Accounting Questions and Answers July 17, 2023

On July 17, 2020, Hernan places in service a used automobile that cost $25,000. The car is used 80% for business and 20% for personal use. In 2021, he used the automobile 40% for business and 60% for personal use. Hernan chooses not to take 179 or

Given The Following Data: Smith & Sons, Inc Balance Sheet December 31, 2016 and 2015 (In millions) 2016 ($) 2015 ($) Assets Current assets Cash and cash equivalents 200 400 Accounts receivable 900 800 Inventory 500 650 Other Current assets 400 250

In real estate markets demand for housing can increase due to Immigration Economic growth Low unemployment All of the above

Assume that the amount of one of a companys variable expenses in its flexible budget is $40,000. The actual amount of the expense is $42,000 and the amount in the companys planning budget is $42,000. The activity variance for this expense would be?

You receive an inheritance of $300,000 and promptly invest it in an account which yields an 8% annual return, compounded monthly. If you withdraw $1,800 at the beginning of each month, how long will the $300,000 last?

A company paid $3.40 in cash dividends per share. Its earnings per share is $14.20 and its market price per share is $60. What is its dividend yield?

Suppose your company sells services for $425 cash this month. Your company also pays $250 in salaries and wages, which includes $115 that was payable at the end of the previous month and $135 for salaries and wages of this month. Required: Prepare

Hans purchased a new passenger automobile on August 17 2020 for 30000 During the year the car was used 40 for business and 60 for personal use Determine his cost recovery deduction for the car for 2020 a 500 Ob 1000 c 1200 Od 1333 Oe None of the

Maxwell estimates rental costs of $2,000 per month, utilities of $300 per month, a one-time investment in store design of $7,000 and recurring salary expenses of $5,000 per month. He expects this change to increase sales revenue to 8 times its

Big Pharmacy Inc. acquired Small Pharmacy Inc. for $15 billion cash on January 1st, 2025. The assets purchased include finite-life intangible assets with a fair value of $9 billion, in process R&D with a fair value of $4 billion, and property with a

On Jan 1st, 2022: Dealers Inc. buys 30 cars from Chevy Motors for $1,800,000 total. Dealers must also pay InsureCars Inc. $24,000 for shipping insurance, $33,000 to Chevy for destination charges, incur $12,000 in expenses for unloading, cleaning,

Venus Medical Devices delivers 100 pacemakers on consignment to Moon Hospital systems on January 1st, 2022, with each pacemaker being recorded in Venus's inventory at $5,000. In the year 2022, between Jan 1st and December 31st, Moon Hospital uses 35

Saturn transfers a customer (Mango Inc.'s) accounts receivable of $5,000,000 with recourse to Orange Bank. Orange Bank immediately transfers 95% of the value cash to Saturn and retains the remaining 5% of which 2% is their factoring fee and 3% is a

If Larraine invested $24,000 at 5% on her 20 th birthday, how much would Larraine have on her 40 th birthday?

On January 1st, 2023, Mars Inc. buys a zero-coupon bond with a face value of $100,000, which is due in 2 years (due Dec 31st, 2024) with an interest rate of 10%. It records the bond as a Held-to-Maturity investment (HTM). What will be the amortized

On January 1st, 2022, Motors Inc. bought 30% of the outstanding stock of Bicycle Inc. for $6,000,000. Bicycle Inc. also paid a dividend of $100,000 to all shareholders on December 31st, 2022. Additionally, as of December 31st, 2022, Bicycle Inc.

What term refers to the categories used to record accounting transactions? trial balance statement of income chart of accounts statement of financial position

With what type of account would an institution have the option of requiring depositors to give seven days written advance notice of a withdrawal? A. A savings deposit B. A transaction account C. A nonpersonal time deposit account

Pay mix policy may be expressed in ________. A. dollars expressing total payroll taxes paid in a given year B. a percentage of total dollars allocated for compensation C. wages and benefits D. hours spent on the job E. total savings in compensation

Brown Corporation had the following accounting events 1 The ledger shows a Cash account balance of 1495 debit balance as of September 30 2 A nonsufficient funds check for 225 was returned to Brown Corporation 3 Deposits in transit in the amount of

The following transactions occurred in the City of Jimtown Enterprise Fund 1 Equipment belonging to the Enterprise Fund was sold for 300 2 The proceeds from the sale of the asset were transferred to the General Fund 3 Cash 2800 was paid for

