct materials inventory 10/31/2011

2. Fixed manufacturing overhead costs for October 2011

3. Direct manufacturing labor costs for October 2011

4. Work-in-process inventory 10/31/2011

5. Cost of finished goods available for sale in October 2011

6. Finished goods inventory 10/31/2011

27. Any activity that causes resources to be consumed is called a:

Any activity that causes resources to be consumed is called a:

(a) just-in-time activity.

(b) facility-level activity.

(c) cost driver.

(d) non–value-added activity.

28. Which method is used to compute depletion?

Which method is used to compute depletion?

a. Double-declining-balance method

b. Straight-line method

c. Depletion method

d. Units-of-production method

29. Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain...

Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.

a) Using FIFO, calculate ending inventory and cost of goods sold at March 31.

B) Using LIFO, calculate ending inventory and cost of goods sold at March 31

C) Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31. (Round your intermediate and final answers to 2 decimal places.)

D) Calculate sales revenue and gross profit under each of the four methods (Round your intermediate and final answers to 2 decimal places.)

30. Bulla Corporation has two production departments, Machining and Customizing. The company uses a j...

Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: During the current month the company started and finished Job K369. The following data were recorded for this job: Required: Calculate the total amount of overhead applied to Job K369 in both departments.

31. Wildhorse Co. is about to issue $346, 800 of 6-year bonds paying an 10% interest rate, with inter...

Wildhorse Co. is about to issue $346, 800 of 6-year bonds paying an 10% interest rate, with interest payable semiannually. The discount rate for such securities is 10%. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much can Wildhorse expect to receive for the sale of these bonds? (Round answer to 0 decimal places, e.g. 2, 525.) Wildhorse can expect to receive $:

32. Inorganic Chemicals (IC) processes salt into various industrial products. In July 2012, IC...

Inorganic Chemicals (IC) processes salt into various industrial products. In July 2012, IC incurred joint costs of $100,000 to purchase salt and convert it into two products: caustic soda and chlorine. Although there is an active outside market for chlorine, IC processes all 800 tons of chlorine it produces into 500 tons of PVC (polyvinyl chloride), which is then sold. There was no beginning or ending inventories of salt, caustic soda, chlorine or PVC in July. Information for July 2012 production and sales follow:

Required:

1) Allocate the joint costs of $100,000 between caustic soda and Chlorine under: (a) the sales value at split-off method, and (b) the physical value method (4 marks)

2) Allocate the joint costs of $100,000 between caustic soda and PVC under the NRV method (4 marks)

3) Under the 3 allocation methods in (1) and (2), what is the gross margin percentage of (a) caustic soda and (b) PVC. (2 marks)

33. In preparing the annual profit plan for the coming year, Wilkens Company wants to determine the cost...

Items 1 thru 3 are based on the following information:

In preparing the annual profit plan for the coming year, Wilkens Company wants to determine the cost behavior pattern of the maintenance costs. Wilkens has decided to use linear regression by employing the equation y = a + bx for maintenance costs. The prior year’s data regarding maintenance hours and costs, and the result of the regression analysis are given below.

In the standard regression equation y = a + bx, the letter b is best described as a(n)

1. Independent variable.


2. Dependent variable.


3. Constant coefficient.


4. Variable coefficient.

The letter x in the standard regression equation is best described as a(n).

1. Independent variable.


2. Dependent variable.


3. Constant coefficient.


4. Coefficient of determination.

Based upon the data derived from the regression analysis, 420 maintenance hours in a month would mean the maintenance costs (rounded to the nearest dollar) would be budgeted at

1. $3,780


2. $3,600


3. $3,790


4. $3,746

34. Danson Company is a chemical manufacturer that supplies various

Danson Company is a chemical manufacturer that supplies various products to industrial users. The company plans to introduce a new chemical solution, called Nysap, for which it needs to develop a standard product cost. The following information is available on the production of Nysap:

(a) Nysap is made by combining a chemical compound (nyclyn) and a solution (salex), and boiling the mixture. A 20% loss in volume occurs for both the salex and the nyclyn during boiling. After boiling, the mixture consists of 9.6 liters of salex and 12 kilograms of nyclyn per 10-liter batch of Nysap.

