Multiple Choice Questions 1. A parent company buys bonds on the open market that had been previously issued by its subsidiary. The price paid by the parent is less than the book value of the bonds on...

The following project is at the end of its sixth week. Find the cost and schedule variances. Also find the CPI, SPI, ETC, and EAC for theproject. Pre- Duration BudgetActual (wks) Cost () Copete...

Maurice Browne recorded the following times assembling a watch. Determent (a) The average time (b) The normal time (c) The standard time taken by him, using a performance rating of 95% and a personal...

Bolz Office Supply Company recently changed its system of internal control over cash disbursements. The system includes the following features. Instead of being unnumbered and manually prepared, all...

Since its inception, Eco Plastics Company has been revolutionizing plastic and trying to do its part to save the environment. Ecos founder, Marion Cosby, developed a biodegradable plastic that her...

Frankel Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining rapid market acceptance. The companys revenues and expenses (in British pounds) for the last...

Latona Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Latona showed Cash of $5,000 and Owners Capital of $5,000. May 1...

Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $300,000. Problem 3-34...

Paul Jordan has just been hired as a management analyst at Digital Cell Phone, Inc. Digital Cell manufacturers a broad line of phones for the consumer market. Pauls boss, John Smithers, chief...

The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2016. INCOME STATEMENT OF QUICK BURGER CORP., 2016 (Figures in $ millions) Net sales...

The following are various management assertions (a through m) related to sales and accounts receivable. Management Assertion a. All sales transactions have been recorded. b. Receivables are...

Woodys Supermarket, a small chain of grocery stores, is building a Web site to allow customers to place orders for groceries and other items they sell. The customer places a Web order, the customer...

In the past, Taylor Industries has used a fixed time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing...

The credit manager of Montour Fuel has gathered the following information about the companys accounts receivable and credit losses during the current year: Net credit sales for the year . . . . . . ....

The investment committee of Sentry Insurance Co. is evaluating two projects, office expansion and upgrade to computer servers. The projects have different useful lives, but each requires an...

Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in-house using either Process A or Process B, or purchased from a supplier....

The following information for Decher Automotives covers the year ended 2010: Administrative expense ............. $ 62,000 Dividend income ............... 10,000 Income taxes .....................

The Smelting Department of Kiner Company has the following production data for November. Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion...

Williams Optical Inc. is considering a new just-in-time product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 40 units. The...

Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 150 units50 from each of the last three...

Here are selected 2017 transactions of Akron Corporation. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $62,000 and had a useful life of 10 years with no...

Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of...

(Securities and Exchange Commission) The U.S. Securities and Exchange Commission (SEC) was created in 1934 and consists of five commissioners and a large professional staff. The SEC professional...

Heritage Company manufactures a beautiful bookcase that enjoys widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plants full...

Do you think that Starbucks has grown rapidly because of its ethical and socially responsible activities or because it provides products and an environment that customers want? Starbucks was founded...

During 2013, Matti Conners, president of Maggert Company, was paid a semimonthly salary of $5,200. Compute the amount of FICA taxes that should be withheld fromher: OASDI HI a. 9th paycheck S b. 22nd...

Upton Corporation has the following transactions during August of the current year. Indicate (a) the basic analysis and (b) the debitcredit analysis illustrated on pages 121126. Aug. 1.Issues shares...

1. Identify and discuss the risks in Westinghouse Electrics Cornerstone project. 2. Why was change management so important for this project and this company? 3. What management, organization, and...

Laroche Landscaping has collected the following data for the December 31 adjusting entries: a. Each Friday, Laroche pays employees for the current weeks work. The amount of the weekly payroll is...

Transactions and Budgetary Comparison Schedule. The following transactions occurred during the 2011 fiscal year for the City of Fayette. For budgetary purposes the city reports encumbrances in the...

Briefly summarize how a network is drawn.

As of January 1, 2012, the trial balance for Haven Hospital was as follows: During the fiscal year ended December 31, 2012, the following transactions occurred: 1. Patient service revenue amounted to...

The T-accounts for Equipment and the related Accumulated Depreciation Equipment for Ada Company at the end of 2014 are shown here. In addition, Ada Companys income statement reported a loss on...

Novak Corporation is preparing its 2010 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each...

The adjusted trial balance columns of the worksheet for Taj Company, owned by Gabby Taj, are as follows. Instructions(a) Complete the worksheet by extending the balances to the financial statement...