Cereality is a cereal bar and caf designed to appeal to college students and others who love the idea of mixing Cocoa Puffs and Lucky Charms at almost any time of the day Assume the following cost structure for Cereality Cereal 375 075 Unit

How does the cost of goods manufactured relate to the income statement? a. Does not relate to income statement b. Reduces cost of goods sold c. Increases cost of goods sold d. Increases finished goods

You have a friend who has decided to start using electronic bank transfers to make purchases. He has many questions about it. Explain some of the advantages and disadvantages of using electronic bank transfers in all its forms (payment apps, mobile

Jace and Associates provides professional consulting services to a variety of clientele in an effort to help them improve the operating effectiveness and profitability of their businesses The companys accountant established budgeted direct labor

Theo Simons son has been making contributions into an individual retirement account to help pay for his children to go to college. Which type of account is he most likely using?

Nick Limited of England has two regions of operation London and Manchester Selected data on the two divisions follow Division report London 4500 20 12 30000 Unit Sales Selling price Variable cost per unit Fixed expenses Manchester 10000 20 12 68000

Sahara is an enterprising young woman (age 14). Her math tutoring service will generate $8,400 this year. She has her prior taxed earnings ($7,500) invested in a convertible bond fund that will generate 5% interest and 6% capital gains this year.

On 1 January 2020 Grateful Industries Limited GIL completed installation of a plant which will be required to be dismantled at the end of its ten years useful life GIL paid Rs 2000 million for the plant On 1 January 2020 it was estimated that the

Terry Johns pays $600 per month plus a percentage of gross annual sales in excess of $180,000 for a small retail space in a neighborhood shopping center. If gross sales were $264,000 in 2002 and the total rent paid was $13,080, what is the

During the summer ECC collected tuition payments from students for the Fall term totaling $4,000,000. As of the beginning of the Fall term, these payments would be reflected in ECC's balance sheet as: Unearned Tuition Revenue of $4,000,000 Accounts

The following is the trial balance of Perkasa Enterprise as of 31 December 2023: DEBIT (RM) CREDIT (RM) Capital 875,800 Purchases and sales 438,000 505,200 Return inward and Return outward 1,350 1,800 Drawings 1,200 Discount allowed and discount

Instructions Prepare a statement of partnership liquidation and the entries to record the following 1 Realization Sale of all noncash assets 2 Distribution of gain on sale to the partners 3 Settlement of the liabilities 4 Distribution of remaining

Instructions 1 Prepare a liquidation statement 2 Prepare the journal entries to record the liquidation Waddams Brennaman and Wolff are partners in the Paramount Studios and share profits and losses in a ratio of 532 On June 30 20X1 they decided to

Sifan and Tabitha each contributed 500 to ST LLC which is taxed as a partnership The agreement contains all the necessary provisions to qualify under the Alternate Test for economic effect The partnership agreement provides that all items of income

All of the following are ways in which assets may be transferred so that they will not count as resources for Medicaid purposes except: Assets gifted into a trust are not subject to look-back if made 60 months prior to applying for Medicaid. Assets

Borges Distributors has $296,000 in accounts receivable on January 1st, 2010. Budgeted sales for January are $860,000. Borges expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected

REQUIRED: Use the information provided below to answer the following questions independently: 1 If Kempster Limited decides on a profit objective of R400 000 , calculate the target sales volume. 2 Calculate the total Marginal Income and Profit/Loss

INFORMATION Kempster Limited expects to incur the following costs to produce and sell 20 000 units of its product at R30 each Variable manufacturing cost Fixed manufacturing cost Variable marketing cost Fixed marketing and administrative cost R14

Diana Jelly, founder and owner of a paint shop, received a loan of $5,000 from the bank. How should this transaction be recorded in the books? a. Increase (Credit) Cash $5,000; Increase (Credit) Bank Loan $5,000 b. Increase (Credit) Accounts Payable

The gain on sale of depreciable assets by a subsidiary to a parent is recorded on the separate-entity books of the parent. recorded only on the consolidated financial statements. recorded on the separate-entity books of the subsidiary. not recorded

Engineering Supplies Limited is considering the purchase of an automatic machine to produce a range of new products They have identified two machines that meet their process requirements Price Installation Cost Useful Life Salvage Value Machine A

