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If in evaluating a proposal by use of the net present value method there is a deficiency of the present value of future cash inflows over the amount to be invested, the proposal should be rejected. Answer: When no-par stock […]

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet A.is the amount of net income or loss B.indicates there is an error on the work sheet C.is the […]

Services provided on account is recorded in the revenue journal. Answer: For years one through five, a proposed expenditure of $500,000 for a fixed asset with a 5-year life has expected net income of $40,000, $35,000, $25,000, $25,000, and $25,000, […]

The management of Dakota Corporation is considering the purchase of a new machine costing $420,000. The company’s desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are […]

At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows: Job 765 produced 152 units, and Job 766 consisted of 250 units. Assuming that the […]

Capital expenditures are costs of acquiring, constructing, adding, or replacing property, plant and equipment. Answer: A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory. Answer: […]

Assets, liabilities, and owner’s capital are real accounts and do not get closed at the end of the period. Answer: The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings. […]

In a partnership liquidation, gains and losses on the sale of partnership assets are divided among the partners’ capital accounts on the basis of their capital balances. Answer: The customers subsidiary ledger is controlled by the general ledger account entitled […]

A variable cost system is an accounting system where standards are set for each manufacturing cost element. Answer: The three inventory costing methods will normally each yield different amounts of net income. Answer: TRUE A firm selling food should have […]

The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset. Answer: Average rate of return equals average investment divided by estimated average annual […]

A formal written statement of management’s plans for the future, expressed in financial terms, is called a budget. Answer: Bonds may be purchased directly from the issuing corporation or through one of the bond exchanges. Answer: TRUE The fixed cost […]

Real accounts are not permanent accounts. Answer: When a company establishes an outstanding reputation and has a competitive advantage because of it, the company should record goodwill on its financial statements. Answer: FALSE The post reference notation used in the […]

As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March of 2012 were as follows: $120,000, $140,000 and $150,000. 20% of each month’s sales are for cash. […]

The methods of evaluating capital investment proposals can be separated into two general groups–present value methods and: A.past value methods B.straight-line methods C.reducing value methods D.methods that ignore present value Answer: Zach Company owns 45% of the voting stock of […]

Cost plus methods determine the normal selling price by estimating a cost amount per unit and adding a markup. Answer: Variable costs as a percentage of sales are equal to 100% minus the contribution margin ratio. Answer: TRUE The total […]

When no-par common stock with a stated value is issued for cash, the common stock account is credited for an amount equal to the cash proceeds. Answer: If a promissory note is dishonored, the payee should still record interest revenue. […]

If the straight-line method of amortization is used, the amount of unamortized premium on bonds payable will decrease as the bonds approach maturity. Answer: It is not possible for one company to influence the operating policies of another company unless […]

Use the following information to answer the following questions. Assuming no employees are subject to ceilings for their earnings, Jensen Company has the following information for the pay period of January 15 – 31, 20xx. Salaries Payable would be recorded […]

During the closing process, some balance sheet accounts are closed and end the period with a zero balance. Answer: The present value of the periodic bond interest payments is the value today of the amount of interest to be received […]

Net income was $51,000 for the year. The accumulated depreciation balance increased by $14,000 over the year. There were no sales of fixed assets or changes in noncash current assets or liabilities. Under the indirect method, the cash flow from […]

Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 97.5, what is the amount of gain or loss on redemption? A.$10,000 loss B.$25,000 loss […]

Materials are transferred from the storeroom to the factory in response to materials requisitions. Answer: In the liquidating process, any uncollected cash becomes a loss to the partnership and is divided among the remaining partners’ capital balances based on their […]

The natural business year A.is a fiscal year that ends when business activities are at its lowest point. B.is a calendar year that ends when business activities are at its lowest point. C.is a fiscal year that ends when business […]

A manufacturer may employ a job order cost system for some of its products and a process cost system for others. Answer: Changes in technology, machinery, or production methods may make past cost data irrelevant when setting standards. Answer: TRUE […]

A stock split results in a transfer at market value from retained earnings to paid-in capital. Answer: Journalizing and posting the adjustments and closing entries updates the ledger for the new accounting period. Answer: TRUE When the allowance method for […]

Horizontal analysis of comparative financial statements includes the A.development of common size statements. B.calculation of liquidity ratios. C.calculation of dollar amount changes and percentage changes from the previous to the current year. D.the evaluation of each component in a financial […]

When a process cost accounting system records the purchase of materials, the Materials account is credited. Answer: One of the two internal control procedures over inventory is to properly report inventory on the financial statements. Answer: TRUE Cost behavior refers […]

Which of the following expressions is termed the investment turnover factor as used in determining the rate of return on investment? A.Invested Assets/Sales B.Income From Operations/Invested Assets C.Income From Operations/Sales D.Sales/Invested Assets Answer: The finished goods account is the controlling […]

(Xoa dong nay de nhap cau hoi) Answer: Manufacturers use labor, plant, and equipment to convert direct materials into finished products. Answer: TRUE At the end of the fiscal period, prepaid expenses are reported on the income statement as expenses. […]

An exchange is said to have commercial substance if future cash flows remain the same as a result of the exchange. Answer: When a partner withdraws from the partnership, the partnership dissolves. Answer: TRUE The process of measuring and reporting […]

Project A requires an original investment of $50,000. The project will yield cash flows of $15,000 per year for seven years. Project B has a calculated net present value of $13,500 over a four year life. Project A could be […]

Clifford Moore is starting his computer programming business and has deposited in initial investment of $15,000 into the business cash account. Identify how the accounting equation will be affected. A.Increase Assets (Cash) and increase Liabilities (Accounts Payable) B.Increase Assets (Cash) […]

When a borrower receives the face amount of a discounted note less discount, this amount is known as: A.the note proceeds B.the note discount C.the note deferred interest D.the note principal Answer: Earnings per share A.is the net income per […]

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

Internal controls for cash payments also apply to payrolls. Answer: The primary disadvantage of decentralized operations is that decisions made by one manager may affect other managers in such a way that the profitability of the entire company may suffer. […]

If employees accept a wage contract that increases the unit contribution margin, the break-even point will decrease. Answer: When a partnership dissolves, a new partnership is formed and a new partnership agreement should be prepared. Answer: TRUE Debiting the cash […]

Discontinuing a segment or product may not be the best choice when the segment is contributing to fixed expenses. Answer: Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables. Answer: TRUE […]

APPENDIX B REVERSING ENTRIES Ex. B–1 a. (1) Sales Salaries Expense……………………………………… 7,050 Salaries Payable…………………………………………… 7,050 Accrued salaries ($11,750 ÷ 5 days = $2,350; $2,350 × 3 days). (2) Accounts Receivable ………………………………………… 51,300 Fees Earned…………………………………………………. 51,300 Accrued fees earned. b. (1) […]

D-1 APPENDIX D INTERNATIONAL FINANCIAL REPORTING STANDARDS DISCUSSION QUESTIONS 1. In recent years, the removal of trade barriers and the growth in cross-border equity and debt issu- ances have led to a dramatic increase in interna– tional commerce. As a […]

1 chapter 1 Introduction to Accounting and Business _____________________________________________ OPENING COMMENTS For many students, Chapter 1 of Accounting is their first taste of the business or accounting disciplines. The teaching challenge is to get students to understand and accept the […]

Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. In part 2, place a plus sign or minus sign in the small box beside the amount. Row (a) has been completed as an […]

Score: Key Code: An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. Fees earned Expenses: Total expenses Exercise 1-19 Name: Section: EXPLORATION SERVICES Income Statement Answers are entered in the cells with […]

Problem 1-5A # Incorrect N-box and B-box entries COUNTIF(B7:AT41,”~*”) Name: 0 Section: # N-box Incorrects due to blanks COUNTIF(B7:AT41,” “) 0 # N-box +B-box corrects COUNTIF(B7:AT41,” “) 0 Key Code: 2 Total SUM(AV13:AV15) Instructions 0 Answers are entered in the […]

1. Some users of accounting information include managers, employees, investors, creditors, customers, and the government. 2. The role of accounting is to provide information for managers to use in operating the business. 3. The corporate form allows the company to […]

Score: Key Code: An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. Lori Izzo, capital, November 1, 2014 Lori Izzo, capital, November 30, 2014 0% 2 Instructions INFRA-SYSTEMS COMPANY Statement of Owner’s […]

Score: Key Code: An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. a. Assets Liabilities Owner’s Equity Total liabilities and Total assets owner’s equity Assets Liabilities Owner’s Equity Total liabilities and Total […]

12 Chapter 1 Introduction to Accounting and Business A discussion of the “six different categories of accounts” (Assets, Liabilities, Capital, Drawing, Revenue, and Expenses) may be beneficial at this time. Letting the students know that Capital and Revenue increase Owner’s […]

CHAPTER 1 Introduction to Accounting and Business Prob. 1–3A (Concluded) 4. (Optional) Cash flows from operating activities: RELIANCE FINANCIAL SERVICES Statement of Cash Flows For the Month Ended July 31, 2014 1-21 © 2014 Cengage Learning. All Rights Reserved. May […]

