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Winter Semester Accounting: Help with Modules and Discussion
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21. 104.If a resource has been consumed but a bill has not been received at the end of the accounting...104.If a resource has been consumed but a bill has not been received at the end of the accounting period, then:
a.an expense should be recorded when the bill is received.
b.an expense should be recorded when the cash is paid out.
c.an adjusting entry should be made recognizing the expense.
d.it is optional whether to record the expense before the bill is received.
105.An asset–expense relationship exists with:
a.liability accounts.
b.revenue accounts.
c.prepaid expense adjusting entries.
d.accrued expense adjusting entries.
106.A liability–revenue relationship exists with:
a.asset accounts.
b.revenue accounts.
c.unearned revenue adjusting entries.
d.accrued expense adjusting entries.
107.Adjusting entries can be classified as:
a.postponements and advances.
b.accruals and deferrals.
c.deferrals and postponements.
d.accruals and advances.
108.Adjusting entries can be classified as:
a.postponements and advances.
b.accruals and advances.
c.deferrals and postponements.
d.accruals and deferrals.
109.Accrued expenses are:
a.incurred but not yet paid or recorded.
b.paid and recorded in an asset account after they are used or consumed.
c.paid and recorded in an asset account before they are used or consumed.
d.incurred and already paid or recorded.
110.Accrued revenues are:a.received and recorded as liabilities before they are earned.
b.earned and recorded as liabilities before they are received.
c.earned but not yet received or recorded.
d.earned and already received and recorded.
111.Prepaid expenses are:
a.paid and recorded in an asset account before they are used or consumed.
b.paid and recorded in an asset account after they are used or consumed.
c.incurred but not yet paid or recorded.
d.incurred and already paid or recorded.
112.Goods purchased for future use in the business, such as supplies, are called:
a.prepaid expenses.
b.revenues.
c.stockholders’ equity.
d.liabilities.
113.Accrued expenses are:
a.paid and recorded in an asset account before they are used or consumed.
b.paid and recorded in an asset account after they are used or consumed.
c.incurred but not yet paid or recorded.
d.incurred and already paid or recorded.
22. Which of the following would appear in a trading account ? A discount allowed B carriage outward C..
Which of the following would appear in a trading account ?
A discount allowed
B carriage outward
C carriage inward
D discount received
How should a contingent liability be included in a firm’s financial statements if the likelihood of a transfer of economic benefit to settle it is remote ?
A. disclosed by note with some provisions being made
B. disclosed by note with no provision being made
C. neither disclosure nor provision is required
D. adequate provision should be made
23. Multiple choice
1. The collective value of the capabilities, knowledge, skills, life experiences and motivation of an organizational workforce is called
the organization s talent inventory.
total human resources.
human capital.
the organization s intellectual assets.
2. The largest professional organization for HR generalists is
the International Personnel Management Association (IPMA).
the American Society for Training and Development (ASTD).
the Human Resource Certification Institute (HRCI).
the Society for Human Resource Management (SHRM).
3. Which of the following statements about organizational culture is FALSE?
The organization s culture is seen in its norms of expected behaviors, values, philosophies, rituals and symbols.
An organization s rules of behavior may not be beneficial and may limit the organization s performance.
Organizational cultures are static, and tend to remain almost identical to the culture established by the founder.
Values determine how organizational members treat coworkers and people outside the organization
4. The extent to which employees feel linked to organizational success and how the organization performs positively is termed
employee engagement.
employee performance motivation.
employee morale.
employee organizational commitment.
24. TERMINATION OF EMPLOYMENT Top of Form SCENARIO Glorious Fashions is a retail organization with...
TERMINATION OF EMPLOYMENT
Top of Form
SCENARIO
Glorious Fashions is a retail organization with offices and boutiques in Ontario and Québec. The organization started operations in 1978 and currently has an approximate annual payroll of $12,000,000 in each jurisdiction.
The organization is considering terminating the employment of five employees at each location. To assist with forecasting the budget for the balance of the year, Susan Little, the Director of Finance has asked you, as the Payroll Supervisor, to provide her with the details on all legislated payments on termination of employment required for each jurisdiction. In addition to the required payments on termination, include any employer costs related to the employees’ statutory deductions.