Devon Enterprises owns the following assets at December 31 2025 Cash in banksavings account 63000 Cash on hand Cash refund due from IRS 9830 Cash to be reported 41200 What amount should be reported as cash Checking account balance Postdated checks

Note the following information concerning the direct costs of each of the following four departments Supplied by HR PM Human Resources 975000 A B C D Human Resources Plant Maintenance 1300000 thom CD D Plant Maintenance 15 Cutting 7685000 Cutting

Included in the December 31 trial balance of Disney Company are the following assets Cash Equipment net Prepaid insurance Raw materials 313500 1815000 67650 552750 Work in process Accounts receivables net Patents Finished goods 330000 660000 181500

You are a junior fund manager who has been asked by your superior to construct a portfolio that excludes 'sin' stocks such as tobacco, alcohol, and weapons. Which method should you be using in this instance to best achieve this task that you have

Marshmallow owns a personal car which he sold in installment on November 1, 2018 as follows: Date of acquisitionMarch 30, 2016 Acquisition cost P 300,000 Terms of payment Down paymentNovember 1, 2018P 50,000 Due onDecember 1, 2018 50,000 Due

XYZ Inc. sells a single product for $30 per unit. Variable production costs are $8 per unit. Fixed overhead costs amount $26,000 per month. Variable selling costs are $4 per unit. Fixed selling costs are $6,000 per month. Last month, the company

TakeaBreak Travel Company offers spring break travel packages to college students Two of its packages a 7day 6 night trip to Cancun and a 5day 4night trip to Jamaica have the following characteristics Package Specifications Oceanfront room number of

For Box Incs first month of operations materials and labor costs charged to the three jobs worked on in February were Job No101 Direct materials Job No102 Job No103 1800 3000 4500 3200 2400 2000 Direct labor at 8 per hour Overhead is applied at the

Rodney Limited produces a product which has a steady monthly demand of 4 000 units. The product requires a component that is purchased from a supplier at R20 per unit. The ordering cost is R1.20 per order. The holding cost is 10% of the unit

A. Williams basic annual salary is R240 000. He receives an annual bonus of 80% of his basic monthly salary, payable in March each year. His pension deduction is 8% of the basic salary and income tax is levied at 20% on his taxable income. Calculate

The following circumstance relates to the current year's audit of Alpha Limited: Alpha Limited has a large manufacturing centre in Sydney which produces concrete and pipes to be used in its projects. The company policy is to include the land and

Assume a project has three activities A,B and C are24,000OMR,30,000OMR and50,000OMR respectively. After13months during review, it is found that18,000OMR,25,000OMR and44,000OMR has been spent so far to complete100%,65%and75%of the tasks. By using

Singal Inc. is preparing its cash budget. It expects to have sales of $38052 in January, $35997 in February, and $48212 in March. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales

On 1 July 2021 TROJAN Horse Ltd commenced manufacturing clothe lines. For the year ended 30 June 2022, the company recorded an accounting profit before tax of $160,000. On the 30 June 2022, the following financial information is provided: carrying

Khaled has the following income for2022: Income from rent: 50,000. He has a wife and 5 children. calculate the income tax due.

The trial balance of a company included the following account balances: Cash, $25,000; Short-Term Investments, $10,000;Accounts Receivable, $40,000; Inventory, $90,000; and Prepaid Insurance, $12,000. Calculate Its total quick assets?

Cookie Crumbs Smart Cookie Co., a private company, has announced plans to sell its Retail division's four stores, along with announcing the planned layoffs of the Retail division's employees. Prior to the closure, the retail stores sold fresh-baked

Prepare statement of cash flow for 2022 using indirect method.

