Accounting-

Linda joined ABC Corporation upon graduating college and worked

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Accounting

An owner of an automobile body shop comes into your office for tax advice. He has been thinking about updating his antiquated computer system so he purchased a consumer handbook then he flew to San Francisco to visit the Apple Store to shop for computers for his personal and business use. He wants to deduct the trip, his food, the book, and the computer he purchased in San Francisco. How would you advise him regarding the deductions and expenses he may be able to claim? Make a recommendation regarding how these expenses should be treated to maximize his deductions. Be specific with your recommendation.

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Accounting

1. Explain how accountants determine solutions to various accounting business demands. 2. What basic accounting concepts should you use to ensure accurate and reliable financial statements?3. In your opinion, which basic accounting concept is the most important and why?

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Accounting

A.The following information is given for Tripp Company, which uses the indirect method.Net income$20,000Depreciation expense$3,000Increase in accounts receivable$2,000Payment of dividends$2,000Proceeds from sale of equipment$6,000Increase in accounts payable$4,000Decrease in inventory$3,000From the information provided, answer the following questions: 1.The cash flow from operating activities is ________.2.The cash flow from investing activities is ________.3.The cash flow from financing activities is ________.4.B.Selected data for Stick’s Design are given as of December 31, Year 1 and Year 2 (rounded to the nearest hundredth).Year2Year 1Net Credit Sales$25,000$30,000Cost of Goods Sold16,00018,000Net Income2,0002,800Cash5,000900Accounts Receivable3,0002,000Inventory2,0003,600Current Liabilities6,0005,000Compute the following: 1.Current ratio for Year 22.Acid-test ratio for Year 23.Accounts receivable turnover for Year 24.Average collection period for Year 25.Inventory turnover for Year 2C.Prepare an income statement showing departmental contribution margin based on the following: Dept. XDept. YRent ExpenseSpace (square feet)17,50035,000Net Sales60,00040,000Cost of Goods Sold18,00016,000Rent Expense (allocated based on square feet) 2,700D.From the following transactions, prepare the appropriate general journal entriesfor the month of April.1.Raw materials costing $60,000 were issued from the storeroom.2.Direct labor of $53,000 was charged to production.3.Indirect labor costs of $17,000 were incurred.4.Overhead was applied at the rate of 40% of direct labor dollars.5.Completed products costing $42,000were transferred to finished goods.6.Products costing $32,000 were sold.

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Accounting

1. Explain how accountants determine solutions to various accounting business demands. 2. What basic accounting concepts should you use to ensure accurate and reliable financial statements?3. In your opinion, which basic accounting concept is the most important and why?

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Accounting

After Picard Company had completed all posting for the month of December, the sum of the balances in the following accounts payable subsidiary ledger did not agree with the balance of the control account in the general ledger.Name Ryker’sAddress 286 Buck Avenue———————————————————————————————————————————Date Item Post. Ref. Debit Credit Balance———————————————————————————————————————————Dec. 2 P25 2,400 2,400Name Geordie CompanyAddress 818 Western Avenue———————————————————————————————————————————Date Item Post. Ref. Debit Credit Balance———————————————————————————————————————————Dec. 1 Balance 7,600 10 CP23 7,600 —20 P32 3,300 3,300 29 J15 800 4,100Name Laforge CompanyAddress 90210 Baker Boulevard———————————————————————————————————————————Date Item Post. Ref. Debit Credit Balance———————————————————————————————————————————Dec. 1 Balance 9,900 18 CP28 9,900 —29 P34 10,500 600Name Deanna TroiAddress 2720 Sommers Avenue———————————————————————————————————————————Date Item Post. Ref. Debit Credit Balance———————————————————————————————————————————Dec. 8 P27 6,000 6,000 27 P33 8,000 14,000Name OBrien SuppliesAddress 1560 Puckett Street———————————————————————————————————————————Date Item Post. Ref. Debit Credit Balance———————————————————————————————————————————Dec. 1 Balance 8,200 7 P26 5,600 13,800 12 J11 620 12,180 20 CP29 6,000 18,180The balance in the Accounts Payable control account of $36,580 has been verified as correct. Also assume that the journals references in the Post Ref. columns of the accounts payable subsidiary ledger have been verified as correct.InstructionsDetermine the errors in the preceding accounts payable subsidiary accounts and prepare a corrected schedule of accounts payable.

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: Accounting

On the first day of its fiscal year, Ramsey Company issued $35,000,000 of 10-year, 9% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Ramsey Company receiving cash of $30, 817,399. The company uses the interest method.a. Journalize the entries to record the following: 1. Sale of the bonds.2. Prepare an amortization table through December 31, 2014(4 interest periods for this bond issue3. First semiannual interest payment, including amortization of discount. Round to the nearest dollar.4. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar.5. compute the amount of the bond interest expense for the first year.(B) Yates Corporation has the following stockholders’ equity accounts on Jan 1, 2012: Common Stock, $10 par value: $1,500,000Paid-in Capital in Excess of Par: 200,000Retained Earnings: 500,000Total Stockholders’ Equity: $2,200,000The company uses the cost method to account for treasury stock transactions. During 2012, the following treasury stock transactions occurred: April 1 Purchased 10,000 shares at $18 per share.August 1 Sold 4,000 shares at $22 per share.October 1 Sold 4,000 shares at $15 per shareInstructions: (A) Journalize the treasury stock transactions for 2012.(B) Prepare the Stockholders’ Equity section of the balance sheet for Yates Corporation at December 31, 2012. Assume net income was $110,000 for 2012.C. KT Corporation wholesales auto parts to auto manufacturers. On march 1, 2012, Kt corporation issued $17,500,000 of five year, 12% bonds at market (effective) interest rate of 10%, receiving cash of $18,851,252. interest is payable semiannually. KT corporation’s fiscal years begins on March 1. The company uses the interest method.a.Journalize the entries to record the following: 1. sale of the bonds.2.prepare an amortization table through 3 interest periods for this bond issue.3. First semiannual interest payment, including amortization of discount. Round to nearest dollar.4.Second semiannual interest payment, including amortization of discount. Round to nearest dollar.5.Compute the amount of the bond interest expense for the first year.

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Accounting

Discusion board due by the 5/26/15Primary Discussion Response is due by Wednesday (11: 59: 59pm Central), Peer Responses are due by Sunday (11: 59: 59pm Central).Primary Task Response: Within the Discussion Board area, write 600–800 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.As you close your weekly meeting with Deborah, she says, “There are some very good ideas here. I would like to see you continue with a global marketing plan. We need more concrete analysis and data for the presentation. Get your team to work.”After your meeting with Deborah, you briefly meet with your team to discuss moving toward a more formal analysis.“Tiffany and Mike, we need to provide a more detailed analysis,” you explain. “You’ve done a great job so far looking at what resources we need and potential countries, but we need to really dig deeper on this.”Tiffany nods her head in agreement. “Definitely,” she says. “We need to look at some internal variables as well as political, environmental, sociocultural, and technological environments of the countries that we are considering.”Mike interjects, “Well, that’s something we should consider, but it’s not the only way to analyze this type of project. This is such a big decision, and we need to give as much information as we can.”You reply, “Great point, Mike. We should look at this from a couple of different angles.”You go back to your office to update the project schedule with Deborah’s instructions. You review the activities and note the project remains on schedule.The next task in your strategic marketing plan is to determine the tools that are needed to conduct an analysis of the industry and competitors. Complete the following: •What are the best tools to use in this situation? ?Provide a brief summary of at least 2 of these tools.•Why do you think these are the best ways to analyze the market?•How will you use these tools in your plan?The materials found in the M.U.S.E. may help you with this assignment, such as the audio file Implementing a Global Strategy. This file provides real-world experience that may help you with this assignment.Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:

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Accounting

Inoca private limited produces two products ranges: the standard range and special range. During the July, 300 standard windows and 50 specialized windows were manufactured and indirect production costs of $73000 were incurred. An analysis of indirect costs reveals the following activities.Activity Cost Driver Total CostMaterial Handling Number of requisitions $25000Machine Setups Number of set ups $27000Quality inspections Number of inspections $21000The cost driver volume for each product was as follows.Cost driver Specialized Standard TotalNumber of requisitions 400 600 1000Number of setups 150 300 450Number of inspections 200 400 600a. Indirect activity cost rate for each activity.b. Allocate the indirect manufacturing overhead costs for July to the products using activity cost rates calculated in (a) abovec. Write a memo to the managing director of Inoca private limited explaining the benefits of activity based costingd. Volume-based cost drivers are no longer appropriate in today’s business environment”. Discuss.TASK 2: Managerial PlanningLeeway Maldives (Pvt) Ltd has the capacity to manufacture 50,000 units annually of its only product. The following information is available.Selling price$26 per unitVariable manufacturing costs$12 per unitFixed manufacturing costs$180,000 annuallyFixed selling and administrative costs$120,000 annuallyVariable selling and administrative costs$ 4 per unita. Calculate the number of units that need to be sold annually to break even. 3b. How many units would need to be sold to earn a target annual profit of $120,000?c. In an attempt to achieve better results in the marketplace, management has been looking at changing the reward systems for making, distribution and sales personnel. This would result in an increase in variable selling and administrative costs by $2 per unit, and would reduce fixed selling and administrative costs by $50000.(i) Calculate the number of units required to break even if management implemented the changes(ii) Would you suggest management pursues the changes? Explain.TASK 3: Short-term Decision MakingXYZ Company produces plunge pools. Currently, the company uses internally manufactured pumps to power water jets. XYZ Company has found that 40 per cent of the pumps have failed within their 12-month warranty period, causing huge warranty costs. Because of the company’s inability to manufacture high-quality pumps, management is considering buying pumps from a reputable supplier who will also bear any related warranty costs. XYZ company’s unit cost of manufacturing pumps is $83.75 per unit, including $17.25 of allocated fixed overhead (primarily depreciation of equipment). Also, the company has spent an average of $22 (labor and parts) repairing each pump returned. XYZ Company can purchase each pump for $92.50. During 2013, XYZ Company plans to sell 12,800 plunge pools (each pool requires one pump).XYZ company’s unit cost of manufacturing pumps is $83.75 per unit, including $17.25 of allocated fixed overhead (primarily depreciation of equipment). Also, the company has spent an average of $22 (labor and parts) repairing each pump returned. XYZ Company can purchase each pump for $92.50. During 2013, XYZ Company plans to sell 12,800 plunge pools (each pool requires one pump).Requireda. Determine whether XYZ Company should make or buy the pumps, and the amount of cost savings arising from the best alternative. [8 marks]b. What qualitative factors should be considered in the outsourcing decision? [7 marks]e. “Fixed costs are always irrelevant in decision making.” Discuss. [5 marks]TASK 4: Budgetary Control SystemsMadihaa Company Pte Ltd intends to start business on the first of January. Production plans for the first four months are as follows: January20,000 unitsFebruary50,000 unitsMarch70,000 unitsApril70,000 unitsEach unit requires 2 kilograms of material. The company would like to end each month with enough raw material inventories on hand to cover 25 per cent of the following month’s production needs. The material costs $7 per kilogram. Management anticipates being able to pay for 40 per cent of its purchases in the month of purchase. They will receive a 10 per cent discount for these early payments. They anticipate having to defer payment to the next month on 60 per cent of their purchases. No discount will be taken on these late payments. The business starts with no inventories on 1 January.Requireda.Determine the budgeted payments for purchases of materials for each of the first three months of operations. [8 marks]b.Madihaa Company Pte Ltd is preparing a master budget for the coming year. At present senior management are reviewing the inventory policies. Which budgets, would policies concerning the level of inventories be affected and why?c. Discuss the potential issues arising for an entity if it takes a budgetary approach in which budgetary data are imposed on business unit managers by the CEO. Contrast this with an approach whereby the budgetary data is developed in a more participatory environment.TASK 5: Decentralization and Performance EvaluationZam Gems Maldives (Pvt) Ltd manufactures jewelry for three different markets. The business has grown from a backyard hobby for the owners to quite a large manufacturing concern. The company is structured into three distinct divisions aligned with each market, as shown.Children’s jewellery Adult jewellery Crystals & homewaresSales $4,720,000 $2,480,000 $6,300,000Variable costs 33% 38% 50%Fixed costs $1,960,000 $1,800,000 $1,700,000Divisional assets $5,000,000 $4,000,000 $12,000,000Common costs for the year totaled $500,000 and were allocated based on sales.The management of Zam Gems Maldives (Pvt) Ltd has come across a further investment opportunity. It does not want to develop a separate division, so one of the existing divisions would need to take responsibility for the new investment opportunity. Management estimates that the new investment opportunity would require an investment of $2500000 to deliver sales of $2000000 with variable costs estimated at $625000 and fixed costs at $1000000.Requireda. At present, divisional performance is evaluated based on ROI. If this is the case, which division would want to take over the new investment opportunity? [5 marks]b. If the company changed its performance evaluation criteria to encompass residual income based on a charge for capital of 14 per cent, which division would want to take over the new investment opportunity? [5 marks]c. Why is there a need to measure organizational performance? [5 marks]d. Discuss the appropriateness of the use of ROI, RI, and EVA as performance measures. [5 marks]

