51.              On January 2, 2010, Pfizer Co. purchased 22% of Wiley Company’s voting stock for $150,000. During 2010, Wiley recorded income of $102,000 and paid total dividends of $27,000. Pfizer uses the equity method to account for this investment. What is Pfizer’s income from the Wiley investment?      $27,000      $28,380       $22,440      $33,000   52.On January 2, 2010, Pfizer Co. purchased 22% […]

    81. The following data relates to Lead Company’s estimated amounts for next year.  Estimated: Department 1 Department 2 Manufacturing overhead costs $1,200,000 $3,400,000 Direct labor hours 560,000 DLH 780,000 DLH Machine hours 91,000 MH 23,000 MH What is the company’s plantwide overhead rate if direct labor hours are the allocation base?(Round to two decimal places)A.  $3.43 per direct labor hour.B.  $2.14 per direct […]

    31. During Year 3, Carrington Company made the following expenditures relating to plant machinery and equipment:   · Continuing, frequent, and low cost repairs $46,000 · Special long-term protection devices were attached to ten machines 11,000 · A broken gear on a machine was replaced 5,000       How much should be charged to repairs and maintenance in Year 3?  A. $46,000 B. $51,000 C. $57,000 […]

    111. King Products CorporationKing Products CorporationStatement of Financial Position(in thousands)            Cash $     60 $  50 Marketable securities (at market) 40 30 Accounts receivable (net) 90 60 Inventories (at lower of cost or market) 120 100 Prepaid items     Total current assets     Long-term investments (at cost) 50 40 Land (at cost) 150 150 Building (net) 160 180 Equipment (net) […]

    41. Which organization is most specifically involved in the enforcement of equal employment laws?  A. EEOC B. DOL C. OSHA D. DOD An independent federal agency, the EEOC is responsible for enforcing most of the EEO laws, such as Title VII, the Equal Pay Act, and the Americans with Disabilities Act.     42. An individual who feels that he/she has been discriminated against is required to file a […]

    31. Strategy formulation involves all but one of the following. Name the exception.  A. Defining the firm’s mission and goals B. Assessing the firm’s external opportunities and threats C. Defining the firm’s organizational structure D. Generating various strategic alternatives The task of defining the firm’s organizational structure is an aspect of strategy implementation process.     32. The process that involves allocating resources, developing structures, hiring skilled employees, and […]

  151. The balance in Premium on Bonds Payable A. should be reported on the balance sheet as a deduction from the related bonds payableB. should be allocated to the remaining periods for the life of the bonds by the straight-line method, if the results obtained by that method materially differ from the results that would be obtained by the interest methodC. would be added to the related bonds payable […]

    112. The proper journal entry to record the purchase of $25,000 of raw materials on account would be:  A. Jan 2    Raw Material Inventory                       25,000                     Accounts Receivable                                  25,000 B. Jan 2    Raw Material Inventory                       25,000                     Accounts Payable                                       25,000 C. Jan 2    Inventory                                             25,000                     Accounts Receivable                                  25,000 D. Jan 2    Inventory                                             25,000                     Cash                                                          25,000   113. Select the proper journal entry to record the movement of […]

  188. The balances for the accounts of Lance’s Consulting Firm, Inc. for the year ended December 31 are shown below. Each account shown had a normal balance.     Accounts payable$ 6,400Wages expense$35,000 Accounts receivable   7,000Rent expense    5,000 Cash 10,000Retained earnings  68,700 Office supplies   1,000Land  53,000 Building 99,000Unearned revenue    7,000 Supplies expense 15,000Dividends  20,000 Consulting revenue           150,000Common stock                         12,900   Calculate net income.     […]

  11) Which of the following is NOT a part of financing activities? A) Paying dividends B) Issuing stock C) Paying off loans D) Buying land 12) Operating cash flows affect: A) current assets and current liabilities. B) long-term asset accounts. C) equity accounts. D) long-term liability accounts. 13) Investing cash flows affect: A) current assets and current liabilities. B) long-term asset accounts. C) equity […]