Questions and Answers of Survey of Accounting

Bass Audio Company manufactures two models of speakers, U500 and S1000. Based on the following production and sales data for June, prepare (a) A sales budget(b) A production budget. U500 S1000
The production supervisor of the Painting Department for Whitley Company agreed to the following monthly static budget for the upcoming year: WHITLEY COMPANY
Wedge Shoe Company is planning a one-month campaign for August to promote sales of one of its two shoe products. A total of $650,000 has been budgeted for advertising, contests, redeemable coupons,
Toyota Motor Corporation (TM) uses target costing. Assume that Toyota marketing personnel estimate that the competitive, average selling price for the Rav4 in the upcoming model year will need to be
Rubber Meets the Road Company has capacity to produce 250,000 tires. Rubber Meets the Road presently produces and sells 100,000 tires for the North American market at a price of $20 per tire. Rubber
Madison Industries Inc. has an annual plant capacity of 800,000 units, and current production is 650,000 units. Monthly fixed costs are $1,200,000 and variable costs are $36 per unit. The present
Happy Hour Coffee Company produces Columbian coffee in batches of 5,000 pounds. The standard quantity of materials required in the process is 5,000 pounds, which cost $3.50 per pound. Columbian
White Noise Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $37,500, the accumulated depreciation
Wisconsin Arts of Milwaukee employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, and other publications for the production. The pages are delivered
Post Technologies Company has been purchasing carrying cases for its portable tablets at a delivered cost of $13.00 per unit. The company, which is currently operating below full capacity, charges
On the basis of the following data, the general manager of Flow Industries Inc. decided to discontinue Half Moon because it reduced operating income by $32,500. What is the flaw in this decision?
The Charles Schwab Corporation (SCHW) is one of the more innovative brokerage and financial service companies in the United States. The company provided information about its major business segments
The condensed product-line income statement for Blonde Espresso Company is as follows:Fixed costs are 40% of the cost of goods sold and 18% of the selling and administrative expenses. Blonde Espresso
A condensed income statement by product line for Yukon Beverages Inc. indicated the following for Whitehorse Cola for the past year:Sales ..............................................$ 1,875,000Cost
Pike Industries is considering selling excess machinery with a book value of $150,000 (original cost of $475,000 less accumulated depreciation of $325,000) for $72,500 less a 5% brokerage commission.
Management of a fast-growing marketer of computer devices has decided to purchase key components of its product from other suppliers. The decision to purchase key product components is an example of
Use the data from E11-12 and assume that break-even sales are $7,347 million. Determine the following for Molson-Coors Brewing Company.1. Margin of safety expressed as dollars of sales. Round to
At a recent staff meeting, the management of Warp Time Technologies Inc. was considering discontinuing its Track Time line of electronic games. The chief financial analyst reported the following
Currently, the unit selling price of a product is $675, the unit variable cost is $450, and the total fixed costs are $405,000. A proposal is being evaluated to increase the unit selling price to
Molson-Coors Brewing Company (TAP) reported the following operating information for a recent year (in millions):Sales
For the current year ending December 31, Fromm Industries expects fixed costs of $930,000, a unit variable cost of $53, and a unit selling price of $63.a. Compute the anticipated break-even sales
For a recent year, McDonald’s (MCD) company-owned restaurants had the following sales and expenses (in millions):Assume that the variable costs consist of food and paper, payroll and employee
a. Old Dominion Company budgets sales of $5,200,000, fixed costs of $550,000 and variable costs of $3,328,000. What is the contribution margin ratio for Old Dominion Company?b. If the contribution
How would each of the following costs be classified if units produced is the activity base?a. Direct materials costsb. Direct labor costsc. Electricity costs of $0.09 per kilowatt-hour
A summary of the time tickets for September is as follows:a. Determine the amounts of factory labor costs transferred to Work in Process and Factory Overhead for September.b. Illustrate the effect on
