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Secure Good Grades in Accounting: Winter Assignment Help
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25. Finished Goods is debited and Cost of Goods Sold is credited for:A. transfer of completed goods to the customer
B. sale of a customer order
C. return of materials to the supplier
D. return of goods by the customer
E. none of the above
40. Problem 8-6. Eddie Kelly is running for reelection as mayor of a small town in Alabama. Jessica...
Problem 8-6. Eddie Kelly is running for reelection as mayor of a small town in Alabama. Jessica Martinez, Kelly's campaign manager during this election, is planning the marketing campaign, and there is some stiff competition. Martinez has selected four ways to advertise: television ads, radio ads, billboards, and newspaper ads. The costs of these, the audience reached by each type of ad, and the maximum number of each is shown in the following table:
Type of Ad Cost per ad Audience Reached / Ad Maximum number
TV $800 30,000 10
Radio $400 22,000 10
Billboards $500 24,000 10
Newspapers $100 8,000 10
In addition, Martinez has decided that there should be at least six ads on TV or radio or some combination of those two. The amount spent on billboards and newspapers together must not exceed the amount spent on TV ads. While fundraising is still continuing, the monthly budget for advertising has been set at $15,000. How many ads of each type should be placed to maximize the total number of people reached?
Use Excel's Solver to complete the problems.
41. During the third calendar quarter of 20--, Bayview Inn, owned by Diane R. Peters, employed the...
During the third calendar quarter of 20--, Bayview Inn, owned by Diane R. Peters, employed the persons listed below. Also given are the employees' salaries or wages and the amount of tips reported to the owner. The tips were reported by the 10th of each month. The federal income tax and FICA tax to be withheld from the tips were estimated by the owner and withheld equally over the 13 weekly pay periods. The employer's portion of FICA tax on the tips was estimated as the same amount.
42. During its first year of operations, Collin Raye Corporation had the following transactions...
During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock.
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Jan. 10 Issued 80,000 shares for cash at $6 per share.
Mar. 1 Issued 5,000 shares to attorneys in payment of a bill for $35,000 for services rendered in helping the company to incorporate.
July 1 Issued 30,000 shares for cash at $8 per share.
Sept 1 Issued 60,000 shares for cash at $10 per share.
Instructions
(a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share.
(b) Prepare the journal entries for these transactions, assuming that the common stock is no-par with a stated value of $3 per share.
43. (Adjusting Entries and Financial Statements) Presented below are the trial balance and the other
(Adjusting Entries and Financial Statements) Presented below are the trial balance and the other information related to Yorkis Perez, a consulting engineer.
YORKIS PEREZ, CONSULTING ENGINEER
T RIAL B ALANCE
D ECEMBER 31, 2010
Debit Credit
Cash $ 29,500
Accounts Receivable 49,600
Allowance for Doubtful Accounts $ 750
Engineering Supplies Inventory 1,960
Prepaid Insurance 1,100
Furniture and Equipment 25,000
Accumulated Depreciation—Furniture and Equipment 6,250
Notes Payable 7,200
Yorkis Perez, Capital 35,010
Service Revenue 100,000
Rent Expense 9,750
Office Salaries Expense 30,500
Heat, Light, and Water Expense 1,080
Miscellaneous Office Expense 720
1. Fees received in advance from clients $6,000.
2. Services performed for clients that were not recorded by December 31, $4,900.
3. Bad debt expense for the year is $1,430.
4. Insurance expired during the year $480.
5. Furniture and equipment is being depreciated at 10% per year.
6. Yorkis Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2010.
7. Rent of the building is $750 per month. The rent for 2010 has been paid, as has that for January
2011.
8. Office salaries earned but unpaid December 31, 2010, $2,510.
Instructions
(a) From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2010. (Omit explanations.)
(b) Prepare an income statement for 2010, a statement of owner’s equity, and a classified balance sheet. Yorkis Perez withdrew $17,000 cash for personal use during the year.
44. Suppose management estimated the market valuation of some obsolete inventory at $99
Suppose management estimated the market valuation of some obsolete inventory at $99,000; this inventory was recorded at $120,000, which resulted in recognizing a loss of $21,000. The auditors obtained the following information:The inventory in question could be sold for an amount between $78,000 and $92,000. The costs of advertising and shipping could range from $5,000 to $7,000. Prepare the appropriate accounting entry. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) General Journal Debit Credit Loss (COGS) ? Inventory ?
