. Identify the relevant control to address each WCGW. Answers should be in not less than three sentences.
Q: Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value ...
A: computation of inventory using LIFO method are as follows
Q: 2021 2022 Units produced 60,000 50,000 Units sold 54,000 54,000 Selling price per unit Variable cost...
A: In variable costing, only fixed manufacturing and other indirect costs are expensed in the period th...
Q: Speedy Delivery Company provides next-day delivery across the southeastern United States.During May,...
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are inc...
Q: Required: 1. What is the company's contribution margin (CM) ratio?
A: In this question, we have to compute the company's CM ratio
Q: What amount will be paid at the beginning of every month for 10 years if the present value is 200, 0...
A: Payment at the beginning of every month = PV x r / [{1 - (1 + r)^(-n)} x (1 + r)] Here, PV = Present...
Q: Problem 4-4A Preparing closing entries, financial statements, and ratios c3 Q A1G P2 The adjusted tr...
A: The financial statements are prepared at year end including income statement, balance sheet, stateme...
Q: On January 1, 2021, Arneyow Company acquired 10% of the outstanding voting shares of Pee Yu Pi Incor...
A: Calculation of carrying value of investment Carrying Amount Acquisition Price = 900,000 + 2,760,...
Q: For Dingle Corporation, the following amortization table was prepared when $400,000 of 5-year, 7% bo...
A: Solution Journal is the company's primary book in which all business transactions are recorded accor...
Q: What is the present value of $73,000 in 11 years if the interest rate is 8% compounded semiannually?...
A: The question is based on the concept of Financial Management.
Q: Central Avenue Company reported net income of P700,000 for the year 2021. The entity declared and pa...
A: Lets understand the basics. Retained earning is a net income that is retained every year after payin...
Q: Problem 23-17 (IAA) retained earnings on December 31, 2020? During the current year, the following c...
A: Unappropriated Retained Earnings are the portion of the retained earnings which are not kept for any...
Q: On October 1, 2021, Neon Company purchased a P2,000,000 face value 10% debt instrument paying a tota...
A: One of the source used by the business organization in order to raise the capital is Issue of Debt s...
Q: Termination of employment is often a stressful event for an employe True or False True False
A: Termination of employment menas, employee departure from his job and end of employee - employer rela...
Q: When debt investment was sold, total cash received is always equals to the sum of the selling price,...
A: Debt Investment: Assumption that the borrower will repay the investment with interest (debt investme...
Q: Escargot Inc. is a 5-star restaurant in Cincinnati The restaurant sells 500 gift cards during Januar...
A: In this question there are 2 requirements : 1. Prepare journal entries for Escargot's gift card tran...
Q: A business operated at 100% of capacity during its first month and incurred the following costs: Pro...
A: Under variable costing system, the inventory would consist of only variable expenses.
Q: 7. Received Php20,000 for the sale of a lot a. Debit cash, Credit Commission Income b. Debit Cash, ...
A:
Q: Supplies Expense Depreciation Expense Salaries Expense $1,000 600 400 The journal entry to close the...
A: The closing entries are required at year end to close the temporary accounts of the business and tra...
Q: On October 1, 2021, Neon Company purchased a P2,000,000 face value 10% debt instrument paying a tota...
A: A profit and loss statement is a financial statement that shows a company's income and expenses over...
Q: Which of the following transactions would cause the current ratio to increase (assumingthe current r...
A: The current ratio is frequently used to assess a company's capacity to meet current obligations. A c...
Q: Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January....
A: The cost of production report (CPR) is a record used in process costing systems to summarise informa...
Q: Which of the following statements is true regarding CVP analysis? Select one: A. CVP is only useful ...
A: Fixed Cost: The fixed cost is a a type of cost that remains constant whether the activity level of p...
Q: rake Company produces a single product. Last year's income statement is as follows: Sales (21,000 u...
A: In this question, we have to compute breakeven sales in dollars and units and the margin of safety
Q: 6 Landis Co. purchased P500,000 of 8%, 5-year bonds (DI@FVTOCI) from Ritter, Inc. on January 1, 202...
