accounting batch 1 all qustions 11

1)Social Security Benefits (LO. 4)Melissa, who is 70 years old, is unmarried and has no dependents. Her annual income consists of a taxable pension of $17,000, $14,000 in Social Security benefits, and $3,000 of dividend income. She does not itemize her deductions. She is in the 15% marginal income tax bracket. She is considering getting a part-time job that would pay her $5,000 a year. The applicable two bases for Social Security computations for Melissa are $25,000 and $34,000.a. What would be Melissa's after-tax income from the part-time job, considering Social Security and Medicare tax (use 7.65%) as well as Federal income tax on the earnings of $5,000? (Round your intermediate computations and final answer to the nearest dollar.)$b. What would be the effective tax rate (increase in tax/increase in income) on the additional income from the part-time job? Round to two decimal places.%2)ThefollowinginformationisprovidedforTerrapinServices,Inc.atJanuary31,2014:Debit CreditCash $275,000Accountsreceivable 150,000Investment 50,000Sparepartsandsupplies 30,000Prepaidinsurance 25,000LandandEquipment(net) 325,000Accountspayable $ 100,000InterestPayable 100WagePayable 10,000Notepayable 225,000Salariespayable 10,000Commonstock(nopar) 450,000Retainedearnings 59,900$855,000 $855,000AllFebruary2014activityfollows:1.Providedservicesonaccountforatotalof$225,000.2.Used$25,000inpartsandsupplies.3.Soldaninvestmentcosting$50,000fora$65,000notereceivabledueMay15.4.Paidaccountspayableof$100,000.5.Collectedaccountsreceivableof$78,800.6.Issuedcommonstockfor$75,000.7.Purchasedequipmentcosting$55,000.8.PaidMarchrentof$25,000.9.Paid$35,000foremployeeservices,$10,000ofthatwasforservicesperformedinDecemberof2013.10.Paid$300forFebruarynewspaperadvertisement.11.Paid$2,000onlong-termnoteincluding$200interestincurredratablyinJanuaryandFebruary2014.12.Paid$60,000onJuly1,2013foroneyearsfloodinsurancecoverage.Required:a. Foreachtransaction,showtherevenue/expensethatwouldberecognizedundertheaccrualmethodinonecolumnandtherevenue/expensethatwouldberecognizedunderthecashmethodinasecondcolumn.b.Prepareappropriatejournalentriesforeachtransaction.c. PrepareaclassifiedbalancesheetatFebruary28,2014ingoodform.

3)

Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM

87501. Lance works for the convention bureau of the local Chamber of Commerce,

while Wanda is employed part-time as a paralegal for a law firm.

During 2012, the Deans had the following receipts:

Salaries ($60,000 for Lance, $41,000 for Wanda)$101,000

Interest income

City of Albuquerqe general purpose bonds$1,000

Ford Motor company bonds1,100

Ally Bank certificate of deposit4002,500

Child support payments from John Allen7,200

Annual gifts from parents26,000

Settlement from Roadrunner Touring Company90,000

Lottery winnings600

Federal income tax refund (for tax year 2011)400

Wanda was previously married to John Allen. When they divorced several years ago,

Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has

never issued a Form 8332 waiver.) Under the divorce decree, John was obligated to

pay alimony and child supportthe alimony payments were to terminate if Wanda

remarried.

In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus.

As the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company,

paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit,

Roadrunner also transferred $90,000 to her in settlement of the personal injuries she

sustained.

The Deans had the following expenditures for 2012:

Medical expenses (not covered by insurance)$7,200

Taxes

Property taxes on personal residence$3,600

State of New Mexico income tax (includes

amount withheld from wages during 2012)4,2007,800

Interest on home mortgage6,000

Paid church pledge3,600

Life insurance premiums (policy on Lances life)1,200

Contribution to traditional IRA (on Wandas behalf)5,000

Traffic fines300

Contribution to the reelection campaign fund of

the mayor of Santa Fe500

Funeral expenses for Wayne Boyle6,300

The life insurance policy was taken out by Lance several years ago and designates

Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage

under her employers pension plan. Consequently, she provides for her own retirement

with a traditional IRA obtained at a local trust company. Because the mayor is a

member of the local Chamber of Commerce, Lance felt compelled to make the political

contribution.

The Deans household includes the following, for whom they provide more than half

of the support:

Social Security Number Birth Date

Lance Dean (age 42)123-45-678612/16/1970

Wanda Dean (age 40)123-45-678708/08/1972

Penny Allen (age 19)123-45-678810/09/1993

Kyle Allen (age 17)123-45-678905/03/1995

Wayne Boyle (age 75)123-45-678506/15/1937

Penny graduated from high school on May 9, 2012, and is undecided about college.

During 2012, she earned $8,500 (placed in a savings account) playing a harp in the

lobby of a local hotel. Wayne is Wandas widower father who died on January 20, 2012.

For the past few years, Wayne qualified as a dependent of the Deans.

Federal income tax withheld is $5,200 (Lance) and $3,100 (Wanda). The proper

amount of Social Security and Medicare tax was withheld.

Determine the Federal income tax for 2012 for the Deans on a joint return.What's the AGI, Taxable Income and Net Balance?

4)

Albania, Inc. manufactures instruments for use by large and small corporations. The company uses a normal costing system, in which manufacturing overhead is applied on the basis of direct-labor hours. The companys budget for the current year includes the following predictions:Budgeted total manufacturing overhead $5.000, 000Budgeted total direct-labor hours 200,000During October, the firm worked on the following two production jobs. Job number T79, consisting of 76 High Density Instruments Job Number C41, consisting of 110 Low Density InstrumentsThe events of October are described as follows:a.One thousand square feet of rolled brass sheet metal was purchased on account for $6,600.b.Four hundred pounds of brass tubing was purchased on account for $6,300.c.The following requisitions were submitted to the inventory warehouse on October 5:Requisition number 112: 480 square feet of brass sheet metal at $7.00 per square foot (for job number T79)Requisition number 113: 1,800 pounds of brass tubing at $5.00 per pound (for job number C41)Requisition number 114: 25 gallons of valve lubricant at $10 per gallon.All brass used in production is treated as direct material. Valve lubricant is an indirect material.d.An analysis of labor time cards revealed the following labor usage for October.Direct labor: Job number T79, 1,600 hours at $60 per hour.Direct labor: Job number C41, 1,750 hours at $40 per hour.Indirect labor: General factory cleanup, $4,900.Indirect labor: Factory supervisory salaries, $14,000.e.Depreciation of the factory building and equipment during October amounted to $16,000.f.Rent paid in cash for factory equipment used during October was $1,600.g.Heat and light costs on the factory incurred during October amounted to $2,800. The invoices for these costs were received, but the bills were not paid in October.h.October property taxes on the factory were paid in cash, $2,300.i.The insurance cost covering factory operations for the month of October was $3,800. The insurance policy had been prepaid.j.The cost of salaries and fringe benefits for sales and administrative personnel paid in cash during October amounted to $9,000.k.Depreciation on sales office equipment and space amounted to $5,600.l.Other selling and administrative expenses paid in cash during October amounted to $1,300.m.Job number T79 was completed on October 20.n.Seventy-five percent (75%) of the 76 instruments in job number T79 were sold on account during October for $4,000 each.The October 1 balances in selected accounts are as follows:Cash $35,000Accounts Receivable 32,000Prepaid Insurance 6,000Raw-Material Inventory 120,000Manufacturing Supplies Inventory 600Work-in-Process Inventory 56,000Finished-Goods Inventory 180,000Accumulated Depreciation: Buildings and Equipment 80,000Accounts Payable 16,500Wages Payable 98,500Required:1.Calculate the companys predetermined overhead rate for the year,2.Prepare journal entries to record the events of October.3.Set-up T-accounts, and post the journal entries made in requirement (2).4.Calculate the overapplied or underapplied overhead for October. Prepare a journal entry to close this balance into Cost of goods Sold.5.Prepare a schedule of cost of goods manufactured for October.6.Prepare a schedule of cost of goods sold for October7.Prepare an income statement for October.

5)

1. Which of the following is not a major change in the business environment that has affected the way many companies think about conducting business?

An increased focus on the customer, especially their opinions about functionality and quality.A growing emphasis on globalization -new markets for products and new competitors.A larger number of companies are starting to use advanced information technologies, such as business intelligence.The development of improved cost management methods.

Question 2. 2. In a local factory, employees are rewarded for finding new and better ways of changing the way they work. This company is motivating its employees to use what management technique? (Points : 2)

Benchmarking.Activity-Based Costing.Theory of Constraints.Continuous Improvement.Total Quality Management.

