Perfectgrader - Fall Semester Accounting Assistance (2024)

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Fall Semester Accounting Assistance

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29. Arti and Bharti are partners in a firm sharing profits in 3:2 ratio, They admitted Sarthi for 1/4...
Arti and Bharti are partners in a firm sharing profits in 3:2 ratio, They admitted Sarthi for 1/4 share in the profits of the firm. Sarthi brings Rs. 50,000 for his capital and Rs. 10,000 for his 1/4 share of goodwill. Goodwill already appears in the books of Arti and Bharti at Rs. 5,000. the new profit sharing ratio between Arti, Bharti and Sarthi will be 2:1:1. Record the necessary journal entries in the books of the new firm?
30. Porter Co. is analyzing two projects for the future. Assume that only one project can be selected...
Porter Co. is analyzing two projects for the future. Assume that only one project can be selected. Project X Project Y Cost of machine $68,000 $60,000 Net cash flow: Year 1 24,000 4,000 Year 2 24,000 26,000 Year 3 24,000 26,000 Year 4 0 20,000 If the company is using the payback period method and it requires a payback of three years or less, which project should be selected? Both X and Y are acceptable projects. Project X. Project Y. Neither X nor Y is an acceptable project. Project Y because it has a lower initial investment.
31. BOND VALUATION The Pennington Corporation issued a new series of bonds on January 1, 1990. The...
BOND VALUATION The Pennington Corporation issued a new series of bonds on January 1, 1990. The bonds were sold at par ($1,000); had a 12% coupon; and mature in 30 years, on December 31, 2019. Coupon payments are made semiannually (on June 30 and December 31).
a. What was the YTM on January 1, 1990?
b. What was the price of the bonds on January 1, 1995, 5 years later, assuming that interest rates had fallen to 10%?
c. Find the current yield, capital gains yield, and total return on January 1, 1995, given the
price as determined in Part b.
d. On July 1, 2013, 6½ years before maturity, Pennington’s bonds sold for $916 42. What were the YTM, the current yield, the capital gains yield, and the total return at that time?
e. Now assume that you plan to purchase an outstanding Pennington bond on March 1, 2013, when the going rate of interest given its risk was 15 5%. How large a check must you write to complete the transaction? (This is a difficult question.)

32. The following information is taken from the records of CL Company for last year
The following information is taken from the records of CL Company for last year:
Direct materials$5,000
Manufacturing overhead$6,000
Total manufacturing costs$17,000
Beginning work in process inventory$1,000
Cost of goods manufactured$15,000
Direct materials$5,000
What are the correct amounts for direct labor and ending work in process inventory?
DirectEnding Work
Laborin Process
A)$12,000$2,000
B)$11,000$2,000
C)$6,000$1,000
D)$6,000$3,000
33. Accounting Rate of Return

Exercise 14-27
Accounting Rate of Return

You may use the attached spreadsheet to help you complete this activity, but you are not required to do so. You will find the spreadsheet by clicking on the link in the drop-down menu above.

Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.

a. Cobre Company is considering the purchase of new equipment that will speed up the process for extracting copper. The equipment will cost $3,600,000 and have a life of five years with no expected salvage value. The expected cash flows associated with the project are as follows:

b. Emily Hansen is considering investing in one of the following two projects. Either project will require an investment of $75,000. The expected cash revenues minus cash expenses for the two projects follow. Assume each project is depreciable.

c. Suppose that a project has an ARR of 30 percent (based on initial investment) and that the average net income of the project is $120,000.

d. Suppose that a project has an ARR of 50 percent and that the investment is $150,000.

1. Compute the ARR on the new equipment that Cobre Company is considering. Round your answer to one decimal place.
_________________ %

2. Conceptual Connection: Which project should Emily Hansen choose based on the ARR? Notice that the payback period is the same for both investments (thus equally preferred).

_________________

Unlike the payback period, explain why ARR correctly signals that one project should be preferred over the other.

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

_________________

3. How much did the company in Scenario c invest in the project? If required, round your answer to the nearest dollar.
$ _________________

4. What is the average net income earned by the project in Scenario d? If required, round your answer to the nearest dollar.
$ _________________
34. Amount Charged Erroneously to Repairs Expense
Kentucky Enterprises purchased a machine on January 2,2010, at a cost of $120,000. An additional $50,000 was spent for installation, but this amount was charged erroneously to repairs expense. The machine has a useful life of five years and a salvage value of $20,000. As a result of the error,
a. Retained earnings at December 21, 2011, was understated by $30,000 and 2011 income was overstated by $6,000.
B. retained earnings at December 31,2011, was understated by $38,000 and 2011 was overstated by $6,000.
c. retained earnings at December 31, 2011, was understated by $30,000 and 2011 income was overstated by $10,000.
d. 2010 income was understated by $50,000.
35. Plant-wide, department, and activity-cost rates. Acclaim Inc. makes two styles of trophies, basic...
Plant-wide, department, and activity-cost rates. Acclaim Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Acclaim does large custom orders. Acclaim budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, setup and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50. The controller has asked you to compare plant-wide, department, and activity-based cost allocation.

