Accounting question and answers for August 28, 2023
- Q Discounted Cash Flow ValuationPresented below are data for Rom Com Truck:Forecast Year12345TerminalNo. of outstanding shares500500500500500500Terminal year growth rate4%Cost of common equity10%10%10%10%10%10%Net income$79$94$111$130$150$157Beginning of year common equity$649$683$720$758$797$839Free cash flow to common...
- Q Why did the banks that lent Starbucks more than $2billion require such a low return on their investment relative toStarbucks’ common shareholders who expect a 7.2%return?
- Q Mayfair Co. allows select customers to make purchases on credit.Its other customers can use either of two credit cards: Zisa orAccess. Zisa deducts a 3% service charge for sales on...
- Q Home Hardware reported beginning inventory of 20 shovels, for atotal cost of $100. The company had the following transactionsduring the month: Jan. 2 Sold 4 shovels on account at a...
- Q Walsh Company manufactures and sells one product. The followinginformation pertains to each of the company’s first two years ofoperations:Variable costs per unit:Manufacturing:Direct materials$24Direct labor$12Variable manufacturing overhead$3Variable selling and administrative$2Fixed costs...
- Q Question:Part 1. Gary and Joy developed a neat Bento boxfor children. The shape of the containers encourages healthy eatingand it is very popular. They have been paying another company tomanufacture...
- Q Selk Steel Co., whichbegan operations on January 4, 2017, had the following subsequenttransactions and events in its long-term investments. 2017Jan.5Selk purchased60,000 shares (20% of total) of Kildaire's common stock for$1,560,000.Oct.23Kildaire declaredand...
- Q Worley Company buys surgical supplies from a variety ofmanufacturers and then resells and delivers these supplies tohundreds of hospitals. Worley sets its prices for all hospitals bymarking up its cost...
- Q Required informationProblem 8-5 (Algo) Various inventory costing methods [LO8-1,8-4]Skip to question[The following information applies to the questionsdisplayed below.]Ferris Company began January with 7,000 units of its principalproduct. The cost of...
- Q Chavez Company most recently reconciled its bank statement andbook balances of cash on August 31 and it reported two checksoutstanding, No. 5888 for $1,037 and No. 5893 for $508. Thefollowing...
- Q In 2016, Pronghorn Enterprises issued, at par, 60 $1,000, 8%bonds, each convertible into 100 shares of common stock. Pronghornhad revenues of $18,200 and expenses other than interest and taxesof $8,400...
- Q Santana Rey created Business Solutions on October 1, 2019. Thecompany has been successful, and its list of customers has grown.To accommodate the growth, the accounting system is modified to setup...
- Q Prepare a memo for the management of Tesla Motors:Which considers the limitations in the use of a traditionalbudgetary control system in their modern workplace
- Q PERCENTAGE OF COMPLETION METHOD AttiK Construction Companycurrently has a long-term construction project. The project has acontract price of $130,000,000 with total estimated costs of$100,000,000. AttiK appropriately uses the percentage of...
- Q The journal of accountancy is written created but whichorganization? a. FASB b. IASB c.AICPA d. SEC
- Q Your textbook outlines several techniques to gain your reader'sattention in the opening of a persuasive message. List two of thesetechniques and write an original example of each.
- Q Discuss the importance of companies having proper internalcontrols. Give an example from your experience in which anorganization had good or weak controls in place and state why theywere good or...
- Q Prepare general journal entries without explanations to recordthe following transactions:Jan 1 Sold merchandiseto Kelly Graham for $1,000 on account. The merchandise cost $600and the company uses a perpetual inventory system...
- Q The following selected transactions were taken from the books ofRipley Company for 2018:1. On February 1, 2018, borrowed $70,000 cash from thelocal bank. The note had a 6 percent interest...
- Q 3-3Wells Technical Institute (WTI), a school owned by TristanaWells, provides training to individuals who pay tuition directly tothe school. WTI also offers training to groups in off-sitelocations. Its unadjusted trial...
- Q A company borrowed $40,000 on June 30, 2016 from a bank. Thebank is charging an interest rate of 10% annually. Interest iscompounded quarterly. If the loan is due on September...
- Q In 2018, the Westgate Construction Company entered into acontract to construct a road for Santa Clara County for$10,000,000. The road was completed in 2020. Information related tothe contract is as...
- Q Alta Company is constructing a production complex that qualifiesfor interest capitalization. The following information isavailable:Capitalization period: January 1, 2019, to June 30, 2020Expenditures on project:2019:January 1$ 516,000May 1549,000October 1492,0002020:March 11,512,000June...
- Q On June 30, 2018, Singleton Computers issued 6% stated ratebonds with a face amount of $200 million. The bonds mature on June30, 2033 (15 years). The market rate of interest...
- Q LEASE VERSUS BUY Morris-Meyer Mining Company must install $1.5million of new machinery in its Nevada mine. It can obtain a bankloan for 100% of the required amount. Alternatively, a Nevadainvestment...
- Q Insurance expense$10,000Salesreturns and allowances22,400Bad debtexpense6,000Accountspayable81,000Accountsreceivable108,590Allowance for doubtful accounts8,500Accumulated depreciation – equipment27,740Depreciation expense1,200Interestrevenue2,100Cash80,970Commonstock (10,000 shares outstanding)100,000Cost ofgoods sold598,550Dividends declared18,000Equipment139,450Generalexpenses114,250Dividends payable2,000Salesdiscounts23,000Interestexpense5,600Paid-incapital in excess of par110,000Marketable Securities12,000Merchandise inventory154,250Prepaidinsurance11,225Salariesexpense42,100Retained earnings?DividendRevenue10,000SalariesPayable12,350Sales983,900Sellingexpenses139,210The selling expenses and general...