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Accounting

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. DateActivitiesUnits Acquired at CostUnits Sold at RetailMar. 1Beginning inventory100units@ $51. 00/unitMar. 5Purchase225units@ $56. 00/unitMar. 9Sales260units@ $86. 00/unitMar. 18Purchase85units@ $61. 00/unitMar. 25Purchase150units@ $63. 00/unitMar. 29Sales130units@ $96. 00/unitTotals560units390unitsRequired: 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d)specific identification. For specific identification, the March 9 sale consisted of 65 units from beginning inventory and 195 units from the March 5 purchase, the March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase. (Round your average cost per unit to 2 decimal places. )4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 65 units from beginning inventory and 195 units from the March 5 purchase, the March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase. (Round average cost per unit to 2 decimal places. )

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Accounting

he Hasting Company began operations on January 1, 2013 and uses the FIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO (instead of FIFO) from the beginning, 1/1/2013. He has the following information available to him: What would net income have been in 2014 if Hastings had used LIFO since 1/1/2013?.hbsp.harvard.edu/eproduct/product/financialaccounting/content/item/6196/advexam_1a.png”>$ 110,000$ 150,000$ 170,000$ 230,000

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Accounting

Question 1Every asset in the Property, Plant & Equipment category must be depreciated over its useful life. Answera. Trueb. False1 pointsQuestion 2The depreciable cost of an asset is the asset’s cost minus its residual value. Answera. Trueb. False1 pointsQuestion 3The primary purpose of depreciating a plant asset is to match the cost of the asset to the period of benefit. Answera. Trueb. False1 pointsQuestion 4The primary cause for depreciation of assets in using the straight-line basis is time or age. Answera. Trueb. False1 pointsQuestion 5The impact on the financial statements of a business from amortizing intangible assets is the same as that of depreciating plant assets. Answera. Trueb. False1 pointsQuestion 6Goodwill must be amortized over its useful life not to exceed 40 years. Answera. Trueb. False1 pointsQuestion 7The par value of common stock is the value it must be sold at by the company. Answera. Trueb. False1 pointsQuestion 8There is a minimum amount of stockholder equity that a corporation must have that is referred to as legal capital. Answera. Trueb. False1 pointsQuestion 9If the corporation has only one class of stock it cannot be common stock. Answera. Trueb. False1 pointsQuestion 10Holders of cumulative preferred stock are not guaranteed that they will be paid a dividend every year. Answera. Trueb. False1 pointsQuestion 11Retained Earnings can never be a negative value. Answera. Trueb. False1 pointsQuestion 12If a company that has issued 7%, $100 par value, preferred stock, declares a dividend, then it must pay the preferred shareholders 7% of the total amount of dividends declared. Answera. Trueb. False1 pointsQuestion 13Treasury stock purchased by the company will reduce the companies outstanding shares. Answera. Trueb. False1 pointsQuestion 14If the company resells treasury stock for more than it cost to purchase the gain should be recorded as other revenue on the income statement. Answera. Trueb. False1 pointsQuestion 15If the company is liquidated, the preferred shareholders must receive their investment back before common shareholders. Answera. Trueb. False1 pointsQuestion 16Cash dividends declared by a corporation must be recorded as a liability to the shareholders until paid. Answera. Trueb. False1 pointsQuestion 17If the corporation declares a stock dividend, when the shares are issued, the shareholders receiving the additional shares owns more of the corporationAnswera. Trueb. False1 pointsQuestion 18If the corporation issues a 3 for 1 stock split there will be 3 times as many outstanding shares afterwards. Answera. Trueb. False1 pointsQuestion 19Match the depreciation method to the descriptionAnswer- A. B. C. D. E. F. G. H. I. J. assumes depreciation based upon wear and tear from usageRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. will cause an leveling of expenses over the life of an asset where it is assumed that repair cost will increase significantly as an asset gets olderRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. assumes depreciation is based upon time passingRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is similar to the method used for depletion of natural resourcesRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. will allocate cost better than the other methods where obsolescence can be a problem for the asset. Read Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is generally used to take advantage of tax benefits pertaining to depreciationRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is similar to the method generally used to amortize intangible assetsRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is the method that is easiest to allocate cost correctly where the value the asset provides will be consistent from period to period over the asset lifeRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is the method that will best allocate the asset cost when the value the asset will provide fluctuates from period to period. Read Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is the method which initially ignores the salvage value the asset may haveRead Answer Items for Question 19AnswerA. Straight-lineB. Double declining balanceC. Double declining balanceD. Units-of-productionE. Units-of-productionF. Double declining balanceG. Straight-lineH. Units-of-productionI. Double declining balanceJ. Straight-line10 pointsQuestion 20The book value of an asset is based on?Answera. cost – residual valueb. resale value – costc. cost – accumulated depreciationd. resale value – accumulated depreciation1 pointsQuestion 21A fully depreciated assetAnswera. must be removed from the booksb. should continue to be depreciated until it is disposed of. c. remains on the books but is no longer depreciated. d. remains on the books and is recorded as a gain on the income statement. 1 pointsQuestion 22The accumulated depreciation account is: Answera. an asset account because it reflects the asset value accumulated for replacement. b. an equity account because it reflects the portion of the asset(s) that the owner(s) of the business can claim. c. a liability account since it shows the obligation the company has to replace the assets. d. an expense account since it shows the asset value used upe. none of the above1 pointsQuestion 23A capital expenditure would appear on theAnswera. income statement under operating expensesb. balance sheet under plant assetsc. balance sheet under current assetsd. income statement under other expenses1 pointsQuestion 24The par value of stock isAnswera. the same as its market valueb. always greater than its market valuec. required for every stock issuedd. the value assigned by the corporation which defines legal capitale. the highest value the stock can have1 pointsQuestion 25If a corporation issues no-par stock instead of par value stockAnswera. total stockholder will be greater. b. total contributed capital will be greater but not the total stockholder equity. c. total legal capital will be greater. d. total legal capital will be lower. e. total stockholder equity will be lower. 1 pointsQuestion 26An increase in retained earnings during the period can be the result ofAnswera. net incomeb. cash dividendsc. sales of common stockd. stock splitse. treasury stock purchases1 pointsQuestion 27If a corporation issued 100,000 shares of $1 par value in exchange for land with a current value of $800,000, the journal entry for the transaction would include which of the followingAnswera. credit to land for $800,000b. debit to common stock for $100,000c. credit to common stock for $800,000d. credit to additional paid in capital for $700,000e. debit to land for $100,0001 pointsQuestion 28A cash dividend would have which of the following effects on the corporation declaring it?Answera. Total stockholder equity decreases. b. Total stockholder equity increases. c. Paid-in-capital increases, but total stockholder equity remains the same. d. Paid-in-capital decreases, but total stockholder equity remains the same. e. Stockholder equity remains the same. 1 pointsQuestion 29Heston Inc. has 1,000,000 share of $1 par value common stock and 20,000 share of $100 par value 7% preferred stock. If Heston board of directors releases $1,000,000 for dividends to the shareholders, how much will each common share receive?Answera. $. 86b. $. 93c. $7d. $1e. $8. 601 pointsQuestion 30A stock split would have which of the following effects on the corporation issuing it?Answera. Total stockholder equity decreases. b. Total stockholder equity increases. c. Paid-in-capital increases, but total stockholder equity remains the same. d. Paid-in-capital decreases, but total stockholder equity remains the same. e. Stockholder equity remains unchanged. 1 pointsQuestion 31ABC Corporation issued a 5% stock dividend that involved issuing 10,000 shares of $1 par value common stock when the market value of the stock was $25 per share. The journal entry for the transaction would includeAnswera. debiting cash for $10,000b. crediting retained earnings for $10,000c. debiting retained earnings for $250,000d. crediting retained earnings for $250,000e. crediting common stock for $250,0001 pointsQuestion 32Retained earnings can best be described asAnswera. cash receipts minus expenses after adjustmentsb. net income minus expenses after adjustmentsc. net income plus dividendsd. undistributed profitse. net income minus cash disbursements1 pointsQuestion 33A feature common to both stock dividends and stock splits is: Answera. a reduction in total stockholders’ equity. b. a reduction in the book value per share amount. c. a reduction in retained earnings . d. inclusion as financing activities on the cash flow statement. e. they are both distributions from treasury stock held. 1 pointsQuestion 34The declaration of a small stock dividendAnswera. increases the ownership of each shareholder. b. will cause a decrease in retained earnings equal to the par value of the shares issued. c. is a warning that the corporation has cash flow problems. d. is accounted for in the same manner as a stock split. e. will cause a decrease in retained earnings equal to the fair market value of the shares issued. 1 pointsQuestion 35The stock dividends declared account is a(n)Answera. assetb. liabilityc. stockholder equityd. revenuee. expense1 pointsQuestion 36A corporation may purchase treasury stock for all of the following reasonsexcept: Answera. to support the market price of the stockb. to issue to employees in stock option plansc. to prevent a hostile takeover. d. to generate more capital from the same stock. e. no exception, for all of the reasons stated. 1 pointsQuestion 37If the corporation repurchases treasury stockAnswera. total assets of the corporation increaseb. paid-in-capital increases but total stockholder equity remains the samec. total stockholder equity decreasesd. paid-in-capital decreases but total stockholder equity remains the samee. total liabilities of the corporation decrease1 pointsQuestion 38Additional paid-in-capital from treasury stock is recorded: Answera. when treasury stock is purchased for less than the amount of its original issue. b. when treasury stock is reissued for more than the amount at which it was purchased. c. when treasury stock is reissued for an amount greater that the amount at which it was originally issued. d. only when the treasury stock is issued to employees. 1 pointsQuestion 39Treasury stock which is repurchased by the corporation for $100 per share is later reissued for $105 per share. The effect of the reissuance willAnswera. decrease the paid-in-capital portion of stockholderb. decrease retained earningsc. increase a revenue account from the saled. increase retained earningse. increase the paid-in-capital portion of stockholder equity1 pointsQuestion 40Support Corporation, which has issued 3,000,000 shares of common stock, entered into several treasury stock transactions: 1- repurchased 90,000 shares at $14 per share. 2- reissued 20,000 shares of the treasury stock at $15 per share. Show the balance, and describe how the treasury stock account will be presented on the December 31 balance sheet. Answera. $960,000, it is added in the stockholder equity section. b. $980,000, it is deducted from the stockholder equity section. c. $980,000, it is added in the stockholder equity section. d. $960,000, it is deducted from the stockholder equity section. e. $1,260,000, it is deducted from the stockholder equity section. 1 pointsQuestion 41Which of the following transactions will increase a shareholder’s ownership interest in a corporation?Answera. a stock dividendb. a cash dividendc. the corporation issues stock to new investorsd. the corporation repurchases treasury stocke. a stock split1 pointsQuestion 42Red and Green each own common stock in the Blue company. If Red sells her stock directly to Green, which of the following statements is true?Answera. Blue’s contributed capital increasesb. Blue’s contributed capital decreasesc. Blue’s contributed capital remains the samed. Blue’s cash account increasese. Blue’s cash account decreases1 pointsQuestion 43Which of the following is aFALSEstatement?Answera. common stock can be issued at a price greater than its par valueb. treasury stock can be sold at a price less than its costc. the claims of stockholders are honored before those of creditorsd. retained earnings is profit reinvested in a corporation1 pointsQuestion 46The stockholders’ equity section of Patrick Corporation’s balance sheet at December 31 is presented here: PATRICK CORPORATIONBalance Sheet (partial)Stockholders’ equityPaid-in capitalPreferred stock, cumulative, 10,000shares authorized,6,000 shares issuedand outstanding $ 300,000Common stock, no par, 750,000 sharesauthorized, 600,000 shares issued3,000,000Total paid-in capital 3,300,000Retained earnings1,358,000Total paid-in capital and retained earnings 4,658,000Less: Treasury stock (6,000 common shares)(32,000)Total stockholders’ equity $4,626,000InstructionsFrom a review of the stockholders’ equity section, answer the following questions. (a) How many shares of common stock are outstanding? (show all work)(b) Assuming there is a stated value, what is the stated value of the common stock? (show all work)(c) What is the par value of the preferred stock? (show all work)(d) If the annual dividend on preferred stock is $18,000, what is the dividend rate on preferred stock? (show all work)(e) If dividends of $36,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? (show all work)

