1) Manning, Co. collected 6-months’ rent in advance from a tenant on November 1 of
the current year. When it collected the cash, it recorded the following entry:
Prepare the required adjusting entry at December 31 of the current year.
2) A company’s flexible budget for 36,000 units of production showed variable
overhead costs of $54,000 and fixed overhead costs of $50,000. The company actually
incurred total overhead costs of $95,300 while operating at a volume of 32,000 units.
What is the controllable variance?
3) Mahoney Company had the following transactions involving plant assets during Year
1 and Year 2. Unless otherwise indicated, all transactions were for cash.
Prepare the general journal entries to record these transactions.
4) Describe the recording process (including costs) for sales of merchandise inventory
using a perpetual inventory system.
5) ____________________________ and _____________________ are the starting
points for the analyzing and recording process.
6) ___________________ are costs incurred to produce or purchase two or more
products at the same time.
7) Shin Company has a loan agreement that provides it with cash today, and the
company must pay $25,000 4 years from today. Shin agrees to a 6% interest rate. The
present value factor for 4 periods, 6% is 0.7921. What is the amount of cash that Shin
Company receives today?
8) A ______________________ income statement includes cost of goods sold as
another expense and shows only one subtotal for total expenses.
9) General-purpose financial statements include the (1) _________________, (2)
_________________, (3) ___________________________ (4)
________________________ and (5) ___________________________.