Coney Island Entertainment issues $1,300,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Required: Calculate the issue price of a bond and...

As we discussed at the beginning of the chapter, Starbucks has a large, global supply chain that must efficiently supply over 17,000 stores. Although the stores might appear to be very similar, they...

On May 1, 2014, Lowell Company began the manufacture of a new paging machine known as Dandy. The company installed a standard costing system to account for manufacturing costs. The standard costs for...

Revenues and production budget. Purity, Inc., bottles and distributes mineral water from the companys natural springs in northern Oregon. Purity markets two products: twelve-ounce disposable plastic...

The manager of a Burger Doodle franchise wants to determine how many sausage biscuits and ham biscuits to prepare each morning for breakfast customers. The two types of biscuits require the following...

The following information is available for Robstown Corporation for 20Y8: Instructions 1. Prepare the 20Y8 statement of cost of goods manufactured. 2. Prepare the 20Y8 income statement. Inventories...

The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a...

Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31, 2014: Customer Amount Kim Abel ..... $ 21,550 Lee Drake .... 33,925 Jenny...

Yang Inc. operates a retail operation that purchases and sells snowmobiles, among other outdoor products. The company purchases all inventory on credit and uses a periodic inventory system. The...

Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $2.00 yesterday. Bahnsens dividend is expected to grow at 5% per year for the next 3 years. If you buy...

Bumblebee Company estimates that 300,000 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost...

The following are selected transactions that may affect stockholders' equity. 1. Recorded accrued interest earned on a note receivable. 2. Declared and distributed a stock split. 3. Declared a cash...

Minnesota Office Products (MOP) produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It...

Make up an example of a monthly demand schedule for pizza and graph the implied demand curve. Give an example of something that would shift this demand curve, and briefly explain your reasoning....

1. Whats your reaction to these events? Do you think your reaction is influenced by the culture, values, and traditions of the country in which you find yourself? Explain. 2. Look at what Hofstedes...

Foley Advertising Companys trial balance at December 31 shows Supplies $8,800 and Supplies Expense $0. On December 31, there are $1,100 of supplies on hand. Prepare the adjusting entry at December 31...

Refer to Exhibit 2-11 on page 65. Required a. What is Universal Sports Exchange's operating profit equation? b. If Universal Sports Exchange sells 55,000 jerseys, what total expense will be reported...

On January 1, 2015, Frontier World issues $41 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new...

DeLong Corporation was organized on January 1, 2017. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2...

What is the problem with making cost estimates too conservative or too aggressive?

Aloha Company uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions. (For specific identification, the May 9 sale consisted of 80 units...

Werth Inc.s bank statement from Hometown Bank at August 31, 2014, gives the following information. A summary of the Cash account in the ledger for August shows the following: balance, August 1,...

Smart Video Company is a manufacturer of videoconferencing products. Maintaining the videoconferencing equipment is an important area of customer satisfaction. A recent downturn in the computer...

Kentaro Corporation manufactures Digital Video Recorders (DVRs) in its Tokyo plant. The following costs are budgeted for January. (Yen is the Japanese monetary unit.) Raw materials and components...

South Coast Boards Co. is a merchandising business. The account balances for South Coast Boards Co. as of July 1, 2010 (unless otherwise indicated), are as follows: During July, the last month of the...

Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2014, are as shown below. In addition, Clarke incurs $180,000 of...

Eleanor's Computers is a retailer of computer products. Using the financial data provided, complete the financial ratio calculations for 2010. Advise management of any ratios that indicate potential...

Watson Technical Institute (WTI), a school owned by Tom Watson, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its...

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...

Baden Corporation entered into a lease agreement for 10 photocopy machines for its corporate headquarters. The lease agreement qualifies as an operating lease in all terms except there is a...

The Solomon, Smith, and Samson law firm produces many legal documents that must be word processed for clients and the firm. Requests average eight pages of documents per hour, and they arrive...

The Hickory Company manufactures wooden desks. Management schedules overtime every weekend to reduce the backlog on the most popular models. The automatic routing machine is used to cut certain types...

The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Amber Gardners software firm: The probability of low demand is 0.4, whereas...

Suppose that a product must go through an assembly line that consists of five sequential operations. The time it takes to complete each operation is normally distributed with a mean of 180 seconds...

Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers...