1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plant-wide overhead rate, if total overhead is allocated based on total direct costs. (Don’t forget to include direct material and direct manufacturing labor cost in your unit cost calculation.)
2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department.
3. Calculate the budgeted unit cost of basic and deluxe trophies if Acclaim allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department.
4. Explain briefly why plant-wide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why?
36. Harrelson Company manufactures pizza sauce through two production departments: Cooking and Cannin...
Harrelson 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 month of April, the work in process accounts show the following debits.
CookingCanning
Beginning work in process$0$4,650
Materials24,3009,400
Labor9,2508,010
Overhead34,20027,700
Costs transferred in54,300

Journalize the April transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
DateAccount Titles and ExplanationDebitCredit
April 30

(To record materials used)
30

(To assign factory labor to production)
30

(To assign overhead to production)
30

(To record costs transferred in)
37. May 4: Paid $57,000 cash for building and land The building had a fair market value of $47,000 Pr...
May 4: Paid $57,000 cash for building and land The building had a fair market value of $47,000 Prepare a compound entry.
38. Matthews Delivery Service, Inc., completed the following transactions during its first month of...
Matthews Delivery Service, Inc., completed the following transactions during its first month of operations for January 2012:
a. Matthews Delivery Service, Inc., began operations by receiving $6,000 cash and a truck valued at $11,000. The business issued common stock to acquire these assets.
b. Paid $300 cash for supplies.
c. Prepaid insurance, $700.
d. Performed delivery services for a customer and received $800 cash.
e. Completed a large delivery job, billed the customer $1,500, and received a promise to collect the $1,500 within one week.
f. Paid employee salary, $700.
g. Received $12,000 cash for performing delivery services.
h. Collected $600 in advance for delivery service to be performed later.
i. Collected $1,500 cash from a customer on account.
j. Purchased fuel for the truck, paying $200 with a company credit card. (Credit Accounts payable)
k. Performed delivery services on account, $900.
l. Paid office rent, $600. This rent is not paid in advance.
m. Paid $200 on account.
n. Paid cash dividends of $2,100.
Requirements
1. Record each transaction in the journal. Key each transaction by its letter. Explanations are not required.
2. Post the transactions that you recorded in Requirement 1 in the T-accounts.
Cash
Accounts receivable
Supplies
Prepaid insurance
Delivery truck
Accumulated depreciation
Accounts payable
Salary payable
Unearned service revenue
Common stock
Retained earnings
Dividends
Income summary
Service revenue
Salary expense
Depreciation expense
Insurance expense
Fuel expense
Rent expense
Supplies expense
3. Enter the trial balance in the worksheet for the month ended January 31, 2012.
Complete the worksheet using the adjustment data given at January 31.
a. Accrued salary expense, $700.
b. Depreciation expense, $60.
c. Prepaid insurance expired, $250.
d. Supplies on hand, $200.
e. Unearned service revenue earned during January, $500.
4. Prepare Matthews Delivery Service?s income statement and statement of retained earnings for the month ended January 31, 2012, and the classified balance sheet on that date. On the income statement, list expenses in decreasing order by amount?that is, the largest expense first, the smallest expense last.
5. Journalize and post the adjusting entries beginning with a.
6. Journalize and post the closing entries.
7. Prepare a post-closing trial balance at January 31, 2012.
39. From the following data, prepare a Flexible Budget
From the following data, prepare a Flexible Budget for production of 40,000 units, 60,000 units and 75,000 units of product X, distinctly showing the variable and Fixed Cost as well as the Total Cost. Also indicate the element-wise cost per unit.
Budget Output1,00,000 units Per-unit cost Rs.
Direct Material90
Direct Labour45
Direct Variable Expenses10
Manufacturing Variable Overheads40
Fixed Production Overheads5
Administration Overheads [fixed]5
Selling Overheads [10% fixed]10
Distribution Overheads [20% fixed]15
40. - Picture Pretty manufactures picture frames. Sales for August are expected to be 1