1. Depreciation Book Value, Year Expense End of Year a. 1……………………………………………… … $142,000 $658,000 2……………………………………………… … 142,000 516,000 3……………………………………………… … 142,000 374,000 4……………………………………………… … 142,000 232,000 5……………………………………………… … 142,000 90,000 *[($800,000 – $90,000) ÷ 5] 710,000 284,000 426,000 568,000 b. […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Accumulated Depreciation Depreciation, Book Value, Year Expense End of Year End of Year Original cost 800,000$ 1 2 3 4 5 Calculation: (Cost – Residual Value) […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Straight- Units of Double-Declining- Year Line Production Balance 2012 2013 2014 2015 Totals Calculations: Straight-line method: For full year: (Cost – Residual Value) / Years […]

3. Journalize entries for the disposal of fixed assets. 5. Describe the accounting for intangible assets, such as patents, copyrights, and goodwill. 163 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to […]

4. Capital expenditures include the cost of acquiring fixed assets and the cost of improving an asset. These costs are recorded by increasing (debiting) a fixed asset account. Capital expenditures also include the costs of extraordinary repairs, which are recorded […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. b. c. Straight- Units of Double-Declining- Year Line Production Balance 2013 2014 2015 2016 Totals Calculations: Straight-line method: (Cost – Residual Value) / Years =Yearly Depreciation […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Accumulated Depreciation Depreciation, Book Value, Year Expense End of Year End of Year Original cost 110,000$ 1 2 3 4 Calculation: (Cost – Residual Value) / […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. b. c. Straight- Units of Double-Declining- Year Line Production Balance 2012 2013 2014 Totals Calculations: Straight-line method: (Cost – Residual Value) / Years =Yearly Depreciation Units-of-production […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Straight- Units of Double-Declining- Year Line Output Balance 2012 2013 2014 2015 Totals Calculations: Straight-line method: For full year: (Cost – Residual Value) / Years […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Gross Federal Income Social Security Medicare Employee Earnings Tax Withheld Tax Withheld Tax Withheld Addai Kasay McGahee Moss Stewart Tolbert Wells Totals 2. a. Social security tax […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Gross Federal Income Social Security Medicare Employee Earnings Tax Withheld Tax Withheld Tax Withheld Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Totals 2. a. Social security tax […]

CHAPTER 11 Current Liabilities and Payroll Prob. 11–3A 1. Gross Federal Income Social Security Medicare Earnings Tax Withheld Tax Withheld Tax Withheld Arnett………………… $ 8,250.00 $ 1,512.00 $ 495.00 $ 123.75 2. a. Social security tax paid by employer…………………………………………… $19,780.80 […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Social Federal U.S. Sales Office Total Security Medicare Income Savings Net Ck. Salaries Salaries Name Hours Regular […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Social Federal U.S. Sales Office Total Security Medicare Income Savings Net Ck. Salaries Salaries Name Hours Regular […]

1. No. A discounted note payable has no stated interest rate, but provides interest by discounting the 2. a. Employee’s federal income taxes, social security, and Medicare b. Employees Federal Income Tax Payable, Social Security Tax Payable, and Medicare Tax […]

3. Describe payroll accounting systems that use a payroll register, employee earnings records, and a general journal. 5. Describe the accounting treatment for contingent liabilities and journalize entries for product warranties. 183 © 2014 Cengage Learning. All Rights Reserved. May […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. (1) (2) b. Angel Emma Alvarez Allison Total Capital, January 1, 2014 Additional investment during the year […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Dennis Ben Randy Total Overton, Testerman, Campbell, Partnership Capital Capital Capital Capital Partnership capital, January 1, 2014 Admission […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Apr. 1 1 2. Current assets: Cash Accounts receivable Less allowance for doubtful accounts Merchandise inventory Total […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. a. Noncash Sails Welch Greenberg Cash +Assets =Liabilities +(2/5) +(2/5) +(1/5) Balances before realization Sale of assets […]

3. Describe and illustrate the accounting for partner admission and withdrawal. 5. Prepare the statement of partnership equity. 197 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, […]

1. a. Proprietorship: Ease of formation and nontaxable entity. 2. The disadvantages of a partnership are that its life is limited, each partner has unlimited liability, one partner can bind the partnership to contracts, and raising large amounts of capital […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Noncash Fairchild Lowes Howard Cash +Assets =Liabilities +(25%) +(25%) +(50%) […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Professional fees Operating expenses: Salary expense Depreciation expense – building Property tax expense Heating and lighting expense Supplies expense Depreciation expense – office equipment Miscellaneous expense Total […]

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies Ex. 12–19 a. Cash balance……………………………………………… … $19,000 Ex. 12–20 Oliver Ansari Total Capital balances before realization……… … $28,000 $35,000 $63,000 Division of gain on realization [($67,000 – $63,000) ÷ 2]…………………… … […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. a. Noncash Lester Torres Hearst Cash +Assets =Liabilities +(2/5) +(2/5) +(1/5) […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Mar. 1 1 2. Current assets: Cash Accounts receivable Less allowance for doubtful accounts Merchandise inventory Total […]

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies Prob. 12–6A (Concluded) 1. b. Noncash Sails Welch Greenberg Cash Assets Liabilities (2/5) (2/5) (1/5) Balances before realization $32,000 $128,000 $20,000 $58,000 $72,000 $10,000 Sale of assets and division of loss […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. a. Noncash Chapelle Rock Pryor Cash +Assets =Liabilities +(1/5) +(2/5) +(2/5) Balances before realization Sale of assets […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Noncash Gerloff Chu Jewett Cash +Assets =Liabilities +(50%) +(25%) +(25%) […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Professional fees Operating expenses: Salary expense Depreciation expense – building Heating and lighting expense Depreciation expense – office equipment Property tax expense Supplies expense Miscellaneous expense Total […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Noncash Gold Porter Sims Cash +Assets =Liabilities +(3/6) +(2/6) +(1/6) Balances before realization Sale of assets and division […]

2. The broker is not correct. Corporations are not legally liable to pay dividends until the dividends are declared. If the company that issued the preferred stock has operating losses, it could omit dividends, first, on its common stock and, […]

215 chapter 13 Corporations: Organization, Stock Transactions, and Dividends ______________________________________________ OPENING COMMENTS This chapter explains the characteristics of a corporation. It also introduces many of the terms related to stock: common, preferred, par value, stated value, no-par, cumulative, and noncumulative. […]

Chapter 13 Corporations: Organization, Stock Transactions, and Dividends 227 Cash Dividends Stock Dividends Bal. 12,000 Bal. 8,000 Clos. 12,000 Clos. 8,000 OBJECTIVE 5 Describe and illustrate the accounting for treasury stock transactions. KEY TERMS Treasury Stock SUGGESTED APPROACH The term […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Total Year Dividends Total Per Share Total Per Share 2009 2010 2011 2012 2013 […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Total Year Dividends Total Per Share Total Per Share 2009 2010 2011 2012 2013 […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. In T accounts, only final balances will be graded. Enter a zero for the final balance if appropriate. 1., 2. Jan. 1 Bal. Jan. 1 […]

CHAPTER 13 Corporations: Organization, Stock Transactions, and Dividends Prob. 13–4B 1. and 2. Jan. 1 Bal. 3,100,000 Apr. 13 1,000,000 Jan. 1 Bal. 1,240,000 Apr. 13 600,000 June 14 61,500 Dec. 31 Bal. 1,901,500 Dec. 31 248,068 Jan. 1 Bal. […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. In T accounts, only final balances will be graded. Enter a zero for the final balance if appropriate. 1., 2. Jan. 1 Bal. Jan. 1 […]

CHAPTER 13 Corporations: Organization, Stock Transactions, and Dividends Ex. 13–25 a. OfficeMax: b. Staples’ net income of $881,948,000 is much greater than OfficeMax’s net income of $71,155,0000. This is because Staples is a much larger business than OfficeMax. Staples also […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Common Pd.-In Cap. Stock in Excess Treasury Retained $40 par of Par Stock Earnings Total Balance, Jan. 1, […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Plan 1 Plan 2 Plan 3 Earnings before bond interest […]

CHAPTER 14 Long-Term Liabilities: Bonds and Notes Prob. 14–1A 1. Plan 1 Plan 2 Plan 3 Earnings before interest and income tax… … $2,100,000 $2,100,000 $2,100,000 2. Plan 1 Plan 2 Plan 3 Earnings before interest and income tax… … […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Plan 1 Plan 2 Plan 3 Earnings before bond interest […]

239 chapter 14 Long-Term Liabilities: Bonds and Notes ______________________________________________ OPENING COMMENTS The subject of long-term liabilities and bonds is a challenge for most students. This chapter requires students to apply difficult concepts that most of them have not encountered before. […]

2. a. Bonds that may be exchanged for other securities under specified conditions. b. The issuing corporation reserves the right to redeem the bonds before the maturity date. c. Bonds issued on the basis of the general credit of the […]

