7) The manufacturing overhead control account and the manufacturing overhead allocated account both have zero balances at the end of each year after all adjustments are recorded.   8) Manufacturing Overhead Control and Manufacturing Overhead Allocated in the General Ledger respectively, refer to A) the record of actual overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × actual […]

  42) Cruits, Inc. prepared the following income statement before adjustments:   Cruits, Inc. Income Statement For the Month Ended September 30, 2011 Sales revenue$30,000 Expenses Rent              $5,000 Utilities2,000 Salaries8,000 Depreciation3,000 Total expenses$18,000 Net income (loss)$12,000   Required: Determine the net income or loss after adjustment given the following additional information for the month of September: a. Salaries earned but unrecorded and unpaid equals $1,000. […]

  SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 71) Identify each item on the following list as a joint cost or a separable cost.   a.Cost of processing crude oil in a gasoline refinery. b.Cost of processing timber (trees) at a sawmill. c.Cost of processing lumber into different lengths and sizes at a sawmill. d.Cost of […]

  70.Solid waste landfills are required to estimate the cost of closure which include: A)Cost of equipment used. B)Cost of landfill cover. C)Cost of caring for the site for 30 years. D)all of the above. 71.The estimated costs of closure of solid waste landfills are measured using: A)Estimated future costs. B)Actual closure costs. C)Historical costs. D)Current costs. 72.For landfills accounted for as enterprise funds, a […]

  61.The following income statements are provided for Li Company’s last two years of operation:  Assuming that cost behavior did not change over the two year period, what is the annual amount of the company’s fixed manufacturing overhead?    A. $12,000   B. $24,000   C. $26,000   D. None of these     62.The following income statements are provided for Li Company’s last two years of operation:  Assuming that cost behavior […]

    56.If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the receipt of cash would be journalized as:    A. Debit Sales, credit Unearned Revenue.   B. Debit Unearned Revenue, credit Sales.   C. Debit Cash, credit Unearned Revenue.   D. Debit Unearned Revenue, credit Cash.   E. Debit Cash, credit Revenue.         57.A contingent liability is:    A. Always of a specific amount. […]

138.A business accepts a 9 percent, $25,000 note due in 120 days. Assuming simple interest, how much (amount rounded) will the business receive when the note falls due?   a. $25,000 b. $25,075 c. $27,260 d. $25,740       139.Which of the following statements is true regarding the time value of money?   a. Compound interest will produce equal amounts of interest each period […]

  71) ABC Corporation issued $600,000, 10%, 5-year bonds on January 1, 2012 for $612,000 when the market interest rate was 8%. Interest is paid semiannually on January 1 and July 1. The corporation uses the effective-interest method to amortize bond premium. The amount of bond interest expense recognized on July 1, 2012 is: A) $30,000. B) $24,000. C) $24,480. D) $30,600. 72) Under the […]

145.Which of the following has an effect on total stockholders’ equity?   a. Cash dividend b. Conversion of preferred stock into common stock c. Stock split d. Stock dividend         146.On which of the following dates involving stock dividends does a liability arise?   a. Date of distribution b. On no date c. Date of record d. Date of declaration     […]

    111. Henson Manufacturing Company signed a 3-year contract for the use of certain manufacturing equipment with an estimated life of three years. Henson Manufacturing Company cannot cancel the contract. What entry is made to record the contract? A. Rent Expense                                                 XX     Cash                                                                         XXB. Manufacturing Equipment                               XX     Cash                                                                         XXC. Leased Asset–Manufacturing Equipment          XX     Lease Liability                                                           XXD. Lease Liability                                                XX     Leased Asset–Manufacturing Equipment                     XX E. Rent Expense                                                  XX     Leased Asset–Manufacturing Equipment                     XX […]