Prepare your response (350 – 500 words) using correct spelling, grammar and punctuation. You will be penalized if you are excessively over or under the suggested word count. Your response must be stated in your own words and should be based on the course material, your experiences, knowledge gained through the course and at least one external government resource.
Any responses taken directly from the external government resource or course material will not be accepted. Information referenced from the government resource(s) and the course material must be cited. For example:
· if you are referencing the Canada Revenue Agency’s Employers' Guide - Payroll Deductions and Remittances – T4001, state the URL where the information can be found,http://www.cra-arc.gc.ca/E/pub/tg/t4001/README.html and the page number, if applicable
25. Tammy Potter, a new partner with the regional CPA firm of Tower & Tower, was recently...
Tammy Potter, a new partner with the regional CPA firm of Tower & Tower, was recently appointed to the board of directors of a local civic organization. The chairman of the board of the civic organization is Lewis Edmond, who is also the owner of a real estate development firm, Tierra Corporation.
26. Pitt Limited is trying to determine the value of its ending inventory as of February 28, 2017,...
Pitt Limited is trying to determine the value of its ending inventory as of February 28, 2017, the company’s year-end. The accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of $48,000. However, she didn’t know how to treat the following transactions so she didn’t record them.
(a) On February 26, Pitt shipped to a customer goods costing $800. The goods were shipped FOB shipping point, and the receiving report indicates that the customer received the goods on March 2.
(b) On February 26, Martine Inc. shipped goods to Pitt FOB destination. The invoice price was $350 plus $25 for freight. The receiving report indicates that the goods were received by Pitt on March 2.
(c) Pitt had $500 of inventory at a customer’s warehouse “on approval.” The customer was going to let Pitt know whether it wanted the merchandise by the end of the week, March 4.
(d) Pitt also had $400 of inventory at a Belle craft shop, on consignment from Pitt.
(e) On February 26, Pitt ordered goods costing $750. The goods were shipped FOB shipping point on February 27. Pitt received the goods on March 1.
(f) On February 28, Pitt packaged goods and had them ready for shipping to a customer FOB destination. The invoice price was $350 plus $25 for freight; the cost of the items was $280. The receiving report indicates that the goods were received by the customer on March 2.
(g) Pitt had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $400 and, originally, Pitt expected to sell these items for $600.
Instructions
For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. For each item that is not included in ending inventory, indicate who owns it and what account, if any, it should have been recorded in.
27. 1. Net Present Value – Swanson Industries has four potential projects all with an initial cost of...
1. Net Present Value – Swanson Industries has four potential projects all with an initial cost of $2,000,000. The capital budget for the year will only allow Swanson industries to accept one of the four projects. Given the discount rates and the future cash flows of each project, which project should they accept?
Cash Flows Project M Project N Project O Project P
Year one $500,000 $600,000 $1,000,000 $300,000
Year two $500,000 $600,000 $800,000 $500,000
Year three $500,000 $600,000 $600,000 $700,000
Year four $500,000 $600,000 $400,000 $900,000
Year five $500,000 $600,000 $200,000 $1,100,000
Discount Rate 6% 9% 15% 22%
Solution, find the NPV of each project and compare the NPVs.
Project M’s NPV = -$2,000,000 + $500,000/1.05 + $500,000/1.052 + $500,000/1.053 + $500,000/1.054 + $500,000/1.055
Project M’s NPV = -$2,000,000 + $476,190.48 + $453,514.74 + $431,918.80 + $411,351.24 + $391,763.08
Project N’s NPV = $164,738.34
Project N’s NPV = -$2,000,000 + $600,000/1.09 + $600,000/1.092 + $600,000/1.093 + $600,000/1.094 + $600,000/1.095
Project N’s NPV = -$2,000,000 + $550,458.72 + $505,008.00 + $463,331.09 + $425,055.13 + $389,958.83
Project N’s NPV = $333,790.77
Project O’s NPV = -$2,000,000 + $1,000,000/1.15 + $800,000/1.152 + $600,000/1.153 + $400,000/1.154 + $200,000/1.155
Project O’s NPV = -$2,000,000 + $869,565.22 + $604,914.93 + $394,509.74 + $228,701.30 + $99,435.34
Project O’s NPV = $197,126.53
Project P’s NPV = -$2,000,000 + $300,000/1.22 + $500,000/1.222 + $700,000/1.223 + $900,000/1.224 + $1,100,000/1.225
Project P’s NPV = -$2,000,000 + $245,901.64 + $335,931.20 + $385,494.82 + $406,259.18 + $406,999.18
Project P’s NPV =-$219,413.98 (would reject project regardless of budget)
And the ranking order based on NPVs is,
Project N – NPV of $333,790.77
Project O – NPV of $197,126.53
Project M – NPV of $164,738.34
Project P – NPV of -$219,413.98
Swanson Industries should pick Project N.
