Expert Assistance for Accounting Quizzes and Assignments

Published: 8 months ago

Expert Assistance for Accounting Quizzes and Assignments

30. Kretz Corporation prepares monthly financial statements and ther

Kretz Corporation prepares monthly financial statements and therefore adjusts its accounts at the end of every month. The following information is available for March 2010:

a. Kretz Corporation takes out a 90-day, 8%, $15,000 note on March 1, 2010, with interest and principal to be paid at maturity.

b. The asset account Office Supplies on Hand has a balance of $1,280 on March 1, 2010. During March, Kretz adds $750 to the account for purchases during the period. A count of the supplies on hand at the end of March indicates a balance of $1,370.

c. The company purchased office equipment last year for $62,600. The equipment has an estimated useful life of six years and an estimated salvage value of $5,000.

d. The company’s plant operates seven days per week with a daily payroll of $950. Wage earners are paid every Sunday. The last day of the month is Saturday, March 31.

e. The company rented an idle warehouse to a neighboring business on February 1, 2010, at a rate of $2,500 per month. On this date, Kretz Corporation recorded Rent Collected in Advance for six months’ rent received in advance.

f. On March 1, 2010, Kretz Corporation recorded a liability account, Customer Deposits, for $4,800. This sum represents an amount that a customer paid in advance and that Kretz will earn evenly over a four-month period.

g. Based on its income for the month, Kretz Corporation estimates that federal income taxes for March amount to $3,900.



Required

1. For each of the preceding situations, identify and analyze the adjustments to be recorded on March 31, 2010.

2. Assume that Kretz reports income of $23,000 before any of the adjustments. What net income will Kretz report for March?

31. The PVC Company manufactures a high-quality plastic pipe that goes through three pr

The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: Production data: Pounds in process, May 1: materials 100% complete; conversion 90% complete 67,000 Pounds started into production during May 320,000 Pounds completed and transferred to the next department ? Pounds in process, May 31: materials 75% complete; conversion 25% complete 27,000 Cost data: Work in process inventory, May 1: Materials cost $ 78,500 Conversion cost $ 20,300 Cost added during May: Materials cost $ 408,220 Conversion cost $ 111,730 -------------------------------------------------------------------------------- The company uses the weighted-average method. Required: 1. Compute the equivalent units of production. Materials Conversion Equivalent units of production -------------------------------------------------------------------------------- 2. Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Materials Conversion Cost per equivalent unit $ $ -------------------------------------------------------------------------------- 3. Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Omit the "$" sign in your response.) Materials Conversion Total Cost of ending work in process inventory $ $ $ Cost of units completed and transferred out $ $ $ -------------------------------------------------------------------------------- 4. Prepare a cost reconciliation report for the month. (Omit the "$" sign in your response.) Cost Reconciliation Costs to be accounted for: (Click to select)Cost of ending work in process inventoryCost of units completed and transferred outCost of beginning work in process inventory $ (Click to select)Costs added to production during the periodCost of ending work in process inventoryCost of units completed and transferred out -------------------------------------------------------------------------------- Total cost to be accounted for $ -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Costs accounted for as follows: (Click to select)Cost of ending work in process inventoryCosts added to production during the periodCost of beginning work in process inventory $ (Click to select)Costs added to production during the periodCost of beginning work in process inventoryCost of units completed and transferred out -------------------------------------------------------------------------------- Total cost accounted for $

32. Financial and managerial accounting

On November 1, Year 1, Noble Co borrowed $80,000 from South Bank and signed a 12% six month note payable, all due at maturity. The interest on this loan is stated separately. How much must Noble pay South Bank on May 1, Year 2, when the note matures?

a. $84,000

b. $89,600

c. $82,400

d. $80,000

33. The statement of cash flows for Baldwin Company shows what happens in the Cash account during the...

The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary of the sources and uses of cash (sources of cash are added, uses of cash are subtracted). Please answer which of the following is true if Baldwin's inventory goes up:

Select: 3

a. It is a use of cash, and will be shown in the operating section as a subtraction.

b. It is a source of cash and will be shown in the operating section as an addition.

c. It is a use of cash, and will be shown in the investing section as a subtraction.

d. It is a source of cash, and will be shown in the investing section as an addition.