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Accounting

(1)Beginning inventory, purchases and sales data for tennis rackets are as follows: Feb 3Inventory12 units@$1511Purchase13 units@$1714Sale18 units21Purchase9 units@$2025Sale10 unitsAssuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under the following assumptions: a. First-in, first-outb. Last-in, first-out(2) Putter Pilot Supplies is a golf and aviation supply store. Putter Pilot uses perpetual inventory. Use a General Journal to journalize the following four transactions during the month of March: (a)On March 4th Putter purchases inventory for sale from Plane Stuff Wholesalers for $9,750. 00 with terms 1/10, n/30. (b)On March 5th Putter pays Airborne Transfer $65 for freight-in on the March 4th order. (c)On March 12th Putter buys an additional $12,985 in inventory from Plane Stuff Wholesalers with terms 1/10, n/30. (d)On March 22nd Putter pays Plane Stuff Wholesalers the balance due. General JournalGJ Page 63Date: Account TitlePostRef: Debit: Credit: (3) For each of the following, calculate the cost of inventory reported on the balance sheet. (a)The total merchandise on hand at the end of the year as determined by taking a physical inventory is $55,000. Of the $55,000, $7,000 is held on consignment. (b)The total merchandise inventory counted at the end of the year was $65,000. Purchases for $7,000 are in transit under FOB shipping point terms. (c)The total merchandise inventory counted at the end of the year was $60,000. Purchases for $5,000 are in transit under FOB destination terms.

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Accounting

1. (TCO A) Amazon Building, Inc. won a bid for a new warehouse building contract. Below is information from the project accountant. Total Construction Fixed Price $10,000,000Construction Start Date June 13, 2012Construction Complete Date December 16, 2013As of Dec. 31Ac€¦ 2012 2013Actual cost incurred $4,500,000 $2,360,000Estimated remaining costs $2,250,000 $-Billed to customer $6,000,000 $4,000,000Received from customer $5,000,000 $3,500,000Assuming Amazon Building, Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013? (Points : 5)$973,333$1,640,000$2,093,333$3,140,0002. (TCO B) At the beginning of 2012, Annie, Inc. has a deferred tax asset of $7,500 and deferred tax liability of $10,500. In 2012, pretax financial income was $826,000 and the tax rate was 35%. Pretax income included: Interest income from municipal bonds $15,000Accrued warranty costs, estimated to be used in 2013 $74,000Prepaid rent expense, will be used in 2013 $31,000Installment sales revenue, to be collected in 2013 $56,000Operating loss carryforward $71,000What is taxable income for 2012? (Points : 5)$727,000$826,000$915,000$1,073,0003. (TCO C) Presented below is pension information related to Amazing Goods, Inc. for the year 2013. Service cost $96,000Interest on projected benefit obligation $53,000Interest on vested benefits $25,000Amortization of prior service cost due to increase in benefits $10,000Expected return on plan assets $19,000The amount of pension expense to be reported for 2013 is (Points : 5)$130,000. $140,000. $165,000. $184,000. 4. (TCO C) Apple Dumpling Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2013. Service cost $320,000Contributions to the plan $285,000Actual return on plan assets $215,000Projected benefit obligation (beginning of year) $3,100,000Fair value of plan assets (beginning of year) $3,600,000The expected return on plan assets and the settlement rate were both 9%. The amount of pension expense reported for 2013 is (Points : 5)$275,000. 00$384,000. 00$320,000. 00$599,000. 005. (TCO D) Animal, Inc. leased equipment from Zoo Enterprises under a 4-year lease requiring equal annual payments of $48,000, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Animal, Inc. ‘s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pisa, Inc. ) is 8%. Assuming that this lease is properly classified as a capital lease, what is the amount of interest expense recorded by Animal, Inc. in the first year of the asset’s life?PV Annuity Due PV Ordinary Annuity8%, 5 periods 4. 31213 3. 9927110%, 5 periods 4. 16986 3. 79079 (Points : 5)0$16,559$12,719$15,3326. (TCO E) On December 31, 2013, Bob’s Trucking, Inc. appropriately changed its inventory valuation method from weighted-average cost to FIFO method for financial statement and income tax purposes. The change will result in a $600,000 increase in the beginning inventory at January 1, 2013. Assume a 30% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is (Points : 5)$600,000. $420,000. $-. $180,000. 7. (TCO E) Which of the following is not a change in accounting estimate? (Points : 5)Change in amortization period for an intangible asset. Change from straight-line to sum-of-the-years’-digits method of depreciation. Change because of understatement of inventory. Change in residual value of a depreciable plant asset. 8. (TCO F) Amazing Glory, Inc. recognized a net income of $95,000 including $20,500 in depreciation expense. Additional changes from the balance sheet are as follows. Accounts Receivable $800 decreasePrepaid Expenses $14,000 decreaseInventory $25,000 increaseAccrued Liabilities $6,500 decreaseAccounts Payable $12,000 increaseCompute the net cash from operating activities based on the above information. (Points : 5)$79,000$50,700$110,800$132,0009. (TCO G) Items that affect the realizability of accounts receivable that are revealed after the balance sheet date but before the financial statements are issued should be (Points : 5)disclosed only in the Notes to the Financial Statements. discussed only in the MD&A (Management’s Discussion and Analysis) section of the annual report. used to record an adjustment to Bad Debt Expense for the year ending December 31, 2013. used to record an adjustment directly to the retained earnings account. 10. (TCO G) Adventure, Inc. is a company that operates in four different divisions. The following information relating to each segment is available for 2013. Sales revenue Operating profit (loss) Identifiable assetsA $9,000 $2,000 $60,000B $32,000 $(14,000) $65,000C $65,500 $130,000 $525,000D $21,000 $8,000 $38,000Required: For which of the segments would information have to be disclosed in accordance with professional pronouncements? (Points : 5)Segments B, C, and DSegments A, B, and CSegments A and BSegments C and DTCO A) Adam’s Adorable Creations CompanyAdam’s Adorable Creations Company provided the following financial information for its installment-sales for the current year. Financial Data: Installment sales for current year $2,500,000Cost of goods sold on installment basis $2,000,000Repossessed merchandise: Estimated value $32,000Repossessed merchandise: Unpaid balances $45,000Payments by customers $1,600,000Required: a) Prepare journal entries for the end of the year based on the information above. b) Prepare the entry to record the gross profit realized in the current year. (Points : 40)2. (TCO B) The Accent Corporation shows the following information. On January 1, 2012, Accent purchased a donut machine for $900,000. A) Pretax financial income is $2,000,000 in 2012 and $2,500,000 in 2013. B) Taxable income is expected in future years with an expected tax rate of 40%. C) The company recognized an extraordinary gain of $250,000 in 2013 (which is fully taxable). D) Tax-exempt municipal bonds yielded interest of $50,000 in 2013. E) Half-year convention for 8 years for financial reporting (See Appendix 11A. )F) Straight-line basis depreciation for 5 years for tax purposes. Required: 1) Compute taxable income and income taxes payable for 2013. 2) Prepare the journal entries for income tax expense, income taxes payable, and deferred taxes for 2013. 3) Prepare the deferred income taxes presentation for December 31, 2013 balance sheet. (Points : 40)3. (TCO D) Absolute Leasing, Inc. agrees to lease equipment to Allen, Inc. on January 1, 2012. They agree on the following terms: 1) The normal selling price of the equipment is $600,000 and the cost of the asset to Absolute Leasing, Inc. was $475,000. 2) At the end of the lease, the equipment will revert to Absolute Leasing, Inc. and have an unguaranteed residual value of $60,000. Their implicit interest rate is 10%. 3) The lease is noncancelable with no renewal option. The lease term is 10 years (the same as the estimated economic life). 4) Absolute Leasing, Inc. incurred costs of $10,000 in negotiating and closing the lease. There are no uncertainties regarding additional costs yet to be incurred and the collectability of the lease payments is reasonably predictable. 5) The lease begins on January 1, 2012 and payments will be in equal annual installments. 6) Allen will pay all maintenance, insurance, and tax costs directly and annual payments of $65,000 on January 1 of each year. Required: a) Determine what type of lease this would be for the lessee and calculate the initial obligation. b) Prepare Allen, Inc. ‘s amortization schedule for the lease terms. c) Prepare all the journal entries for Allen, Inc. for 2012. Assume a calendar year fiscal year. (Points : 40)4. (TCO F) Cash flows from operating activities (indirect and direct methods). Presented below is the income statement of Angola, Inc. Sales $324,000Cost of goods sold $214,000Gross profit $110,000Operating expenses $67,000Income before income taxes $43,000Income taxes $17,200Net income $25,800In addition, the following information related to net changes in working capital is presented. Debit CreditCash $10,600Accounts receivable $2,400Inventories $3,600Salaries payable (operating expenses) $12,000Accounts payable $15,000Income taxes payable $1,400Depreciation expense for the year was $14,700Deferred tax liability account increased $1,800Required: Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows-(a) using the indirect method. -(b) using the direct method. (Points : 40)5. (TCO G) Selected financial ratios. The following information pertains to Allbright, Inc. Cash $53,000Accounts receivable $186,000Inventory $82,000Plant assets (net) $320,000Total assets $641,000Accounts payable $85,000Accrued taxes and expenses payable $12,000Long-term debt $365,000Common stock ($10 par) $120,000Paid-in capital in excess of par $6,000Retained earnings $150,000Total equities $641,000Net sales (all on credit) $980,000Cost of goods sold $760,000General & Admin Expenses $160,000Net income $60,000RequiredCompute the following: (It is not necessary to use averages for any balance sheet figures involved. )(a) Current ratio(b) Inventory turnover(c) Receivables turnover(d) Book value per share(e) Earnings per share(f) Debt to total assets(g) Profit margin on sales(h) Return on common stock equity (Points : 40)6. (TCO E) Please describe the requirements for a change in accounting principle and at least four reasons why companies might implement a change in accounting principle. (Points : 40)

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Accounting

Brief Exercise 8-9On March 20, Dody’s petty cash fund of $100 is replenished when the fund contains $9 in cash and receipts for postage $52, freight-out $26, and travel expense $10. Prepare the journal entry to record the replenishment of the petty cash fund. (Credit account titles are automatically indented when amount is entered. Do not indent manually. )DateAccount Titles and ExplanationDebitCreditMar. 20. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>. wiley. com/edugen/art2/common/pixel. gif”>

