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E8.6 Common stock issue price; E8.8 Preferred stock dividend amount

E 8.6 Common stock-calculate issue price and dividend amount The balance sheet for common stock is the following: Common stock without par value, 2,000,000 shares authorized, 400,000 shares issued, and 360,000 shares outstanding - $2,600,000 Required: a. Calculate the average price at which the shares were issued.

Delivery Service and Period Costs

Determine the total amount of (a) delivery service (product) costs and (b) period costs. An incomplete cost of goods manufactured schedule is presented below. Madlock Manufacturing Company Cost of Goods Manufactured Schedule For the Year Ended December 31, 2005 Work in process (1/1) $210,000 Direct materials Raw mate

EOQ question

Sample question to help me with my homework; I am having a hard time figuring out the steps. Thanks! Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas' fastest moving inventory item has a demand of 6000 units per year. The cost of each u

Recalculate after first year. What is different

Before entering graduate school, a student estimated the value of earning an MBA at $300,000. Based on that analysis, the student decided to go back to school. After completing the first year, the student ran the NPV calculations again. How would you expect the NPV to look after the student has completed one year of the program?

Adler Industries: Transfer price for transistor division

54. Adler Industries is a vertically integrated firm with several divisions that operate as decentralized profit centers. Adler's Systems Division manufactures scientific instruments and uses the products of two other Adler divisions. The Board Division manufactures printed circuit boards (PCBs). One PCB model is made exclusivel

Lowater Sailmakers: Calculate change in operating income

Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sails per year. The following information relates to current production: Sale price per unit $150 Variable costs per unit: Manuf

Compute Overhead Application Rate and Variances

55. Corinne's Country Rockers uses flexible budgeting. The company's budget for variable overhead is $24,000 and for fixed overhead is $15,000. When Corinne's analyzes this overhead using activity-based costing, the budgeted overhead of $39,000 is traced to six activities: materials handling, machinery setup, assembly, finishing

CPA Manufacturing: Compute cost per unit, overhead allocation, cost of Job #846

1) CPA Manufacturing produces electronic storage devices, and uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and indirect manufacturing costs. Total indirect manufacturing costs for January were $300 million, and were allocated to each product on the basi

Break Even, Cash Flow, and After Tax Net Income

Problem 16-3 Mike Solid started a pizzeria in 1999. For this purpose he rented a building for $1,800 per month. Two persons were hired to work full time at the restaurant and six college students were hired at work 30 hours per week delivering pizza. An outside accountant was hired for tax and bookkeeping purposes at a cost

Classifying for Differential, Opportunity, and Sunk Costs

Scenario: Northwest Hospital is a full service hospital that provides everything from major surgery and emergency room care to outpatient clinics. The hospital's Radiology Department is considering replacing an old inefficient X-ray machine with a state of the art digital X-ray machine. The new machine would provide higher quali

Suggest possible ways of handling the five scenarios

Scenario A You're applying for a new job as a database administrator. You're currently a software engineer, but due to layoffs, you've been performing most of your department's database-related projects for almost a year now. You want your resume to be taken seriously for the database administrator position. What Do You Do

Journal entries for pensions plans; accounting Change and Error Analysis

See attached file. Problem P20-9 Prepare worksheet and journal entries for pension plans. Problem P22-2 How to create a comparative income statement. P20-9 (Comprehensive 2 year Worksheet) Mount Co. has the following defined benefit pension plan balances on January 1, 2006 Project benefit obligati

Goodwill, ROI, depreciation, PV for new machine with entries

Accounting what the numbers mean 9th edition. Chapter 6 Exercise 6.12 Goodwill- effect on ROI and operating income Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair market value. Suppose that Target Co. had operating income of $90,000 and net a

Manufacturing Companies and Higher Fixed Costs

1. Over the past few decades, the cost structure of manufacturing companies has shifted. In the early 1900s, direct material costs were substantial while fixed costs represented a small fraction of total manufacturing costs. However, the cost structure has reversed and now fixed costs make up the majority of total manufacturing

Journal Entry to Record Income Tax

(Two Temporary Differences, One Rate, Beginning Deferred Taxes) The following facts related to Krung The Corporation. 1) Deferred tax liability, January 1, 2007, $40,000 2) Deferred tax asset, January 1, 2007, $0 3) Taxable income for 2007, $95,000 4) Pretax financial income for 2007, $200,000 5) Cumulative tempor

Temporary Differences, Valuation Account, Entries and IS

P19-10 (Two NOL's, No Temporary Differences, No Valuation Account, Entries and Income Statement) Felicia Rashad Corp. has pretax financial income(or loss) equal to taxable income(or loss) from 1999 through 2007 as follows. Income Loss Tax Rate 1999 $29,000 30% 2000 40,000 30% 2001 17,0

Overall and segmented operating profit; qualitative factors

52. Casagrande Company is currently operating at 80 percent capacity. Worried about the company's performance, Mike, the general manager, reviewed the company's operating performance. (The sales and related cost information provided below are in millions of dollars.) Segment North South East West Sales

Jim's Landscaping flexible budget; Banner Inc variable overhead performance

Jim's Landscaping is the business of maintaining and improving yards in surrounding areas. The company bases its overhead cost budgets on the following data: Variable overhead costs: Supplies $4 per yard Machine maintenance $2 per yard Chemicals $6 per yard Fixed overhead costs: Salaries and wages $2300 per

Mixed Costs in a Service Business vs. a Manufacturing Business

As the management accountant preparing the budget for the upcoming year, you know how important it is to properly classify costs as being fixed, variable, or mixed. As you are expecting to be promoted to headquarters soon, you want to leave a procedure manual for your junior accountants to have handy for future reference. Whi

Purchase vs pooling method for Goodwin

"ACC 401 Chapter 2 " The financial statements for the year ended December 31, 2003: GOODWIN CORR INCOME STATEMENT Revenue $2,700,000 $600,000 Expenses 1,980,000 400,000 Net income $720,000 $200,000 RETAINED EARNINGS STATEMENT Beginning retain

Joanna's computations at ABC Bank; HECS liability

Question 1 : (a) The Mason Gift Company had sales of $730 000 in the past year, with operating expenses of $95 000 and cost of goods sold of $280 000. Interest expenses amounted to $32 500 and $12 500 in interest income was received. Shares purchased in January 2009 for $22 000 were sold for $29 500. Compute the taxable income

Grieg Landscaping construction of new plant

Grieg Landscaping began construction of a new plant on December 1, 2010. On this date the company purchased a parcel of land for $139,000 in cash. In addition, it paid $2,000 in surveying costs and $4,000 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,000, with $1,000 being received