34. 11) Revenues total $20,200, expenses total $17,300, and the owner's withdrawals account has a...

11) Revenues total $20,200, expenses total $17,300, and the owner's withdrawals account has a balance of $12,600. What is the balance in the income summary account prior to closing net income or net loss?

A) $2,900 debit

B) $9,700 debit

C) $2,900 credit

D) $9,700 credit

12) Revenues total $20,200, expenses total $17,300, and the owner's withdrawals account has a balance of $2,600. What is the balance in the income summary account after all closing entries are completed?

A) $2,600 credit

B) $2,900 debit

C) $2,900 credit

D) $0

13) If income summary has a $13,500 debit balance before it is closed to the capital account, the company:

A) generated a net income of $13,500.

B) incurred a net loss of $13,500.

C) had revenues that exceeded expenses by $13,500.

D) had expenses that were $13,500 less than revenues.

14) The capital account has an ending balance of $17,000 and a beginning balance of $12,500. If withdrawals were $13,500, then the income summary account had a balance of ________ before closing.

A) $18,000 credit

B) $4,500 credit

C) $3,500 credit

D) $18,000 debit

15) The income summary account had an $8,000 credit balance prior to being closed to the owner's capital account. The capital account had a $32,000 beginning balance and a $36,500 ending balance. Determine the amount of the owner's withdrawals during the current period.

A) $3,500

B) $8,500

C) $4,500

D) $2,500

16) Which of the following are all temporary accounts?

A) liabilities, revenues, and expenses

B) revenues, expenses, and withdrawals

C) revenues, expenses, and capital

D) assets, revenues, and withdrawals

17) The income summary account is closed to the:

A) cash account.

B) withdrawals account.

C) service revenue account.

D) capital account.

18) The balance in the capital account after all closing entries have been posted is:

A) equal to net income or loss for the period.

B) the same as the balance of the account on the worksheet.

C) always more than the balance of the account on the worksheet.

D) the balance that will appear on the balance sheet.

19) The accounts that appear on a postclosing trial balance are:

A) assets, liabilities, withdrawals, and revenues.

B) revenues, expenses, and capital.

C) assets, liabilities, and expenses.

D) assets, liabilities, and capital.

20) Revenues, expenses, and withdrawals would not appear on a(n):

A) postclosing trial balance.

B) adjusted trial balance.

C) unadjusted trial balance.

D) worksheet.

35. The total amount of cash and other assets received by a corporation from its stockholders in exch...

The total amount of cash and other assets received by a corporation from its stockholders in exchange for its stock is Always equal to its par value. Always equal to its stated value. Referred to as paid-in capital. Referred to as retained earnings. Always below its stated value.

36. Prepare an income statement and an owner"s equity statement for the month ending January 31, 2014,...

Winter Company"s balance sheet at December 31, 2013, is presented below.

During January 2014, the following transactions occurred. Winter uses the perpetual inventory method.

1. Interest is recorded for the month on the note from January 1.


2. Bad debts are expected to be 6% of the January 31, 2014, accounts receivable.


3. A count of supplies on January 31, 2014, reveals that $560 remains unused.

Instructions

(a)Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual system.)

(b)Prepare an adjusted trial balance at January 31, 2014.

(c)Prepare an income statement and an owner"s equity statement for the month ending January 31, 2014, and a classified balance sheet as of January 31, 2014.

37. The directors of Mylo Ltd are currently considering two mutually exclusive investment projects....

The directors of Mylo Ltd are currently considering two mutually exclusive investment projects. Both projects are concerned with the purchase of new plant. The following data are available for each project: The business has an estimated cost of capital of 10 per cent, and uses the straight-line method of depreciation for all non-current (fixed) assets when calculating operating profit. Neither project would increase the working capital of the business. The business has sufficient funds to meet all capital expenditure requirements.

Required:

(a) Calculate for each project:

(i) The net present value.

(ii) The approximate internal rate of return.

(iii) The payback period.

