1) A ____________________ is a signed agreement to pay a specified amount of
money either on demand or at a definite future date.
2) ______________________ financial statements show the financial position, results
of operations, and cash flows of all entities under the parent company’s control,
including all subsidiaries.
3) Naches Co. assigned direct labor cost to its products in May for 1,300 standard hours
of direct labor at the standard $8 per hour rate. The direct labor rate variance for the
month was $200 favorable and the direct labor efficiency variance was $150 favorable.
Prepare the journal entry to charge Work in Process Inventory for the standard labor
cost of the goods manufactured in May and to record the direct labor variances.
Assuming that the direct labor variances are immaterial, prepare the journal entry that
Naches would make to close the variance accounts.
4) Gross pay less all deductions is called ____________________.
5) __________________________ is the annual amount of cash dividends per share
distributed to common shareholders relative to the stock’s market price.
6) The following information is available for the Victor Company for its March 31 bank
reconciliation:
From the March 31 bank statement:
NSF: A check from a customer, Booker Co. in payment of their account.
IN: Interest earned on the account.
From the Victor Company’s accounting records:
1> Based on the above information, prepare a bank reconciliation for the Victor
Company.
2>Prepare the necessary general journal entries to adjust cash to the reconciled balance.
7) Describe the income statement and the relation between revenues, expenses, and net
income or loss.