45. Components of the accounting equation
The financial condition of GreyCo Inc. is expressed in the following accounting equation:
Assets = Liabilities + Common Stock + Retained earnings
$800 Cash + $9,200 Land = $7,000 + $2,000 + $1,000
a. Determine the maximum dividend GreyCo can pay.
b. Suppose the land sinks into the sea as a result of an earthquake and resulting tsunami. The business is then liquidated. How much cash will creditors receive? How much cash will investors receive? (Assume there are no legal fees or other costs of liquidation.)
46. Overton Company has gathered the following information. Units in beginning work in process 21,340 Un
Overton Company has gathered the following information.
Units in beginning work in process 21,340
Units started into production 234,660
Units in ending work in process 25,640
Percent complete in ending work in process:
Conversion costs 60 %
Materials 100 %
Costs incurred:
Direct materials $102,400
Direct labor $427,640
Overhead $186,720
Compute equivalent units of production for materials and for conversion costs.
Materials Conversion Costs
The equivalent units of production
Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials Conversion Costs
Unit costs $ $
Show the assignment of costs to units transferred out and in process. (Round answers to 0 decimal places, e.g. 1,225.)
Transferred out $
Ending work in process $
47. Katy Williams is the manager of Blue Light Arcade The company provides entertainment for parties ...
Katy Williams is the manager of Blue Light Arcade The company provides entertainment for parties and special events. For each of the following transactions of Katy Williams, give the accounting equation effects of the adjustments required (Enter any decreases to account balances with a minus sign.) Blue Light Arcade received $52 cash on account for a birthday party held two months ago Agreed to hire a new employee at a monthly salary of $3, 050. The employee starts work next month. Paid $2.050 for a table top hockey game purchased last month on account d Repaid a $5,050 bank loan that had been outstanding for six months (Ignore interest) The company purchased an air hockey table for $2, 500. paying $1 100 cash and signing a short-term note for $1, 400.
48. Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's following total...
Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's following total overhead costs consist of assembly costs and inspection costs. The following information is available: Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much assembly cost is assigned to titanium racquets? a. $21,000. b. $30,000. c. $31, 500. d. $42,000.
49. Acton Company has two products: A and B. The annual production andsales of Product A is 800 units...
Acton Company has two products: A and B. The annual production andsales of Product A is 800 units and of Product B is 500 units. Thecompany has traditionally used direct labor-hours as the basis forapplying all manufacturing overhead to products. Product A requires0.3 direct labor hours per unit and...
50. Problem 5-1 Simple Interest versus Compound Interest [LO1] . . .
Problem 5-1 Simple Interest versus Compound Interest [LO1]
51. 116.Short-term creditors are usually most interested in assessing a.solvency. b.liquidity....
116.Short-term creditors are usually most interested in assessing
a.solvency.
b.liquidity.
c.marketability.
d.profitability.
117.A common measure of liquidity is
a.return on assets.
b.accounts receivable turnover.
c.profit margin.
d.debt to equity.
118.A common measure of profitability is the
a.current ratio.
b.times interest earned.
c.return on common stockholders’ equity.
d.debt to assets.
119.A common measure of long-term solvency is
a.the debt to assets ratio.
b.the current ratio.
c.the asset turnover.
d.inventory turnover.
120.Return on assets is most closely related to
a.profit margin and debt to assets ratio.
b.profit margin and asset turnover.
c.times interest earned and debt to stockholders’ equity.
d.profit margin and free cash flow.
121.Return on common stockholders’ equity is most closely related to
a.gross profit rate and operating expenses to sales ratio.
b.profit margin and free cash flow.
c.times interest earned and debt to stockholders’ equity ratio.
d.return on asset and leverage (debt to assets ratio).
122.Long-term creditors are usually most interested in evaluating
a.liquidity.
b.marketability.
c.profitability.
d.solvency.
123.Which one of the following would be considered a long-term solvency ratio?
a.Accounts receivable turnover
b.Return on assets
c.Current ratio
d.Debt to assets ratio
124.Stockholders are most interested in evaluating
a.liquidity.
b.solvency.
c.profitability.
d.marketability.
125.In ratio analysis, the ratios are never expressed as a
a.rate.
b.logarithm.
c.percentage.
d.simple proportion.
