Question by Accounting

All "Accounting" Questions

On December 1, 2019, Jen died intestate. She was survived by her husband R and kids A and B. R comes to you for advise on howto settle her estate which comprise of the following properties: Properties FV at the time of death Family home P15,000,000.00 Hyundai starrex 2,000,000.00Jewelries 1,500,000.00 Land, inherited from Jen’s Mom 2,500,000.00 Shares of stock on various corporations 10,000,000.00 Cash in bank 15,000,000.00 Remaining mortgage on the family home 2,500,000.00 1. How much is the gross estate of Jen? 2. How much is/are the exclusive properties of Jen? 3. How much is the deduction for the family home? 4. How much is the share of the surviving spouse in the gross estate of Jen? 5. How much is the estate tax due on the estate of Jen?

Seen 11 months ago Jam Xyz 0 answers

Joe operates a business that locates and purchases specialized assets for clients, among other activities. Joe uses the accrual method of accounting but he doesn’t keep any significant inventories of the specialized assets that he sells. Joe reported the following financial information for his business activities during year 0. Determine the effect of each of the following transactions on the taxable business income.a. Joe has signed a contract to sell gadgets to the city. The contract provides that sales of gadgets are dependent upon a test sample of gadgets operating successfully. In December, Joe delivers $12,000 worth of gadgets to the city that will be tested in March. Joe purchased the gadgets especially for this contract and paid $8,500.b. Joe paid $180 for entertaining a visiting out-of-town client. The client didn’t discuss business with Joe during this visit, but Joe wants to maintain good relations to encourage additional business next year.c. On November 1, Joe paid $600 for premiums providing for $40,000 of “key man” insurance on the life of Joe’s accountant over the next 12 months.d. At the end of the year (year 1), Joe’s business reports $9,000 of accounts receivable.
Based upon past experience, Joe believes that at least $2,000 of his new receivables will be uncollectible.e. In December of year 0, Joe rented equipment for a large job. The rental agency required a minimum rental of three months ($1,000 per month), but
Joe completed the job before year-end.f. Joe hired a new sales representative as an employee and sent her to Dallas for a week to contact prospective out-of-state clients. Joe ended up reimbursing his employee $300 for airfare, $350 for lodging, $250 for meals, and $150 for entertainment. Joe requires the employee to account for all expenditures in order to be reimbursed.g. Joe uses his BMW (a personal auto) to travel to and from his residence to his factory. However, he switches to a business vehicle if he needs to travel after he reaches the factory. Last month, the business vehicle broke down and he was forced to use the BMW both to travel to and from the factory and to visit work sites. He drove 120 miles visiting work sites and 46 miles driving to and from the factory from his home.h. Joe paid a visit to his parents in Dallas over the Christmas holidays. While he was in the city, Joe spent $50 to attend a half-day business symposium. Joe paid $200 for airfare, $50 for meals during the symposium, and $20 on cab fare to the symposium.

Seen 1 years ago Li Smith 0 answers

based on the aging of accounts receivable, is the unadjusted balance of the allowance account adequate

Seen 2 years ago Oscar Rhys 0 answers

The Minnetonka Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis.
After considerable research, a cross-country ski line has been developed. Because of the conservative nature of the company management, however, Minnetonka’s president has decided to introduce only one type of the new skis for this coming winter. If the product is a success, further expansion in future years will be initiated.
The ski selected is a mass-market ski with a special binding. It will be sold to wholesalers for $80 per pair. Because of availability capacity, no additional fixed charges will be incurred to produce the skis. A $100,000 fixed charge will be absorbed by the skis, however, to allocate a fair share of the company’s present fixed costs to the new product.
Using the estimated sales and production of 10,000 pair of skis as the expected volume, the accounting department has developed the following cost per pair of skis and bindings:
Direct Labor: $35
Direct Material: $30
Total Overhead: $15
Total: $80
Minnetonka has approached a subcontractor to discuss the possibility of purchasing the bindings. The purchase price of the bindings from the subcontractor would be $5.25 per binding, or $10.50 per pair. If the Minnetonka Corporation accepts the purchase proposal, it is predicted that direct-labor and variable-overhead costs would be reduced by 10% and direct-material costs would be reduced by 20%.
1. Should the Minnetonka Corporation make or buy the bindings? Show calculations to support your answer.
2. What would be the maximum purchase price acceptable to the Minnetonka Corporation for the bindings? Support your answer with an appropriate explanation.
3. Instead of sales of 10,000 pair of skis, revised estimates show sales volume at 12,500 pair. At this new volume, additional equipment, at an annual rental of $10,000 must be acquired to manufacture the bindings. This incremental cost would be the only additional fixed cost required even if sales increased to 30,000 pair. (This 30,000 level is the goal for the third year of production.) Under these circumstances, should the Minnetonka Corporation make or buy the bindings? Show calculations to support your answer.
4. What qualitative factors (i.e. issues with vendors, customers, or within the product itself) should the Minnetonka Corporation consider in determining whether they should make or buy the binding

