Accounting

  1. Julie Molony opened Julie's Maids Cleaning Service on July 1, 2010. During July, the company completed the transactions.

    July 1 Invested $14,000 cash in the business 1 Purchased a used truck for $10,000 paying $3,000 cash and the balance on account. 3

  2. If a company erroneously records a $500 deposit as $50 in its records, which of the following must occur when reconciling its bank statement?

    a. The company must increase the balance per its records by $500. b. The company must decrease the balance per its

  3. On October 15, 2020, a fire destroyed all the stock of equipment of Eyeliner Equipment Center in its rented stockroom. The records of the firm show the following information:

    2019 2018 2017 2016 Sales P 925,000 P 880,000 P 790,000 P 710,000 Cost of Sales

  4. On April 1, 10,000 shares of $5 par common stock were issued at $22, and on April 7, 5,000 shares of $50 par preferred stock were issued at $104.

    Journalize the entries for April 1 and 7. For a compound transaction, if an amount box does not require an

  5. Below is budgeted production and sales information for Flushing Company for the month of December:

    Product XXX Product ZZZ Estimated beginning inventory 30,000 units 18,000 units Desired ending inventory 34,000 units 17,000 units Region I, anticipated sales

  6. The Account Cycle

    Bob night opened "The general's favorite Fishing Hole" The fishing camp is open from April through September and attracts many famous college basketball coaches during the off-season. Guests typically register for one week, arriving on

  7. Samuels, Inc. reported net income for 2011 is $105,000. During 2011 the company had 5,000 shares of $100 par, 5% preferred stock and 20,000 of $5 par common stock outstanding. Samuels’ earnings per share for 2011 is

    A.$4.00 B.$5.25 C.$6.50 D.$5.00

  8. The primary objective in job order costing is to determine the cost of materials, labor, and factory overhead used to produce a specific order or contract. Cost estimates are made when the order is taken, and the job order procedures are designed to reveal

  9. I am working on a problem that wants me to make a balance sheet and income statement for the Argo Sales Company based on some information given that I have no idea how to compute. I have been able to figure out how to do a ratio correctly if I am given the

  10. What is the total stockholders' equity based on the following account balances?

    Common Stock $450,000 Paid-In Capital in Excess of Par 90,000 Retained Earnings 190,000 Treasury Stock 10,000 Answer A.$740,000 B.$730,000 C.$720,000 D.$640,000

  11. Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR),

    accrued expenses (AE), or accrued revenues (AR). a. To record revenue earned that was previously received as cash in advance. b. To record annual

  12. 1. What are the three types of assets that will be found on a balance sheet?

    A.local, national, and international B. land , buildings , and liquid C.current , fixed, and intangible D.short - term, long -term , and medium

  13. As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March were as follows: $120,000, $140,000 and $150,000. 20% of each month’s sales are for cash. Of the remaining 80% (the

  14. The following data relate to direct labor costs for the current period:

    Standard costs 6,000 hours at $12.00 Actual costs 7,500 hours at $11.60 What is the direct labor rate variance? Answer A.$15,000 unfavorable B.$3,000 favorable C.$17,400 unfavorable

  15. CollegePak Company produced and sold 60,000 backpacks during the year just ended at an average price of $20 per unit. Variable manufacturing costs were $8 per unit, and variable marketing costs were $4 per unit sold. Fixed costs amounted to $180,000 for

  16. If fixed costs are $300,000, the unit selling price is $31, and the unit variable costs are $22, what is the break-even sales (units) if fixed costs are reduced by $30,000?

    Answer 30,000 units 8,710 units 12,273 units 20,000 units

  17. If fixed costs are $250,000, the unit selling price is $125, and the unit variable costs are $73, what is the break-even sales (units)?