Question 3. 3. In keeping with the current trend of increased strategic planning, how have management accountants changed their use of life-cycle costing? (Points : 2)

They have now shifted their focus from R&D costs to marketing and promotion costs.They have turned from a sole focus on manufacturing costs to a much wider outlook, taking into account costs from the entire product life-cycle.They stopped looking at the entire life-cycle, and now focus their attention on product design costs.Accountants don't use life-cycle costing, that task is left for the operations manager.

Question 4. 4. The competitive strategy in which the firm succeeds by developing and maintaining a unique value for the product, as perceived by the customer, is termed: (Points : 2)

Differentiation.Specialization advantage.Design strategy.Benchmarking.Product Specialization.

Question 5. 5. A firm that has traditionally succeeded on the basis of its innovative products and excellent customer service has started to place greater emphasis on reducing waste and providing its customers with the lowest priced product. Which of the following most accurately describes this change of competitive strategy? (Points : 2)

Cost leadership to differentiation.A balanced strategy to cost leadership.Differentiation to a balanced strategy.Cost leadership to a balanced strategy.Differentiation to cost leadership.

Question 6. 6. Assume the following information pertaining to Moonbeam Company:

Beginning Finished Goods Inventory = $130,000Ending Finished Goods Inventory = $124,000Beginning WIP Inventory = $85,000Ending WIP Inventory = $104,000Beginning Direct Materials = $117,000Ending Direct Materials = $130,000

Costs incurred during the period are as follows:Total Manufacturing Costs = $896,000Factory Overhead = $199,000Direct Materials Used = $156.000

Materials purchases are calculated to be: (Points : 2)

$143,000.$156,000.$91,000.$169,000.$140,000.

Question 7. 7. Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the office files:

COGS = $80,000WIP Inventory January 1. = $18,500WIP Inventory December 31 = $14,500Selling & Administrative Expenses = $16,000Net Income = $30,000Factory O/H = $20,000Direct Materials Inventory, January 1= $26,000Direct Materials Inventory, December 31= $14,000COGM = $98,000Finished Goods Inventory, January 1 = 31,000

Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to report to him by the end of tomorrow.

What should be the amount of direct materials used? (Points : 2)

$15,000.$29,000.$20,000.$24,000.

Question 8. 8. Which of the following is a batch-level cost driver? (Points : 2)

Output units.Number of employees.Number of orders.Number of parts.

Question 9. 9. In calculating unit cost in a process costing system, "conversion cost" is defined as the sum of: (Points : 2)

Direct and indirect material costs.Direct and indirect labor costs.Direct labor and factory overhead costs.Indirect labor and factory overhead costs.

Question 10. 10. Units accounted for includes units completed and transferred out plus: (Points : 2)

Beginning inventory.Units to account for.Ending inventory.Units started.

Question 11. 11. Multistage ABC is used when: (Points : 2)

There are many departments in the organization.Management wants a higher level of accuracy from the ABC calculations.There are complex relationships among the activities.To simplify the ABC calculations.

Question 12. 12. Product costing system design or selection: (Points : 2)

Is cost management expertise.Requires an understanding of the nature of the business.Should provide useful cost information for strategic and operational decision needs.Should be cost effective in design and operation.All the above answers are correct.

Question 13. 13. East Bay Fisheries Inc. processes king salmon for various distributors. Two departments are involved processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2013 are provided below:

Tons of Percent Completed King Salmon Materials ConversionWork-in-Process Inventory June 1 1,500 90 80Work-in-Process Inventory June 1 2,800 60 40Started processing during June 7,800

Total equivalent units for materials under the weighted-average method are calculated to be: (Points : 2)

6,830 equivalent units.8,180 equivalent units.6,980 equivalent units.7,140 equivalent units.7,620 equivalent units.

Question 14. 14. Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:

Overhead Cost Pool - Budgeted O/H $- Budgeted Level for Cost Driver - O/H Cost DriverMaterials Handling $160,000 3,200 lbs. Material WeightMachine Setup 13,200 390 S/Us # of S/UsMachine Repair 1,380 30,000 Mach. Hrs Machine Hrs.Inspections 10,560 160 Inspections # of InspectionsRequirements for Job #971 which included 4 Units of Production:D/L Hours = 20 HoursD/Matls = 130 lbs.Machine S/U = 30 Set-upsMachine Hrs. = 15,000 Machine HoursInspections = 15 Inspections.

Using ABC, the materials handling overhead cost assigned to Job #971 is: (Points : 2)

$2,300.$990.$6,500.$690.$1,020.

Question 15. 15. At the breakeven point, total fixed cost is: (Points : 2)

Less than the total contribution margin.Equal to the total contribution margin.More than the total contribution margin.Equal to the contribution margin per unit.Equal to the contribution margin divided by operating income.

Question 16. 16. The use of a relationship of total factory overhead to direct labor hours is said to be valid only within the relevant range, which means: (Points : 2)

Within a reasonable dollar amount for labor costs.Within the range of observations of the cost driver.Within the range of reasonableness as judged by the department supervisor.Within the budget allowance for overhead.

Question 17. 17. Which of the following provides the most accurate cost estimation? (Points : 2)

Regression analysis with R-squared of 0.12.Regression analysis with F value of 1.2High-low method.Regression analysis with R squared of 0.89.

Question 18. 18. Joint products are products that: (Points : 2)

Have minor total sales value.Have substantial sales value.Come from different production processes.Are marketed in a joint marketing program.

Question 19. 19. The p-value measures: (Points : 2)

The probability that the regression equation is reliable.The statistical significance of the dependent variable.The risk that a particular independent variable has only a chance relationship to the dependent variable.The confidence range around the regression prediction.

Question 20. 20. Variable costs will generally be relevant for decision making because they: (Points : 2)

Differ between options.Are volume-based.Have not been committed and differ between options.Differ between options and have been committed.Measure opportunity cost.

Question 21. 21. Jackson, Inc. is preparing a budget for the coming year and requires a breakdown of the cost of electrical power used in its factory into the fixed and variable elements. The following data on the cost of power used and direct labor hours worked are available for the last six months of this year:

Month $ for Power DL HoursJuly $ 15,850 3,000Aug 13,400 2,050Sept 16,370 2,900Oct 19,800 3,650Nov 17,600 2,670Dec 18,500 2,650 Total $101,520 16,920

Assuming that Jackson uses the high-low method of analysis, the estimated variable cost of steam per direct labor hour is: (Points : 2)

$4.00.$5.42.$5.82.$6.00.

Question 22. 22. For a typical capital investment project, the bulk of the investment-related cash outflow occurs: (Points : 2)

During the initiation stage of the project (i.e., at time period 0).During the operation stage of the project.Either during the initiation stage or the operation stage.During neither the initiation stage nor the operation stage.Evenly during all three stages: initiation, operation, and final disposal.

Question 23. 23. Given the same total cash flow returns (CFRs), the internal rate of return (IRR) method of capital budgeting would favor a proposal having yearly CFRs that were: (Points : 2)

Even.Uneven.Heavier towards the end of a proposal's life.Heavier towards the beginning of a proposal's life.

Question 24. 24. Research has shown that in framing capital investment decisions, sunk costs tend to: (Points : 2)

Have no discernible impact on decisions by managers.Have a slight impact on the decision-making process.Have an impact only when capital funds are limited.Escalate commitment in making capital budgeting decisions.

Question 25. 25. In situations when management must decide on accepting or rejecting one-time-only special orders, where there is sufficient idle capacity, which one of the following is not relevant to the decision? (Points : 2)

Absorption costs.Differential costs.Direct costs.Variable costs.Incremental costs.

Question 26. 26. In deciding whether to drop or keep a product line, all of the following are relevant to the decision EXCEPT: (Points : 2)

The level of unavoidable fixed costs.The segment margin generated by the product line.Demand interdependencies across product lines of the company.Effect of the decision on overall company morale.

Question 27. 27. Omaha Plating Corporation is considering purchasing a machine for $1,500,000. The machine is expected to generate a constant after-tax income of $100,000 per year for 15 years. The firm will use straight-line (SL) depreciation for the new machine over 10 years with no residual value.

What is the annual accounting (book) rate of return (rounded to two decimal places) on the initial investment? (Points : 2)

6.67%.10.00%.13.33%.16.67%.23.33%.

Question 28. 28. Pique Corporation wants to purchase a new machine for $300,000. Management predicts that the machine can produce sales of $200,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $80,000 per year. The firm uses straight-line depreciation with no residual value for all depreciable assets. Pique's combined income tax rate is 40%. Management requires a minimum after-tax rate of return of 10% on all investments.