Seen 2 years ago Wilson Anderson 0 answers

Tom and Judy Bell, who file jointly, collected $6,000 of Social Security benefits, $18,000 in fully taxable pension payments and $10,000 of tax-exempt interest. Howmuch of their Social Security is included in gross income? How would ths change if they had received $20,000 in tax-exempt interest?

Seen 1 years ago Garcia 2 answers

Garcia Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2008, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job No. 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.
During the month of January, Garcia Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month.
Purchased additional raw materials of $90,000 on account.
Incurred factory labor costs of $65,000. Of this amount $16,000 related to employer payroll taxes.
Incurred manufacturing overhead costs as follows: indirect materials $17,000; indirect labor $15,000; depreciation expense $19,000, and various other manufacturing overhead costs on account $20,000.
Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $10,000 $ 5,000
51 39,000 25,000
52 30,000 20,000

Seen 1 years ago Harry Callum 1 answers

If a business pays its expenses immediately can they still be accrual basis?

Seen 2 years ago Charlie Kyle 4 answers

What are some of the different types of budgets? Describe in detail one type of budget covered in the text. Describe what the budget is used for and what information it provides a business. As you respond to your classmates, discuss how the budget you described relates to the budgets they described. Discuss how a business benefits from each of the budgets.

Seen 1 years ago Sophia Jennifer 1 answers

Merchant Co. expects to sell 10,000 units at $120 each. Each unit is expected to require 2lbs. of material @ $10/lb. and 3 direct labor hours @ $5/DLH. The overheadrate is estimated to be $15/DLH. The beginning inventories are: DM 1,000 lbs. and Finished Goods 2,000 units. The budgeted ending inventories are: DM 2,000 lbs. andFinished Goods 1,000 units.
a. What is Merchant Co's budgeted sales (in $)?
b. What is Merchant Co's budgeted production (in units)?

c. Assuming a production of 9,500 units, what is the budgeted materials purchase (in lbs.&$)?

d. Based on your answer to (b), what is the budgeted cost per unit?

e. Based on your answer to (b), what is the budgeted cost of goods sold?

f. Based on your answer to (b), what is the budgeted cost for DL &FOH respectively?

Seen 1 years ago Amelia Margaret 0 answers

Cody Paulson and Hannah O'Brien formed a partnership, dividing income as follows:
Annual salary allowance to Paulson of $26,000.
Interest of 5% on each partner's capital balance on January 1.
Any remaining net income divided to Paulson and O'Brien, 2:1.
Paulson and O'Brien had $50,000 and $120,000, respectively, in their January 1 capital balances. Net income for the year was $33,000.
How much net income should be distributed to Paulson?

Seen 1 years ago Oliver Jake 0 answers

A company is considering purchasing factory equipment that costs $480,000 and is estimated to have no salvage value at the end of its 8-year useful life. If theequipment is purchased, annual revenues are expected to be $135,000 and annual operating expenses before depreciation expense are expected to be $57,000. Thestraight-line method of depreciation would be used.
The cash payback period on the equipment is

a 8.0 years
b 13.3 years
c 3.1 years
d 6.15 years

How did you get that?