During the past year, Stacy McGill planted a new vineyard on 150 acres of land that she leases for $30,000 a year. She has asked you, as her accountant, to assist her in determining the value of her...

George Zidek Corporation bought a machine on June 1, 2012, for $31,000, f.o.b. the place of manufacture. Freight to the point where it was set up was $200, and $500 was expended to install it. The...

Toshihiro Nakamura, manufacturing engineering section manager, is examining the prototype assembly process sheet (shown in Exhibit 8.15) for the newest subnotebook computer model. With every new...

Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass...

AllTalk Technologies manufactures capacitors for cellular base stations and other communications applications. The companys January 2012 flexible budget income statement shows output levels of 6,500,...

Use the information contained below to compress one time unit per move using the least cost method. Reduce the schedule until you reach the crash point of the network. For each move identify what...

Milano Gallery purchases the copyright on an oil painting for $ 418,000 on January 1, 2013. The copyright legally protects its owner for 10 more years. The company plans to market and sell prints of...

Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and direct labor and overhead are added evenly throughout the process. The...

1. What is the strategic fit between Nomura and Lehman? 2. Is there any organizational fit? How to bridge the gaps between the cultures of these two firms? 3. How does Nomura alleviate the concerns...

Guillen, Inc. began work on a $7,000,000 contract in 2012 to construct an office building. Guillen uses the completed-contract method. At December 31, 2012, the balances in certain accounts were...

A firm??s product sells for $2 per unit in a highly competitive market. The firm produces output using capital (which it rents at $75 per hour) and labor (which is paid a wage of $15 per hour under a...

Amortization schedule for bands. On January 1 of the current year, Womack Company issues 10% semiannual coupon bonds maturing five years from the date of issue. The firm issues the bonds to yield 8%...

(Multiple Choice) 1. For purposes of computing the weighted average number of shares outstanding during the year, a midyear event that must be treated as occurring at the beginning of the year is the...

A portfolio manager summarizes the input from the macro and micro forecasters in the following table: a. Calculate expected excess returns, alpha values, and residual variances for these stocks. b....

(Computation of Actual Return) Gingrich Importers provides the following pension plan information. Fair value of pension plan assets, January 1, 2010 $2,400,000 Fair value of pension plan assets,...

Change in Estimate and Error Correction Holtzman Company is in the process of preparing its financial statements for 2010. Assume that no entries for depreciation have been recorded in 2010. The...

James Corporation's balance sheet at December 31, 2013, is presented below. During 2014, the following transactions occurred. 1. James paid $2,500 interest on the bonds on January 1, 2014. 2. James...

Meera Corporation issued 4,000, 8%, 5-year, $1,000 bonds dated January 1, 2014, at 100. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2014. (b) Prepare the journal...

Microsoft and a smaller rival often have to select from one of two competing technologies. The rival always prefers to select the same technology as Microsoft (because compatibility is important),...

The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: Additional Information for 2015: 1. Net income is $79,000. 2. The company purchases $110,000...

Sprinkle Inc. has outstanding 10,000 shares of $10 par value common stock. On July 1, 2010, Sprinkle reacquired 100 shares at $87 per share. On September 1, Sprinkle reissued 60 shares at $90 per...

Cost System Choices, Budgeting, and Variance Analyses for Sacred Heart Hospital The purpose of this integrated exercise is to demonstrate how a change in the cost systems allocation base can result...

Your context diagram and DFD diagram 0 were accurate, but there have been some design changes. Management has decided to connect the external Accounts Receivable System directly to the C3 system as a...

Canine Kernels Company (CKC) manufactures two different types of dog chew toys A and B, sold in 1,000-count boxes) that are manufactured and assembled on three different workstations (W, X, and Y)...

The internal control procedures in Edmiston Company make the following provisions. Identify the principles of internal control that are being followed in each case. (a) Employees who have physical...

Assume the same information for the Blue Seas Company as in Problem 10- 35 with one exception. This exception is that Blue Seas uses a 90% incremental unit- time learning model as a basis for...

Chilczuk, S.A., of Gdansk, Poland, is a major producer of classic Polish sausage. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the...

Fernando Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the...

Jerry Karron, an auditor with Joshi CPAs, is performing a review of Duncan Companys Inventory account. Duncan did not have a good year, and top management is under pressure to boost reported income....

Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2014. The following data were used in...