Warranties Winslow Company sold 150 color laser copiers in 2010 for $4,000 apiece, together with a one-year warranty. Maintenance on each copier during the warranty period averages $300. (a) Prepare...
Multiple Choice. Choose the best answer. 1. Which of the following correctly states the role of budgeting in proprietary funds? a. Proprietary fund managers should ensure that a valid appropriation...
Alexandra Bergson has subdivided her 2,000-acre farm into three plots and has contracted with three local farm families to operate the plots. She has instructed each sharecropper to plant three...
Multiple Choice Questions 1. Mittelstaedt Inc., buys 60 percent of the outstanding stock of Sherry, Inc. Sherry owns a piece of land that cost $212,000 but had a fair value of $549,000 at the...
A quant jock from your firm used a linear demand specification to estimate the demand for its product and sent you a hard copy of the results. Unfortunately, some entries are missing because the...
Acme Manufacturing makes a variety of household appliances at a single manufacturing facility. The expected demand for one of these appliances during the next four months is shown in the following...
Consider the following actual and forecast demand levels for Big Mac hamburgers at a local McDonalds restaurant: The forecast for Monday was derived by observing Mondays demand level and setting...
Keith Whittingham, as manager of Designs by Whittingham, is upgrading his CAD software. The high-performance (HP) software rents for $3,000 per month per workstation. The standard-performance (SP)...
Sales of quilt covers at Bud Banis's department store in Carbondale over the past year are shown below. Management prepared a forecast using a combination of exponential smoothing and its collective...
Haley Romeros had just been appointed vice president of the Rocky Mountain Region of the Bank Services Corporation (BSC). The company provides check processing services for small banks. The banks...
Navajo Companys financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2012,...
Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Company's accounting clerk prepared the following...
Yellow Press, Inc. buys paper in 1,500-pound rolls for printing. Annual demand is 2,500 rolls. The cost per roll is $800 and the annual holding cost is 15 percent of the cost. Each order costs $50....
Victor Grimm is confused about how accounting information flows through the accounting system. He believes the flow of information is as follows. (a) Debits and credits posted to the ledger. (b)...
Sekhon Company had a beginning inventory on January 1 of 160 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made. 1,000 units were sold. Sekhon...
Accounting for Goodwill Fred Graf, owner of Graf Interiors, is negotiating for the purchase of Terrell Galleries. The balance sheet of Terrell is given in an abbreviated form below. Graf and Terrell...
Presented below is an amortization schedule related to Spangler Company??s 5-year, $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2010, for $108,660. The following...
Do average citizens benefit from the activities of the SBA, or is the SBA just another way to spend our tax money?
Robert Klassan Manufacturing, a medical equipment manufacturer, subjected 100 heart pacemakers to 5,000 hours of testing. Halfway through the testing, 5 pacemakers failed. What was the failure rate...
The comparative balance sheet of Lankau Enterprises Inc. at December 31, 2014 and 2013 is as follows: Additional data obtained from the income statement and from an examination of the accounts in the...
The following events and transactions relate to a single contribution. 1. A high-tech rm pledged to contribute $1 million in the company's common stock to a university's business school if the school...
Ellen Bright, CEO of TWA Parts (TWAP), looked at the two balanced scorecards before her. One, from the luxury division, showed strong financial results; while the other, from the economy division,...
(Pension Expense, Journal Entries) Latoya Company provides the following selected information related to its defined-benefit pension plan for 2010. (a) Compute pension expense and prepare the journal...
Describe four methods managers can use to acquire information about actual work performance.
The following information is available for the preparation of the government-wide financial statements for the City of Southern Springs as of April 30, 2012: Cash and cash equivalents, governmental...
Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $210. Data for last years operations follow: Required: 1. Assume that the company uses variable...
Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market the stoves at the companys normal volume of 6,000 units per month are shown in the following table....
Loss Contingencies: Entries and Essays Polska Corporation, in preparation of its December 31, 2010, financial statements, is attempting to determine the proper accounting treatment for each of the...
Static versus flexible budget variances Dan Ludwig is the manufacturing production supervisor for Atlantic Lighting Systems. Trying to explain why he did not get the year-end bonus that he had...
Eleanor Burns is attempting to find the nominal rate of interest for each of two securities'A and B'issued by different firms at the same point in time. She has gathered the following data: a. If the...
Answer the following multiple-choice questions: Required a. Which of the following is not considered to be a nonrecurring item? 1. Discontinued operations 2. Extraordinary items 3. Cumulative effect...
1. How would you describe the organizational culture at GM? Why was decision making so slowplodding as one analyst described it? 2. Why do you think the previous CEOs (Mr. Henderson) attempts to...
Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $1,500...