Seen 2 years ago Emily Elizabeth 0 answers

I need to prepare a cash flow statement and determine total cash inflows and total cash outflows.Rent for the month $650
Monthly take home salary $1,950
Cash in checking account $450
Savings account balance $1,890
Spending for food $345
Balance of educational loans $2,160
Current value of automobile $7,800
Telephone bill paid for the month $65
Credit card balance $235
Loan payment $80
Auto insurance $230
Household posessions $3,400
Stereo equipment $2,350
Payment for electricity $90
Lunches/parking at work $ 180
Donations $70
Home computer $1,500
Value of stock investment $860
Clothing purchase $110
Restaraunt spending $130Here is what I have thus far
Income (cash inflows)
Salary $1,950
Stock investment $860
Cash Outflows
Fixed Expenses
Rent $650
Telephone $65
Loan payment $80
Auto insurance $230
Total fixed outflows $375
Variable Expenses
Lunches/parking at work $180
Restaurant spending $130
Clothing $110
Donations $70
Electricity $90
Food $345I need some help categorizing the remaining expenses. Thanks in advance for your help

Seen 1 years ago Martin Brown 1 answers

During the year, Hawkings produced 10,000 units, used 20,000 direct labor hours, and incurred variable overhead of $90,000. Budgeted variable overhead for the year was$88,000. The hours allowed per unit are 2.1. The standard variable overhead rate is $4.00 per direct labor hour. The variable overhead spending variance is

Seen 1 years ago Roy Taylor 0 answers

1. Direct materials requisitioned during the month:
Job 101 $22,000
Job 102 16,000
Job 103 24,000
$62,000

2. Direct labor incurred and charged to jobs during the month was:
Job 101 $30,000
Job 102 35,000
Job 103 20,000
$85,000

3. Manufacturing overhead was applied to jobs worked on using a
predetermined overhead rate based on 80% of direct labor costs.

4. Actual manufacturing overhead costs incurred during the month amounted
to $74,000.

5. Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were
completed during the month.

Instructions:
(a) Prepare journal entries to record the above transactions.
(b) Answer the following questions:

1. How much manufacturing overhead was applied to Job 103
during the month?

2. Compute the unit cost of Jobs 101 and 103.

3. What is the balance in Work In Process Inventory at the end of
the month?

4. Determine if manufacturing overhead was under- or overapplied
during the month. How much?

Seen 2 years ago Rodriguez 0 answers

As expected, since I am having difficulty with the first part of this question it is assumed I will have a problem with the next part.

2. The company's tour director has been criticized because only about 50% of the seats on Blueline's tours are being filled as compared to an industry average of 60%.The tour director has explained that Blueline's average seat occupancy could be improved considerably by eliminating about 10% of its tours, but that doing so wouldreduce profits. Explain how this could happen.

Seen 1 years ago Amelia Margaret 0 answers

The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours. At the beginning of the year the companyexpects fixed overhead costs to be $600,000 and variable costs to be $800,000. The expected machine hours are 6,000 and the expected direct labor hours are 80,000. Theactual fixed overhead costs are $700,000 and the actual variable overhead costs are $750,000. The actual machine hours during the year are 5,500 and the actual directlabor hours are 90,000.a. How much overhead is allocated?b. What is the over/underabsorbed overhead?

Seen 2 years ago Wilson Anderson 0 answers

Mark Mitton, the liaison to the IS department, has eliminated all but the best three systems. Mark developed a list of required features, carefully reviewed eachsystem, talked to other users, and interviewed appropriate systems representatives. Mark used a point-scoring system to assign weights to each requirement. Markdeveloped Table 21-4 to help him select the best system.

Required

a. Use a spreadsheet to develop a point-scoring matrix and determine which system Mark should select.
b. Susan Shelton did not agree with Mark’s weightings and suggested the following changes:
Flexibility
60

Reputation and reliability
50

Quality of support utilities
10

Graphics capability
10

Seen 1 years ago George Reece 0 answers

34.Anders, Inc., has 5,000 shares of 6%, $100 par value, preferredstock and 20,000 shares of $1 par value common stock outstanding atDecember 31,2009. The board of directors declares and pays a$50,000 dividend in 2009. What is the amount of dividends receivedby the Preferred andcommonstockholders in 2009? (PR11-1)A)Preferred Stockholders dividends ____________________B)Common Stockholders Dividends ___________________

Seen 1 years ago Martin Brown 0 answers

Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinicparticipants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometricpressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won’t damage them. Suzie decides to have MU watchesavailable for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2013. All watches aresold for $309 each.