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Accounting

Answer the following: 1. How does the automated system improve the efficiency and timeliness of financialstatements?2. How does the automated system enhance the relevance of the information provided?3. How does the automated system enhance the decision making process?Select the correct answer and show your calculations for the following questions: 4. At the beginning of the year, a company s balance sheet reported the following balances: TotalAssets = $125,000, Total Liabilities = $75,000, and Owner s Capital = $50,000. During the year,the company reported revenues of $46, 000 and expenses of $30, 000. In addition, owner swithdrawals for the year totaled $20,000. Assuming no other changes to owner s capital, thebalance in the owner s capital account at the end of the year would be: A. $66,000B. $86,000C. $(4,000)D. $46,000E. $54,0005. A company had average total assets of $982,450 and net income of $190,700 and reportsvarious segment information. Segment A had average total assets of $437,800 and segmentoperating income of $98,230. Segment B had average assets of $151,200 and segment operatingincome of $16,190. Calculate the segment return on assets for Segment A. A. 19. 4%B. 22. 4%C. 26. 1%D. 10. 7%E. 20. 2%6. Use the information in the adjusted trial balance presented below to calculate current assets forJones Company: Account Title Dr. Cr. Cash 23,000Accounts receivable 16,000Prepaid insurance 6,600Equipment 100,000Accumulated Depreciation Equipment 50,000Land 95,000Accounts payable 17,000Interest payable 2,400Unearned revenue 5,000Long term notes payable 30,000J. Jones, Capital 136,200Totals 240,600 240,600A. $21,200B. $45,600C. $24,400D. $95,600E. $41,200

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Accounting

Answer the following:1. How does the automated system improve the efficiency and timeliness of financialstatements?2. How does the automated system enhance the relevance of the information provided?3. How does the automated system enhance the decision making process?Select the correct answer and show your calculations for the following questions:4. At the beginning of the year, a company s balance sheet reported the following balances: TotalAssets = $125,000, Total Liabilities = $75,000, and Owner s Capital = $50,000. During the year,the company reported revenues of $46, 000 and expenses of $30, 000. In addition, owner swithdrawals for the year totaled $20,000. Assuming no other changes to owner s capital, thebalance in the owner s capital account at the end of the year would be:A. $66,000B. $86,000C. $(4,000)D. $46,000E. $54,0005. A company had average total assets of $982,450 and net income of $190,700 and reportsvarious segment information. Segment A had average total assets of $437,800 and segmentoperating income of $98,230. Segment B had average assets of $151,200 and segment operatingincome of $16,190. Calculate the segment return on assets for Segment A.A. 19.4%B. 22.4%C. 26.1%D. 10.7%E. 20.2%6. Use the information in the adjusted trial balance presented below to calculate current assets forJones Company:Account Title Dr. Cr.Cash 23,000Accounts receivable 16,000Prepaid insurance 6,600Equipment 100,000Accumulated Depreciation Equipment 50,000Land 95,000Accounts payable 17,000Interest payable 2,400Unearned revenue 5,000Long term notes payable 30,000J. Jones, Capital 136,200Totals 240,600 240,600A. $21,200B. $45,600C. $24,400D. $95,600E. $41,200

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Accounting

our task is to prepare an income statement and a balance sheet ingood formatafter adjusting for the two errors below.A physical count of inventory indicates $70,500 on hand.There’s a check for $5,000 from a customer that has not been recorded in the working trial balance. The sale was never recorded in the first place, so the transaction relating to this sale is missing.In addition:Describe the effect of the errors on the income statement and balance sheet.Is this company profitable? How do you determine whether or not this is the case?Is the company in a solid financial position? (Comment on balance sheet.)

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Accounting

Take the role of an investment analyst at Prudential Bache. It is your job to recommend investments for your clients. The only information you have are some ratio values for two companies in the Pharmaceutical industry. Write a report to Prudential Bache’s investment committee. Recommend one company’s stock over the other. State the reasons for your recommendation

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Accounting

Mar 1 – Rook begins practice as a family practitioner and invests $50,000 cashMar 1- Purchases medical equipment on account from JK Enterprises for $22,800Mar 3 – Pays rent for office space for $1,500 for the monthMar 3 -Employs a receptionist, Michelle KwinMar 4 – Purchases medical supplies for cash $1,165Mar 10 – Receives cash of $850 from patients for services performedMar 15 – Bills patients $11,560 for services performedMar 21 – Pays JK Enterprises on account $7,600Mar 23 – Withdraws $3,000 cash from the business for personal useMar 26 – Receives $2,600 from patients on accountMar 30 – Bills patients $6,890 for services performedMar 31 – Pays the following expenses in cash: Salaries and wages: $2,500, Miscellaneous office expenses: $910Mar 31 – Medical Supplies used during the month: $695Instructions:Enter in appropriate general ledger accounts(Use T Accounts)Select from: Cash, Accounts Receivable, Supplies, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Owner’s Capital, Service Revenue, Rent Expense, Office Expense, Salaries and Wages Expense, Supplies Expense, Depreciation Expense, Income Summary Do not use a drawing account Use 10 lines for the Cash and Income Summary Use 5 lines for all otherRecord depreciation using a 5 year life on the equipment – straight line method with no salvage valuePrepare:Trial balance Income statementStatement of owner’s equityUnclassified balance sheet Then: Close the ledger and prepare a post-closing trial balance

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Accounting

Question 1Every asset in the Property, Plant & Equipment category must be depreciated over its useful life. Answera. Trueb. False1 pointsQuestion 2The depreciable cost of an asset is the asset’s cost minus its residual value. Answera. Trueb. False1 pointsQuestion 3The primary purpose of depreciating a plant asset is to match the cost of the asset to the period of benefit. Answera. Trueb. False1 pointsQuestion 4The primary cause for depreciation of assets in using the straight-line basis is time or age. Answera. Trueb. False1 pointsQuestion 5The impact on the financial statements of a business from amortizing intangible assets is the same as that of depreciating plant assets. Answera. Trueb. False1 pointsQuestion 6Goodwill must be amortized over its useful life not to exceed 40 years. Answera. Trueb. False1 pointsQuestion 7The par value of common stock is the value it must be sold at by the company. Answera. Trueb. False1 pointsQuestion 8There is a minimum amount of stockholder equity that a corporation must have that is referred to as legal capital. Answera. Trueb. False1 pointsQuestion 9If the corporation has only one class of stock it cannot be common stock. Answera. Trueb. False1 pointsQuestion 10Holders of cumulative preferred stock are not guaranteed that they will be paid a dividend every year. Answera. Trueb. False1 pointsQuestion 11Retained Earnings can never be a negative value. Answera. Trueb. False1 pointsQuestion 12If a company that has issued 7%, $100 par value, preferred stock, declares a dividend, then it must pay the preferred shareholders 7% of the total amount of dividends declared. Answera. Trueb. False1 pointsQuestion 13Treasury stock purchased by the company will reduce the companies outstanding shares. Answera. Trueb. False1 pointsQuestion 14If the company resells treasury stock for more than it cost to purchase the gain should be recorded as other revenue on the income statement. Answera. Trueb. False1 pointsQuestion 15If the company is liquidated, the preferred shareholders must receive their investment back before common shareholders. Answera. Trueb. False1 pointsQuestion 16Cash dividends declared by a corporation must be recorded as a liability to the shareholders until paid. Answera. Trueb. False1 pointsQuestion 17If the corporation declares a stock dividend, when the shares are issued, the shareholders receiving the additional shares owns more of the corporationAnswera. Trueb. False1 pointsQuestion 18If the corporation issues a 3 for 1 stock split there will be 3 times as many outstanding shares afterwards. Answera. Trueb. False1 pointsQuestion 19Match the depreciation method to the descriptionAnswer- A. B. C. D. E. F. G. H. I. J. assumes depreciation based upon wear and tear from usageRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. will cause an leveling of expenses over the life of an asset where it is assumed that repair cost will increase significantly as an asset gets olderRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. assumes depreciation is based upon time passingRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is similar to the method used for depletion of natural resourcesRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. will allocate cost better than the other methods where obsolescence can be a problem for the asset. Read Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is generally used to take advantage of tax benefits pertaining to depreciationRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is similar to the method generally used to amortize intangible assetsRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is the method that is easiest to allocate cost correctly where the value the asset provides will be consistent from period to period over the asset lifeRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is the method that will best allocate the asset cost when the value the asset will provide fluctuates from period to period. Read Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J. is the method which initially ignores the salvage value the asset may haveRead Answer Items for Question 19AnswerA. Straight-lineB. Double declining balanceC. Double declining balanceD. Units-of-productionE. Units-of-productionF. Double declining balanceG. Straight-lineH. Units-of-productionI. Double declining balanceJ. Straight-line10 pointsQuestion 20The book value of an asset is based on?Answera. cost – residual valueb. resale value – costc. cost – accumulated depreciationd. resale value – accumulated depreciation1 pointsQuestion 21A fully depreciated assetAnswera. must be removed from the booksb. should continue to be depreciated until it is disposed of. c. remains on the books but is no longer depreciated. d. remains on the books and is recorded as a gain on the income statement. 1 pointsQuestion 22The accumulated depreciation account is:Answera. an asset account because it reflects the asset value accumulated for replacement. b. an equity account because it reflects the portion of the asset(s) that the owner(s) of the business can claim. c. a liability account since it shows the obligation the company has to replace the assets. d. an expense account since it shows the asset value used upe. none of the above1 pointsQuestion 23A capital expenditure would appear on theAnswera. income statement under operating expensesb. balance sheet under plant assetsc. balance sheet under current assetsd. income statement under other expenses1 pointsQuestion 24The par value of stock isAnswera. the same as its market valueb. always greater than its market valuec. required for every stock issuedd. the value assigned by the corporation which defines legal capitale. the highest value the stock can have1 pointsQuestion 25If a corporation issues no-par stock instead of par value stockAnswera. total stockholder will be greater. b. total contributed capital will be greater but not the total stockholder equity. c. total legal capital will be greater. d. total legal capital will be lower. e. total stockholder equity will be lower. 1 pointsQuestion 26An increase in retained earnings during the period can be the result ofAnswera. net incomeb. cash dividendsc. sales of common stockd. stock splitse. treasury stock purchases1 pointsQuestion 27If a corporation issued 100,000 shares of $1 par value in exchange for land with a current value of $800,000, the journal entry for the transaction would include which of the followingAnswera. credit to land for $800,000b. debit to common stock for $100,000c. credit to common stock for $800,000d. credit to additional paid in capital for $700,000e. debit to land for $100,0001 pointsQuestion 28A cash dividend would have which of the following effects on the corporation declaring it?Answera. Total stockholder equity decreases. b. Total stockholder equity increases. c. Paid-in-capital increases, but total stockholder equity remains the same. d. Paid-in-capital decreases, but total stockholder equity remains the same. e. Stockholder equity remains the same. 1 pointsQuestion 29Heston Inc. has 1,000,000 share of $1 par value common stock and 20,000 share of $100 par value 7% preferred stock. If Heston board of directors releases $1,000,000 for dividends to the shareholders, how much will each common share receive?Answera. $. 86b. $. 93c. $7d. $1e. $8. 601 pointsQuestion 30A stock split would have which of the following effects on the corporation issuing it?Answera. Total stockholder equity decreases. b. Total stockholder equity increases. c. Paid-in-capital increases, but total stockholder equity remains the same. d. Paid-in-capital decreases, but total stockholder equity remains the same. e. Stockholder equity remains unchanged. 1 pointsQuestion 31ABC Corporation issued a 5% stock dividend that involved issuing 10,000 shares of $1 par value common stock when the market value of the stock was $25 per share. The journal entry for the transaction would includeAnswera. debiting cash for $10,000b. crediting retained earnings for $10,000c. debiting retained earnings for $250,000d. crediting retained earnings for $250,000e. crediting common stock for $250,0001 pointsQuestion 32Retained earnings can best be described asAnswera. cash receipts minus expenses after adjustmentsb. net income minus expenses after adjustmentsc. net income plus dividendsd. undistributed profitse. net income minus cash disbursements1 pointsQuestion 33A feature common to both stock dividends and stock splits is:Answera. a reduction in total stockholders’ equity. b. a reduction in the book value per share amount. c. a reduction in retained earnings . d. inclusion as financing activities on the cash flow statement. e. they are both distributions from treasury stock held. 1 pointsQuestion 34The declaration of a small stock dividendAnswera. increases the ownership of each shareholder. b. will cause a decrease in retained earnings equal to the par value of the shares issued. c. is a warning that the corporation has cash flow problems. d. is accounted for in the same manner as a stock split. e. will cause a decrease in retained earnings equal to the fair market value of the shares issued. 1 pointsQuestion 35The stock dividends declared account is a(n)Answera. assetb. liabilityc. stockholder equityd. revenuee. expense1 pointsQuestion 36A corporation may purchase treasury stock for all of the following reasonsexcept:Answera. to support the market price of the stockb. to issue to employees in stock option plansc. to prevent a hostile takeover. d. to generate more capital from the same stock. e. no exception, for all of the reasons stated. 1 pointsQuestion 37If the corporation repurchases treasury stockAnswera. total assets of the corporation increaseb. paid-in-capital increases but total stockholder equity remains the samec. total stockholder equity decreasesd. paid-in-capital decreases but total stockholder equity remains the samee. total liabilities of the corporation decrease1 pointsQuestion 38Additional paid-in-capital from treasury stock is recorded:Answera. when treasury stock is purchased for less than the amount of its original issue. b. when treasury stock is reissued for more than the amount at which it was purchased. c. when treasury stock is reissued for an amount greater that the amount at which it was originally issued. d. only when the treasury stock is issued to employees. 1 pointsQuestion 39Treasury stock which is repurchased by the corporation for $100 per share is later reissued for $105 per share. The effect of the reissuance willAnswera. decrease the paid-in-capital portion of stockholderb. decrease retained earningsc. increase a revenue account from the saled. increase retained earningse. increase the paid-in-capital portion of stockholder equity1 pointsQuestion 40Support Corporation, which has issued 3,000,000 shares of common stock, entered into several treasury stock transactions:1- repurchased 90,000 shares at $14 per share. 2- reissued 20,000 shares of the treasury stock at $15 per share. Show the balance, and describe how the treasury stock account will be presented on the December 31 balance sheet. Answera. $960,000, it is added in the stockholder equity section. b. $980,000, it is deducted from the stockholder equity section. c. $980,000, it is added in the stockholder equity section. d. $960,000, it is deducted from the stockholder equity section. e. $1,260,000, it is deducted from the stockholder equity section. 1 pointsQuestion 41Which of the following transactions will increase a shareholder’s ownership interest in a corporation?Answera. a stock dividendb. a cash dividendc. the corporation issues stock to new investorsd. the corporation repurchases treasury stocke. a stock split1 pointsQuestion 42Red and Green each own common stock in the Blue company. If Red sells her stock directly to Green, which of the following statements is true?Answera. Blue’s contributed capital increasesb. Blue’s contributed capital decreasesc. Blue’s contributed capital remains the samed. Blue’s cash account increasese. Blue’s cash account decreases1 pointsQuestion 43Which of the following is aFALSEstatement?Answera. common stock can be issued at a price greater than its par valueb. treasury stock can be sold at a price less than its costc. the claims of stockholders are honored before those of creditorsd. retained earnings is profit reinvested in a corporation1 pointsQuestion 46The stockholders’ equity section of Patrick Corporation’s balance sheet at December 31 is presented here:PATRICK CORPORATIONBalance Sheet (partial)Stockholders’ equityPaid-in capitalPreferred stock, cumulative, 10,000shares authorized,6,000 shares issuedand outstanding $ 300,000Common stock, no par, 750,000 sharesauthorized, 600,000 shares issued3,000,000Total paid-in capital 3,300,000Retained earnings1,358,000Total paid-in capital and retained earnings 4,658,000Less: Treasury stock (6,000 common shares)(32,000)Total stockholders’ equity $4,626,000InstructionsFrom a review of the stockholders’ equity section, answer the following questions. (a) How many shares of common stock are outstanding? (show all work)(b) Assuming there is a stated value, what is the stated value of the common stock? (show all work)(c) What is the par value of the preferred stock? (show all work)(d) If the annual dividend on preferred stock is $18,000, what is the dividend rate on preferred stock? (show all work)(e) If dividends of $36,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? (show all work)