Inventory ErrorsPeriodic Thomason Company makes the following errors during the current year. (In all cases, assume ending inventory in the following year is correctly stated.) 1. Both ending...
Main Street Books and Caf (MSBC) is a large city bookstore that sells books and music CDs and has a caf. MSBC operates at capacity and allocates selling, general, and administration (S, G & A) costs...
Use the following information for The Windshield Pro, a retail merchandiser of auto windshields, to compute the cost of goods sold: Web Site Maintenance.......$ 7,000 Delivery Expense......... 800...
The T accounts below summarize the ledger of Simon Landscaping Company at the end of the first month of operations. Instructions(a) Prepare the complete general journal (including explanations) from...
Multiple Choice Questions 1. A company that uses a minimum attractive rate of return of 10% per year is evaluating new processes to improve operational efficiency. The estimates associated with...
On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $30 million in new projects. The firms present market value...
Accounting Change Ramirez Co. decides at the beginning of 2010 to adopt the FIFO method of inventory valuation. Ramirez had used the LIFO method for financial reporting since its inception on January...
Howies Carpet World has just received an order for carpets for a new office building. The order is for 4,000 yards of carpet 4 feet wide, 20,000 yards of carpet 9 feet wide, and 9,000 yards of carpet...
Leon Manternach, president of Manternach Company, has instructed Carla Ruden, the head of the accounting department for Manternach Company, to report the company's land in the company's accounting...
Gomes Company uses special journals and a general journal. The following transactions occurred during September 2014. Sept. 2 Sold merchandise on account to H. Drew, invoice no. 101, $620, terms...
Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat it...
Robert Wilkins has prepared the following list of statements about process cost accounting. 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous...
Woodbury Hospital has three service departments and three operating departments. Estimated cost and operating data for all departments in the hospital for the forthcoming quarter arc presented in the...
Use the CAFR information for the City of Salem (Illustrations 22 through 216) to find the following items. In your answer, both indicate which financial statement contained the information and the...
Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of $22,000. Each project will last for 3 years and produce the following net annual cash...
1: How would you describe the managerial philosophy of Wal-Mart? What principles are involved? What are the overriding aims, values, and goals of Wal-Mart? 2: Evaluate the management philosophy of...
Claudine Soosay recorded the following times assem-bling a watch. Determine (a) The average time, (b) The normal time, and (c) The standard time taken by her, using a performance rating of 95% and a...
Examine and compare one of the following product sets. Base your comparison on such factors as features, costs, convenience, ease of use, and value. a. GPS versus maps. b. Cell phones versus...
Vulture Sporting Goods reported the following data at March 31, 2010, with amounts adapted in thousands: Vulture Sporting Goods Company Income Statement For the Year Ended March 31, 2010 (Amounts in...
Terry Wade, the new controller of Hellickson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2014. His findings are as follows....
1. Partners Allen, Baker, and Coe share profits and losses 50:30:20, respectively. The balance sheet at April 30, 2011, follows: The assets and liabilities are recorded and presented at their...
Is it possible for HP to function like a smaller company? Why or why not? Imagine this scenario: You need a new digital camera. Youre not sure which one to buy or even what features you need. So you...
Orbital Communications has operating plants in over 100 countries. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 150,000 kronas in Norway worth...
Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 ............. Inventory ............. 120 units at $26 ..... 10 ............. Sale...
Financial Statement Effects of FIFO and LIFO the management of Tritt Company has asked its accounting department to describe the effect upon the company?s financial position and its income statements...
What are some of the possible reasons Scott did not seek or receive advice from her immediate supervisor? Sue Ann Scott was a receptionist at the headquarters of a large corporation. A high school...
Multiply Choice 1. Sequential access means that a. Data are stored on magnetic tape. b. The address of the location of data is found through the use of either an algorithm or an index. c. To read any...
Horace Greeley Corporation was organized in 2013 and began operations at the beginning of 2014. The company is involved in interior design consulting services. The following costs were incurred prior...
An inexperienced accountant prepared this condensed income statement for Sundberg Company, a retail firm that has been in business for a number of years. SUNDBERG COMPANY Income Statement For the...
Green Paper Delivery has decided to analyze the profitability of five new customers. It buys recycled paper at $ 20 per case and sells to retail customers at a list price of $ 26 per case. Data...
1. Evaluate Microsoft's product and marketing evolution over the years. What has the company done well, and where did it falter? 2. Evaluate Microsoft's recent expansions into areas such as search...
On January 5, 2010, Phelps Corporation received a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 50,000 shares of $10 par...
Gig Harbor boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process Required: Prepare...
Comparative financial statements for Weaver Company follow: During 2009, the company sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition,...