The following are comparative balance sheets for Swifty Company Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciationequipment Total Liabilities and Stockholders Equity Accounts payable Bonds payable Common stock 1 par

Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $112 per unit. Additional information is as follows: Variable Costs per Unit Fixed Costs (total) Direct materials $ 34

Granfield Company has a piece of manufacturing equipment with a book value of $49,500 and a remaining useful life of four years. At the end of the four years the equipment will have a zero-salvage value. Granfield can purchase new equipment for

Susan is considering opening a craft store. She would need $60,000 to remodel and furnish the store and another $30,000 for inventories and other working capital needs. Rent on the building used by the business will be $10,000 per year. Susan

Williamson Corporation was organized to operate a tax preparation business. The charter authorized the following stock: common stock, $7 par value, 81,000 shares authorized. During the first year, the following selected transactions were completed:

Required: 1. Compute earnings per share. Assume the weighted average shares outstanding is equal to the shares outstanding. Round your answer to 2 decimal places. 2. What is the amount of additional paid-in capital? 3. How many shares are in

The financial statements for Highland Corporation included the following selected information Common stock Retained earnings Net income Shares issued Shares outstanding Dividends declared and paid The common stock was sold at a price of 24 per share

Janzen Corporation acquired all of the outstanding common stock of Steinbeck Corporation for 11060000 in cash The book values and fair values of Steinbecks assets and liabilities were the following Accounts receivable Land Equipment Patent Accounts

Given the information below what is the total value of inventory on hand at the end of June The company is using a LIFO periodic inventory system Date June 1 June 2 June 15 June 25 Event Inventory on hand Purchase Purchase Sale Units 10 20 50 38

A company borrowed $200,000 by signing a 6 -month promissory note at 13.0% for the period. What is the amount of interest that must be paid at maturity?

Jasper Appliances is an Ontario HST registrant. Ontario has a 13% HST rate. As part of its Black Friday promotion, the store is advertising that, on that day, products can be purchased with no HST charged. On that day, a stove is sold for $2,800,

A company reports a $37440 increase in inventory and a $9360 increase in accounts payable during the year. Cost of goods sold for the year was $222300. Using the direct method of reporting cash flows from operating activities, what are the company

Consider the daily revenues of a store shown in the following table Day 1 2 3 4 5 6 7 8 9 10 Revenue 622 498 608 712 588 656 689 675 706 705 a Create a weighted moving average WMA model with k3 and determine the optimal values of the weights that

1 Annual retail sales for Store X are 150000 and average retail inventory is 10000 What is annual inventory turnover 2 Refer to the table below to answer parts a d Unit sales Total sales Cost of Goods Sold Average inventory in units Average

During 2025, Blossom industries reported cash provided by operations of $937000, cash used in investing of $809000, and cash used in financing of $224000. In addition, cash spent on plant assets during the period was $326000. Average current

The annual budgeted conversion costs for a lean cell are 291600 for 2700 production hours Each unit produced by the cell requires 9 minutes of cell process time During the month 2990 units are manufactured in the cell The estimated materials costs

Lowell Consulting which sells on terms 210 n30 had credit sales for March and April of 180000 and 150000 respectively Analysis of Lowells operations indicates that the pattern of customers payments on account is as follows percentages are of total

Golden Inc has been manufacturing 5000 units of Part 10541 per year It is used in the manufacture of one of its products At this level of production the cost per unit of manufacturing Part 10541 is as follows Direct materials Direct labor Variable

The internal rate of return method is used by Royston Construction Co in analyzing a capital expenditure proposal that involves an investment of 39655 and annual net cash flows of 11000 for each of the 7 years of its useful life Present Value of an

Prepare Journal Entries for all of the following transactions: On January 1, 20X8, Shadow Corporation began operations by selling 120,000 shares of $2 par value stock to the public for $5 per share. On June 30 , they sold 50,000 more shares at $6

On January 1 Stella Company began operations by issuing 13,000 shares of $3 par value stock for $10 per share. On June 30th they declared a $0.25 per share dividend to shareholders of record on July 15th , payable July 30th. Prepare all journal

Indigo Company accumulated the following standard cost data concerning product ITal Materials per unit 340 kg at 520 per kilogram Labour per unit 070 hours at 1300 per hour Manufacturing overhead Predetermined rate is 140 of direct labour cost

A sold a machine to B (associated enterprise) and in turn B sold the same machinery to C (an independent party) at sale margin of 30% for 4,00,000 but B has incurred 4,000 in sending the machine to C. From the above data, determine arm's length

Megabyte Inc. of France and R Ltd. of India are associated enterprises. R Ltd. imports 3,000 compressors for Air Conditioners from Megabyte Inc. at 7,500 per unit and these are sold to Pleasure Cooling Solutions Ltd at a price of 11,000 per unit.

