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Chapter: 11- Current Liabilities -Problem: 1 >> The financial statements of TSMC appear in Appendix A. The complete annual report, including the notes to the fi nancial statements, is available at the company’s website. InstructionsRefer to TSMC’s financial statements and answer the following questions about liabilities.a. What were TSMC’s total current liabilities at December 31, 2016? What was the increase/decrease in TSMC’s total current lia
Answer Preview: This is based on the financial statements of TSMC in 2016 based on this link : Microsoft Word - TSMC …

, Chapter: 17- Statement of Cash Flows -Problem: 5 >> The net income for Metz Co. for 2020 was $280,000. For 2020, depreciation on plant assets was $70,000, and the company incurred a loss on disposal of plant assets of $12,000. Compute net cash provided by operating activities under the indirect method, assuming there were no other relevant changes in the company’s accounts.
Answer Preview: Cash flows from operating activities Net income 280000 Adjustments to reconcile net i…

, Chapter: 5 -Problem: 4 >> On June 10, Diaz Company purchased $8,000 of merchandise on account from Taylor Company, FOB shipping point, terms 2/10, n/30. Diaz pays the freight costs of $400 on June 11. Goods totaling $300 are returned to Taylor for credit on June 12. On June 19, Diaz pays Taylor Company in full, less the discount. Both companies use a perpetual inventory system. Instructions a. Prepare separate entries for
Answer Preview: a. The transaction entry is as follows: i) Purchases Cash Accounts payable Purchases Credit memo fro…

, Chapter: 13- Corporations: Organization and Share Capital Trans -Problem: 5 >> The following equity accounts are in the ledger of Galindo Company at December 31, 2020.Share Capital—Ordinary (€5 stated value) .........................€2,000,000 Share Premium—Treasury Shares .............................................10,000 Share Premium—Preference ....................................................679,000 Share Premium—Ordinary .............................................
Answer Preview: GALINDO COMPANY Equity Share capitalpreference 8 50 par 16000 shares is…

, Chapter: 14- Corporations: Dividends, Retained Earnings, and In -Problem: 3 >> On January 1, 2020, Frontier Corporation had $1,000,000 of common stock outstanding that was issued at par. It also had retained earnings of $750,000. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $400,000 for the year. Instructions Journalize the declaration of a 15% stock dividend on December 10, 2020, for the following independent assumptions. a. P
Answer Preview: a Stock Dividends 21000 X 18 378000 Common Stock Dividends Distributable 21000 X 10 210…

, Chapter: 21- Process Costing -Problem: 1 >> Identify which costing system—job order or process cost—the following companies would primarily use: (a) Mars Foods (China) Co. Ltd., (b) Jif Peanut Butter, (c) Gulf Craft (luxury yachts), and (d) Warner Bros. Motion Pictures.
Answer Preview: a Process co…

, Chapter: 23- Incremental Analysis -Problem: 5 >> Bima Yatsen became Chief Executive Officer of Pahlawan Enterprises two years ago. At the time, the company was reporting lagging profits, and Bima was brought in to “stir things up.” The company has three divisions, electronics, fiber optics, and plumbing supplies. Bima has no interest in plumbing supplies, and one of the first things he did was to put pressure on his accountants to reallocate som
Answer Preview: a Many factors need to be considered when determining whether to close a division The loss of jobs c…

, Chapter: 6 -Problem: 19 >> Shereen Company reported the following information for November and December 2022. Shereen's ending inventory at December 31 was destroyed in a fire. Instructionsa. Compute the gross profit rate for November.b. Using the gross profit rate for November, determine the estimated cost of inventory lost in the fire. Transcribed
Answer Preview: a. To compute the gross profit rate for November, you need to know the cost of goods sold. This can …

, Chapter: 14- Corporations: Dividends, Retained Earnings, and In -Problem: 3 >> Use the equity section of an annual report and identify the major components. Instructions Select a well-known company, search the Internet to obtain its most recent annual report, and then answer the following questions. a. What is the company’s name? b. What classes of share capital has the company issued? c. For each class: 1. How many shares are authorized, issued, and/or outstanding? 2. What
Answer Preview: a The company s name is Apple Inc b Apple Inc has issu…

, Chapter: 6- Inventories -Problem: 4 >> The financial statements of Apple are presented in Appendix D. The complete annual report, including the notes to its financial statements, is available at the company’s website.
Answer Preview: ATAN2(y,x) returns the arc tangent of the two numbers x and y . It is similar to calculating the arc …

, Chapter: 16- Investments -Problem: 4 >> Control Alt Design Ltd. acquired 30% of the outstanding ordinary shares of Walter Company on January 1, 2020, by paying £800,000 for the 45,000 shares. Walter declared and paid £0.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Walter reported net income of £320,000 for the year. At December 31, 2020, the market price of Walter ordinary shares was £24 per sha
Answer Preview: a Jan 1 Share Investments 800000 Cash 800000 Mar15 Cash 13500 Dividend Revenue 45000 X 030 13500 Jun…

, Chapter: 3 -Problem: 7 >> "Adjusting entries are required by the historical cost principle of accounting." Explain why this statement is true or false.
Answer Preview: The statement is false because adjusting entries ar…

, Chapter: 14- Corporations: Dividends, Retained Earnings, and In -Problem: 7 >> On January 1, 2020, Eddy Industries had retained earnings of £650,000. During the year, Eddy had the following selected transactions.1. Declared cash dividends £120,000. 2. Corrected overstatement of 2019 net income because of inventory error £40,000. 3. Earned net income £350,000. 4. Declared share dividends £90,000. Instructions Prepare a retained earnings statement for the year.
Answer Preview: EDDY INDUSTRIES Retained Earnings Statement For the Yea…

, Chapter: 19- Managerial Accounting -Problem: 7 >> National Express reports the following costs and expenses in June 2020 for its delivery service (amounts are in thousands). Instructions Determine the total amount of (a) delivery service (product) costs and (b) period costs. Transcribed Image Text: Indirect materials W 6,400 W16,000 Drivers' salari
Answer Preview: a Delivery service product costs Indirect material…

, Chapter: 24- Budgetary Planning -Problem: 3 >> Thome and Crede, accountants, are preparing their service revenue (sales) budget for the coming year (2020). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Average hourly billing rates are auditing £80, tax £90, and consulting £110. InstructionsPrepare the service revenue (sales) budget for 2020 by
Answer Preview: Hours Rate Dept Auditing 2300 80 90 Tax 3000 Consulting 1500 110 Totals …

