Maximize Your Potential: Accounting Assignment Solutions

Published: 11 months ago

Maximize Your Potential: Accounting Assignment Solutions

1. Which of the following variables are included in the Modified Jones model? Accruals Cash Revenue Gro

Which of the following variables are included in the Modified Jones model?

Accruals

Cash Revenue Growth

EBITDA

Kittens and puppies

Cash dividends

2. One-half of the adjusting entry is given below indicate the One-half of the adjusting entry is given

One-half of the adjusting entry is given below indicate the

One-half of the adjusting entry is given below. Indicate the account title for the other half of the entry.

(a) Salaries Expense is debited.

(b) Depreciation Expense is debited.

(c) Interest Payable is credited.

(d) Supplies is credited.

(e) Accounts Receivable is debited.

(f) Unearned Service Revenue is debited.

One-half of the adjusting entry is given below indicate the

3. 9) A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example

9) A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example of direct costs for the golf equipment line is ________.

A) beverages provided daily in the plant break room

B) monthly lease payments for a specialized piece of equipment needed to manufacture the golf driver

C) salaries of the clerical staff that work in the company administrative offices

D) overheads incurred in producing both golf and soccer equipment

10) A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example of indirect cost for the soccer equipment line is the ________.

A) material used to make the soccer balls

B) labor to shape the leather used to make the soccer ball

C) material used to manufacture the soccer studs

D) salary paid to plant supervisor

11) Which one of the following items is a direct cost?

A) Customer-service costs of a multiproduct firm; Product A is the cost object.

B) Printing costs incurred for payroll check processing; payroll check processing is the cost object.

C) The salary of a maintenance supervisor in a multiproduct manufacturing plant; Product B is the cost object.

D) Utility costs of the administrative offices; the accounting department is the cost object.

12) Indirect manufacturing costs ________.

A) can be traced to the product that created the costs

B) can be easily identified with the cost object

C) generally include the cost of material and the cost of labor

D) may include both variable and fixed costs

13) Which of the following is true of indirect costs?

A) Indirect costs are always considered sunk costs.

B) All indirect costs are included in cost of goods sold.

C) Indirect costs always vary in direct proportion to the level of production.

D) Indirect costs cannot be traced to a particular cost object in an economically feasible way.

14) Which of the following statements is true?

A) A direct cost of one cost object will always be a direct cost of another cost object.

B) Because of a cost-benefit tradeoff, some direct costs may be treated as indirect costs.

C) All fixed costs are indirect costs.

D) All direct costs are variable costs.

15) Which of the following statements is true of direct costs?

A) A direct cost of one cost object is a true sense of the budgeted costs.

B) All variable costs are direct costs.

C) A direct cost of one cost object can be an indirect cost of another cost object.

D) All fixed costs are direct costs.

16) A cost may be direct for one cost object and indirect for another cost object.

17) Assigning indirect costs is easier than assigning direct costs.

18) Improvements in information-gathering technologies are making it possible to trace more costs as direct.

4. Wind Tunnel Testing – Carbon Bike Frames As an equipment provider for several Olympic cyclists,...

Wind Tunnel Testing – Carbon Bike Frames

As an equipment provider for several Olympic cyclists, Carbon Bike Frames (CBF) operates a very expensive wind tunnel facility near San Diego, CA. The wind tunnel is used to find thebest compromise between ergonomics and aerodynamics for the cyclist. Presently, more andmore cyclists are interested in CBF’s services, so the company considers building a secondfacility.

However, given the enormous costs of the wind tunnel, they also want to explore a more effective use of the current facility. An initial data collection revealsthat:

-­- The standard fitting time for a cyclist is 2h. On average, the wind tunnel is used for7 fitting procedures per working day (new customers or customers who want a refit). The wind tunnel is available 24 hours per workingday.

-­- CBF offers a free second session should the customer not be entirely satisfied withtheir bike fit (internally also known as “rework sessions”). About 2 out of 5 customers come back for such a “refit,” which takes the same amount of time as the initial fit.

-­-20minutesoftheeachfittingprocedure isspentonsettingupthebikeonastationary trainer and getting the athlete ready. Almost all of this could happen outside thewind tunnel, i.e. while another fitting procedure is still goingon.