A: Solution:- Given, Landis Co. Purchased = P500,000 of 8%, 5 year bonds. Bonds sold = P520,790 Interes...
Q: Greek Manufacturing Company produces and sells a line of product that are sold usually all year roun...
A: Solution Net income is the income which is calculated after deduction of costs , allowances and taxe...
Q: Comfort Foods Inc. uses activity-based costing to determine product costs. For each activity listed ...
A: Given:
Q: Trotman Company had three intangible assets at the end of 2019 (end of the accounting year): Comp...
A: Given: Purchased computer software and website development technology - $71,000. A patent purchase...
Q: The NASDAQ market functions as which type of market? A. over-the-counter B. auction C. standard D. f...
A: NASDAQ stands for National Association of securities dealer automated Quatation. It is the fully el...
Q: Corporations recognize no gain orloss when it issues stock shares for property even if the sharehold...
A: Section 351 states non recognition or not recording of the gain or loss on the property transfers i...
Q: You decide to borrow money from your parents for down payment without interest. Decide on your down ...
A: Down payment is the payment of money which are required at the time of making any purchases like the...
Q: Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit. The sales...
A: Lets understand the basics. For calculating sales revenue, we will need to use below formula. Sales ...
Q: 16. Revenue cannot be recognized unless delivery of goods has occurred or services have been rendere...
A: Since you have posted multiple questions we will do the first one for you. To get the other questio...
Q: A company purchased a con January 1, 2022, for $ 500,0 expected life of five years am
A: These are the accounting transactions that are having a monetary impact on the financial statement o...
Q: If an employee has the chance of receiving cash in lieu of lodging when traveling for legitamate bus...
A: The employee may exclude the value of the meals and lodging from the gross income for purpose of fed...
Q: On January 1, 2020, High Shots issued $250,000 of 11% ten-year bonds at 104. Issuance costs amounted...
A: Retirement of bonds occurs when the company repurchases its own issued bonds.
Q: Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses the perpetualinvento...
A: To keep track of financial transactions, journal entries are utilized. You enter transaction informa...
Q: amounted to P126,700. The foods and drinks b nightclub are being served by Tiberio, a non-VA uring t...
A: Amusement tax refers to the form of tax levied on any source of commercial entertainment services pr...
Q: Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases t...
A: Solution:- Given, New delivery purchased = $58,000 Sales tax = $4,900 Paid cash on van = $14,000 Due...
Q: Paid for gas and oil used in the service car, Php1,500. a. Debit gas and oil, Credit cash b. Debit ...
A: Solution: As per double entry bookkeeping system every transaction affects atleast two accounts; one...
Q: On April 1, 2017 the Reba Company purchased 10%, $800,000 bonds of the Trading Up Company at par plu...
A: When any bonds are purchased at par plus accrued interest then the total amount paid included the ac...
Q: The NiceWay Corporation's statement of financial position shows the total stockholders' equity of P5...
A: Stockholder's equity: Stockholder's equity refers to the net asset of the company available to the s...
Q: MC Packaging Limited (“MC") makes aluminum cans for the food processing industry. It produces the ca...
A:
Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (21,000 ...
A: Break even point : It refers to that point where total cost is equal to total revenue, i e. It is ...
Q: You have the followinginformation for Oriole inc. Oriole inc.uses the periodic method of accounting ...
A: Income Statement Specific Id. FIFO LIFO a. Sales Revenue (2300x1.05 + 5000x1.25) $8,665 $8,66...
Q: What is the compound amount and compound interest of $36,000 invested at 12% com- poun...
A: Compound interest: this is used in case of lump-sum money accumulates in the future if interest is c...
Q: Retiring allowances are also known as: Multiple Choice O Lieu of notice O Parting gifts Bonuses O Su...
A: Allowances are financial benefits given to employees by their employers in addition to their regular...
Q: On January 2, 2020, Mark Company acquired, as a held-to-maturity investment, bonds with a face value...
A: Lets understand the basics. When bond is purchased at more than the face value of bond then bond is ...
Q: Pine Creek Company completed 200,000 units during the year at a cost of $3,000,000. The beginning fi...
A: FIFO: FIFO stands for First-In, First-Out. In this method inventory purchased first will be sell ou...