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Aug. 1 Inventory on hand?2,000 units; cost $6.10 each.8 Purchased 10,000 units for $5.50 each.14 Sold 8,000 units for $12.00 each.18 Purchased 6,000 units for $5.00 each.25 Sold 7,000 units for $11.00 each.31 Inventory on hand?3,000 units.Required:Determine the inventory balance Altira would report in its August 31, 2011, balance sheet and the cost of goods sold it would report in its August 2011 income statement using each of the following cost flow methods:1. First-in, first-out (FIFO)

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Accounting

Alex Shore practiced accounting with a partnership for five years. Recently he opened his own accounting firm, which he operates as a professional corporation. The name of the new entity is Alex Shore, CPA, P.C. Shore experienced the following events during the organizing phase of the new business and its first month of operations. Some of the events were personal and did not affect the business. 4-Feb Shore received $27,000 cash from former accounting partners.* 5 Deposited $50,000 in a new business bank account titled Alex Shore, CPA, P.C. The business issued common stock to Shore. 6 Paid $100 cash for letterhead stationery for the new office. 7 Purchased office furniture for the office. The business will pay the account payable, $9,700, within three months. 10 Shore sold personal investment in Amazing.com stock, which he had owned for several years, receiving $50,000 cash.* 11 Shore deposited the $50,000 cash from sale of the Amazing.com stock in his personal bank account.* 12 A representative of a large company telephoned Shore and told him of the 18 companys intention to transfer its accounting business to Shore. Finished tax hearings on behalf of a client and submitted a bill for accounting services, $17,000. Shore expected to collect from this client within two weeks. 25 Paid office rent, $1,500. 28 Paid cash dividends of $1,000. i need to balance thisstudio photography works wedding and pros-type parties . the balance of Ansel capital was $16,000 at December 31,2011, the business accounting records show this balances.Insurances expenses $8,000Account Receivable $8,000Cash $37,000Note Payable $12,000Account payable $7,000 Ansel Capital,Dec 31, 2012 ?Advertising expenses $3,000 Salary Expenses $ 25,000Service renew $80,000 Equipment $50,000Ansel drawing $13,000 Owner investment 2012 29,000RequirementPrepare the following for studio photography for the year ended December 31,2012a. Income statementb. Statement of owner equityc. Balance sheet2.#dmRosAdWrapper-MainNorth iframe{width:100%} <iframe id=”dmRosAd-1-north” width=”560″ height=”315″ frameborder=”0″ marginheight=”0″ marginwidth=”0″ scrolling=”no” src=”http://dmros.ysm.yahoo.com/ros/?c=cbdde9a2&w=678&h=315&ty=noscript&tt=Accounting+homework+help%3F&r=https%3a%2f%2fwww.google.com%2furl%3fsa%3dt%26amp%3brct%3dj%26amp%3bq%3d%26amp%3besrc%3ds%26amp%3bfrm%3d1%26amp%3bsource%3dweb%26amp%3bcd%3d1%26amp%3bved%3d0CCYQFjAA%26amp%3burl%3dhttps%3A%2F%2Fanswers.yahoo.com%2Fquestion%2Findex%3Fqid%3D20120905143139AAl40PN%26amp%3bei%3d7X1-U7msJIqdyATYwYLoDA%26amp%3busg%3dAFQjCNGVBVBN69RSTHx6NrqRMb7680d8QQ%26amp%3bbvm%3dbv.67720277%2cd.aWw”> </iframe>

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Accounting

This project gives a companys starting balance sheet, and lists 18 transactions. Required: 1. Prepare journal entries for the 18 transactions. (4 points each) 2. Prepare a trial balance showing what the ending ledger balances would be after the 18 transactions. (8 points) 3. Prepare an income statement for the year. (8 points) 4. Prepare a statement of stockholders equity for the year (4 points) 5. Prepare a balance sheet at the end of the year. (8 points) Northeast Company January 1, 2007, Balance Sheet Cash 20,000 Accounts receivable 110,000 Less: Allowance for doubtful accounts (10,000) Inventory (500 units @ $20 each) 10,000 Equipment 9,000 Less: Accumulated depreciation (2,000) —————– Total assets 137,000 Accounts payable 20,000 Long-term notes payable (5% interest, due in 2010) 100,000 Capital stock 10,000 Retained earnings 7,000 ——————- 137,000 Transactions or events: a. The company collected 98,000 of the accounts receivable in cash. b. The company wrote off one $1,000 accounts receivable from J. Jones c. On Jan. 1, the company bought a car for $30,000. d. The company paid 19,000 of its accounts payable in cash. e. The company bought 900 units of inventory for $21 each in cash. f. The company bought a 1 year insurance policy for $2400 on October 1. g. The company paid rent for the months January through December of $18,000 h. On July 1, the company bought rights to a patent for $20,000. The patent has ten more years of useful life. i. On Dec 31, the company paid rent for Jan. 2008 for $1,500. j. On Dec. 1, the company bought another 200 units of inventory for $22 on account. k. On Dec. 15, the company sold 1,300 units for $30 each. 1000 were sold for cash, and 300 on account.[The company accounts for its inventory on the FIFO basis, so the first items bought are assumed to be the first ones sold.] l. The company decided to record bad debt expense of $1,000. m. The company recorded depreciation on the equipment. The equipment is one year old. It had a cost of $9,000, salvage value of $1,000, and an expected useful life of 4 years. n. The company recorded depreciation on the car, using the straight line method, assuming it had a five year life, and salvage value of $6,000. o. The company made the appropriate adjustment to reflect the fact the insurance policy only had nine more months left of effectiveness. p. The company accrued the interest that had been built up on the long-term notes. The money had been borrowed on January 1, 2007. No payments of interest or principal were due until some time in 2008. q. The company made the appropriate entry to record amortization on the patent on December 31. r. On December 1, the company paid dividends of $1,000 to its shareholders.

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Accounting

Week 3 Assignment 1 SubmissionAssignment 1: Amazon.com Business Combinations and Financial Results AnalysisDue Week 3 and worth 240 pointsSearch the Internet for acquisitions and equity investments made by Amazon.com during the last five (5) years. Review the 10-K of Amazon.com located at http://www.sec.gov/cgi-bin/browse-edgar?company=&match=&CIK=AMZN&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find+Companies&action=getcompany.Write a three to four (3-4) page paper in which you:Examine how at least three (3) growth strategy alternatives utilized by Amazon.com in the global and domestic retail markets influenced profitability, and indicate if the strategies were successful.Assess the financial value of the acquisitions and investments made by Amazon.com, and the influence of the acquisitions and investments on profitability during the accounting period.Analyze the effect of the equity investments and impairments resulting from the acquisitions and investments by Amazon.com on the financial statements, and indicate whether or not the strategy was a creatable one. Provide support for your rationale.Create an argument that growth in the European market can have a significant impact on current earnings and profit for Amazon.com. Provide support for your rationale.Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

