Financial Accounting

14. Brownell Inc. currently has annual cash revenues of $240,000 and annual expe

14. Brownell Inc. currently has annual cash revenues of $240,000 and annual expenses of $185,000. The expenses are all cash except for $35,000 of depreciation. The company is cons…

14. Cain Company projects the following sales EEB (Click on the icon to view the

14. Cain Company projects the following sales EEB (Click on the icon to view the projected sales.) Cain collects sales on account in the month after the sale. The Accounts Receiva…

14. Commonwealth Delivery is the worls leading express-distrbution company. In a

14. Commonwealth Delivery is the worls leading express-distrbution company. In adotion to the woro's largest ricet ot all cargo aircrart, the company has more than 668 aircratt an…

14. Costs that are incurred as part of the manufacturing process but are not cle

14. Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturin…

14. Crawford Corporation acquires Nashville, Inc. The parent pays more for it th

14. Crawford Corporation acquires Nashville, Inc. The parent pays more for it than the fair value of the subsidiary's net assets. On the acquisition date, Crawford has equipment w…

14. Equipment which cost $213,000 and had accumuiated depreciation of $114.000 w

14. Equipment which cost $213,000 and had accumuiated depreciation of $114.000 was sold for 213,cco 111,000. This transaction should be shown on the statement of cash flows indire…

14. Equitable, Inc. issued no new common stock and had 100,000 shares issued and

14. Equitable, Inc. issued no new common stock and had 100,000 shares issued and outstanding during 2011. The following information is taken from Equitable's accounting records. N…

14. Fansworth Television makes and sells portable television sets. Each televisi

14. Fansworth Television makes and sells portable television sets. Each television regularly sells $200. The following cost data per television are based on a full capacity of 12.…

14. Gary is a one-third partner in GNG Partners. a general partnership. Gary’s a

14.        Gary is a one-third partner in GNG Partners. a general partnership. Gary’s adjusted basis in his partnership interest is $25,000. Gary received a distribution of real e…

14. George attended university on a part time basis during 20X5. He look two cou

14. George attended university on a part time basis during 20X5. He look two courses in the Fall term and two courses in th t e Spring term. Each term had a duraion of four months…

14. Great Ducks Company uses the allowance method for bad debts. Great Ducks wro

14. Great Ducks Company uses the allowance method for bad debts. Great Ducks wrote off the $500 account receivable from Sneaky Husky Inc. in March 2015. However, in September 2015…

14. Herb Company manufactured more product than it was able to sell during the c

14. Herb Company manufactured more product than it was able to sell during the current year. If the salaries of the sales staff of Herb Company are improperly rocorded as a produc…

14. Icecap Co. at the end of 2018, its first year of operations, prepared a reco

14. Icecap Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income E…

14. Improvements are A) revenue expenditures. B) debited to an appropriate asset

14. Improvements are A) revenue expenditures. B) debited to an appropriate asset account when they increase useful life. C) debited to accumulated depreciation when they do not in…

14. In the manufacture of 6,000 units of a product, direct materials cost incurr

14. In the manufacture of 6,000 units of a product, direct materials cost incurred was $181,600, direct labor cost incurred was $72,000, and applied factory overhead was $49,200. …

14. Indicate whether each of the following expenditures should beclassified as l

14. Indicate whether each of the following expenditures should beclassified as land (L), land improvements (LI), buildings (B),equipment (E), or none of these (X). _____     1. Co…

14. Internal Rate of Return Method The internal rate of return method is used by

14. Internal Rate of Return Method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment…

14. Jasper makes a S25 000, 90 day, 7% cash loan to Clayborn Co. Jasper\'s entry

14. Jasper makes a S25 000, 90 day, 7% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest at maturity should be: A. Debit Cash for $25,000;…

14. JiCo uses the periodic method. Its beginning inventory is $43,000, purchases

14. JiCo uses the periodic method. Its beginning inventory is $43,000, purchases are $321,000, F.O.B. destination, purchase returns are $17,000 and freight is $9,000. The balance …

14. Jim, single, took out a mortgage on his home for $590,000 five years ago. In

14. Jim, single, took out a mortgage on his home for $590,000 five years ago. In September of this year, when the home had a fair market value of $620,000 and he owed $550,000 on …

14. Lease Classication Two years ago, Wolfram Group entered into a 4-year lease

14. Lease Classication Two years ago, Wolfram Group entered into a 4-year lease of a welding machine from Tungsten Industries. At the inception of the lease, there was no bargain …

14. MC.16-093 Reynolds Manufacturers Inc. has estimated total factory overhead c

14. MC.16-093 Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number…

14. Manning Business Exchange uses activity-based costing to compute product cos

14. Manning Business Exchange uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies overhead using prede…

14. Mare Corporation makes three products with the following characteristics: Pr

14. Mare Corporation makes three products with the following characteristics: Products Selling price per unit... $10 $15 $20 Variable cost per unit $6 $10 $10 Machine hours per un…

14. Material is ordered on June 9; the merchandise is shipped by the seller and

14. Material is ordered on June 9; the merchandise is shipped by the seller and the nvoice is prepared, dated, and mailed by the seller on June 10; the merchandise is received by …

14. Montoya Enterprises produces a sword that sells for $200. Although the compa

14. Montoya Enterprises produces a sword that sells for $200. Although the company's production capacity is 3,400 swords per year, only 2,500 swords are currently being produced a…