Q: Determine the treatment of a loss on rental property under the following facts: Basis $650,000 FMV b...
A: Calculation of loss amount Particulars Amount FMV before the loss 800000 FMV after the loss 2...
Q: 88,000 $9,408,000 Less: Direct fixed costs 1,200,000 960,00
A: Contribution margin ratio The contribution margin ratio is calculated as the percentage differen...
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- Which of the following statements is true regarding assertions in the revenue cycle? a. It is typical that all five assertions for revenue are equally important. b. If a client has an incentive to overstate revenues, the existence assertion would be more relevant than the completeness assertion. c. Audit evidence about the existence of revenues is also the most appropriate evidence about the valuation of receivable. d. The allowance for doubtful account has important implications for the ownership assertion of accounts receivable.Entity-level controls can have a pervasive effect on the entity's ability to meet the control criteria. Which one of the following is not an entity-level control? A. The period-end financial reporting process B. Controls to monitor results of the operations C. Controls to monitor the inventory taking process D. Management's risk assessment processGive an example of an error or fraud that would misstate financial statements to affect the accounts as follows, taking each case independently. (Note: “Overstate” means the account has a higher value than would be appropriate under GAAP and “understate” means it has a lower value.)a. Overstate one asset; understate another asset.b. Overstate an asset; overstate stockholders’ equity.c. Overstate an asset; overstate revenue.d. Overstate an asset; understate an expense.e. Overstate a liability; overstate an expense.f. Understate an asset; overstate an expense.g. Understate a liability; understate an expense.
- Which of the following are principles of internal control? (Check all that apply.) Multiple select question. Increase revenues. Establish responsibilities. Maintain adequate records. Reduce vendor payables. Perform regular and independent reviews. Divide responsibility for related transactions.A client’s purchasing system ends with the recording of a liability and its eventual payment. Which of the following best describes auditors’ primary concern with respect to liabilities resulting from the purchasing system?a. Accounts payable are not materially understated.b. Authority to incur liabilities is restricted to one designated person.c. Acquisition of materials is not made from one vendor or one group of vendors.d. Commitments for all purchases are made only after established competitive bidding procedures are followed.Which of the following are correct regarding why management uses internal controls? (Check all that apply.) Multiple select question. Protect assets. Uphold company policies. Ensure reliable accounting. Reduce vendor payables. Increase revenues. Promote efficient operations.
- Which of the following statements is false regarding planning analytical procedures in the revenue cycle? a. As revenue is typically regarded as a high-risk account, planning analytical procedures related to revenue are not required. b. The first step in planning analytical procedures includes developing an expectation of recorded amounts or ratios, and evaluating whether that expectation is precise enough to accomplish the relevant objective. c. Trend analysis would not be appropriate as a plan-fling analytical procedure in the revenue cycle. d. All of the above statements are false.Which of the following statements is incorrect? The practice of management accounting is fairly flexible. The information gathered from management accounting is not required by law. Management accounting focuses mainly on the internal user. Reports produced using management accounting must follow GAAP.The following questions deal with assessing controlrisk in a financial statement audit. Choose the best response.a. When obtaining an understanding of an entity’s internal control procedures, anauditor should concentrate on the substance of procedures rather than their formbecause:(1) the procedures may be operating effectively but may not be documented.(2) management may establish appropriate procedures but not enforce compliancewith them.(3) the procedures may be so inappropriate that no reliance is contemplated by theauditor.(4) management may implement procedures whose costs exceeds their benefits
- What is the most important quality for accounting information as identified in the conceptual framework? Explain why it is the most important. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Assertions with high inherent risk are least likely to involve a. complex calculations b. difficult accounting issues c,. routine transactions d. sigifican judgement by managementWhich of the following arguments supports the view that regulation is not necessary, particularly to the extent that it currently exists? Select one: a. Markets for information are not efficient and therefore produce a sub-optimum amount of information, given the problem of 'free riders'. b. Accounting information is like any other good, and people will be prepared to pay for it to the extent that it has a use. c. Investors need protection from fraudulent organisations that may produce misleading information. d. Information asymmetry exists because not everyone has the same power over resources to obtain the information they need.