44) On January 1, 2011, the company borrowed $200,000 from Suwannee Local Bank for 10 years at 6%. The company will make equal annual payments of $27,173.58 on December 31 of each year, beginning December 31, 2011. Part A: Complete the amortization schedule for the first four loan payments:     Mortgage balance   Annual payment Interest portion of mortgage Amount of mortgage reduction […]

  131.A voucher system is a set of procedures and approvals:    A.Designed to eliminate the need for subsidiary ledgers. B.Designed to determine if the company is operating profitably. C.Used almost exclusively by small companies. D.Used to ensure that the company sells on credit only to creditworthy customers. E.Designed to control cash disbursements and the acceptance of obligations. 132.The gross method of recording purchases refers to […]

    81._____ are people who are prompted to apply for a job by someone within the organization.    A. Direct applicants   B. Internal employees   C. Boomerang employees   D. Referrals   E. Virtual employees     82.Jack is a maintenance supervisor at a large petroleum refinery in Texas. His friend, Ronald, who works at another refinery in Louisiana, informs Jack about a vacancy for a maintenance manager’s position […]

  106.Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1’s contribution to overhead as a percent of sales is:  Dept.SalesCost ofGoods SoldDirectExpensesIndirectExpenses 1$1,000,000$700,000$100,000$80,000 2400,000150,00040,000100,000 3700,000300,000150,00020,000 A. $210,000. B. $350,000. C. $10,000. D. $260,000. E. $150,000. 107.Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 2’s contribution to […]

  23) What is the full cost of the product per unit for Gracius Manufacturing? A) $40 B) $70 C) $190 D) $209   24) Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company’s normal operations per month:   Output units20,000tables Machine-hours8,000hours […]

  61) What are Bleach’s and Bleach-2’s residual incomes, based on current values, respectively? 61) ______ A) $115,340; $80,000 B) $37,500; $116,250 C) $110,000; $67,500 D) $67,500; $110,000 E) $116,250; $37,500 62) If the exchange rate at the end of the a foreign subsidiary’s first year was 5 fidgets to 1 Canadian dollar, and if it was 8 fidgets to 1 Canadian dollar at the […]

  101.A new manufacturing machine is expected to cost $278,000, have an eight-year life, and a $30,000 salvage value. The machine will yield an annual incremental after-tax income of $35,000 after deducting the straight-line depreciation. Compute the payback period for the purchase.     A. 8.7 years. B. 3.8 years. C. 4.2 years. D. 7.3 years. E. 5.4 years. 102.A new manufacturing machine is expected to cost $278,000, have an eight-year […]

  117.A company issued 60 shares of $100 par value common stock for $7,000 cash. The total amount of paid-in capital in excess of par is:     A.$100. B.$600. C.$1,000. D.$6,000. E.$7,000. 118.A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market value of $70,000. The entry to record this exchange is:    A.Debit Land $70,000; credit […]

    131. The direct labor and overhead costs of providing services to clients are accumulated in: A. finished services expenseB. work in processC. administrative salaries expenseD. overhead   132. When a job is completed in a service organization, the job costs are transferred to the A. work in process account.B. cost of services account.C. finished goods account.D. cost of goods sold account.   133. The following budget data are available for Happy Company:  Estimated direct labor hours […]

  81) A local accounting firm has offered to do all the billings and collections of a general practitioner. The annual fee will be $12,000. The service will replace the part-time bookkeeper who works for $12 an hour, 10 hours a week. Because these activities will take place away from the office, the doctor estimates that she will have one additional hour a week to […]