Affects of Transactions on Financial Statements. See attached file for full problem description.
1. What is the market price of a bond issued at a discount? a) the present value of the principle amount at the market (effective) rate of interest plus the present value of all future interest payments at the market (effective) rate of interest b) the present value of its principal amount at the market (effective) rate of in
Use the following to answer questions questions below: Cretian Credit Checks produces two styles of credit reports: Individual and Corporate. The difference between the two is the amount of background information and data collection required. The Corporate report uses more skilled personnel because additional checking and d
1. How does cost accounting differ from financial accounting? Does this require the maintenance of two sets of information, or do they use the same information? When is cost accounting valuable to an organization?
The Fabulous Furniture Company manufactures three types of office furniture: Desks, Book Shelves, and Filing Cabinets. Segment data on sales and expenses for the past six months follow: Desks Book Shelves Filing Cabinets Sales $675,000
Shasta Company's flexible budget (in condensed form) for an expected activity level of 75,000 units of production based on 187,500 standard machine hours is provided below. Variable overhead $843,750 Fixed Overhead $1,406,250 Total Overhead $2,250,000 During 1997 the company's actual operating result
The standards for one case of Dimwits are: Direct materials 7.5 lbs @ $1.30 / lb Direct labor 5 hours @ $11 / hr Variable overhead (based on machine hours) 5 hours @ $6.50 /hr During the week ending September 28, the
31. Temme Inc., a retail establishment, expects to sell $450,000 of a particular item in October. Its gross profit percentage is 70 percent. The ending inventory in September of this item cost $18,000 and the company wants an ending inventory of $22,000. How much needs to be purchased? A) $131,000 B) $139,000 C) $446,000
Please answer the following questions about financial accounting 1. Differentiate broadly between financial accounting and managerial accounting. 2. Differentiate between financial statements and financial reporting. 3. What are the major objectives of financial reporting? 4. What is the likely limitation of 'gen
The growing, harvesting, sorting, and grading of oranges prior to manufacturing juice is part of the joint product cost. Based on the information in the scenario, determine the share of joint cost allocated to pulp-free juice and high-pulp juice. How is the joint cost allocated to each product? You may use the formulas: Jo
You have been invited to bid on an engagement to assist a new merchandising organization in developing its cost accounting systems. The CEO has moved up through the sales ranks and has little formal training in accounting or financial management. She plans to hire a CFO, but before doing so she has asked you, as part of your bid
Assets, Liabilities, Gains and Losses A company is required to report a liability in its balance sheet when it expects to lose a law suit and the amount of the expected loss can be reasonably estimated. Conversely, a company is prohibited from reporting a receivable in its balance sheet when it expects to win a lawsuit even
Agency Theory According to agency theory, the existence of debt imposes agency costs. Required: a. What are agency costs? b. Explain why an increase in debt would increase agency costs and what the resulting effect would be for debtholders. c. What strategy might debtholders utilize to counter potential adverse agency e
Behavioural Accounting Research & Qualitative Characteristics Identified by the IASB. See attached file for full problem description. 4-1 One goal of behavioural accounting research is to assess the effect of accounting numbers and presentations on decision making. Design a case with alternative presentations of the s
Case 2-13 FASB Exposure Drafts and Emerging Issues Visit the FASB's home page on the World Wide Web. http://fasb.org/ Required: a. Review recently posted FASB Documents and Information to determine if any important new initiatives are being considered by the FASB. b. What exposure drafts are currently outstanding? c
1. The requirement that only transaction data capable of being expressed in terms of money be included in the accounting records relates to the a. cost principle. b. monetary unit assumption. c. economic entity assumption. d. both a and b above. 2. A financial statement that reports accounting data at a specific
The income statement and balance sheet columns of Grant Company's work sheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $50,000 $34,000 $42,000 1. The net income (or loss) for the period is a. $50,000
1. Blankinship, Inc., sells a single product. The company's most recent income statement is given below. Sales $200,000 Less variable expenses (120,000) Contribution margin 80,000 Less fixed expenses (50,000) Net income $ 30,000 Required: a. Contribution margin ratio is b. Breakeven point in total s
Problem 1. Production Budget (L03) Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows: Sales in Units July ........................... 30,000 August ........................ 45,000 September .................... 60,000 October .................
ADVANCED COST ACCOUNTING MULTIPLE CHOICE QUESTIONS 1. Absorption costing measures contribution to profit as: A) Sales less unit- level costs spent of goods sold. B) Sales less absorption cost of goods sold. C) Sales less absorption cost of goods sold. D) Sales less all costs including operating expenses. 2. In a job-
Eliminate the wrong answer (or write the answer A, B, C, or D next to the question). 9. Which of the following is not a stock exchange? A. NYSE B. NSADAQ C. AMEX D. NASD 12. General Motors, ExxonMobil, Coca Cola, and IBM, are a few of the big companies listed on what stock exchange? A. NYSE B. NSAD
North Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50. It cost North Manufacturing $40 to place a order, and the carrying cost is 25% of the unit cost. If pumps are ordered in quantities of 200, North Manufacturing can get a 3% discount on the cost of pumps. Should North Manufacturing orders 200
Standard absorption cost per unit.. A cost analyst for Stamper Manufacturing Co. has assembled the following data about the Model 24 stamp pad: The piece of sheet metal from which six pad cases can be made costs $0.18. This amount is based on the number of sheets in a 4,000 pound bundle of sheet metal, which is the usual pur
In this problem I need help calculating the dollar value of DimLok's current annual fixed costs, determinating the number of units that DimLok must sell in order to achieve both profit objectives considering all constraints. Also assuming that Don Barnes decides to sell 40,000 units at $200 per unit and 24,000 units at $180 per
How can I make a difference between a favorable and unfavorable variance?
KC manufactures part KE456 used in several of its models. Monthly production costs for 1,000 units are as follows: Direct materials $ 40,000 Direct labor 10,000 Variable overhead costs 30,000 Fixed overhead costs 20,000 Total costs $100,000 It is estimated that 10% of the fixed overhead costs assigned to
Profits SBU's: Compairson of Variable and Full Costing Harvard Company manufactures hair brushes that sell at wholesale for $2 per unit. The company had no beginning inventory in 2004. These data summarize the 2004 and 2005 operations. (see chart in the attached file) Required: Prepare the following, using a spreadsh
Kristen Langdon, the sales manager at a large bicycle manufacturer, has secured an order from a major department store that is due to ship on November 1. She is eager to please the department store in the hop of getting more future business. She asks Bryan Collins, the company's purchasing agent, to procure all necessary parts
Scenario: Andragon Manufacturing, a small private company, has recently hired you as their accounting department supervisor. You have been told that your role will also include some of the day-to-day accounting. John Edwards, the company's CEO and principal shareholder, has told you during your hiring interview that his str
Scenario: Andragon Manufacturing, a small private company, has recently hired you as their accounting department supervisor. You have been told that your role will also include some of the day-to-day accounting. John Edwards, the company's CEO and principal shareholder, has told you during your hiring interview that his s