175.On November 19, 20×7, Lassen Company purchased 30,000 shares of JCN Corporation stock for $480,000, and 10,000 shares of Canoga Corporation stock for $250,000. Lassen’s management intends to hold all 40,000 shares for a short period of time. On December 31, 20×7, the price of JCN’s stock was $13 per share, and the price of the Canoga stock was $30 per share. Finally, on […]

    71. Given the following items and costs as of the balance sheet date, determine the value of Light Company’s merchandise inventory. – $2,000 goods sold by Light to another company. The goods are in transit and shipping terms are FOB shipping point. – $3,000 goods sold by another company to Light. The goods are in transit and shipping terms are FOB shipping point. – […]

  ESSAY. Write your answer in the space provided or on a separate sheet of paper. 86) Golden Company uses one raw material, gold ore, for all its products. It spends considerable time getting the gold from the ore before it starts the actual processing of the finished products, rings, lockets, etc. Traditionally, the company made one product at a time and charged the product […]

    51. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below.    2012 2011 Net accounts receivable $  55,500 $  43,200 Allowance for bad debts 2,220 1,700 Total assets 462,500 720,000 Cash flow from operations 314,500 316,800 Net sales 370,000 360,000 Cost of goods sold 185,000 190,000 Capital expenditures 50,000 25,000       Refer to the selected […]

  Multiple Choice Questions  42.A corporation is owned by    A. the individual who started the company.   B. its board of directors.   C. the president of the corporation.   D. its stockholders.         43.The stockholders of a corporation    A. have no personal liability for the debts of the corporation.   B. are agents of the corporation empowered to act for the firm.   C. cannot sell their share […]

  171. ABC Corporation has three service departments with the following costs and activity base:  Service Department Cost Activity Base for Allocation Graphics Production $200,000 # of copies Accounting $500,000 # of invoices processed Personnel Department $400,000 # of employees       ABC has three operating divisions, Micro, Macro and Super.  Their revenue, cost and activity information are as follows:    Micro Macro Super Direct […]

    44. An asset which costs $18,800 and has accumulated depreciation of $6,000 is sold for $11,600. What amount of gain or loss will be recognized when the asset is sold?  A. A gain of $1,200. B. A loss of $1,200. C. A loss of $7,200. D. A gain of $7,200.     45. The entry to record amortization on a copyright would include:  A. A debit to amortization expense B. A […]

  91. In preparing financial budgets:  A. The budgeted balance sheet is usually prepared last. B. The cash budget is usually not prepared. C. The budgeted income statement is usually not prepared. D. The capital expenditures budget is usually prepared last. E. The merchandise purchases budget is the key budget. 92. A company’s history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit […]

      Objective 13.1   1) ________ describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives. A) Strategy B) Planning C) Learning and growth perspective D) Customer perspective   2) In general, profit potential ________ with greater competition, stronger potential entrants, products that are similar, and more-demanding customers and suppliers. A) increases B) stays […]

  41.Financial instruments that are not listed on the balance sheet of a company a.may involve significant risks that must be disclosed in the notes to the financial statements. b.are reported as assets if the company can determine the fair value. c.must be reported as a liability on the balance sheet at the end of the accounting period. d.must be reported on the income statement. […]