14. On April 9 of the current year, Job XX4 was completed. The job cost sheet sh

14. On April 9 of the current year, Job XX4 was completed. The job cost sheet showed a total of $4,000 in direct materials and $6,000 in direct labor at a rate of $20 per direct l…

14. On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its

14. On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. Use MACRS Table. (Loss am…

14. On August 1, 2017, Paige\'s Dance Company borrows $45,000 from Adirondack Ba

14. On August 1, 2017, Paige's Dance Company borrows $45,000 from Adirondack Bank on a note. What amount of interest expense will be accrued on December 31, 2017? A. $900 B. $2,02…

14. On January 1, 2016 Hoosier Company purchased S932.000 of 10% bonds at face v

14. On January 1, 2016 Hoosier Company purchased S932.000 of 10% bonds at face value. The bond market value was $981,000 on December 31, 2016. Required: Prepare the appropriate jo…

14. On November 1, 2018, Aviation Training Corp. borrows $45,000 cash from Commu

14. On November 1, 2018, Aviation Training Corp. borrows $45,000 cash from Community Savings and Loan. Aviation Training signs a three-month, 6% note payable. Interest is payable …

14. Pension Worksheet -Missing Amounts The accounting staff of Elias Inc. has pr

14. Pension Worksheet -Missing Amounts The accounting staff of Elias Inc. has prepared the following pension worksheet. Unfortunately, several entries in the worksheet are not rea…

14. Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2011. Th

14. Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2011. They have a ten year tem and pay interest semiannually. This is the partial bond amortization schedul…

14. Required information The Foundational 15 [LO10-1, LO10-2, LO10-3] [The follo

14. Required information The Foundational 15 [LO10-1, LO10-2, LO10-3] [The following information applies to the questions displayed below.] Preble Company manufactures one product…

14. Rogers Corporation is preparing its cash budget for July. The budgeted begin

14. Rogers Corporation is preparing its cash budget for July. The budgeted beginning cash balance is $25,000. Budgeted cash receipts total $141,000 and budgeted cash disbursements…

14. Sally received $60,600 of compensation from her employer and she received $6

14. Sally received $60,600 of compensation from her employer and she received $630 of interest from a corporate bond. What is the amount of Sally's gross income from these items? …

14. Sarro Shipping, Inc., expects to earn $1.3 million. There are 100,000 shares

14. Sarro Shipping, Inc., expects to earn $1.3 million. There are 100,000 shares of stock outstanding, so earnings per share equal $13 ($1,300,000/100,000). The firm will have an …

14. Select the incorrect statement regarding the use of cost drivers in activity

14.   Select the incorrect statement regarding the use of cost drivers in activity-based costing systems. A.    ABC uses volume-based and activity-based cost drivers. B.    Volume…

14. Stanley Company had inventory of $220,000 and $180,000 on December 31, 1998,

14. Stanley Company had inventory of $220,000 and $180,000 on December 31, 1998, and December 31, 1999, respectively. Cost of goods sold for 1999 was $1.200,000. Average days to s…

14. Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch

14. Stinehelfer Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $35 to buy from farmers and $9 to crush in the company's plant. Two intermedi…

14. Terminal cash flow Replacement decision Russell Industries is considering re

14. Terminal cash flow Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more…

14. The Absolate Most Brllat Profesor Mallen Coempuny\'s activity for the fist m

14. The Absolate Most Brllat Profesor Mallen Coempuny's activity for the fist months of 2011 are as follows Machine Hours Electrical Cost January February March 2,100 2,600 2,900 …

14. The aging of accounts receivable method is based upon the principle that the

14. The aging of accounts receivable method is based upon the principle that the longer an account is overdue, the higher the risk o nonpayment True False 13. Internal control sys…

14. The balance sheet is useful for analyzing all of the following exeept financ

14. The balance sheet is useful for analyzing all of the following exeept financial flexibility. B) profitability. C) liquidity. D) solvency. 15. Collection of a loan is reported …

14. The computation of unit product costs involves an averaging process in: Job-

14. The computation of unit product costs involves an averaging process in: Job-order costing Process costing No Yes Yes No No No 15. The Staple Company uses predetermined overhea…

14. The cost of production of completed and finished goods during the period amo

14. The cost of production of completed and finished goods during the period amou to $ 400,000 and the finished products shipped to customers had total production cost $ 337,000. …

14. The financial statement that business for a presents a summary of the revenu

14. The financial statement that business for a presents a summary of the revenues and expenses of a specific period of time, such as a month or year, is called a(n) a. prior peri…

14. The following events occurred at Jack Company during its first year of busin

14. The following events occurred at Jack Company during its first year of business: a. To establish the company, the two owners contributed a total of $60,000 in exchange for com…

14. The following information relates to the Smith Company for 2002: Cash divide

14.       The following information relates to the Smith Company for 2002: Cash dividend declared $ 300 Retained earnings, January 1, 2006 ? Net income 580 Error in 2005 - oversta…

14. The following information relates to the Smith Company for 2002: Cash divide

14.       The following information relates to the Smith Company for 2002: Cash dividend declared $ 300 Retained earnings, January 1, 2006 ? Net income 580 Error in 2005 - oversta…