Jul. 17 Purchased 57 watches for $8,037 ($141 per watch) on account.
Jul. 31 Sold 44 watches for $13,596 cash.
Aug. 12 Purchased 43 watches for $6,708 ($156 per watch) cash.
Aug. 22 Sold 22 watches for $6,798 on account.
Sep. 19 Paid for watches ordered on July 17.
Sep 27 Received full payment for watches sold on account on August 22.
Oct. 27 Purchased 81 watches for $13,770 ($170 per watch) cash.
Nov. 20 Sold 105 watches for $32,445 cash.
Dec. 4 Purchased 104 watches for $18,096 ($174 per watch) cash.
Dec. 8 Sold 32 watches for $9,888 on account.

Required:
a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2013, assuming Suzie uses FIFO to account for inventory. (Omit the "$" sign inyour response.)

Sales revenue $
Cost of goods sold $
Ending inventory $

b. Prepare the gross profit section of a partial income statement for transactions related to MU watches. (Amounts to be deducted should be indicated with minus sign.Omit the "$" sign in your response.)

GREAT ADVENTURES, INC.
Partial Income Statement
For the year ended December 31, 2013
$

$

2. Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watch, the MU II watches are equippedwith a global positioning system (GPS) and have the ability to download and play songs and videos off the internet. The demand for the original MU watches is greatlyreduced. As of December 31, the estimated market value of MU watches is only $111 per watch.

a. Record any necessary entry on December 31, 2013, related to this information. (Omit the "$" sign in your response.)

Date General Journal Debit Credit
Dec 31

b. For what amount would MU inventory be reported in the December 31, 2013, balance sheet? (Omit the "$" sign in your response.)

MU Inventory $

c. Prepare an updated gross profit section of a partial income statement accounting for this additional information. (Amounts to be deducted should be indicated withminus sign. Omit the "$" sign in your response.)

GREAT ADVENTURES, INC.
Partial Income Statement
For the year ended December 31, 2013
$

$

Seen 2 years ago Wilson Anderson 0 answers

1. Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following is not considered ahuman behavior problem?
a. Setting goals among managers that conflict with one another.
b. Setting goals too tightly making it difficult to meet performance expectation.
c. Allowing employees the opportunity to be a part of the budget process.
d. Allowing goals to be so low that employees develop a “spend it or lose it” attitude.

Seen 1 years ago Rodriguez 0 answers

Employee earnings records for Medenciy Company reveal the following gross earnings for four employees through the pay period of December 15.

C. Ogle $93,500 D. Delgado $96,100
L. Jeter $97,600 T. Spivey $104,000

For the pay period ending December 31, each employee's gross earnings is $4,000.The FICA tax rate is 8% on gross earnings of $100,000.

Instructions

Compute the FICA withholdings that should be made for each employee for the December 31 pay period. (If answer is zero, please enter 0. Do not leave any fieldsblank.)

C. Ogle $
D. Delgado $
L. Jeter $
T. Spivey $

Seen 1 years ago Nathaniel bag 0 answers

The following transactions occurred during 2011. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-linebasis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixedassets disposed of during the year.

Jan. 30 A building that cost $112,000 in 1994 is torn down to make room for a new building. The wrecking contractor was paid $5,100 and was permitted to keep allmaterials salvaged.
Mar. 10 Machinery that was purchased in 2004 for $16,000 is sold for $2,900 cash, f.o.b. purchaser's plant. Freight of $300 is paid on the sale of thismachinery.
Mar. 20 A gear breaks on a machine that cost $9,000 in 2006. The gear is replaced at a cost of $3,000. The replacement does not extend the useful life of themachine.
May 18 A special base installed for a machine in 2005 when the machine was purchased has to be replaced at a cost of $5,500 because of defective workmanship on theoriginal base. The cost of the machinery was $14,200 in 2005. The cost of the base was $4,000, and this amount was charged to the Machinery account in 2005.
June 23 One of the buildings is repainted at a cost of $6,900. It had not been painted since it was constructed in 2007.

