1) A company has just received a special, one-time order for 1,000 units. Producing the
order will have no effect on the production and sales of other units. The buyer’s name
will be stamped on each unit, at a total cost of $2,000. Normal cost data, excluding
stamping, follows:
What selling price per unit will this company require to earn $3,000 on the order?
2) Journalizing and posting closing entries is a required step in the accounting cycle.
Explain why it is necessary to close the books at the end of an accounting period.
3) A company needs to have $200,000 in 4 years, and will create a fund to insure that
the $200,000 will be available. If they can earn a 7% return, how much must the
company invest in the fund today to equal the $200,000 at the end of 4 years?
4) Suze and Bess formed the Suzy B Company by making capital contributions of
$130,000 and $195,000 respectively. The annual partnership income of $230,000 is to
be allocated assuming a salary allowance of $40,000 to Suze and $35,000 to Bess;
interest allowances of 12% on their initial capital investments; and the balance shared
equally. Prepare the entries to record the initial capital investments, the allocation of net
income, and close the partner’s withdrawal accounts assuming that Suze withdrew
$50,000 and Bess withdrew $55,000.
5) A company reported the following information for the month of November:
6) A company issued 10%, 10-year bonds with a par value of $1,000,000 on January 1,
at a selling price of $885,295, to yield the buyers a 12% return. The company uses the
effective interest amortization method. Interest is paid semiannually each June 30 and
December 31.
(1) Prepare an amortization table for the first two payment periods using the format
shown below:
(2) Prepare the journal entry to record the first semiannual interest payment.
7) What is a voucher system?