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Accounting

Question 1Every asset in the Property, Plant & Equipment category must be depreciated over its useful life.Answera.Trueb.False1 pointsQuestion 2The depreciable cost of an asset is the asset’s cost minus its residual value.Answera.Trueb.False1 pointsQuestion 3The primary purpose of depreciating a plant asset is to match the cost of the asset to the period of benefit.Answera.Trueb.False1 pointsQuestion 4The primary cause for depreciation of assets in using the straight-line basis is time or age.Answera.Trueb.False1 pointsQuestion 5The impact on the financial statements of a business from amortizing intangible assets is the same as that of depreciating plant assets.Answera.Trueb.False1 pointsQuestion 6Goodwill must be amortized over its useful life not to exceed 40 years.Answera.Trueb.False1 pointsQuestion 7The par value of common stock is the value it must be sold at by the company.Answera.Trueb.False1 pointsQuestion 8There is a minimum amount of stockholder equity that a corporation must have that is referred to as legal capital.Answera.Trueb.False1 pointsQuestion 9If the corporation has only one class of stock it cannot be common stock.Answera.Trueb.False1 pointsQuestion 10Holders of cumulative preferred stock are not guaranteed that they will be paid a dividend every year.Answera.Trueb.False1 pointsQuestion 11Retained Earnings can never be a negative value.Answera.Trueb.False1 pointsQuestion 12If a company that has issued 7%, $100 par value, preferred stock, declares a dividend, then it must pay the preferred shareholders 7% of the total amount of dividends declared.Answera.Trueb.False1 pointsQuestion 13Treasury stock purchased by the company will reduce the companies outstanding shares.Answera.Trueb.False1 pointsQuestion 14If the company resells treasury stock for more than it cost to purchase the gain should be recorded as other revenue on the income statement.Answera.Trueb.False1 pointsQuestion 15If the company is liquidated, the preferred shareholders must receive their investment back before common shareholders.Answera.Trueb.False1 pointsQuestion 16Cash dividends declared by a corporation must be recorded as a liability to the shareholders until paid.Answera.Trueb.False1 pointsQuestion 17If the corporation declares a stock dividend, when the shares are issued, the shareholders receiving the additional shares owns more of the corporationAnswera.Trueb.False1 pointsQuestion 18If the corporation issues a 3 for 1 stock split there will be 3 times as many outstanding shares afterwards.Answera.Trueb.False1 pointsQuestion 19Match the depreciation method to the descriptionAnswer- A. B. C. D. E. F. G. H. I. J.assumes depreciation based upon wear and tear from usageRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J.will cause an leveling of expenses over the life of an asset where it is assumed that repair cost will increase significantly as an asset gets olderRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J.assumes depreciation is based upon time passingRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J.is similar to the method used for depletion of natural resourcesRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J.will allocate cost better than the other methods where obsolescence can be a problem for the asset.Read Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J.is generally used to take advantage of tax benefits pertaining to depreciationRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J.is similar to the method generally used to amortize intangible assetsRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J.is the method that is easiest to allocate cost correctly where the value the asset provides will be consistent from period to period over the asset lifeRead Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J.is the method that will best allocate the asset cost when the value the asset will provide fluctuates from period to period.Read Answer Items for Question 19- A. B. C. D. E. F. G. H. I. J.is the method which initially ignores the salvage value the asset may haveRead Answer Items for Question 19AnswerA.Straight-lineB.Double declining balanceC.Double declining balanceD.Units-of-productionE.Units-of-productionF.Double declining balanceG.Straight-lineH.Units-of-productionI.Double declining balanceJ.Straight-line10 pointsQuestion 20The book value of an asset is based on?Answera.cost – residual valueb.resale value – costc.cost – accumulated depreciationd.resale value – accumulated depreciation1 pointsQuestion 21A fully depreciated assetAnswera.must be removed from the booksb.should continue to be depreciated until it is disposed of.c.remains on the books but is no longer depreciated.d.remains on the books and is recorded as a gain on the income statement.1 pointsQuestion 22The accumulated depreciation account is:Answera.an asset account because it reflects the asset value accumulated for replacement.b.an equity account because it reflects the portion of the asset(s) that the owner(s) of the business can claim.c.a liability account since it shows the obligation the company has to replace the assets.d.an expense account since it shows the asset value used upe.none of the above1 pointsQuestion 23A capital expenditure would appear on theAnswera.income statement under operating expensesb.balance sheet under plant assetsc.balance sheet under current assetsd.income statement under other expenses1 pointsQuestion 24The par value of stock isAnswera.the same as its market valueb.always greater than its market valuec.required for every stock issuedd.the value assigned by the corporation which defines legal capitale.the highest value the stock can have1 pointsQuestion 25If a corporation issues no-par stock instead of par value stockAnswera.total stockholder will be greater.b.total contributed capital will be greater but not the total stockholder equity.c.total legal capital will be greater.d.total legal capital will be lower.e.total stockholder equity will be lower.1 pointsQuestion 26An increase in retained earnings during the period can be the result ofAnswera.net incomeb.cash dividendsc.sales of common stockd.stock splitse.treasury stock purchases1 pointsQuestion 27If a corporation issued 100,000 shares of $1 par value in exchange for land with a current value of $800,000, the journal entry for the transaction would include which of the followingAnswera.credit to land for $800,000b.debit to common stock for $100,000c.credit to common stock for $800,000d.credit to additional paid in capital for $700,000e.debit to land for $100,0001 pointsQuestion 28A cash dividend would have which of the following effects on the corporation declaring it?Answera.Total stockholder equity decreases.b.Total stockholder equity increases.c.Paid-in-capital increases, but total stockholder equity remains the same.d.Paid-in-capital decreases, but total stockholder equity remains the same.e.Stockholder equity remains the same.1 pointsQuestion 29Heston Inc. has 1,000,000 share of $1 par value common stock and 20,000 share of $100 par value 7% preferred stock. If Heston board of directors releases $1,000,000 for dividends to the shareholders, how much will each common share receive?Answera.$.86b.$.93c.$7d.$1e.$8.601 pointsQuestion 30A stock split would have which of the following effects on the corporation issuing it?Answera.Total stockholder equity decreases.b.Total stockholder equity increases.c.Paid-in-capital increases, but total stockholder equity remains the same.d.Paid-in-capital decreases, but total stockholder equity remains the same.e.Stockholder equity remains unchanged.1 pointsQuestion 31ABC Corporation issued a 5% stock dividend that involved issuing 10,000 shares of $1 par value common stock when the market value of the stock was $25 per share. The journal entry for the transaction would includeAnswera.debiting cash for $10,000b.crediting retained earnings for $10,000c.debiting retained earnings for $250,000d.crediting retained earnings for $250,000e.crediting common stock for $250,0001 pointsQuestion 32Retained earnings can best be described asAnswera.cash receipts minus expenses after adjustmentsb.net income minus expenses after adjustmentsc.net income plus dividendsd.undistributed profitse.net income minus cash disbursements1 pointsQuestion 33A feature common to both stock dividends and stock splits is:Answera.a reduction in total stockholders’ equity.b.a reduction in the book value per share amount.c.a reduction in retained earnings .d.inclusion as financing activities on the cash flow statement.e.they are both distributions from treasury stock held.1 pointsQuestion 34The declaration of a small stock dividendAnswera.increases the ownership of each shareholder.b.will cause a decrease in retained earnings equal to the par value of the shares issued.c.is a warning that the corporation has cash flow problems.d.is accounted for in the same manner as a stock split.e.will cause a decrease in retained earnings equal to the fair market value of the shares issued.1 pointsQuestion 35The stock dividends declared account is a(n)Answera.assetb.liabilityc.stockholder equityd.revenuee.expense1 pointsQuestion 36A corporation may purchase treasury stock for all of the following reasonsexcept:Answera.to support the market price of the stockb.to issue to employees in stock option plansc.to prevent a hostile takeover.d.to generate more capital from the same stock.e.no exception, for all of the reasons stated.1 pointsQuestion 37If the corporation repurchases treasury stockAnswera.total assets of the corporation increaseb.paid-in-capital increases but total stockholder equity remains the samec.total stockholder equity decreasesd.paid-in-capital decreases but total stockholder equity remains the samee.total liabilities of the corporation decrease1 pointsQuestion 38Additional paid-in-capital from treasury stock is recorded:Answera.when treasury stock is purchased for less than the amount of its original issue.b.when treasury stock is reissued for more than the amount at which it was purchased.c.when treasury stock is reissued for an amount greater that the amount at which it was originally issued.d.only when the treasury stock is issued to employees.1 pointsQuestion 39Treasury stock which is repurchased by the corporation for $100 per share is later reissued for $105 per share. The effect of the reissuance willAnswera.decrease the paid-in-capital portion of stockholderb.decrease retained earningsc.increase a revenue account from the saled.increase retained earningse.increase the paid-in-capital portion of stockholder equity1 pointsQuestion 40Support Corporation, which has issued 3,000,000 shares of common stock, entered into several treasury stock transactions:1- repurchased 90,000 shares at $14 per share.2- reissued 20,000 shares of the treasury stock at $15 per share.Show the balance, and describe how the treasury stock account will be presented on the December 31 balance sheet.Answera.$960,000, it is added in the stockholder equity section.b.$980,000, it is deducted from the stockholder equity section.c.$980,000, it is added in the stockholder equity section.d.$960,000, it is deducted from the stockholder equity section.e.$1,260,000, it is deducted from the stockholder equity section.1 pointsQuestion 41Which of the following transactions will increase a shareholder’s ownership interest in a corporation?Answera.a stock dividendb.a cash dividendc.the corporation issues stock to new investorsd.the corporation repurchases treasury stocke.a stock split1 pointsQuestion 42Red and Green each own common stock in the Blue company. If Red sells her stock directly to Green, which of the following statements is true?Answera.Blue’s contributed capital increasesb.Blue’s contributed capital decreasesc.Blue’s contributed capital remains the samed.Blue’s cash account increasese.Blue’s cash account decreases1 pointsQuestion 43Which of the following is aFALSEstatement?Answera.common stock can be issued at a price greater than its par valueb.treasury stock can be sold at a price less than its costc.the claims of stockholders are honored before those of creditorsd.retained earnings is profit reinvested in a corporation1 pointsQuestion 46The stockholders’ equity section of Patrick Corporation’s balance sheet at December 31 is presented here:PATRICK CORPORATIONBalance Sheet (partial)Stockholders’ equityPaid-in capitalPreferred stock, cumulative, 10,000shares authorized,6,000 shares issuedand outstanding $ 300,000Common stock, no par, 750,000 sharesauthorized, 600,000 shares issued3,000,000Total paid-in capital 3,300,000Retained earnings1,358,000Total paid-in capital and retained earnings 4,658,000Less: Treasury stock (6,000 common shares)(32,000)Total stockholders’ equity $4,626,000InstructionsFrom a review of the stockholders’ equity section, answer the following questions.(a) How many shares of common stock are outstanding? (show all work)(b) Assuming there is a stated value, what is the stated value of the common stock? (show all work)(c) What is the par value of the preferred stock? (show all work)(d) If the annual dividend on preferred stock is $18,000, what is the dividend rate on preferred stock? (show all work)(e) If dividends of $36,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? (show all work)

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Accounting

Task Name:Phase 3 Individual ProjectDeliverable Length:1-page documentDetails:Weekly tasks or assignments (Individual or Group Projects) will be due by Monday, and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.The general manager at the Overall Manufacturing Company has submitted the following information for a specific line of heat exchangers with the recommendation to discontinue the round style heat exchanger because of its continued net operating income losses.Overall Manufacturing CompanyHeat ExchangersTotalRoundRectangularOctagonalSales$1,000,000$140,000$500,000$360,000Less variable expenses$410,000$60,000$200,000$150,000Contribution margin$590,000$80,000$300,000$210,000Less fixed expenses:Advertising$216,000$41,000$110,000$65,000Depreciation$95,000$20,000$40,000$35,000Line supervisors’ salaries$19,000$6,000$7,000$6,000General factory overhead*$200,000$28,000$100,000$72,000Total fixed expenses$530,000$95,000$257,000$178,000Net operating income (loss)$60,000$(15,000)$43,000$32,000*A common fixed cost that is allocated on the basis of sales dollarsAnalyze the above information to determine if the round heat exchanger should be discontinued. The special equipment that is used to produce the round heat exchanger has no resale value. If the round heat exchanger is discontinued, the two line supervisors who are assigned to the model would be discharged. Overall Manufacturing Company has no other use for the capacity that is now being used to produce the round heat exchanger.Include the following in your analysis:Should the production and sale of the round heat exchanger be discontinued? Show your analysis to support your answer.How might this same information be presented to make it more useful to management in assessing the long-run profitability of its various product lines?What policy change would you recommend to management?Please submit your assignment.For assistance with your assignment, please use your text, Web resources, and all course materials.Course Materials.ctuonline.edu/Multimedia/MUSE/MUSEicon.png”>