28. The following data relate to the Machinery account of Eshkol,
The following data relate to the Machinery account of Eshkol, Inc. at December 31, 2012.
*In the year an asset is purchased, Eshkol, Inc. does not record any depreciation expense on the asset.
In the year an asset is retired or traded in, Eshkol, Inc. takes a full year’s depreciation on the asset.
The following transactions occurred during 2013.
(a) On May 5, Machine A was sold for $13,000 cash. The company’s bookkeeper recorded this retirement in the following manner in the cash receipts journal.
Cash …………………………………….. 13,000
Machinery (Machine A) …………………13,000
(b) On December 31, it was determined that Machine B had been used 2,100 hours during 2013.
(c) On December 31, before computing depreciation expense on Machine C, the management of Eshkol, Inc. decided the useful life remaining from January 1, 2013, was 10 years.
(d) On December 31, it was discovered that a machine purchased in 2012 had been expensed completely in that year. This machine cost $28,000 and has a useful life of 10 years and no salvage value. Management has decided to use the double-declining-balance method for this machine, which can be referred to as ?oMachine E.??
Instructions
Prepare the necessary correcting entries for the year 2013. Record the appropriate depreciation expense on the above-mentionedmachines.
29. The following data are taken from the unadjusted trial balance of the Westcott Company at Decembe...
The following data are taken from the unadjusted trial balance of the Westcott Company at December 31, 2015. Each account carries a normal balance and the accounts are shown here in alphabetical order. Use the data above to prepare a work sheet. Enter the accounts in proper order and enter their balances in the correct Debit or Credit column. Use the following adjustment information to complete the work sheet. Depreciation on equipment, $3 Accrued salaries, $6 The $12 of unearned revenue has been earned Supplies available at December 31, 2015, $15 Expired insurance, $15
30. Your answer is partially correct. Try again. Doug's Custom Construction Company is considering th...
Your answer is partially correct. Try again. Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $23,540. Each project will last for 3 years and produce the following net annual cash flows. Year AA BB CC 1 $7,490 $10,700 $13,910 9,630 10,700 12,840 3 12,840 10,700 11,770 Total $29,960 $32,100 $38,520 The equipment's salvage value is zero, and Doug uses straight-line depreciation. Doug will not accept any project with a cash payback period over 2 years. Doug's required rate of return is 12%. Click here to view PV table (a) Compute each project's payback period. (Round answers to 2 decimal places, e.g. 15.25.) 2.5 years BB 2.2 years 1.75 years Which is the most desirable project? The most desirable project based on payback period is Project CC Which is the least desirable project? The least desirable project based on payback period is Project AA T
31. Why have reengineering efforts been made to integrate AIS and MIS?
Why have reengineering efforts been made to
integrate AIS and MIS?
32. 20. On 1.1.1994, X, a television dealer, bought 5 television sets from Superfine Television Co. on..
20.On 1.1.1994, X, a television dealer, bought 5 television sets from Superfine Television
Co. on hire purchase. The cash price of each set was Rs. 20,000, it was agreed that
Rs. 25,000 should be paid immediately and the balance in three instalments of
Rs. 30,000 each at the end of each year. The Television Co. charges interest @
10% per annum. The buyer depreciates television sets at 20% per annum on the
diminishing balance method.
X paid cash down and two installments but failed to pay the last installment.
Consequently, the Television Co. repossessed three sets, leaving two sets with the
buyer and adjusting the value of 3 sets against the amount due. The sets repossessed
were valued on the basis of 30% depreciation p.a. on the written down value. The
sets repossessed were sold by the Television Co. for Rs. 30,000 after necessary
repairs amounting to Rs. 5,000. Open necessary ledger accounts in the books of both
the parties.
