Operating leverage Color Rugs is holding a two-week carpet sale at Jerrys Club, a local warehouse store. Color Rugs plans to sell carpets for $500 each. The company will purchase the carpets from a...

Architectural Consultants began operations on January 2. The following activity was recorded in the companys Work in Process account for the first month of operations: Leeds Architectural Consultants...

Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow: The company...

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day: Beginning WIP...

How might sleep deprivation influence aspects of expectancy theory? How might the incorporation of nap rooms for sleep-deprived employees influence aspects of equity theory?

As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1. LR Corporation is a closely held corporation whose stock is not...

Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. (a) Invested cash in business, $18,000. (b) Bought office supplies for $4,600: $2,000 in...

Plevin Company ended its fiscal year on July 31, 2014. The companys adjusted trial balance as of the end of its fiscal year is shown below. Instructions (a) Prepare the closing entries using page...

Partridge Theatre Inc. owns and operates movie theaters throughout Texas and Oklahoma. Partridge Theatre Inc. has declared the following annual dividends over a six year period: 2009, $18,000; 2010,...

Luster, Inc., produces the basic fillings used in many popular frozen desserts and treats vanilla and chocolate ice creams, puddings, meringues, and fudge. Luster uses standard costing and carries...

Do you believe the field of organizational behavior has the potential to become prescriptive as opposed to descriptive? Why or why not?

How does the project act as a stepping-stone for the project managers career?

Explain how both positive and negative attitudes toward a brand like Porsche develop. How might Porsche change consumer attitudes toward the brand? Porsche (pronounced Porsh-uh) is a unique company....

The Executive board of a relatively small university located in Europe wants to determine the attitude of their students toward various aspects of the University. The university, founded in 1928, is...

Boulanger Savings and Loan is proud of its long tra-dition in Winter Park, Florida. Begun by Michelle Boulanger 22 years after World War II, the S& L has bucked the trend of financial and liquidity...

Benjamin Neves bowling ball factory in Pennsyvania makes bowling balls of adult size and weight only. The standard deviation in the weight of a bowling ball produced at the factory is known to be...

On January 1, 2014, Peregrine Corporation acquired 100 percent of the voting stock of Osprey Corporation in exchange for $2,017,000 in cash and securities. On the acquisition date, Osprey had the...

Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost, and sales data for the two products follow: Fixed expenses total $475,800 per year. The...

Valerie Fons operates a retail clothing operation. She purchases all merchandise inventory on credit and uses a periodic inventory system. The Accounts Payable account is used for recording inventory...

The budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2017. 1. Sales for May are expected to be...

P&Gs impressive portfolio includes some of the strongest brand names in the world. What are some of the challenges and risks associated with being the market leader in so many categories?

Timing Technology Inc. manufactures timing devices. During 20x1, 900,000 Units were completed and transferred to finished-goods inventory. On December 31, 20x1 there were 300,000 units in work in...

On January 1, 2014, Aumont Company sold 12% bonds having a maturity value of $500,000 for $537,907.37, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2014, and mature...

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven- month period were as follows: Month Sales (000 units) Feb. . 19 Mar. . 18 Apr. . 15 May . 20 Jun. . 18 Jul. . 22...

Pepper Inc. is expected to have before-tax earnings of $2.5 million next year. The tax rate is 35 percent. There are 2 million common shares outstanding. Comparable firms in the same industry are...

The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel Inc. common stock was $119.70 on December 31, 2014. Liabilities Instructions Determine the following...

The comparative balance sheet of Middaugh Restaurant Supplies Inc. for December 31, 2013 and 2012, is as follows: The income statement for the year ended December 31, 2012, is as follows: The...

Jessica Boland works for Sea Biscuit Co. She and Farah Smith, her manager, are preparing adjusting entries for annual financial statements. Boland computes depreciation and records it as Depreciation...

In 2012, George wright started the Old Oregon Wood Store to man-ufacture Old Oregon tables. Each table is carefully constructed by hand using the highest- quality oak. Old Oregon tables can support...

A shop works a 400- minute day. The manager of the shop wants an output of 200 units per day for the assembly line that has the elemental tasks shown in the table. Do the following: a. Construct the...

Hayward Company, a manufacturing firm, has supplied the following information from its accounting records for the month of May: Direct labor cost ................$10,500 Purchases of raw materials...

You are the in-charge on the audit of Vandervoort Company and are to review the audit schedule shown above. Required a. List the deficiencies in the audit schedule. b. For each deficiency, state how...

1. Think about the research evidence discussed in the book. Would you expect the Sullivan & Cromwell associates to feel their pay structure is fair? What comparisons would they likely make? What work...

Multiple-choice questions: a. Audit opinions cannot be classified as which of the following? 1. All-purpose 2. Disclaimer of opinion 3. Adverse opinion 4. Qualified opinion 5. Unqualified opinion b....