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Accounting

Alex Shore practiced accounting with a partnership for five years. Recently he opened his own accounting firm, which he operates as a professional corporation. The name of the new entity is Alex Shore, CPA, P.C. Shore experienced the following events during the organizing phase of the new business and its first month of operations. Some of the events were personal and did not affect the business. 4-Feb Shore received $27,000 cash from former accounting partners.* 5 Deposited $50,000 in a new business bank account titled Alex Shore, CPA, P.C. The business issued common stock to Shore. 6 Paid $100 cash for letterhead stationery for the new office. 7 Purchased office furniture for the office. The business will pay the account payable, $9,700, within three months. 10 Shore sold personal investment in Amazing.com stock, which he had owned for several years, receiving $50,000 cash.* 11 Shore deposited the $50,000 cash from sale of the Amazing.com stock in his personal bank account.* 12 A representative of a large company telephoned Shore and told him of the 18 company’s intention to transfer its accounting business to Shore. Finished tax hearings on behalf of a client and submitted a bill for accounting services, $17,000. Shore expected to collect from this client within two weeks. 25 Paid office rent, $1,500. 28 Paid cash dividends of $1,000. i need to balance thisstudio photography works wedding and pros-type parties . the balance of Ansel capital was $16,000 at December 31,2011, the business accounting records show this balances.Insurances expenses $8,000Account Receivable $8,000Cash $37,000Note Payable $12,000Account payable $7,000 Ansel Capital,Dec 31, 2012 ?Advertising expenses $3,000 Salary Expenses $ 25,000Service renew $80,000 Equipment $50,000Ansel drawing $13,000 Owner investment 2012 29,000RequirementPrepare the following for studio photography for the year ended December 31,2012a. Income statementb. Statement of owner’ equityc. Balance sheet2.#dmRosAdWrapper-MainNorth iframe{width:100%} <iframe id=”dmRosAd-1-north” width=”560″ height=”315″ frameborder=”0″ marginheight=”0″ marginwidth=”0″ scrolling=”no” src=”http://dmros.ysm.yahoo.com/ros/?c=cbdde9a2&w=678&h=315&ty=noscript&tt=Accounting+homework+help%3F&r=https%3a%2f%2fwww.google.com%2furl%3fsa%3dt%26amp%3brct%3dj%26amp%3bq%3d%26amp%3besrc%3ds%26amp%3bfrm%3d1%26amp%3bsource%3dweb%26amp%3bcd%3d1%26amp%3bved%3d0CCYQFjAA%26amp%3burl%3dhttps%3A%2F%2Fanswers.yahoo.com%2Fquestion%2Findex%3Fqid%3D20120905143139AAl40PN%26amp%3bei%3d7X1-U7msJIqdyATYwYLoDA%26amp%3busg%3dAFQjCNGVBVBN69RSTHx6NrqRMb7680d8QQ%26amp%3bbvm%3dbv.67720277%2cd.aWw”> </iframe>

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accounting

Aug. 1 Inventory on hand—2,000 units; cost $6.10 each.8 Purchased 10,000 units for $5.50 each.14 Sold 8,000 units for $12.00 each.18 Purchased 6,000 units for $5.00 each.25 Sold 7,000 units for $11.00 each.31 Inventory on hand—3,000 units.Required:Determine the inventory balance Altira would report in its August 31, 2011, balance sheet and the cost of goods sold it would report in its August 2011 income statement using each of the following cost flow methods:1. First-in, first-out (FIFO)

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ACCOUNTING

This project gives a company’s starting balance sheet, and lists 18 transactions. Required: 1. Prepare journal entries for the 18 transactions. (4 points each) 2. Prepare a trial balance showing what the ending ledger balances would be after the 18 transactions. (8 points) 3. Prepare an income statement for the year. (8 points) 4. Prepare a statement of stockholders’ equity for the year (4 points) 5. Prepare a balance sheet at the end of the year. (8 points) Northeast Company January 1, 2007, Balance Sheet Cash 20,000 Accounts receivable 110,000 Less: Allowance for doubtful accounts (10,000) Inventory (500 units @ $20 each) 10,000 Equipment 9,000 Less: Accumulated depreciation (2,000) —————– Total assets 137,000 Accounts payable 20,000 Long-term notes payable (5% interest, due in 2010) 100,000 Capital stock 10,000 Retained earnings 7,000 ——————- 137,000 Transactions or events: a. The company collected 98,000 of the accounts receivable in cash. b. The company wrote off one $1,000 accounts receivable from J. Jones c. On Jan. 1, the company bought a car for $30,000. d. The company paid 19,000 of its accounts payable in cash. e. The company bought 900 units of inventory for $21 each in cash. f. The company bought a 1 year insurance policy for $2400 on October 1. g. The company paid rent for the months January through December of $18,000 h. On July 1, the company bought rights to a patent for $20,000. The patent has ten more years of useful life. i. On Dec 31, the company paid rent for Jan. 2008 for $1,500. j. On Dec. 1, the company bought another 200 units of inventory for $22 on account. k. On Dec. 15, the company sold 1,300 units for $30 each. 1000 were sold for cash, and 300 on account.[The company accounts for its inventory on the FIFO basis, so the first items bought are assumed to be the first ones sold.] l. The company decided to record bad debt expense of $1,000. m. The company recorded depreciation on the equipment. The equipment is one year old. It had a cost of $9,000, salvage value of $1,000, and an expected useful life of 4 years. n. The company recorded depreciation on the car, using the straight line method, assuming it had a five year life, and salvage value of $6,000. o. The company made the appropriate adjustment to reflect the fact the insurance policy only had nine more months left of effectiveness. p. The company accrued the interest that had been built up on the long-term notes. The money had been borrowed on January 1, 2007. No payments of interest or principal were due until some time in 2008. q. The company made the appropriate entry to record amortization on the patent on December 31. r. On December 1, the company paid dividends of $1,000 to its shareholders.

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Accounting!!!!!!!!!!!!!

1) A cost management system provides ________.A) measures of inventory value and cost of goods sold for financial reportingB) cost information for strategic management decisionsC) cost information for operational controlD) all of the above2) Cost accounting is that part of the cost management system that measures costs for the sole purpose of financial reporting. True or False3) Which of the following costs is a direct cost to a manufactured product?A) depreciation expense on factory equipment used for the productB) the wages of an assembly worker who works specifically on the productC) accountants who accumulate the costs of the productD) a factory supervisor who oversees the production of several different types of products4) Physically tracing ________ costs is usually straightforward, but allocating ________ costs is usually more complex.A) indirect; directB) direct; productC) direct; indirectD) unallocated; indirect5) Unallocated costs ________.A) have an identifiable relationship to a cost poolB) lack an identifiable relationship to a cost poolC) have an identifiable relationship to a cost objectD) lack an identifiable relationship to a cost object6) Unallocated costs ________.A) are not recorded in the cost accounting systemB) are not allocated to cost objectsC) are direct costs for service firmsD) are indirect costs for merchandising firms7) The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs.Activity Cost DriverActivity 1 Direct materials costActivity 2 Direct labor costActivity 3 Kilowatt hoursThree types of products are produced. Direct costs and cost-driver activity for each product for a month are as follows: Product A Product B Product CDirect materials cost $75,000 $50,000 $125,000Direct labor cost $6,000 $1,000 $3,000Direct labor hours 1,000 500 1,500Kilowatt hours 150,000 200,000 150,000Indirect production costs for the month are as follows:Activity 1 $12,000Activity 2 20,000Activity 3 16,000Total $48,000Required:A) Compute the indirect production costs allocated to each product using the ABC system.B) Compute the indirect production costs allocated to each product using a traditional costing system. Assume indirect production costs are allocated to each product using the cost driver: direct labor hours.8) Historical or past information can have an indirect bearing on a decision because ________.A) the past can be changedB) it can help predict the futureC) past decisions are always good decisionsD) none of the above9) ________ is the predicted future costs and revenues that will differ among alternative courses of action.A) Relevant informationB) Sunk costsC) Predictable informationD) Target pricing10) Information is relevant in business decisions if it is a(n) ________.A) expected future cost or it differs among alternativesB) expected future cost and it differs among alternativesC) historical cost and it differs among alternativesD) expected future cost that differs from a past cost11) The accountant’s role in decision making involves providing the relevant information for decision makers. True or False12) If perfectly accurate and relevant information is not available for decision making, the accountant should consider using information that is ________.A) precise but irrelevantB) imprecise but irrelevantC) imprecise but relevantD) imprecise but timely13) In decision making, relevance is more crucial than ________.A) precisionB) predictabilityC) variable costsD) fixed costs14) The ________ approach is useful for short-run decisions and the ________ approach is useful for long-run decisions.A) contribution; absorptionB) absorption; contributionC) full costing; target costingD) full costing; contributionComment on why an MBA should be knowledgeable about contribution and absorption methods. Short answer please. 15) Washington Company has the following data about its only product:Direct materials used $200,000Direct labor 80,000Indirect manufacturing?fixed 100,000Selling and administrative?fixed 300,000Indirect manufacturing?variable 20,000Selling and administrative?variable 60,000Selling price(per unit) 100Units produced and sold 10,000Washington Company uses the absorption approach. What is the gross margin?A) $240,000B) $540,000C) $600,000D) $660,00016) Timmerman Company has budgeted sales of $30,000 with the following budgeted costs:Direct materials $6,300Direct labor 4,100Variable factory overhead 3,700Fixed factory overhead 5,600Variable selling and administrative costs 2,400Fixed selling and administrative costs 3,200Required:Compute the average target markup percentage for setting prices as a percentage of:A) Total costsB) Total variable costsC) Variable manufacturing costsD) Total manufacturing costs17 ) Stangle Company manufactures ties. When 28,000 ties are produced, the costs per unit are:Direct materials $0.60Direct manufacturing labor 3.00Variable manufacturing overhead 1.20Fixed manufacturing overhead 1.60Variable selling 0.80Fixed selling 1.13The ties normally sell for $22 each. The company has received a special order for 2,000 ties at $10.00 per tie. The company has excess capacity.Required:Compute the amount by which the operating income would change if the order were accepted.Comment on other non numeric factors that would influence your decision as a manager to accept or reject a special order. See your lecture notes, this answer will not be found in the text book. 18) An opportunity cost is ________.A) the additional costs generated by a proposed alternativeB) the difference in total cost between two alternativesC) a cash disbursement in the futureD) the maximum available benefit foregone by using a resource for a particular purpose instead of the best alternative use19) Company XYZ is a small company with limited expertise with information technology. Company XYZ has a contract with Company ZZ. Company ZZ handles all of Company XYZ’s information technology needs. For Company XYZ, this is an example of ________.A) joint costsB) joint decision makingC) outsourcingD) technology transfer20)What would be a consideration in a make-or-buy decision?A) excess capacityB) variable factory overhead costsC) rental income from idle facilities when not making a partD) all of the above21)Fixed overhead costs that will continue regardless of a make-or-buy decision are ________ to the make-or-buy decision.A) relevantB) irrelevantC) avoidableD) incremental22) Goldwater Company manufactures a part for its production cycle. The annual costs per unit for 10,000 units of the part are as follows:Direct materials $20.00Direct labor 15.00Variable factory overhead 16.00Fixed factory overhead 10.00Total costs $61.00The fixed factory overhead costs are unavoidable. Olson Company has offered to sell 10,000 units of the same part to Goldwater Company for $60 per unit. The facilities currently used to make the part could be used to make 10,000 units per year of a new product that has a contribution margin of $20 per unit. No additional fixed costs would be incurred with the new product. Goldwater Company should ________.A) make the part to save $10,000B) make the part to save $90,000C) make the new product and buy the part to save $90,000D) make the new product and buy the part to save $110,000Comment on some of the issues of buying critical parts from a vendor verses manufacturing them yourself. See lecture notes, answer is not found in the text. 23) Each year, Mother Company purchases 8,000 units of a part that it needs for production of its product. The supplier notified Mother Company that a price increase will take effect shortly, which will bring the price of the part to $25 per part. Mother Company is considering the use of idle facilities to produce the part. The annual production costs to produce the needed 8,000 parts are as follows:Direct materials $17,500Direct labor 30,000Indirect production costs?variable 14,000Indirect production costs?fixed 33,500The idle facilities could also be rented out at an annual rent of $99,000. All the fixed indirect production costs are avoidable.Required:Determine if Mother Company should buy the part or produce it internally.24) Olson Company has three departments. Data for the most recent year is presented below: Dept. C Dept. A Dept. TSales $4,000 $1,920 $2,240Variable expenses 3,280 1,420 520Unavoidable fixed expenses 480 180 440Avoidable fixed expenses 555 265 360Operating income(loss) $(315) $55 $920Olson Company is considering eliminating Dept. C because it is operating at a loss.Required:A) Compute the change in operating income if Olson Company eliminates Dept. C and does not replace it.B) Compute the change in operating income if Olson Company eliminates Dept. C and doubles the sales of Dept. T without increasing fixed costs.25) A major benefit of effective budgeting is that ________.A) it compels managers to think aheadB) it aids managers in communicating objectives to employeesC) it provides benchmarks to evaluate subsequent performanceD) all of the above26) The most effective budget processes facilitate communication from top management to ________ and from lower level managers and employees to ________.A) the SEC; the audit committeeB) stockholders; creditorsC) lower level managers and employees; top managementD) creditors; stockholders27) A major drawback of using historical results for judging current performance is that ________.A) past results may be inaccurateB) results may refer to a different managerC) inefficiencies may be concealed in past resultsD) managers may have cooked the books28) Budgets are generally more effective if they are ________.A) created with the active participation of all affected employeesB) understood and accepted by affected managersC) supported by top managementD) all of the above29) Managers may ________ their budgeted costs or ________ their budgeted revenues to create a budget target that is easier to achieve.A) understate; overstateB) overstate; understateC) understate; understateD) overstate; overstate30) A sales forecast is ________.A) a prediction of sales under a given set of conditionsB) the sales budgetC) based on input from the board of directorsD) based on input from the audit committee31) Which of the following statements about long-range plans is FALSE?A) Long-range plans provide forecasted financial statements for five to ten year periods.B) Long-range plans guide day-to-day operations.C) Companies coordinate long-range plans with capital budgets.D) A decision made during long-range planning is the acquisition of a plant building.32) ________ set the overall goals and objectives of the organization.A) Capital budgetsB) Cash budgetsC) Master budgetsD) Strategic plans33) Which of the following is a component of the financial budget?A) budgeted balance sheetB) budgeted income statementC) sales budgetD) purchases budget34) What is the final result of the operating budget process?A) budgeted balance sheetB) budgeted income statementC) budgeted cash flow statementD) cash budget35) A decision made during long-range planning includes whether to delete a product from a company’s product line. True or False. 36) Bates Corporation has the following sales budget:Month Budgeted SalesMay $84,000June 100,000July 92,000August 116,000September 98,000Credit sales are 80% of total sales. Collections of credit sales are 80% in the month of sale, 15% in the month after sale and 5% are never collected.Required:Prepare a schedule of cash collections for June, July and August.Answer: June July AugustCash sales $20,000 $18,400 $23,200Collections of credit sales:Current month 64,000 58,880 74,240Previous month 10,080 12,000 11,040Total collections $94,080 $89,280 $108,480Extend the three month to an annual budget.Based on the annual budget that you have just calculated, comment on what the line items of the following years budget need the most attention from you the manager. What are some of the possible errors that can occur if you prepare subsequent budgets by simply increasing a line item by a percentage? For example annual sales of 246,400 will increase by 7 percent to $263,648 (246,400 X 1.07). Comment on why a well prepared well thought out budget is a good offense as well as a good defense.Comment on how you would obtain information in estimating critical line items of the budget.37) Divine Intervention Company uses activity-based costing. The company is trying to estimate the costs of the processing activity in the factory. The company has developed the following flexible budget formula:Y = $10.50X + $13,000Where: Y = Total processing cost per quarter and X = Number of machine hoursWhat are the expected total processing costs if 10,000 machine hours are expected next quarter?A) $13,000B) $105,000C) $113,000D) $118,00038) Puppy Company planned to produce 12,000 units. This level of activity required 20 setups at a cost of $22,000 plus $500 per setup. Actual production was 10,000 units, requiring 15 setups. Actual setup cost was $26,000. At 10,000 units, what is the flexible budget amount for total setup costs?A) $7,500B) $22,000C) $26,000D) $29,500Please see Page: 308 of the text book39) Which is NOT a reason for a static budget variance?A) Actual sales volume was higher than projected sales volume.B) Actual variable costs per unit were higher than expected variable costs per unit.C) Actual fixed costs per unit were higher than expected fixed costs per unit.D) Actual sales volume in current period was higher than projected sales volume in last period.Please see Page: 308 of the text book

