getmeaplus

Thursday, 20 September 2012

In accounting for debt investments, entries are made for each of the following

In accounting for debt investments, entries are made for each of the following except the

sale.
acquisition.
amortization of any discount or premium.
interest revenue.

CLICK HERE TO GET THE ANSWER !!!!

Which of the following would be added to net income using the indirect method?

Depreciation expense
A decrease in accounts payable
An increase in prepaid expenses
An increase in accounts receivable

CLICK HERE TO GET THE ANSWER !!!!

Indicate where the event paid income taxes would appear, if at all, on the

Indicate where the event paid income taxes would appear, if at all, on the statement of cash flows.

Operating activities section
Investing activities section
Financing activities section
Does not represent a cash flow

CLICK HERE TO GET THE ANSWER !!!!

West Company had $375,000 of current assets and $150,000 of current

West Company had $375,000 of current assets and $150,000 of current liabilities before borrowing $75,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on the amount of West Company's working capital?

No effect
$75,000 increase
$150,000 increase
$75,000 decrease

CLICK HERE TO GET THE ANSWER !!!!

The following information is available for Compton Company:

	2012	2011
Accounts receivable	$ 360,000	$ 400,000
Inventory	340,000	420,000
Net credit sales	2,470,000	1,400,000
Cost of goods sold	1,860,000	1,060,000
Net income	300,000	170,000

The inventory turnover ratio for 2012 is

5.5 times.
4.4 times.
6.2 times.
4.9 times.

CLICK HERE TO GET THE ANSWER !!!!

Friday, 14 September 2012

You are provided with the following figures for Rollins Corp. for the 2011 year.

Sales 700,000

Direct Labor 92,000

Indirect Material 8,000

Work in Progress 1/1/11 22,000

Rent – Store 15,000

Electricity – Factory 20,000

Purchases, Raw Material 158,000

Sales Salaries 28,000

Finished Goods 1/1/11 35,000

Advertising 19,000

Electricity – Store 7,000

Factory Security 14,000

Depreciation – Machinery 17,000

Work in Progress 12/31/11 15,000

Rent – Factory 36,000

Raw Material 12/31/11 12,000

Indirect Labor 21,000

Finished Goods 12/31/11 23,000

Insurance – Factory 9,000

Raw Material 1/1/11 8,000

Sales Commission 34,000

Depreciation – Store Fixtures 8,000

Required:

1. Complete a Cost of Goods Manufactured Schedule, in proper form.

2. Complete an Income Statement, in proper form.

Your submission MUST be a word document. Points will be deducted for any other form of submission. Your schedule and statement must be in proper form – this means they should look like they would in an annual report – and not in a spread sheet or a work sheet. As mentioned in class live, individual overheads should be listed rather than just a total being given.

CLICK HERE TO GET THE ANSWER !!!!

Sovereign Millwork, Ltd., produces reproductions of antique residential moldings at a plant located in

Problem 3-27 Comprehensive Problem [LO1, LO2, LO4, LO5, LO6, LO7]

Sovereign Millwork, Ltd., produces reproductions of antique residential moldings at a plant located in Manchester, England. Because there are hundreds of products, some of which are made only to order, the company uses a job-order costing system. On July 1, the start of the company’s fiscal year, inventory account balances were as follows:


Raw materials	£	10,000
Work in process	£	4,000
Finished goods	£	8,000

The company applies overhead cost to jobs on the basis of machine-hours. Its predetermined overhead rate for the fiscal year starting July 1 was based on a cost formula that estimated £99,000 of manufacturing overhead for an estimated activity level of 45,000 machine-hours. During the year, the following transactions were completed:

a.	Raw materials purchased on account, £160,000.
b.	Raw materials requisitioned for use in production, £140,000 (materials costing £120,000 were chargeable directly to jobs; the remaining materials were indirect).
c.	Costs for employee services were incurred as follows:


Direct labor	£	90,000
Indirect labor	£	60,000
Sales commissions	£	20,000
Administrative salaries	£	50,000

d.	Prepaid insurance expired during the year, £18,000 (£13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities).
e.	Utility costs incurred in the factory, £10,000.
f.	Advertising costs incurred, £15,000.
g.	Depreciation recorded on equipment, £25,000. (£20,000 of this amount was on equipment used in factory operations; the remaining £5,000 was on equipment used in selling and administrative activities.)
h.	Manufacturing overhead cost was applied to jobs, £?. (The company recorded 50,000 machine-hours of operating time during the year.)
i.	Goods that had cost £310,000 to manufacture according to their job cost sheets were completed.
j.	Sales (all on account) to customers during the year totaled £498,000. These goods had cost £308,000 to manufacture according to their job cost sheets.

1.	Prepare journal entries to record the transactions for the year. (Round your intermediate calculations to 2 decimal places. Omit the "£" sign in your response.)
2.	Prepare t-accounts for inventories, manufacturing overhead, and cost of goods sold. Post relevant data from your journal entries to these t-accounts (don’t forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account. (Record the transactions in the given order. Round your intermediate calculations to 2 decimal places. Omit the "£" sign in your response.)
3-a.	Is manufacturing overhead underapplied or overapplied for the year?
3-b.	Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. (Round your intermediate calculations to 2 decimal places. Omit the "£" sign in your response.)
4.	Prepare an income statement for the year. (Input all amounts as positive values. Round your intermediate calculations to 2 decimal places. Omit the "£" sign in your response.)

CLICK HERE TO GET THE ANSWER !!!!