Question 8 of 21 - Practice Chapter 7
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Question 8 of 21 - Practice Chapter 7
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Your Answer
Correct Answer (Used)
Your answer is correct.
Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $1,500 per month, has
just purchased a new Cadillac. You have decided to test the accuracy of the accounts receivable
balance of $86,500 shown in the general ledger.
The following information is available for your ±rst year in business:
1.
Collections from customers are $198,000.
2.
Merchandise purchased totalled $320,000.
3.
Ending merchandise inventory is $99,000.
4.
Goods are marked to sell at 40% above cost.
(a)
Estimate the ending balance of accounts receivable from customers that should appear in the
ledger and any apparent shortages. Assume that all sales are made on account.
Uncollected balance
$ Apparent shortage
$ eTextbook and Media
Solution
111400
24900
3/27/24, 6:57 PM
Question 8 of 21 - Practice Chapter 7
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Presented here are the components in Carla Vista Co's income statement.
Determine the missing amounts.
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$76.020
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Table of Contents > Week 9: Operational and legal Considerations > Lecture Notes > 09 Operational and Legal Considerations
09 Operational and Legal Considerations -
>
Calculating Capacity
• How many machines do you need?
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3,000,000 granola bars (20g each)
• How large is your plant?
per month
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Energy and maintenance: $5 per hour
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Cash
On December 1, 2022, Sheffield Corp. had the following account balances.
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Equipment
Dec. 7
1.
×
2.
12
(a)
17
19
22
26
31
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During December, the company completed the following transactions.
>
Debit
$18,100
2,500
7,800
tv
15,500
1,500
28,100
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Accumulated Depreciation-Equipment
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Your answer is partially correct.
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$3,100
6,000
loc
50,300
Received $3,600 cash from customers in payment of account (no discount allowed).…
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The following is the adjusted trial balance of Sierra Company.
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Blossom Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022.
1.
Purchased a 1-year insurance policy on June 1 for $ 2,196 cash.
2.
Paid $7,930 on August 31 for 5 months' rent in advance.
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3.
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Signed a contract for cleaning services starting December 1 for $ 1,220 per month. Paid for the first 2 months on November
4.
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On December 5, received $ 1,830 in advance from a gaming club. Determined that on December 31,$ 590 of these…
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Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below.
Indicate the missing amount for each letter. Assume that in alltases manufacturing overhead is applied on the basis of direct labor
cost and the rate is the same. (Round overhead rate to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, eg. 5,275.)
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5 years
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$3,100/year for 5 years
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9%
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Calculate the amount recognised as expenses and amount disclosed as equity.
QUESTION 4
At 1.1.2017, KAZA Bhd grants 80,000 share appreciation rights to employee, with service
condition that the employee will still be employed in KAZA for three years. grant date,
KAZA's share price is RM3.00. The rights grants have a life of five years. At 31.12.2019,
employee will be received cash by KAZA based on the value of the rights on that date. At the
end of years 2020 and 2021, KAZA will pay the further cash to the employee if the rights have
appreciated in value. Fair value of the share appreciation rights for the five-years are as
follows:
Year
Share price RM
Dividend yield
%
Value of rights
RM
0
3.00
1
0.81
2017…
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Exercise 2-8 (Algo) Preparing journal entries LO A1
Following are the transactions of Sustain Company.
June 1 T. James, owner, invested $11,50 cash in Sustain Company in exchange for common stock.
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✪
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June 30 The company received $5,500…
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Match the word or phrase with the best description of it.
An expression about whether financial statements conform with generally accepted
(a)
accounting principles.
(b)
Corporation
A business that raises money by issuing shares of stock.
(c)
The portion of stockholders' equity that results from receiving cash from investors.
(d)
Obligations to suppliers of goods.
(e)
Amounts due from customers.
(f)
A party to whom a business owes money.
(g)
A party that invests in common stock.
(h)
Partnership
A business that is owned jointly by two or more individuals but does not issue stock.
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(a1)
$2,120
49,100
21,300
34.490
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62,200
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4,030 D. Pharoah, drawings
Depreciation expense
8,800 D. Pharoah, capital (beginning of the year)
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$1,720
13,000
9,700
6,050
2,980
3,950
Prepare an income statement for the year. (Enter negative amounts using either a negative sign preceding
parentheses e.g. (45).)
