31. Newark Company has provided the following information: ? Cash sales, $450,000 ? Credit sales, $1,350,000 ? Selling and administrative expenses, $330,000 ? Sales returns and allowances, $90,000 ? Depreciation expense, $101,000 ? Gross profit, $1,360,000 ? Increase in accounts receivable, $55,000 ? Bad debt expense, $33,000 ? Sales discounts, $43,000 How much are Newark’s net sales?  A. $1,634,000 B. $1,800,000 C. $1,667,000 D. $1,745,000 32. Flyer Company has provided […]

  11) For the past twenty years, Ace Electronics has had a policy of expensing all assets that cost less than $50, even if they are expected to last for more than a year, because it is simpler and easier than depreciating low-cost assets over their useful lives. This year Ace Electronics decided that because of inflation it would begin expensing all assets that cost […]

  111. During March, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of the units transferred, 25,000 were in process at the beginning of March and 110,000 were started and completed in March. March’s beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At […]

    147. Oceanside Company uses the balance sheet approach in estimating uncollectible accounts expense. It has just completed an aging analysis of accounts receivable at December 31, 2009. This analysis disclosed the following information?    What is the appropriate balance for Oceanside’s Allowance for Doubtful Accounts at December 31, 2009  A. $95,000. B. 2% of credit sales in 2009. C. $1,560. D. $2,160.     148. At the start of […]

    31. While preparing the February 28th bank reconciliation for the checking account for Willow, Inc., the accountant identified the following items:  Balance per Willow’s company records $46,200 Outstanding checks 1,100 Interest earned on the checking account 50 A customer’s NSF check returned by the bank 500     In addition, Willow made an error in recording a customer’s check; the amount was recorded in […]

  71. Grayson Bank agrees to lend the Trust Company $100,000 on January 1.  Trust Company signs a $100,000, 8%, 9-month note.  The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is:   A. Interest Expense       8,000 Cash                       92,000      Notes Payable                  100,000 B. Cash                       100,000      Notes Payable                  100,000 C. Cash                       108,000     Interest Expense                    8,000     Notes Payable                    […]

  17) The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes: 1. A check for $200 to pay the electric bill was recorded on the books as $20. 2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30. 3. […]

  Objective 1.3   1) Place the four business functions in the order they appear along the value chain:   Customer service Design Marketing Production   A) Customer Service, Design, Production, Marketing B) Customer Service, Marketing, Production, Design C) Design, Production, Marketing, Customer Service D) Design, Customer Service, Production, Marketing   2) R&D, production, and customer service are business functions that are all included as […]

  31) A company uses a long-run time horizon to price its product, an electronic component used in aircraft. To produce a normal production run for a year of 100,000 units, direct materials are $90,000, direct labour is $180,000, and rent on leased equipment is $106,000 per year. They are considering purchasing the equipment for $1.500,000, as right now, re-work is running at 4% of […]

    74. Falcon Co. produces a single product. Its normal selling price is $30.00 per unit. The variable costs are $19.00 per unit. Fixed costs are $25,000 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,500 units and a special price of $20.00 per […]