(b) State which, if any, of the two investment projects the directors of Mylo Ltd should accept, and why. (c) State, in general terms, which method of investment appraisal you consider to be most appropriate for evaluating investment projects, and why.

38. Department and activity-cost rates, service sector Radhika’s Rad

Department and activity-cost rates, service sector Radhika’s Radiology Center (RRC) performs x-rays, ultrasounds, CT scans, and MRls. RRC has developed a reputation as a top Radiology Center in the state. RRC has achieved this status because it constantly re-examines its processes and procedures. RRC has been using a single, facility-wide overhead allocation rate. The VP of Finance believes that RRC can make better process improvements if it uses more disaggegated cost information. She says, ?oWe have state of the art medical imaging technology. Can’t we have state of the art accounting technology???





RRC operates at capacity. The proposed allocation bases for overhead are as follows:





1. Calculate the budgeted cost per service for X-rays, Ultrasounds, CT scans, and MRIs using direct technician labor costs as the allocation basis.

2. Calculate the budgeted cost per service of X-rays, Ultrasounds, CT scans, and MRIs if RRC allocated overhead costs using activity-based costing.

3. Explain how the disaggregation of information could be helpful to RRC’s intention to continuously improve their services.

39. Identify Home Depot"s long-term liabilities and the amounts for those liabilities from Home Depot"s...

1. Your business associate mentions that she is considering investing in corporate bonds currently selling at a premium. She says that since the bonds are selling at a premium, they are highly valued and her investment will yield more than the going rate of return for the risk involved. Reply with a memorandum to confirm or correct your associate’s interpretation of premium bonds.

2. Access the March 25, 2010, filing of the 10-K report of Home Depot for the year ended

January 31, 2010, Refer to Home Depot’s balance sheet, including its note 4 (on debt).

Required

1. Identify Home Depot’s long-term liabilities and the amounts for those liabilities from Home Depot’s balance sheet at January 31, 2010.

2. Review Home Depot’s note 5. The note reports that as of January 31, 2010, it had $2.96 billion of “5.875% Senior Notes; due December 16, 2036; interest payable semiannually on June 16 and December 16.” These notes have a face value of $3.0 billion and were originally issued at $2.958 billion.

a. Why would Home Depot issue $3.0 billion of its notes for only $2.958 billion?

b. How much cash interest must Home Depot pay each June 16 and December 16 on these notes?

40. A DuPont analysis is conducted using the DuPont equation, which helps to Identify and analyze thr...

A DuPont analysis is conducted using the DuPont equation, which helps to Identify and analyze three important factors that drive a ROfc. According to the equation, which of the following factors directly affect a company's ROE? Check all that apply. Operational efficiency Financial leverage Efficiency In use of total assets Most investors and analysts in the financial community pay particular attention to a company's ROE. The ROE can be calculated simply by dividing a firm's net income by the firm's shareholder's equity, and it can be subdivided into the key factors that drive the ROE. Investors and analysts focus on these drivers to develop a clearer picture of what is happening within a company. An analyst gathered the following data and calculated the various terms of the DuPont equation for three companies. Referring to these data, which of the following conclusions will be true about the companies EOEs? The main driver of company A's inferior ROE, as compared to that of comapny C's ROE, is its higher total asset turnover ratio. The main driver of company C's superior ROE, as compared to that of company A's and company B's ROE, is its efficient use of assets. The main driver of company C's superior ROE, as compared to that of company A's and company B's ROE. is its greater use of debt financing.

41. Comment on why inflation may restrict the usefulness of the balance sheet as normally presented....

Comment on why inflation may restrict the usefulness of the balance sheet as normally presented.  Explain why the statement of cash flows provides useful information that goes beyond income statement and balance sheet Data?

42. 6. KAS Transport Ltd. purchased from Delhi Motors 3 trucks costing Rs. 50.000 each hire purchase...

6.KAS Transport Ltd. purchased from Delhi Motors 3 trucks costing Rs. 50.000 each

hire purchase system. Payment has to be made Rs. 30.000 down and the remainder

in three equal annual instalments together with interest at 9%. Calculate interest for

each car.

