Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) On January 2, 2018, Baltimore Company purchased 5,000 shares of the stock of Towson Company at $12 per share.Baltimore did NOT obtain significant influence

1) On January 2, 2018, Baltimore Company purchased 5,000 shares of the stock of Towson Company at $12 per share.Baltimore did NOT obtain significant influence as the purchase represents a 5% ownership stake in Towson Company.On August 1, 2018, Towson Company paid cash dividends of $15,000.Baltimore Company intended this investment to a long-term investment.On December 31, 2018, Towson Company reported $55,000 of net income for FY 2018.Additionally, the current market price for Towson Company's stock increased to $25 per share at the end of the year.Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.)

2) Frederick Company has two service departments (Cafeteria Services & Maintenance).Frederick has two production departments (Assembly Department & Packaging Department.)Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments.All allocations are based on total employees.Cafeteria Services has costs of $245,000 andMaintenancehas costs of $150,000 before any allocations.What amount of Maintenance total cost is allocated to the Packaging Department?(round to closest whole dollar) Employees are:

Cafeteria Services4

Maintenance 6

AssemblyDepartment8

Packaging Department7

3) Bowie Sporting Goods manufactures sleeping bags.The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 4.50 yards at $5.00 per yard

Direct labor of 2.50 hours at $16.00 per hour

Overhead applied per sleeping bag at $18.00

In the month of April, the company actually produced 4,900 sleeping bags using 25,500 yards of material at a cost of $5.50 per yard.The labor used was 11,500 hours at an average rate of $17.50 per hour.The actual overhead spending was $96,200.

Determine the materials price variance and round to the nearest whole dollar.Enter a favorable variance as a negative number.Enter an unfavorable variance as a positive number.

4) Bowie Sporting Goods manufactures sleeping bags.The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 5.50 yards at $5.75 per yard

Direct labor of 2.50 hours at $17.00 per hour

Overhead applied per sleeping bag at $18

In the month of April, the company actually produced 5,100 sleeping bags using 26,800 yards of material at a cost of $5.90 per yard.The labor used was 13,750 hours at an average rate of $18.50 per hour.The actual overhead spending was $96,200.

Determine the labor quantity variance and round to the nearest whole dollar.Enter a favorable variance as a negative number.Enter an unfavorable variance as a positive number.

5) Selected financial information for the Adelphi Company for the fiscal years ended December 31, 2018 and 2017 follows.Prepare an cash flow statement using the indirect method.Properly title the statement.

2018 2017

Cash balance $113,500 $37,500

Net income 142,500 162,000

Depreciation Expense 42,000 35,000

Purchase of Plant Assets 135,000 125,000

Disposal of Plant Assets 40,000 50,000

Gain (Loss) on Disposal of Plant Assets (10,000) 5,000

Accounts Receivable Balance 64,500 58,000

Accounts Payable Balance 42,000 39,000

Interest Expense 8,000 6,000

Income Taxes Paid 35,000 28,000

Dividends Paid 30,000 25,000

Common Stock Issued for Cash 20,000 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian edition

119-49633-5, 1119496497, 1119496330, 978-1119496496

More Books

Students also viewed these Accounting questions

Question

The quality of the proposed ideas

Answered: 1 week ago

Question

The number of new ideas that emerge

Answered: 1 week ago