• Q : Preparation of merchandise purchases budgets....
    Accounting Basics :

    Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the three most re

  • Q : Prepare the journal entry to record depreciation for year 2....
    Accounting Basics :

    Volarexinc. acquires a new machine it is comprised of 2 different components ( A and B) that are expected to be overhauled at different intervals.

  • Q : What is the required amount of each deposit....
    Accounting Basics :

    Korman Company wishes to accumulate $300,000 by May 1, 2018 by making 8 equal annual deposits beginning May 1, 2010 to a fund paying 8% interest compounded annually. What is the required amount of e

  • Q : Prepare the journal entry to record the capitalization....
    Accounting Basics :

    Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2012. (Credit account titles are automatically indented when amou

  • Q : Book value of thie purchase....
    Accounting Basics :

    The Cardinal company has just purchased $48,550,000 of plant and equipment that has an estimated useful life of 15 years. Suppose at the end of 15 years this plant and equipment can be salvaged for

  • Q : What is a firm''s weighted-average cost of capital....
    Accounting Basics :

    What is a firm's weighted-average cost of capital if the stock has a beta of 1.45. Treasury bills yield 5%, and market portfolio offers an expected return of 14%? In addition to equity, the firm fin

  • Q : Estimate the manufacturing costs....
    Accounting Basics :

    Estimate the manufacturing costs if Robert’s produces 100,000 widgits in January.  Estimate the manufacturing costs if Robert’s produces 120,000 widgits in February.

  • Q : Sales dollars in the month of the sale....
    Accounting Basics :

    Ruby’s expects to collect 30% of the sales dollars in the month of the sale and 70% in the month following the sales.

  • Q : Compute the units product cost....
    Accounting Basics :

    During a year, The company produce 25,000 Units and sold 20,000 units.The selling price of the company's product 50$ per unit

  • Q : Cost in dollars for the required purchase of apple....
    Accounting Basics :

    a) How many pounds of apples should Rae’s purchase in January? b) What is the cost in dollars for the required January purchase of apples?

  • Q : What were sales for last year....
    Accounting Basics :

    Evans Company produces a single product. During the most recent year, the company had a net operating income of $90,000 using absorption costing and $84,000 using variable costing. The fixed overhea

  • Q : Maintain an ending inventory....
    Accounting Basics :

    Abigail’s Bake Shop produces cheese bread sticks. The company expects to sell 3,000 packages of the cheese bread sticks in January, 2,800 packages in February, and 3,200 packages in March. The

  • Q : Calculation of future and present value....
    Accounting Basics :

    What effect do interest rates have on the calculation of future and present value? How does the length of time affect future and present value?

  • Q : Prepare the journal entries to record the mortgage loan....
    Accounting Basics :

    Kelso Co. receives $479,000 when it issues a $479,000, 8%, mortgage note payable to finance the construction of a building at December 31, 2010. The terms provide for semiannual installment payments

  • Q : Prepare the appropriate adjusting entry....
    Accounting Basics :

    On June 1, you bought a piece of machinery for $50,000. The estimated useful life of the machine is 8 years, with no residual value estimated at that time. It is now December 31, which is your year-

  • Q : Show the appropriate journal entries....
    Accounting Basics :

    On July 2, 20x2, you decided to start up a new business - Heavenly Books Inc., an off-campus bookstore where students can purchase textbooks and supplies at reduced prices.

  • Q : Net operating income of the change....
    Accounting Basics :

    What should be the overall effect on the company's monthly net operating income of this change?

  • Q : What is the total interest cost of the bonds....
    Accounting Basics :

    Foley Company issued $400,000 of 6%, 5-year bonds at 98, which pays interest annually. Assuming straight-line amortization, what is the total interest cost of the bonds?

  • Q : Extent of audit testing and the audit process....
    Accounting Basics :

    Identify your thoughts with respect to your assessment of audit risk and inherent risk for the overall business. How would this assessment affect the extent of audit testing and the audit process?

  • Q : Constitute a financial shenanigan....
    Accounting Basics :

    Explain the technique the company is using that may constitute a financial shenanigan. Indicate both the technique used and how the auditor should react.

  • Q : Prepare a corrected trial balance on the trial balance form....
    Accounting Basics :

    An additional investment of $1,000 made by Kelita during the month was not entered in the capital account (the entry to Cash was made).

  • Q : Preparation of cash budgets....
    Accounting Basics :

    The interest is computed based on the beginning balance of the loan for the month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets

  • Q : Determine the Investment account....
    Accounting Basics :

    If a short-term debt investment is sold, the Investment account is:

  • Q : Entry to record the interest accrual....
    Accounting Basics :

    Steven Co. purchased 30, 6% Johnston Company bonds for $30,000 cash plus brokerage fees of $300. Interest is payable semiannually on July 1 and January1. The entry to record the December 31 interest

  • Q : Prepare the journal entries required to adjust the inventory....
    Accounting Basics :

    Prepare the journal entries required to adjust the inventory records at year-end, assuming that Mario's uses 1. Average cost, 2. Last-in, first-out

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