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Accounting

This is a comprehensive project evaluation problem bringing together much of what you have learned in this and previous chapters. Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $6 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. The land was appraised last week for $8.4 million. The company wants to build its new manufacturing plant on this land; the plant will cost $13.2 million to build. The following market data on DEI’s securities are current:Debt:12,000 6.5 percent coupon bonds outstanding, 15 years to maturity, selling for 92 percent of par; the bonds have a $1,000 par value each and make semiannual payments.Common stock:252,000 shares outstanding, selling for $73 per share; the beta is 1.3.Preferred stock:16,000 shares of 5 percent preferred stock outstanding, selling for $60 per share.Market:7.5 percent expected market risk premium; 4 percent risk-free rate.DEI uses G. M. Wharton as its lead underwriter. Wharton charges DEI spreads of 8.5 percent on new common stock issues, 6 percent on new preferred stock issues, and 3.5 percent on new debt issues. Wharton has included all direct and indirect issuance costs (along with its profit) in setting these spreads. Wharton has recommended to DEI that it raise the funds needed to build the plant by issuing new shares of common stock. DEI’s tax rate is 33 percent. The project requires $660,000 in initial net working capital investment to get operational. Note: Assume that the initial net working capital does not require flotation costs. Also note that the firm wishes to maintain a constant capital structure.Required:(a)The project’s initial Time 0 cash flow is $ , taking into account all side effects. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places, e.g. 32.16.)(b)The new RDS is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas. Management has told you to use an adjustment factor of +2 percent to account for this increased riskiness. The appropriate discount rate to use when evaluating DEI’s project is percent. (Do not include the percent sign (%). Round your answer to 2 decimal places, e.g. 32.16.)(c)The manufacturing plant has a 8-year tax life, and DEI uses straight-line depreciation. At the end of the project (i.e., the end of Year 5), the plant can be scrapped for $4.2 million. The aftertax salvage value of this manufacturing plant is $ . (Round your answer to 2 decimal places, e.g. 32.16.)(d)The company will incur $359,000 in annual fixed costs. The plan is to manufacture 9,000 RDSs per year and sell them at $8,000 per machine; the variable production costs are $7,000 per RDS. The annual operating cash flow, OCF, from this project is $ . (Round your answer to 2 decimal places, e.g. 32.16.)(e)DEI’s comptroller is primarily interested in the impact of DEI’s investments on the bottom line of reported accounting statements. The accounting break-even quantity of RDSs sold for this project is units. (Round your answer to the nearest whole number, e.g. 32.)(f)Finally, DEI’s president wants you to throw all of your calculations, assumptions, and everything else into the report for the chief financial officer; all he wants to know is what the RDS project’s internal rate of return, IRR, and net present value, NPV, are. You will report that the IRR is percent (Do not include the percent sign (%). Round your answer to 2 decimal places, e.g. 32.16) and NPV is $ (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places, e.g. 32.16.).

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Accounting

(TCO B) Which of the following is true of qualitative research? (Points : 6) It is a structured measurement approach that permits a range of possible responses. It is indirect in nature, so consumers may be less guarded. It requires large sample sizes. Its results can be easily generalized to broader populations. It generally results in similar results and conclusions across researchers. 6. (TCO B) Any occasion on which a customer encounters the brand and productfrom actual experience to personal or mass communications to casual observation is a customer ________ . (Points : 6) touch point point of order point of difference pivot point point of parity 7. (TCO C) ________ constitutes the relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior. (Points : 6) a culture a subculture a social class a family a group 8. (TCO C) In the consumer buying decision process, A consumer who uses Google to find comparative reports on new automobiles, is most likely using which of the following information sources for assistance? (Points : 6) personal public experiential commercial under-the-radar 9. (TCO C) Marriott Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation. (Points : 6) demographic behavioral psychographic geographic cultural 10. (TCO C) The science of using psychology and demographics to better understand consumers is defined as____________. (Points

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Accounting!!

Olympic inc had the following positive and negative cash flows during the current yearPositive Cash Flows:Recieved from Customers – $240,000Interest & Dividends – $50,000Sale of plant assets – $330,000Negative Cash FlowsPaid to suppliers and employees – $127,000Purchase of Investments – $45,000Purchase of treasury stock – $36,000Determine the amount of cash used for or provided by for operating activities by the direct method.

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Accounting!!!!!!!!!!!!

1. Firm A has $10,000 in assets entirely financedwith equity. Firm B also has $10,000 in assets, but these assets are financed by $5,000 in debt (with a 10 percent rate of interest) and $5,000 inequity. Both firms sell 10,000 units of output at $2. 50 per unit. Thevariable costs of production are $1, and fixed production costs are $12,000. (Toease the calculation, assume no income tax. )a. What is the operating income (EBIT) forboth firms?b. What are the earnings after interest?c. If sales increase by 10 percent to 11,000 units, by what percentage will each firm s earnings after interest increase? To answer the question, determine the earnings after taxes and compute thepercentage increase in these earnings from the answers you derived in part b. d. Why are the percentage changes different?

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Accounting

#1: The accounting standards and concepts used in the preparation of the financial statements are the:Generally Authorized Accounting Procedures. Generally Applied Accounting Procedures. Generally Authorized Auditing Practices. Generally Accepted Accounting Principles#2: The accounting equation is:Revenue – Expense = LiabilitiesAssets = Liabilities + EquityAssets = Liabilities EquityAssets + Liabilities = Equity#3: The Income Statement shows:Assets = Liabilities + EquityIncome minus expense = net incomeBeginning retained earnings plus net income minus dividends = ending retained earningsBeginning retained earnings minus net income minus dividends = ending retained earnings#4: The Statement of Retained earnings shows:Assets = Liabilities + EquityIncome minus expense = net incomeBeginning retained earnings minus net income minus dividends = ending retained earningsBeginning retained earnings plus net income minus dividends = ending retained earnings#5: Retained Earnings represents:The total cash retained by the businessThe total assets retained by the businessThe net income retained by the businessThe dividends retained by the business#6: Which of the following is not one of the four financial statements?Income Tax StatementBalance SheetIncome StatementStatement of Retained EarningsStatement of Cash Flow#7: Which of the following is true regarding the income statement?The income statement shows revenue minus expense equals net incomeThe income statement reports revenues, expenses, and liabilitiesThe income statement only reports revenue for which cash was received at the point of saleThe income statement reports the financial position of a business at a particular point in time#8: Which of the following is false regarding the balance sheet?The accounts shown on a balance sheet represent the basic accounting equation of assets equals liabilities plus equity. The retained earnings balance shown on the balance sheet must agree to the ending retained earnings balance shown on the statement of retained earnings. The balance sheet summarizes the net changes in specific account balances over a period of time. The balance sheet reports the amount of assets, liabilities, and stockholders equity of a business at a point in time. #9: Which of the following regarding retained earnings is false?Retained earnings is increased by net income. Retained earnings is a component of stockholders equity on the balance sheet. In this course we will be talking about two equity accounts. Common Stock represents the amount of money you invested in the business. Retained earnings is an asset on the balance sheet. Retained earnings represents earnings that were not distributed to stockholders in the form of dividends.

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ACCOUNTING

ACCOUNTING

ACCOUNTING

Lou Hoskins and Shirley Crothers are organizing Red Lodge Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada. Lou and Shirley tentatively plan to request authorization for 400,000,000 shares of common stock to be sold to the general public. Lou and Shirley have decided to establish par of $0.03 oer share in order to appeal to a wide variety of potential investors. Lou and Shirley feel that investors would be more willing to invest in the company if they received a large quantity of shares for what might appear to be a âbargainâ price.

Discuss whether Lou and Shirley are behaving in a professional manner.

ACCOUNTING

ACCOUNTING

Lou Hoskins and Shirley Crothers are organizing Red Lodge Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada. Lou and Shirley tentatively plan to request authorization for 400,000,000 shares of common stock to be sold to the general public. Lou and Shirley have decided to establish par of $0.03 oer share in order to appeal to a wide variety of potential investors. Lou and Shirley feel that investors would be more willing to invest in the company if they received a large quantity of shares for what might appear to be a âbargainâ price.

Discuss whether Lou and Shirley are behaving in a professional manner.