    Answer 3,425 units 2,381 units 2,000 units 4,808 units

  18. Percent of Sales Method

    At the end of the current year, Accounts Receivable has a balance of $4,375,000; Allowance for Doubtful Accounts has a debit balance of $21,300; and sales for the year total $102,480,000. Bad debt expense is estimated at 1/4 of 1% of

  19. On March 1, 2003, a company paid a $16,200 premium on a 36-month insurance policy for coverage

    beginning on that date. Refer to that policy and fill in the blanks in the following table: Check 2005 insurance expense: Accrual, $5,400; Cash, $0. Dec. 31,

  20. In its first month of operations, Giffin Company made three purchases of merchandise in the following sequence: (1) 260 units at $5, (2) 360 units at $7, and (3) 460 units at $8. Assuming there are 160 units on hand at the end of the period, compute the

  21. Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period,

  22. Department J had no work in process at the beginning of the period, 18,000 units were completed during the period, 2,000 units were 30% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in

  23. Zell Company had sales of $1,800,000 and related cost of merchandise sold of $1,150,000 for its first year of operations ending December 31, 2016. Zell Company provides customers a refund for any returned or damaged merchandise. At the end of the year,

  24. DeWeese Corporation issues $400,000 of 8%, 5-year bonds on January 1, 2015, at 105. Assuming that the straight-line method is used to amortize the premium, what is the total amount of interest expense for 2015?

  25. On January 1, 2009, Sweetwater Furniture Company leased office space under a 21-year operating lease agreement. The contract calls for annual rent payments on December 31 of each year. The payments are $11,000 the first year and increase by $600 per year.

  26. A credit to a liability account was posted to an owner's equity account. This would cause __________.

    A. assets to be overstated B. liabilities to be understated C. owner's equity to be understated D. net income to be overstated i think its D A credit to an

  27. A check returned by a bank because the issuer's cash account balance could not cover the check is called a(n):

    a. Cancelled check b. Certified check c. Outstanding check d. NSF check

  28. Gorton Corporation has 30,000 shares of $10 par value common stock outstanding when it announces a 2-for-1 stock split. Before the split, the stock had a market price of $120 per share.

    After the split, how many shares of stock will be outstanding? Common

  29. The accounts payable account is a/an _______, and it has a normal ________ balance.

    A. revenue; debit B. expense; credit C. liability; debit D. liability; credit I think the answer is D.

  30. Blane Company has the following data: Total Sales 800,000, Total Variable Costs 300,000, Fixed Costs 200,000, Units Sold 50,000, What will operating income be if units sold double to 100,000 units?

  31. Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning:

    1. Pay $950,000 in cash immediately. 2. Pay $420,000 immediately and the

  32. Krollon Company uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company’s processing departments:

    According to the company’s costing system, the cost of beginning inventory

  33. The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.

    NELSON COMPANY Unadjusted Trial Balance January 31, 2013 Debit Credit Cash $ 26,150 Merchandise inventory 14,500 Store supplies 5,000 Prepaid insurance 2,100 Store

  34. Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce

  35. What equation was used to get the answer in requirement 3?

    Consulting to control costs. Requirement 1. Compute Draper's predetermined overhead (OH) allocation rate for 2018. Estimated OH costs / Estimated direct labor costs = Predetermined OH allocation

  36. The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:

    Standard Costs Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead 3 hours @ $2.00 per hour Actual

  37. Complete the six-column table by entering adjustments that reflect the following information:

    a. As of December 31, 2005, employees had earned $900 of unpaid and unrecorded salaries. The next payday is January 4, at which time $1,600 of salaries will be

  38. Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets=Liabilities +Owner's Equity (Capital-Drawing+Revenues-Expenses). After each transaction, show the new account total.

    Prepare Income Statement, Balance

  39. What would the journal entry be for this transaction?

    sent a reminder to Gomez Co to pay the fee for services recorded on November 8 There would be no entry since a transaction did not take place.

  40. 1. The price of a bond is equal to the sum of the interest payments and the face amount of the bonds.