Rustic Ramblings Furniture Company manufactures furniture. Rustic Ramblings uses a job order cost system. Balances on August 1 from the materials ledger are as follows:Fabric .......................$
Materials issued for the current month are as follows:a. Determine the amount of materials transferred to Work in Process and Factory Overhead for the current month.b. Illustrate the effect on the
The following information is available for the first month of operations of Makin’ It Inc., amanufacturer of arts and craft items:Sales
Starwood Hotels & resorts Worldwide inc. (HOt) and Marriott international inc. (Mar) are two major owners and managers of lodging and resort properties in the United States. Financial data (in
Harley-Davidson, inc. (HOG), is a leading motorcycle manufacturer in the United States. The company manufactures and sells a number of different types of motorcycles, a complete line of motorcycle
The condensed income statements through operating income for apple inc. (aPPL) and Best Buy Co. inc. (BBY) are reproduced below for recent fiscal years (numbers in millions of dollars).Prepare
The table below shows recent stock prices, earnings per share, and dividends per share for three companies.a. Determine the price-earnings ratio and dividend yield for the three companies. Round to
Macy’s, inc. (M), sells merchandise through company-owned retail stores and an Internet website. Recent financial information for Macy’s is provided below (all numbers in millions).Assume the
Three major transportation segments and a major company within each segment are as follows:Segment .............................................................CompanyMotor carriers
Recent balance sheet information for two companies in the snack food industry, the Hershey Company (HsY) and Mondelez international, inc. (MDLZ), is as follows (in millions of dollars):a. Determine
Hasbro (Has) and Mattel, inc. (Mat), are the two largest toy companies in North America. Liability and stockholders’ equity data from recent balance sheets are shown for each company below (in
Costco Wholesale Corporation (COST) and Walmart stores inc. (WMt) compete against each other in general merchandise retailing, gas stations, pharmacies, and optical centers. Below is selected
The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30.a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2)
PepsiCo, inc. (PEP), the parent company of Frito-Lay™ snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years:a. Determine the (1)
The following data were taken from the comparative balance sheet of Icon Living, Inc., for the years ended December 31, 20Y9 and December 31, 20Y8:a. Determine for each year (1) the working capital,
Income statement data for Cascade Images Inc. for the years ended December 31, 20Y5 and 20Y4, are as follows:a. Prepare a comparative income statement with horizontal analysis, indicating the
Revenue and expense data for Tribal Technologies Co. are as follows:a. Prepare an income statement in comparative form, stating each item for both 20Y8 and 20Y7 as a percent of sales. Round to one
Alphabet (GOOG) is a technology company that offers users Internet search and e-mail services. Google also developed the Android operating system for use with cell phones and other mobile devices.
Lowe’s Companies Inc. (LOW) operates over 1,800 home improvement retail stores and is a competitor of The Home Depot (HD). The following data (in millions) were adapted from a recent financial
The Home Depot, Inc. (HD) operates over 2,200 home improvement retail stores and is a competitor of Lowe’s (LOW). The following data (in millions) were adapted from recent financial statements of
Using the data from E8-22, indicate the effects on net assets and EPS of the stock split.Using the data from E8-22Audrey’s Restaurant Corporation wholesales ovens and ranges to restaurants
The following information about the payroll for the week ended September 15 was obtained from the records of Simkins Mining Co.:Tax rates assumed:FICA tax, 7.5% of employee annual earningsState
Three different plans for financing a $5,000,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount,
Audrey’s Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Northwest. Audrey’s Restaurant Corporation, which had 50,000 shares of common stock outstanding, declared
The date of declaration, date of record, and date of payment in connection with a cash dividend of $600,000 on a corporation’s common stock are January 1, March 15, and June 14, respectively.
