Questions and Answers of Accounting Principles IFRS

Using a financial calculator, solve for the unknowns in each of the following situations.a. On June 1, 2019, Jennifer Lawrence purchases lakefront property from her neighbor, Josh Hutcherson, and
Using a fi nancial calculator, solve for the unknowns in each of the following situations.a. On June 1, 2019, Jennifer Lawrence purchases lakefront property from her neighbor, Josh Hutcherson, and
On July 17, 2019, Keith Urban borrowed $42,000 from his grandfather to open a clothing store. Starting July 17, 2020, Keith has to make 10 equal annual payments of $6,500 each to repay the loan. Use
Armstrong Helmet Company needs to determine the cost for a given product. For this case, you will have the opportunity to explore cost-volume-profit relationships and prepare a set of budgets.
For this case, revisit the Greetings Inc. company presented in earlier chapters. The company is now searching for new opportunities for growth. This case will provide you with the opportunity to
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual revenues would
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $140,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows
Kansas Company uses a standard cost accounting system. In 2020, the company produced 28,000 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a
Kansas Company uses a standard cost accounting system. In 2020, the company produced 28,000 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a
The information shown below was taken from the annual manufacturing overhead cost budget of Connick Company.Variable manufacturing overhead costs ................................. $34,650Fixed
Fisk Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances.In addition, 8,000 units of product were sold at $8 per unit. Each unit
Urban Corporation prepared the following variance report.InstructionsFill in the appropriate amounts or letters for the question marks in the report. Urban Corporation Variance Report-Purchasing
Parsons Company is planning to produce 2,000 units of product in 2020. Each unit requires 3 pounds of materials at $5 per pound and a half-hour of labor at $16 per hour. The overhead rate is 70% of
Durham Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each division has three production departments: Cutting, Shaping, and Finishing. The
Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for
Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2020, are as shown below.In addition, Clarke incurs $180,000 of
Horatio Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows.Instructionsa. Compute the missing amounts. Show
The Mixing Department manager of Malone Company is able to control all overhead costs except rent, property taxes, and salaries. Budgeted monthly overhead costs for the Mixing Department, in
Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2020 contained the following data.Actual variable costs were indirect materials $13,500, indirect labor $9,500, utilities
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October.As a result of this budget report,
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October.As a result of this budget report,
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are
Sweats Galore is a new business venture that will make custom sweatshirts using a silk-screen process. In helping the company’s owner, Michael Woods, set up his business, you will have the
Auburn Circular Club is planning a major fundraiser that it hopes will become a successful annual event: sponsoring a professional rodeo. For this case, you will encounter many managerial accounting
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in
Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below.An accounting assistant has prepared the detailed manufacturing
Waterways Corporation is considering various business opportunities. It wants to make the best use of its production facilities to maximize income. This problem asks you to help Waterways do
Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $213,000 and the following divisional results.Analysis reveals
Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $213,000 and the following divisional results.Analysis reveals
Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $213,000 and the following divisional results.Analysis reveals
Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $213,000 and the following divisional results.Analysis reveals
ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity:Sales (350,000 units)
The controller of Rather Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs.Instructionsa. Determine the fixed- and variable-cost
In 2019, Manhoff Company had a break-even point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2020, the selling price and the variable costs per unit did not
Harris Furniture Company manufactures living room furniture through two departments: Framing and Upholstering. Materials are entered at the beginning of each process. For May, the following cost data
Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost
Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling
The Welding Department of Majestic Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process. Majestic uses the FIFO
In Shady Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing
The primary purpose of managerial accounting is to provide information useful for management decisions. Many of the managerial accounting techniques that you learn in this course will be useful for
To employ comparative data and industry data to evaluate a company’s performance and financial position.InstructionsIdentify two competing companies and then go to the Money homepage of the MSN
Amazon.com, Inc.’s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. The complete annual reports for Amazon and Wal-Mart,
Amazon.com, Inc.’s fi nancial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. The complete annual reports for Amazon and Wal-Mart,
Classify each item as an operating, investing, or financing activity. Assume all items involve cash unless there is information to the contrary.a. Purchase of equipment.b. Proceeds from sale of
Molino Inc. reported sales revenue of $2 million for 2020. Accounts receivable decreased $200,000 and accounts payable increased $300,000. Compute cash receipts from customers, assuming that the
At the beginning of the question-and-answer portion of the annual stockholders’ meeting of Neosho Corporation, stockholder John Linton asks, “Why did management sell the holdings in JMB Company
Amazon.com, Inc.’s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. The complete annual reports of Amazon and Wal-Mart,
Amazon.com, Inc.’s fi nancial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. The complete annual reports of Amazon and Wal-Mart,
PepsiCo’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola,
The annual report of Apple Inc. is presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the company’s website.Instructionsa.