Prepare general journal entries for the transactions. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Seen 2 years ago Isabella 0 answers

a.When the supplier is responsible for freight charges
b.At any time during transit
c.When the purchaser is responsible for paying freight charges
d.If the goods are shipped FOB destination
e.After the half-way point between the buyer and seller

Seen 1 years ago Harvey obrien 1 answers

On December 1, Discount Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $750. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $512. Another, with serial #1045, was purchased on November 1 for $477. The last player, serial #1056, was purchased on November 30 for $400.
Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Discount Electronic's year-end.
$

Seen 2 years ago Adams 0 answers

Robinson, Inc. had outstanding $5,067,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $7,132,000 of 10%, 15-year bonds(interest payable July 1 and January 1) at 94. A portion of the proceeds was used to call the 11% bonds at 102 on August 1. Unamortized bond discount and issue costapplicable to the 11% bonds were $120,000 and $30,000, respectively.
(a) Prepare the journal entries necessary to record issue of the new bonds.
(b) Prepare the journal entries necessary to record the refunding of the outstanding bonds.

Seen 1 years ago Amelia Margaret 0 answers

On January 1, 2011, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The total fair value of Starr Company wasassessed at $1,200,000. Harrison computed annual excess fair-value amortization of $8,000 based on the difference between Starr's total fair value and its underlyingnet asset fair value. The subsidiary reported earnings of $70,000 in 2011 and $90,000 in 2012 with dividend payments of $30,000 each year. Apart from its investment inStarr, Harrison had income of $220,000 in 2011 and $260,000 in 2012.
(a) What is the ending noncontrolling interest balance as of December 31, 2012?

Seen 2 years ago Lam Williams 0 answers

Which of the following is not a benefit of budgeting?

A) It reduces the need for tracking actual cost activity.
B) It sets benchmarks for evaluation performance.
C) It uncovers potential bottlenecks.
D) It formalizes a manager's planning efforts.

Seen 1 years ago Nathaniel bag 0 answers

Exercise 20-6
Absorption costing income statement

On May 31, the end of the first month of operations, Trendwest Office Equipment Company prepared the following income statement, based on the variable costingconcept:

sales (12000) units ................................ $648000

variable cost of good sold
variable cost of goods manufactured ........$311040
less inventory may 31 (2400) UNITS .................$ 51840
------------
variable cost of good sold $ 259200
________
manufacturing margin $ 388800
variable selling and administration expenses $ 168000
________
contribution margin...................................................... $220800

fixed costs :

fixed manufactured costs......................................$ 64800
fixed selling and administration expenses $ 51840 116640
___________ ------------
income from operation 104160 ......................

Prepare an income statement under absorption costing. Enter all amounts as positive numbers.
TRENDWEST OFFICE EQUIPMENT COMPANY
Absorption Costing Income Statement
For the Month Ended May 31, 2010
Sales _____________
Cost of goods sold: _________________
Less inventory, May 31 ____________
Cost of goods sold ___________
Gross profit ____________
Selling and administrative expenses ___________________
Income from operations _________________________

Seen 1 years ago Olivia Samantha 2 answers

Hudson Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hoursin Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows:
Factory 1 Factory 2
Estimated factory overhead cost for fiscal
year beginning June 1 $835,240 $614,800
Estimated direct labor hours for year 10,600
Estimated machine hours for year 21,980
Actual factory overhead costs for June $66,600 $52,900
Actual direct labor hours for June 950
Actual machine hours for June 1,710

a. Determine the factory overhead rate for Factory 1.
$ per machine hour

b. Determine the factory overhead rate for Factory 2.
$ per direct labor hour

Seen 2 years ago Emily Elizabeth 3 answers

Macleod Company's product has a contribution margin per unit of $62.50 and a contribution margin ratio of 25%. What is the per unit selling price of the product?