49,600
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On June 1, 2017, Nash's Trading Post, LLC was started with an initial investment in the company of $22,200 cash. Here are the assets,
liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of
operations:
Cash
$ 4,700
Notes payable
$12,200
Accounts receivable
4,100
Accounts payable
600
Service revenue
7,600
Supplies expense
1.010
Supplies
2,390
Maintenance and repairs expense
610
Advertising expense
400
Utilities expense
290
Equipment
26.100
Salaries and wages expense
1.500
Common stock
22.200
In June, the company issued…
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Ayayai Mowers Ltd. agreed to sell the City of Halifax four riding mowers and 20 push lawn mowers. The contract price was $72,00O.
Ayayai normally sells its riding mowers for $14,400 and its push lawn mowers for $960. The contract required the City of Halifax to
pay Ayayai once all of the merchandise has been delivered to the city's public works yard. Ayayai's management does not expect any
returns or any issues with payment.
Ayayai delivered all four of the riding mowers and 14 of the push mowers on April 26. The remaining six push mowers were delivered
on May 5. Ayayai received payment from the city on May 18. Ayayai's cost for each riding mower is $9,960, while the push mowers
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Direct labor costs
Machine hours
Setup hours
Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on
direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were
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(a)
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1,500
$50,000 $100,000
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Required information
[The following information applies to the questions displayed below.]
Altira Corporation provides the following information related to its merchandise inventory during the month of August
2021:
Aug.1 Inventory on hand–2,000 units; cost $5.30 each.
8 Purchased 8,000 units for $5.50 each.
14 Sold 6,000 units for $12.00 each.
18 Purchased 6,000 units for $5.60 each.
25 Sold 7,000 units for $11.00 each.
28 Purchased 4,000 units for $5.80 each.
31 Inventory on hand-7,000 units.
Required:
1. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021,
balance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method.
Cost of Goods…
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On January 1, 20x1, Pete Electrical Shop received from Marion Trading 300 pieces
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cost, for a 15% commission on the selling price. After selling 200 pieces, Pete had
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E10.1 (LO 1) (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are
enclosed in parentheses.
a. Money borrowed to pay building contractor (signed a note)
$(275,000)
b. Payment for construction from note proceeds
275,000
c. Cost of land fill and clearing
8,000
d. Delinquent real estate taxes on property assumed by purchaser
7,000
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6,000
f. Refund of 1-month insurance premium because construction completed early
(1,000)
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22,000
h. Cost of real estate purchased as a plant site (land $200,000 and building $50,000)
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TUTORIAL QUESTION 5
QUESTION 1
On 1 January 2016, the management of ZAIDY granted an option for 3,000 shares to an
employee on condition that he stays in the employment of ZAIDY for three years. Also, the
option cannot be exercised till the share price has increased to RM20 per share by the end of
the third year.
The fair value of the option on 1 January 2016 was RM5 each and was estimated to rise to
RM6.50 each by 31 December 2018. The fair value is determined taking into consideration
that the share price will rise to more that RM20 each.
Required:
Calculate the amount recognized in the statement of profit or loss and the amount disclosed
as equity in the statement of financial position.
QUESTION 2
On 1 January 2017, SURDIN granted 100 share…
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Each of the following accounts is closed to Income Summary except
Expenses.
Dividends.
Revenues.
All of these are closed to Income Summary.
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Presented here are the components in Carla Vista Co's income statement.
Determine the missing amounts.
Sales Revenue
Cost of Goods Sold
Gross Profit
Oper
Year
$76,020
$
(b)
$ 32,200
24
1.
Year
$112.800
$70,200
2$
(c)
24
Year
24
(a)
$74,460
3
$115,930
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Chapter 4 Assignment
Maria is a divorce attorney who practices law in San Francisco. She wants to join the American Divorce Lawyers Association (ADLA), a professional
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instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also
has an option for members to buy a lifetime membership today for $4,500 and never have to pay annual membership dues.
Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it
it's
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Module 3 Problem Set
2. EX.05.02
3. EX.05.01
4. BE.06.08
5. EX.05.04
6. BE.06.03.ALGO
7. BE.06.01.ALGO
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Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods
The units of an item available for sale during the year were as follows:
Jan. 1
Inventory
8 units at $40
$320
Aug. 13
Purchase
8 units at $42
336
Nov. 30
Purchase
5 units at $44
220
Available for sale
21 units
$876
There are 8 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory
cost using the (a) first-in, first-out (FIFO) method; (b) last-in,…
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