52. Multiple Choice Questions 124. Which of the following businesses is most likely to use a...
Multiple Choice Questions
124. Which of the following businesses is most likely to use a periodic inventory system?
A. An aircraft manufacturer.
B. A supermarket that is part of a national chain.
C. An independently owned art gallery with a manual accounting system.
D. A beer bar.
125. A periodic inventory system eliminates the need for:
A. Taking an annual physical inventory.
B. Recording the revenue from sales transactions.
C. Recording the cost of merchandise sold as sales occur.
D. None of the above.
126. If management wants to know the cost and quantity of merchandise on hand at all times, the business will probably:
A. Use a periodic inventory system.
B. Maintain an inventory subsidiary ledger.
C. Take a complete physical inventory each day.
D. Debit all purchases of merchandise directly to the Cost of Goods Sold account.
127. In a perpetual inventory system, the entry to record the cost of goods sold always includes an entry of equal amount to the:
A. Inventory account.
B. Sales account.
C. Purchases account.
D. None of the above.
128. Prior to taking a physical inventory at year-end, the perpetual inventory records of Athena Designs showed an inventory of $26,000, sales of $358,000, and a cost of goods sold of $215,000. The year-end physical inventory indicated merchandise on hand costing $24,000. The company's gross profit for the year was:
A. $334,000.
B. $145,000.
C. $141,000.
D. Some other amount.
At the end of last year, Helen's, Inc. had merchandise costing $115,000 in inventory. During January of the current year, the company purchased merchandise costing $35,000, and sold merchandise which it had purchased at a total cost of $55,000.
Based upon the above information, place the best answer in the space provided. In questions 1 through 3, assume that Helen's uses a perpetual inventory system.
129. The total debited to the Inventory account during January was:
A. $0.
B. $35,000.
C. $55,000.
D. Some other answer.
130. The balance in the Inventory account at January 31 was:
A. $35,000.
B. $205,000.
C. $95,000.
D. Some other answer.
131. The amount of costs transferred from the Inventory account to the Cost of Goods Sold account during January was:
A. $0.
B. $35,000.
C. $55,000.
D. Some other answer.
Assume that Jerome's, Inc. uses a periodic inventory system and takes a physical inventory only at year-end.
132. The total debited to the Inventory account during January was:
A. $0.
B. $35,000.
C. $55,000.
D. Some other answer.
133. The balance in the Inventory account at January 31 was:
A. $0.
B. $105,000.
C. $115,000.
D. Some other answer.
134. The amount of costs transferred from the Inventory account to the Cost of Goods Sold account during January was:
A. $0.
B. $35,000.
C. $55,000.
D. Some other answer.
53. Use the following table to answer the question below. Dave's Production Possibilities Schedule Si...
Use the following table to answer the question below. Dave's Production Possibilities Schedule Simon's Production Possibilities Schedule Pounds of Green Beans Pounds of Corn Pounds of Green Beans Pounds of Corn 0 160 0 80 20 120 40 60 40 80 80 40 60 40 120 20 80 0 160 0 Dave's opportunity cost of producing 1 pound of corn is ______ pound(s) of green beans. Simon's opportunity cost of producing 1 pound of corn is ______ pound(s) of green beans
54. Are any time lags in recording economic events typically experienced in payroll systems? If so, what
Are any time lags in recording economic events typically experienced in payroll systems? If so, what are they? Discuss the accounting profession’s view on this matter as it pertains to financial reporting.
55. Abe Factor opened a new accounting practice called X-factor Accounting and completed these...
Abe Factor opened a new accounting practice called X-factor Accounting and completed these activities during March 2014: Mar 1 Invested $50,000 in cash and office equipment that had a fair value of $12,000. 1 Prepaid $9,000 cash for three months rent for an office. 3 Made credit purchases of used office equipment for $6,000 and office supplies for $1,200. 5 Completed work for a client and immediately received $6,200 cash. 9 Completed a $4,000 project for a client, who will pay within 30 days. 11 Paid the account payable created on March 3. 15 Paid $3,000 cash for the annual premium on an insurance policy. 20 Received $1,500 as partial payment for the work completed on March 9. 22 Placed an order with a supplier for $4,800 of supplies to be delivered April 7. They must be paid for within 15 days of being received. 23 Completed work for another client for $2,850 on credit. 27 Abe Factor withdrew $3,600 cash from the business to pay some personal expenses. 30 Purchased $650 of additional office supplies on credit. 31 Paid $860 for the month s utility bill. Required Prepare General Journal entries to record the transactions.
