For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers. A. $200 for repairing damage that resulted from the careless unloading of a new machine. B. $ 7,000 cost of designing and registering a trademark. C. $ 1,400 in legal
Preparing accounting entries
USE THE FOLLOWING INFORMATION FOR QUESTIONS #9 - #12 Michele, Inc. is in the process of evaluating its manufacturing overhead costs. Michele uses a four-variance analysis of its manufacturing overhead costs. The results for April are as follows: Budgeted direct labor hours per unit is used
1. Product costs are expensed when the product is a. purchased b. manufactured c. inventoried d. sold 2. During December 2002, ABC Company purchased $50,000 of raw materials. The company's manufacturing overhead totaled $40,000 and total manufacturing costs were $130,000. Assuming beginning inventory of raw materials
CMA problem. Use this information to answer problems #22 and #23. Osawa, Inc. planned and actually manufactured 200,000 units of its single product in 2001, its first year in operation. Variable manufacturing costs were $20 per unit produced. Variable operating costs were $10 per unit sold. Planned an
Smithers, Inc. manufactures and sells a wide variety of consumer products. The products are viewed as sufficiently profitable, but recently, some product line managers have complained about the charges for the call center that handles phone calls from customers about the products. Product lines are currently charged for call c
ABC received its bank statement for the month ending March 31, 2002, and reconciled the statement balance to the March 31, 2002, balance in the cash account. The reconciled balance was determined to be $5,600. The reconciliation recognized the following items: 1. ABC had deposits in transit in the amount of $1,700. These d
Problem 1 Send your completed problem via the dropbox in the student tools area. Due June 24. You will be graded on the accuracy of your answer and the usage of excel. Parts 2,3, 4, & 5 must use excel cell referencing and the chart wizard. The problem solution is worth a total of 10 pts. I will take o
Preparing T accounts, beginning and ending balances. See the attachment for the problem description. 1. The following data pertain to Martin Company for September: Raw Materials Inventory, September 1 ...$80,000 Work in Process Inventory, September 1 ...$95,000 Finished goods inventory, September 1
Accounting problems: stock value, paid-in capital, treasury stock. See attachment for accounting problems.
The balance of Company A at the beginning of the year showed liabilities of $346,000. During the year liabilities increased by 14 000, assets increased by 65 000, and paid in capital also increased 20 000 to 165 000. Dividends declared and paid during the year were 51 000. At the end of the year owners equity totaled 402 000. Wh
Go to the web page below: http://www.forio.com/cgi-bin/simcat/dclinks.cgi? action=view_category&category=Simulation&FD_rand=7533&FD_p=1 and find the Near Beer Game, which is near the bottom of the list of simulations. Try different strategies to bring your beer supply change into equilibrium as quickly as possible. Desc
A) Summarize the above information in a useful table. b) What are the decision variables? Pick a logical symbol for each one. c) What is the objective function? Is this a maximization or a minimization problem? d) What are ALL of the constraint equations? e) It turns out that marketing vastly underestimated the pr
Draw up the Manufacturing and Trading accounts for the years ended 30 April 1999 and 30 April 2000, using 1.Absorption Costing 2.Marginal Costing
The Sultan of Brunei is reportedly the world's richest person, with wealth estimated at $37 billion. How much could the Sultan spend yearly for 40 years if he were to devote the entire $37 billion to leading a life of luxury?
An auto dealership, KM Motors, is offering its customers free credit on a $10,000 car. The customer pays $4000 down and then the balance at the end of 2 years. A competing dealership, T Motors, does not offer free credit but will provide $500 off of the list price. If the interest rate is 10 percent, which company is offering
The interest rate is 9 percent. What is the present value of $10 million to be received in 30 years?
You place an order for 400 units of inventory at a unit price of $50. The supplier offers terms of 2/10, net 40. a. How long do you have to pay before the account is overdue? If you take the full period, how much should you remit? b. What is the discount being offered? How quickly must you pay to get the discount? If you
You have $125,000.00 on deposit with no outstanding checks or uncleared deposits. If you deposit a check for $110,000.00 does this create a disbursement float or a collection float? What is your available balance? Book balance?
Prob 7 Consider the following financial statement information for the Acme Corporation: Item Beginning Ending Inventory $120,000,000 $105,000,000 Accounts receivable 80,000,000
A portfolio is invested 40% in stock R, 35% in Stock S, and 25% in Stock T. State of Probability of Rate of Return if state occurs Economy State of Economy Stock R Stock S Stock T Boom 0.25 0.3 0.4 0.25 Good 0.4 0.1 0.15 0.1 Poor 0.25 0 -0.05 -0.1 Bust 0.1 -0.25 -0.15 -0.2 What is the expected return of the por
Acme Corporation has no debt outstanding and a total market value of $12,000,000. Earnings before interest and taxes (EBIT) are projected to be $1,100,000 if economic conditions are normal. If there is a strong expansion in the economy then EBIT will be 25 percent higher. If there is a recession, then EBIT will be 75 percent
You are required to complete a comprehensive tax return. You are required to fill out the forms 1040 4562 4684 2106 and schedules A B C D E. You are required to show a small loss on schedule C and you are required to show a loss between 5000 and 7000 on schedule E. The property is classified as 100% rental. On schedule E a de
Which form of business organization might best suit the following? a. A consulting firm with several senior consultants and support staff. b. A house painting company owned and operated by a college student who hires some friends for occasional help. c. A paper goods company with sales of $100 million and 2000 employees
Duval Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Duval would have 400,000 shares of stock outstanding. Under Plan II, there would be 200,000 shares of stock outstanding and $5 million in debt outstanding. The interest rate on the debt is 1
Year: 1994 Norminal Wage: 12.07 Price Level: 148.2 Calculate the real wage.
What is meant by the term "agency costs"?
What is meant by the term "agency problem"? Why is this important for corporate governance?
Roulette Enterprises expects to pay a perpetual annual dividend of 65c. The beta of their stock has been calculated ex-post to be 0.8. If the market-risk premium and risk free rate were 8% p.a. and 7% p.a. respectively, what is the highest price an investor would pay for their shares?
Lancelot Fund Management has found the Holy Grail; a mean-variant efficient portfolio of stocks with an expected return of 25% p.a., a beta of 1.5 and a standard deviation of expected returns of 20% p.a. If the risk free rate is 7% p.a., deduce the expected market return and standard deviation.