, Chapter: 5 -Problem: 3 >> Amazon.com, lnc.'s financial statements are presented in Appendix D. Financial statements of Walmart Inc. are presented in Appendix E. (Use Walmart's January 31, 2020, financial statements for comparative purposes.) The complete annual reports of Amazon and Walmart, including the notes to the financial statements, are available at each company's respective website. Instructions a. Based on the inf
Answer Preview: a. 1. Gross profit for 2019 = Net product sales - Cost of goods sold. 2. Gross profit rate for 2019 …

, Chapter: 24- Budgetary Control and Responsibility Accounting -Problem: 4 >> Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2017, are as shown below. In addition, Clarke incurs $180,000 of indirect fixed costs that were budgeted at $175,000. Twenty percent (20%) of these costs are allocated to the Patio Furniture Division. Instructions(a) Prepare a responsibility report for the Patio Fu
Answer Preview: (a) Responsibility Report for the Patio Furniture Division for the Year Ended December 31, 2017 Reve…

, Chapter: 17- Statement of Cash Flows -Problem: 7 >> Meera Ltd.’s comparative statements of financial position are presented below.Additional information: 1. Net income was £22,590. Dividends declared and paid were £16,500. 2. All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for £5,000. Instructions a. Prepare a statement of cash flows for 2020 using
Answer Preview: a MEERA LTD Statement of Cash Flows For the Year Ended December 31 2020 Cash flows from opera…

, Chapter: 4 -Problem: 14 >> The adjusted trial balance for Carter Bowling Alley at December 31, 2022, contains the following accounts. a. Prepare a classified balance sheet; assume that $30,000 of the note payable will be paid in 2023. b. Comment on the liquidity of the company. Transcribed Image Text: Buildings Accounts Recei
Answer Preview: To prepare a classified balance sheet for Carter Bowling Alley at December 31, 2022, we can use the …

, Chapter: 15- Non-Current Liabilities -Problem: 1 >> The financial statements of TSMC appear in Appendix A. The complete annual report, including the notes to the financial statements, are available at the company’s website. Instructions Refer to TSMC’s financial statements and answer the following questions about liabilities. a. What was TSMC’s total non-current liabilities at December 31, 2016? What was the increase/decrease in total non-curren
Answer Preview: a At December 31 2016 TSMCs noncurrent liabilities was NT178165 million There was …

, Chapter: 20- Job Order Costing -Problem: 1 >> Galli Group begins operations on January 1. Because all work is done to customer specifications, the company decides to use a job order cost system. Prepare a flowchart of a typical job order system with arrows showing the flow of costs. Identify the eight transactions.
Answer Preview: Raw Materials Inventory 1 Purchases 4 Materials used Factory Labor 2 Fac…

, Chapter: 22- Cost-Volume-Profit -Problem: 1 >> Bonita ASA manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production. Instructionsa. Define the terms variable costs, fixed costs, and mixed costs.b. Classify each cost above as either variable, fixed, or mixed. Transcribed Image Text:
Answer Preview: a The determination as to whether a cost is variable fixed o…

, Chapter: 10 -Problem: 2 >> Research and development costs are:a. Expensed under GAAP.b. Expensed under IFRS.c. Expensed under both GAAP and IFRS.d. None of the answers choices is correct.
Answer Preview: c. Expensed under both GAAP and IFRS. Explanation: Research and …

, Chapter: 3- Adjusting the Accounts -Problem: 12 >> Selected accounts of Al-Kazaz Interiors are shown as follows. InstructionsAfter analyzing the accounts, journalize (a) the July transactions and (b) the adjusting entries that were made on July 31. July transactions were for cash. Transcribed Image Text: Supplies Expense 7/31 900 Supplies Salaries a
Answer Preview: a) Journal entries of july transaction of AL- Kazaz interior i. 7/10 supplies A/c .Dr. 650 To cash A…

, Chapter: 17- Statement of Cash Flows -Problem: 11 >> The comparative statements of financial position for Amaral Reis SA as of December 31 are presented as follows.Additional information: 1. Operating expenses include depreciation expense of R$40,000. 2. Land was sold for cash at book value of R$20,000. 3. Cash dividends of R$20,000 were paid. 4. Net income for 2020 was R$48,000. 5. Equipment was purchased for R$95,000 cash. In addition, equipment c
Answer Preview: AMARAL REIS COMPANY SA Statement of Cash Flows For the Year Ended December 31 2020 Cash flows from o…

, Chapter: 4 -Problem: 15 >> The following are the major balance sheet classifications. Instructions Classify each of the following accounts taken from Faust Company's balance sheet. Transcribed Image Text: Current assets (CA) Long-term investments (LTI) Property, plant, and equipment (PPE) Intangible assets (IA) Current liabil
Answer Preview: Current assets (CA) Accounts receivable Cash Inventory Prepaid expenses Stock investments …

, Chapter: 16- Investments -Problem: 2 >> The following are two independent situations:1. Lorfeld Ltd. acquired 10% of the 500,000 ordinary shares of Northbrook Enterprises at a total cost of €11 per share on June 17, 2020. On September 3, Northbrook declared and paid a €160,000 dividend. On December 31, Northbrook reported net income of €550,000 for the year.2. Saa Ltd. obtained significant influence over McCarthy Company by buying 30% o
Answer Preview: 1 June 17 Share Investments 500000 10 11 550000 Cash 550000 Sept 3 Cash 16000 Dividend Rev…

, Chapter: 26- Standard Costs and Balanced Scorecard -Problem: 8 >> Using the information in P26.2, compute the overhead controllable variance and the overhead volume variance. Data from P26.2:Ayala plc accumulates the following data relative to jobs started and finished during the month of June 2020. Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for £400,000. Sel
Answer Preview: Overhead controllable variance Actual Overhead 18…

, Chapter: 19- Managerial Accounting -Problem: 2 >> Bell Audio started its production in October 2020. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory.Raw material costs for an audio system will total €74 per unit. Workers on the production lines are on average paid €12 per hour. An audio system usually takes
Answer Preview: a b Cost Item Raw materials 1 Wages for workers 2 Rent on equipment Indirect materials 3 …

, Chapter: 23- Incremental Analysis -Problem: 5 >> Pine Street Ltd. makes unfinished bookcases that it sells for £62. Production costs are £36 variable and £10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for £70. Variable finishing costs are expected to be £6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfini
Answer Preview: Sell Process Further Net Income Increase Decrease Sales price pe…