250 Chapter 14 Long-Term Liabilities: Bonds and Notes OBJECTIVE 6 Describe and illustrate how the number of times interest charges are earned is used to evaluate a company’s financial condition. KEY TERMS Number of Times Interest Charges Are Earned SUGGESTED […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. 1. 2014 July 1 Oct. 1 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2015 June 30 Sept. 30 Dec. 31 Dec. 31 Dec. 31 […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Earnings before bond interest and income tax 15,000,000$ 17,500,000$ 20,000,000$ Bond interest Balance Income tax Net income Dividends on preferred stock Earnings available for common […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. 1. 2014 July 1 Oct. 1 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2015 June 30 Sept. 30 Dec. 31 Dec. 31 Dec. 31 […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 Feb. 14 April 1 June 1 June 27 Dec. 31 Fair Value Cost (Dec 31, 2014) […]

3. Describe and illustrate the accounting for equity investments. 5. Describe fair value accounting and its implications for the future. 261 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly […]

An asterisk (*) will appear to the right of an incorrect entry. For items a – c and h, complete the table below to determine the amounts. Enter items d – g and i as formulas. a. Available-for-sale investments at […]

CHAPTER 15 Investments and Fair Value Accounting Prob. 15–3B 1. 18 Investments—Malmo Inc.* 360,000 Cash 360,000 *9,000 shares × $40 per share 2014 Jan. 15-36 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. a. 2014 Jan. 1 July 2 Dec. 31 b. Initial acquisition cost Equity earnings for 2014 Cash dividends received Investment in Hi Energy Co. stock […]

CHAPTER 15 Investments and Fair Value Accounting Ex. 15–25 Ex. 15–26 a. Year 1: Dividend Yield = $0.52 ÷ $30.48 = 1.71% Year 2: Dividend Yield = $0.52 ÷ $27.91 = 1.86% b. Dividends per share remained constant from Year […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 Jan. 18 July 22 Oct. 5 Dec. 18 Dec. 31 2015 Jan. 25 July 16 Dec. […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 Feb. 1 Mar. 18 Sept. 12 Oct. 28 Dec. 31 2015 Jan. 23 Mar. 16 Sept. […]

1. A company may temporarily have excess cash that is not needed for use in its current operations. Instead of letting excess cash remain idle in a checking account, most companies 2. A gain or loss can occur when the […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. 2014 Dec. 31 Fair Value Cost (Dec 31, 2014) Arden Enterprises, Inc. French Broad Industries, Inc. Pisgah […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. 2014 Dec. 31 Fair Value Cost (Dec 31, 2014) Dust Devil, Inc. Gale Co. Whirlwind Co. Total […]

An asterisk (*) will appear to the right of an incorrect entry. For items a – c and h, complete the table below to determine the amounts. Enter items d – g and i as formulas. a. Available-for-sale investments (at […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 Mar. 14 April 24 June 1 June 30 Dec. 31 Fair Value Cost (Dec 31, 2014) […]

Problem 16-1B Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

CHAPTER 16 Statement of Cash Flows Prob. 16–2B (Concluded) Balance Balance Account Title Dec. 31, 2013 Dec. 31, 2014 Operating activities: Increase in accounts receivable (o) 73,080 Decrease in inventories (n) 134,680 Increase in prepaid expenses (m) 6,440 Decrease in […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

Exercise 16-17 Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Net income Adjustments to reconcile net income to […]

Problem 16-2B Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

CHAPTER 16 Statement of Cash Flows Prob. 16–1A (Concluded) (Optional) Balance Balance Account Title Dec. 31, 2013 Dec. 31, 2014 Cash 439,440 (m) 29,880 469,320 Accrued expenses payable (39,480) (e) 7,800 (31,680) Dividends payable (14,400) (d) 3,600 (18,000) Common stock, […]

Problem 16-3A Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

Exercise 16-16 Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Net income Adjustments to reconcile net income to […]

Problem 16-2A Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

Problem 16-3B Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

3. Prepare a statement of cash flows, using the direct method. 277 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. chapter 16 […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

2. It focuses on the differences between net income and cash flows from operating activities, and the data needed are generally more readily available and less costly to obtain than is the case for the direct method. 3. In a […]

Problem 16-1A Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

3. Use financial statement analysis to assess the profitability of a business. 293 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. chapter […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. 2014 2013 Amount Amount Amount Percent Sales 840,000$ 600,000$ Cost of goods sold 724,500 525,000 Gross profit 115,500$ 75,000$ Selling […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Amount Percent Amount Percent Sales 1,325,000$ 1,200,000$ Sales returns and allowances 25,000 20,000 Net sales 1,300,000$ 1,180,000$ Cost of goods […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Working Capital = Current Assets –Current Liabilities = Working Capital = b. Current Assets Current Liabilities Current Ratio = Quick Assets Current Liabilities Quick Ratio = […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Amount Percent Amount Percent Sales 922,500$ 820,000$ Sales returns and allowances 22,500 20,000 Net sales 900,000$ 800,000$ Cost of goods […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 2013 Amount Amount Amount Percent Sales 936,000$ 720,000$ Sales returns and allowances 26,000 20,000 Net sales 910,000$ 700,000$ Cost […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Revenues: Admissions 139,125$ 163,087$ Event-related revenue 156,691 178,805 NASCAR broadcasting revenue 178,722 173,803 Other operating revenue 27,705 34,827 Total revenue […]

An asterisk (*) will appear to the right of an incorrect entry. Amount Percent Amount Percent Current assets Property, plant, and equipment Intangible assets Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equity Score: Key […]

An asterisk (*) will appear to the right of an incorrect entry. Current Assets – Current Liabilities = Calculated Value 1. Working capital: Ratio Numerator ÷ Denominator = Calculated Value 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 2013 Amount Amount Amount Percent Sales 1,092,500$ 950,000$ Sales returns and allowances 57,500 50,000 Net sales 1,035,000$ 900,000$ Cost […]

CHAPTER 17 Financial Statement Analysis Ex. 17–14 c. Both companies carry a moderate proportion of debt to the stockholders’ equity, with Hasbro carrying slightly more debt than Mattel (1.5 and 1.1 times stockholders’ Mattel, Inc.: = $2,789,149 $2,628,584 1.1 Hasbro: […]

1. Horizontal analysis is the percentage analysis of increases and decreases in corresponding statements. The percent change in the cash balances at the end of the preceding year from the 2. Comparative statements provide information as to changes between dates […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Working Capital = Current Assets –Current Liabilities = Working Capital = b. Current Assets Current Liabilities Current Ratio = Quick Assets Current Liabilities Quick Ratio = […]

CHAPTER 17 Financial Statement Analysis Prob. 17–1B 1. 2014 2013 Amount Percent Sales $936,000 $720,000 $216,000 30.0% Sales returns and allowances 26,000 20,000 6,000 30.0% 2. The profitability has significantly improved from 2013 to 2014. Net sales have increased by […]

An asterisk (*) will appear to the right of an incorrect entry. Current Assets – Current Liabilities = Calculated Value 1. Working capital: Ratio Numerator ÷ Denominator = Calculated Value 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover […]

1. Financial accounting and managerial accounting are different in several ways. Financial accounting information is reported in statements that are useful to persons or groups outside of a company. These statements objectively report the results of past operations for fixed […]

CHAPTER 18 Managerial Accounting Concepts and Principles Prob. 18–5A (Concluded) 2. Sales $2,574,000 Cost of goods sold: Finished goods inventory, January 1, 2014 $ 507,000 Cost of goods manufactured 1,262,816 THE LUCILLE CORPORATION Income Statement For the Year Ended December […]

An asterisk (*) will appear to the right of an incorrect entry. a. Work in process inventory, May 1, 2014 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred […]

3. Describe and illustrate the following statements for a manufacturing business: 1. balance sheet, 2. statement of cost of goods manufactured, 3. income statement. 1 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Prius Company Volt Company Materials inventory, December 1 280,280$ 177,000$ Materials inventory, December 31 (a) 180,000 Materials purchased 712,800 342,000 Cost of direct materials used in production […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Work in process inventory, January 1, 2014 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred […]

An asterisk (*) will appear to the right of an incorrect entry. 1. On Company Off Company Materials inventory, December 1 65,800$ 195,300$ Materials inventory, December 31 (a) 91,140 Materials purchased 282,800 (a) Cost of direct materials used in production […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Work in process inventory, January 1, 2014 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Gross profit Selling expenses: Total selling expenses Administrative expenses: Total operating expenses Income from operations Cost of goods sold supporting calculation: Manufacturing cost per unit (knife): […]

1. a. Job order cost system and process cost system. 2. Job order costing is used by firms that sell custom goods and services to customers. The job order system is frequently associated with firms that will produce a product […]

An asterisk (*) will appear to the right of an incorrect entry. a. Revenues Gross profit Income from operations b. Materials inventory: Purchased materials Less: Materials used in production Materials inventory Work in process inventory: Materials used in production Direct […]

An asterisk (*) will appear to the right of an incorrect entry. 1. 2. Debit Credit a. Bal. Bal. b. 3. Schedule of unfinished jobs: Direct Direct Factory c. Materials Labor Overhead Total No. 204 No. 206 d. Balance of […]

CHAPTER 19 Job Order Costing Prob. 19–2A 1. a. Materials 39,300 Accounts Payable b. Work in Process 66,380 Factory Overhead 6,940 Materials Computation of cost of jobs finished: Direct Direct Factory Job Materials Labor Overhead Total No. 201… … $3,950 […]