On August 7, Level Up Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 10,000 shares of $5 par common stock with a current market price of $7. Illustrate the effect on the
On January 29, The Stone Store Inc., a granite contractor, issued 150,000 shares of $20 par common stock for cash at $46 per share, and on May 31, it issued 200,000 shares of $8 par preferred stock
The following note accompanied the financial statements for Goodyear Tire and Rubber Company (GT):We have recorded liabilities totaling $316 million, including related legal fees expected to be
Ford Motor Company (F) disclosed the following estimated product warranty payable for two recent years.Ford’s sales in its automotive sector were $145,653 million in Year 2 and $141,546 million in
A Wrinkle in Time Inc. warrants its products for one year. The estimated product warranty is 1% of sales. Assume that sales were $625,000 for March. In April, a customer received warranty repairs
According to a summary of the payroll of PJW Co., $90,000 in earnings were subject to the 7.5% FICA tax. Also, $30,000 in earnings were subject to state and federal unemployment taxes.a. Compute the
An employee earns $24 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 43 hours during the week. Assume that the FICA tax rate is 7.5%
A business issued a 90-day, 5% note for $60,000 to a creditor for an accounts payable. Illustrate the effects on the accounts and financial statements of recording (a) The issuance of the
By the Month Inc. sold 32,000 annual magazine subscriptions for $10 during December 20Y4. These new subscribers will receive monthly issues, beginning in January 20Y5. By the Month Inc. issued a
When should the liability associated with a product warranty be recorded? Discuss.
When are short-term notes payable issued?
Marriott International Inc. (MAR) and Hilton Wordwide Holdings Inc. (HLT) operate hotels worldwide. The following data (in millions) were adapted from recent financial statements of Marriott and
JetBlue Airways Corporation (JBLU) operates passenger services throughout the United States. The following data (in millions) were adapted from recent financial statements of JetBlue.1. Compute the
Southwest Airlines (LUV) operates passenger services throughout the United States. The following data (in millions) were adapted from a recent financial statement of Southwest.Sales (revenue)
United Continental Holdings, Inc., (UAL), operates passenger service throughout the world.The following data (in millions) were adapted from a recent financial statement of United.Sales
Using the data from E7-3, indicate the effects of purchasing the land on the liquidity metric free cash flow and profitability metric asset turnover. Assume all costs were paid in cash and cash was
Assuming periods of rising prices, indicate the effects of selecting FIFO and LIFO on the liquidity metric days' sales in inventory and profitability metric return on sales.
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 8. Inventory Quantity Market Value per
The following is a partial balance sheet for Zabel Company:Instructions1. List any errors in the preceding balance sheet.2. Prepare a corrected balance sheet. ZABEL COMPANY Balance Sheet December 31,
The units of an item available for sale during the year were as follows: The units of an item available for sale during the year were as follows:There are 90 units of the item in the physical
Using the data in Exercise 6-7, assume that the allowance for doubtful accounts for Sun Valley Rides had a negative balance of $(6,650) as of December 31, 20Y3. Illustrate the effects of the
Sun Valley Rides is a wholesaler of motorcycle supplies. An aging of the company’s accounts receivable on December 31, 20Y3, and a historical analysis of the percentage of uncollectible accounts in
MGM Resorts International (MGM) owns and operates casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. For a recent year, the MGM Resorts International reported accounts and notes
Boeing (BA) is one of the world’s major aerospace firms, with operations involving commercial aircraft, military aircraft, missiles, satellite systems, and information and battle management
A firm has consistently adjusted its allowance account at the end of the fiscal year by adding a fixed percent of the period’s sales on account. After 10 years, the balance in Allowance for
Boston Scientific Corporation (BSX) is a competitor of Synergy Pharmaceuticals Inc. (MBA 5-3). It was organized in 1979 and develops, produces, and sells medical devices. The following data (in