What is the approximate internal rate of return (IRR) of the investment? (NOTE: To answer this question, students must have access to Table 2 from Appendix C, Chapter 12.) (Points : 2)

Less than 12%.Somewhere between 12% and 14%.Somewhere between 15% and 20%.Somewhere between 20% and 25%.Over 25%.

Question 29. 29. The theory of constraints (TOC) emphasizes which of the following? (Points : 2)

Developing competitive constraints.Finding and eliminating design constraints.Removing bottlenecks from the production process.Improving overall production efficiency.

Question 30. 30. A ______________ standard gets progressively tighter over time: (Points : 2)

Peak-efficiency.Currently attainable.Benchmarked.Flexible-budget.Continuous-improvement.

Question 31. 31. For internal reporting purposes, it is recommended that fixed overhead allocation rates in a standard costing system be based on: (Points : 2)

Budgeted capacity usage.Theoretical capacity since this is the level required under generally accepted accounting principles.Actual capacity utilization.Expected capacity usage.Practical capacity.

Question 32. 32. Generally, firms will price a product more competitively at which stages of the product's sales life cycle? (Points : 2)

Product introduction and Growth.Maturity and Decline.Throughout the cycle.At the end of the life cycle.

Question 33. 33. Electronic Component Company (ECC) is a producer of high-end video and music equipment. ECC currently sells its top of the line "ECC" DVD player for a price of $250. It costs ECC $210 to make the player. ECC's main competitor is coming to market with a new DVD player that will sell for a price of $220. ECC feels that it must reduce its price to $220 in order to compete. The sales and marketing department of ECC believes the reduced price will cause sales to increase by 15%. ECC currently sells 200,000 DVD players per year.

Assuming sales and marketing are not correct in their estimation and the volume of sales is not changed and ECC meets the competitive price, what is the target cost if ECC wants to maintain its same income level? (Points : 2)

$210.$200.$190.$180.

Question 34. 34. Lucky Company's direct labor information for the month of February is as follows:

Actual DL Hours Word (AQ) = 61,500Standard DL Hours Allowed (SQ) = 63,000Total Payroll for DL = $774,900DL Efficiency Variance = $18,000

The actual direct labor rate per hour (AP) is: (Points : 2)

$12.00.$12.30.$12.60.$13.20.$13.50.

Question 35. 35. A company's flexible budget for 15,000 units of production showed sales of $48,000; variable costs of $18,000; and fixed costs of $12,000. The operating income in the master budget for 20,000 units is: (Points : 2)

$8,000.$13,500.$24,000.$28,000.$30,000.

Question 36. 36. Controllable margin is determined by subtracting short-term controllable fixed costs from the: (Points : 2)

Long-term controllable fixed cost.Contribution margin.Variable costs.Fixed costs.Variable costs and fixed costs.

Question 37. 37. The need for coordination between the production and the selling function will impact the choice of: (Points : 2)

Profit, cost or revenue center.Manager for the firm.Formal or informal control systems.Profitability goal for the firm.Control measures to prevent fraud.

Question 38. 38. The manager acting independently in such a way as to simultaneously achieve top management's objectives is: (Points : 2)

Performance evaluation.Operational control.Goal congruence.Principal-agent model.Management control.

Question 39. 39. Which one of the following is a drawback of decentralization? (Points : 2)

Uses local knowledge only.May hinder coordination among independent SBUs.Provides less effective operational control.May affect goal congruence.Offers an inefficient method of performance evaluation.

Question 40. 40. "Outsourcing" a cost center is often done to: (Points : 2)

Reduce cost and obtain strategic focus.Increase control over a strategic resource.Reduce the firm's contractual relationships.Shift costs within remaining cost centers.

Question 41. 41. SBU is the acronym for: (Points : 2)

Small Business Unit.Sustainable Business Unit.Standard Business Unit.Strategic Business Unit.

Question 42. 42. Which one of the following has been the most common payment option for bonus compensation in recent years? (Points : 2)

Vacation time.Stock options.Increased benefits.Salary increase.

Question 43. 43. Which of the following is one of the most comprehensive bases of compensation? (Points : 2)

Balanced scorecard.Unit-based compensation pool.Firm-wide compensation pool.Salary.

Question 44. 44. EVA is calculated as: (Points : 2)

EVA Net Income - (Cost of Capital x EVA Invested Capital).Total Net Income - (Cost of Capital x Invested Capital).Gross Income - Cost of Capital.Total Net Income - EVA Net Income.Accounting earnings adjusted for EVA.

Question 45. 45. An increase in the market price of a company's common stock will immediately affect its: (Points : 2)

Stock return.Debt to equity ratio.Earnings per share.Economic value added.Return on equity.

Question 46. 46. The objectives of management compensation, when compared to the objectives used to develop performance measurement systems, are: (Points : 2)

More numerous.Less specific.Consistent in their objectives.Significantly broader in scope.More specific.

Question 47. 47. A company had income of $50,000 using variable costing for a given period. Beginning and ending inventories for that period were 80,000 units and 90,000 units, respectively. If the fixed overhead application rate were $10.00 per unit, what would operating income have been using full costing? (Points : 2)

$(50,000).$170,000.$150,000.$0.Cannot be determined from the information given.

Question 48. 48. The King Mattress Company had the following operating results for 2012-2013. In addition, the company paid dividends in both 2012 and 2013 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2012 was $8 and $7 in 2013. The industry average earnings multiple for the mattress industry was 9 in 2013 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2013.

Balance Sheet, December 31 2013 2012Cash $ 340,000 $ 100,000Accounts Receivable 350,000 400,000Inventory 250,000 300,000 Total Current Assets $ 940,000 $ 800,000Long Lived Assets 1,080,000 1,100,000 Total Assets $ 2,020,000 $ 1,900,000Current Liabilities $ 200,000 $ 300,000Long-Term Liabilities 600,000 500,000Stockholders Equity 1,220,000 1,100,000 Total Liabilities & Equity $ 2,020,000 $ 1,900,000Income Statement for the Year Ended December 31Sales $ 4,750,000 $ 4,500,000Cost of Sales 4,100,000 4,000,000 Gross Margin $ 650,000 $ 500,000Operating Expenses 350,000 400,000 Operating Income $ 300,000 $ 100,000Taxes 120,000 40,000 Net Income $ 180,000 $ 60,000Cash Flow from OperationsNet Income $ 180,000 $ 60,000Plus Depreciation Expense 50,000 50,000+Decrease (-Inc) in A/T and Inventory 100,000 - 0 -+Increase (-Dec) in Current Liabilities (100,000) - 0 Cash Flow from Operations $ 230,000 $ 110,000

The current ratio for 2013 is: (Points : 2)

1.82.03.94.7

Question 49. 49. During October, Rover Industries produced 35,000 units of product with costs as follows:DM = $ 84,000DL = 43,000Variable O/H = 13,000Fixed O/H = 147,000 Total =$ 287,000What is Rover's unit cost for October, calculated on the variable costing basis? (Points : 2)

$3.25.$3.75.$4.00.$4.50.$5.00.

6)

Presented below are certain account balances of Paczki Products Co.Rent revenue$7,340Sales discounts$8,030

Interest expense12,940Selling expenses99,800

Beginning retained earnings114,980Sales revenue405,010

Ending retained earnings134,210Income tax expense27,110

Dividend revenue71,130Cost of goods sold185,380

Sales returns and allowances12,580Administrative expenses83,590

Allocation to noncontrolling interest17,610

From the foregoing, compute the following:(a)Total net revenue$

(b)Net income$

(c)Dividends declared$

(d)Income attributable to controlling stockholders$

7)

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during MarchJob P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Estimated total fixed manufacturing overhead$14,800

Estimated variable manufacturing overhead per direct labor-hour$1.60

Estimated total direct labor-hours to be worked3,700

Total actual manufacturing overhead costs incurred$21,000

Job PJob Q

Direct materials$21,500$9,700

Direct labor cost$44,800$12,000

Actual direct labor-hours worked2,800750

Required:

1.What is the companys predetermined overhead rate?

Predetermined overhead rateper DLH

2.How much manufacturing overhead was applied to Job P and Job Q?

Job PJob Q

Manufacturing overhead applied

check my workreferencesebook & resources3.What is the direct labor hourly wage rate?

Job PJob Q

Direct labor hourly wage rate

4-a.If Job P includes 20 units, what is its unit product cost?

Unit product cost

4-b.What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?

Total manufacturing cost

5.Assume the ending raw materials inventory is $2,700 and the company does not use any indirect materials. Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

6.Assume that the company does not use any indirect labor. Prepare the journal entry to record the direct labor costs added to production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

8.Assume the ending raw materials inventory is $2,700 and the company does not use any indirect materials. Prepare a schedule of cost of goods manufactured.