(b) After the boiling process is complete, the solution is cooled slightly before 5 kilograms of protect are added per 10-liter batch of Nysap. The addition of the protect does not affect the total liquid volume. The resulting solution is then bottled in 10-liter containers.

(c) The finished product is highly unstable, and one 10-liter batch out of five is rejected at final inspection. Rejected batches have no commercial value and are thrown out.

(d) It takes a worker 35 minutes to process one 10-liter batch of Nysap. Employees work eight hour day, including one hour per day for rest breaks and cleanup.

Required:

1. Determine the standard quantity for each of the raw materials needed to produce an acceptable 10-liter batch of Nysap.

2. Determine the standard labor time allowed to produce an acceptable 10-liter batch of Nysap.

3.Assuming the following costs, prepare a standard cost card for direct materials and direct labor for one acceptable 10-liter batch ofNysap:

35. Bill and Ken enter into a partnership agreement in which Bill is to have a 60% interest in capital...

Recording new partner investment and partner retirements—Various situations

Bill and Ken enter into a partnership agreement in which Bill is to have a 60% interest in capital and profits and Ken is to have a 40% interest in capital and profits. Bill contributes the following:

There is a $30,000 mortgage on the building that the partnership agrees to assume. Ken contributes $50,000 cash to the partnership. Bill and Ken agree that Ken’s capital account should equal Ken’s $50,000 cash contribution and that goodwill should be recorded. Goodwill should be recorded in the amount of:

a $10,000

b $15,000

c $16,667

d $20,000

36. Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts...

Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system). Merchandise inventory $ 37,800 Sales returns and allowances $ 6,500 Retained earnings 115,300 Cost of goods sold (excluding shrinkage) 105,000 Dividends 7,000 Depreciation expense 10,300 Sales 160,200 Salaries expense 32,500 Sales discounts 4,700 Miscellaneous expenses 5,000

37. 106.The amount for which a promissory note is written is called the a.realizable value b.maturity...

106.The amount for which a promissory note is written is called the

a.realizable value

b.maturity value

c.face value

d.proceeds

107.The amount of the promissory note plus the interest earned on the due date is called the

a.interest value

b.maturity value

c.face value

d.issuance value

108.A 60-day, 12% note for $7,000, dated April 15, is received from a customer on account.  The face value of the noteis

a. $6,860

b. $7,140

c. $7,840

d. $7,000

109.A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account.  The maturity value of thenote is

a. $10,000

b. $10,150

c. $10,900

d. $9,100

110.Interest on a note can be calculated without knowledge of the

a.fair value of the note

b.rate of interest

c.note duration

d.principal amount

111.On October 1, Black Company receives a 9% interest-bearing note from Reese Company to settle a $20,000account receivable.  The note is due in six months.  At December 31, Black should record interest revenue of

a.$0

b. $450

c. $900

d. $1,800

112.If the maker of a promissory note fails to pay the note on the due date, the note is said to be

a.displaced

b.disallowed

c.dishonored

d.discounted

113.The journal entry to record a note received from a customer to replace an account is

a.debit Notes Receivable; credit Accounts Receivable

b.debit Accounts Receivable; credit Notes Receivable

c.debit Cash; credit Notes Receivable

d.debit Notes Receivable; credit Notes Payable

114.A $6,000, 60-day, 12% note recorded on November 21 is not paid by the maker at maturity.  The journal entry torecognize this event is

a.debit Cash, $6,120; credit Notes Receivable, $6,120

b.debit Accounts Receivable, $6,120; credit Notes Receivable, $6,000; credit Interest Receivable, $120

c.debit Notes Receivable, $6,060; credit Accounts Receivable, $6,060

d.debit Accounts Receivable, $6,120; credit Notes Receivable, $6,000; credit Interest Revenue, $120

115.When referring to a note receivable or promissory note

a.the maker is the party to whom the money is due

b.the note is not considered a formal credit instrument

c.the note cannot be factored to another party

d.the note may be used to settle an accounts receivable

38. 166.The following data were taken from the Adjusted Trial Balance columns of the end-of-period...

