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# Accounting

### A farmer near Bloomington owns a combine and uses it ti provide harvesting service to other farmers. He receives revenue of \$40,000 a year, plus the avoidance of \$2,000 in fees he would have to pay someone else to harvest his wheat if he did not own the machine. Fuel and repairs are \$10,000 a year and the farmer does not have another profitable use for the time he spends harvesting wheat. Unfortunately, the existing combine is worn out and fully DEPRECIATED. It can be sold for its \$1,000 spare parts value, but a dealer will allow \$5,000 as a trade in allowance on a new \$100,000 combine. The new combine will last for a estimated 10 years , after which it will have a negligible salvage value. The farmer is in a 28percent tax bracket and requires 10 percent after tax return on investments. IS THE NEW COMBINE AN ATTRACTIVE INVESTMENT? (assume January 1 installation)

A farmer near Bloomington owns a combine and uses it ti provide harvesting service to other farmers. He receives revenue of \$40,000 a year, plus the avoidance of \$2,000 in fees he would have to pay someone else to harvest his wheat if he did not own the machine. Fuel and repairs are \$10,000 a year and the farmer does not have a

### EOQ calculation: what is the revised EOQ?

Question 12: A product whose EOQ is 40 experiences a decrease in ordering cost from \$90 per order to \$10. The revised EOQ is: a) three times as large b) one-third as large c) nine times as large d) one-ninth as large e) cannot be determined Please select the right answer and explain how you have calculated it

### Norton's Mufflers: calculate which model is most profitable

Norton's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following unit data apply: Model X Model Y Model Z Selling Price \$80 \$90 \$100 Direct Materials

### Proration of overhead

Please see the attached file. 1) Compute the budgeted manufacturing overhead rate for 2004. 2) Compute the under-or over-allocated manufacturing overhead of Zaf Radiator in 2004. Dispose of this amount using a) Write-off Cost of Goods Sold b) Proration based on ending balances (before proration) in Work i

### Determine actual bad debts amount; match accounting concept with description

Please see the attachment. 3. After examining the records of AIS Consultants Incorp., you determined the following end-of-year amounts: 2006 2005 Credit Sales 200,000 160,000 Accounts Receivable 45,000 40,000 Allowance for Bad Debt 2,000 1,000 AIS Consultants uses the percentage-of-sales method to estimate bad deb

### Q1-2

Please see the attachment. 1. (8pts) Match as many of the descriptions as possible with one of the terms. If no match is possible, answer "7." Place the number to the right of the letter below. a. Reports the major classes of operating cash receipts and payments of an entity during a period b. Investing and financin

### Accounting for Machine improvements and exchanges

1. An improvement made to a machine increased its fair market value and its production capacity by 25% without extending the machine's useful life. The cost of the improvement should be ...... (expensed, debited to accumulated depreciation, capitalized in the machine account, allocated between accumulated depreciation and the

### Calculating the equilibrium price

If the supply/demand for a product are given by: Supply: p = 1/6q^2; demand p = -1/6q^2 +36 Where p is the price and q is quantity. What is the equilibrium price?

### Sales and Manfuacture Overhead budgets

How to calculate manufacturing overhead budget and sales budget? Zeller Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for \$12 and \$25, respectively. Because of the intense competition Zeller faces, management budgets sales semiannually. Its projections for the

### Research Methods: Scientific Method of Data Collection

Based on the analysis of the last six months' sales, your boss notices that sales of beef products are declining in your chain's restaurants. As beef entrée sales decline, so do profits. Fearing beef sales have declined due to several newspaper stories reporting E.coli contamination discovered at area grocery stores, he sugge

### EPS and Dividends - Stock Price

Company's current return on equity is 14%. It pays out one half of earnings as cash dividends (payout ratio = .5). Current book value per share is \$50. Book value per share will grow as the company reinvests earnings. Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE

### Accounting issues for not-for-profit entities due to the nature of their revenue

Not-for-profit entities usually receive minimal - if any - revenue from traditional sources like sales. Discuss the accounting issues that arise because of this.

### Two major constraints in the presentation of accounting data

Please help answer the following question regarding accounting. Provide at least 200 words. Can you describe for me the two major constraints inherent in the presentation of accounting information and the significance they play in financial accounting?