Debby Kauff man and her two colleagues, Jamie Hiatt and Ella Rincon, are personal trainers at an upscale health spa/resort in Tampa, Florida. They want to start a health club that specializes in
Harding Financial Services Company holds a large portfolio of debt and equity securities as an investment. The total fair value of the portfolio at December 31, 2020, is greater than total cost. Some
Ling Corporation uses the equity method to account for its ownership of 35% of the common stock of Gorman Packing. During 2020, Gorman reported a net income of $80,000 and declares and pays cash
Quigley Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.Unrecorded transactions and
Quigley Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.Unrecorded transactions and
The adjusted trial balance for Karr Farm Corporation at the end of the current year contained the following accounts.Interest Payable ............................... $ 9,000Lease Liability
In the past year, Gosser Corporation declared a 10% stock dividend, and Jenks, Inc. announced a 2-for-1 stock split. Your parents own 100 shares of each company’s $50 par value common stock. During
The stockholders’ equity accounts of Gonzalez, Inc., at January 1, 2020, are as follows.Preferred Stock, no par, 4,000 shares issued ........................... $400,000Common Stock, no par,
The financial statements of Apple Inc. are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the company’s
The following stockholders’ equity accounts arranged alphabetically are in the ledger of Westin Corporation at December 31, 2020.Common Stock ($10 stated value)
On January 1, 2020, Goodhue Inc. had the following stockholders’ equity balances.Common Stock (400,000 shares issued) ........................................ $800,000Paid-in Capital in Excess of
On January 1, 2020, Ven Corporation had the following stockholders’ equity accounts.Common Stock (no par value, 90,000 shares issued and outstanding) ................. $1,600,000Retained Earnings
The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its financial statements, is available at the company’s
The stockholders’ meeting for Percival Corporation has been in progress for some time. The chief financial officer for Percival is presently reviewing the company’s financial statements and is
Amazon.com, Inc.’s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. The complete annual reports of Amazon and Wal-Mart,
PepsiCo, Inc.’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola,
PepsiCo, Inc.’s fi nancial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola,
The following stockholders’ equity accounts arranged alphabetically are in the ledger of Galindo Corporation at December 31, 2020.Common Stock ($5 stated value)
The stockholders’ equity section of Aluminum Company of America (Alcoa) showed the following (in alphabetical order): additional paid-in capital $6,101, common stock $925, preferred stock $56,
The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Eudaley Corporation at December 31, 2020.Common Stock ($5 stated value)
On January 1, 2020, the stockholders’ equity section of Newlin Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings
Hoyle Corporation has issued 100,000 shares of $5 par value common stock. It authorized 500,000 shares. The paid-in capital in excess of par on the common stock is $263,000. The corporation has
Fouts Corporation purchased 2,000 shares of its $10 par value common stock for $130,000 on August 1. It will hold these shares in the treasury until resold. On December 1, the corporation sold 1,200
Beauty Island Corporation began operations on April 1 by issuing 60,000 shares of $5 par value common stock for cash at $13 per share. On April 19, it issued 2,000 shares of common stock to attorneys
How many shares of common stock did Apple have outstanding at September 26, 2015, and at September 27, 2014?
At the end of its first year of operations on December 31, 2020, NBS Company’s accounts show the following.The capital balance represents each partner’s initial capital investment. Therefore, net
The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to the financial statements, is available at the company’s
The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to the fi nancial statements, is available at the company’s
Amazon.com Inc.’s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. The complete annual reports of Amazon and Wal-Mart,
PepsiCo, Inc.’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola,
The financial statements of Apple Inc. are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the company’s
Morgan Company’s balance sheet at December 31, 2019, is presented below.During January 2020, the following transactions occurred. (Morgan Company uses the perpetual inventory system.)1. Morgan paid
For the year ended December 31, 2020, Denkinger Electrical Repair Company reports the following summary payroll data.Gross earnings:Administrative salaries ...............................
The following payroll liability accounts are included in the ledger of Harmon Company on January 1, 2020.FICA Taxes Payable ............................................. $ 760.00Federal Income Taxes
Mann Hardware has four employees who are paid on an hourly basis plus time-and-ahalf for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2020, are presented
On January 1, 2020, the ledger of Accardo Company contains the following liability accounts.Accounts Payable ........................ $52,000Sales Taxes Payable ....................... 7,700Unearned
Employee earnings records for Slaymaker Company reveal the following gross earnings for four employees through the pay period of December 15.For the pay period ending December 31, each employee’s
Betancourt Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Betancourt estimates that 3% of the units sold will become defective during
In January, the payroll supervisor determines that gross earnings for Carlyle Company are $120,000. All earnings are subject to 7.65% FICA taxes, 5.4% state unemployment taxes, and 0.8% federal
Amazon.com, Inc.’s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. The complete annual reports of Amazon and Wal-Mart,
PepsiCo, Inc.’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola,
PepsiCo, Inc.’s fi nancial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola,
The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its financial statements, is available at the company’s
Winter Company’s balance sheet at December 31, 2019, is presented below.During January 2020, the following transactions occurred. Winter uses the perpetual inventory method.Jan. 1 Winter accepted a
The adjusted trial balance of Gibson Company for the year ended December 31, 2020, is as follows:InstructionsPrepare a multiple-step income statement, retained earnings statement, and a classified
Presented below is an aging schedule for Halleran Company.At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,000.Instructionsa. Journalize and post the

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