- Picture Pretty manufactures picture frames. Sales for August are expected to be 10,000 units of various sizes. Historically, the average frame requires four feet of framing, one square foot of glass, and two square feet of backing. Beginning inventory includes 1,500 feet of framing, 500 square feet of glass, and 500 square feet of backing. Prices are $0.30 per foot of framing, $6.00 per square foot of glass, and $2.25 per square foot of backing. Ending inventory should be 150% of beginning inventory. Purchases are paid for in the month acquired. Question 1: Determine the quantity of framing, glass, and backing that is to be purchased during August. (five points) Question 2: Determine the total costs of direct materials for August purchases. (five points) Problem 2 - Russell Company has the following projected account balances for June 30, 20X2: Accounts payable $40,000 Sales $800,000 Accounts receivable 100,000 Capital stock 400,000 Depreciation, factory 24,000 Retained earnings ? Inventories (5/31 & 6/30) 180,000 Cash 56,000 Direct materials used 200,000 Equipment, net 240,000 Office salaries 80,000 Buildings, net 400,000 Insurance, factory 4,000 Utilities, factory 16,000 Plant wages 140,000 Selling expenses 60,000 Bonds payable 160,000 Maintenance, factory 28,000 Question 1: Calculate the budgeted net income for June 20X2.(five points) Question 2: Calculate the budgeted total assets as of June 30, 20X2. (five points) Problem 3 - Tylon's Hardware uses a flexible budget to develop planning information for its warehouse operations. For 20X2, the company anticipated that it would have 96,000 sales units for 664 customer shipments. Average storage bin usage for various inventories was estimated to be 200 per day. The costs and cost drivers were determined to be as follows: Item Fixed Variable Cost driver Product handling $10,000 $1.25 per 100 units Storage - 3.00 per storage bin Utilities 1,000 1.50 per 100 units Shipping clerks 1,000 1.00 per shipment Supplies - 0.50 per shipment During the year, the warehouse processed 90,000 units for 600 customer shipments. The workers used 225 storage bins on average each day to sort, store, and process goods for shipment. The actual costs for 20X2 were: Item Actual costs Product handling $10,900 Storage 465 Utilities 2,020 Shipping clerks 1,400 Supplies 340 Question 1: Determine the 20X2 static budget variances. (five points) Question 2: Determine the 20X2 flexible budget variances. (five points)
41. The discount resulting from the determination of a note payable’s present value should be reported...
The discount resulting from the determination of a note payable’s present value should be reported on the balance sheet as a(n)
1.Addition to the face amount of the note.
2.Deferred charge separate from the note.
3.Deferred credit separate from the note.
4.Direct reduction from the face amount of the note.
42. E3-6 (Adjusting Entries) Stephen King, D.D.S., opened a dental practice on January 1, 2012. During...
E3-6 (Adjusting Entries)Stephen King, D.D.S., opened a dental practice on January 1, 2012. During the first month of operations, the following transactions occurred.
1.Performed services for patients who had dental plan insurance. At January 31, $750 of such services was earned but not yet billed to the insurance companies.
2.Utility expenses incurred but not paid prior to January 31 totaled $520.
3.Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $400 per month. Interest is $500 per month.
4.Purchased a one-year malpractice insurance policy on January 1 for $15,000.
5.Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand.
InstructionsPrepare the adjusting entries on January 31. (Omit explanations.) Account titles are Accumulated Depreciation—Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expenses, and Accounts Payable.
43. Does optimal use of an input (such as labor) mean maximizing average output (per unit of input)?
1.Does optimal use of an input (such as labor) mean maximizing average output (per unit of input)? Explain.
2.“One-tenth of the participants produce over one-third of the output. Increasing the number of participants merely reduces the average output.” If this statement were true, would it be consistent with the law of diminishing returns?
44. Additional Case 5.1 About a year ago, Powley Publishing began looking for a new managing editor for.
Additional Case 5.1
About a year ago, Powley Publishing began looking for a new managing editor for its home and garden magazine. The previous editor retired after 25 years on the job. The editors and the HR department debated about the key requirements for a new managing editor. Some felt it was knowledge of the business, others thought it was interpersonal skills. A few others believed it was the ability to attract writing talent and subscribers. Finally, it was decided that HR would screen candidates, and the editors would interview finalists in conjunction with HR. The HR director would make the final choice to avoid competition among the editors.