Schedule of Cost of Goods Manufactured

Direct materials:

Total raw materials available

Raw materials used in production

Total manufacturing costs

10.Prepare a completed Work in Process T-account including the beginning and ending balances and all debits and credits posted to the account.

Work in Process

Beg. bal.

End. bal.

11.Prepare a schedule of cost of goods sold.

Schedule of Cost of Goods Sold

Unadjusted cost of goods sold

13.What is the amount of underapplied or overapplied overhead?

15.Assume that Job P includes 20 units that each sell for $5,000 and that the companys selling and administrative expenses in March were $10,000. Prepare an absorption costing income statement for March.

Income Statement for March

8)






Job PJob Q




Required:




Job PJob Q



Job PJob Q



Unit product cost







Direct materials:





Work in Process

Beg. bal.

End. bal.







9)

Pearson architectural

Cost of subcontracted work

$230,600$76,100$121,760$389,500$6,580

Predetermined over head rate

10)






Job PJob Q




Required:




Job PJob Q



Job PJob Q



Unit product cost







Direct materials:





Work in Process

Beg. bal.

End. bal.







11)In February 2014, U.S. Deputy Marshal Raylan Givens used TurboTax software to complete his 2013 personal income tax return. When Raylan was nearly finished with his return, TurboTax presented Raylan with a promotional offer claiming to increase his federal income tax refund. Specifically, if Raylan elected to receive any portion of his federal income tax refund in the form of a gift card to Amazon.com, Intuit (the makers of TurboTax software) offered to match an additional 10% of the elected amount in Amazon.com gift certificates, free of charge. Raylans total tax refund was $6,000, and he elected to apply $5,000 of his total refund to this offer. Raylan received an Amazon.com gift card from Intuit in March 2014 for $5,500 (i.e., $5,000 applied refund plus 10%). Raylan used the entire $5,500 gift card to purchase a new high-definition television and sound system so he could watch all of his favorite shows in style.Based on the facts above, what amount of the $5,500 gift card, if any, does Raylan need to recognize as gross income for tax year 2014? Why? Assume Raylan is your client and prepare a brief research memo, complete with citations and analysis of primary authority, to support your conclusions. Remember that Raylan is not a professional tax preparer, so it is important that you explain your position in a clear and concise manner that is not overly technical (i.e., do not copy and paste excerpts from primary authorities and call it a day).12)

Assume 360 days per year. Round your intermediate and final answers to two decimal places.The accounts receivable turnover ratios for The Coca-Cola Company and PepsiCo for 2010 are

13)

Whats going on in that lab? asked Kevin Brolsma, chief administrator for Cincinnati Hospital, as he studied the prior months reports. Every month the lab teeters between a profit and a loss. Are we going to have to increase our lab fees again?

We cant, replied Jessica Duffy, the controller. Were getting lots of complaints about the last increase, particularly from the insurance companies and governmental health units. Theyre now paying only about 80% of what we bill. Im beginning to think the problem is on the cost side.

To determine if lab costs are in line with other hospitals, Mr. Brolsma has asked you to evaluate the costs for the past month. Ms. Duffy has provided you with the following information:

a.Two basic types of tests are performed in the labsmears and blood tests. During the past month, 3,400 smears and 1,000 blood tests were performed in the lab.

b.Small glass plates are used in both types of tests. During the past month, the hospital purchased 17,000 plates at a cost of $53,040. This cost is net of a 4% purchase discount. A total of 2,400 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month.

c.During the past month, 2,400 hours of labor time were used in performing smears and blood tests. The cost of this labor time was $26,400.

d.The labs variable overhead cost last month totaled $19,200.

Cincinnati Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs:

Plates:Three plates are required per lab test. These plates cost $3.25 each and are disposed of after the test is completed.

Labor:Each smear should require 0.4 hours to complete, and each blood test should require 0.8 hours to complete. The average cost of this lab time is $11.60 per hour.

Overhead:Overhead cost is based on direct labor-hours. The average rate of variable overhead is $7.50 per hour.

Required:

1.Compute the materials price variance for the plates purchased last month, and compute a materials quantity variance for the plates used last month. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

Materials price variance$

Materials quantity variance$

2.For labor cost in the lab:

a.Compute a labor rate variance and a labor efficiency variance. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

Labor rate variance$

Labor efficiency variance$

b.In most hospitals, three-fourths of the workers in the lab are certified technicians and one-fourth are assistants. In an effort to reduce costs, Cincinnati Hospital employs only one-half certified technicians and one-half assistants. Would you recommend that this policy be continued?

Yes

No

3a.Compute the variable overhead rate and efficiency variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

Variable overhead rate variance$

Variable overhead efficiency variance$

3b.Is there any relation between the variable overhead efficiency variance and the labor efficiency variance?

Yes

No

14)

LIFO Perpetual InventoryThe beginning inventory at RTE Office Supplies and data on purchases and sales for a three-month period are as follows:

Required:1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Round unit cost to two decimal places, if necessary.RTE Office SuppliesSchedule of Cost of Merchandise SoldLIFO MethodFor the three months ended August 31, 2014

PurchasesCost of Merchandise SoldInventory

DateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal Cost

June 1$$

June 10$$

June 28$$

June 30

July 5

July 10

July 16

July. 28

Aug. 5

Aug. 14

Aug. 25

Aug. 30

Aug. 31Balances$$

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.Total sales$

Total cost of merchandise sold$

Gross profit from sales$

3. Determine the ending inventory cost as of August 31, 2014.$15)

White Boxes are wrong, Please HLEP !

Krause Industries balance sheet at December 31, 2013, is presented below.KRAUSE INDUSTRIESBalance SheetDecember 31, 2013

Assets

Current Assets

Cash$7,500

Accounts receivable82,500

Finished goods inventory (2,000units)33,620

Total current assets$123,620

Property, Plant, and Equipment

Equipment$41,810

Less: Accumulated depreciation11,81030,000

Total assets$153,620

Liabilities and Stockholders' Equity

Liabilities

Notes payable$26,810

Accounts payable46,810

Total liabilities73,620

Stockholders' Equity

Common stock$48,190

Retained earnings31,810

Total stockholders' equity80,000

Total liabilities and stockholders' equity$153,620

Additional information accumulated for the budgeting process is as follows.Budgeted data for the year 2014 include the following.4th Qtr. of 2014Year 2014 Total

Sales budget (8,000 units at $35)$84,000$280,000

Direct materials used13,38069,400

Direct labor12,50056,600

Manufacturing overhead applied10,00052,190

Selling and administrative expenses16,19076,000

To meet sales requirements and to have 3,000 units of finished goods on hand at December 31, 2014, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $20. Krause Industries uses the first-in, first-out (FIFO) inventory costing method. Selling and administrative expenses include $11,946 for depreciation on equipment. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before income taxes.

All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2014, the company expects to purchase additional equipment costing $20,810. It expects to pay $9,810 on notes payable plus all interest due and payable to December 31 (included in interest expense $3,500, above). Accounts payable at December 31, 2014, include amounts due suppliers (see above) plus other accounts payable of $7,510. In 2014, the company expects to declare and pay an $6,810 cash dividend. Unpaid income taxes at December 31 will be $6,810. The companys cash budget shows an expected cash balance of $7,950 at December 31, 2014.

* Question 9

Your answer is partially correct. Try again.

Prepare a budgeted income statement for 2014.KRAUSE INDUSTRIESBudgeted Income StatementFor the Year Ending December 31, 2014

Sales$ 280,000

Cost of Goods Sold

Finished Goods Inventory, January 1$ 33,620

Cost of Goods Manufactured178,190

Cost of Goods Available For Sale211,810

Finished Goods Inventory, December 3160,000

Cost of Goods Sold

Gross Profit

Selling and Administrative Expenses76,000

Income from Operations52,190

Interest Expense3,500

Income before Income Taxes48,690

Income Tax Expense19,476

Net Income/ (Loss)$ 29,214

Attempts: 5 of 5 used

* Question 9

Your answer is partially correct. Try again.