On January 1, 2017, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each, with the first payment due one year after the note is...

Error Corrections and Accounting Changes Penn Company is in the process of adjusting and correcting its books at the end of 2010. In reviewing its records, the following information is compiled. 1....

Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti...

Rays Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model is 1,000 units. His cost to carry...

Santana Rey created Business Solutions on October 1, 2011. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up...

Chef Whiz manufactures premium food processors. The following are some manufacturing overhead data for Chef Whiz for the year ended December 31, 2014: Budgeted number of output units: 588 Planned...

a. Given the following graphs, calculate the total fixed costs, variable costs per unit, and sales price for Firm A. Firm Bs fixed costs are $120,000, its variable costs per unit are $4, and its...

1. How comparable are the two different methods? In what ways are they similar? In what ways are they different? 2. What are the positive and negative aspects of each approach that Shocker should...

Inventoriable CostsError Adjustments Werth Company asks you to review its December 31, 2010, inventory values and prepare the necessary adjustments to the books. The following information is given to...

1. Activity R on a CPM network has predecessors M and N, and has successor S. R has duration 5. N's late finish is 18, while M's is 20. S's late start is 14. Which of the following is definitely...

You are auditing payroll for the Morehead Technologies Company for the year ended October 31, 2011. Included next are amounts from the client's trial balance, along with comparative audited...

A cell phone company offers two different plans. Plan A costs $80 per month for unlimited talk and text. Plan B costs $0.20 per minute plus $0.10 per text message sent. You need to purchase a plan...

Ian Muse has prepared the following list of statements about the time period assumption. 1. Adjusting entries would not be necessary if a companys life were not divided into artificial time periods....

Lenovo uses the ZX- 81 chip in some of its laptop computers. The prices for the chip during the past 12 months were as follows: a) Use a 2- month moving average on all the data and plot the averages...

The qualitative characteristics that make accounting information useful for decision-making purposes are as follows. Relevance Neutrality Verifiability Faithful representation Completeness...

Deanna Nardelli started her own consulting firm, Nardelli Consulting, on May 1, 2014. The trial balance at May 31 is as follows. In addition to those accounts listed on the trial balance, the chart...

1. What type of credit user is Garth? Based on your answer, what is the number one factor that should influence Garth's choice of a credit card? 2. Lindsey insisted that Garth request a free credit...

Noah Bahr Company discovered the following errors made in January 2017. 1. A payment of Salaries and Wages Expense of $700 was debited to Equipment and credited to Cash, both for $700. 2. A...

Multiple Choice. Choose the best answer. 1. The FASBs objectives of financial reporting for not-for-profit organizations include all of the following except: a. Making resource allocation decisions....

Outdoor Expo provides guided fishing tours. The company charges $300 per person but offers a 20% discount to parties of four or more. Consider the following transactions during the month of May. May...

Is Ciscos plan to reach out to consumers a viable one? Why or why not?

Hobart, Evans, and Nix is a small law firm that employs 10 partners and 12 support persons. The firm uses a job-order costing system to accumulate costs chargeable to each client, and it is organized...

Jeffrey Helm owns a health and fitness center called Bulk- Up in Harrisburg. He is considering adding more floor space to meet increasing demand. He will either add no floor space ( N), a moderate...

1. Macys, Inc., through its subsidiaries, operates approximately 800 department stores in the United States. Its retail stores sell a range of merchandise, including apparel, home furnishings, and...

The Village of Harris issued $5,000,000 in 6 percent general obligation, taxsupported bonds on July 1, 2011, at 101. A fiscal agent is not used. Resources for principal and interest payments are to...

Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas...

Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone Sellers then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines. Assume that...

The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2012, the last day of its fiscal year. The enterprise fund was established this year through a...

The Munchkin Theater is a nonprofit organization devoted to staging theater productions of plays for children in Toronto, Canada. The theater has a very small full-time professional administrative...

On January 1, 2008, Crocker Company issued 10-year, $2,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Crocker common stock . Crockers net income in 2008 was...

Riot Company issued $500,000, 15-year, 7% bonds at 96. Instructions (a) Prepare the journal entry to record the sale of these bonds on January 1, 2014. (b) Suppose the remaining Discount on Bonds...

Various activities at Morales Corporation, a manufacturing company, are listed below. Each activity has been classified as unit-level, batch-level, product-level, customer-level, or...

Figure is a level 1 data flow diagram of data movement in a Niagara Falls tour agency called Marilyns Tours. Read it over, checking for any inaccuracies. a. List and number the errors that you have...

The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm...

Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as...

A firm raises capital by selling $20,000 worth of debt with flotation costs equal to 2% of its par value. If the debt matures in 10 years and has a coupon interest rate of 8%, what is the bonds YTM?