- Q Three (3) personal trainers at an upscale health spa/resort inSedona, Arizona, want to start a health club that specializes inhealth plans for people in the 50+ age range. The trainers...
- Q Financial Statements and Closing EntriesThe Gorman Group is a financial planning services firm owned andoperated by Nicole Gorman. As of October 31, 2018, the end of thefiscal year, the accountant...
- Q BluStar Company has two service departments, Administration andAccounting, and two operating departments, Domestic andInternational. Administration costs are allocated on the basis ofemployees, and Accounting costs are allocated on the basis...
- Q 4-5 The following unadjusted trial balance is prepared at fiscalyear-end for Nelson Company. NELSON COMPANY Unadjusted TrialBalance January 31, 2017 Debit Credit Cash $ 31,200 Merchandiseinventory 14,500 Store supplies 5,200...
- Q Cost Flow RelationshipsThe following information is available for the first year ofoperations of Creston Inc., a manufacturer of fabricatingequipment:Sales$909,300Gross profit245,500Indirect labor81,800Indirect materials33,600Other factory overhead15,500Materials purchased463,700Total manufacturing costs for the period1,003,900Materials...
- Q Three years ago, Karen Suez and her brother-in-law Reece Jonesopened Gigasales Department Store. For the first 2 years, businesswas good, but the following condensed income statement results for2017 were disappointing.GIGASALES...
- Q A financial manager is evaluating a merger target and wishes toestimate cost and revenue synergies for years 1 and 2 (i.e., thefirst couple of years, post-merger). The target currently hasrevenues...
- Q Aztec Company sells its product for $160 per unit. Its actualand budgeted sales follow.UnitsDollarsApril (actual)4,000$640,000May (actual)2,000320,000June (budgeted)4,500720,000July (budgeted)3,500719,000August (budgeted)4,100656,000All sales are on credit. Recent experience shows that 26% of creditsales...
- Q A Vehicle Corporation is considering replacing atechnologically obsolete machine with a new state-of-the-artrobotic machine. They have compiled the following data for the newmachine:Cost of new machineneeded $150,000Annual net cashinflows $40,000Salvage value of...
- Q On December 31, 2019, the Income Statement section of theworksheet is shown below. The balance of Ally Logan’s drawingaccount is $32,000.INCOME STATEMENT COLUMNSACCOUNT NAMEDEBITCREDITIncome Summary$63,000$69,000Sales250,000Sales Returns and Allowances6,100Interest Income760Purchases87,000Freight In3,900Purchases...
- Q Suppose that the 2017 actual and 2018 projected financialstatements for Cramner Corp. are initially as shown in thefollowing tables. In these tables, sales are projected to rise 35percent in the...
- Q Dividends Per Share Imaging Inc., a developer of radiologyequipment, has stock outstanding as follows: 15,000 shares ofcumulative preferred 1% stock, $120 par, and 50,000 shares of $15par common. During its...
- Q Honey Ltd, a New Zealand company, has sold US$150,000 ofproducts to the US, to receive cash exactly one month later. At thetime of sale, the spot rate of exchange is...
- Q Since the SUTA rates changes are made at the end of eachyear and there is much discussion about changes to the FUTA rate,the available 2018 rates were used for FUTA...
- Q In vitro fertilization (IVF) has become commonplace andfertility clinics in the US can nearly guarantee the child'sgender. Gender selection is forbidden in many countries becausepoliticians assume it will be used...
- Q Trina’s Trinkets Inc. (Trina’s) is a corporation incorporatedand headquartered in Orem, Utah. Trina’s sells more than 3,600different types of small trinkets and gifts, primarily to the endconsumer, but also to...
- Q Derek and Meagan Jacoby recently graduated from State Universityand Derek accepted a job in business consulting while Meaganaccepted a job in computer programming. Meagan inherited $36,000from her grandfather who recently...
- Q Vertical Analysis of Income StatementRevenue and expense data for Innovation Quarter Inc. for tworecent years are as follows: CurrentYear PreviousYearSales$500,000$440,000Cost of goods sold340,000277,200Selling expenses65,00066,000Administrative expenses70,00057,200Income tax expense10,00017,600a. Prepare an income statement in...
- Q Tamarisk Inc., a manufacturer of steel school lockers, plans topurchase a new punch press for use in its manufacturing process.After contacting the appropriate vendors, the purchasing departmentreceived differing terms and...
- Q 1) What is a quantity standard? What is a pricestandard?2) Why are separate price and quantity variancescomputed?3) Who is generally responsible for the materials pricevariance? The materials quantity variance? The...
- Q Explain the compliance aspects of consolidated returns.
- Q Thermal Rising, Inc., makes paragliders for sale throughspecialty sporting goods stores. The company has a standardparaglider model, but also makes custom-designed paragliders.Management has designed an activity-based costing system with thefollowing...
- Q Cruz Company has gathered the information needed to complete itsForm 941 for the quarter ended September 30, 2019.Using the information presented below, complete Part 1 of Form941, rounding to the...
- Q Cruz Company has gathered the information needed to complete itsForm 941 for the quarter ended September 30, 2019. They are amonthly depositor with the following monthly tax liabilities forthis quarter:July$7,193.10August7,000.95September7,577.78State...
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