Prepare a budgeted balance sheet at December 31, 2014. (List assets in order of liquidity.)KRAUSE INDUSTRIESBudgeted Balance SheetDecember 31, 2014

Assets

Current Assets

Cash$

Accounts Receivable

Finished Goods Inventory60,000

Total Current Assets$

Property, Plant and Equipment

Equipment$

Less: Accumulated Depreciation

Total Assets$

Liabilities and Stockholders' Equity

Current Liabilities

Notes Payable$ 17,000

Accounts Payable

Income Taxes Payable

Total Liabilities$

Stockholders' Equity

Common Stock$ 48,190

Retained Earnings

Total Stockholders' Equity

Total Liabilities and Stockholders' Equity$

16)

: Lance Company, an accrual basis corporation, reported taxable income of $1,560,000for 2013. Included in the computation were the following:MACRS depreciation of $200,000, S/L would have bee $120,000Net Capital loss carryover of $10,000 from 2012Net Operating Loss carryover of $25,000 from 2012Not Included were the following:Tax Exempt income of $5,000Life insurance proceeds of $250,000Excess charitable contributions of $2,500 to be carryover to 2013Tax-Deferred gain of $20,000 on a like kind exchangeFederal income tax refund from 2012 of $30,000Nondeductible insurance premiums of $3,500Lance Company paid federal income taxes of $496,500. The companys Accumulated E&P onJanuary 1 was $2,400,000.During the year they distribute 50,000 on June 30 and $75,000 on December 31 to the soleShareholder Nick.A. Compute Lances current E&P for 2013B. Compute the amount of Dividend Income reported by Nick in 2013.C. Compute Lances Accumulated E&P at the beginning of 2014.

17)

The Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $204 with a resulting contribution margin of $71.Brisbane's management is considering a change in its quality control system. Currently, Brisbane spends $40,500 a year to inspect the CD players. An average of 1,900 units turn out to be defective - 1,330 of them are detected in the inspection process and are repaired for $80. If a defective CD player is not identified in the inspection process, the customer who receives it is given a full refund of the purchase price. Competitors are expected to improve their quality control systems in the future, so if Brisbane does not improve its system, sales volume is expected to fall by 490 CD players a year for the next five years. In other words, it will fall by 490 units in the first year, 980 units in the second year, etc..The proposed quality control system involves the purchase of an x-ray machine for $310,000. The machine would last for five years and would have salvage value at that time of $18,000. Brisbane would also spend $820,000 immediately to train workers to better detect and repair defective units. Annual inspection costs would increase by $23,000. This new control system would reduce the number of defective units to 380 per year. 315 of these defective units would be detected and repaired at a cost of $42 per unit. Customers who still received defective players would be given a refund equal to one-and-a-fourth times the purchase price.Questions 1 & 2 [no credit; unlimited tries]1. What is the Year 3 cash flow if Brisbane keeps using its current system? Tries 0/99

2. What is the Year 3 cash flow if Brisbane replaces its current system? Tries 0/99

Questions 3 & 4 [5 points each; 5 tries each]3. Assuming a discount rate of 6%, what is the net present value if Brisbane keeps using its current system? Tries 0/5

4. Assuming a discount rate of 6%, what is the net present value if Brisbane replaces its current system?

18)

JumpinJehosaPhats is a small business owned by JJ Phats as the sole proprietor. JJphats isincorporating the business.On January 1, 2012 JumpinJehosaPhats Inc. has been authorized to issue 1,000,000 commonshares with a Par Value of $1. In the process of incorporating, the sole proprietor owners equityaccounts must be closed and the equity must now reflect a corporate stockholders equityaccount.The books for the Sole Proprietorship indicate the following:JJ Phats deposited $35,000 to start JumpinJehosaPhatsJJ Phats contributed $50,000 of equipment to start JumpinJehosaPhatsRetained Earnings December 31, 2011 = $150,000Prepare the Stockholders Equity Portion of the Balance Sheet on January 1, 2012.

Then answer . part 2

JumpinJehosaPhats was incorporated on January 1, 2012 and a year later it needs $10,000,000 toexpand operations. JJ Phats is the sole shareholder of the corporation.The corporation is considering three methods to raise the capital: issuing common shares at FMV issuing preferred stock with par = $1000 issuing 10 year bonds with par = $1000You have been hired to determine the best way for the company to obtain the funds neededwhich might be a single method or combination of methods. Using the followinginformation, discuss the pros and cons of each method and provide necessary calculationsto support the position you recommend. The company is authorized to issue 1,000,000 shares with a par value of $1.00 On January 1, 2013 an appraisal of the company indicates that it has a current value of$25,000,000. On January 1, 2013 current interest rates are 3.5% APR and rising. On December 1, 2012 the competition (LeapinLizards Inc) issued 10,000 ten yearcumulative preferred shares with par = $1000 at 3.4%19)

Hannah & Maggie Inc.Hannah & Maggie are independent recording artists who manufacture all their CDs by hand whole sale. In December Hannah found a Neumann record cutting machine on sale for $25,000. The machine can be used to transfer digital music to vinyl records (LPs).Hannah and Maggie think their new album would sound amazing (and sell well) as an LP, but they need a loan to purchase the machine. A local bank is agreeable, but requires both current (2013) and budgeted (3 months in 2014) financial statements.

Balance SheetDecember 2013 &

December 31, 20132014 Sales Forecast

Cash$19,200January29,600

A/R22,000February34,400

Inventory @1/1/146,000March38,000

Fixed Assets28,000April43,200

Total Assets$75,200May31,200

A/P Purchase Dec$6,400

Accrued Credit FeesDec550

Common Stock16,000

Retained Earnings52,250

Total Liab & Equity$75,200

Additional Information:a. Everyone who buys H&Ms music pays with a credit card. H&M collect 40% in the month of the sale and 60% in the month after the sale.b. The credit card sales also mean that H&M incur a 1.5% sales fee. The sales fee is due one month after the sale.

c. The cost of sales is 35% of (current month) sales.d. To make sure they dont run out of music to sell at shows, Hannah & Maggie plan to maintain inventory at the sales requirements for the next two months budgeted sales.e. Hannah & Maggie use a credit card for all their purchases; the duo pays off their balance in full the following month.

f. Hannah & Maggie pay their manager 3% of sales each monthg. In addition to the variable management cost, the duo incurs fixed expenses of $5,000 per month, $500 of which is for depreciation of fixed assets.Want an answer?

20)

Need to figure out where we calculate the 700,500. Below was the given statement. Below all of this will be the trial balance and any other information I can find.For the Chapter 7 CAP closing entries we made an entry to move $317,232 from Net Postion - Unrestricted to Net Position - Net Investment in Capital Assets. Why did we do this entry? And how do we come up with the calculation of $317,232***? See the calculation below:Statement of Net positonBeginning Balance - Net Position - Net Investment in Capital Assets $1,773,712 (see your 2013 Trial Balance)Less: Depreciation (380,008) - Entry #16Less: Amortization ( 3,260) - Entry #8 + Entry #16Add: Change in Utility Plant700,500 - HOW DO YOU CALCULATE THIS AMOUNT? (The Assignment)Ending Balance - Net Position - Net Investment in Capital Assets $2,090,944 - Number on your Financial Statement*** $317,232 = (380,008) + (3,260) + 700,500City of BinghamWater Utility FundPost-Closing Trial BalanceFor year 2011757.eCITY OF BINGHAMWater Utility FundStatement of Net AssetsAs of December 31, 2011ASSETS:Current Assets:Cash $ 985,168Due from other funds 40,000Customer accounts receivable $ 199,490Less: Accumulated provision uncollectible accounts 5,820 193,670Inventory of supplies 101,546Total Current Assets 1,320,384Restricted Assets: Cash 58,460Utility Plant:Utility plant in service 19,902,990Less: Accumulated provision for depreciation 4,391,286 15,511,704Construction work in progress 664,300Total Utility Plant 16,176,004Total Assets 17,554,848LIABILITIES:Current and Accrued Liabilities:Vouchers payable 94,020Accrued interest payable 434,100Total Current and Accrued Liabilities 528,120Liabilities Payable from Restricted Assets: Customer deposits 58,460Long-Term Debt: 6% Revenue bonds 14,470,000Less: Unamortized bond discount 61,940 14,408,060Total Liabilities 14,994,640NET ASSETS:Invested in capital assets, net of related debt 1,767,944Unrestricted 792,264Total Net Assets $ 2,560,208Debits CreditsCash $985,168Restricted Cash - Customer Deposits 58,460Customer Accounts Receivable 199,490Accumulated Provision for Uncollectible Accounts $5,820Inventory of Supplies 101,546Due from Other Funds 40,000Utility Plant in Service 19,902,990Accumulated Depreciation Utility Plant 4,391,286Construction Work in Progress 664,300Vouchers Payable 94,020Customer Deposits 58,460Accrued Interest Payable 434,1006% Revenue Bonds Payable 14,470,000Unamortized Bond Discounts on Revenue Bonds Payable 61,940Net Assets - Invested in Capital Assets, Net of related Debt 1,773,712Net Assets - Unrestricted 41,250Sales of Water 3,066,700Operation Expense 826,786Maintenance Expense 268,400Depreciation Expense 380,008Uncollectible Accounts 3,800Interest on Long-Term Debt 842,460Totals for all accounts $24,335,348 $24,335,348City of BinghamWater Utility FundPre-Closing Trial BalanceFor year 2011767.e CITY OF BINGHAMWater Utility FundStatement of Revenues, Expenses, and Changes in Net AssetsFor the Year Ended December 31, 2011Operating Revenues:Sales of water (net of provision foruncollectible accounts of $3,800) $3,062,900Operating Expenses:Operation expense $ 826,786Maintenance expense 268,400Depreciation expense 380,008Total Operating Expense 1,475,194Operating Income 1,587,706Nonoperating Revenue and Expense:Interest on long-term debt 842,460Change in Net Assets 745,246Net Assets, December 31, 2010 1,814,962Net Assets, December 31, 2011 $2,560,208777.fCITY OF BINGHAMWater Utility FundStatement of Cash FlowsFor Year Ended December 31, 2011Cash flows from operating activities:Cash received from customers and City $2,994,100Cash provided by customerdeposits (see Note A) 3,854Cash payments to employees for services(less: $70,500for construction) (746,930)Cash payments to suppliers (332,800)Net cash provided by operating activities $1,918,224Cash flows from capital and relatedfinancing activities:Construction of capital assets (348,500)Interest paid on long-term debt (868,200)Net cash used for capital and relatedfinancing activities (1,216,700)Net increase in cash and cash equivalents 701,524Cash and cash equivalents, December 31, 2010 342,104Cash and cash equivalents, December 31, 2011 $1,043,628Reconciliation of cash and cash equivalents to the balance sheet:End Beginningof Year of YearCash and cash equivalents in currentand accrued assets $ 985,168 $284,904Restricted cash and cash equivalents 58,460 57,200Total cash and cash equivalents $1,043,628 $342,104787.f (Contd)Reconciliation of operating income to net cash provided byoperating activities:Operating income $1,587,706Adjustments:Depreciation $ 380,008Increase in accounts receivable, net (37,950)Increase in inventory of supplies (7,400)Increase in due from other funds (27,000)Increase in accounts payable 21,600Increase in customer deposits 1,260Net adjustments 330,518Net cash provided by operating activities $1,918,224Note A: Entry 7-b-13, deposits received, $6,904, minus deposits refunded to customers,$3,050.21)