    1. True 2. False 2. When a corporation issues bonds, it executes a contract with the bondholders, known as a bond debenture. 1. True 2. False 3. A

  41. Dividing Partnership Income

    Desmond Drury and Ty Wilkins have decided to form a partnership. They have agreed that Drury is to invest $44,700 and that Wilkins is to invest $104,300. Drury is to devote full time to the business, and Wilkins is to devote

  42. Identify whether each of the following items would appear on the income statement (IS), statement of changes in stockholders’ equity (SE), balance sheet (BS), or statement of cash flows (CF). Some items may appear on more than one statement; if so,

  43. Describe the mechanisms that WorldCom’s management

    used to transfer profit from other time periods to inflate the current period.

  44. Cruise industries purchased $10,800 of merchandise on February 1, 2007, subject to a discount trade of 10% and with credit terms of 3/15, n/60. It returned $2,500 (gross price before trade or cash discount) on February 4. The invoice was paid on February

  45. A process began the month with 3,000 units in the beginning work in process inventory and ended the month with 2,000 units in the ending work in process. If 12,000 units were completed and transferred out of the process during the month, how many units

  46. Zeke Company is a manufacturing company that has worked on several production jobs during the 1st quarter of the year. Below is a list of all the jobs for the quarter:

    Balance Job 356 $ 450 Job 357 $1,235 Job 358 $ 378 Job 359 $ 689 Job 360 $ 456 Job 356,

  47. Effect of Stock Split

    Gino's Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Midwest. Gino's Restaurant Corporation, which had 100,000 shares of common stock outstanding, declared a 5-for-1 stock split (4 additional shares

  48. Go to Table 10-1 which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 11 percent to 8 percent:

    A. What is the bond price at 11%? B. What is the bond price at 8%? C. What would

  49. Identify whether each description best applies to a periodic or a perpetual inventory system.

    a. Provides more timely information to managers. b. Requires an adjusting entry to record inventory shrinkage. c. Markedly increased in frequency and popularity in

  50. Internal control devices for banking activities include signature cards, deposit tickets, checks, and bank statements.

    01.) True 02.) False True or False?

  51. E3-5 Drew Carey Company has the following balances in selected accounts on December 31,2008.

    Accounts Receivable $ -0- Accumulated Depreciation—Equipment -0- Equipment 7,000 Interest Payable -0- Notes Payable 10,000 Prepaid Insurance 2,100 Salaries

  52. The cost principle requires that when assets are acquired, they be recorded at

  53. At the beginning of April, Owl Corporation has a balance of $12,000 in the Retained Earnings account. During the month of April, Owl had the following external transactions.

    1. Issue common stock for cash, $10,000. 2. Provide services to customers on

  54. The Clydesdale Company has sales of $4,500,000. It also has invested assets of $2,000,000 and operating expenses of $3,600,000. The company has established a minimum rate of return of 7%.

    What is Clydesdale Company's profit margin? A.20% B.80% C.44.4% D.18%

  55. Dristell Inc. had the following activities during the year (all transactions are for cash unless stated otherwise):

    A building with a book value of $400,000 was sold for $500,000. Additional common stock was issued for $160,000. Dristell purchased its own

  56. The income tax rate is 30% on current and is payable in the first quarter of 2014. The pretax income before the preceding adjusting entries is $6,800.

    The accounts are; Income tax expense Income tax payable. I do not understand this question and what it is

  57. Continuing Cookie Chronicle

    (Note: This is a continuation of the Cookie Chronicle from Chapters 1 through 6.) CCC7 Part 1 Natalie is struggling to keep up with the recording of her accounting transactions. She is spending a lot of time marketing and selling

  58. O' Hara Company began operations on December 1, 2011. Presented below is selected information related to O' Hara Company at December 31, 2011.