Seen 1 years ago George Reece 0 answers

Retirement Planning Info:
An individual is currently 30 years old and she is planning her financial needs upon retirement. She will retire at age 65 (exactly 35 years from now) and she plans onfunding 20 years of retirement with her investments. Ignore any social security payments and ignore any taxes. She made $81,000 last year and she estimates she willneed 75% of her current income in today's dollars to live on when she retires. She believes that inflation will average 2 percent per year during her working years.(For simplicity we will ignore inflation during her retirement years). She will retire at age 65 and will begin drawing down her retirement annuity at age 65. Sheplans on making a total of 20 annual withdrawals after she retires. After she retires she believes she will be able to earn 6 percent per year. If she puts her moneyin a blended stock and bond portfolio now, she figures she can earn 9.5 percent per year until she retires.

Income during retirement
1) How much money will she need to withdraw each year starting at age 65 to have the same purchasing power as today?

Amount Needed at Retirement
2) How much money must she have at age 65 in order to make her planned withdrawals?

3) How much should she save per year starting right now in order to have the retirement annuity she desires?

Seen 1 years ago Margaret 0 answers

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 expensesof $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 operating income for the month of August, 2012 is

Seen 1 years ago Harvey obrien 0 answers

Aug. 1 Purchased merchandise from Abilene Company for $6,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1.
4 At Abilene's request, Stone paid $100 cash for freight charges on the August 1 purchase, reducing the amount owed to Abilene.

5 Sold merchandise to Lux Corp. for $4,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,000.

8 Purchased merchandise from Welch Corporation for $5,300 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice showed that atStone’s request, Welch paid the $240 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.)

9 Paid $120 cash for shipping charges related to the August 5 sale to Lux Corp.

10 Lux returned merchandise from the August 5 sale that had cost Stone $500 and been sold for $700. The merchandise was restored to inventory.

12 After negotiations with Welch Corporation concerning problems with the merchandise purchased on August 8, Stone received a credit memorandum from Welch granting aprice reduction of $800.

15 Received balance due from Lux Corp. for the August 5 sale less the return on August 10.

18 Paid the amount due to Welch Corporation for the August 8 purchase less the price reduction granted.

19 Sold merchandise to Trax Co. for $3,600 under credit terms of 1/10, n/30, FOB shipping point, invoice dated August 19. The merchandise had cost $2,500.

22 Trax requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Stone sent Trax a $600 credit memorandum to resolve theissue.

29 Received Trax's cash payment for the amount due from the August 19 sale.

30 Paid Abilene Company the amount due from the August 1 purchase.

Prepare journal entries to record the above merchandising transactions of Stone Company, which applies the perpetual inventory system. (Identify each receivable andpayable; for example, record the purchase on August 1 in Accounts Payable—Abilene.)

Seen 2 years ago William Damian 1 answers

Laramie Distribution markets CDs of numerous performing artists. At the beginning of March, Laramie had in beginning inventory 3,680 CDs with a unit cost of $10.During March Laramie made the following purchases of CDs.

March 5 2,944 @ $12 March 21 5,888 @ $15
March 13 8,096 @ $13 March 26 2,944 @ $16

During March 19,136 units were sold. Laramie uses a periodic inventory system.

(a) Determine the cost of goods available for sale.Laramie Distribution markets CDs of numerous performing artists. At the beginning of March, Laramie had in beginninginventory 3,680 CDs with a unit cost of $10. During March Laramie made the following purchases of CDs.

March 5 2,944 @ $12 March 21 5,888 @ $15
March 13 8,096 @ $13 March 26 2,944 @ $16

During March 19,136 units were sold. Laramie uses a periodic inventory system.

(a) Determine the cost of goods available for sale.Laramie Distribution markets CDs of numerous performing artists. At the beginning of March, Laramie had in beginninginventory 3,680 CDs with a unit cost of $10. During March Laramie made the following purchases of CDs.

March 5 2,944 @ $12 March 21 5,888 @ $15
March 13 8,096 @ $13 March 26 2,944 @ $16

During March 19,136 units were sold. Laramie uses a periodic inventory system.

(a) Determine the cost of goods available for sale.

Seen 2 years ago Adams 0 answers

Patton issues $650,000 of 5%, four-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. They are issued at $584,361 and theirmarket rate is 8% at the issue date.