The Numo Company, which was acquired (and renamed) in 2003 by E. R. Numo, sells frigets to multinational firms. In 2012, a venture capital firm provided additional funding in order to allow the company to expand operations. The following information was taken from the preliminary trial balance of Numo Company, a calendar year company, on December 31, 2012:Cash74,000

Accounts Receivable60,000

Inventory88,000

Transportation Equipment203,000

Accumulated Depreciation - Transportation Equipment68,000

Goodwill200,000

Accounts Payable20,000

Deferred Tax Liability - Depreciation6,000

Common Stock, $2 par62,000

Paid-in Capital in Excess of Par Value81,000

Retained Earnings, 1/1/12280,000

Sales363,000

Salaries/Compensation Expense86,000

Cost of Goods Sold140,000

Supplies Expense16,000

Depreciation Expense - Transportation Equipment22,000

Municipal Bond Interest1,000

Gain on Discontinued Operation - before tax8,000

However, the bookkeeping staff did NOT record the following transactions and adjustments because staff members were unsure about the appropriate accounting treatment:(1) On October 31, 2012, Numo issued a five-year, $400,000, non-interest bearing note to the venture capital firm and received $248,368 in cash, which reflects a 10% market yield. For financial statement purposes, interest expense is recognized using the effective interest rate method. However, for tax purposes, interest is not deductible until paid, which will be at the end of the five-year period.HINT - In addition to the 10/31/12 transaction, be sure to record the required adjusting entry to record interest expense as of 12/31/12(2) In 2012, the company was accused of patent infringement. While the company is contesting the case, management believes that there is a probably loss of between $15,000and $40,000. This loss has NOT been recordedHINT - Record the appropriate loss. This accrued liability should be considered a current liability. Also, remember that the loss is not deductible until paid.(3) During the last quarter of the year, Numo found that inventory originally costing $17,000 had become obsolete and was no longer saleable. However, Numo has made the decision to temporarily retain the goods to see if a buyer can be found. For tax purposes, the cost of obsolete inventory can not be deducted on the tax return until the goods are actually disposed of.Required:A. Record appropriate transactions and adjusting entries as described above.B. Partially prepare a multiple-step Income Statement (through Income before Income Taxes) in accordance with GAAP.C. Record Income tax Expense for 2012. The tax rate is 25% for all years. You have learned that the company's interest revenue is tax-exempt since it was earned on municipal bonds. In addition to the temporary differences described above, you have identified that a temporary difference exists for depreciation. As of 12/31/2011, there is a cumulative difference between tax depreciation and financial statement depreciation that amounts to $24,000. In 2012, tax depreciation was $28,000 and book depreciation (already recorded - see trial balance) was $22,000. You may assume that all deferred tax assets, if any, will be realized.Then record the tax effect of the discontinued operation. You can assume that the discontinued operation is taxable on this years tax return.D. Complete your Income Statement. Be sure that it contains all items that are required by GAAP. You do NOT need to show Earnings Per Share data.E. Prepare a classified Balance Sheet in accordance with GAAP.22)

1) Large Corporation acquired and placed in service the following 100% business-use alerts. Large did not elect Sec. 179 expensing on any of these properties, and elected out of bonus depreciation for all of them.

1. Truck (light-duty, modified non-personal use) costing $36,000: Placed in service on March 3, 2013 with a 5-year MACRS recovery period.2. Machinery costing $85,000: Placed in service on November 15, 2013 with a 7-year MACRS recovery period.3. Land costing $90,000: Placed in service on October 12, 2013.4. Building costing $280,000: Placed in service on December 4, 2013 with a 39-year MACRS recovery period.a) a) What is Larges total depreciation deduction in 2013?b) b)Large Corporation sells the machinery on February 2, 2015 and sells the building on September 18, 2015. What are the adjusted bases of these two assets on the dates of sale (compute accumulated depreciation to date of sale)?2) In July 2013, Tish acquires and places in service a business machine costing $450,000 with a 7-year MACRS recovery period. Tish elects the maximum allowable Sec. 179 expense on the machine but elects out of bonus depreciation. In August 2013, she also places in service business equipment costing $1,650,000, with a 5-year MACRS recovery period. Tishs taxable income (before the Sec. 179 expense and the 50% of SE tax deduction) is $310,000.

a) What is Tishs allowable 2013 Sec. 179 expense on the machine? What amount can she carry over to 2014?b) What is Tishs total 2013 depreciation deduction?c) What are the limitations on Tishs ability to use the Sec. 179 carryover in 2014?d) How would your answer to Part a change if Tishs business taxable income (before the Sec. 179 expense and the 50% of SE tax deduction) were $525,000 in 2013 instead of $310,000?3) On January 1 of the current year, Palm Corporation purchases the net assets of Vickis unincorporated business for $600,000. The tangible net assets have a $300,000 book value and a $400,000 FMV. The purchase agreement states that Vicki will not compete with Palm Corporation by starting a new business in the same area for a period of five years. The stated consideration received by Vicki for the covenant not to compete is $50,000. Other intangible assets included in the purchase agreement are as follows:

Goodwill: $70,000Patents: (12-year remaining legal life) $30,000Customer list: $50,000

a) a) How would Vickis assets be recorded for tax purposes by Palm Corporation?

b) b) What is the amortization amount for each intangible asset in the current year?

23)

he Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $210 with a resulting contribution margin of $74.Brisbane's management is considering a change in its quality control system. Currently, Brisbane spends $39,500 a year to inspect the CD players. An average of 1,900 units turn out to be defective - 1,330 of them are detected in the inspection process and are repaired for $85. If a defective CD player is not identified in the inspection process, the customer who receives it is given a full refund of the purchase price. Competitors are expected to improve their quality control systems in the future, so if Brisbane does not improve its system, sales volume is expected to fall by 550 CD players a year for the next four years. In other words, it will fall by 550 units in the first year, 1,100 units in the second year, etc..The proposed quality control system involves the purchase of an x-ray machine for $290,000. The machine would last for four years and would have salvage value at that time of $19,000. Brisbane would also spend $780,000 immediately to train workers to better detect and repair defective units. Annual inspection costs would increase by $23,000. This new control system would reduce the number of defective units to 350 per year. 280 of these defective units would be detected and repaired at a cost of $41 per unit. Customers who still received defective players would be given a refund equal to one-and-a-half times the purchase price.Questions 1 & 2 [no credit; unlimited tries]1. What is the Year 3 cash flow if Brisbane keeps using its current system? Top of Form

Bottom of Form

2. What is the Year 3 cash flow if Brisbane replaces its current system? Top of Form

Bottom of Form

Questions 3 & 4 [5 points each; 5 tries each]3. Assuming a discount rate of 6%, what is the net present value if Brisbane keeps using its current system? 4. Assuming a discount rate of 6%, what is the net present value if Brisbane replaces its current system?