Synergy Pharmaceuticals Inc. (SGYPQ) is a biopharmaceutical company focused on the development and commercialization of novel gastrointestinal therapies. The following data (in thousands) were
Insys Therapeutics Inc. (INYS) is a specialty pharmaceutical company focused on addressing unmet patient needs through novel drug delivery systems. The following data (in thousands) were adapted from
AcelRx Pharmaceuticals, Inc. (ACRX), develops therapies for pain relief for a variety of patients, including cancer and trauma patients. The following data (in thousands) were adapted from financial
The cash account for Highlander Diamond Co. on April 1, 20Y5, indicated a balance of $35,400. During April, the total cash deposited was $120,255, and checks written totaled $109,200. The bank
The following procedures were recently implemented by SUP Yoga Co.:a. Each cashier is assigned a separate cash register drawer to which no other cashier has access.b. All sales are rung up on the
The following bank reconciliation was prepared for Dakota Co.a. Identify the errors in the preceding bank reconciliation.b. Prepare a corrected bank reconciliation. DAKOTA CO. Bank Reconciliation For
The following data were accumulated for use in reconciling the bank account of Wolfpack Bread Inc. for August 20Y9:a. Cash balance according to the company’s records at August 31, $6,865.b. Cash
Identify each of the following reconciling items as: (a) An addition to the cash balance according to the bank statement, (b) A deduction from the cash balance according to the bank
The actual cash received from the day’s cash sales was $3,625, and the amount indicated by the cash register total was $3,640.a. What is the amount deposited in the bank for the day’s sales?b.
Honeybee Hippie is a retail store specializing in women’s clothing. The store has established a liberal return policy for the holiday season in order to encourage gift purchases. Any item purchased
Jittery Joe has recently been hired as the manager of Loyola’s Coffee, a national chain of franchised coffee shops. During his first month as store manager, Jittery encountered the following
Companies with low gross profit and markup percent's often have higher volumes of sales than companies with high gross profit and markup percent's.1. Comment on the preceding statement.2. The
Compare the gross profit percent, average markup percent, and ratio of sales to assets for Deere & Company (DE) and Caterpillar Inc. (CAT) using the results of MBA 4-7 and MBA 4-8. Comment on any
Caterpillar Inc. (CAT) produces and sells various types of equipment, including tractors, loaders, and mining equipment. The following data (in millions) were adapted from recent financial statements
Deere & Company (DE) produces and sells tractors, loaders, combines, lawnmowers, and a variety of other equipment. The following data (in millions) were adapted from recent financial statements
Compare the Target (TGT) results in MBA 4-5 with those of Walmart (WMT) shown in the chapter illustration on pages 169–170. Comment on the differences.Data from MBA 4-5Target Corp. (TGT) operates
Target Corp. (TGT) operates retail stores throughout the United States and is a major competitor of Walmart (WMT). The following data (in millions) were adapted from recent financial statements of
The following selected transactions were completed by SUP Co. during August of the current year:Aug. 3. Purchased merchandise on account for $16,700, terms FOB destination, 2/10, n/30.9. Issued debit
Schofield Co. sold merchandise on account to Bernard Retail Inc. for $10,000, terms 2/10, n/30. The cost of the merchandise sold was $7,500. Assume that Schofield Co. uses the gross method of
The following multiple-step, income statement was prepared for Carlsbad Company.a. Identify the errors in the preceding income statement.b. Prepare a corrected income statement. CARLSBAD COMPANY
On March 31, 20Y5, the balances of the accounts appearing in the ledger of Vibe Tribe Inc. are as follows:a. Prepare a multiple-step income statement for the year ended March 31, 20Y5.b. Compare the
The following expenses were incurred by a retail business during the year. In which expense section of the income statement should each be reported: (a) Selling, (b)
Based on the data presented in Exercise 4-13, illustrate the effects on the accounts and financial statements of Butler Co. for (a) The purchase, (b) The credit for damaged
Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms 2/10, n/30. The cost of the merchandise sold is $51,600. Steritech Co. issues a credit memorandum for

Showing 200 - 300 of 368