Advertisem*nts were placed nationally. A number of candidates were tested and interviewed by the HR manager, and references were checked. After a long search, a new managing editor, Jeff, was hired, but it quickly became apparent that a poor selection had been made. Although Jeff was competent, his overbearing management style drove two talented editors to leave for jobs with competitors. Jeff fulfilled all tasks of the position except soliciting writers and subscribers. In addition, Jeff offered no ideas or direction about increasing circulation. After 10 months, the publisher let Jeff go and began looking for a new managing editor.

This time, the firm wants to find someone who is willing to tackle all tasks of the position and who has the right skills and personality mix. The firm wants someone who can start quickly and doesn't require significant training. The ability to innovate is less critical than the motivation to work hard. Recruiting funds are very limited.
39) Refer to Additional Case 5.1. The firm most likely made a poor selection decision because of an inability to:
A) agree on important job characteristics.
B) attract an adequate pool of qualified applicants.
C) decide who would make the selection decision.
D) decide what recruiting source was best to use.
40) Refer to Additional Case 5.1.Which of the following is most likely true given the problems associated with Jeff?
A) HR should have administered a personality test as part of the selection process.
B) Line personnel should have been more involved in the final selection decision.
C) HR should have conducted more thorough reference and background checks.
D) The firm should have taken an applicant-centered approach to recruiting.
41) Refer to Additional Case 5.1. Based on Jeff's performance, it is most likely that the employer failed to properly assess Jeff's:
A) abilities.
B) cognitive skills.
C) general knowledge of the publishing business.
D) motivation for doing the job for which he was hired.
42) The HR department should take sole responsibility to recruit, select, and socialize new employees.
43) Richard has a very high motivation to perform a job well but is somewhat inept. He should be hired because his motivation will offset his lack of ability.
44) An applicant-centered approach to recruiting would most likely:
A) give applicants personality tests.
B) introduce applicants to co-workers.
C) accommodate the schedules of applicants.
D) offer applicants the highest industry wages.
45) Which recruitment source has been linked to the most loyal and satisfied hires?
A) Referrals from current employees
B) Referrals from customers
C) Employment agencies
D) Online job postings
46) If a firm is concerned about changing EEO-related balances among its employee base, it should NOT use:
A) referrals from current employees.
B) college campus recruiting.
C) employment agencies.
D) advertisem*nts.
47) DF Enterprises often recruits former employees when positions become available. What is the most likely benefit of this strategy?
A) Compliance with EEO guidelines
B) Minimal worker demands for benefits
C) Worker familiarity with company values
D) Highest degree of worker loyalty and satisfaction
48) Cora's new fabric and textiles business is looking for its first employees. She hopes to open within the next two weeks and needs an inexpensive, timely recruitment method that will reach a large pool of applicants for long-term work. Her best option is to:
A) create a radio ad.
B) use online career sites.
C) use print advertisem*nts.
D) contact a local headhunter.
45. During its first year of operations, Sugarsmooth, Inc. produced
During its first year of operations, Sugarsmooth, Inc. produced 55,000 jars of hand cream based on a formula containing 10 percent glycolic acid. Unit sales were 53,500 jars. Fixed overhead totaled $27,500 and was applied at the rate of $0.50 per unit produced. The results of the year’s operations are as follows (on an absorption-costing basis):
Sales (53,500 units @ $8.50) …………………………$454,750
Less: Cost of goods sold ……………………………….160,500
Gross margin ………………………………………….$294,250
Less: Selling and administrative (all fixed) ……………120,000
Operating income ……………………………………..$174,250
At the end of the first year of operations, Sugarsmooth is considering expanding its customer base. In its first year, it sold to small drugstores and supermarkets. Now, Sugarsmooth wants to add large discount stores and small beauty shops. Working together, the company controller and marketing manager have accumulated the following information:
a. Anticipated sales to discount stores would be 20,000 units at a discounted price of $6.75. Higher costs of shipping and return penalties would be incurred. Shipping would amount to $45,000 per year, and return penalties would average 1 percent of sales. In addition, a clerk would need to be hired solely to handle the discount stores’ accounts. The clerk’s salary and benefits would be $30,000 per year.
b. Anticipated sales to beauty shops would be 10,000 units at a price of $9. A commission of 10 percent of sales would be paid to independent jobbers who sell to the shops. In addition, an extra packing expense of $0.50 per unit would be incurred because the shops require fewer bottles per carton.
c. The fixed overhead and selling and administrative expenses would remain unchanged and are treated as common costs.