### Overhead cost drivers for Tulsa Photographic Supply: units of production

The controller for Tulsa Photographic Supply company has established the following activity cost pool and cost drivers Activity cost pool budgeted overhead cost machine setup................. \$250,000 Material handling.............. 75,000 Hazardous waste control........ 25,000 Qu

### Computations of break even point for B&B Company, Steven Newman, Inc.

Break-Even Computation B&B company reports the following items: Direct materials per unit . . . . . . . . \$ 2.25 Direct labor per unit . . . . . . . . . . 3.95 Variable overhead per unit . . . . 1.80 Monthly rent . . . . . . . 2,200.00 Monthly depreciation . . . . . 680.00 Other monthly fixed costs. . . . . . . . 2,40

### Selected transactions for H Burns, Inc: classify by type of account and effects

See Attached file. Selected transactions for H Burns, Inc, an interior decorating firm, in its first month of business are as follows: Jan 2 Invested \$15,000 cash in business in exchange for common stock. 3 Purchased used car fro \$4,000 cash for use in business. 9 Purchased supplies on account for \$500. 11

### Batista Manufacturing, Podsednik, Hancock: equivalent units of production

The Welding Department of Batista Manufacturing Company has the following production and manufacturing cost data for February 2008. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,000 units Materials \$18,000 1/10 comple

### Make-or-Buy

5-43 Make-or-buy Tanner Appliance Company manufactures 12,000 units of part M4 annually. The part is used in the production of one of its principal products. The following cost information is available on part M4: Direct Materials \$11 Direct Labor 9 Unit-related support 4 Batch-related support 5

### Comprehensive Fixed Asset - Selig Sporting Goods Inc

Selig Sporting Goods Inc. has been experiencing growth in the demand for its products over the last several years. The last two Olympic Games greatly increased the popularity of basketball around the world. As a result, a European sports retailing consortium entered in to an agreement with Selig's Roundball Division to purchase

### Dropping or Retaining Flights

The following additional information is available about flight 581: A. Member of the flight crew are paid fixed annual salaries, whereas the flight assistance are paid by the flight. B. One-third of the liability insurance is a special charge assessed against Flight 581 because in the opinion of the insurance company, the d

### 8 Accounting Questions: Classification of transactions by account type

Please see the attached excel file. There are 8 multiple choice questions. 1. HIJ Company paid \$500 cash for salary expenses. Which of the following choices accurately reflects how this event would affect the company's financial statements? Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow A)

### Accounting: correcting entries for posting errors

1.Speedy Bike Company received a \$940 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash \$490 and a credit to Service Revenue \$490. The correcting entry is a. debit Cash, \$940; credit Accounts Receivable, \$940. b. debit Cash, \$450 and Accounts Receivable, \$490; credit Servi

### Individual Income Tax: overvaluation of charitable contribution of artwork

Cheryl (a calendar year taxpayer) donates a statue to a local art museum (a qualified charity). The statue cost Cheryl \$13,000 ten years ago and, according to one of Cheryl's friends (an amateur artist), is worth \$50,000. On her income tax return, Cheryl deducts \$50,000 as a charitable contribution. Upon later audit by the IRS,

### The General's Favorite Fishing Hole Chart of accounts

The General's Favorite Fishing Hole Chart of accounts Assets Revenues 101 Cash 401 Registration Fees 142 Office Supplies 144 Food Supplies Expenses 145 Prepaid Insurance 511 Wages Expense 181 Fishing Boats 521 Rent Expens

### Questions about classification of accounts in the AIS

1. The Equipment account's proper classification is: a. Revenue b. Liability c. Expense d. Asset 2. The Supplies account's proper classification is: a. Asset b. Revenue c. Liability d. Expense 3. The Cost of Goods Sold account's proper classification is: a. Asset b. Revenue c. Liability

### Calculating revenues, expenses, and income

Fill in the blanks in the following separate income statements a through e. Identify any negative amount by putting it in parenthesis. See attached file. Sales............................................... \$60,000 \$42,500 \$36,000 \$ ? \$23,600 Cost of goods sold .............................. Merchandise In

### Calculating the Stolen Amount from Cripple Creek Company

Cripple Creek Company has one trusted employee who, as the owner said, "handles all of the bookkeeping and paperwork for the company." This employee is responsible for counting, verifying, and recording cash receipts and payments, making the weekly bank deposit, preparing checks for major expenditures, making small expenditures

### Why was the net income larger and how would you react to the controller's action

The controller of Summit Systems Inc. devised a new costing system based on tracing the cost of activities to products. The controller was able to measure post-manufacturing activities, such as selling, promotional, and distribution activities, and allocate these activities to products in order to have a more complete view of th

### Regression Analysis for Annual Nursing Salaries

Golden Years Easy Retirement Homes owns several adult care facilities throughout the southeast United States. A budget analyst for Golden Years has collected the data found in the file Dat9-10.xls on your data disk describing for each facility: the number of beds(X1), annual number of medical in-patient days(X2), the total annua

### Flow of Costs through Manufacturing Accounts and Operating Income

Please see the attached file. Stone Tools, Inc., had the following account balances as of January 1: Direct Materials Inventory \$8,700.00 Work in Process Inventory \$76,500.00 Finished Goods Inventory \$53,000.00 Manufacturing Overhead \$- During the month of January, all of the following occurred: