Questions and Answers of Fundamental Accounting Principles 25th

Franklin Co. reported the following year-end data: net income of $220,000; annual cash dividends per share of $3; market price per (common) share of $150; and earnings per share of $10. Compute
We are evaluating whether or not to make a loan to a company. Indicate whether each of the following separate trends would make us more or less likely to make the loan.a. Current ratio is increasing,
We are evaluating whether or not to invest in a company. Indicate whether each of the following separate trends would make us more or less likely to invest.a. Return on equity is increasing, from 19%
Listed here are the costs associated with the production of 18,000 Blu-ray discs (BDs) manufactured by Maxwell.Required 1. Classify each cost and its amount as either product or period. The first
Santana Rey, owner of Business Solutions, diversifies her business by also manufacturing computer workstation furniture.Required1. Classify the following manufacturing costs of Business Solutions as
For Apple’s current annual report, assume it reports the following for raw materials.Required1. Compute Apple’s raw materials inventory turnover ratio for the most recent two years.2. Is the
The following year-end information is taken from the December 31 adjusted trial balance and other records of Best Bikes.RequiredIdentify each cost as either a product cost or a period cost. If a
Indicate whether each decision is most likely to be made using managerial accounting information or financial accounting information. Business Decision Primary Information Source 1. Determine whether
For the current annual reports of Apple and Google, assume they report the following.Required 1. Compute the recent two years’ raw materials inventory turnover ratio for (a) Apple and (b)
Using the data from Problem 18-2A and the following additional information for Leone Company, complete the requirements below.Required1. Prepare the schedule of cost of goods manufactured for the
For the current annual reports of Samsung and Apple, assume they report the following.Required 1. Compute the recent two years’ days’ sales in raw materials inventory for (a)
Teanna Bass of Sweet Tea Cosmetics understands and controls merchandising costs.Required 1. How does a merchandiser such as Sweet Tea Cosmetics compute cost of goods sold? Provide examples of
A car manufacturer incurs the following costs. Classify each cost as either a product or period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a
Refer to the data in Exercise 18-7. For each company, prepare (1) An income statement and (2) The current assets section of the balance sheet.Data From Exercise 18-7Using the following data
Refer to the data in Exercise 18-7. For each company, compute the total (1) prime costs and (2) conversion costs.Data From Exercise 18-7Using the following data from both Garcon Company and
Determine the missing amount for each separate situation involving inventory cost flows. (1) (2) (3) Cost of merchandise purchased $ ? $140,000 $289,000 Merchandise inventory, beginning 106,000
Prepare an income statement for Rex Manufacturing for the year ended December 31 using the following information. Finished goods inventory, ending ...... $16,000 Selling expenses. $12,000 General and
For each of the following accounts for a manufacturing company, place a ✓ in the column indicating that it is included in selling expenses, general and administrative expenses, or the calculation
Prepare the current assets section of the balance sheet at December 31 for Bin Manufacturing using the following information. $22,000 Selling expenses.. Finished goods inventory. Cash..... $12,000
Use the following selected account balances of Delray Mfg. to prepare its schedule of cost of goods manufactured for the year ended December 31. Sales $1,250,000 Repairs-Factory equipment $ 23,000
Garcia Company reports beginning raw materials inventory of $855 and ending raw materials inventory of $717. If the company purchased $3,646 of raw materials during the month, what is the amount of
Refer to the information in Exercise 18-13 to prepare an income statement for Delray Mfg. (a manufacturer). Assume that its cost of goods manufactured is $534,300.Data From Exercise 18-13Use the
Determine the missing amount for each separate situation involving manufacturing costs. (1) (2) (3) Direct materials used $8,000 $14,000 ? Direct labor used 4,000 ? 18,000 Factory overhead 5,000
Beck Manufacturing reports the following information in T-accounts for the current year.1. Prepare the schedule of cost of goods manufactured for the year.2. Compute cost of goods sold for the year.
Prepare the schedule of cost of goods manufactured for Barton Company using the following information for the year ended December 31. Work in process inventory, beginning.... $157,000 Direct
Use the following information to compute the cost of direct materials used for the current year. Inventories Beginning of Year End of Year Activity during current year Raw materials
Determine the missing amount for each separate situation involving manufacturing cost flows. (1) (2) (3) Direct materials used $ (a) $150,480 $33,890 Direct labor used 75,000 (d) 45,720 Factory
What are the goals of the lean business model?
Refer to the data in Quick Study 18-16. Factory overhead of $39,000 consists of Indirect labor of $20,000, Depreciation expense—Factory of $15,000, and Factory utilities of $4,000.a. Compute total
Determine the missing amount for each separate situation involving work in process cost flows. (1) (2) (3) Total manufacturing costs 2$ ? $150,000 $217,000 Work in process inventory, beginning
A company reports cost of goods manufactured of $918,700 and cost of goods sold of $955,448. Compute the average manufacturing cost per unit assuming 18,374 units were produced.
Sims Company reports beginning raw materials inventory of $900 and ending raw materials inventory of $1,100. Assume the company purchased $5,200 of raw materials and used $5,000 of raw materials
How does the cost of goods manufactured schedule relate to the income statement?
Read the Statement of Ethical Professional Practice posted at IMAnet.org. (Under “Career Resources,” select “Ethics Center,” and then select “IMA Statement of Ethical Professional
General Ledger (GL) Assignments expose students to general ledger software similar to that in practice.GL is part of Connect, and GL assignments are auto-gradable and have algorithmic options. For
Apple provides device support services to large business clients. These services use direct labor and overhead costs. Assume Apple uses two types of direct labor: phone support staff, paid $12 per
At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three jobs.Additional informationa. Job 5 was started in May, and the following costs were assigned to
Match each of the terms with the best definition a through d.1. Cost accounting system2. Target cost3. Job4. Process operationa. Production activities for a custom product.b. Mass production in a
At the end of May, the job cost sheets at Cool Pool show the following costs accumulated on three jobs.Additional informationa. Job 8 was started in April, and the following costs were assigned to it
Apple and Google report the following income statement data (some are assumed). Use the companies’ service revenue and cost data to answer the requirements.Required1. Compute the gross profit ratio
Refer to the bond details in Problem 14-1B, except assume that the bonds are issued at a price of $4,192,932.Required1. Prepare the January 1 journal entry to record the bonds’ issuance. 2.
On January 1, 2021, Gordon borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal payments of $60,316 each year on December
Allegiant issues 6%, 20-year bonds with a par value of $2,000,000 and semiannual interest payments. In each separate situation, determine whether the bond is issued at par value, at a discount, or at
Dobbs Company issues 5%, two-year bonds, on December 31, 2021, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to
On January 1, McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 for
On January 1, JCCC borrows $130,000 cash by signing a 4-year, 5% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 for each of the
Duval Co. issues four-year bonds with a $100,000 par value on January 1, 2021, at a price of $95,952. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31.1.
The following information is available for both Pulaski Company and Scott Company at the current year-end.Required 1. Compute the debt-to-equity ratio for both companies. 2. Which company
The following information is available for both Atlas Company and Bryan Company at the current year-end.Required1. Compute the debt-to-equity ratio for both companies.2. Which company has the riskier
Quatro Co. issues bonds dated January 1, 2021, with a par value of $400,000. The bonds’ annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature
On January 1, 2021, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January 1, 2027, Shay retires these bonds by buying them on the open market
Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $493,608 when the market rate is 10%.Required1.
Use the information in Exercise 14-12 to prepare the journal entries for Eagle to record the note’s issuance and each of the four payments.Data From Exercise 14-12On January 1, 2021, Eagle Company
Refer to the lease details in Problem 14-12B. Assume that this lease is classified as an operating lease instead of a finance lease.Required1. Prepare the January 1 journal entry at the start of the
On January 1, $30,000 cash is borrowed from a bank in return for a 12% installment note with 36 monthly payments of $996 each. (1) Prepare an amortization table for the first three months of
On January 1, $50,000 cash is borrowed from a bank in return for a 6% installment note with 24 monthly payments of $2,216 each. Prepare the journal entry to record (1) The issuance of the note
Stanford issues bonds dated January 1, 2021, with a par value of $500,000. The bonds’ annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in
On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as a finance lease. The lease requires five $10,000 lease payments (the first at the beginning of the lease
SP 15 While reviewing the March 31, 2022, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market
Use Apple’s financial statements in Appendix A to answer the following. 1. Compute Apple’s return on total assets for the years ended September 28, 2019, and September 29, 2018.2. Is the
Which of the following statements are true of long-term investments?a. They can be considered cash equivalents.b. They can include assets not used in operations, such as investments in land.c. They
Key figures for Apple and Google follow.Required 1. Compute return on total assets for Apple and Google for the two most recent years. 2. Which of these two companies has the better return
Assume that you are Jolee Company’s accountant. Company owner Mary Jolee has reviewed the 2021 financial statements you prepared and questions the $6,000 loss reported on the sale of its investment
Identify investments as an investment in either debt securities or equity securities.a. U.S. Treasury bondsb. Google stock c. Certificate of deposit d. Apple bondse. IBM corporate notesf.
Mead Inc. began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities.Year 1Jan. 20 Purchased Johnson &
Paris Inc. began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities.Year 1Mar. 10 Purchased Apple bonds
Following are selected data from Samsung, Apple, and Google.Required 1. Compute Samsung’s return on total assets for the two most recent years.2. For the current year, is Samsung’s return on
Analyze transactions (1 through 3) from Exercise 15-2 by showing each transaction’s effect on the accounting equation—specifically, identify the accounts and amounts (including + or −) for
Stoll Co.’s long-term available-for-sale portfolio at the start of this year consists of the following.Stoll enters into the following transactions involving its available-for-sale debt securities
Identify the three classes of debt investments and the three classes of equity investments.
Assume that YC makes an investment in Sustain Inc., a sustainability consulting firm. YC purchases 200 shares of Sustain stock for $15,500 cash. Sustain has 500 shares of common stock outstanding,
Slip Systems had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence.Feb. 6. Purchased 3,400
Refer to the information in QS 15-4. (1) After the fair value adjustment is made, prepare the assets section of Kitty Company’s December 31 classified balance sheet. (2) In which income
Selk Steel Co., which began operations in Year 1, had the following transactions and events in its long-term investments.Year 1Jan. 5 Selk purchased 60,000 shares (20% of total) of Kildaire’s
Prepare Garzon Company’s journal entries to record the following transactions for the current year.Jan. 1 Purchases 6% bonds (as a held-to-maturity investment) issued by PBS at a cost of $40,000,
Journ Co. purchased short-term investments in available-for-sale debt securities at a cost of $50,000 cash on November 25. At December 31, these securities had a fair value of $47,000. This is the
Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt securities. The year-end costs and fair values for its portfolio of these investments follow.
Analyze transactions (a through c) from Exercise 15-8 by showing each transaction’s effect on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each
Refer to the information in QS 15-9. (1) After the fair value adjustment is made, prepare the assets section of Reggit Company’s December 31 classified balance sheet. (2) Is the
Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare
Refer to the information in Exercise 15-10. (1) After the fair value adjustment is made, prepare the assets section of Mars Co.’s December 31 classified balance sheet. Assume Mars plans to
Indicate where each of the following items is reported on financial statements. Choose from the following categories: (a) Current assets, (b) Long-term investments, (c) Current
On January 1, Aivah Co. purchased 2,000 common shares (25%) of Maywood Corp. as a long-term investment for $200,000. Later in the year, Maywood paid $16,000 in total cash dividends on December 15 and
General Ledger (GL) Assignments expose students to general ledger software similar to that in practice. GL is part of Connect, and GL assignments are auto-gradable and have algorithmic options. For
The General Ledger tool in Connect automates several of the procedural steps in the accounting cycle so that the accounting professional can focus on the impacts of each transaction on the various
Comparative figures for Apple and Google follow.Required1. Compute total asset turnover for the most recent two years for Apple and Google using the data shown.2. In the current year, which company
Comparative figures for Samsung, Apple, and Google follow.Required1. Compute total asset turnover for the most recent two years for Samsung using the data shown.2. Is the change in Samsung’s asset
Diego Co. paid $180,000 cash to acquire a group of items consisting of land appraised at $50,000 and a building appraised at $150,000. Allocate total cost to these two assets and prepare an entry to
Equipment costing $13,000 with a 10-year useful life and an estimated $3,000 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 2,000 units of product
Use the following information from separate companies a through d to compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due? Net Income
Use the table below and Apple’s financial statements in Appendix A to answer the following.1. Compute times interest earned for each of the three years shown.2. Is Apple in a good or bad position
Key figures for Apple and Google follow.Required1. Compute times interest earned for the three years’ data shown for each company.2. In the current year, and using times interest earned, which
Analyze each separate transaction from Exercise 11-2 by showing its effects on the accounting equation— specifically, identify the accounts and amounts (including + or –) for each
Comparative figures for Samsung, Apple, and Google follow.Required1. Compute the times interest earned ratio for the most recent two years for Samsung using the data shown.2. Is the change in
On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from merchandise
On November 10, Lee Co. began operations by purchasing coffee grinders for resale. The grinders have a 60-day warranty. When a grinder is returned, the company discards it and mails a new one from
During the month of January, an employee earned $4,000 of salary. Withholdings from the employee’s salary consist of FICA Social Security taxes of $248, FICA Medicare taxes of $58, federal income
During the month of January, an employer incurred the following payroll taxes: FICA Social Security taxes of $372, FICA Medicare taxes of $87, FUTA taxes of $36, and SUTA taxes of
Using the data in situation (a) of Exercise 11-7, prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities. Round amounts to
Analyze each of the following transactions from Exercise 11-12: (a) The copier’s sale; (b) The adjustment to recognize the warranty expense on December 31 of Year 1; (c) The repairs

Showing 900 - 1000 of 1250