    Office Equipment ₤ 40,000; Utilities Expense ₤ 6,000; Cash 14,000; Accounts Receivable 27,000; Service Revenue

  59. Which of the following is a reconciling item on the bank side of a bank reconciliation?

    a. both "outstanding checks" and "NSF checks" b. canceled checks c. outstanding checks d. NSF checks

  60. Redmon Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements

    journal, and a general journal. The following transactions occur in the month of June. June 1 Purchased $8,100 of merchandise on credit from Vick, Inc.,

  61. An example of a committed fixed cost would be:

    a) taxes on real estate b) management development programs c) public relations d) advertising programs

  62. For the past year, Hornbostel Company had fixed costs of $6,552,000, a unit variable cost of $444, and a unit selling price of $600. For the coming year, no changes are expected in revenues and costs, except that a new wage contract will increase variable

  63. Assume a $4000 investment and the following cash flows for two alternatives. Under the payback method, which of the following would be concluded?

    a. Investment X should be selected b. Investment Y should be selected c. Investment X and Y provide the same

  64. The rent payment made on June 17 was for June, July, August and September. Expense the amount associated with one month's rent.

  65. The following information is necessary to compute the net assets (stockholders' equity) and book value per share of common stock for Rothchild Corporation:

    8% cumulative preferred stock, $100 par $ 200,000 Common stock, $5 par, authorized 100,000 shares,

  66. Rexford Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inventories at the beginning and end of the month of January.

    January 1 January 31 Finished goods $126,000 $117,000 Work in process

  67. Temporary investments

    A.are reported as current assets B.include cash equivalents C.do not include equity securities D.all of the above

  68. Herring Wholesale Company has a defined benefit pension plan. On January 1, 2016, the following pension related data were available:

    ($ in 000s) Net gain–AOCI $ 350 Accumulated benefit obligation 3,170 Projected benefit obligation 3,200 Fair value of plan

  69. Accounts receivable in the amount of 250,000 were assigned to the fast Finance Company by Nance INC as security for a loan of 200,000. The finance company charged a 4% commision on the face amount of the loan, and the note bears interest at 9% per year.

  70. Chicks Corporation had $1,100,000 in invested assets, sales of $1,210,000, income from operations amounting to $242,000, and a desired minimum rate of return of 15%.

    The investment turnover for Chicks is: A.1.3 B.1.2 C.1.0 D.1.1

  71. Production and sales estimates for April are as follows:

    Estimated inventory (units), April 19,000 Desired inventory (units), April 30 18,000 Expected sales volume (units): Area A 3,500 Area B 4,750 Area C 4,250 Unit sales price $20 The number of units

  72. Accounting 1 Help!

    1. An accountant records a transaction when cash is paid or received under which basis of accounting? cash deferred accrual liability 2. When unearned revenue is initially recorded as a revenue, the adjusting entry would include a credit

  73. This is for an accounting course doing adjusting entries..

    The rental revenue represents the amount received for 11 months for dining facilities. The December rent has not yet been received. On the trial balance the amount for rental revenue is 17,600 Would

  74. T/F Questions

    The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences. Sales Discounts is a revenue account with a credit balance. Multiple Choice: Assuming a 360-day year,

  75. The cost of an asset less accumulated depreciation equals what

  76. Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and interest is paid semi-annually. The journal entry to record the receipt of interest on the next interest payment date would be:

  77. Maris Corporation acquired a patent on May 1, 2008. Maris paid cash of $25,000 to the seller. Legal fees of $1,000 were paid related to the acquisition. What amount should be debited to the patent account?

    $1,000 $24,000 $25,000 $26,000

  78. NOTE: I NEED HELP WITH THESE 10 QUESTIONS,IT IS AN EMERGENCY PLEASE!

    Use the following information to answer questions 1-4. The Bayside Company uses the LIFO cost flow method to value inventory. In the current year, profit at Bayside is running unusually

  79. On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000. For the year ending, December 31, McGuire earned income of $48,000 and paid dividends of $14,000.