56. MONTGOMERY INC. Comparative Balance Sheets December 31, 2016 and 2015 2016 2015 Assets 30,800 31,...
MONTGOMERY INC. Comparative Balance Sheets December 31, 2016 and 2015 2016 2015 Assets 30,800 31,000 Cash 10,900 Accounts receivable, net 8.900 79,800 63,000 44,200 37,300 (19,900) (13,800) Inventory Equipment Accum. depreciation Equipment Total assets 143,800 $128,400 Liabilities and Equity 21,200 22,900 Accounts payable 400 Salaries payable 500 102,400 94,100 Common stock, no par value Retained earnings 19,800 10,900 Total liabilities and equity 143,800 $128,400 MONTGOMERY INC. Income Statement For Year Ended December 31, 2016 38,500 Sales (16,000) Cost of goods sold 22,500 Gross profit Operating expenses 6,100 Depreciation expense Other expenses 4.700 Total operating expense 10,800 11,700 Income before taxes Income tax expense 2.800 Net income 8.900
57. The Acme Company is undergoing a reorganization to improve its financial structure. As part of...
The Acme Company is undergoing a reorganization to improve its financial structure. As part of this process, the company is considering lowering its expense calculations to improve the bottom line net income.
58. Exercise 7-11 The following information pertains to Crane Video Company. 1. Cash balance per ...
Exercise 7-11
The following information pertains to Crane Video Company.
1. Cash balance per bank, July 31, $8,003.
2. July bank service charge not recorded by the depositor $36.
3. Cash balance per books, July 31, $8,024.
4. Deposits in transit, July 31, $1,870.
5. Bank collected $1,270 note for Crane in July, plus interest $44, less fee $28. The collection has not been recorded by Crane, and no interest has been accrued.
6. Outstanding checks, July 31, $599.
Prepare a bank reconciliation at July 31 (List items that increase cash balance first. Reconcile cash balance per bank first.) CRANE VIDEO COMPANY Bank Reconciliation July 31 8,003 Cash balance per bank statement Add T Deposits in transit 1,870 9873 Less Toutstanding checks 599 9274 Adjusted cash balance per bank Cash balance per bank statement Add J: Cash balance per books a Less Collection of note receivable Cash balance per books
59. Question Exercise 2-9 Recording effects of transactions in T-accounts A1 Prepare general journal...
Question
Exercise 2-9
Recording effects of transactions in T-accounts A1
Prepare general journal entries to record the transactions below for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries. After recording the transactions, post them to T-accounts, which serves as the general ledger for this assignment. Determine the ending balance of each T-account.
Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock.
The company purchased office supplies for $1,250 cash.
The company purchased $10,050 of office equipment on credit.
The company received $15,500 cash as fees for services provided to a customer.
The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c.
The company billed a customer $2,700 as fees for services provided.
The company paid $1,225 cash for the monthly rent.
The company collected $1,125 cash as partial payment for the account receivable created in transaction f.
The company paid $10,000 cash in dividends to the owner (sole shareholder).
60. answer and show solution Problem 1-7 (AA) Cavalier Company provided the following information on Dec
answer and show solution 2020: Accounts payable . Notes payable-tank Interest payable Mortgage note payable -10% Bonds payable 6,500,000 8.000.000 150,000 2,000,000 4,000,000 Bank notes payable include two separate notes payable to First Bank. A P3,000,000, 10% note issued March 1, 2019, payable on demand. Interest is payable every six months. A one-year, P5,000,000, 11% note issued January 2, 2020. On December 31, 2020, the entity negotiated a written agreement with First Bank to replace the note with a 2-year, P5,000,000, 10% note to be issued January 2, 2021. The 10% mortgage note was issued October 1, 2019 with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest payment within 10 days of the date the payment is due. On December 31, 2020, the entity is three months behind in paying the required interest payment. The bonds payable are 10-year, 8% bonds, issued June 30, 2011. Interest is payable semiannually on June 30 and December 31. Required: Compute the total current liabilities on December 31, 2020. 19 .
61. On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to...
On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannualOn the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Chin receiving cash of $9,594,415. The fiscal year of the company is the calendar year.Required:
a. Journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles):
1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
b. Determine the amount of the bond interest expense for the first year.
c. Explain why the company was able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000.
62. Which of the following is true about client-side script use in HTML documents? (a)Java, JavaScript,.
Which of the following is true about client-side script use in HTML documents?
(a)Java, JavaScript, Jscript and VBScript are used on many web sites as Scripting languages
(b)Client side scripts are executed on the server and the resulting page will be downloaded and interpreted by the browser
(c)Client-side scripts increase the network traffic on execution of the script
(d)Client-side scripts can perform many functions such as data validation and provide interactive feedback to the user
(e)Browsers need plug-ins to execute client-side scripts.