24)

The Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $207 with a resulting contribution margin of $77.

Brisbane's management is considering a change in its quality control system. Currently, Brisbane spends $39,500 a year to inspect the CD players. An average of 2,000 units turn out to be defective - 1,400 of them are detected in the inspection process and are repaired for $75. If a defective CD player is not identified in the inspection process, the customer who receives it is given a full refund of the purchase price. Competitors are expected to improve their quality control systems in the future, so if Brisbane does not improve its system, sales volume is expected to fall by 520 CD players a year for the next five years. In other words, it will fall by 520 units in the first year, 1,040 units in the second year, etc..

The proposed quality control system involves the purchase of an x-ray machine for $310,000. The machine would last for five years and would have salvage value at that time of $22,000. Brisbane would also spend $810,000 immediately to train workers to better detect and repair defective units. Annual inspection costs would increase by $25,000. This new control system would reduce the number of defective units to 360 per year. 290 of these defective units would be detected and repaired at a cost of $46 per unit. Customers who still received defective players would be given a refund equal to one-and-a-half times the purchase price.

Questions 1 & 2 [no credit; unlimited tries]1. What is the Year 2 cash flow if Brisbane keeps using its current system?

2. What is the Year 2 cash flow if Brisbane replaces its current system?

Questions 3 & 4 [5 points each; 5 tries each]3. Assuming a discount rate of 8%, what is the net present value if Brisbane keeps using its current system?

4. Assuming a discount rate of 8%, what is the net present value if Brisbane replaces its current system?

25)

The following unemployment tax rate schedule is in effect for the calendar year 2014 in State A, which uses the reserve ratio formula in determining employer contributions: Conrad Company, which is located in State A, had an average annual payroll of $1,150,000 for the three 12-month periods ending on June 30, 2013 (the computation date for the tax year 2014). As of June 30, 2013, the total contributions that had been made to Conrad Company's reserve account, in excess of the benefits charged, amounted to $21,560. Compute the following: a. Conrad Company's reserve ratio for 2013. Round your answer to two decimal places. % b. 2014 contribution rate for the company. Round your answer to one decimal place. % c. Smallest contribution that the company can make in order to reduce its tax rate if State A permits voluntary contributions. $ d. Tax savings realized by the company, taking into consideration the voluntary contribution made in (c) if the taxable payroll in 2014 is $1,295,000. $

26)

Problem 7-4A (Part Level Submission)

The bank portion of the bank reconciliation for LaRoche Company at October 31, 2014, is shown below.LAROCHE COMPANYBank ReconciliationOctober 31, 2014

Cash balance per bank$12,367.90

Add: Deposits in transit1,530.20

Less: Outstanding checks13,898.10

Check NumberCheck Amount

2451$ 1,260.40

2470684.20

2471844.50

2472426.80

24741,050.004,265.90

Adjusted cash balance per bank$9,632.20

The adjusted cash balance per bank agreed with the cash Cash balance per books at October 31. The November bank statement showed the following checks and deposits.Bank Statement

ChecksDeposits

DateNumberAmountDateAmount

11-12470$ 684.2011-1$ 1,530.20

11-22471844.5011-41,211.60

11-524741,050.0011-8990.10

11-424751,640.7011-132,575.00

11-824762,830.0011-181,472.70

11-102477600.0011-212,945.00

11-1524791,750.0011-252,567.30

11-1824801,330.0011-281,650.00

11-272481695.4011-301,186.00

11-302483575.50Total16,127.90

11-292486940.00

Total$12,940.30

The cash records per books for November showed the following.Cash Payments JournalCash Receipts Journal

DateNumberAmountDateNumberAmountDateAmount

11-12475$1,640.7011-202483$ 575.5011-3$ 1,211.60

11-224762,830.0011-222484829.5011-7990.10

11-22477600.0011-232485974.8011-122,575.00

11-42478538.2011-242486940.0011-171,472.70

11-824791,705.0011-292487398.0011-202,954.00

11-1024801,330.0011-302488800.0011-242,567.30

11-152481695.40Total$14,469.1011-271,650.00

11-182482612.0011-291,186.00

11-301,304.00

Total$15,910.70

The bank statement contained two bank memoranda:1.A credit of $2,242.00 for the collection of a $2,100 note for LaRoche Company plus interest of $157 and less a collection fee of $15. LaRoche Company has not accrued any interest on the note.

2.A debit for the printing of additional company checks $85.00.

At November 30, the cash balance per books was $11,073.80 and the cash balance per bank statement was $17,712.50. The bank did not make any errors, but LaRoche Company made two errors. WarningDon't show me this message again for the assignment

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(a)

Using the four steps in the reconciliation procedure, prepare a bank reconciliation at November 30, 2014.LAROCHE COMPANYBank ReconciliationNovember 30, 2014

$

Add:

Less:

$

$

$

Add:

Less:$

$

Want an answer? 27)

Multi-Part Work Out ProblemCarefully consider the following information before answering the questions that follow:Quarter Foods began its operations January 1, 2014. Quarter Foods sells non-local and nonorganic foods to individual consumers and local businesses. As its food does not go bad, Quarter Foods return policy is that anything can be returned for a full refund within one week. In 2014 all sales were completed before December 24, 2014.

Individual Customers:All of its sales to individual customers are with traditional credit cards and these credit card companies charge Quarter Foods a 2% service fee for all sales (and refund this fee with any returns). In 2014, Quarter Foods sold $220,000 to individual consumers and $20,000 of these sales was returned within the one week period. An individual who spent $5,000 at Quarter Foods realized that Quarter Foods was non-organic and when she inquired about returns Quarter Foods offered her an allowance on the purchase in the form of a $1,500 store gift card, which she accepted instead of returning the items.

Business Customers:All of Quarter Foods sales to businesses are on account. Quarter Foods offers a discount of 5/20 n/60 for early payments of sales on account. In 2014, Quarter Foods sold $170,000 to business customers and $10,000 of these sales was returned within the one week period. Quarter Foods estimates that 5% of the final Sales on Account (those that the business customers do not return) will not be collected.One business customer, with purchases in 2014 of $20,000, always paid Quarter Foods within 15 days of the purchase. Another business customer, with $5,000 of unpaid purchases, declared bankruptcy and did not have any means to pay any of the bill. No other business customer paid within 30 days of the purchase. At the end of the year Quarter Foods balance in Accounts Receivable is $20,000. Both of these customers purchases were included in the $170,000.

Quarter Foods appropriately accounted for all of its transactions and adjusting entries during 2014.Multi-Part Questions for Quarter Foods: (Be sure to read all of page 1 first.)

What where Quarter Foods Net Sales to individual customers for 2014? 4 points.

How much net cash did it ultimately receive from Sales to individual customers in 2014?

Write the entry that Quarter Foods made to record Bad Debt Expense in 2014:Journal EntryDebitCredit

What is the Net Realizable Value of Quarter Foods Accounts Receivable as of the end of 2014?

What was Quarter Foods Total Net Sales for 2014?

How much total cash from all customers did Quarter Foods ultimately receive in 2014?

28)

a. Prepare the first and second page of the 3-page assignment. Each page will show a spreadsheet, each with data shown in different ways. On the spreadsheet for the first page, show your work area (including your notes) and all your data (with the dollar amounts).On the spreadsheet for the second page, show all your formulas. (Remember that the entire spreadsheet will only be formulas.) You can make these formulas visible by pressing the Ctrl key and the Tilde key (~) at the same time. The Tilde key is located to the left of the number 1 on the keyboard.

a. Prepare the third page of the 3-page assignment. This page will show two line charts, both showing a chart title and labels for the X and Y axes. Format the charts, so they are easily readable and understandable. On the first chart, show a comparison of the projected total income per month from April through September 2014. (Do not show itemized income.) Title this Comparison of Monthly Income. Show the name of the months on the X axis.On the second chart, show a comparison of the projected total expenses per month from April through September 2014. (Do not show itemized expenses.) Title this Comparison of Monthly Expenses. Again, show the names of the months on the X axis.