An asterisk (*) will appear to the right of an incorrect entry. 1. 2. Debit Credit a. Bal. Bal. b. 3. Schedule of unfinished jobs: Direct Direct Factory c. Materials Labor Overhead Total No. 104 No. 106 d. Balance of […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Gross profit Selling expenses: Total selling expenses Income from operations Cost of goods sold supporting calculation: Manufacturing cost per unit: Direct materials: Leather Velvet (for interior) […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. and 2. Customer Date Address Date Wanted Date Completed Item Job No. Amount Amount Amount meters at hours at Total […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. and 2. Customer Date Address Date Wanted Date Completed Item Job No. Amount Amount Amount meters at hours at Total […]

3. Describe the use of job order cost information for decision making. 17 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. chapter […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Materials Receiving Requi- Report Unit -sition Number Quantity Price Number Quantity Unit Price Amount Date Quantity Unit Price Amount July […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Supporting calculations: June 1 Cost of Work in Direct Direct Factory Total Unit Units Goods Job. No. […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Supporting calculations: May 1 Cost of Work in Direct Direct Factory Total Unit Units Goods Job. No. […]

CHAPTER 2 Analyzing Transactions Prob. 2–2A 2-21 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1. (a) Cash 23,500 Alicia Masingale, Capital […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. An asterisk (*) will appear to the right of incorrect entries in outlined answer cells. For correct grading, enter a zero where you […]

CHAPTER 2 Analyzing Transactions Prob. 2–2B (Concluded) 3. Debit Credit Balances Balances Cash 20,150 4. a. $13,300 b. $8,750 ($3,000 + $2,800 + $1,500 + $1,050 + $400) c. $4,550 ($13,300 – $8,750) 5. $20,250, which is the initial investment […]

CHAPTER 2 Analyzing Transactions Continuing Problem (Continued) 2. and 3. Page 2 Post. Ref. Debit Credit 2014 July 16 Cash 11 2,000 Fees Earned 41 2,000 28 Wages Expense 50 1,200 Cash 11 1,200 29 Miscellaneous Expense 59 540 Cash […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. For correct grading, enter a zero “0″ in an amount answer cell you would otherwise leave blank. An asterisk (*) will appear to […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. In journal entries, dates will not be graded. In the general ledger accounts, only the final balance of the account will be graded. […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. In journal entries, dates will not be graded. In the general ledger accounts, only the final balance of the account will be graded. […]

19 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Also encourage your students to seek help immediately if they begin to struggle […]

1. An account is a form designed to record changes in a particular asset, liability, owner’s equity, 2. The terms debit and credit may signify either an increase or a decrease, depending upon the nature of the account. For example, […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. Only ending balances of T accounts […]

An asterisk (*) will appear to the right of an incorrect entry. a. and b. Equivalent Percent Units of Complete Whole Units Production Units to be accounted for: Beginning work in process Units started during the period Total Units to […]

1. Whole Direct UNITS Units Materials Conversion Units charged to production: Inventory in process, January 1 3,400 Received from Reaction Department 52,300 Total units accounted for by the Filling Department 55,700 Units to be assigned cost: Inventory in process, January […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. UNITS Whole Units Direct Materials Conversion Units charged to production: […]

1. a. An assembly-type industry using mass production methods, such as TV assembly, would use the process cost system because the products are somewhat standard and lose their identities as individual items. In such industries, it is neither practical nor […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. and 2. Date Item Debit Credit Debit Credit Apr. 1 […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. and 2. Date Item Debit Credit Debit Credit Sept. 1 […]

An asterisk (*) will appear to the right of an incorrect entry. UNITS Equivalent Units Whole Units of Production Units charged to production: Inventory in process, January 1 Received from Weaving Department Total units account for by the Cutting Department […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. (a) UNITS Whole Units Direct Materials Conversion Units charged to production: […]

CHAPTER 20 Process Cost Systems Ex. 20–15 a. $23,064; determined as follows: Beginning work in process balance……………………………………………… … $ 20,856 b. Cost of beginning work in process………………………………………………… $ 23,064 Cost of units started and completed during November*……………………… … 145,040 Cost […]

An asterisk (*) will appear to the right of an incorrect entry. UNITS Equivalent Units Whole Units of Production Units to account for during production: Inventory in process, December 1 Received from materials storeroom Total units account for by the […]

An asterisk (*) will appear to the right of an incorrect entry. The essay portion will not be graded. MEMO To: Production Manager The cost of production report was used to identify the cost per case for each of the […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. UNITS Whole Units Direct Materials Conversion Units charged to production: Inventory in process, October 1 Received from materials […]

An asterisk (*) will appear to the right of an incorrect entry. UNITS Equivalent Units Whole Units of Production Units to account for during production: Inventory in process, May 1 Received from Milling Department Total units account for by the […]

CHAPTER 20 Process Cost Systems Prob. 20–2A 1. Whole Direct UNITS Units Materials Conversion Units charged to production: Inventory in process, May 1 1,200 ABICA COFFEE COMPANY Cost of Production Report—Roasting Department For the Month Ended May 31, 2014 Equivalent […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. UNITS Whole Units Direct Materials Conversion Units charged to production: Inventory in process, May 1 Received from materials […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. UNITS Whole Units Direct Materials Conversion Units charged to production: […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Expenses: Selling expenses Sales salaries and commissions Advertising Travel Miscellaneous […]

An asterisk (*) will appear to the right of an incorrect entry. a. – – = million (rounded) accounts Supporting calculations: Revenue per account (in millions): Total revenue (in millions) Total accounts (in millions)  Revenue per account (in millions) […]

1. Variable Variable Total Cost Cost Percentage Cost Cost of goods sold……………… … $6,200,000 × 60% = $3,720,000 Selling expenses………………… … 3,400,000 ×75% = 2,550,000 Administrative expenses………… 1,550,000 × 60% = 930,000 Variable Fixed Total Cost Cost Cost Cost of […]

An asterisk (*) will appear to the right of an incorrect entry. a. Sales (420,000 units) Cost of goods sold: Unit Cost ×Units Cost of goods manufactured Less ending inventory Cost of goods sold Gross profit Selling and administrative expenses […]

An asterisk (*) will appear to the right of an incorrect entry. a. Sales (96,000 units) Variable cost of goods sold: Variable cost of goods manufactured Less ending inventory (24,000 units) Variable cost of goods sold Manufacturing margin Variable selling […]

An asterisk (*) will appear to the right of an incorrect entry. a. – – – – = Based on highest level: Total cost Units produced x Variable cost per unit Total variable cost Total fixed cost b. Based on […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Expenses: Selling expenses Sales salaries and commissions Advertising Travel Miscellaneous […]

CHAPTER 21 Cost Behavior and Cost-Volume-Profit Analysis Prob. 21–3B $1,100,000 $40 per unit Sales (units) = = 27,500 units $800,000 + $300,000 = $40 per unit 3. 4. Sales (32,000 × $150)…………………………… $4,800,000 Total fixed costs………………………………… $ 800,000 Total variable […]

1. The three major objectives of budgeting are (1) to establish specific goals for future 2. If goals set by the budgets are viewed as unrealistic or unachievable, employees and managers may become discouraged and may not be committed to […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 2014 2015 2016 2017 Building Equipment Information systems Total OMICRON INC. Capital Expenditures Budget For the Four Years […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. May June July Estimated cash receipts from: Cash sales Collections […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Unit Sales Unit Selling Total Product and Area Volume Price Sales Backyard Chef: Maine Vermont New Hampshire Total Master Chef: Maine Vermont New Hampshire Total Total revenue […]

An asterisk (*) will appear to the right of an incorrect entry. Total sales Variable cost: Sales commissions Advertising expense Miscellaneous selling expense Office supplies expense Miscellaneous administrative expense Total variable cost Fixed cost: Miscellaneous selling expense Office salaries expense […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries and commissions Advertising Miscellaneous […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Unit Sales Unit Selling Total Product Volume Price Sales Bird house Bird feeder Total revenue from sales 2. Bird Bird House Feeder Expected units to be sold […]

CHAPTER 22 Budgeting Ex. 22–19 October November December Receipts from cash sales: Cash sales (25% × current month’s sales) $14,500 $16,250 $18,000 September sales on account: OFFICEMART INC. Schedule of Collections from Sales For the Three Months Ending December 31, […]

An asterisk (*) will appear to the right of an incorrect entry. May June July Projected total monthly sales 126,000$ 145,000$ 162,000$ Receipts from cash sales: Cash sales May sales on account: Collected in May Collected in June Collected in […]

An asterisk (*) will appear to the right of an incorrect entry. January February March Budgeted expenses 117,000$ 136,400$ 150,200$ Payment of prior month’s expense:  Pay in January Pay in February Pay in March Payment of current month’s expense: […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Unit Sales Unit Selling Total Product Volume Price Sales Batting helmet Football helmet Total revenue from sales 2. Batting Football Helmet Helmet Expected units to be sold […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Budget Actual Sales Amount Percent Home Alert System: United States Europe Asia Business Alert System: United States Europe Asia 2. 2015 2014 Percentage Budgeted Actual Increase Units […]