7.A Machine costing Rs. 50,000 was purchased on hire purchase basis. Rs. 10,000

was paid on signing the agreement and the balance in four equal instalments of

Rs. 10,000 each annually with interest at 5%. Calculate interest and show the amount

payable on each instalment.

43. On July 1, Year 1, Tungushka Corporation purchased factory equipment for $100,000. Salvage value was

On July 1, Year 1, Tungushka Corporation purchased factory equipment for $100,000. Salvage value was estimated at $4,000. The equipment will be depreciated over 10 years using the double-declining-balance method. Counting the year of acquisition as one-half year, Tungushka should record Year 2 depreciation expense of A) $17,280 B) $18,000 C) $16,000 D) $20,000

44. The basic accounting equation is: Assets = Liabilities + Owner’s Equity. Replacing the words in that

The basic accounting equation is: Assets = Liabilities + Owner’s Equity. Replacing the words in that equation with dollar amounts, what is Coca-Cola’s accounting equation at December 31, 2007?View Solution:

The basic accounting equation is Assets Liabilities Owner s

45. The 100-room limited service Pepper Inn has an ADR of $80 and variable cost per room sold of $15....

The 100-room limited service Pepper Inn has an ADR of $80 and variable cost per room sold of $15. Assume there is no other sales activity. Its monthly fixed cost total $100,000.1.How many rooms must be sold to break even?2.What day of the month does it break even if it averages a paid occupancy percentage of 60 percent? Assume all 100 rooms are available for sale each day.3.if variable costs are reduced by $3 and fixed cost increase by $72,000 annually, what are the monthly breakeven revenues?

46. Activity-Based Costing and Conventional Costs Compared

Chef Grill Company manufactures two types of cooking grills: the Gas Cooker and the Charcoal Smoker. The Cooker is a premium product sold in upscale outdoor shops; the Smoker is sold in major discount stores. Following is information pertaining to the manufacturing costs for the current month.

Manufacturing overhead follows:

Rounding instructions: Do not round until your final answers. Round total cost answers to the nearest dollar and per unit answers to the nearest cent.

(a) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming all manufacturing overhead is assigned on the basis of direct labor dollars.

HINT: Use 7.3809 for overhead rate calculations.

(b) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming manufacturing overhead is assigned using activity-based costing.

Total cost $Answer Gas Cooker $Answer per unit Charcoal Smoker $Answer per unit

47. The management of Kuiper Inc. asks your help in determining the comparative effects

The management of Kuiper Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2012, the accounting records show these data.

Units purchased consisted of 35,000 units at $3.70 on May 10; 60,000 units at $3.90 on August 15; and 25,000 units at $4.20 on November 20. Income taxes are 28%.

Instructions

(a) Prepare comparative condensed income statements for 2012 under FIFO and LIFO. (Show computations of ending inventory.)

(b) Answer the following questions for management in the form of a business letter.

(1) Which inventory cost flow method produces the inventory amount that most closely approximates the amount that would have to be paid to replace the inventory? Why?

(2) Which inventory cost flow method produces the net income amount that is a more likely indicator of next period"s net income? Why?

(3) Which inventory cost flow method is most likely to approximate the actual physical flow of the goods? Why?

(4) How much more cash will be available under LIFO than under FIFO? Why?

(5) How much of the gross profit under FIFO is illusionary in comparison with the gross profit under LIFO?

48. Larned Corporation recorded the following transactions for the just completed month. a. $80,000...

49. Chemical engineers at a Coleman Industries plant in the Midwest have determined that a small amou...

Chemical engineers at a Coleman Industries plant in the Midwest have determined that a small amount of a newly available chemical additive will increase the water repellency of Coleman's tent fabric by 20%. The plant superintendent has arranged to purchase the additive through a 5-ycar contract at $7000 per year, starting I year from now. He expects the annual price to increase by 12% per year thereafter for the next 8 years. Additionally, an initial investment of $35,000 was made now to prepare a site suitable for the contractor to deliver the additive. Use i=15% per year to determine the equivalent total present worth for all these cash flows.

50. a. Describe the relevant statutory, legislative and regulatory requirements for documentation of...

a. Describe the relevant statutory, legislative and regulatory requirements for documentation of accounting