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Projected Income from April through September 2014:You will receive the following:$50,000/year for foundations, which will be evenly distributed as monthly income throughout the year $600/month from individual donations $300/month from additional donations that will start June, 2014 $6,000 from a 6-month grant will be received in July, 2014. The money will be counted as income in full in August. A 25% increase from last year's banks sponsorship. (Last year, the sponsorship amount was $10,000.) The funds were donated in June but will be recorded in full in the month of July. 25% increase of the amount of funds raised from last year fundraising event. (Last year, $35,000 was raised.) Even though the fundraising event will be held in August, the funds will be recorded in full in the month of September. Money from your partners inheritance. The money is currently invested in a mutual fund which is gaining interest every year. When it reaches a total amount of $15,000 (predicted for July, 2014), you plan to invest the total amount in your business account at that time.

Projected Expenses from April through September 2014:On a monthly basis, you plan to continue to spend the following: $800 for renting office space 5% of monthly income for office supplies for all months except July, August and September $250 for training and development $400 for insurance $125 for student meals In July, you plan to hire a consultant to help the Board develop leadership skills; the cost will be $3000. This cost will be evenly distributed every month from July through September. In April and May, you plan to hold a retreat for Board development and spend $500 to rent a facility for each event. In August, you plan to spend $8,000 to hold a fundraising event. In June, you plan to decrease the Board's training and development expenditures by 25% as the need for ongoing formal training will decrease. This June expense will then apply and be the same amount through September. In June, you plan to increase the expenses for student meals by 6% as it is predicted that there will be an increase in the cost of food. This June expense will then apply and be the same amount through September. In September, you plan to spend $450 to conduct a Volunteer Recognition event.======================================================PLEASE HELP ME!PLEASE SHOW THE FORMULA AND YOUR WORK! THANKS IN ADVANCE!29)

cicleta manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. receiving and assembly are necessary activities; expediting and storing goods are unnecessary. the following data pertain to the four activities for the year ending 2012 (actual price per unit of the activity driver is assumed to be equal to the standard price):

activity/ activity driver/ SQ/ AQ/ SPreceiving/ receiving orders/ 12000/ 18000/ $21assembly/ labor hours/ 75000/ 90000/ 15expediting/ orders expedited/ 0/ 6000/ 50storing/ number of units/ 0/ 12000/ 7

1. prepare a cost report for the year ending 2012 that shows value-added costs, non-value-added costs, and total costs for each activity.2. explain why expediting products and storing goods are non-value added activities/3. what if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? what is the implication for reducing the cost of waste for each activity?30)

I have a homework for accounting 1 in connect.mcgraw-hill.com for one chapter due tonight at 12 p.m.Please who can do it for me ?

31)

Uxmaiz Corporation had only one job in process during MayJob X32Zand had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below: Job X32Z Beginning balance $ 5,000 Charged to the job during May Direct materials $ 8,000 Direct labor $ 2,000 Manufacturing overhead applied $ 4,000 Units completed 100 Units in process at the end of May 0 Units sold during May 40 In May, overhead was overapplied by $300. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied. Required: 1. Using the direct method, what is the cost of goods sold for May? 2. What is the total value of the finished goods inventory at the end of May?

32)

Uxmaiz Corporation had only one job in process during May-Job X32z- and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below:

In May, overhead was over applied by $300. The company adjusts its cost of goods sold every month for the amount of the overhead that was under applied or over applied.1. Using the direct method, what is the cost of goods sold for May?2. What is the total value of the finished goods inventory at the end of May?3. What is the total value of the work in process inventory at the end of May?

33)

I would appreciate help :) A testing lab owns a hydraulic load frame, which was purchased for $35,000 early in the labs fiscal year 4 years ago. The internal bookkeeping uses a sum of the years digits depreciation method assuming a life of 12 years and zero salvage value. For tax purposes, it is being depreciated with a 25% Capital Cost Allowance. The labs MARR is 10%. The fiscal year is the same as the calendar year.The existing frame has no value on the second hand market. The operating and maintenance costs for this frame have remained constant, and will remain constant, at $6500.00 per year.There is a new load frame on the market, which sells for $40,000.00, and its operating and maintenance costs are estimated to be $3,000 in the first year, increasing by 15% per year.This new frame does have a second hand value estimated to decline 50% from the original purchase price in the first year, a further 30% in the second year and subsequently level off at $12000.00 for the foreseeable future.1. (a)What was the internal depreciation charge that was made last year?2. (b)What will the Undepreciated Capital Cost of the load frame be at the end of this fiscal year?3. (c)If the frame is in fact sold for $5,000 this year what final entry must be made on this years tax filing?4. (d)What is the economic life of the new machine? Show all calculations or include a copy of your excelspreadsheet.5. (e)Should the existing frame be replaced with the new model (now)? Justify your answer.

34)

No full excel

35)

The stockholders equity accounts of Miley Corporation on January 1, 2014, were as follows.Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) = $300,000Common Stock ($4 stated value, 300,000 shares authorized)=1,000,000Paid-in Capital in Excess of Par ValuePreferred Stock)=15,000Paid-in Capital in Excess of Stated ValueCommon Stock=480,000Retained Earnings=688,000Treasury Stock(5,000 common shares)=40,000During 2014, the corporation had the following transactions and events pertaining to its stockholders equity.Feb. 1Issued 5,000 shares of common stock for $30,000.Mar. 20Purchased 1,000 additional shares of common treasury stock at $7 per share.Oct. 1Declared a 7% cash dividend on preferred stock, payable November 1.Nov. 1 Paid the dividend declared on October 1.Dec. 1Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014.Dec. 31 Determined that net income for the year was $280,000. Paid the dividend declared on December 1.Feb 1Cash30,000Common Stock 25,000Paid-in Capital in Excess of States Value-Common Stock 5,000Match 20Treasury Stock 7,000Cash 7,000Oct 1Cash DividendsDividends PayableNov 1Dividends PayableCashDec 1Cash DividendsDividends PayableDec 31Income SummaryRetained EarningsDec 31Retained EarningsCash DividendsDec 31Dividends PayableCash Payout ratio

%

Earnings per share $

Return on common stockholders equity

%

36)

I just do not know which form those numbers should go in. I would canculate the results myself. ThanksJohn and Ellen Brite are married and file a joint return. They have no dependents. John owns an unincorporated specialty electrical lightning retail store, Brite-On. Brite-On had the following assets on January 1, 2012:Old store building purchased april 1, 1999: $100,000Equipment (7-year recovery)purchased January 10,2007: $30,000Inventory valued using FIFO method: 4,000 light bulbs: $5/bulbBrite-On purchased a competitor's store on March 1, 2012 for $107,000. The purchase price include the following:New store building: $60,000(FMV)Land: $18,000(FMV)Equipment:(5-year recovery): $11,000(FMV)Inventory: 3,000 lights bulbs: $6/bulb(cost)On Junes 30,2012, Brite-On sold the 7-year recovery period equipment for $12,000. Brite-On leased a $30,500 car for $500/month beginning on January 1,2012. The car is used 100% for business and was driven 14,000 miles during the year.Brite-On sold 8,000 light bulbs at a price of $15/bulb during the year. Also, Brite-On made additional purchases of 4,000 light bulbs in August 2011 at a cost of $7/bulb. Brite-On had the following revenues(in addition to the sales of light bulbs) an additional expenses:Service revenue: $64,000Interest expense on business loans: $4,000Auto expenses (gas, oil, etc): $3,800Taxes and licenses: $3,300Utilities: $2,800Salaries: $24,000John and Ellen also had some personal expenses:Medical bills: $4,500Real property taxes: $3,800State income taxes: $4,000Home mortgage interest: $5,000Charitable contributions (cash): $600The Brites received interest income on a bank savings account of $275. John and Ellen made four $5,000 quarterly estimated tax payments. For self-employment tax purposes, assume John spent 100% of his time at the store while Ellen spends no time at the store.Additional facts:-Equipment acquired in 2007: the Brites elected out of bonus depreciation and did not elect Sec. 179-Equipment acquired in 2012: the Brites elected Sec. 179 to expense the cost of the 5-year equipment but elected out of bonus depreciation-Lease inclusion rules require that Brite-On reduces its deductible lease expense by $8Complete their 2012 Form 1040, Schedules A, C, and SE, form 4562

37)

Green Bay Konkers Corporation prepares quarterly financial statements. The balance sheet at 12/31/13 is presented below. Balance Sheet

12/31/2013

Cash $ 26,500 Accounts payable $ 36,200

Accounts receivable 22,300 Common stock 130,000

Allowance for doubtful accounts (2,000) Retained earn

accounting batch 1 all qustions 11

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