33. Which details apply to a financing contract? Check all that apply. requires a credit check are alway
Which details apply to a financing contract? Check all that apply. requires a credit check are always less expensive than using a credit card includes interest rate information requires a signature for rent-to-own agreements can be broken at any time
34. 1. When considering accounting information systems, which of the following is false? a. Accounting..
1. When considering accounting information systems, which of the following is false? a. Accounting information systems vary in size across companies b. An accounting information system records and summarizes economic events c. All accounting information systems use the same basic procedures to identify, record, and communicate the effects of economic events d. Accounting information systems record all economic events 2. Which of the following would be considered an accounting transaction? a. Hiring a new CEO b. Selling an in-house developed patent c. Establishing a new company dress code d. Posting journal entries to the general ledger 3. Which of the following would not be an account found in the financial statements? a. Equipment b. Salaries Payable c. Employees Personal Data d. Dividends 4. Which of the following is false regarding a chart of accounts? a. The total number of asset accounts must equal the total number of liability accounts b. A chart of accounts is a listing of all the accounts that a company uses to record accounting information c. Each account listing contains an account name and a numerical reference d. Charts of accounts will vary across companies 5. Which of the following is false? a. A company can have a transaction that affects only the left side of the fundamental accounting equation b. In each accounting transaction, total debits to assets must equal total credits to liabilities c. The fundamental acc
35. 133.Financial information is presented below: Operating Expenses$ 40,000 Sales Revenue 150,000 Cost.
133.Financial information is presented below:
Operating Expenses$ 40,000
Sales Revenue 150,000
Cost of Goods Sold 90,000
Gross profit would be
a.$20,000.
b.$60,000.
c.$110,000.
d.$150,000.
134.Financial information is presented below:
Operating Expenses$ 40,000
Sales Revenue 150,000
Cost of Goods Sold 90,000
The gross profit rate would be
a..133.
b..400.
c..600.
d..733.
135.Financial information is presented below:
Operating Expenses$ 45,000
Sales Returns and Allowances13,000
Sales Discounts6,000
Sales150,000
Cost of Goods Sold79,000
Gross profit would be
a.$52,000.
b.$58,000.
c.$65,000.
d.$71,000.
136.Financial information is presented below:
Operating Expenses$ 45,000
Sales Returns and Allowances13,000
Sales Discounts6,000
Sales Revenue150,000
Cost of Goods Sold79,000
The gross profit rate would be
a..347.
b..397.
c..473.
d..542.
137.Financial information is presented below:
Operating Expenses$ 45,000
Sales Returns and Allowances9,000
Sales Discounts6,000
Sales Revenue160,000
Cost of Goods Sold87,000
The amount of net sales on the income statement would be
a.$145,000.
b.$151,000.
c.$154,000.
d.$160,000.
138.Financial information is presented below:
Operating Expenses$ 45,000
Sales Returns and Allowances9,000
Sales Discounts6,000
Sales Revenue160,000
Cost of Goods Sold87,000
Gross profit would be
a.$13,000.
b.$58,000.
c.$64,000.
d.$67,000.
139.Financial information is presented below:
Operating Expenses$ 45,000
Sales Returns and Allowances9,000
Sales Discounts6,000
Sales Revenue160,000
Cost of Goods Sold87,000
The gross profit rate would be
a..363.
b..400.
c..456.
d..503.
140.If a company has sales revenue of $630,000, net sales of $600,000, and cost of goods sold of $378,000, the gross profit rate is
a.37%.
b.40%
c.60%.
d.63%.
141.Dawson’s Fashions sold merchandise for $40,000 cash during the month of July. Returns that month totaled $1,000. If the company’s gross profit rate is 40%, Murray’s will report monthly net sales revenue and cost of goods sold of
a.$39,000 and $23,400.
b.$39,000 and $24,000.
c.$40,000 and $23,400.
d.$40,000 and $24,000.
142.During August, 2012, Baxter’s Supply Store generated revenues of $30,000. The company’s expenses were as follows: cost of goods sold of $18,000 and operating expenses of $2,000. The company also had rent revenue of $500 and a gain on the sale of a delivery truck of $1,000.
Baxter’s gross profit for August, 2012 is
a.$10,000.
b.$10,500.
c.$11,500.
d.$12,000.