Required:
1. Calculate the cost of Sugarsmooth’s ending inventory at the end of the first year under absorption costing.
2. Calculate the cost of Sugarsmooth’s ending inventory at the end of the first year under variable costing. What is operating income for the first year using variable costing?
3. Prepare a segmented variable-costing income statement for next year. The segments correspond to customer groups: drugstores and supermarkets, discount stores, and beauty shops.
4. Are all three customer groups profitable? Should Sugarsmooth expand its marketing base?
46. Multiple Choice Questions: 1.When government, be it liberal or conservative, reduces funding for...
Multiple Choice Questions:

1.When government, be it liberal or conservative, reduces funding for social programs, the middle classes generally suffer the most. (p. 323)
True
False

2.Generalist human services workers have been known to outperform traditional professional workers in providing some services. (p. 330)
True
False

3.Generalist human services workers must have earned BA degrees.(p. 330)
True
False

4.Traditional professional human services workers do not object to being supervised by a professional from another discipline. (p. 331)
True
False

5.All professional human services workers are eligible to receive third party payments.(p. 331)
True
False

6.Human services workers are frequently faced with making choices between personal and professional values when working with clients. (p. 329)
True
False

7.Many educators believe that graduates of recognized undergraduate human services programs should be considered professionals. (p. 331)
True
False

8.Many human services workers believe that only human services workers who have earned a graduate degree in traditional human services programs should be considered professionals. (p. 331)
True
False

9.Activists can expect strong support from the community when proposing radical changes. (p. 333)
True
False

10. Many health care professionals have been slow to respond to the needs for sexual expression in later life individuals because (p. 326)
a. Some find it different to change traditional attitudes
b. Some view sexual activity among older adults as a health risk.
c. Some view it as immoral
d. All of the above
e. None of the above

11. Among older adults, sexual intimacy poses many risks and should always be discouraged. (p. 326)
True
False

12. According to the U.S. Census Bureau, in the 2030s, one out of five of our population will be age 65 or older. (pg. 327)
True
False

13 . Whom do human services workers serve? (pg. 331 )
a.the client,
b.the agency for which one works
c. the government
d. it can be all of the above
e. none of the above

1

47. A limited company issued a prospectus inviting applications for 2,000 shares of Rs.Rs.10 each at a...
A limited company issued a prospectus inviting applications for 2,000 shares of Rs.Rs.10 each at a premium of Rs.Rs.2 per share payable as follows:
On ApplicationRs.2
On AllotmentRs.5 (including premium)
On First CallRs.3
On Second and Final CallRs.2
Applications were received for 3,000 shares and allotment was made pro-rata to the applicants of 2,400 shares. Money overpaid on applications was employed on account of sum due on allotment.
Ramesh, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited. Mohan, the holder of 60 shares failed to pay the two calls and his shares were forfeited after the second and final call.
Of the shares forfeited, 80 shares were sold to Krishna credited as fully paid for Rs.9 per share, the whole of Ramesh’s share being included.
Show journal and cash book entries and the Balance Sheet.
48. Presented here are the components in Salas Company’s income statement. Determine the missing...
Presented here are the components in Salas Company’s income statement. Determine the missing amounts.

49. Ex 9-17 Entries for sale of fixed asset Equipment acquired on January 8, 2013, at a cost of...
Ex 9-17 Entries for sale of fixed asset
Equipment acquired on January 8, 2013, at a cost of $140,000, has an estimated useful life of 16 years, has an estimated residual value of $8,000, and is depreciated by the straight-line method.
a. What was the book value of the equipment at December 31, 2016, the end of the year?
b. Assuming that the equipment was sold on July 1, 2017, for $96,700, journalize the entries to record (1) depreciation for the six months until the sale date, and (2) the sale of the equipment.

50. How do I solve the excel Image text transcribed for accessibility: In preparing these statements, th
Image text transcribed for accessibility: In preparing these statements, the intern determined that Toxaway's only variable selling and administrate expense is a 10% sales commission on all sales. The company's total fixed expenses include $72,000 common fixed expenses that would continue to be incurred even if the Commercial or Residential segment are discontinued, $38,000 of fixed expenses that would be avoided if the Residential segment is dropped and $55,000 of fixed expenses that would be avoided if the Commercial segment is dropped. Required: 1. Do you agree with the interns decision to use an absorption format for her segmented inc statement? 2-a. Based on the interns segmented income statement, can you determine how she allocated company's common fixed expenses to the Commercial and Residential segments? 2-b. Do you agree with her decision to allocate the common fixed expenses to the Commercial Residential segments? 3. Redo the intern's segmented income statement using the contribution format

Perfectgrader - Fall Semester Accounting Assistance (2024)

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