147.Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. What journal entry would be needed to record the expense for the first year assuming 418,000 tons were mined?    A.Debit Depletion Expense $1,233,100; credit Accumulated Depletion […]

  95.Peters and Chong are partners and share equally in income or loss. Peters’ current capital balance is $140,000 and Chong’s is $130,000. Peters and Chong agree to accept Aaron with a 30% interest in the partnership. Aaron invests $98,000 in the partnership. The amount credited to Aaron’s capital account is:    A.$81,000. B.$102,600. C.$110,400. D.$98,000. E.$114,533. 96.Peters, Chong, and Aaron are dissolving their partnership. Their […]

  Use the information below to answer the following question(s).   Boone Hobbies, a wholesaler, has a sales budget for next month of $600,000. Cost of units sold is expected to be 40 percent of sales. All units are paid for in the month following purchase. The beginning inventory of units is $20,000, and an ending amount of $24,000 is desired. Beginning accounts payable is […]

    52.The Finishing Department of Berle Industries works on only one product, and all costs are incurred uniformly while these units remain in the department. On March 1, 6,000 units were in process that were 45% completed. An additional 60,000 units were transferred into the Finishing Department during March. At March 31, there were 25,000 units in process that were 75% completed. Compute the […]

    100. A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, 8 units were sold for $55 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after […]

    78. The primary difference between a fixed budget and a flexible budget is that a fixed budget A. cannot be changed after the period begins, whereas flexible budget can be changed after the period begins.B. is concerned only with future acquisitions of fixed assets, whereas a flexible budget is concerned with expenses that vary with sales.C. includes only fixed costs, whereas a flexible budget includes only variable costs.D. is […]

  81) Green Paper Company processes wood pulp into two products. During January the joint costs of processing were $144,000. Production and sales value information for the month were as follows:   Sales Value at Product     Kilograms Produced   Split off Point    Separable Costs Paper130,000$80,000$224,000 Cardboard108,000 70,000 264,000   Paper sells for $2.75 a kilogram and cardboard sells for $3.50 a kilogram.   There were no beginning inventories […]

    51. Using the Indirect Method For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method. When using the indirect method, where is the decrease in accounts payable shown on the statement of cash flows?  A. Operating activity B. Investing activity C. Financing activity D. Noncash investing and financing activity […]

  81. Each account in the cost ledger is called a: A. finished goods sheetB. stock recordC. materials requisitionD. job cost sheet 82. Selected accounts with some debits and credits omitted are presented as follows:  Work in Process Aug. 1 Balance 275,000     Aug. 31 Goods finished 1,030,000       31 Direct materials X                 31 Direct labor 450,000                  31 Factory overhead X                   […]

  Multiple Choice Questions   31. Which of the following statements is not correct?  A. The amount of social security tax withheld depends on an employee’s gross earnings, marital status, and number of withholding allowances. B. Federal law requires that social security, Medicare, and federal income taxes be deducted from the gross pay of most employees. C. Medicare taxes are levied in an equal amount on both employers and […]