Mr Saha a resident Indian has derived the following incomes for the previous year relevant to the AY 202324 a b Income from profession Royalty on books from foreign country Y 300000 is eligible for deduction us 80QQBTax paid in foreign country 20

Mr. A is a resident of country X, went on 3 months assignment to Country Y - Salary income of Mr. A is 24,00,000 - Of the above, Country Y taxed 3 months income of 6,00,000@ 28 % . Compute tax liability of Mr. A considering full credit method and

A is an association governed by the provisions of sec. 44 A of the Income-tax Act. The subscription receipts for the year ended 31st March, 2023 were 60,000. The expenditure in the normal course of its activities was 85,000. Its other income

Herasa Manufacturing purchased a new machine on Jan 1, 20X1 that was built to perform one function on its assembly line. Data pertaining to this new machine are: Cost $580,000 Residual value (salvage) $18,000 Estimated service life 3 years

Burton Inc has two classes of stock 8 100 par noncumulative Preferred Shares and 105 par Common Shares Currently there are 11000 shares of the preferred and 33000 shares of the common shares outstanding Last year there was a disaster that wiped out

An aluminum fabrication plant in Manitoba is studying a replacement decision for its old waterjet cutting machine purchased 7 years ago at 130000 with a new more precise waterjet cutting machine Based on market studies the old waterjet cutting

The following data have been taken from the book of Ghani Manufacturing Company Ltd for the year 200304 Inventories Raw Materials Goods In Process Finished Goods Data for the Year Sales Rs Rs 900000 10000 25000 July 1 65000 80000 50000 Rs 310000

es Moab Incorporated manufactures and distributes hightech biking gadgets It has decided to streamline some of its operations so that it will be able to be more productive and efficient Because of this decision it has entered into several

What is reported on Schedule 2? Group of answer choices Additional income Adjustments to income Additional taxes Itemized deductions

DD Company reports select items from its statement of cash flows Identify those items related to financing activities and compute net cash flows from financing activities Activity Cash paid to purchase property Cash from selling merchandise Cash

Convert it to JK flip-flop by adding the necessary decoding logic. Merge the decoding logic with the logic gates of the SR flip-flop. Initially, the flip-flop is at a reset state with J and K at zero. When the clock goes high, J and K are

J CLK K 1 I 1 0 t 0 ta 2ta 3td Ata 5ta 6ta 7td 0 0 0 Set Set Reset 0 0 1 0 1 0 0 0 1 0 1 Reset 0 1 1 0 0 Q 0 0 0 1 1 0 0 0 1 Q 1 1 0 0 0 0 1 1 0 lo Q NOR function AB Y 0 0 1 01 0 10 0 11 0

Your friend Lynn Year looks at this circuit and says this can be modeled as a voltage controlled current source Since you are learning about this in 10A she comes to you for help in figuring it out You model the circuit as shown in figure 9 You

Given the force between two or more points as F 2 x 9 rr 4REP Point charges 125nC and 90nC are located at 2 4 6 and 4 7 3 respectively a Determine the force on a 15nC point charge located at 6 3 2 b Determine the electric field E at 6 3 2 Note Show

The RC network in Figure 1 has been at rest for a long period of time with the switch S at point a as shown At time t 0 S is thrown to point b as indicated on the schematic Using the values shown you are asked to do the following a Calculate values

Write the component scalar equation for the set of four Maxwells equation V XE jwH V x H J jweE V E Pv V H 0 a in Cartesian coordinates if the field phasors are functions of z only and b in spherical coordinates if the field phasors are

The enhancement mode nchannel MOSFET M is biased at a de drain current ID of 500A in the saturation region with gatesource and drainsource voltages shown in Figure 3 Smallsignal parameters and components for this device at the dc operating point are

Consider the below unity feedback closedloop control system Rs Ks 1 30 ss 20s 100 Ys a Do a basic sketch of the rough locus of the poles of the closedloop system as a function of K 5 pts b Determine the values of K for which the system is stable 5

For a quartz microbalance of surface area of 5 mm and resonance frequency at no load of 5 MHZ determine the frequency shift in THz 1012 Hz for a load of 1 ng

Complete the waveforms for A B and z for the x input shown for both state machines Assume falling edge triggered flipflops are used for the state variables 10 01 Clock X A B Z 00 00 A B 00 10 00 00 10 11 11 11 01 0 0 00 0 1 0 10 1 0