166.The following data were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April30 for Abigail Company:

?

Prepare a classified balance sheet.

167.Indicate whether each of the following would be reported in the financial statements as a (a) current asset, (b)property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense:

168.List and describe the purpose of the four closing entries.

39. 31. John House has taken a $250,000 mortgage on his house at an interest rate of 6% per year. If the

31. John House

has taken a $250,000 mortgage on his house at an interest rate of 6% per year.

If the mortgage calls for twenty equal annual payments, what is the amount of

each payment? A. $21,796.14

b. $10,500.00

c. $16,882.43

d. None of

the above

32. John House

has taken a 20-year, $250,000 mortgage on his house at an interest rate of 6%

per year. What is the value of the mortgage after the payment of the fifth

annual installment?

a. $128,958.41

B. $211,689.53

c. $141,019.50

d. None of

the above

33. If the

present value of $1.00 received n years from today at an interest rate of r is

0.3855, then what is the future value of $1.00 invested today at an interest

rate of r% for n years?

a. $1.3855

B. $2.594

c. $1.70

d. Not

enough information to solve the problem

34. If the

present value of $1.00 received n years from today at an interest rate of r is

0.621, then what is the future value of $1.00 invested today at an interest

rate of r% for n years?

a. $1.00

B. $1.61

c. $1. 621

d. Not

enough information to solve the problem

35. If the

future value of $1 invested today at an interest rate of r% for n years is

9.6463, what is the present value of $1 to be received in n years at r%

interest rate?

a. $9.6463

b. $1.00

C. $0.1037

d. None of

the above

36. If the

future value annuity factor at 10% and 5 years is 6.1051, calculate the

equivalent present value annuity factor

a. 6.1051

B. 3.7908

c. 6.7156

d. None of

the given ones

12

Junjie Liu – Econ 282 Practice

Multiple Choice

37. If the present value annuity factor at 10% APR for 10

years is 6.1446, what is the equivalent future value annuity factor?

a. 3.108 B. 15.9374 c. 2.5937

d. None of the above

38. If the present value annuity factor at 12% APR for 5

years is 3.6048, what is the equivalent future value annuity factor?

a. 2.0455 B. 6.3529

c. 1.7623

d. None of

the above

39. Which of

the following statements is true?

a. Present

value of an annuity due is always less than the present value of an equivalent

annuity factor for a given interest rate

B. The present value of an annuity approaches the present

value of a perpetuity as n goes to infinity for a given interest rate

c. Both A

and B are true

d. Both A

and B are false

40. If the

present value annuity factor at 8% APR for 10 years is 6.71, what is the

equivalent future value annuity factor?

a. 3.108

B. 14.487

c. 2.159

d. None of

the above

41. You are

considering investing in a retirement fund that requires you to deposit $5,000

per year, and you want to know how much the fund will be worth when you retire.

What financial technique should you use to calculate this value?

a. Future

value of a single payment

B. Future value of an annuity

c. Present

value of an annuity

d. None of

the above

42. Mr. Hopper

is expected to retire in 25 years and he wishes accumulate $750,000 in his

retirement fund by that time. If the interest rate is 10% per year, how much

should Mr. Hopper put into the retirement fund each year in order to achieve

this goal? [Assume that the payments are made at the end of each year]

a. $4,559.44

b. $2,500

C. $7,626.05

d. None of the above

13

43. Mr. Hopper

is expected to retire in 30 years and he wishes accumulate $1,000,000 in his

retirement fund by that time. If the interest rate is 12% per year, how much

should Mr. Hopper put into the retirement fund each year in order to achieve

this goal?

A. $4,143.66

b. $8,287.32

c. $4,000

d. None of

the above