, Chapter: 8 -Problem: 3 >> High-quality international accounting requires both high-quality accounting standards and: a. A reconsideration of SOX to make it less onerous. b. High-quality auditing standards. c . Government intervention to ensure that the public interest is protected. d. The development of new principles of internal control activities.
Answer Preview: b. High-quality auditing standards. Acceptance by the I…

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, Chapter: 16- Investments -Problem: 1 >> The financial statements of Apple are available in Appendix D. The complete annual report, including the notes to the financial statements, is available at the company’s website. Instructions a. Determine the percentage increase for (1) short-term marketable securities from 2015 to 2016, and (2) long-term marketable securities from 2015 to 2016. b. Using Apple’s consolidated statement of cash fl
Answer Preview: a Percentage increase from 2015 to 2016 1 Shortterm marketa…

, Chapter: 4 -Problem: 9 >> The adjusted trial balance for Phoebe Company is presented Instructions a. Prepare an income statemen t and an owner's equity statement for the year. Phoebe did not make any capital investments during the year. b. Prepare a classified balance sheet at July 31. Transcribed Image Text: Phoebe Company
Answer Preview: Solution a) Phoebe Company income statement for the year ended July 31, 2022 Revenue from operations …

, Chapter: 15- Non-Current Liabilities -Problem: 5 >> Huebner Hotels has assets of €1,800,000, liabilities of €1,100,000, and equity of €700,000 at December 31, 2020. Compute and discuss the debt to assets ratio at year-end.
Answer Preview: The debt to assets ratio 1100000 1800000 61 This …

, Chapter: 27- Planning for Capital Investments -Problem: 7 >> Youqui Transport is considering three capital expenditure projects. Relevant data for the projects are as follows. Annual income is constant over the life of the project. Each project is expected to have zero residual value at the end of the project. Youqui uses the straight-line method of depreciation. Instructionsa. Determine the internal rate of return for each project. Round the internal r
Answer Preview: a Project Capital Investment Net Annual Cash Flows Internal Rate of Return Factor Closest …

, Chapter: 10- Plant Assets, Natural Resources, and Intangible As -Problem: 1 >> The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2020. 1. Paid $5,000 of accrued taxes at time plant site was acquired. 2. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit. 3. Paid $850 sales taxes on new delivery truck. 4. Paid $17,500 for parking lots and driveways on new p
Answer Preview: a Under the historical cost principle the acquisition cost for a plant asset includes all ex…

, Chapter: 22- Cost-Volume-Profit -Problem: 10 >> Yoko Kawamura defines contribution margin as the amount of profit available to cover operating expenses. Is there any truth in this definition? Discuss. Contribution Margin Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution marg
Answer Preview: There is no truth in Yokos statement …

, Chapter: 22- Cost-Volume-Profit -Problem: 4 >> Bora Lee is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add W24,000,000 in fixed costs to the W270,000,000 currently spent. In addition, Bora is proposing that a 5% price decrease (W40,000 to W38,000) will produce a 20% increase in sales vo
Answer Preview: a Current breakeven point 40000X 24000X 270000000 where X pairs of shoes 16000X 270000000 X 16875 pa…

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, Chapter: 12- Accounting for Partnerships -Problem: 10 >> Data pertaining to Pelmar Co. are presented in BE12.9. Instead of payment from personal assets, assume that Fernetti receives €24,000 from partnership assets in withdrawing from the firm. Journalize the withdrawal of Fernetti. BE12.9Capital balances in Pelmar Co. are Lango $40,000, Oslo $30,000, and Fernetti $20,000. Lango and Oslo each agree to pay Fernetti $12,000 from their personal assets. Lan
Answer Preview: Withdrawal from partnership,payment from par…

, Chapter: 8- Fraud, Internal Control, and Cash -Problem: 1 >> Identify which control activity is violated in each of the following situations, and explain how the situation creates an opportunity for fraud or inappropriate accounting practices. 1. Once a month, the sales department sends sales invoices to the accounting department to be recorded. 2. Leah Hutcherson orders merchandise for Wular Lake Company; she also receives merchandise and authorizes paymen
Answer Preview: 1 Violates the control activity of documentation procedures Source documents should be p…

, Chapter: 5- Accounting for Merchandising Operations -Problem: 19 >> Below is a series of cost of goods sold sections for companies B, F, L, and R. Instruction Fill in the lettered blanks to complete the cost of goods sold sections. Transcribed Image Text: B R $ 180 Beginning inventory Purchases Purchase returns and allowances Net purchases Freight-in Cost of goods p
Answer Preview: a 1580 1620 40 1620 40 1580 Purch Purch rtns allow Net purch b 1690 1580 110 1580 1…

, Chapter: 16- Investments -Problem: 7 >> Liu Limited purchased all the outstanding ordinary shares of Yang Plastics on December 31, 2020. Just before the purchase, the condensed statements of financial position of the two companies appeared as follows (amounts in thousands).Liu used current assets of ¥1,218,000 to acquire the shares of Yang Plastics. The excess of this purchase price over the book value of Yang Plastics’ net assets is de
Answer Preview: a 2020 Dec 31 Share Investments 1218000 Current Assets 1218000 b LIU LIMITED AND SUBSIDIARY Workshee…

, Chapter: 1 -Problem: 2 >> Identify and describe the activities in the accounting process.
Answer Preview: The accounting process includes a number of activities, including financial planning, reco…

, Chapter: 10- Plant Assets, Natural Resources, and Intangible As -Problem: 1 >> Yockey HVAC purchased a delivery truck. The total cash payment was £28,220 including the following items.Negotiated purchase price..................................£24,000 Installation of special shelving ...............................1,200 Painting and lettering .................................................780 Motor vehicle license .................................................140 Annual
Answer Preview: The following four items are expenditures necessary to acquire the truck and get it …

, Chapter: 27- Planning for Capital Investments -Problem: 1 >> Luang Textiles is considering the purchase of a new machine. Its invoice price is €122,000, freight charges are estimated to be €3,000, and installation costs are expected to be €5,000. Residual value of the new machine is expected to be zero after a useful life of 4 years. Existing equipment could be retained and used for an additional 4 years if the new machine is not purchased. At that time, th
Answer Preview: Purchase New Machine Sales Costs and expenses Cost of goods sold Selling expenses Administrative exp…

, Chapter: 10- Plant Assets, Natural Resources, and Intangible As -Problem: 7 >> Linton Company purchased a delivery truck for $34,000 on January 1, 2020. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2020 and 12,000 in 2021. Instructions a. Compute depreciation expense for 2020 and 2021 using (1) The straight-line method,(2) The units-of-activity metho
Answer Preview: a 1 2020 34000 20008 4000 2021 34000 20008 4000 2020 2021 34000 2000 8 4000 2020 2021 C…

, Chapter: 21- Process Costing -Problem: 2 >> Wilson Furniture Ltd. manufactures living room furniture through two departments: Framing and Upholstering. Materials are entered at the beginning of each process. For May, the following cost data are obtained from the two work in process accounts. InstructionsAnswer the following questions.a. If 3,000 sofas were started into production on May 1 and 2,500 sofas were transferred to Upholstering, wh
Answer Preview: a The unit cost of materials is 150 450000 3000 b T…

, Chapter: 24- Budgetary Planning -Problem: 9 >> Katsuta Industries expects credit sales for January, February, and March to be ¥220,000, ¥260,000, and ¥300,000, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month.
Answer Preview: Collections from Customers Credi…

, Chapter: 10 -Problem: 9 >> Here are selected 2022 transactions of Ridge Company. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $62,000 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2019. The computer cost $45,000 and had a useful life of 5 years with no salvage value. The computer was sold for $14,000 cash. Dec.
Answer Preview: Date Account Titles Debit Credit Jan-01 Accumulated Depreciation - Machinery $ …

, Chapter: 3- Adjusting the Accounts -Problem: 19 >> The following data are taken from the comparative statements of financial position of Newman Billiards Club, which prepares its financial statements using the accrual basis of accounting. Members are billed based upon their use of the club’s facilities. Unearned service revenues arise from the sale of gift certificates, which members can apply to their future use of club facilities. The 2020 incom
Answer Preview: a. Prepa…

, Chapter: 7- Accounting Information Systems -Problem: 4 >> Presented below is information related to Anping Manufacturing for its first month of operations. Identify the balances that appear in the accounts receivable subsidiary ledger and the accounts receivable balance that appears in the general ledger at the end of January. Accounts Receivable Accounts receivables are debts owed to your company, usually from sales on credit.
Answer Preview: Accounts Receivable Subsidiary Ledger General Ledger Ling Ltd Accounts …

, Chapter: 4- Completing the Accounting Cycle -Problem: 2 >> The adjusted trial balance columns of the worksheet for Auburn Company are as follows. Instructions Complete the worksheet. Transcribed Image Text: Auburn Company Worksheet (partial) For the Month Ended April 30, 2020 Adjusted Trial Balance Income Statement Balance Sheet Cr. Cr. Cr. Account Titles D
Answer Preview: AUBURN COMPANY Partial Worksheet For the Month Ended April 30 202…

, Chapter: 14- Corporations: Dividends, Retained Earnings, and In -Problem: 8 >> On January 1, 2020, Eddy Corporation had retained earnings of $610,000. During the year, Eddy had the following selected transactions. 1. Declared cash dividends $120,000. 2. Corrected overstatement of 2019 net income because of inventory error $40,000. 3. Earned net income $350,000. 4. Declared stock dividends $90,000. Instructions Determine the retained earnings balance at the end of the year.
Answer Preview: Retained Earnings Overstatement of 2019 net inc 40000 …

, Chapter: 4 -Problem: 5 >> Whitegloves Janitorial Service was started 2 years ago by Jenna Olson. Because business has been exceptionally good, Jenna decided on July 1, 2022, to expand operations by acquiring an additional truck and hiring two more assistants. To finance the expansion, Jenna obtained on July 1, 2022, a $25,000, 10% bank loan, payable $10,000 on July 1, 2023, and the balance on July 1, 2024. The terms of the
Answer Preview: a. Correct balance sheet as of December 31, 2022: Whitegloves Janitorial Service Balance Sheet Decem…

, Chapter: 16- Investments -Problem: 8 >> Presented below are two independent situations.1. Chicory Cosmetics acquired 15% of the 200,000 ordinary shares of Racine Fashion at a total cost of €13 per share on March 18, 2020. On June 30, Racine declared and paid a €60,000 dividend. On December 31, Racine reported net income of €122,000 for the year. At December 31, the market price of Racine Fashion was €15 per share. The shares are classif
Answer Preview: 1 2020 Mar 18 Share Investments 390000 Cash 200000 X 15 X 13 …

, Chapter: 14- Corporations: Dividends, Retained Earnings, and In -Problem: 6 >> During 2020, Roblez Corporation had the following transactions and events. 1. Declared a cash dividend. 2. Issued par value common stock for cash at par value. 3. Completed a 2-for-1 stock split in which $10 par value stock was changed to $5 par value stock. 4. Declared a small stock dividend when the market price was higher than par value. 5. Made a prior period adjustment for overstatement
Answer Preview: Paidin Capital Item Capital …

, Chapter: 19- Managerial Accounting -Problem: 7 >> As noted in this chapter, because of global competition, companies have become increasingly focused on reducing costs. To reduce costs and remain competitive, many companies are turning to outsourcing. Outsourcing means hiring an outside supplier to provide elements of a product or service rather than producing them internally.Suppose you are the managing partner in an accounting firm with 30 full
Answer Preview: Discussion guide This is a difficult decision While the direct costs of outsour…

, Chapter: 22- Cost-Volume-Profit -Problem: 6 >> PCB Group manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are €300 and €200, respectively. Production in Units..................................... 3,000Production CostsDirect materials...............................
Answer Preview: a Cost Fixed Variable Mixed Direct materials X Direct labor X Utilities X Property taxes X Indirect …

, Chapter: 10 -Problem: 6 >> Ceda Co. has equipment that cost $80,000 and that has been depreciated $S0,000. Instructions Record the disposal under the following assumptions. a. It was discarded with no cash received. b. It was sold for $21,000. c. It was sold for $31,000.
Answer Preview: a. The record disposal is as follows: i) Ending Stock ii) Purchases (cost of $80,000 less d…

, Chapter: 9- Accounting for Receivables -Problem: 1 >> CAF AG sells office equipment and supplies to many organizations in the city and surrounding area on contract terms of 2/10, n/30. In the past, over 75% of the credit customers have taken advantage of the discount by paying within 10 days of the invoice date.The number of customers taking the full 30 days to pay has increased within the last year. Current indications are that less than 60% of the
Answer Preview: a. Accounts Receivable Aging Schedule for CAF: Age Category Total A/R Uncollectible Amount Not yet due 840,000 16,800 Less than 30 days past 308,000 1…

, Chapter: 6- Inventories -Problem: 1 >> Anatolia Designs is trying to determine the value of its ending inventory at February 28, 2020, the company’s year-end. The accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of ?48,000. However, she didn’t know how to treat the following transactions so she didn’t record them. a. On February 26, Anatolia shipped to a customer
Answer Preview: a The goods should not be included in inventory as they were shipped FOB shipping po…

, Chapter: 3- Adjusting the Accounts -Problem: 6 >> Mendoza Company accumulates the following adjustment data at December 31. 1. Services performed but unbilled total $3,000. 2. Supplies of $300 have been used. 3. Utility expenses of $552 are unpaid. 4. Services performed of $260 collected in advance. 5. Salaries of $800 are unpaid. 6. Prepaid insurance totaling $350 has expired. Instructions For each of the above items indicate the following. a. T
Answer Preview: Item a Type of Adjustment b Accounts before Adjustment 1 Accrued Revenues Assets Und…

, Chapter: 17- Statement of Cash Flows -Problem: 18 >> Aloha Ltd. reported sales revenue of NT$2 million for 2020. Accounts receivable decreased NT$140,000 and accounts payable increased NT$300,000. Compute cash receipts from customers, assuming that the receivable and payable transactions related to operations. Accounts Payable Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a sta
Answer Preview: Sales revenue NT2000000 …

, Chapter: 4 -Problem: 9 >> The proper order of the following steps in the accounting cycle is:a. Prepare unadjusted trial balance, journalize transactions, post to ledger accounts, journalize and post adjusting entries. b. Journalize transactions, prepare unadjusted trial balance, post to ledger accounts. journalize and post adjusting entries. c. Journalize transactions, post to ledger accounts, prepare unadjusted trial bal
Answer Preview: c. Journalize transactions, post to ledger accounts, prepare unadjusted trial balance, journalize and post adjusting entries. The accounting cycle is …

, Chapter: 12- Accounting for Partnerships -Problem: 4 >> Yang and Sammi operate a beauty salon as partners who share profits and losses equally. The success of their business has exceeded their expectations; the salon is operating quite profitably. Sammi is anxious to maximize profits and schedules appointments from 8 a.m. to 6 p.m. daily, even sacrificing some lunch hours to accommodate regular customers. Yang schedules her appointments from 9 a.m. to
Answer Preview: a The stakeholders in this situation are Yang and Sammi b The consequences of Yangs actions are that …

, Chapter: 27- Planning for Capital Investments -Problem: 4 >> BAK Ltd. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently is not equipped to do. Estimates regarding each machine are provided below. InstructionsCalculate the net present value and profitability index of each machine. Assume a 9% discount rate. Which machine should be purchased?
Answer Preview: Machine A Cash Flows X 9 Discount Factor Present Value Present value of …

, Chapter: 15- Long-Term Liabilities -Problem: 4 >> Talkington Electronics issues a $400,000, 8%, 15-year mortgage note on December 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $59,612. Payments are due on December 31. Instructions a. Prepare an installment payments schedule for the first 4 y
Answer Preview: a Annual Interest Period Cash Payment Interest Expense Reduction of Principal Princi…

, Chapter: 19- Managerial Accounting -Problem: 16 >> An analysis of the accounts of Roberts Industries reveals the following manufacturing cost data for the month ended June 30, 2020. Costs incurred: raw materials purchases £54,000, direct labor £47,000, manufacturing overhead £19,900. The specific overhead costs were: indirect labor £5,500, factory insurance £4,000, machinery depreciation £4,000, machinery repairs £1,800, factory utilities £3,100,
Answer Preview: a ROBERTS INDUSTRIES Cost of Goods Manufactured Schedule For the Month Ended June 30 2020 Work in pr…

, Chapter: 24- Budgetary Planning -Problem: 6 >> For Roche Furniture, variable manufacturing overhead costs are expected to be €20,000 in the first quarter of 2020, with €5,000 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be €40,000 in each quarter. Prepare the manufacturing overhead budget by quarters and in total for the year.
Answer Preview: ROCHE FURNITURE Manufacturing Overhead Budget For the Year Ending …

, Chapter: 10 -Problem: 2 >> PepsiCo, lnc.'s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are available at each company's respective website.  Instructions. a. Compute the asset turnover for each company for 2019. b. What conclusions concerning t
Answer Preview: a. PepsiCo, lnc.'s = $69,213/$6 85B = 11 2. c. PepsiCo, lnc.'s is larger than Coca-Cola's indicat…

, Chapter: 2- The Recording Process -Problem: 7 >> If you haven’t already done so, in the not-too-distant future you will prepare a résumé. In some ways, your résumé is like a company’s annual report. Its purpose is to enable others to evaluate your past, in an effort to predict your future.A résumé is your opportunity to create a positive first impression. It is important that it be impressive—but it should also be accurate. In order to increase
Answer Preview: If the CEO of the company has lied about his degree in the resume he should be fired . Ly…

, Chapter: 9- Accounting for Receivables -Problem: 7 >> On January 1, 2020, Harter Wholesalers had Accounts Receivable €139,000, Notes Receivable €25,000, and Allowance for Doubtful Accounts €13,200. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2019. Harter prepares financial statements annually at December 31. During the year, the following selected transactions occurred.Jan. 5 Sold €20,000 of merchandi
Answer Preview: Jan 5 Accounts Receivable x Sheldon 20000 Sales Revenue 20000 20 Notes Receivable20000 Acco…

, Chapter: 4- Completing the Accounting Cycle -Problem: 3 >> Worksheet data for Auburn Company are presented in E4.2.The owner did not make any additional investments in the business in April. Instructions Prepare an income statement, an owner€™s equity statement, and a classifi ed balance sheet. E4.2The adjusted trial balance columns of the worksheet for Auburn Company are as follows.
Answer Preview: AUBURN COMPANY Income Statement For the Month Ended April 30 2020 Revenues Service revenue 15590 Exp…