    Prepare the entries for Todd Company for the purchase of the

  80. Accounts receivable will appear on which of the following financial statements?

    Statement of changes in stockholders’ equity Statement of cash flows Balance sheet Income statement

  81. For each of the following items, give an example of a business transaction that has the described effect on the accounting equation:

    Increase an asset and increase a liability: Increase one asset and decrease another asset. Decrease an asset and decrease

  82. If fixed costs are $240,000, the unit selling price is $32, and the unit variable costs are $20, what are the old and new break-even sales (units) if the unit selling price increases by $4?

    a. 12,000 units and 15,000 units b. 7,500 units and 6,667 units c.

  83. A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of $10, $100 par, cumulative preferred stock and 50,000 shares of $10 par common stock. The amounts distributed as dividends are presented below.

    Det

  84. How does an inventory write-off effect the cash flow statement?

  85. which of the following situations will not cause a deferred income tax amount to be recorded ?

    a - expense that is recognized in 20A for income tax purposes and in 20 B for financial statement purposes b - expense that is recognized in 20A for financial

  86. A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, $4,000; Transportation-In, $450; Purchases, $12,000; Purchases Returns and Allowances, $2,300; Purchases Discounts, $220.

  87. The beginning inventory of Merchandise at Waldo Co. and data on purchases and sales for a three-month period are as follows:

    Date Transaction Number of Units Per Unit Total March 3 Inventory 60 $1500 $90,000 8 Purchase 120 1800 216,000 11 Sale 80 5000

  88. Using the data in situation a of Exercise 11-6, prepare the employer’s September 30 journal entries

    to record (1) salary expense and its related payroll liabilities for this employee and (2) the employer’s payroll taxes expense and its related

  89. Holly County needs a new county government building that would cost $24 million. The politicians feel that voters will not approve a municipal bond issue to fund the building since it would increase taxes. They opt to have a state bank issue $24 million of

  90. On July 1, 2013, a firm purchased a 1-year insurance policy for $6,300 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2013, is

    $6,300. $3,150. $3,675. $2,100. On January 2, 2014, a

  91. On June 1, Melendez Company borrows $90,000 from First Bank on a 6-month,

    $90,000, 12% note. Instructions (a) Prepare the entry on June 1. (b) Prepare the adjusting entry on June 30. (c) Prepare the entry at maturity (December 1), assuming monthly adjusting

  92. A company just starting a business made the following four inventory purchases in June:

    June 1 150 units $390 June 10 200 units 585 June 15 200 units 630 June 28 150 units__ ____

  93. Dividing Partnership Income

    Desmond Drury and Ty Wilkins have decided to form a partnership. They have agreed that Drury is to invest $140,700 and that Wilkins is to invest $60,300. Drury is to devote full time to the business, and Wilkins is to devote

  94. The question is:

    Compute the recent two years’ cash flow on total assets ratios for this company. This is the info given: Operating cash flow for current year (in millions): $1,762 1 year prior - $1,740 2 years prior - $1,981 Total Assets for current year

  95. Brodigan Corporation has provided the following information

    concerning a capital budgeting project: Investment required in equipment $450,000 Net annual operating cash inflow $220,000 Tax rate 30% After-tax discount rate 12% The expected life of the project

  96. Exercise 3-7

    Determining assets and expenses for accrual and cash accounting C2 On March 1, 2003, a company paid a $16,200 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the

  97. Starfax, Inc., manufactures a small part that is widely used in various electronic products such as

    home computers. Operating results for the fi rst three years of activity were as follows (absorption costing basis): In the latter part of Year 2, a

  98. Three years back, Mr. Az bought a property from Mr. Za for $100,000 under a term. Today, after the depreciation property's book value is $70,000. Now, Mr. Za asking $200,000 more to give the title of the property to Mr. Az, and Mr. Az is bond to pay this

  99. What would you pay for a $50,000 debenture bond that matures in 15 years and pays $5,000 a year in interest if you wanted to earn a yield of: (Round computations to 2 decimal places and use the rounded amounts to calculate the final answer. Round the final

  100. Given the following information, calculate, in order, the amount credited and the outstanding balance.

    Invoice: $1,000 Terms: 3/10, n/30 Invoice date: May 5 Payment amount: $800 Date paid: May 9

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