-­- About one day out of 10, the wind tunnel is down for maintenance orrepair.

CBF1.How many new fits are conducted on a typical day when the wind tunnel is inuse (assume the wind tunnel is open thatday)?

CBF2.What is the OEE of the wind tunnel? Recall that the wind tunnel can be used 24h in a workingday.

Answers

CBF1.)

On average 2 of 7 customers per day relif, wich leave 5 new customer per day.

CBF2.)

OEE=(100 min-add value time/customers5 new customers per day9 days/cycle)/(60min/hr(24hr/day)(10 days/cycle))=4500/14,400=0.3125

5. ‘The historical cost convention looks backwards but the going concern convention looks forwards.’...

‘The historical cost convention looks backwards but the going concern convention looks forwards.’

(a) Does traditional financial accounting, using the historical cost convention, make the going concern convention (see Chapter 3) unnecessary? Explain your answer fully.

(b) Which do you think a shareholder is likely to find more useful: a report on the past or an estimate of the future? Why?

6. Here are selected 2017 transactions of Akron Corporation. Jan. 1 Retired a piece of machinery th...

Here are selected 2017 transactions of Akron Corporation. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $62,000 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2015. The computer cost $36,000 and had a useful life of 3 years with no salvage value. The computer was sold for 55,000 cash. Dec. 31 Sold a delivery truck for $9,000 cash. The truck cost $25,000 when it was purchased on January 1, 2014, and was deprecated based on a 5-year useful life with a $4,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Akron Corporation uses straight-line depreciation. (Record entries In the order displayed In the problem statement. Credit account titles are automatically Indented when amount Is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

7. Which of the following is true about T accounts? a.Transactions are first recorded in T accounts and

Which of the following is true about T accounts?    a.Transactions are first recorded in T accounts and then posted to the journal.    b.The right side of a T account is called the debit side.    c.The left side of a T account is called the credit side.  d.The left side of a T account is called the debit side.

8. Topic 1 DQ 1 Compare and contrast hunting – versus agricultural-based tribes. How did each respond..

Topic 1 DQ 1 Compare and contrast hunting – versus agricultural-based tribes. How did each respond to European incursions on their lands? Using specific details, which group was better suited to sustain this significant change? (See chart on page 9 of HIST 4).

9. Builder Products, Inc., manufactures a caulking compound that

Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, cooking, is given below for May:



The company uses the weighted-average method

Required:

1. Compute the equivalent units of production.

2. Compute the costs per equivalent unit for the month.

3. Determine the cost of ending work in process inventory and of the units transferred out to the next department.

4. Prepare a cost reconciliation report for themonth.

10. Peavey Enterprises purchased a depreciable asset for $23,000 on April 1, Year 1. The asset will b...

Peavey Enterprises purchased a depreciable asset for $23,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,200, what will be the amount of accumulated depreciation on this asset on December 31, Year 3?

$14,300

$5,200

$4,333

$4,333

$17,333

11. Compute the missing amounts for each of the following notes.

Compute the missing amounts for each of the following notes.

12. The following data from the just completed year are taken from the accounting recor

The following data from the just completed year are taken from the accounting records of Eccles Company: Sales $ 643,000 Direct labor cost $ 90,000 Raw material purchases $ 132,000 Selling expenses $ 100,000 Administrative expenses $ 43,000 Manufacturing overhead applied to work in process $ 210,000 Actual manufacturing overhead costs $ 220,000 Inventories: Beginning of Year End of Year Raw materials $ 8,000 $ 10,000 Work in process $ 5,000 $ 20,000 Finished goods $ 70,000 $ 25,000 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. (Input all amounts as positive values.) 2. Prepare a schedule of cost of goods sold. 3. Prepare an income statement.