Clapton Company manufactures custom guitars in a wide variety of styles. The following incomplete ledger accounts refer to transactions that are summarized for May: In addition, the following...

After being observed many times, Beverly Demarr, a hospital lab analyst, had an average observed time for blood tests of 12 minutes. Beverlys performance rating is 105%. The hospital has a personal,...

Skinny Dippers, Inc., produces nonfat frozen yogurt which it sells to restaurants and ice cream shops. The product is sold in 10-gallon containers, which have the following price and variable costs....

A.J's Wildlife Emporium manufactures two unique bird feeders (Deluxe and Super Duper) that are manufacture and assembled in up to three different workstations (X, Y, Z) using a small batch process....

The PlayBetter Golf Company has experienced a steady decline in sales of golf bags over the past five years. The basic golf bag design has not changed over that period, and PlayBetters CEO, Jack...

Youngman Corporation has temporary differences at December 31, 2010, that result in the following deferred taxes. Deferred tax liabilitycurrent...........................$38,000 Deferred tax...

1. Fiduciary funds include four different types of funds. Which of the following is not one of these types? a. Agency funds b. Tax collection funds c. Private-purpose trust funds d. Pension trust...

Hampton Company reports the following information for its recent calendar year. Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 160,000 Expenses Cost of goods sold . . . . . . . ....

Garlington Technologies Inc.'s 2010 financial statements are shown below: Balance Sheet as of December 31, 2010 Suppose that in 2011 sales increase by 10% over 2010 sales and that 2011 dividends will...

(a) On January 1, 2012, Fishbone Corporation sold a building that cost $250,000 and that had accumulated depreciation of $100,000 on the date of sale. Fishbone received as consideration a $240,000...

On March 3, Beachy Appliances sells $710,000 of its receivables to National Factors Inc. National Factors Inc. assesses a service charge of 4% of the amount of receivables sold. Instructions Prepare...

1. What financial statements should Rudabeh and Donovan prepare to begin realizing their home purchase goal? What records should they use to compile these statements? 2. Use the worksheets, or simply...

An analysis of the transactions made by Mark Kotsay & Co., a certified public accounting firm, for the month of August is shown below. The expenses were $650 for rent, $4,800 for salaries and wages,...

Molly Riggss medical testing company wishes to assign a set of jobs to a set of machines. The following table provides the production data of each machine when performing the specific job: (a)...

Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $213,000 and the following divisional results. Analysis...

Warranty and Coupon Computation Schmitt Company must make computations and adjusting entries for the following independent situations at December 31, 2011. 1. Its line of amplifiers carries a 3-year...

Direct materials and direct manufacturing labor variances. GloriaDee, Inc., designs and manufactures T-shirts. It sells its T-shirts to brand-name clothes retailers in lots of one dozen. GloriaDees...

Schultz Electronics manufactures two large-screen television models: the Royale which sells for $1,600, and a new model, the Majestic, which sells for $1,300. The production cost computed per unit...

The July 28, 2007, issue of the Wall Street Journal includes an article by Kathryn Kranhold entitled GEs Accounting Draws Fresh Focus on News of Improper Sales Bookings. Instructions Read the article...

On March 1, 2014, Zobrist Company acquired real estate, on which it planned to construct a small office building, by paying $80,000 in cash. An old warehouse on the property was demolished at a cost...

The condensed product- line income statement for Dish N Dat Company for the month of March is as follows: Fixed costs are 15% of the cost of goods sold and 40% of the selling and administrative...

At the beginning of 2015, Brads Heating & Air (BHA) has a balance of $26,000 in accounts receivable. Because BHA is a privately owned company, the company has used only the direct write-off method to...

Heartland Companys budgeted sales and budgeted cost of goods sold for the coming year are $144,000,000 and $99,000,000 respectively. Short-term interest rates are expected to average 10%. If...

Clonex Labs, Inc., uses a process costing system. The following data are available for one department for October: The department started 175,000 units into production during the month and...

Presented below are various account balances of K.D. Lang Inc. (a) Unamortized premium on bonds payable, of which $3,000 will be amortized during the next year. (b) Bank loans payable of a winery,...

Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2014. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production...

Jerry Bilderys factory is considering three approaches for meeting an expected increase in demand. These three approaches are increasing capacity, using overtime, and buying more equipment. Demand...

Winston Industries and Ewing Inc. enter into an agreement that requires Ewing Inc. to build three diesel-electric engines to Winstons specifications. Upon completion of the engines, Winston has...

What credibility does Mr. Rutland have? Is he a leader? MINI CASE Mr. Robert Rutland, founder of the National Jazz Hall of Fame, poured himself another drink as he listened to some old jazz...

Joel Blocker engaged in the following activities in establishing his photography studio, Picture This! 1. Opened a bank account in the name of Picture This! And deposited $8,000 of his own money into...