1) Prepare the journal entries to record the first two interest payments

Seen 1 years ago William Damian 1 answers

Tommie has made an investment that will generate returns that are subject to the state of the economy during the year. Use the following information to calculate thestandard deviation of the return distribution for Tommie's investment.

State Return Probability

Weak 0.13 0.3
OK 0.2 0.4
Great 0.25 0.3

Seen 2 years ago Thomas Joe 0 answers

The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event:

Dinner (per person) $9
Favors and program (per person) $4
Band $1,628
Rental of ballroom $764
Professional entertainment during intermission $5,184
Tickets and advertising $1,064

--------------------------------------------------------------------------------

The committee members would like to charge $37 per person for the evening's activities.
Requirement 1:
Compute the break-even point for the dinner-dance (in terms of the number of persons who must attend).

Break-even point ? persons

Requirement 2:
Assume that last year only 210 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even?(Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Ticket price per person $ ?

Requirement 3:
O: Prepare a CVP graph for the dinner-dance from zero tickets up to 540 tickets sold.

Seen 2 years ago Ava Linda 0 answers

The Bags and Luggage Company had the following account balances as of January 1:
Direct Materials Inventory$9,200Work in Process Inventory78,400Finished Goods Inventory53,600Manufacturing Overhead-0-
During the month of January, all of the following occurred:
1.
Direct labor costs were $42,000 for 1,800 hours worked.2.Direct materials costing $35,750 and indirect materials costing $3,500 were purchased.3.Sales commissions of $16,500 were earned by the sales force.4.$26,000 worth of direct materials were used in production.5.Advertising costs of $6,300 were incurred.6.Factory supervisors earned salaries of $12,000.7.Indirect labor costs for the month were $3,000.8.Monthly depreciation on factory equipment was $4,500.9.Utilities expense of $7,800 was incurred in the factory.10.Luggage with manufacturing costs of $70,100 were transferred to finished goods.11.Monthly insurance costs for the factory were $4,200.12.$5,000 in property taxes on the factory were incurred and paid.13.Luggage with manufacturing costs of $89,000 were sold for $145,000.
a.Assume If Bags and Luggage assigns manufacturing overhead of $34,400, what will be the balances in the Direct Materials, Work in Process, andFinished Goods Inventory accounts at the end of January? (Input all amounts as positive values. Omit the "$" sign in yourresponse.)
Direct materials inventory$ Work in process inventory$ Finished goods inventory$
b.As of January 31, what will be the balance in the Manufacturing Overhead account? (Input allamounts as positive values.Omit the "$" sign in your response.)
Manufacturing overhead$
c.What was Bags and Luggage's operating income for January? (Input all amounts as positivevalues. Omit the "$" sign in your response.)
Operating income$

Seen 1 years ago Margaret 1 answers

Micro Inc. has provided the following data from its activity-based costing system:
Activity Cost Pools Total Cost Total Activity
Designing products $387,539 6,512 product design hours
Setting up batches $45,389 786 batch set-ups
Assembling products $27,345 4,081 assembly hours

The activity rate for the “designing products” activity cost pool is:
a.) $387,539 per design hour
b.) $40.45 per design hour
c.) $70.68 per design hour
d.) $59.51 per design hour

Seen 2 years ago Nathaniel bag 0 answers

Identify which basic assumption of accounting is best described in each/some item(s) presented below:

a) The economic activities of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports.
b) Solectron Corporation, Inc. does not adjust amounts in its financial statements for the effect of inflation.
c) Walgreen Co. reports current and non-current classifications in its balance sheet.
d) The economic activities of General Electric and its subsidiaries are merged for accounting and reporting purposes.