An asterisk (*) will appear to the right of an incorrect entry. a. Unit Sales Unit Selling Total Volume Price Sales Model DL: East Region West Region Total Model XL: East Region West Region Total Total revenue from sales b. […]

An asterisk (*) will appear to the right of an incorrect entry. a. Dockers® 501 Jeans® Expected units to be sold Plus May 31 desired inventory Total units Less May 1 estimated inventory Total units to be produced b. Inseam […]

CHAPTER 22 Budgeting Prob. 22–2B 1. Unit Sales Unit Selling Volume Price Total Sales King: Northern Domestic 610 $780 $ 475,800 2. King Prince Expected units to be sold 1,310 1,480 Plus desired inventory, February 28, 2014 80 35 Total […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Unit Sales Unit Selling Total Product and Area Volume Price Sales King: Northern Domestic Southern Domestic International Total Prince: Northern Domestic Southern Domestic International Total Total revenue […]

An asterisk (*) will appear to the right of an incorrect entry. Variable factory overhead costs: Total variable factory overhead costs Fixed factory overhead costs: Total fixed factory overhead costs Total factory overhead costs Factory Overhead Cost Budget 0% Exercise […]

An asterisk (*) will appear to the right of an incorrect entry. The essay portion will not be graded. Enter a zero in cells you would otherwise leave blank. a. September October November December Estimated cash receipts from: Part-time job […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. June July August Estimated cash receipts from: Cash sales Collections […]

An asterisk (*) will appear to the right of an incorrect entry. Units of production Variable cost: Direct labor Direct materials Total variable cost Fixed cost: Supervisor salaries Depreciation Total fixed cost Total department cost Supporting calculations: Wages/Direct labor: Units […]

3. Describe the master budget for a manufacturing company. 63 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. chapter 22 Budgeting ______________________________________________ […]

An asterisk (*) will appear to the right of an incorrect entry. Rubber Steel Belts Total Pounds required for production: Passenger tires Truck tires Desired ending inventory Total (lbs.) Beginning inventory Total units (lbs.) to be purchased Unit price Total […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Budget Actual Sales Amount Percent 8″ x 10″ Frame: East Central West 12″ x 16″ Frame: East Central West 2. 2015 2014 Percentage Budgeted Actual Increase Units […]

An asterisk (*) will appear to the right of an incorrect entry. The essay portion will not be graded. a. January February March Units of production Wages Utilities Depreciation Total Supporting calculations: Wages: Units of production Hours per unit Total […]

An asterisk (*) will appear to the right of an incorrect entry. Finished goods inventory, P1 and P2, June 1 Work in process inventory, June 1 Direct materials: Direct materials (oil) inventory, June 1 Direct materials (oil) purchases Cost of […]

An asterisk (*) will appear to the right of an incorrect entry. Dough Tomato Cheese Total Units required for production: 12″ pizza 16″ pizza Desired ending inventory Total Beginning inventory Total units to be purchased Unit price Total direct materials […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries and commissions Advertising Miscellaneous […]

3. Compute and interpret direct materials and direct labor variances. 5. Journalize the entries for recording standards in the accounts and prepare an income statement that includes variances from standard. 77 © 2014 Cengage Learning. All Rights Reserved. May not […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Alternative Computation of Overhead Variances: a. Controllable variance: Actual variable factory overhead Standard variable factory overhead Actual costs […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Price variance: Actual price Standard price Variance Actual quantity  Direct materials price variance Quantity variance: Actual […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Productive capacity for the month: hours Actual productive capacity used for the month: hours Budget (at actual production) […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Normal capacity for the month: hours Actual production for the month: hours Budget (at actual production) Actual Favorable […]

CHAPTER 23 Performance Evaluation Using Variances from Standard Costs Ex. 23–15 a. Direct labor hours 9,000 10,000 11,000 b. Overhead applied at actual production: Actual hours………………………………………………………………………… … 9,000 × Overhead application rate*…………………………………………………… … $ 10.50 Factory overhead applied………………………………………………………… … $94,500 […]

PERFORMANCE EVALUATION USING VARIANCES 1. Standards are performance goals. Manufacturing companies normally use standard cost for each of the three following product costs: a. Direct materials 2. Reporting by the “principle of exceptions” is the reporting of only variances (or […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. a. Direct Materials Variance Cocoa Sugar Total Price variance: Actual price Standard price Variance Actual quantity (lbs.) Direct materials price […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Price variance: Actual price Standard price Variance Actual quantity  Direct materials price variance Quantity variance: Actual […]

Part A Total Cost = (Variable Cost per Unit × Units of Production) + Fixed Cost At the high point: At the low point: $740 = ($0.20 × 1,200 units) + Fixed Cost $600 = ($0.20 × 500 units) + […]

An asterisk (*) will appear to the right of an incorrect entry. a.  Manufacturing costs: Direct labor Direct materials Factory overhead Total b. (Favorable) Unfavorable Manufacturing costs:  Direct labor Direct materials Factory overhead Total c. 0% Exercise 23-3 […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Normal capacity for the month: hours Actual production for the month: hours Budget (at actual production) Actual Favorable […]

CHAPTER 23 Performance Evaluation Using Variances from Standard Costs Prob. 23–3A (Concluded) Actual costs 30,300 Applied costs 30,100 Alternative Computation of Overhead Variances Factory Overhead 23-41 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, […]

Problem 23-2B Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. […]

CHAPTER 24 Performance Evaluation for Decentralized Operations Prob. 24–1A 1. Over Under Budget Actual Budget Budget Customer service salaries $ 390,600 $ 500,040 $109,440 2. The customer service and marketing salaries are significantly over budget. The director should investigate the […]

1. In a centralized operation, all major planning and operating decisions are made by top management. In a decentralized operation, managers of separate divisions or units are delegated operating 2. The department manager of a profit center has responsibility for […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. The essay answer will not be graded. 1. Snack Retail Cereal Cake Bakeries Division Division Division […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. The essay answer will not be graded. 1. Mutual Electronic Investment Fund Brokerage Banking Division Division […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Budget Actual Over Budget Under Budget Customer service salaries Insurance […]

An asterisk (*) will appear to the right of an incorrect entry. Winter Summer Sports Sports Division Division Sales Cost of goods sold Gross profit Divisional expenses: Divisional selling expenses Divisional administrative expenses Total Income from operations before service department […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. The essay answer will not be graded. 1. Road Mountain Bike Bike Division Division Sales Cost […]

1. Describe the advantages and disadvantages of decentralized operations. 3. Prepare responsibility accounting reports for a profit center. 93 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Revenues Cost of goods sold Gross profit Operating expenses Income from operations before service department charges Less service department charges: Tech […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. The essay answer will not be graded. 1. Business Consumer Division Division Sales Cost of goods […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Budget Actual Over Budget Under Budget Sales salaries System administration […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. North South West Revenues Operating expenses Income from operations before service dept. charges Less service department charges: Dispatching Equipment management […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. 1. Rate of Return (ROI) on Investment = Profit Margin x Investment Turnover Sales Commercial Division: […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. 1. Rate of Return (ROI) on Investment = Profit Margin x Investment Turnover Sales Electronics Division: […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. East West Central Revenues Operating expenses Income from operations before service dept. charges Less service department charges: Customer support Legal […]

An asterisk (*) will appear to the right of an incorrect entry. Essay answers will not be graded. Enter a zero in cells you would otherwise leave blank. 1. 2. 3. Consumer Commercial Division Division Total Sales: 14,400 units  […]

An asterisk (*) will appear to the right of an incorrect entry. Essay answers will not be graded. Enter a zero in cells you would otherwise leave blank. 1. 2. 3. Semi- Navigational conductors Systems Total Sales: 2,240 units  […]

CHAPTER 24 Performance Evaluation for Decentralized Operations Prob. 24–3B 1. Sales Cereal Division: $720,000 $12,000,000 $12,000,000 $6,000,000 ROI = 6% × 2.0 ROI = 12.0% × Sales Income from Operations Sales = × ROI Invested Assets = Rate of Return […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Continue with Replace Old Machine Old Machine on Income (Alternative […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Production Setup Moving Shipping Prod. Engineering Total activity cost Divided by total activity base mh setups moves cust. orders test runs Activity rate 2. Activity Activity Activity […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Operate Invest Warehouse in Bonds on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Costs to […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Continue with Replace Old Machine Old Machine on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Sales […]

An asterisk (*) will appear to the right of an incorrect entry, or above and below in formulas. Enter a zero in cells you would otherwise leave blank. a. Reject Order Accept Order on Income (Alternative 1) (Alternative 2) (Alternative […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Promote Promote Moisturizer Perfume on Income (Alternative 1) (Alternative 2) […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Continue with Replace Old Machine Old Machine on Income (Alternative […]

1. a. Differential revenue is the amount of increase or decrease in revenue expected from a c. Differential income is the difference between differential revenue and differential cost. 2. The differential income and costs of the lease option should be […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Operate Invest Retail Store in Bonds on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Costs […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Promote Promote Tennis Shoe Walking Shoe on Income (Alternative 1) […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Layout Pages Purchase Internally Layout Services on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Salvage of […]

