81. Dividends  A. are a period cost B. are a distribution of assets to owners C. enter into the calculation of net income D. appear on both the balance sheet and income statement E. none of the above   82. At the end of the third year of operation, GreenWash Corporation has total assets equal to $100,000, liabilities totaling $90,000, and contributed capital of $30,000. What is the balance in […]

    50.The Completion Department transferred 8,000 units to the finished goods storeroom during a month. There was no beginning work in process inventory, but 1,000 units were still in process at the end of the month, and were 40% complete. Inventory costs at the end of the month were $3.50. What were total production costs for the month?    A. $28,000.   B. $29,400.   C. $30,100.   […]

    41. International Corporation leased a building from Domestic Company. The 10-year lease is recorded as a capital lease. The annual payments are $10,000 and the recorded cost of the asset is $67,100. The straight-line method is used to calculate depreciation. Which of the following statements is true? A. Depreciation expense of $6,710 will be recorded each year by International Corporation.B. Depreciation expense of $10,000 will be recorded […]

  145.Using the information below, calculate net income for the period.  Sales revenues for the period$1,304,000 Operating expenses for the period$239,000 Finished Goods Inventory, January 136,000 Finished Goods Inventory, December 3141,000 Cost of goods manufactured for the period$540,000 A.$774,000. B.$769,000. C.$530,000. D.$535,000. E.$448,000. 146.An internal control system consists of the policies and procedures managers use to do all of the following except:     A.Urge adherence […]

  31) Allan Corporation issued 300, 8%, 10-year, $1,000 bonds on July 1. The annual bond interest date is June 30, and the bonds were issued at face value. The amount of interest expense reported for the current year is: A) $0. B) $24,000. C) $12,000. D) None of the above are correct.   32) On October 1, Allan Company issued 8%, 10-year, $300,000 bonds […]

  Answer the following questions using the information below:   For 2010, Jake’s Dog Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information:   EstimatedActual Manufacturing overhead costs              $200,000              $240,000 Machine-hours              40,000              50,000       18) Using job costing, the 2010 actual indirect-cost rate is: A) $4.00 per machine-hour B) $4.80 per machine-hour C) $5.00 per […]

    51.Which of the following does not decrease the cash flow from operating activities?    A. The prepayment of an expense.   B. The purchase of operating equipment.   C. The payment of interest.   D. The prepayment of an expense, the purchase of operating equipment, and the payment of interest all decrease cash from operating activities.         52.Which of the following is not classified among […]

    43. A firm that sells a single product had a beginning inventory of 4,000 units with a total cost of $16,000. Early in the year, 8,000 units were purchased at $6 each. Using LIFO, what is the value of the ending inventory of 2,000 units?  A. $12,000 B. $10,000 C. $8,000 D. $24,000   44. The modifying convention of conservatism requires that inventory be presented on the balance sheet […]

    51. Everett, Inc.Information for Everett, Inc. for 2011 and 2010 is presented below. Everett uses the straight-line depreciation method.    2011 2010 Fixed assets $   250,000 $190,000 Accumulated depreciation 100,000 85,000 Depreciation expense 62,500 47,500 Total revenues 525,000 405,000 Total assets 625,000 475,000       Refer to the information provided for Everett, Inc. Using the data for 2011, determine the average useful life […]

  11) Under the perpetual inventory system, in addition to making the entry to record a return of goods from a customer, a company would: A) debit Merchandise Inventory and credit Cost of Goods Sold. B) debit Cost of Goods Sold and credit Merchandise Inventory. C) debit Sales and credit Cost of Goods Sold. D) debit Purchases and credit Cost of Goods Sold.   12) […]