13. After several months of planning, Jasmine Worthy started a haircutting business called Expressions....

After several months of planning, Jasmine Worthy started a haircutting business called Expressions. The following events occurred during its first month.

a. On August 1, Worthy invested $3,000 cash and $15,000 of equipment in Expressions.

b. On August 2, Expressions paid $600 cash for furniture for the shop.

c. On August 3, Expressions paid $500 cash to rent space in a strip mall for August.

d. On August 4, it purchased $1,200 of equipment on credit for the shop (using a long-term note payable).

e. On August 5, Expressions opened for business. Cash received from haircutting services in the first week and a half of business (ended August 15) was $825.

f. On August 15, it provided $100 of haircutting services on account.

g. On August 17, it received a $100 check for services previously rendered on account.

h. On August 17, it paid $125 to an assistant for hours worked during the grand opening.

i. Cash received from services provided during the second half of August was $930.

j. On August 31, it paid a $400 installment toward principal on the note payable entered into on August 4.

k. On August 31, Worthy withdrew $900 cash for personal use.

Required

1. Open the following ledger accounts in balance column format (account numbers are in parentheses): Cash (101); Accounts Receivable (102); Furniture (161); Store Equipment (165); Note Payable (240); J. Worthy, Capital (301); J. Worthy, Withdrawals (302); Haircutting Services Revenue (403); Wages Expense (623); and Rent Expense (640). Prepare general journal entries for the transactions.

2. Post the journal entries from (1) to the ledger accounts.

3. Prepare a trial balance as of August 31.

4. Prepare an income statement for August.

5. Prepare a statement of owner’s equity for August.

6. Prepare a balance sheet as of August 31.

7. Determine the debt ratio as of August 31.

8. In the coming months, Expressions will experience a greater variety of business transactions. Identify which accounts are debited and which are credited for the following transactions.

a. Purchase supplies with cash.

b. Pay cash for future insurance coverage.

c. Receive cash for services to be provided in the future.

d. Purchase supplies on account.

14. Bev's Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently...

Transactions; financial statements

Bev's Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, and capital stock of the business on November 1, 2014, are as follows: Cash, $39,000; Accounts Receivable, $80,000; Supplies, $11,000; Land, $50,000; Accounts Payable, $31,500; Capital Stock, $50,000. Business transactions during November are summarized as follows:

a. Beverly Zahn invested additional cash in exchange for capital stock with a deposit of $21,000 in the business bank account.

b. Purchased land adjacent to land currently owned by Bev's Dry Cleaners to use in the future as a parking lot, paying cash of $35,000.

c. Paid rent for the month, $4,000.

d. Charged customers for dry cleaning revenue on account, $72,000.

e. Paid creditors on account, $20,000.

f. Purchased supplies on account, $8,000.

g. Received cash from cash customers for dry cleaning revenue, $38,000.

h. Received cash from customers on account, $77,000.

i. Received monthly invoice for dry cleaning expense for November (to be paid on December 10), $29,450.

j. Paid the following: wages expense, $24,000; truck expense, $2,100; utilities expense, $1,800; miscellaneous expense, $1,300.

k. Determined that the cost of supplies on hand was $11,800; therefore, the cost of supplies used during the month was $7,200.

l. Paid dividends, $5,000.

Instructions

1. Determine the amount of retained earnings as of November 1.

2. State the assets, liabilities, and stockholders' equity as of November 1 in equation form similar to that shown in this chapter. In tabular form below the equation, indicate increases and decreases resulting from each transaction and the new balances after each transaction.

3. Prepare an income statement for November, a retained earnings statement for November, and a balance sheet as of November 30.

4. (Optional). Prepare a statement of cash flows for November.

15. What is Dontae’s gross income from his employment?

Dontae’s employer has offered him the following employment package. What is Dontae’s gross income from his employment?

16. Compute the amount to be paid for each of the four separate invoices assuming that all invoices are.

Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period. Merchandise (gross) ______ Terms a. $5,000 ................... 2?10, n?60 b. $20,000 ................... 1?15, EOM c. $75,000 ................... 1?10, n?30 d. $10,000 ................... 3?15, n?45

17. Discuss the flow of cash through the transaction cycles. Include in your discussion the relevant...

Discuss the flow of cash through the transaction cycles. Include in your discussion the relevant subsystems and any time lags that may occur.

Explain whether the cost accounting system primarily supports internal or external reporting.

Discuss the role of the conversion cycle for service and retailing entities.

Can a turnaround document contain information that is subsequently used as a source document? Why or why not?