Seen 1 years ago Lee White 0 answers

(One Difference, Multiple Rates, Effect of Beginning Balance versus No Beginning Deferred Taxes)
At the end of 2008, Lucretia McEvil Company has $180,000 of cumulative temporary differences that will result in reporting future taxable amounts as follows.
2009 $60,000
2010 50,000
2011 40,000
2012 30,000
$180,000
Tax rates enacted as of the beginning of 2007 are:
2007 and 2008 40%
2009 and 2010 30%
2011 and later 25%
McEvil's taxable income for 2008 is $320,000. Taxable income is expected in all future years.
Instructions
(a) Prepare the journal entry for McEvil to record income taxes payable, deferred income taxes, and income tax expense for 2008, assuming that there were no deferredtaxes at the end of 2007.
(b) Prepare the journal entry for McEvil to record income taxes payable, deferred income taxes, and income tax expense for 2008, assuming that there was a balance of$22,000 in a Deferred Tax Liability account at end of 2007

Seen 1 years ago Gelbero Wilson 0 answers

On January 2, 2014, Mahoney Sales issued $10,000 in bonds for $9,400. They were 5-year bonds with a stated rate of 4%, and pay semiannual interest payments. MahoneySales uses the straight-line method to amortize the bond discount. After the second interest payment on December 31, 2014, what was the bond carrying amount?

Seen 1 years ago Adams 1 answers

Seen 1 years ago Williams O'Sullivan 0 answers

(Cost of quality) Bronson’s Bronze Works has gathered the following data on its quality costs for 1999 and 2000:
Defect Prevention Costs 1999 2000
Quality training $8,000 $9,500
Quality technology 6,000 8,000
Quality production design 4,000 9,000
External Failure Costs
Warranty handling $15,000 $10,000
Customer reimbursements 11,000 7,200
Customer returns handling 7,000 4,000
a. Compute the percentage change in the two quality cost categories from 1999 to 2000.
b. Write a brief explanation for the pattern of change in the two categories.

Seen 1 years ago Smith Jones 0 answers

Garland Mills purchased a certain piece of machinery 2 years ago for $500,000. Its present resale value is $380,000. Assuming that the machine's resale value decreasesexponentially, what will it be 3 years from now? (Round your answer to the nearest dollar.)

Seen 2 years ago Harry Callum 0 answers

Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginnint inventory is 98,000 units, and desiredending inventory is 80,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below:

Material A .50 lb per unit @ $.60 per pound
Material B 1.00 lb per unit @ $1.70 per pound
Material C 1.20 lb per unit @ $1.00 per pound

The dollar amount of direct material B used in production during the year is? The dollar amount of direct material C used in production during the year is?

Seen 1 years ago Williams O'Sullivan 0 answers

On December 31, 2008, WER Productions reported $100,000 of contributed capital and $20,000 of retained earnings. During 2009, the company had the followingtransaction. Prepare a Statement of stockholders’ equity for the year ended December 31, 2009.
1. Issued stock for $50,000.
2. Declared and paid a cash dividend of $5,000.
3. Reported total revenue of $120,000 and total expense of $87,000.

Seen 2 years ago George Reece 0 answers

A business entity that uses process costing has the following data in respect of "Process Three", the final process in the manufacture of its single product, for themonth of October 2010:

Units Costs $

Opening Work-in-process 700 21,630

Transferred from Process Two 10,000 153,500

Labor Costs incurred 110,880

Production overhead applied 91,800

Actual loss in process 800

Transferred to "Finished Goods Inventory" 8,900 ?

Defective units are only discovered after being fully processed and can be sold as scrap for $3 per unit. There is a normal process loss of 5% of the units transferredfrom "Process Two".

Incomplete units were at the following stage of completion:

Opening WIP Closing WIP
% %

Transfer from Process Two 100 100

Labor 80 60

Production Overhead 60 40

Required, in respect of "Process Three" for October 2010: (Use FIFO Method)

a. A schedule showing the equivalent units produced, the costs incurred and the cost per equivalent unit.

b. The Account for Process Three.

c. The Abnormal Loss Account.

Seen 1 years ago Isabella 1 answers

Via Company issued bonds with a $500,000 face value and a 6% stated rate of interest on January 1, 2010. The bonds carried a 5-year term and sold for 95. Via uses thestraight-line method of amortization. Interest is payable on December 31 of each year.

The carrying value of the bond liability on the December 31, 2013 balance sheet was:

A- $490,000.
B- $485,000.
C- $495,000.
D- $482,000.

Seen 1 years ago Lee White 0 answers

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An article in Air and Waste (“Update on Ozone Trends in......

Write a paragraph that summarizes the excerpt you read from King Leopold’s Ghost. Be sure to tell why the Belgian king colonized the Congo.

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