Do you think Apple is justified in drawing the observations and conclusions expressed in the case? Why or why not? Do you think it is good or harmful to the company that its executives have voiced...
In each of the cases below, assume that Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of...
Use the following income statements and balance sheets to calculate Garnet Inc.'s free cash flow for 2011. GarnetInc. Income State ment 2011 2010 $500,0 Net sales $530.0 Costs (except depreciation)...
1. Experts say that entrepreneurs who need between $100,000 and $3 million often face the greatest obstacles when raising capital for their businesses. Why? 2. How should Kevin Semcken raise the $1.5...
A production manager at Ultra Clean Dishwashing Company is monitoring the quality of the companys production process. There has been concern relative to the quality of the operation in accurately...
The trim line at PW is a small subassembly line that, along with other such lines, feeds into the final chassis line. The entire assembly line, which consists of more than 900 workstations, is to...
1. Toronto- based Mercedes- Benz Canada, with a network of 55 dealers, did not know enough about its customers. Dealers provided customer data to the company on an ad hoc basis. Mercedes did not...
The town of Dry Gulch needs an additional supply of water from Pine Creek. The town engineer has selected two plans for comparison: a gravity plan (divert water at a point 10 miles up Pine Creek and...
The Bonita Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows. Salaries ...... $8,800 per month Utilities ..... 2,400...
Depreciation ComputationsFive Methods Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2010. It is estimated that it will have a useful life of 10 years, salvage value of $15,000,...
The Budgetary Comparison Schedule for the City of Vienna appears below. Several items of information are missing (denoted**). Required: a. Determine the missing amounts. b. During the year, the City...
Martinez Companys ledger shows the following balances on December 31, 2010. 5% preferred stock$10 par value, outstanding 20,000 shares $ 200,000 Common stock$100 par value, outstanding 30,000 shares...
Account analysis Java Joe Coffees wants to find an equation to estimate monthly utility costs. Java Joes has been in business for one year and has collected the following cost data for utilities:...
Overton Company has gathered the following information. Units in beginning work in process ....... 20,000 Units started into production ......... 164,000 Units in ending work in process ..........
Blacktop Refining extracts minerals from ore mined at two different sites in Montana. Each ton of ore type 1 contains 20% copper, 20% zinc and 15% magnesium. Each ton of ore type 2 contains 30%...
What is the present value of: a. $7,900 in 10 years at 11 percent? b. $16,600 in 5 years at 9 percent? c. $26,000 in 14 years at 6 percent?
Aivars Company reports the following variable costing income statement for its single product. This companys sales totaled 50,000 units, but its production was 80,000 units. It had no beginning...
1. What are some advantages of offering an individual piecerate rate pay plan to the furniture builders at Metropolitan Furniture? 2. What are some advantages of offering a team-based incentive pay...
The following information is available for two different types of businesses for the 2016 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses....
1. Thinking back to our discussion in the chapter section, Caveat EmptorBe An Informed Consumer, evaluate whether the replacement of highly paid workers with lower-paid workers did or did not cause...
The Tsetsekos Company was planning to finance an expansion in the summer of 2004. The principal executives of the company all agreed that an industrial company such as theirs should finance growth by...
Chrome-It, Inc., manufactures special chromed parts made to the order and specifications of the customer. It has two production departments, stamping and plating, and two service departments, power...
The general ledger of Hensley Company contained the following Accounts Payable control account (in T-account form). Also shown is the related subsidiary ledger. Instructions (a) Indicate the missing...
Road Gripper Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,160 tires were as...
Computing and interpreting manufacturing unit costs. Minnesota Office Products (MOP) produces three different paper products at the plant. It currently uses the following three-part classification...
Calgon Products, a distributor of organic beverages, needs a cash budget for September. The following information is available: a. The cash balance at the beginning of September is $9,000. b. Actual...
Canine Gourmet Super Breath dog treats are sold in boxes labeled with a net weight of 12 ounces (340 grams) per box. Each box contains 8 individual 1.5-ounce packets. To reduce the chances of...
Mutual Insurance Company of Iowa (MICI) has a major insurance office facility located in Des Moines, Iowa. The Des Moines office is responsible for processing all of MICIs insurance claims for the...
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plant wide predetermined overhead rate based on machine-hours. At...
You run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What...
Trevor Corporations balance sheet at December 31, 2013, is presented below. During 2014, the following transactions occurred. 1. Trevor paid $2,500 interest on the bonds on January 1, 2014. 2. Trevor...
Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the companys customers are governmental agencies, prices are strictly...
Classification of Costs and Interest Capitalization On January 1, 2010, Blair Corporation purchased for $500,000 a tract of land (site number 101) with a building. Blair paid a real estate brokers...