, Chapter: 18- Financial Analysis: The Big Picture -Problem: 7 >> Horizontal analysis (trend analysis) percentages for Kemplar Company’s sales revenue, cost of goods sold, and expenses are shown below.Did Kemplar’s net income increase, decrease, or remain unchanged over the 3-year period? Transcribed Image Text: Horizontal Analysis 2019 2020 2018 Sales revenue Cos
Answer Preview: Comparing the percentages presented results in the following conclusions The n…

, Chapter: 4 -Problem: 5 >> Anya Clark opened Anya's Cleaning Service on July 1, 2022. During July, the following transactions were completed.July 1  Anya invested $20,000 cash in the business. 1       Purchased used truck for $12,000, paying $4,000 cash and the balance on account. 3       Purchased cleaning supplies for $2,100 on account. 5       Paid $1,800 cash on a 1-year insurance policy effective July 1. 12     Billed
Answer Preview: a. July 1 Dr. Cash 101 20,000 Cr. Owner's Capital 301 20,000 July 1 Dr. Equipment 157 12,000 Cr. Accounts Payable 201 8,000 Cr. Cash 1014,000 July 3 Dr. Supplies 126 2,100 Cr. Accounts Payable 2012,10…

, Chapter: 13- Corporations: Organization and Share Capital Trans -Problem: 12 >> For what reasons might a company like Wesfarmers (AUS) repurchase some of its shares (treasury shares)?
Answer Preview: A corporation may acquire treasury shares 1 to reissue the shares to officers and employees …

, Chapter: 12- Accounting for Partnerships -Problem: 6 >> For National Co., beginning capital balances on January 1, 2020, are Nancy Payne $20,000 and Ann Dody $18,000. During the year, drawings were Payne $8,000 and Dody $5,000. Net income was $40,000, and the partners share income equally. Instructions a. Prepare the partners’ capital statement for the year. b. Prepare the owners’ equity section of the balance sheet at December 31, 2020.
Answer Preview: a NATIONAL CO Partners Capital Statement For the Year Ended December 31 20…

, Chapter: 21- Process Costing -Problem: 4 >> Rivera SpA has several processing departments. Costs charged to the Assembly Department for November 2020 totaled €2,280,000 as follows. Production records show that 35,000 units were in beginning work in process 30% complete as to conversion costs, 660,000 units were started into production, and 25,000 units were in ending work in process 40% complete as to conversion costs. Materials are entered
Answer Preview: a Equivalent Units Physical Units Materials Conversion Costs Units to be accounted for Work in proce…

, Chapter: 24- Budgetary Planning -Problem: 4 >> Liau Automotive produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows.Quarter...........................HD-2401.......................................5,000 2.......................................7,000 3.......................................8,000 4.......................................10,000 The January 1, 2020, inventory of HD-240 is 2,000 units.
Answer Preview: LIAU AUTOMOTIVE Production Budget For the Year Ending December 31 2020 Product HD240 Quarter 1 2 …

, Chapter: 8 -Problem: 1 >> Non-U.S companies that follow IFRS:a. Do not normally use the principles of internal control activities described in this text. b. Often offset cash with accounts payable on the balance sheet. c. Are not required to follow SOX. d. None of the answer choices is correct.
Answer Preview: D There is no one-size-fits-all answer to this questio…

, Chapter: 8 -Problem: 19 >> The accounts receivable turnover is 8.14, and average net accounts receivable during the period is $400,000. What is the amount of net credit sales for the period?
Answer Preview: The receivables turnover ratio indicates the n…

, Durham Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each division has three production departments: Cutting, Shaping, and Finishing. The responsibility for each department rests with a manager who reports to the division production manager. Each division manager reports to the vice president of production. There are also vice presidents for ma
Answer Preview: a) (1) Manufacturing Overhead - Cutting Department Manager - Seattle Division Actual Budget Variance …

, Chapter: 9- Accounting for Receivables -Problem: 7 >> Borke Ltd. has a credit balance of NT$300,000 in Allowance for Doubtful Accounts before adjustment. The total estimated uncollectibles under the percentage-of-receivables basis is NT$580,000. Prepare the adjusting entry to record bad debt expense.
Answer Preview: The adjusting entry is Bad …

, Chapter: 3- Adjusting the Accounts -Problem: 3 >> Amazon.com, Inc.’s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. The complete annual reports of Amazon and Wal-Mart, including the notes to the financial statements, are available at each company’s respective website. Instructions Based on information contained in these financial statements, determine the following
Answer Preview: 1 Amounts in millions Amazon WalMart a Increase decrease in interest e…

, Chapter: 18- Financial Analysis: The Big Picture -Problem: 21 >> You are considering investing in Cherokee Transportation. The company reports 2020 earnings per share of €6.50 on income from continuing operations and €4.75 on net income. Which EPS figure would you consider more relevant to your investment decision? Why?
Answer Preview: EPS on income from continuing operations usually is more relevant to an investment d…

, Chapter: 5 -Problem: 8 >> Nelson Company provides the following information for the month ended October 31, 2022: sales on credit $280,000, cash sales $95,000, sales discounts $5,000, and sales returns and allowances $11,000. Prepare the sales section of a multiple-step income statement based on this information.
Answer Preview: Total Sales = Credit Sales + Cash Sales = $280,000 + $1…

, Chapter: 16- Investments -Problem: 17 >> What is the year-end accounting treatment of the account Unrealized Gain or Loss—Equity?
Answer Preview: Unrealized Loss x Equity is closed out to the accoun…

, Chapter: 15- Long-Term Liabilities -Problem: 13 >> Golden Inc. issues $4 million, 5-year, 10% bonds at 102, with interest payable annually on January 1. The straight-line method is used to amortize bond premium. a. Prepare the journal entry to record the sale of these bonds on January 1, 2020. b. Prepare the adjusting journal entry to record interest expense and bond premium amortization on December 31, 2020.
Answer Preview: a Jan 1 Cash 102 X 4000000 4080000 Bonds Payable 4000000 Premium …

, Chapter: 22- Cost-Volume-Profit -Problem: 10 >> For Flynn Manufacturing, variable costs are 70% of sales, and fixed costs are €195,000. Management’s net income goal is €75,000. Compute the required sales needed to achieve management’s target net income of €75,000. (Use the contribution margin approach.) Contribution Margin Contribution margin is an important element of cost volume profit analysis that managers carry out
Answer Preview: If variable costs are 70 …

