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Accounting - 20 Multiple Choice

Question 1 Trademarks or trade names must be renewed every 40 years can be considered intangibles with indefinite lives are developed internally and thus should not have any related costs capitalized and amortized are synonymous with internally developed goodwill Question

Inventory, Income Tax, Cash Flows, Allowance Accounts

P 3-8 The Ferdon Company uses a periodic inventory system. The following is partial information from its income statements for 2007 and 2008: 2007 2008 Beginning inventory $(2) $(4) Sales 220,000 (6) Purchases 118,000 140,000 Purchases returns 2,000 3,000 Ending Inventory 48,000 74,000 Sales retur

Growth, terminal value, annual withdrawals, tax impact

This problem uses a tax deferred 401(k) pension plan as the basis for considering the choice among different types of mutual funds. 1. This first question illustrates the large amount to which a modest amount will grow over an extended time period. Bozena's contribution $1,600 Company's match 800

Random Accounting Questions

See attached file for clarity. 1. All of the following are true regarding journal entries except: A. Journal entries show the effects of transactions. B. Journal entries provide account balances. C. The debited account titles are listed first. D. Each journal entry should begin with a date. 2. Marvin's Art Inc. purchas

Accounting F-7

** Please see the attached file for the complete problem description ** Brurien,Inc., operates a retail store with two departments, A and B. Its departmental income statement for the current year follows: (please see the attachment F-7-1) Burien allocates building depreciation, maintenance, and utilities on the basis of sq

Preparing a Manufacturing Statement

*Please look at the attachment!!!! *Please describe how to calculated!! Information for Gifford, Inc., as of December 31 follows: (see attachment) Prepare a manufacturing statement for the yea ended December 31. Administrative Salaries $35,000 Depreciation of Factory Equipment $25,000 Depreciation of Delivery

Physical Flow Schedule and Computing Cost

1. Medi Syrup is a large cough syrup producer. The cough syrup passes through several stages during production. In department B, the following activity was recorded for October. - Beginning work-in-process on October 1 was 40,000 gallons. - 20,000 gallons were started into production in department B during the month. - 55,000

Durocher Guitar Cash Flow Reporting

Durocher Guitar Company is in the business of manufacturing top quality, steel-string folk guitars. In recent years the company has experienced working capital problems resulting from the procurement of factory equipment, the unanticipated buildup of receivables and inventories, and the payoff of a balloon mortgage on a new manu

Cost classification in an accounting problem

Please describe how to calculate the following variables. Ringle Company is manufacture of compact disks (CD). Place each of the following costs in the appropriate column. cost item Period cost Direct materials Direct labor Factory overhead a. Factory maintenance salarly , $40000 b. Salary of factory supervisor, $700

Management Accounting

Morisot Manufacturing Ltd. uses a normal job order costing system. Selected account information and balances for the year ended December 31, 2009 are: January 1, 2009 December 31, 2009 Finished Goods

Partnership Basis of Assets

1. Partner Jordan received a distribution of $80,000 cash from JKL Partnership in complete liquidation of his partnership interest. If Jordan's outside basis immediately before the distribution was $90,000, and if the partnership has made (and not revoked) a 754 election in a prior year, which of the following statements if tr

S Corporation Accounting Problems

1. During 2009, Shirley Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2008, her stock basis was $4,000. The corporation earned $11,000 ordinaty income during the year. It has no accumulated E &P. which statement is correct? a. Nutt recognizes a $1,000 LTCG b.

Management Accounting: Kraken Ltd.

Kraken Ltd. had a balance of $70,275 in work in progress on January 1st, represented by the following two jobs: Job Number 207 Direct Materials $8,400 Direct Labor $15,300 Job Number 244 Direct Materials $9,000 Direct Labor $7,200 Total Direct Materials $17,400 Total Direct Labor $22,500 At December 31st only o

Management Accounting for Virtual Accounting

Monet Creations Ltd. suffered a fire that destroyed virtually the entire inventory on hand in the warehouse. The fire had also spread to the administration building where much of the accounting records were destroyed. The only information that could be pieced together from some of the computer files follows: Cost of Goods Sol

Management Accounting Problems

Latrec Ltd. uses a process costing system and reported an opening work in process inventory of 8,500 physical units (65% complete with respect to conversion). During the period 12,500 units were started. Ending work in process inventory was 50% complete for conversion with 4,000 physical units. All direct materials are added at

Analysis to figure out if I should make or buy

Knox Manufacturing incurs unit costs of $15 ($9 variable and $6 fixed) in making a subassembly part for its finished product. A supplier offers to make 10,000 of the assembly part at $11 per unit. If the offer is accepted, all variable costs and $1 of fixed costs per unit will be saved. Instructions (a) Prepare an analysis

Estates, Trusts and Gifts Tax Problems

1. Horton dies in 2009, leaving a taxable estate of $3.7 million. In 2002, he made a taxable gift of $100,000 upon which he paid no tax due to the availability of the unified tax credit. Calculate the estate tax due. 2. In June 2009, Roy died in an auto accident while vacationing in Montana. Discuss the tax ramifications o

Outside Supplier Financials, Operating income, Overhead

See attached file for complete problems. 2. Is the offer from the outside supplier financially attractive? Why? 3. a) Prepare a report that shows the effect on the company's total net operating income of buying part A55 from the supplier rather than continuing to make it inside the company. b) Which alternative should

Billy Corporation

Billy Corporation is a multi-divisional company whose managers have been delegated full profit responsibility and complete autonomy to accept or reject transfers from other divisions. Division X produces 2,000 units of a subassembly that has a ready market. One of these subassemblies is currently used by Division Y for each fina

Answer the following questions

1.At 12/31/2006, the financial statements of Dollar Market included the following numbers: Beginning inventory $100,000 Ending inventory 80,000 Cost of goods sold 270,000 Sales revenue 540,000 The company's inventory turnover ratio for the year is a. 2 b. 2.7 c. 3 d. 6 2. Credits

Variable, Semivariable, and Fixed Costs

1. A-1 Corporation extracts ore for eight different companies in Colorado. The firm anticipates variable cost for $65 per ton along with annual fixed overhead of $840,000, which is incurred evenly throughout the year. These costs exclude the following semivariable costs, which are expected to total the amounts shown for the hig

Interim Reporting

J. J. Kersee Corporation, a publicly traded company, is preparing the interim financial data which it will issue to its stockholders and the Securities and Exchange Commission (SEC) at the end of the first quarter of the 2006-2007 fiscal year. Kersee's financial accounting department has compiled the following summarized reve

Define and explain several budgetary terms

Governmental accounting gives substantial recognition to budgets, with budgets being recorded in the accounts of the governmental unit. What is meant by "budgetary accounting"? What is the purpose of a governmental accounting system? Why is the budget recorded in the accounts of a governmental unit? Include in your discussion th

Horizontal and Vertical Analysis of a Balance Sheet

One summary of the Balance sheet horizontal and vertical and one summary of the income statement horizontal and vertical. Note: a summary statement should tell the story of each statement from both horizontal and vertical of view in "one" summary. The company is Las Vegas Sands Corp. Attached: horizontal and vertical

Total Overhead Variance

Reid Shaw Company produces one product, a putter, called the GO-Putter. Shaw uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $800,000 com

ROI to measure the performance

The Manning Company uses ROI to measure the performance of its operating division. A summary of the annual reports from the two divisions is shown below. The company's cost of capital is 12%. Division A Division B Capital invested $2400 $4000 Net income

Payroll Weakness and control

Rockfield Construction Company, headquartered in Las Vegas, Nevada, built a Apartment Complex in Boulder City. The construction foreman, Slim Pickins, hired the workers for the project. Pickins had his workers fill out the necessary tax forms and sent the employment documents to the home office. Work on the motel began on May 1