An asterisk (*) will appear to the right of an incorrect entry, or above and below in formulas. Enter a zero in cells you would otherwise leave blank. a. Sell Regular Columbian Into Decaf on Income (Alternative 1) (Alternative 2) […]

CHAPTER 25 Differential Analysis, Product Pricing, and Activity-Based Costing Prob. 25–6A 1. High Good Regular Grade Grade Grade Selling price…………………………………………… … $280 $270 $250 2. The contribution margin per unit may give false signals when an organization has production bottlenecks. […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Production Setup Inspection Shipping Cust. Serv. Total activity cost Divided by total activity base mh setups inspections cust. orders requests Activity rate 2. Activity Activity Activity Activity […]

3. Compute the relative profitability of products in bottleneck production processes. 107 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. chapter 25 […]

An asterisk (*) will appear to the right of an incorrect entry. a. Activity Activity Activity Activity Activity Activity Base Usage Rate =Cost Activity Base Usage Rate =Cost Fabrication mh mh Assembly dlh dlh Setup setups setups Inspecting insp. insp. […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Ethylene Butane Ester Selling price Variable conversion cost per unit Direct materials cost per unit Total cost per unit Contribution […]

CHAPTER 25 Differential Analysis, Product Pricing, and Activity-Based Costing Ex. 25–12 (Concluded) c. The price of Decaf Columbian would need to decrease to $11.50 per pound in order for the differential analysis to yield neither an advantage nor a disadvantage […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. High Good Regular Grade Grade Grade Selling price Variable conversion cost per unit Direct materials cost per unit Total cost […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Make Carrying Buy Carrying Case Case on Income (Alternative 1) (Alternative 2) (Alternative 2) Costs: Purchase price […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Continue Discontinue Cups Cups on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of […]

An asterisk (*) will appear to the right of an incorrect entry, or above and below formulas. The essay answer will not be graded. 1. a. Average annual rate of return for both projects:   1. b. Present Value […]

An asterisk (*) will appear to the right, immediately above, or immediately below an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Proposal A: -year, -month cash payback […]

3. Evaluate capital investment proposals using the net present value and internal rate of return methods. 125 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole […]

CHAPTER 26 Capital Investment Analysis Prob. 26–3A (Concluded) $9,257,000 3. The new maintenance yard has the largest present value index. Although route expansion has the largest net present value, it returns less present value per dollar invested than does the […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Present Value Net Cash Present Value of Net Cash Present Value of Net Cash Present Value of of $1 at […]

CHAPTER 26 Capital Investment Analysis Prob. 26–4B 1. a. After Hours: Annual net cash flow (at the end of each of 4 years)……………………… … $ 320,000 Sun Fun: Annual net cash flow (at the end of each of 4 years)……………………… […]

An asterisk (*) will appear to the right, immediately above, or immediately below an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Proposal A: -year, -month cash payback […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Fill out the table completely, even after the payback period is reached for each product line. a. Initial investment: Net Cash […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Present Value Net Cash Present Value of Net Cash Present Value of Net Cash Present Value of of $1 at […]

An asterisk (*) will appear to the right of an incorrect entry, or above and below formulas. The essay answer will not be graded. 1. a. Average annual rate of return for both projects:   1. b. Present Present […]

2. The principal limitations of the cash payback method are its failure to consider cash flows occurring after the payback period and its failure to use present value concepts. 3. The average rate of return is not based on cash […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Witchita: Annual net cash flow (at the end of each […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Office Expansion: Annual net cash flow (at the end of […]

An asterisk (*) will appear to the right of an incorrect entry. Present Present Value of Net Cash Value of Net $1 at 15% Flow =Cash Flow Year 1 Year 2 Year 3 Year 4 Year 4 (residual value) Total […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Fill out the table in 1a completely, even after the payback period is reached. 1. a. Initial investment: Net Cash Cumulative […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Fill out the table in 1a completely, even after the payback period is reached. 1. a. Initial investment: Net Cash Cumulative […]

1. a. Supplies Expense Supplies 2,750 Supplies used. b. Accounts Receivable Fees Earned 23,700 Accrued fees earned. c. Depreciation Expense Accumulated Depreciation—Equipment 1,800 Equipment depreciation. d. Wages Expense Wages Payable 1,400 Accrued wages. 1,400 1,800 23,700 2. Total Net Total […]

1. a. Under cash-basis accounting, revenues are reported in the period in which cash is received and 2. The matching concept is related to the accrual basis of accounting. 3. Adjusting entries are necessary at the end of an accounting […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. For correct grading in the table, enter a zero in cells you would otherwise leave blank. 1. Account Debit Credit a. b. c. d. 2. […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. For correct grading in the trial balance, enter a zero in cells you would otherwise leave blank. 1. Account Debit Credit a. b. c. d. […]

3. Summarize the adjustment process. 33 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. chapter 3 The Adjusting Process ______________________________________________ OPENING COMMENTS […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. Account Debit Credit a. b. c. d. e. 2. are a planned part of the accounting process to update the accounts. are not planned […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. For correct grading in the table, enter a zero in cells you would otherwise leave blank. 1. Account Debit Credit a. b. c. d. 2. […]

3. Current assets: Current liabilities: Cash $ 5,100 Accounts payable $9,750 Accounts receivable 26,500 Salaries and wages payable 1,900 Prepaid insurance 2,300 Unearned rent 1,500 Supplies 525 Total liabilities $ 13,150 Total current assets $ 34,425 Property, plant, and equipment: […]

Problem 4-4A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the general ledger accounts, only normal balance columns will be graded. For […]

CHAPTER 4 Completing the Accounting Cycle Continuing Problem (Continued) Account No. 11 Post. Item Ref. Debit Credit Debit Credit 2014 13 1 700 11,620 14 1 1,200 10,420 16 2 2,000 12,420 21 2 620 11,800 22 2 800 11,000 […]

CHAPTER 4 Completing the Accounting Cycle Prob. 4–4A (Continued) 3. Page 26 Post. Ref. Debit Credit 2014 Mar. 31 Supplies Expense 52 22,500 Supplies 13 22,500 Date Adjusting Entries JOURNAL 4-41 © 2014 Cengage Learning. All Rights Reserved. May not […]

CHAPTER 4 Completing the Accounting Cycle Comp. Prob. 1 (Continued) Account No. 54 Post. Item Ref. Debit Credit Debit Credit 2014 Account No. 55 Post. Item Ref. Debit Credit Debit Credit 2014 May 31 Adjusting 7 275 275 31 Closing […]

Problem 4-5B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the general ledger accounts, only normal balance columns will be graded. For […]

Problem 4-4B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the general ledger accounts, only normal balance columns will be graded. For […]

Problem 4-1B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the trial balance, enter a zero in cells you would otherwise leave […]

Problem 4-1A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. For correct grading in the trial balance, enter a zero in cells you […]

Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. Total expenses Net income Current assets: Current liabilities Total liabilities Total current assets Property, plant, […]

CHAPTER 4 Completing the Accounting Cycle Appendix Ex. 4–26 (Concluded) Current assets: Current liabilities: Cash $ 12 Accounts payable $36 ALERT SECURITY SERVICES CO. Balance Sheet October 31, 2014 Assets Liabilities 4-21 © 2014 Cengage Learning. All Rights Reserved. May […]

1. The end-of-period spreadsheet illustrates the flow of accounting information from the unadjusted 2. a. Current assets are composed of cash and other assets that may reasonably be expected to be realized in cash or sold or used up, usually […]

Exercise 4-25 Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. For correct grading in the work sheet, enter a zero in cells you […]

Exercise 4-24 Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. For correct grading in the work sheet, enter a zero in cells you […]

Problem 4-5A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the general ledger accounts, only normal balance columns will be graded. For […]

CHAPTER 4 Completing the Accounting Cycle Prob. 4–4B (Continued) Current assets: Current liabilities: Cash $13,100 Accounts payable $4,500 RECESSIVE INTERIORS Balance Sheet January 31, 2014 Assets Liabilities 4-81 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied […]

CHAPTER 5 Accounting Systems Prob. 5–5A 1., 3., and 4. Account No. 11 Post. Item Ref. Debit Credit Debit Credit Account No. 12 Post. Item Ref. Debit Credit Debit Credit 1 Balance 914,050 31 R35 21,920 35,970 31 CR31 16,030 […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. For correct grading, enter a zero or select N/A in cells you would otherwise leave blank. Although subsidiary ledger accounts are not provided, assume postings […]

CHAPTER 5 Accounting Systems Ex. 5–22 (Concluded) c. Controlling accounts are not posted at the end of the month in a computerized accounting system. In addition, special journals are not normally used to accumulate transactions. Transactions are recorded through data […]

Score: Key Code: An asterisk (*) will appear to the left of an incorrect entry. For ledger account amounts, only the normal balance column will be graded. Essay answers will not be graded. 1. Page 1 Inv. Post. No. Account […]

1. The individual accounts receivable ledger accounts provide business managers information on the 2. The major advantages of the use of special journals are substantial savings in record-keeping expenses and a reduction of record-keeping errors. 3. a. 400 b. None […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. For correct grading, enter a zero or select N/A in cells you would otherwise leave blank. Although subsidiary ledger accounts are not provided, assume postings […]

Score: Key Code: An asterisk (*) will appear to the left of an incorrect entry. For ledger account amounts, only the normal balance column will be graded. Essay answers will not be graded. 1. Page 1 Inv. Post. No. Account […]

CHAPTER 5 Accounting Systems Prob. 5–4B (Continued) 1. and 2. Page 1 2014 1., 2., and 3. Page 1 2014 Oct. 16 1 Rent Expense 71 7,000 18 2 Field Supplies 14 4,570 Office Supplies 15 650 24 3 Petro […]

3. Describe and illustrate the use of a computerized accounting system. 73 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. chapter 5 […]

CHAPTER 6 Accounting for Merchandising Businesses Appendix Ex. 6–39 Jan. 2 Merchandise Inventory 18,200 Accounts Payable 18,200 5 Merchandise Inventory 190 6-21 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. Enter all amounts as positive numbers. 1. Wyman Company uses which type of inventory system? 2. Revenue from sales: Less: Net sales Cost of merchandise sold: […]

Score: Key Code: An asterisk (*) will appear to the left of an incorrect entry. Account Debit Credit Mar. 2 2 3 3 4 4 5 5 12 14 14 Problem 6-2A Name: Section: 0% JOURNAL Date [Key code here] […]

CHAPTER 6 Accounting for Merchandising Businesses Appendix Prob. 6–10A 1. Periodic inventory system. Wyman Company uses a periodic inventory 6-41 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. Account Debit Credit July 1 1 2 2 5 5 8 8 13 13 14 14 0% JOURNAL Date [Key code here] Instructions Answers are entered […]

1. Merchandising businesses acquire merchandise for resale to customers. It is the selling of 2. Yes. Gross profit is the excess of (net) sales over cost of merchandise sold. A net loss arises when operating expenses exceed gross profit. Therefore, […]

Problem 6-5A Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. Essay answers will not be graded. 1. Revenue from sales: Less: Net sales Cost […]

Problem 6-6B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. 1. Revenues: Net sales Expenses: Total expenses Net income 2. Gerri Faber, capital, […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. Enter all amounts as positive numbers. 1. SIMKINS Company uses which type of inventory system? 2. Revenue from sales: Less: Net sales Cost of merchandise sold: […]

CHAPTER 6 Accounting for Merchandising Businesses Appendix Prob. 6–9B (Concluded) 2. Apr. 2 Purchases 32,000 Freight In 330 Accounts Payable—Swan Company 32,330 8 Purchases 49,500 6-61 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, […]

Problem 6-6A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. 1. Revenues: Net sales Expenses: Total expenses Net income 2. Mia Reynolds, capital, […]

CHAPTER 6 Accounting for Merchandising Businesses Comp. Problem 2 (Continued) 3. Debit Credit Lynn Tolley, Capital 685,300 Lynn Tolley, Drawing 135,000 Sales 5,532,350 Sales Returns and Allowances 113,700 Sales Discounts 61,600 Cost of Merchandise Sold 3,000,200 Sales Salaries Expense 720,800 […]

Exercise 6-23 Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Revenue from sales: Less: Net sales […]

chapter 6 Accounting for Merchandising Businesses _____________________________________________ OPENING COMMENTS Chapter 6 introduces the merchandising form of business. It opens by contrasting the income statements of service and merchandising businesses. The majority of the chapter is focused on the presentation of […]

105 chapter 7 Inventories OPENING COMMENTS Chapter 7 comprehensively covers the topic of inventories, including the effects of inventory errors, internal controls, inventory costing methods, lower-of-cost-or-market adjustments, and estimating inventory. The inventory costing methods are presented for both the perpetual […]

An asterisk (*) will appear to the right of an incorrect entry. Only final inventory cost – Column K – will be graded. a. Aug. 1 775 $44 34,100$ 10 12 14 20 31 31 Balances b. Based on the […]

116 Chapter 7 Inventories If the physical inventory count is understated, too much shrinkage will be recorded. This will understate Merchandise Inventory on the Balance Sheet and overstate Cost of Merchandise Sold on the Income Statement. If the physical inventory […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. Apr. 3 25 $1,200 30,000$ 8 11 30 May 8 10 19 28 […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. June 1 500 $30.00 15,000$ 10 28 30 July 5 10 16 28 […]

1. The receiving report should be reconciled to the initial purchase order and the vendor’s invoice 2. A physical inventory should be taken periodically to test the accuracy of the perpetual records. In addition, a physical inventory will identify inventory […]

CHAPTER 7 Inventories Prob. 7–2B (Concluded) 2. Total sales…………………………………………………………………………… $525,250 * 7-38 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Total cost […]

An asterisk (*) will appear to the right of an incorrect entry. Only final inventory cost – Column K – will be graded. Aug. 1 775 $44 34,100$ 10 12 14 20 31 31 Balances Quantity Unit Cost Total Cost […]

An asterisk (*) will appear to the right of an incorrect entry. Cost Retail Merchandise inventory, June 1 Purchases in June (net) Merchandise available for sale Ratio of cost to retail price: Cost: Retail: Sales for June (net) Merchandise inventory, […]

An asterisk (*) will appear to the right of an incorrect entry. Only final inventory cost – Column K – will be graded. Apr. 1 120 $39 4,680$ 6 14 19 25 30 30 Balances Answers are entered in the […]

CHAPTER 7 Inventories Appendix Ex. 7–22 $666,900 ($1,235,000 × 54%) Appendix Ex. 7–23 $241,804 ($396,400 × 61%) Appendix Ex. 7–24 $511,500 ($775,000 × 66%) Appendix Ex. 7–25 Cost Retail Merchandise inventory, June 1 $ 165,000 $ 275,000 Appendix Ex. 7–26 […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. Aor. 3 25 $1,200 30,000$ 8 11 30 May 8 10 19 28 […]

An asterisk (*) will appear to the right of an incorrect entry. Unit Market Lower of Commodity Price Cost Market C or M C300 77 $40 $39 F679 115 8 9 K200 3,180 3 2 MN23 190 29 26 XX51 […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. June 1 500 $30.00 15,000$ 10 28 30 July 5 10 16 28 […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. First-In, First-Out Method (list most recent purchases first for each item) Model Quantity Unit Cost Total Cost C55 D11 F32 H29 K47 S33 X74 Total […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. First-In, First-Out Method (list most recent purchases first for each item) Model Quantity Unit Cost Total Cost A10 B15 E60 G83 J34 M90 Q70 Total […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Balance per bank statement Add: Subtotal Deduct: Adjusted balance Balance per company’s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be reported as cash on […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Balance per bank statement Add: Subtotal Deduct: Adjusted balance Balance per company’s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be reported as cash on […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Cash balance according to bank statement Add: Subtotal Deduct outstanding checks: Adjusted balance Cash balance according to company’s records Add: […]

CHAPTER 8 Sarbanes-Oxley, Internal Control, and Cash Ex. 8–28 a. Year 3: $5,304.7 per month ($63,656 ÷ 12) 8-19 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, […]

An asterisk (*) will appear to the right of an incorrect entry. Account Debit Credit 2014 May 1 10 31 31 31 Problem 8-2A Name: Section: 0% JOURNAL Date [Key code here] Instructions Answers are entered in the cells with […]

An asterisk (*) will appear to the right of an incorrect entry. Account Debit Credit 2014 June 1 12 30 30 30 0% JOURNAL Date [Key code here] Instructions Answers are entered in the cells with gray backgrounds. Cells with […]

1. a. The five elements of internal control are the control environment, risk assessment, control p rocedures, monitoring, and information and communication. The control environment is the overall attitude of management and employees about the importance of controls. 2. To […]

An asterisk (*) will appear to the left of an incorrect entry. 1. Cash balance according to bank statement Add: Subtotal Deduct: Adjusted balance Cash balance according to company’s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Cash balance according to bank statement Add: Subtotal Deduct: Adjusted balance Cash balance according to company’s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Cash balance according to bank statement Add: Subtotal Deduct outstanding checks: Adjusted balance Cash balance according to company’s records Add: […]

3. Describe and illustrate the application of internal controls to cash. 5. Describe and illustrate the use of a bank reconciliation in controlling cash. 7. Describe and illustrate the reporting of cash and cash equivalents in the financial statements. 125 […]

An asterisk (*) will appear to the right of an incorrect entry. Portion Due Date Principal x Rate x of Year =Interest a. b. c. d. e. Exercise 9-19 Name: Section: Cells with non-gray backgrounds are protected and cannot be […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Customer Due Date Adams Sports and Flies May 22, 2013 Blue Dun Files Oct. 10, 2013 Cicada […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Customer Due Date Arcade Beauty August 17, 2013 Creative Images October 30, 2013 Excel Hair Products July […]

An asterisk (*) will appear to the right of an incorrect entry. Not Past Over Customer Balance Due 1 – 30 31 – 60 61 – 90 90 Total receivables 833,500$ 488,000$ 166,500$ 96,000$ 43,000$ 40,000$ Percent uncollectible Allowance for […]

3. Describe the direct write-off method of accounting for uncollectible receivables. 5. Compare the direct write-off and allowance methods of accounting for uncollectible accounts. 143 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or […]

4. The accounts receivable and allowance for doubtful accounts may be reported at a net amount of $661,500 ($673,400 – $11,900) in the Current Assets section of the balance sheet. In this case, the amount of the allowance for doubtful […]

CHAPTER 9 Receivables Ex. 9–28 a. and b. Net sales……………………… … c. The accounts receivable turnover indicates an increase in the efficiency of collecting accounts receivable by increasing from 30.7 to 37.3, a favorable trend. The days’ sales in receivables […]

1. Customer Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images 38 days (7 + 31) Oh That Hair 32 days (1 + 31) One Stop Hair Designs 24 days Visions Hair & Nail Sept. 8, […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Customer Due Date Color World Industries March 13 Hawks Company June 29 Osler Inc. July 8 Sather […]

Production and sales estimates for June are as follows: The number of units expected to be manufactured in June is: A.15,500 B.17,500 C.16,500 D.13,500 Answer: If the buyer is to pay the freight costs of delivering merchandise, delivery terms are […]

The usual presentation of the statement of owner’s equity is (1) Beginning capital, (2) Net income or loss, (3) Drawing, (4) Owner’s contributions, (5) Ending capital. Answer: Managerial accounting information is used by external and internal users equally. Answer: FALSE […]

An unfavorable volume variance may be due to a failure of supervisors to maintain an even flow of work. Answer: In a process costing system, indirect materials are charged to Work in Process. Answer: FALSE Managers use managerial information to […]

When comparing the direct write-off method and the allowance method of accounting for uncollectible receivables, a major difference is that the direct write-off method A.uses a percentage of sales method to estimate uncollectible accounts. B.is used primarily by large companies […]

The cash budget presents the expected inflow and outflow of cash for a specified period of time. Answer: An estimate of the amount which an asset can be sold at the end of its useful life is called residual value. […]

Which of the following is not considered as a complicating factor in capital investment decisions? A.Income tax B.Lease versus capital investment C.Equal proposed lives D.Qualitative considerations Answer: Stockholders’ equity A.is usually equal to cash on hand B.includes paid-in capital and […]

The closing process is sometimes referred to as closing the books. Answer: Accrued revenues are ordinarily listed on the balance sheet as current liabilities. Answer: FALSE Receivables not currently collectible are reported in the investments section of the balance sheet. […]

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are A.consigned B.n/30 C.FOB shipping point D.FOB destination Answer: Mandy Corporation sells a single product. Budgeted sales for the year are […]

Based on the following data for the current year, what is the number of days’ sales in inventory? A.51.2 B.44.4 C.6.5 D.7.5 Answer: What is the term used to describe expenses that are incurred for the benefit of a specific […]

The Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine […]

Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed costs are $75,000. Determine the (a) break-even point in sales units, and (b) break-even point in sales units if the selling price […]

If the unit selling price is $40, the volume of sales is $3,000,000, sales at the break-even point amount to $2,500,000, and the maximum possible sales are $3,300,000, the margin of safety is 14,500 units. Answer: The format and number […]

The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the unit’s performance is known as a: A.control center B.budgetary area C.responsibility center D.managerial department Answer: In the manufacture […]

If the costs for direct materials, direct labor, and factory overhead were $60,000, $35,000, and $25,000, respectively, for 20,000 equivalent units of production, the conversion cost per equivalent unit was $6. Answer: Under the Internal Revenue Code, corporations are required […]

If the underapplied factory overhead amount is immaterial, it is transferred to Cost of Goods Sold at the end of the fiscal year. Answer: The Sarbanes-Oxley Act of 2002 was passed by Congress due to the public outcry after the […]

The following data relate to direct labor costs for February: What is the direct labor rate variance? A.$14,000 favorable B.$14,000 unfavorable C.$15,400 favorable D.$15,400 unfavorable Answer: Which of the following activity bases would be the most appropriate for gasoline costs […]

Purchased $400,000 of ABC Co. 5% bonds at 100 plus accrued interest of $4,500. Sold $250,000 of bonds at 97. The journal entry for the purchase would include: A.a credit to Interest Receivable for $4,500 B.a credit to Interest Revenue […]

The Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine […]

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $260,000, $375,000, and $400,000, respectively, for September, October, and November. The company expects to sell 30% of its […]

A company sells goods for $150,000 that cost $60,000 to manufacture. Which statement(s) are true? A.The company will recognize sales on the balance sheet of $150,000. B.The company will recognize $90,000 gross profit on the balance sheet. C.The company will […]

Cash paid for preferred stock dividends should be shown on the statement of cash flows under A.investing activities B.financing activities C.noncash investing and financing activities D.operating activities Answer: Listed below are selected transactions completed by Ridge Company during March of […]

Title to merchandise shipped FOB shipping point passes to the buyer upon delivery of the merchandise to the buyer’s place of business. Answer: The relationship of each asset item as a percent of total assets is an example of vertical […]

The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year: Factory overhead is applied to jobs at the rate of 60% of direct labor […]

Managerial accountants would most likely prepare all of the following reports except: A.A performance report identifying amounts of scrap. B.A control report comparing direct material usage over time. C.A sales report targeting monthly sales and potential bonuses. D.An annual report […]

Intangible assets differ from property, plant and equipment assets in that they lack physical substance. Answer: An account has three parts to it; a title, an increase side, and a decrease side. Answer: TRUE Federal unemployment compensation taxes that are […]

If 50,000 shares are authorized, 41,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 43,000. Answer: A large public corporation normally uses registrars and transfer agents to maintain records of the stockholders. Answer: TRUE […]

The budgeted balance sheet assumes that all operating and financing plans are met. Answer: The financial statements are prepared from the unadjusted trial balance. Answer: FALSE Capital expenditures are costs that are charged to Stockholders’ Equity accounts. Answer: FALSE A […]

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost. Answer: Receivables that are expected to be collected in cash in eighteen months or less are […]

Direct labor cost is an example of a period cost. Answer: Assets are increased with debits and decreased with credits. Answer: TRUE The budgeted balance sheet assumes that all operating and financing plans are met. Answer: TRUE The process of […]

All property, plant, and equipment assets are depreciated over time. Answer: The master budget of a small manufacturer would normally include all component budgets that impact on the financial statements. Answer: TRUE Once an account has been closed for the […]

The journal entry a company records for the issuance of bonds when the contract rate and the market rate are the same is A.debit Bonds Payable, credit Cash B.debit Cash and Discount on Bonds Payable, credit Bonds Payable C.debit Cash, […]

At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true? A.Salary Expense for the year was understated. B.The total of the liabilities at the […]

Merchandise with a sales price of $6,000 is sold on account with term 2/10, n/30. The journal entry to record the sale would include a A.debit to Cash for $6,000 B.Debit to Sales Discounts for $120 C.Credit to Sales for […]

Purchasing equipment by issuing a six-month note should be shown on the statement of cash flows under the investing activities section. Answer: A statement of owner’s equity reports the changes in the owner’s equity for a period of time. Answer: […]

When estimated costs are used in applying the cost-plus approach to product pricing, the estimates should be based upon normal levels of performance. Answer: The balance of the Allowance for Doubtful Accounts is added to Accounts Receivable on the balance […]

Budgets are normally used only by profit-making businesses. Answer: The budgeted direct materials purchases is based on the sum of (1) the materials needed for production and (2) the desired ending materials inventory, less (3) the estimated beginning materials inventory. […]

Indicate how the following transactions affect the accounting equation: (a) The purchase of supplies on account. (b) The purchase of supplies for cash. (c) A withdraw by the owner to pay personal expenses. (d) Revenues received in cash. (e) Revenues […]

Beachside Coffee Shop, in an effort to stream line its accounting system, has decided to utilize a Cash Receipts Journal in its operation. If the company is to record the cash sale of food for $18 which is the correct […]

A cost object indicates how costs are related or identified. Answer: During the first year of operations, a company granted warranties on its products. The estimated cost of the product warranty liability at the end of the year is $8,500. […]

A perpetual inventory system is an effective means of control over inventory. Answer: Service department charges are similar to the expenses of a profit center that purchased services from a source outside the company. Answer: TRUE At the end of […]

Use the following worksheet to answer the following questions. Based on the preceding trial balance, the entry to close income summary would be: A.debit C. Finley, Capital $50,000; credit Income Summary $50,000 B.debit Income Summary $155,000; credit C. Finley, Capital […]

On June 1, 2014, Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours. Using straight line depreciation, prepare the journal entry to […]

Which of the following ratios provides a solvency measure that shows the margin of safety of bondholders and also gives an indication of the potential ability of the business to borrow additional funds on a long-term basis? A.ratio of fixed […]

The balance in a bond discount account should be reported on the balance sheet as a deduction from the related bonds payable. Answer: The profit margin component of rate of return on investment analysis focuses on profitability by indicating the […]

Closing entries are dated in the journal as of A.the date they are actually journalized, although they are generally prepared after the end of the accounting period B.the last day of the accounting period, although they are actually journalized after […]

The anticipated purchase of a fixed asset for $400,000, with a useful life of 5 years and no residual value, is expected to yield total net income of $300,000 for the 5 years. The expected average rate of return is […]