, Chapter: 23- Incremental Analysis -Problem: 4 >> Hao Yang is a production manager at a metal fabricating plant. Last night, he read an article about a new piece of equipment that would dramatically reduce his division’s costs. Hao was very excited about the prospect, and the first thing he did this morning was to bring the article to his supervisor, Jun Lai, the plant manager. The following conversation occurred:Hao: Jun, I thought you would lik
Answer Preview: To Jun Lai x Plant Manager From Hao Yang x Production Manager I have spent considerable time thinkin…

, Chapter: 9 -Problem: 4 >> In 2022, Wainwright Company has net credit sales of $1,300,000 for the year. It had a beginning accounts receivable (net) balance of $101,000 and an ending accounts receivable (net) balance of $107,000. Compute Wainwright Company's (a) Accounts receivable turnover and (b) Average collection period in days.
Answer Preview: 1) answer: 12 5 times accounts receivable turnover=net c…

, Chapter: 5- Accounting for Merchandise Operations -Problem: 3 >> No financial decision-maker should ever rely solely on the financial information reported in the annual report to make decisions. It is important to keep abreast of financial news. This activity demonstrates how to search for financial news on the Internet. InstructionsSearch the Internet for a financial-news article about Nestlé (CHE) or Delfi Limited (SGP) that sounds interesting to you and then
Answer Preview: The article that I found was from Reuters and was titled "Nestl to Buy Delfi Limited in Singapore's …

, Chapter: 8- Fraud, Internal Control, and Cash -Problem: 1 >> Li Tung is the owner of Zhao Pizza. Zhao is operated strictly on a carryout basis. Customers pick up their orders at a counter where a clerk exchanges the pizza for cash. While at the counter, the customer can see other employees making the pizzas and the large ovens in which the pizzas are baked. Instructions Identify the six principles of internal control and give an example of each principle th
Answer Preview: 1 Establishment of responsibility The counter clerk is responsibl…

, Chapter: 17- Statement of Cash Flows -Problem: 3 >> The income statement of Toby Zed NV is presented here.Additional information: 1. Accounts receivable increased €200,000 during the year, and inventory decreased €500,000. 2. Prepaid expenses increased €175,000 during the year. 3. Accounts payable to suppliers of merchandise decreased €340,000 during the year. 4. Accrued expenses payable decreased €105,000 during the year. 5. Operating expenses i
Answer Preview: TOBY ZED NV Partial Statement of Cash Flows For the Year Ended November 30 …

, Chapter: 4 -Problem: 10 >> When Ramirez Company purchased supplies worth $5,000, it incorrectly recorded a credit to Supplies for $5,000 and a debit to Cash for $5,000. Before correcting this error: a. Cash is overstated and Supplies is overstated. b. Cash is understated and Supplies is understated. c. Cash is understated and Supplies is overstated. d. Cash is overstated and Supplies is understated.
Answer Preview: The answer is (A). To correct the error, record a credit in …

, Chapter: 14- Corporations: Dividends, Retained Earnings, and In -Problem: 1 >> Herr Fashions has 2,000 shares of 7%, €100 par value preference shares outstanding at December 31, 2020. At December 31, 2020, the company declared a €110,000 cash dividend.Determine the dividend paid to preference shareholders and ordinary shareholders under each of the following scenarios. 1. The preference shares are non-cumulative, and the company has not missed any dividends in previous year
Answer Preview: 1 The company has not missed past dividends and the preference shares are noncumul…

, Chapter: 10- Plant Assets, Natural Resources, and Intangible As -Problem: 6 >> Rottino Company purchased a new machine on October 1, 2020, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. a. Straight-line for 2020. b. Units-of-activity for 2020,
Answer Preview: a Straightline method 2020 depreciation 27600 X 312 6900 2020 15000…

, Chapter: 26- Standard Costs and Balanced Scorecard -Problem: 10 >> Some overhead data for Woo Industries are given in BE26.6. In addition, the fl exible manufacturing overhead budget shows that budgeted costs are NT$120 variable per direct labor hour and NT$1,500,000 fixed. Compute the overhead controllable variance. Data from BE26.6:In October, Woo Industries reports 21,000 actual direct labor hours, and it incurs NT$3,540,000 of manufacturing overhead costs. St
Answer Preview: The formula is Actual Overhea…

, Chapter: 22- Cost-Volume-Profit -Problem: 11 >> Marshall plc’s GWhiz calculator sells for £40. Variable costs per unit are estimated to be £26. What are the unit contribution margin and the contribution margin ratio? Contribution Margin Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. C
Answer Preview: Contribution ma…

, Chapter: 24- Budgetary Planning -Problem: 17 >> Nagaland plc’s budgeted sales and direct materials purchases are as follows. Nagaland’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nagaland’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in
Answer Preview: a NAGALAND PLC Expected Collections from Customers March Marc…

, Chapter: 9 -Problem: 14 >> Vandiver Company had the following selected transactions.Apr. l, 2022    Accepted Goodwin Company's 12-month, 6% note in settlement of a $30,000 account receivable. July 1, 2022    Loaned $25,000 cash to Thomas Slocombe on a 9-month, 10% note. Dec. 31, 2022   Accrued interest on all notes receivable. Apr. 1, 2023     Received principal plus interest on the Goodwin note. Apr. 1, 2023     Thomas Slo
Answer Preview: The journal entries to record the above transactions is as follows: i) Cash 25,000 Notes …

, Chapter: 25- Standard Costs and Balanced Scorecard -Problem: 16 >> Fisk Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances. In addition, 8,000 units of product were sold at $8 per unit. Each unit sold had a standard cost of $5. Selling and administrative expenses were $8,000 for the month. InstructionsPrepare an income statement for management for the month ended January 31, 2017.
Answer Preview: Fisk Company uses a standard cost accounting system. During January, the company reported the foll…

, Chapter: 7- Accounting Information Systems -Problem: 6 >> Seo-hyeon’s Auto Supply uses special journals and a general journal. The following transactions occurred during September 2020 (amounts in thousands).Sept. 2 Sold merchandise on account to A. Jinwoo, invoice no. 101, NT$620, terms n/30. The cost of the merchandise sold was NT$420.10 Purchased merchandise on account from Jeju Company NT$650, terms 2/10, n/30. 12 Purchased office equipment on accoun
Answer Preview: a b SEOHYEONS AUTO SUPPLY COMPANY Sales Journal S1 Date …

, Chapter: 18- Financial Analysis: The Big Picture -Problem: 22 >> MRT Ltd. reported 2019 earnings per share of £3.20 and had no discontinued operations. In 2020, EPS on income from continuing operations was £2.99, and EPS on net income was £3.49. Is this a favorable trend?
Answer Preview: When comparing EPS trends discontinued operatio…

, Chapter: 4 -Problem: 17 >> These financial statement items are for Basten Company atyear-end, July 31, 2022. a. Prepare an income statement and an owner's equity statement for the year. The owner did not make any new investments during the year. b. Prepare a classified balance sheet at July 31. Transcribed Image Text: Salarie
Answer Preview: Solution a) Basten Company income statement for the year ended July 31, 2022 Revenue from operations …

, Chapter: 14- Corporations: Dividends, Retained Earnings, and In -Problem: 4 >> The equity section of Pretzer plc consists of ordinary shares (£10 par) £2,000,000 and retained earnings £500,000. A 15% share dividend (30,000 shares) is declared when the market price per share is £16. Show the before-and-after effects of the dividend on the following. a. The components of equity. b. Shares outstanding. c. Par value per share. Dividend A dividend is a d
Answer Preview: a b Outstanding shares 200000 230000 c Par value per shar…

, Chapter: 10- Plant Assets, Natural Resources, and Intangible As -Problem: 10 >> Gunkelson Company sells equipment on September 30, 2020, for $18,000 cash. The equipment originally cost $72,000 and as of January 1, 2020, had accumulated depreciation of $42,000. Depreciation for the first 9 months of 2020 is $5,250. Prepare the journal entries to (a) Update depreciation to September 30, 2020,(b) Record the sale of the equipment.
Answer Preview: a Depreciation Expense 5250 Accumulated Depreciation x Equ…

, Chapter: 25- Budgetary Control and Responsibility Accounting -Problem: 5 >> Moscavide Publishers uses flexible budgets to control its selling expenses. Monthly sales are expected to range from €170,000 to €200,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, traveling 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries €35,000, depreciation on delivery equipment €7,000, and insurance on deliver
Answer Preview: MOSCAVIDE PUBLISHERS Monthly Selling Expense Flexible Budget For th…

, Chapter: 19- Managerial Accounting -Problem: 11 >> Incomplete manufacturing cost data for Zhang Ltd. for 2020 are presented as follows for four different situations. Instructions a. Indicate the missing amount for each letter. b. Prepare a condensed cost of goods manufactured schedule for situation (1) for the year ended December 31, 2020. Transcribed Image Text:
Answer Preview: a a HK1170000 HK1400000 HK870000 HK3440000 b HK3440000 HK330000 HK3600000 HK170000 c HK4500000 …

, Chapter: 22- Cost-Volume-Profit -Problem: 11 >> Hiroki Tsuji provides shuttle service between four hotels near a medical center and an international airport. Hiroki Tsuji uses two 10-passenger vans to off er 12 round trips per day. A recent month’s activity in the form of a cost-volume-profi t income statement is shown below. Instructionsa. Calculate the break-even point in (1) sales and (2) number of fares.b. Without calculations, determine th
Answer Preview: a b At the breakeven point fixed costs and contribution margin …

, Chapter: 9 -Problem: 9 >> The adjusted trial balance of Gibson Company for the year ended December 31, 2022, is as follows.Instructions Prepare a multiple-step income statement, owner's equity statement, and a classified balance sheet. The notes payable is due on January 10, 2023. The notes receivable is due on June 30, 2023. Allowance for Doubtful Accounts applies to Accounts Recievable only.
Answer Preview: Solution Multi Step Income Statement Gibson Company Income Statement for the year ended 31 Dec, 2022 …

, Chapter: 26- Incremental Analysis and Capital Budgeting -Problem: 1 >> Recently, Mike Cichanowski, owner and CEO of Current Designs, received a phone call from the president of a brewing company. He was calling to inquire about the possibility of Current Designs producing “floating coolers” for a promotion his company was planning. These coolers resemble a kayak but are about one-third the size. They are used to fl oat food and beverages while paddling down the river
Answer Preview: ANSWER a) Incremental Analysis: Revenue from Order: $25,000 Direct Materials: $8,000 Incremental La…

, Chapter: 6- Inventories -Problem: 11 >> Terzi Department Store uses the retail inventory method to estimate its monthly ending inventories. The following information is available for two of its departments at August 31, 2020.At December 31, Terzi Department Store takes a physical inventory at retail. The actual retail values of the inventories in each department are Sporting Goods €85,000, and Jewelry and Cosmetics €52,000. Instructions
Answer Preview: a Costtoretail ratio Sporting Goods x 693000 1100000 63 Jewelry …

, Chapter: 15- Non-Current Liabilities -Problem: 10 >> Suppose Lin Ltd.’s 2020 financial statements contain the following selected data (in millions). Instructions Compute the following ratios and provide a brief interpretation of each. a. Debt to assets ratio. b. Times interest earned. Financial Statements Financial statements are the standardized formats to present the financial information related to a business or an organ
Answer Preview: a 1 Debt to assets ratio NT161910 NT302249 54 2 Times interest earned NT4…

, Chapter: 5 -Problem: 5 >> The trial balance of Gaolee Fashion Center contained the following accounts at November 30, the end of the company's fiscal year.Adjustment data: 1. Supplies on hand totaled $2,600. 2. Depreciation is $11,500 on the equipment. 3. Interest of $3,800 is accrued on notes payable at November 30. 4. Inventory actually on hand is $44,400. Instructions a. Enter the trial balance on a worksheet, and compl
Answer Preview: a. The completed worksheet is as follows: Trial Balance Adjustments Adjusted Trial Balance Cash $20,700 $20,700 Accounts Receivable $30,700 $30,700 In…

, Chapter: 14- Corporations: Dividends, Retained Earnings, and In -Problem: 4 >> On January 1, 2020, Vahsholtz Automotive purchased 5,000 treasury shares. Other information regarding Vahsholtz Automotive is provided as follows.Compute (a) Return on ordinary shareholders’ equity for each year and (b) Earnings per share for each year, and (c) Discuss the changes in each. Transcribed Image Text:
Answer Preview: a b c Between 2019 and 2020 return on ordinary shareho…

, Chapter: 27- Planning for Capital Investments -Problem: 6 >> BSU Ltd. wants to purchase a new machine for £29,300, excluding £1,500 of installation costs. The old machin

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